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SME's - why business from government is a challenge

Written by: Dr. Rob Smorfitt

Article Overview: Why African governments battle to give SME's business

SME's - why business from government is a challenge

The reason that developed countries do not understand why developing countries in Africa do not give business to SME's is due to a simple oversight. They assume that governments are fully computerised. This is the problem, as they are not all computerised.

If they have computerisation it is seldom that they have a omplete ERP system.

On a recent exercise in an African country, the government did not have a single department that could tell us what they purchase from SME's. They cannot tell you what they purchase from any group of people. The systems are archaic and not suited to the globalised world we live in today, and unlikely to assist governments in understanding their purchasing. Most of their departments do not have much computerised at all, and often they have paper systems distributed around the country, which in effect are useless to anyone.

Aid should be focused on computerising the governments in Africa, as this will help them to control the cash and see what is being spent by who, and may just help to slow down the theft and fraud.
Rob Smorfitt

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Article Tags: economic development, entrepreneur, entrepreneurship, IT, SME, SME development, SME purchasing programmes, SMME, Smorfitt



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