Should You Buy Shares or Start a Business? Or Both?

Good morning 😃☀️🌞. Hope you enjoyed your holiday, but now let’s get into it

The Dilemma Every Young Motswana Faces

You’re sitting on P2,000. Not enough to change your life — but enough to plant a seed. The question is:

Do you invest it in shares?

Are you starting a small business?

Or is there a smarter way — like doing both?

Let’s break this down.

Option 1: Buying Shares

Pros:

• Low barrier to entry – You can start investing in the Botswana Stock Exchange with as little as P100.

• Passive income – Companies like Sechaba, FNBB, and BIHL pay out dividends.

• Compounding effect – The longer you hold, the more potential your wealth grows.

• No daily hustle – Your money works in the background while you focus on your job or studies.

Cons:

• Slow results – You won’t “get rich quick.” Gains take time.

• Market risk – Prices can drop; not every stock will be a winner.

• Requires knowledge – Without research, you could pick the wrong company.

Option 2: Starting a Business

Pros:

• Higher income potential – Businesses scale faster than passive investing.

• You control the outcome – Your effort, creativity, and hustle matter.

• Solves real problems – You can build a brand, create jobs, and generate cash.

Cons:

• Higher risk – Most businesses fail in the first 2 years.

• Time-consuming – You’re on call 24/7, especially in the early stages.

• Capital-intensive – Inventory, licenses, marketing — all cost money.

Option 3: Do Both — With Strategy

Here’s the smart hybrid approach:

Use shares to build capital quietly. Then use the gains or dividends to fund your business.

Example Path:

1. You invest P500 every month into BIHL shares.

2. After 2 years, your portfolio + dividends grows to P15,000.

3. You use that money to start a chicken poultry side hustle or fund a design studio.

4. Your business generates cash flow. You reinvest some profits into shares again.

5. You’ve now built a loop: Shares → Business → Shares.

This combo turns short-term hustle into long-term wealth.

Notes

“Shares are for building wealth quietly. Businesses are for building wealth actively. But combining both is how you build wealth sustainably.”

Don’t fall for the trap of thinking it’s either/or. It’s the sequence and strategy that matter.

Session Summary