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
To learn more about this author, visit Rob Smorfitt's Website.
Like this article? Share it with your friends
 |
Related Articles |
|
Restricted Access to Finance
|
| |
Africa’s SMEs have little access to finance, which thus
hampers their emergence and eventual growth. Their
main sources of capital are their retained earnings and
informal savings and loan associations (tontines)...
|
What can business and governments do to promote SMEs?
|
| |
Poverty remains a major challenge to sustainable development, environmental security, global stability and a truly global market. The key to poverty alleviation is economic growth that is inclusive and reaches the m...
|
Facts about SMEs in Africa
|
| |
Very few countries have working definitions of SMEs, except some members of UEMOA/WAEMU and Mauritius and
Morocco. So data on this is hard to compare, though patterns can be seen and countries can be ranked by exte...
|
5.2.1 The MIT-SME section: Support for Growth-oriented Women Entrepreneurs in Tanzania, 2005
|
| |
Prior to 1997, the small business development function rested within a Unit whose
status was equivalent to that of a department and reported to a deputy minister.
|
Expanding the supply of finance through the non-financial private sector - Increasing SME Access to Finance: A Four Pronged Approach
|
| |
Financial institutions are not the only source of money for
SMEs. Apart from remittances by nationals working abroad,
which are a key boost to private-sector growth, the interdependence
between SMEs, large firms ...
|
|
|
Rob Smorfitt
(Visit Rob's Website)
Based in Pietermaritzburg, South Africa.
Married with 3 children (22, 21 and 14).
Have an MBA and am currently doing a PhD
in entrepreneurial success. I have been
self employed since 1982. I have started
26 and bought 5 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 in full time employment in my
bigger businesses. 6 books written in SME
and Project Management educational field.
Written articles for various magazines,
newspapers and websites.
|
|
|
Rob Smorfitt's
Complete
List Of
African-Accounts
Articles
|
|
If you enjoyed this article, get Rob Smorfitt's Complete List of African-Accounts Articles For FREE!
|
|
|
|