6 - Enhancing the Competitiveness and Productivity of Small and Medium Scale Enterprises (SMEs) in Africa: An Analysis of Differential Roles of National Governments Through Improved Support Services
Corresponding Author(s) : Asmelash Beyene
Africa Development,
Vol. 27 No. 3-4 (2002): Africa Development: Special Issue on •New Public Sector Management Approaches in Africa'
Abstract
Small and Medium Scale Enterprises (SMEs) are universally acknowledged as effective instruments for employment generation and economic growth. Even in countries with large corporations such as the United States, SMEs contribute a very substantial percentage to the employment generated. In Africa, where the private sector is not well developed, SMEs could play a critical role in stimulating development and alleviating poverty. This paper tries to look at the role SMEs can play in the continent's development, their current predicament characterized by numerous constraints that prevent them from realizing their full potential as instruments of development and highlight the kind of measures that need to be taken to enhance their effectiveness and competitiveness so that they can become effective players in regional and global markets. The study draws on empirical studies undertaken in selected Africa countries and measures proposed for dealing with the constraints by entrepreneurs and government offi cials in different fora.
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- Agribank ofNamibia, 1999, Annual Report. Beyene, A. 2000a, •Support servicesfor enhancing competitiveness of African SMES in regional and global mar kets: The Case of South Africa', unpublished report, ECA.
- Beyene, A. 2000b, 'Support services for enhancing competitiveness of African S MES in regional and global markets: The Case of Namibia', unpublished report, ECA.
- Beyene, A. 2000c, 'Support services for enhancing competitiveness of African SMES in regional and global markets: The Case of Mauritius', unpublished report , ECA.
- Black Business Quarter/y, 2000, Vol. 2, No 2, second quarter.
- Brnhns, Peik R, 2000, 'Developing the Small Enterprise Sector', Namibian Chamber of" Commerce and Jndustry Business Journal, Vol.! No. 3.
- Department of Trade and 1ndustry, 1997, A guide to exporting fàr sma/1 and medium and micro enterprises, South Africa.
- Department ofTrade and lndustry, 2000, Export /ncenfil'Cs.
- Current Training Courses of the Agricultural Research Council, 2000, documents compiled by Dirk Uys, ARC. LNR.
- .De Chaz Du Mee, 1998, 'Research study on small and medium enterprises, Finalreport 2, recommendations'.
- ECA, 2001a, 'Enhancing the Competitiveness of SMEs in Africa: A StrategicFramework for Support Services', Economie Commission for Africa, ECA/DMD/PSD/TP/00/04.
- ECA, 2001b, 'Emerging issues in private sector development: Enhancing the Competitiveness of SMEs in Africa', ECA/DMD/PSD/01/02, Yaounde, Cameroon.
- Erastus-Sachara, A., Hanshom, D. and Kadhikwa, G., 1999, 'Small Enterprises Support Institutions in Namibia', The Namibian Economie Policy Research Unit, Report No. 17, Windhoek.
- Export Processing Zones Development Authority, 1999, 'National Strategy for the Mauritius Textile and Clothing Industry for 2005 and Beyond', Task force report,lndustry Focus, No 498, Mar-Apr 2000, c/o EPZDA, Mauritius.
- Fadahunsi, 0 and Daodu, T, 1997, Small and Medium Enterprise Development: Programmes and Prospects, Lagos: West African Management Development Institutes Network.
- Farzanan Nahaboo, 2000, SmaU & Medium Enterprises Federation, Memorandum to the Minister of Finance, March.
- KHULA Enterprise Finance Ltd., 1999, Annual report 1998/99. KHULA Enterprise Finance Limited, 2000, KHULA News, vol. 1 No. 4. KHULA Enterprise Finance Ud., 1997, Atl. l Report, 1997.
- KHULA _Enterprise Finance.:;pd., 1998, Aat_) Report, 1998.
- Meat corporation ofNamibià., 2000, Annua MEATCO Report.
