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SME's - the impact of regulation

Written by: Dr. Rob Smorfitt

Article Overview: What happens when we overregulate?

Free Download - SMEs – SMEs struggling in South Africa. Why? By Dr. Rob Smorfitt
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SME's - the impact of regulation

In the previous article we looked at possible reasons/causes for why African governments overregulate. But what is the impact of that regulation?

Firstly my experience to date in a number of African countries shows that entrepreneurship fires are yet to be lit among the local populace. Overregulation is like pouring water on the fire before trying to light the fire. What entrepreneurial spirit exists is predominantly as a result of desperation. They are survivalist entrepreneurs. They are unemployable due to a lack of qualifications and/or skills. This is compounded by high unemployment rates. They are simply left with no choice but to start selling products on the side of the road.

The collectivism culture within Africa exacerbates this problem even further. So what is the solution?

Education!! The governments of Africa need to start a massive education programme that covers every age group within the populace. They need to show people that being an individual is not a bad thing. Wanting to succeed and get ahead of your friends, neighbours and family is a good thing. Wanting the better things in life is a good thing. That to achieve this requires an entrepreneurial approach and a whole lot of hard work! Find and highlight the few role models within the different communities. Show varying degrees of success, as it is not always about the super rich. Ensure you address each and every community in the country.

Other countries, developed ones too, have launched similar programmes. It is a slow process, and will require that we re-engineer the mental approach of the whole populace over a period of time. It needs culturally sensitive and relevant marketing and advertising. It requires a genuine partnership between business and government, as it is unlikely that governments will have the understanding to design this campaign.

Rob Smorfitt

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Home > African-Accounts > Dr. Rob Smorfitt > SMEs the impact of regulation
Article Tags: entrepreneur, entrepreneurship, marketing entrepreneurship, 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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