Lack of a reliable record keeping system is among the top reasons small businesses fail to access funding from banks, potential investors, and grow their businesses.
Citizen Entrepreneurial Development Agency business advisory manager, Petrus Sebina, made this observation on Monday in Palapye during the official launch of the Pastel Accounting System. He said the system would address challenges faced by small to medium enterprises in the country. The project is a collaboration between CEDA and the Centre for Development of Enterprises (CDE) to strengthen and build capacity of SMEs in order to improve the quality of small business owners’ financial records and enhance their competitiveness and commercial viability. Sebina, said the objective is in line with CEDA’s mandate to develop and nurture the development of viable small and medium enterprises through training and mentoring.
“The initial phase of this project was co-funded by CDE to the tune of P550 038, 00 and CEDA contributed P340 000, 00, bringing the total cost to P890 380, 00. Eighty SMEs from Palapye, Francistown and Gaborone will receive Pastel Accounting training, installation and support,” he said. He also said CEDA had identified that several challenges surface which make the operation of businesses not to be properly managed due to the absence of reliable records. “This Pastel roll out has been conceived at the backdrop of inadequate or lack of record keeping amongst majority of SMEs and the need to standardise record keeping system among CEDA funded small and medium businesses.
This poor record keeping has had a lot of dampening effects on the running of businesses included but not limited to poor decision making, poor cash flow management, failure to identify important business trends and the collapse of many enterprises,” he explained.