Feedback Form
Home Features Mastermind Forums About Advertise Blog Network Contact Be An Author

SME's - an African challenge

SME's - an African challenge

African governments are all beginning to jump onto the SME bandwagon. They are all seeing it as a liferaft in a sea of poverty, which ultimately leads to unrest.

However, Africa finds itself in a situation which I think is difficult. I do not fully understand it myself, but I can see the conflict.

de Soto suggests and I concur, that land ownership is key to entrepreneurship, as it provides the owner with equity which can be leveraged into capital.

However, in many African states including South Africa, vast tracts of land (eg. 70% in Botswana) are tribal land. Title deeds cannot be gained to this land. You can get a long lease on the land but not ownership. Therefore you cannot use it as collateral. How does this problem get resolved?

South Africa has a traditional, well the ANC version of it, democracy. It also has a whole bunch of what is colloquially known as traditional leaders. Of these a number are still illiterate rural people, and yet they can control the future of the people in their areas.

How can you be entrepreneurial when you cannot own your land? When you have to pay a "tax" to the chief? When he decides how much land to give you, if he gives it to you at all? When the bank will not give any consideration to this being collateral?

I believe that this system is very similar to the old communist collective approach which we know failed. It is also why I believe communism and socialism still have such strong support in Africa today. It is a system that is known and understood, and in the context of Africa as a subsistence economy, it worked.

However, Africa is being forced away from a subsistence economy through many factors such as westernisation and globalisation. But the social systems and structures are an anachronism from the past, which are not changing. The democracies are simply trying to find ways to accommodate them, rather than change them.

Time is running out and this change has to happen sooner rather than later. There is no place for monarchies and traditional leadership in the modern world. Just like the UK and European monarchies had to change and accept their new diminshed role in society, so too do the African traditional leaders need to change and adapt before it is too late.

Rob Smorfitt





SMEs an African challenge - To learn more about this author, visit Dr. Rob Smorfitt's Website.

Like this article? Share it with your friends

Article Feedback
 Article Feedback No article feedback found.
  Leave Your Feedback
article feedback

Article Feedback

To learn more about the Evan Elite Author Program please contact us.

About The Author


Dr. Rob Smorfitt
(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 businesses, the impact of legislation on SMEs 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 40 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 in full time employment in my bigger businesses. 6 books written in Entrepreneurship and Project Management educational field. Written articles for various magazines, newspapers and websites. Married with 3 children (22, 21 and 14).

Dr. Rob Smorfitt is a Platinum author on EvanCarmichael.com
About The Author

View Author Blog
SME, SMB, SMME, all the debate and info - A resource on SME, SMB and SMME.
SME, SMB, SMME, all the debate and info
View Author Blog

View Author Video
View Author Video

Free Downloads


Dr. Rob Smorfitt's

Complete
List Of
African-Accounts
Articles

Name
Email
If you enjoyed this article, get Dr. Rob Smorfitt's Complete List of African-Accounts Articles For FREE!

More Dr. Rob Smorfitt
SMEs the impact of regulation
SMEs a challenge for African countries
SMEs the importance of communications for SMEs in Africa
SMEs the future is bright
SMEs why compliance models work in Africa
SMEs regulation in Africa
SMEs can entrepreneurialism survive in Africa
SMEs the difference between entrepreneurs and franchisees
SMEs The African error
SMEs a changing trend in SME failure
Free Downloads


 
 
 


Evan Elite Authors
Anne Barr  
John Brennan  
Joe Dager  
Evan Elite Authors

Become An Author
Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details.
Become An Author

Evan's Latest Video
Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media
Evan's Latest Video

Business Opportunities
"Learn straight from Evan how you can Make a Full Time Income (And More) from a Website"

How to Start An Online Business

Click Here To Learn More
Business Opportunities



Evan's 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:
Evan`s Newsletter

Free Downloads
Factual Icon Factual
10 Ways To Go International Icon 10 Ways To Go International
EQ SUCCESS STORIES Icon EQ SUCCESS STORIES
Adopting Creative Thinking Icon Adopting Creative Thinking
The Leader’s Edge Icon The Leader’s Edge
Free Downloads - Complete List

Entrepreneur Tools and Guides
Top 50 Business Plan Blog Posts for 2008
Top 50 Business Plans
Top Business Plan Blogs
 
Top 50 Blogs For Startups To Watch In 2009
Top 50 Blogs For Startups
Top Blogs To Watch In 2009
 
Entrepreneur Tools and Guides

SEO For Africa
SEO For Africa
Felicia Olaniyin Lagos State, Nigeria,
Felicia Olaniyin
Lagos State, Nigeria
SEO For Africa

If I Were A Startup...
Catherine Daw, > $4 Mil in revenues
Catherine Daw
> $4 Mil in revenues
Erez Zevulunov, $150k to $504k in 2 years
Erez Zevulunov
$150k to $504k in 2 years
If I Were A Startup... - Complete List

Famous Entrepreneurs
Coco Chanel, Chanel Inc.
Coco Chanel
Chanel Inc.
Paul Newman, Newman's Own
Paul Newman
Newman's Own
Famous Entrepreneurs - Complete List

Entrepreneur Advice
Zig Ziglar, See You At The Top
Zig Ziglar
See You At The Top
Timothy Ferriss, 4 Hour Work Week
Timothy Ferriss
4 Hour Work Week
Entrepreneur Advice - Complete List

Popular Articles
(Premium Authors)

     Legitimate Home-Based Business: Finding a Needle in a Haystack?
By Andy Lax
     Top Ten Home-Based Businesses
By Andy Lax

Have A Suggestion?
Toronto Salsa Classes / Toronto Salsa Lessons 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 and Sean Combs!
Have A Suggestion?

More Evan Carmichael
More Information