The small to medium enterprises sector has a significant role to play in the economic development in Malawi. Lilongwe, in particular, is where majority

Small to medium enterprises are the backbone of the economy in Malawi. They comprise of over 1.6 million entities, of which 74 percent are micro enterprises and 84: percent are women owned businesses in the informal sector.of do their businesses and other people depend on government grants for survival. The big played by the SMEs has encouraged the government to support people -based businesses and upcoming entrepreneurs both in rural areas and cities (Nkhonde 2012)

Malawi SMEs are very important to the country because they create jobs, reduce poverty, operates largely in Agriculture, trade and also services.

The most common question asked by many people is that “What business can I start with less than a hundred thousand kwacha (Almost 50 Dollars)?

There are several businesses one can start in Malawi with very low capital. The most important thing is to be yourself and stop bothering much on what people will say.

The following are some of the simple businesses that can pay you well without involving much resources.

1-Selling Cold water & soft Drinks

Just look for places which are busy areas especially in high density areas where majority of them are not likely able to buy sealed bottled water. Make sure to maintain cleanliness on both your stuff and yourself.

Attract buyers in a calm and gentle manner. Let people know what you are selling despite that they can see what you are selling by themselves. Be friendly and confident. Do not be shy when selling. Be real and do not pretend.

There are some small plastic packs which are factory sealed which also sell

at reasonable prices. They say “Water is Life” That is why a lot of people like talking water especially when it is hot weather.

If there is no a refrigerator, some ice blocks can work especially during summer time when there is very hot weather.

2-Car Wash

Car Wash business is a great business with more chances of making huge profits. It does not involve a lot of things, but just have a few buckets, wasters, soaps, detergents, and some clean water.

Just have a place which is next to a busy Road, put a nice and attractive sign post to let motorists know what you are doing.

3-Selling of Fruits and Vegetables

Fruits and Vegetables are some essential edibles in our daily lives because it is part of what the doctors regard as healthy eating. That is why there is a saying that goes “Eating an a day will keep you away from the Doctor.

When these products are wrapped in some clean clear plastic papers, they look attractive.

Sometimes simple labeled stickers can add the value. Selling at a higher price when goods and services are attractive does not seem to bother clients. They do not care.

Always encourage and practice a clean environment where you sell the items. An accessible place is also vital so that people should be aware of what is going on at the place.

4-Mobile Phone Repair & Accessories

Nowadays, almost each and every person use a mobile phone which gives more opportunities to invest in mobile phones and accessories.

Learning to repair the mobile phones can be much rewarding because cell phones usually come across problems which is either software or hardware issue.

On daily basis some people may need pouches, screen protectors and other cell phone accessories and other related products.

5-Mobile Money Agent
This is one of the exciting and interesting simple business idea for small capital in Malawi.

In this case one can deal with several mobile money companies such as banks and mobile phone companies. Profits are like commission based because the more you transact, the more more profits you get.

Target Areas.

This business is ideal in areas near banks, trading markets, bus depots, near schools and hospitas. To start this business, it is very important to register or apply at the institutions and follow all the right channels and guidelines required inorder to be authorised or be legally accepted.

Being a mobile money agent is crucial, because it deals with money so at least the these companies want to make sure that people involved in money business are honest and trustworthy.

Key Tips to Achieve in Business

Start small and continue reinvesting. Avoid spending money on unnecessary things. Focus on business growth and be disciplined. Spend within your budget.

Learn through free and paid workshops on business and financial management. These workshops usually take place within a short period of time.

Also consider using social media tips from renowned well experienced successful business people.

Avoid being found in some useless groups with no real agenda for progress and success.

Record Keeping of Input and Output to Determine Profits.

Other Business That are Profitable in Malawi.

Keep and monitor the records in order to track profits and if there are some losses, records will help to work on improvement

Apart the five simple business Ideas for small capital in Malawi, there are also other several businesses one can do with a large profit margin only that some of them would need more time to invest such as real estate. Real Estate is a very large business category with several entities. It may involve a lot sometimes for some one to qualify as a realtor.

Real Estate Business

In real estate, one can buy land, build and put some people for rent. Someone can just act as an agent soliciting customers to buy other peoples land, buildings or just inviting people for rent. These are just dwelling houses or commercial buildings.

Local Chicken Farming (Homestead Farming)

Keeping of local chicken with keen and interest will lead to having a lot of chicken which can sell into large amounts of cash. Chicken Farming can even be done at a very limited space within a house fence. What is important is to shelter them, feed them accordingly and provide them with proper medication in times of need.

Nowadays a local chicken sells at not less than K20,000 per chicken which is about $8-$10 per chicken. Imagine having about 1000 of chicken, how much would someone get. It’s a lot of money especially for the beginners.

Selling Maize and Other Agricultural Products.

In Malawi, many believe that a house without maize, is a hungry house. This is because maize is a stapple food in Malawi and many people cannot do without maize. In this regard selling maize is a business which a peron can rest be assured that money will be made.

Selling of maize does not require to be from farming background but requires one to have the know how understanding how the market forces of demand and supply operate.

During harvesting, being clever enough, it is possible to quickly buy maize from growers, pack them nicely, treat with recommended chemicals to avoid being eaten by weeds and store them for a certain period. Doing it earlier helps to buy at cheaper prices before prices go up.

maize is on high demand which results into good profits. There are also other agricultural harvests that can be sold such as beans, Irish potatoes, sweet potatoes, onions and fresh vegetables that make a profit too.

Baking and selling of snacks.

Products such as cupcakes ( Mandazi) ,slicy potato chips (zigege) are profitable businesses of all time because a lot of children like them . There are also others from different age-group groups who like to buy zigege.

Selling of Eggs

Eggs are part of our daily diet and this makes them to be one of the most selling products in communities. Eggs make some quick profits whether they are boiled and sold or they are as raw,.

Challenges Faced By SMEs in Malawi.

Small and Medium Enterprises face significant challenges in Malawi primarily driven by limited access to finance, high interest rates, very strict and unrealistic collateral requirements, lack of business and financial knowledge, severe foreign exchange shortages ( and a volatile macroeconomic environment with high inflation, poor managerial skills, regulatory buderns, limited access to markets

International Journal of Humanities, Social Science and Management volume 3, issue 2, has also some of the information about Challenges and prospects faced by small medium enterprises (SMEs) in terms of growth and development (Case Study of Lilongwe District, Malawi)