Small and Medium Enterprises (SMEs) are expected to be the backbone of Lesotho’s economy, yet many face challenges that hinder their growth and sustainability. Business owners are calling for more accommodating policies to help them play a crucial role in job creation and economic diversification.
While SMEs contribute significantly to employment, particularly for young people and women, several obstacles limit their success. One of the major challenges is limited access to finance, as many small businesses struggle to secure funding due to strict loan requirements from banks. Without adequate financial support, entrepreneurs find it difficult to expand or sustain their operations.
Poultry farmers are among those hardest hit by high business costs. They cite expensive utilities, rental fees, and heavy taxation as some of the factors making it difficult for SMEs to remain profitable. The high cost of doing business discourages many potential entrepreneurs from entering the market and threatens the survival of existing businesses.
Ms. Mosa Lekoro, a poultry farmer, highlighted the regulatory burdens that come with lengthy business registration processes and complex compliance requirements. She pointed out that these bureaucratic hurdles discourage entrepreneurship and slow down business development. Furthermore, market access remains a pressing issue, as many SMEs struggle to expand beyond local markets due to stiff competition from larger companies and imported goods.
Given these challenges, business owners are urging the government to introduce policies that support SMEs by easing access to financing, reducing taxation, and streamlining regulatory processes. Strengthening SMEs will not only foster entrepreneurship but also enhance economic resilience and create sustainable employment opportunities for many Basotho.
