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SMEs - South African SMEs and development capital
Written by: Dr. Rob SmorfittArticle Overview: Certain entrepreneurs battle to get finance in South Africa
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Free Download - SMEs – SMEs struggling in South Africa. Why? By Dr. Rob Smorfitt |
SMEs - South African SMEs and development capital
Black people in South Africa were severely disadvantaged in South Africa as a result of Apartheid. As a consequence they are given preference in many areas, as they should be.
However, economically speaking, entrepreneurs are found everywhere, and they should all be encouraged and assisted to succeed, because it is the successful ones that continue to grow, who will generate the jobs necessary to reduce unemployment. Unemployment has impacted most on the black people of South Africa, and these jobs would be of importance to them.
Survivalist entrepreneurs are often not entrepreneurs but rather economic refugees who have no choice as they are often unemployable in the formal sector for educational and literacy reasons. There are also many of these people, who are a direct product of the Apartheid government. However, the government needs to look beyond this problem.
There are many entrepreneurs in this country who are not survivalists, but rather have a genuine entrepreneurial bent, who are currently excluded from the government interventions. We are missing a massive opportunity to create jobs for those who are unable to find employment.
Rob Smorfitt
SMEs - my PhD topic and African context
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SMEs – SMEs struggling in South Africa. Why?
Article Tags: entrepreneur, entrepreneurship, job creation, SME, SME development, SME growth, SME startup, SMME, Smorfitt, South Africa
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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
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.
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: Newbie from Africa
- [quote="MichelleJ":1mn7d7fx]Hello Biiyke
Welcome to the forum. Which part of Africa are you from it is quite a big continent? I live in South Africa.
MichelleJ[/quote:1mn7d7fx]Hello MichelleJ,Nice to hear from you.I live in Nigeria.I am also trying to reach the South African market because I know You guys have a lot of unique stuff to show the world!
Re: Hello from South Africa
- Thanks Topeyinka
Nice to see yet another South African here!
Cheers for now
Cyn
[quote="topeyinka":3dokkoo1][quote="CynthiaMinnaar":3dokkoo1]Hi Everyone
My name is Cynthia Minnaar and I run my own online business full-time from my home in Pietermaritzburg, South Africa.
Although I have been submitting articles to Evan Carmichael for quite a while now, it has taken me far too long to finally join the forum! However, I am pleased to finally be here and look forward to learning and contributing.
Great to see familiar faces in the Moderator panel - Hi Carol, David & GT.
Cheers for now
Cyn[/quote:3dokkoo1]
Hi Cyn,
You welcome to the forum. You will always find this forum educative and interactive.
I am also in South Africa, I stay in Pretoria.
You are in the right forum for a new life lift.
Cheers![/quote:3dokkoo1]
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