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SME's - does protectionism help

Guest post by: Dr. Rob Smorfitt

Article Overview: Is protectionism necessary in the African context fro SME's

Free Download - SMEs – SMEs struggling in South Africa. Why? By Dr. Rob Smorfitt
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SME's - does protectionism help

African countries at times perceive that other African countries produce citizens who are more entrepreneurial than their own. However, do these three countries really produce more entrepreneurs than others? Is this based upon reality or sound research?

Not that I am aware of! I believe that these people as emigrants or economic refugees are perhaps just a little more desperate than the local communities. They also cannot fall back on the local government, so they have to create opportunities.

Africa on the whole tends to lack entrepreneurial spirit. The locals in every country resent other Africans, perceiving them to be better at entrepreneurial activities. I think it is closely linked to collectivism among all African people. Even comparing white Afrikaners to whites of British descent highlights this. The Afrikaners too have a strong collectivism within their culture, and they too lag the English whites in entrepreneurial drive. This is based upon my own anecdotal evidence and not solid research. Therefore a Nigerian, or any emigrant for that matter, in South Africa, tends to not be able to act in a collective manner as he is not part of the local collective and therefore is obliged to act in an individualist manner.

We need to drive the individualism approach within all our communities in order to break away from collectivism, and thereby hopefully create strong communities within which the entrepreneurs can flourish.

Rob Smorfitt

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Home > African-Accounts > Dr. Rob Smorfitt > SMEs does protectionism help
Article Tags: Africa, culture, entrepreneur, entrepreneurship, protectionism, SME, SMME, Smorfitt

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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SME, SMB, SMME, all the debate and info
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Related Forum Posts
Re: In-House or Outsource? 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
How Well Protected Are The Patent Holders? How Well Protected Are The Patent Holders? - Intellectual property laws vary from jurisdiction to jurisdiction. And it is such that the acquisition, registration or enforcement of the rights must be pursued or obtained separately in each territory of interest. Intellectual property in law is a general term for various legal entitlements. The holder of this legal entitlement is generally entitled to exercise various exclusive rights. Intellectual property laws are designed to protect different forms of subject matter, in this case a Patent. A patent may be granted for a new, useful, and non-obvious invention, and gives the patent holder an exclusive right to commercially exploit the invention for a certain period of time, typically 20 years from the filing date of a patent application. Patents, trademarks, and designs rights are sometimes collectively known as industrial property, as they are typically created and used for industrial or commercial purposes. Various schools of thought are critical of the term “intellectual property”. Some characterise it as intellectual protectionism. From the perspective of economics, intellectual property is a temporary monopoly on the use or exploitation of that Patent, supported by legal enforcement mechanisms. There is a debate going on every where that intellectual property laws truly operate to confer the stated public benefits, and whether the protection they are said to provide is appropriate in the context of innovation derived from such things as traditional knowledge and folklore, and patents for software and business methods. Manifestations of this controversy can be seen in the way different jurisdictions decide whether to grant intellectual property protection in relation to subject matter of this kind, and the divide on issues of the role and scope of intellectual property laws. Most exclusive rights are the right to sue an infringer, which has the effect that people will approach the patent holder for permission to perform the acts to which the patent holder has exclusive right
Re: Women and Financing - It's Difficult! Re: Women and Financing - It's Difficult! - I found this paragraph of interest (in the article from Nana's link: [quote="Nana":3r7womqv]Other studies show that women operate more service and retail establishments than men, which might explain their difficulty in getting financing since financial institutions often consider these two sectors more risky. However, although women are generally less inclined than men to apply for financing, when they do, they are more likely to get it. According to a study by Industry Canada on SME financing in Canada, in 2000 majority female-owned SMEs obtained a loan approval rate of 82%, which is slightly higher than the approval rate for majority male-owned businesses (80%). This suggests that when they do apply for financing, businesswomen submit excellent applications. [/quote:3r7womqv] They say, "Women are more likely to get [financing]." But the difference is only 2 percentage points! Big deal! And, that was only for one year, 2000. I'd like to know what the 10-year average is. Numbers can be manipulated to mean anything you want them to mean...it all depends on what you want to show.


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