- Ministry of Industry, 1996, 'Namibia: Small and Informai Sector Vendor Development Programme, Final Report'.
- Ministry of Economie Development, Productivity and Regional Development, 2000, 'lnto the Third Millennium, National Strategy for Sustainable Development, 1999-2005 ', technical supplements, Port Louis.
- Mauritius Export Development and InvestmentAuthority, 1999, Mauritius export directory, Port Louis.
- National African Federated Chamber of Commerce and Industry (NAFCOCO), 1995, 'Improving the South African Investment Climate', pp. 24-25.
- NAFCOC, 1995, 'Democratization and Growth of the South African Economy: Barriers to Entry,' National Agricuitural Marketing Council, 1999, Report on the Investigation into Market Access, Pretoria.
- Namibia Trade Directory, 2000, 'A Review ofNamibian Trade and Industry'.
- National Agricultural Marketing Council, 1999, Report on 'The Investigation into MarketAccess', Pretoria, February.
- Namibia Chamber of Commerce and Stiftung F.E., 1999, Strategies for Small Business Development: A Guide.fàr Regional and local Authorities. Second edition.
- National Development Corporation, To Know Who We Are. Fact sheets, undated. NTISIKA Enterprise Promotion Agency, 1999, State of Small Business in SouthAfrica.
- Republic of Namibia, Ministry of Agriculture, 1999, Water and Rural Development, Annual Report by the Registrar of Co-Operatives January 4, 1998-March 30, 1999.
- Republic of Namibia, Ministry of Trade and lndustry, A Guidebook for Manufacturers in Namibia, undated.
- Republic of Namibia, Ministry of Trade and lndustry, Ashekele H.M. and Nesongano, M., 1999, Strategies for the Management of Appropriate Industrial Production Technologies, Windhoek.
- Republic of South Africa, 1996, Govemment Gazette, National Small Business Act.
- Republic of South Africa, 1995, Govemment Gazette, Notice No. 213 of 1995, White Paper on National Strategy for the Development and Promotion of Small Business in South Africa.
- Republic of South Africa, 1999, The Government Communication and Informa tion system,.Sixth edition, Pretoria, South Africa.
- Small and Medium Industries Development Organization, (SMIDO), 1997, 'Enhancing the Competitiveness of the SMEs sector', project proposai for financing by the European Union, December 9.SMIDOAnnual report 1997-1998.
- SMIDO, 'SMIDO at a Glance', undated pamphlet.
- Schade, K., 2000, 'Overview of the Manufacturing Sector', Namibian Chamber of Commerce and Jndustry Business Journal, Vol. 1, No. 3, Windhoek.
- Stuart-Smith, K., 2000, Survive and Thrive, Gherzi Textile Organisation, Zurich, Switzerland.
- Tanin, C., Dieci, P., Ricoveri, A., Foresi, S. and Hansohm, D., 1998, Financial Services.for Sma/1 Ente1prises in Namibia, commissioned by the Joint Con sultative Committee, Freidrich Ebert Stiftung, CISP.
- United Nations Development Programme (UNDP), 1998, Development Cooperation Namibia, Windhoek.
- United Nations Economie Commission for Africa (UNECA), 2001, Enhancing the Competitiveness of SM Es in Afi·ica: A Strategic Frameworkfor Support Services, ECA/DMD/PSD/TP/00/04, August 9.
- Uys, D., 2000, 'Typical ARC Services to Small Business Opportunities', materials compiled by Business Development Unit, ARC Central office, March.
- Wignaraja, G. and O'Neill, S., 1999, 'SME Exports and Public Policies in Mauritius', Commonwealth Trade and Enterprise Paper, London, Com monwealth Secretariat, pp. 90.
References
Agribank ofNamibia, 1999, Annual Report. Beyene, A. 2000a, •Support servicesfor enhancing competitiveness of African SMES in regional and global mar kets: The Case of South Africa', unpublished report, ECA.
