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SME's - do you want business from government?

Written by: Dr. Rob Smorfitt

Article Overview: Do SME's want business from government?

Free Download - SMEs – SMEs struggling in South Africa. Why? By Dr. Rob Smorfitt
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SME's - do you want business from government?

I believe that the quickest way to fail is to rely on government business. Firstly it is a purely random process, in order to spread the business among as many businesses as possible. It is impossible for the average honest SME to get a lot of business from government, as their intent is to shuffle the business around between as many SME's as possible.

The truth is that SME's will never build a sustainable business based on government business, no matter what government says to the contrary. I have seen more black onwed businesses fail because of non payment by their government than for any other reasons. It is not a race issue, but rather a competence issue. The way to grow a sustainable business is to target the private sector market segments. It is more difficult, but is is sustainable if you are good at what you do.

So define your private sector market, create a strategy and get out there and make money!
Rob Smorfitt

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Home > African-Accounts > Dr. Rob Smorfitt > SMEs do you want business from government
Article Tags: government business, government tenders, SME, SMME, Smorfitt, tenders

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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