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SME's - are some Africans more entrepreneurial than others
Written by: Dr. Rob SmorfittArticle Overview: Are Nigerians more entrepreneurial than Zulus? What about other groups?
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Free Download - SMEs – SMEs struggling in South Africa. Why? By Dr. Rob Smorfitt |
SME's - are some Africans more entrepreneurial than others
No matter which African country I go to, there is always antagonism between the locals and the "imports" from elsewhere in Africa. This raises the question about whether there is a difference in the level of entrepreneurial drive between the native populations of different countries in Africa.
In South Africa there is a perception that the people from Ghana and Nigeria are better business people than the locals. In Botswana recently I heard comments about the Kenyans and the Tanzanians being good business people and being better than the locals.
All these countries have previously been British colonies and share a similar educational heritage. So is there a tangible difference.
I have not seen any research to support either perspective. However, I do have a theory which is that the real issue is that no matter who you are, when you are an "outsider" in another country, you do not have the support networks, the contracts, the friends that the locals do, the local market knowledge, and so you find it harder to make a living. Furthermore if you are an illegal alien, or perhaps even if you are legal, it is unlikely you will find a job in the formal sector in countries with high unemployment. Xenophobia will ensure you never get shortlisted!! Therefore as the outsider you soon reach desperation level, and have to resort to survivalist entrepreneurial activities.
This topic could very well provide a great topic for a Masters or Phd thesis. I would love to see the results of research in this topic.
Leverage Subject Matter Experts
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5.2.1 The MIT-SME section: Support for Growth-oriented Women Entrepreneurs in Tanzania, 2005
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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
Paypal now Available to South Africans
- I don't know if there are many South Africans on this forum, but recently Paypal announced that South Africans can now receive payments from them. They have done a deal with First National Bank so all that needs to be done is to open an account with this bank and you can receive money from your Paypal account.
This is great news as it opens up a lot more opportunities for those of us living in this part of the world.
MichelleJ
Re: How will an african make money truely on the net?
- Hello, Tope:
I can sense your pain and concern and I understand. I know it seems like discrimination of a sort, and perhaps it is to some degree. However, in my opinion, I simply see it as part of the "growing pains" of the global community and Internet econimics.
I don't think Africans are experiencing anything in that respect too much different than many Europeans and North Americans felt in the early days of the Internet. Oh, how we went through some of the same challenges with payment systems, etc., that you are now describing for Africans!
For us, systems improved as needs were identified, and order and payment processes were fine-tuned to make them more easily available to greater numbers of people and easier to use.
I think Africans will experience something similar as technology improves and service providers begin to recognize the needs and the potential in the African market.
I would say to you, "be patient," but I know that's not the answer you are looking for! You need solutions now, not next year. Other forum members have offered some suggestions and I am hoping to see more ideas follow as members read this topic thread.
The only thing I can suggest at the moment is to be vocal, keep the discussion going within all of your circles of influence (not just the EvanCarmichael.com forums), get fellow Africans talking about it to make the issue publicly known and perhaps that will help draw attention to the need.
GT :-]
Re: How will an african make money truely on the net?
- Hi Topeyinka,
You touched a good point here. Unfortunately this problem is not just for Africans, less for those who live in south Africa, but also in Europe, the far east and the middle east.
It is hard but many affiliates showed it is possible to do. If you really want too succeed nothing will ever stop you.
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?
- 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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