Tweet

SMEs - Are African SMEs serious about business

Written by: Dr. Rob Smorfitt

Article Overview: Overseas businesses often question me as to the ability of South African SME's to deliver

SMEs - Are African SMEs serious about business

I was recently involved with a business in the UK who was looking for a South African furniture manufacturer making wooden furniture. I said there were many in my area, and that I would source a supplier for him. However, he wanted me to specifically find someone who was serious about exporting because there was no room for non-delivery. I thought this an odd comment, as I assumed that anyone who was making the stuff would want to consider this option in order to sit on both sides of the foreign exchange fence, and I said so. He argued and said NO. He said they say they are interested but never deliver.

The very next day I found a supplier with a few phone calls. There have been some ongoing discussions resolving questions from the UK. So far so good.

However, the importer now wants to discuss getting product for an exhibition in the UK. I call the manufacturer on his mobile, no answer. Two days later still no return call. Call again. Advise UK wanting to proceed. Says he is away for nearly a week. Will call me on his return. Two days after the return date still no call. Is he serious? Is he going to deliver? Is he missing an opportunity to move his product into some of the UK's largest retail brand name stores?

No. No. Yes.

I can see the importer's point now! How many more are there like this, missing fantastic opportunities through a lack of something. It is particularly sad to see this happen, because I really love to see SME's succeed. However, SME's must also take business seriously and deliver, there is no room for poorly run businesses in any economy. SME's should not ask for special treatment. Nor should they be given it.

Rob Smorfitt

Related Articles
  Restricted Access to Finance
  Facts about SMEs in Africa
  SMEs - my PhD topic and African context
  Leverage Subject Matter Experts
  SMEs - surviving the recession in Africa

Article Tags: Africa, entrepreneur, exporting, manufacturing, nonperformance, poor service, service, SME, SMME, Smorfitt



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: Women and Financing - It's Difficult! - I found this paragraph of interest (in the article from Nana's link: [quote="Nana":3r7womqv]Other studies show that women operate more service and retail establishments than men, which might explain their difficulty in getting financing since financial institutions often consider these two sectors more risky. However, although women are generally less inclined than men to apply for financing, when they do, they are more likely to get it. According to a study by Industry Canada on SME financing in Canada, in 2000 majority female-owned SMEs obtained a loan approval rate of 82%, which is slightly higher than the approval rate for majority male-owned businesses (80%). This suggests that when they do apply for financing, businesswomen submit excellent applications. [/quote:3r7womqv] They say, "Women are more likely to get [financing]." But the difference is only 2 percentage points! Big deal! And, that was only for one year, 2000. I'd like to know what the 10-year average is. Numbers can be manipulated to mean anything you want them to mean...it all depends on what you want to show.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Adjusting Your World

Convening a focus group for a niche product

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.