Microfinance training shows why small businesses fail

THE collapse of some small businesses has been attributed to the low rate of financial illiteracy among the operators.
This was revealed during a weeklong Microfinance expansion project training for seven people in Goroka last week.
Participant Jeff Ganama said some businesses never lived long enough to reap dividends because of the lack of basic financial knowledge and skills.
“We have a great need for financial training on how we could run businesses. The lack of technical skills and knowledge has been the main cause of businesses breaking down,” he said.
He thanked Bank of PNG Trainer of Trainers head trainer Sebastian Mugup and Microfinance expansion programme project manager Jacob Gop for the one-week course  in basic business practices and management.
Susie Dable, one of the two women who attended, said people lacking proper financial knowledge started businesses but could not sustain them.
Dable thanked BPNG’s programme for giving them the chance to gain some knowledge on financial matters to run businesses.
Mugup said the seven would return to their respective areas to train others on financial management.