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SMEs the impact of government interventions

Written by: Dr. Rob Smorfitt

Article Overview: An overview of the impact of government interventions on SME's.`

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SMEs the impact of government interventions

Governments the world over are renowned for intervening in the market in order to achieve whatever their political goals may be. Africa is particularly prone to these behaviours.

Whether, as example, it is the blatantly racist policies of the South African government, or the xenophobic nationalist policies of Botswana, the nett result is a negative impact on the market players.

At times the impact is short term and other times long term. In South Africa the racist policies have resulted in SME's being unable to grow simply because they cannot find suitably qualified staff, and they cannot employ whites with skills as they then face the probability of legal action. As a consequence, approximately 20% of the white population left the country in 2007. This has also impacted on big business, as our lack of electricity has clearly demonstrated.

In Botswana legislation has focused on protecting local citizens against non-citizens. This has lead to highly uncompetitive businesses. They are protected by law and have developed a sense of entitlement. The first thing the citizens rely on is not local market knowledge, but an appeal for even more protection.

It is time governments stop this practice. They are not helping, but simply skewing the markets even further, resulting in even greater hardship for their citizens

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Home > African-Accounts > Dr. Rob Smorfitt > SMEs the impact of government interventions
Article Tags: Africa, Botswana, entrepreneur, entrepreneurship, protectionism, SME, SMME, Smorfitt, South Africa

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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