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SMEs working in the dark

Written by: Dr. Rob Smorfitt

Article Overview: Poor statistical information leaves SME's with no direction.

SMEs working in the dark

South Africa is ahead of many other African countries in many contexts, but itself remains riddled with issues.

Confronted with a GDP growth rate that just will not budge over 5%, South Africa has, together with the rest of Africa, reached out for the golden fleece called the SME.

However, while there are no specific interventions aimed at growing the existing SME's, the existing businesses are still able to thrive simply because the economy is still doing reasonably well at 5% growth rate.

But these unassisted SME's, together with those government is trying help, all have the same problem to contend with. A complete and utter lack of formal market information. At a recent high level function with the Department of Trade & Industries, they handed out booklets on a variety of economic topics. The biggest and most impressive full colour book, was 3 YEARS OLD.

This speaks to the problem in a clear voice. Overtrading is a major problem in South Africa, simply because there is no information to guide or inform wannabe SME's. This is a disgrace considering that we have such an advanced and informed constitution, and yet the departments themselves do not share valuable information with the country's business people!!! Why not? Do they not have it?

Until such time as our businesses, particularly the SME's who cannot afford to do their own research, get access to useful and timeous market related information and research, we will never become a great nation of entrepreneurs and SME owners.

Rob Smorfitt

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Article Tags: entrepreneur, entrepreneurship, information, information provision, market research, research, SME, SMME, Smorfitt



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