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Information and Networks: Constraints of growth-oriented enterprises in the southern and eastern African region

Guest post by: Journal of Development Entrepreneurship

Article Overview: It has been said that no man is an island. Although the entrepreneurs did not say so explicitly, it was apparent that most of the larger enterprises had benefited greatly from obtaining outside influences.

Information and Networks: Constraints of growth-oriented enterprises in the southern and eastern African region

It has been said that no man is an island. Although the entrepreneurs did not say so explicitly, it was apparent that most of the larger enterprises had benefited greatly from obtaining outside influences. In order to remain competitive they had kept abreast with what was happening in their relevant environment. External influences were obtained by, making trips abroad, hiring managers from other enterprises, and engaging consultants to assist in enterprise development. Enterprises that seek to grow are not only likely to benefit from listening to others, but also will probably profit from cooperating with others. Enterprise growth is most often achieved by specialization. A popular concept among policy makers for enterprise growth is the creation of industrial clusters, where advantages of flexible specialization are fully utilized (Van Dijk & Rabellotti, 1997). In such clusters, manufacturers that use a similar resource such as leather would work together in various ways. Among the benefits are the competence acquired by learning from each other and an increase production capacity by sub-contracting to each other. However, there is little sub-contracting in the countries covered by this study

As noted also in other studies (e.g., Biggs & Srivastava, 1996), the Focus Group Discussions showed that enterprises lack information on a number of issues, such as market, technology and suppliers. Enterprises that seek to grow would benefit from better access to information and the sharing of information should be encouraged. Enterprises would also benefit from learning more about the advantages of associating with others and in creating their own networks.


Constraints of growth-oriented enterprises in the southern and eastern African region
Journal of Developmental Entrepreneurship, Oct 2002 by Trulsson, Per

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Article Tags: biggs, competence, constraints, developmental entrepreneurship, enterprise development, enterprise growth, flexible specialization, focus group discussions, hiring managers, industrial clusters, market technology, van dijk



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