Many of you think you need to create a business, scale it, and sell it. Then you’re rich and live a nice life. But, there are a number of fallacies with that thinking.
In Africa, we need more people to start businesses that solve local problems and run for a long time. We don’t need to be selling, nationalizing, and finding technologies to then promptly can (put an end to). Rather, we should promote small business growth with a remodel of tax codes and local laws. As well as a mindset shift toward the value of creating a business, running it well, employing people and offering a great service.
Startups, scaling, and venture capital (which is near to nonexistent in Zimbabwe) are all good when the ecosystem exists, but when it doesn’t, small business growth and designing your life around a great small business is a worthwhile cause and should be applauded, promoted and incentivized.
Here are a few ideas:
- Local laws that give tax free benefits to new small businesses for the first 5 years of their existence, or else until they hit $250k in revenue.
- Duty free imports/exports for new businesses until they’re sustainable.
- Better hiring and firing laws—if someone sucks at their job, we should be able to fire them, no questions asked. You’re not entitled to a job if you don’t perform.
- Clear investment incentives for local and foreign investors.
- Low capital gains for investors—incentivize them to reinvest in the nation and the community.
- Seek grants (with no strings attached) for government to match entrepreneurs efforts.
Starting a business and running it for a long time is something we should promote more.
(photo via world bank)
Posted on January 6, 2017
by Tim & Tommy filed under