EVERY entrepreneur believes their business deserves funding.
Investors begin with a different question: Why should I risk my money on this business instead of another?
That question sits at the heart of the Zimbabwe Entrepreneurship Exchange (ZEEX), a platform designed not merely to connect entrepreneurs with capital, but to prepare businesses to become investment-ready.
Unlike banks, which focus mainly on collateral and repayment capacity, investors back businesses they believe can create long-term values. They examine management, governance, financial discipline, growth prospects, and whether the entrepreneur can execute the vision being presented.
Zimbabwe Stock Exchange Holdings chief executive officer Justin Bgoni says one of the biggest misconceptions among entrepreneurs is that they need to convince the exchange.
In reality, they need to convince investors.
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"You don't have to convince us as the exchange. You have to convince people. There are people out there who will be willing to listen to you who have money," Bgoni said.
"You convince them, and I think most entrepreneurs — all they're looking for in life is a chance to show the good work that they're doing. I think that's the difference."
So, what makes investors walk away?
You don't know your numbers
Investors expect entrepreneurs to know their businesses inside out.
How much revenue do you generate? Are sales growing? What is your profit margin? How much capital do you need, and why?
If management cannot answer these questions with confidence, investors begin questioning whether the business is being properly managed.
ZEEX addresses this by requiring entrepreneurs to work with accredited sponsors who help prepare businesses before they are presented to investors.
Your story is not convincing
Capital follows compelling opportunities.
Every investor wants to understand why a business exists, what problem it solves, and why customers will continue buying its products or services.
A good business idea backed by a compelling growth story is often more attractive than an asset-rich company with limited prospects.
As Bgoni puts it: "The better your idea, the more interest you have out there."
So, ask yourself: how good is your idea against others?
You think collateral is everything
Many entrepreneurs never approach investors because they assume they have nothing valuable to offer without title deeds or expensive machinery.
Capital markets work differently. Investors buy into businesses because they believe in their future earning potential, not simply because they own valuable assets.
For example, Econet InfraCo (InfraCo) became the country's largest initial public offering at US$1 billion after it debuted on the Victoria Falls Stock Exchange (VFEX) on March 31, 2026, following the restructuring that saw its parent company, Econet Wireless Zimbabwe, delist from the Zimbabwe Stock Exchange on the same day.
InfraCo's valuation was not determined by the amount of cash sitting in its bank account or the buildings it owned. Rather, investors valued the company based on the long-term earnings potential of its telecommunications infrastructure assets, including fibre networks, towers, and data centres, which are expected to generate predictable future cash flows.
The example illustrates a fundamental principle of capital markets: investors buy into a company's future ability to create value, not simply the collateral it holds today.
ZEEX therefore allows entrepreneurs to present businesses based on their growth prospects rather than relying solely on collateral.
You are asking for money, not presenting an investment
There is an important difference.
Entrepreneurs ask for funding. Investors look for opportunities.
Instead of saying, "I need US$200 000," entrepreneurs should explain what that money will achieve. Will it double production? Open a second factory? Expand exports?
Investors are buying the future, not solving today's cash shortage.
Your business depends entirely on you
A business that cannot function without its founder represents a significant risk.
Investors want to know whether systems, management structures, and decision-making processes exist beyond one individual.
Businesses with capable management teams are generally viewed as more resilient and therefore more investable.
You must be able to delegate responsibility.
Your records are weak
Poor bookkeeping creates uncertainty.
If financial statements are incomplete, taxes are unclear, or business and personal expenses are mixed, investors struggle to determine the true performance of the company.
Strong financial records reduce uncertainty, and uncertainty is what investors dislike most.
You ignore governance
Many SMEs assume corporate governance only matters once a company lists on a stock exchange.
In reality, investors often evaluate governance long before investing.
Clear decision-making, accountability, and transparency give investors confidence that their money will be managed responsibly.
One reason ZEEX requires entrepreneurs to work with sponsors is to help businesses improve these standards before approaching investors.
You have no growth strategy
Investors are interested in where a business is going, not only where it is today.
A company that cannot explain how it plans to grow over the next three to five years will struggle to attract long-term capital.
Growth plans should explain how additional funding will translate into higher sales, stronger profits, and greater business value.
So ask yourself: where do you see your business — not you — in the next three to five years? If you cannot see it, how will the investor?
You expect investors to find you
Investment is rarely accidental.
Entrepreneurs must actively prepare, refine, and present their businesses to the market. Raising capital is as much about communicating a compelling investment opportunity as it is about running a successful business.
Bgoni believes this learning process will benefit both entrepreneurs and investors as the market develops.
"Companies will be learning how to pitch, then the investors will be learning what to look for."
Putting yourself out there, however, requires preparation.
Banks and microfinance institutions have already made their requirements clear: they typically want collateral, charge interest, and assess your ability to repay a loan.
ZEEX asks a different question: Can you convince investors that your business is worth backing?
A well-structured business, sound financial records, a capable management team, a clear growth strategy, and the ability to generate future earnings can often matter more than the value of the assets you own.
Your job is not to wait for investors to discover your business. It is to prepare an investment proposition that makes them want to be part of its growth journey.
Or, as Bgoni put it, "Almost all entrepreneurs are looking for in life is a chance to show the good work that they're doing."
ZEEX provides that opportunity, but it is up to the entrepreneur to seize it.
You think your business is too small
Perhaps the biggest misconception of all is that institutional investors only back large companies.
In reality, every successful listed business started somewhere.
Investors are not necessarily looking for the biggest businesses. They are looking for the next success story.
As Bgoni noted: "All the big companies that we have now were once small companies, and everyone wants to be involved with them at the early stage."
Padenga Holdings offers a powerful example. The company was valued at about US$110 million in April 2025 and has since grown to more than US$1 billion in market value, demonstrating how investors reward businesses with strong growth potential. That is ultimately the opportunity ZEEX presents.
The platform cannot guarantee funding. What it can do is provide entrepreneurs with a regulated marketplace, professional support, and direct access to investors searching for high-growth businesses.
Ultimately, every entrepreneur seeking capital must answer one question: If you were the investor, would you invest your own money in this business?