High lending rates charged by most financial institutions have been described as the major factor that blocks majority of Tanzanians from the opportunity to start or expand their businesses.

This was said in Dar es Salaam over the weekend by the Director of Compass Communication Limited, Ms Maria Sarungi, at a public talk on entrepreneurship themed 'The Business of Beauty' hosted by East African Speakers Bureau (EASB).

The Tanzania Standard Newspapers (TSN) Ltd, publishers of the 'Daily News' and 'Habari Leo' was one of the main sponsors of the event. "There is a growing ambition for the youths, particularly graduates seeking self employment but strict conditions coupled high interest rates by lending institutions have always become a stumbling block to realize the dream," she said.

The unfriendly business environment, she added, compel graduates from higher learning institutions and colleges to scramble for few employment opportunities offered in both the public and private sectors instead of self employment. Ms Sarungi, also the coordinator of the Miss Universe Tanzania, also took swipe at companies which fail to release on time funds meant for sponsorships.

"Sponsors' delay in releasing the promised funds is one of the parameters facing the beauty business, which at times plunges them into conflicts with suppliers", she said. She cited negative attitude by a section of the society on the beauty business, saying such negative trend impedes growth and contributions to the economy as well as on poverty alleviation.

"Girls participating in beauty contests are sometimes branded as prostitutes, which is unfair and untrue. Most of the girls are already employed and are financially independent," she insisted. Featuring at the event, the fashion guru, Mr Mustafa Hassanali, said despite being one of the fastest developing markets, Africa share in the world beauty sector is still minimal with only 0.03 per cent contribution.

Apart from the wrong attitudes on the beauty businesses by a few individuals in the society, Mr Hassanali noted that the sector could contribute greatly in employment creation, poverty alleviation and the whole economy only if the government intervenes by creating friendly environment.

Mr Hassanali challenged youth to become aggressive with creative ideas to enable them seize various business opportunities instead of complaining for lack of resources. He said for example, fashion industry remains untapped but could offer massive investment opportunities.

"Youth need to build up passion for grabbing and undertaking various business opportunities instead of waiting for the government do for them," he added. The EASB Entrepreneurship Lecture Series is designed to provide aspiring entrepreneurs the opportunity to learn from experienced and successful Tanzania business people and service providers about the challenges of procedures of starting and operating a business.

Tanzania Daily News/26/09/2011