89% of Small and Medium Enterprises in the country are operating informally with no licenses.
2019 Finscope survey report which government conducted together with its stakeholders has revealed this.
The report has indicated that this is because people shun from paying registration costs and they lack knowledge on the importance of registering businesses.
Read part of the report: “Some of the reasons for not registering businesses include the small size of their business which account for 47%, the lack of information on registration and the costs associated with registration process.”
Speaking to YFM, Chairperson for the National Association of Small and Medium Enterprise – NASME, William Mwale admitted the existing knowledge gap among most business players on the issue of business registration.
“We are well aware of the knowledge gap and the report is really a true reflection of what is on the ground,” he said.
Mwale however, said they intend to intensify efforts of sensitizing business persons on the same.