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SMEs - the African opportunity that is been squandered
| Guest post by: Dr. Rob Smorfitt |
Article Overview: An overview of how Africa is squandering its two greatest assets.
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Free Download - SMEs – SMEs struggling in South Africa. Why? By Dr. Rob Smorfitt |
SMEs - the African opportunity that is been squandered
This article is not an anti-Chinese story, but rather a story of where the future or Africa could lie with a change of government strategies.
Africa is rich in two major assets. The first is the abundant minerals. The second is the natural diversity of wildlife.
The African mentality currently appears to be anti-Western and pro-Chinese. The Chinese are treated as saviours and yet they are no different to the colonial powers of earler days. They are simply here to take what they can. The one advantage about dealing with China is that they are not too worried about simple issues such as human rights and personal freedom. They have an incredible ability to always be looking the "right way" when these bad things go down. Never do they criticise. They simply pay and take.
This suits the African governments they deal with, as many are not able to withstand public scrutiny. The latest story with South Africa denying access to a religious leader in the form of the Dalai Lama is typical of the power China wields in Africa.
However, Africa will still learn that it does not matter who takes your minerals, they are still taking them and ensuring that manufacturing never gets off the ground in Africa. No beneficiation. The author of "Capitalist Nigger", a black African himself, commented on this very issue. The situation does not improve, it simply gets worse. Once again Africa works to its own disadvantage as a continent, while corrupt leadership continue to sell their birthrights for a few pieces of silver.
The continent of Africa suffers from immense poverty, which in many ways contributes to many acts of civil disobedience. This results in the wildlife being plundered for overseas trade in our animals and birds. Rhino are butchered as a source of supposed aphrodisiac qualities for the Far Eastern markets. Animals and birds are butchered for bush meat because poverty provides no other solution for many.
There are millions of tourists who would pay billions of US dollars to visit and see this wildlife. However, mnay of these countries are not safe to visit because the tinpot dictators who run them can barely safeguard themselves because of their mismanagement of their countries.
If they started negotiating for their countries and not their own pockets, there would be no need to butcher the wildlife. There would be no need to sell it overseas to make a few cents. They could attract such large volumes of tourism that poverty would not be an issue. If they kicked the Chinese to touch and started real beneficiation, they could create large numbers of jobs, which would further produce benefits for these countries.
Africa must wake up before the land is empty of minerals and wildlife, and there is then nothing left to sell!
Dr Rob Smorfitt
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Article Tags: Africa, assets, beneficiation, misgovernment, SME
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About the Author: Dr. Rob Smorfitt RSS for Dr. Rob's articles - Visit Dr. Rob's website Have an MBA and a PhD in entrepreneurship. Three key areas of ongoing research are entrepreneurship and innovation in large business strategy, the impact of legislation on SME development and SME finance. Run my own SME blog at http://sme-smb-smme.blogspot.com as well as an entrepreneurship and innovation for large businesses blog at http://innoveur.blogspot.com I have been self-employed since 1982. I have started or purchased in excess of 50 businesses since then. Most were sold again and a few were shut down because of a lack of profitability. Many were run by staff or family while I worked full time in my bigger businesses. Author of 6 books. Written articles for various magazines, newspapers and websites. Experienced in research within developing countries.
Click here to visit Dr. Rob's website  
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Related Forum Posts
Re: In-House or Outsource?
- Unfortunately, in the South African context, very few SMEs see outsourcing as an option. They believe it is too expensive, and they are paranoid that someone will "steal their ideas".
I believe that the three main functions that cannot be outsourced are marketing, sales and strategy. These must be done in house I believe. If you do not have the marketing skills then get them. Hire a consultant or attend a course, but get the skills. Even if you use a consultant, you need to understand what marketing is about, as no one knows your market like you do. Marketing is made to seem difficult and complex, but everyone who really understands their markets, can easily learn to do their own marketing.
In South Africa, labour legislation is extremely inflexibile, and consequently labour broking is a large industry. This is an ideal starting point for SMEs in South Africa, as it is a legally complex area, whih comes with severe penalties.
I say do it!
Rob Smorfitt
What do you do to give back?
- I'm launching new section of the site for social entrepreneurship and our first category is going to be called African Accounts. The goal with the project is to raise awareness of African entrepreneurs and showcase that entrepreneurship can be the path to achieving sustainable development. This has always been a passion of mine and I have done a number of talks around the world on this subject so I'm excited to bring it online as well.
We have recruited some of the top bloggers in the world who focus on African entrepreneurship and are preparing additional resources.
I believe that a big part of running a business is being socially responsible and giving back - even if it's donating your time to an organization or small amounts of money or products. You don't have to be mega-successful to make a difference.
What are some of the things you are doing to give back to the community around you?
Re: How will an african make money truely on the net?
- Is it possible for an African business to set up an "offshore" account in the US or England... or even Switzerland... where all monies are paid? And a trusted agent there, who gets a percentage of any money, can then take that money from paypal and wire it or mail it or whatever to an African bank?
There are lots of countries in Africa, is this a problem in all of them? Seems like an internet entrepreneur who can set up a "Paypal" like company of their own might be able to make money on this... ? Course you'd need governmental contacts...
Re: How will an african make money truely on the net?
- [quote="OmnivoreInk":koqfopnc]Is it possible for an African business to set up an "offshore" account in the US or England... or even Switzerland... where all monies are paid? And a trusted agent there, who gets a percentage of any money, can then take that money from paypal and wire it or mail it or whatever to an African bank?
There are lots of countries in Africa, is this a problem in all of them? Seems like an internet entrepreneur who can set up a "Paypal" like company of their own might be able to make money on this... ? Course you'd need governmental contacts...[/quote:koqfopnc]
Hi Topeyinka
I don't know what products you sell, but if they are digital how about selling
them through Clickbank. They will handle the sale for you and will send you
cheques on the money you have earned.
MichelleJ
Re: How will an african make money truely on the net?
- [quote="MichelleJ":2a9hm5bq]Hi Topeyinka
I am just wondering, with Paypal as long as they can get your credit card verification
I don't think that they worry if you are an African or not. I also live in South Africa and
there was no problem getting verified with them once they had checked my credit card
details that proved the card belonged to me.
Michellej[/quote:2a9hm5bq]
Hi Michelle,
You can use paypal to send money and buy as a South African, but you are limited to receive payment. So what is the use of spending money without making it. You cannot accept payment with your paypal.
Any way South Africans can make use of 2CO to recieve payment on theie websites.
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