Published on July 8th, 2015 | by lawilink



Business is a process whereby profit and loss are expected to be made. In Malawi a lot of people are not making profits the way they expected. The profit and loss graphs are up and down. But the question is; why are many businesses making losses?School Blantyre Malawi_14

Here are some negative factors contributing to business losses in Malawi.

Business Knowledge

Business knowledge in every kind of business. Most investors are just doing their business without the full knowledge of such businesses. For example, Someone venturing into an engineering business without having knowledge about engineering, how is he or she going to run that business? So investors  should have a full knowledge of such business before venturing into it. This can help to improve business as well as prevent liquidation.

Bank loans

A lot of people are lacking capital to finance their businesses because they are lacking loans from banks and other financial institutions. Most upcoming businesses have no access to loans because we lack organizations that can reach the poor since banks offer loans to those that have the guarantee to pay back. Therefore there are a few organizations that offer simple loans to businesses with low income.


Frankly speaking, the economy of Malawi and many countries are not stable. If the economy of a country is not well settled, businesses find it difficult to survive. We lack foreign exchange that helps most businesses use when importing  resources. In Malawi a lot of good companies we used to know that were doing good are ending up being closed because of our economy.


Technology is also hindering some businesses to succeed. Mostly this is happening to those businesses that are still sticking to old methods instead of using modern ways of technology. For example, If a company does not have computers and internet in their offices, how can they receive or send emails? This makes it difficult for a company to succeed because most businesses are happening on the internet like advertising etc.

How To Improve Business In Malawi

If a lot of businesses are given more access to different loans, definitely they will improve their profits and run away from liquidation. And government as well will still be enjoying huge percentages of taxes to be collected from businesses that are enjoying loans from financial institutions.

Business investors should make sure that before venturing into any business, they should take time to find out more about that business and have a full picture of the business they want to pursue. This prevents business going into liquidation.

Business people should also learn to adopt changes in any environment that are passing by. If the world is going more on technology they should adopt quickly for them to be on the same track with their business partners who are in the same environment.

By Chimwemwe Stephano


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