Article VNc#1726: From Market Access to Market Readiness
By Victor PM Nyasulu
Last week, we argued that the future of Zambia’s indigenous Micro, Small and Medium
Enterprises (i-MSMEs) depends more on markets than on mercy. We concluded that
sustainable businesses require customers, not merely capital injections, grants or sympathy.
Yet securing access to markets is only half the equation. The other half is market readiness.
Of course, it is true that many indigenous enterprises struggle to find customers, it is equally
true that many potential customers struggle to find indigenous enterprises capable of
consistently meeting their requirements! This uncomfortable reality deserves honest
discussion.
Large corporations, government institutions, mines and international investors typically
require suppliers who can consistently deliver quality products, meet deadlines, maintain
proper records, comply with tax obligations and demonstrate sound governance practices.
Unfortunately, many promising i-MSMEs remain trapped in informality. Some do not
maintain proper financial records. Others lack documented systems and procedures. Many
cannot easily demonstrate their capacity to fulfil large orders or contracts. Some are unable to
separate personal finances from business finances.
Consequently, opportunities often bypass them. This is not be i-MSMEs criticism for its own
sake. Rather, it should be viewed as a challenge and an opportunity.
The next phase of Zambia’s indigenous economic empowerment agenda must focus on
transforming i-MSMEs from merely being market seekers into becoming market-ready
enterprises. Market readiness begins with mindset. Every entrepreneur must understand that a
business is more than a source of income. It is an institution.
Institutions require Systems, Records, Governance and Accountability. In addition if the said
business institution goes public Transparency is a must too!
The small enterprise operating from a market stall today may become tomorrow’s
manufacturing company. The youth-led technology start-up may become tomorrow’s regional software provider. The family-owned logistics business may evolve into a national transport
company. However, such transitions rarely occur accidentally. There are a couple of examples
the likes of Trade Kings who have made the giant leap into Zambia’s Foreign Direct Investor!
It must be noted though that Trade Kings promoters were Zambians of Asian origin!
My ultimate goal in these articles is to assist with contributing in a very small to getting
indigenous MSMEs doing the Trade King thing more and more!
To get i-MSMEs requires a handholding of sorts and deliberate preparation. This is where accounting, bookkeeping and financial discipline become strategic tools rather than mere compliance exercises. A business that keeps accurate records understands its costs. A business that understands its costs can price correctly.
A business that prices correctly can generate sustainable profits.
A business that generates sustainable profits can attract investment and expand. The journey
from informality to scale often begins with something as simple as maintaining proper books
of account. Similarly, compliance should not be viewed solely as a regulatory burden. Tax registration, statutory compliance and corporate governance practices may appear
inconvenient in the short term, but they often serve as passports to larger opportunities.
The reality is that investors prefer Transparency. Banks prefer Records. Customers prefer Reliability. Markets prefer Professionalism!
As Zambia seeks to increase indigenous participation in strategic sectors such as mining,
agriculture, manufacturing, logistics and technology, our i-MSMEs must rise to meet the
standards demanded by those sectors. The objective is not merely to participate.
The objective is to compete. And to compete effectively, indigenous enterprises must embrace
excellence as a habit rather than an aspiration.
The future belongs not only to those who gain access to markets, but also to those who
prepare themselves to serve those markets exceptionally well. Market access opens the door. Market readiness determines who remains in the room.
That is the next frontier for Zambia’s i-MSMEs.
Naluta mafumu, Chiuta wamutumbikani! _______________________________________________________________
The Author can be reached on +260 955 746 997 or via email at vpmn69@gmail.com
