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SMEs - a challenge for African countries
| Guest post by: Dr. Rob Smorfitt |
Article Overview: Why SME's are a challenge for African countries
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Free Download - SMEs – SMEs struggling in South Africa. Why? By Dr. Rob Smorfitt |
SMEs - a challenge for African countries
With African cultures generally being based upon collectivism, entrepreneurial spirit is not regularly observed.
Many African governments however now see the need for entrepreneurial development, which would necessitate some form of entrepreneurial awareness campaign. This is one of those times when it will require people from within these cultures to liaise closely with consumer and industrial psychologists and advertising specialists in order to create a campaign that is meaningful to the intended recipients.
It is going to take a long time to shift mindsets in these communities, which makes it ever more urgent that something is done soon.
This would present an excellent opportunity to African universities to find a homegrown solution to a homegrown problem.
Who will kick this ball into action?
Rob Smorfitt
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Article Tags: Africa, culture, entrepreneur, entrepreneurship, SME, Smorfitt
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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  
 SMEs SME finance and capital formation SMEs interventions in developing countries SMEs the impact of regulation SMEs why governments contribute to SME failure in Africa SMEs entrepreneurs decoded |
Related Forum Posts
Re: How will an african make money truely on the net?
- [quote="OmnivoreInk":1gmz8h93]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:1gmz8h93]
You can actually get an offshore account but you have to provide many documents except if you will open a brokerage account which operate like checking account.
Omnivorelnk, i believe one of these days a company will spring up to meet this challenge and make internet a worthwhile for africans and other under priviledge.
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: 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="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?
- Hi
From what I understood, if you are verified with Paypal, you can receive payments
into your Paypal account and withdraw money in this country if you get their debit
card. I will make further enquiries as there must be a way, there are many South Africans
doing business on the internet. I know that other African countries such as Nigeria are
unable to use Paypal etc. but don't think it applies to us here.
MichelleJ
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