Beyene, A. 2000b, 'Support services for enhancing competitiveness of African S MES in regional and global markets: The Case of Namibia', unpublished report, ECA.
Beyene, A. 2000c, 'Support services for enhancing competitiveness of African SMES in regional and global markets: The Case of Mauritius', unpublished report , ECA.
Black Business Quarter/y, 2000, Vol. 2, No 2, second quarter.
Brnhns, Peik R, 2000, 'Developing the Small Enterprise Sector', Namibian Chamber of" Commerce and Jndustry Business Journal, Vol.! No. 3.
Department of Trade and 1ndustry, 1997, A guide to exporting fàr sma/1 and medium and micro enterprises, South Africa.
Department ofTrade and lndustry, 2000, Export /ncenfil'Cs.
Current Training Courses of the Agricultural Research Council, 2000, documents compiled by Dirk Uys, ARC. LNR.
.De Chaz Du Mee, 1998, 'Research study on small and medium enterprises, Finalreport 2, recommendations'.
ECA, 2001a, 'Enhancing the Competitiveness of SMEs in Africa: A StrategicFramework for Support Services', Economie Commission for Africa, ECA/DMD/PSD/TP/00/04.
ECA, 2001b, 'Emerging issues in private sector development: Enhancing the Competitiveness of SMEs in Africa', ECA/DMD/PSD/01/02, Yaounde, Cameroon.
Erastus-Sachara, A., Hanshom, D. and Kadhikwa, G., 1999, 'Small Enterprises Support Institutions in Namibia', The Namibian Economie Policy Research Unit, Report No. 17, Windhoek.
Export Processing Zones Development Authority, 1999, 'National Strategy for the Mauritius Textile and Clothing Industry for 2005 and Beyond', Task force report,lndustry Focus, No 498, Mar-Apr 2000, c/o EPZDA, Mauritius.
Fadahunsi, 0 and Daodu, T, 1997, Small and Medium Enterprise Development: Programmes and Prospects, Lagos: West African Management Development Institutes Network.
Farzanan Nahaboo, 2000, SmaU & Medium Enterprises Federation, Memorandum to the Minister of Finance, March.
KHULA Enterprise Finance Ltd., 1999, Annual report 1998/99. KHULA Enterprise Finance Limited, 2000, KHULA News, vol. 1 No. 4. KHULA Enterprise Finance Ud., 1997, Atl. l Report, 1997.
KHULA _Enterprise Finance.:;pd., 1998, Aat_) Report, 1998.
Meat corporation ofNamibià., 2000, Annua MEATCO Report.
Ministry of Industry, 1996, 'Namibia: Small and Informai Sector Vendor Development Programme, Final Report'.
Ministry of Economie Development, Productivity and Regional Development, 2000, 'lnto the Third Millennium, National Strategy for Sustainable Development, 1999-2005 ', technical supplements, Port Louis.
Mauritius Export Development and InvestmentAuthority, 1999, Mauritius export directory, Port Louis.
National African Federated Chamber of Commerce and Industry (NAFCOCO), 1995, 'Improving the South African Investment Climate', pp. 24-25.
NAFCOC, 1995, 'Democratization and Growth of the South African Economy: Barriers to Entry,' National Agricuitural Marketing Council, 1999, Report on the Investigation into Market Access, Pretoria.
Namibia Trade Directory, 2000, 'A Review ofNamibian Trade and Industry'.
National Agricultural Marketing Council, 1999, Report on 'The Investigation into MarketAccess', Pretoria, February.
Namibia Chamber of Commerce and Stiftung F.E., 1999, Strategies for Small Business Development: A Guide.fàr Regional and local Authorities. Second edition.
National Development Corporation, To Know Who We Are. Fact sheets, undated. NTISIKA Enterprise Promotion Agency, 1999, State of Small Business in SouthAfrica.
Republic of Namibia, Ministry of Agriculture, 1999, Water and Rural Development, Annual Report by the Registrar of Co-Operatives January 4, 1998-March 30, 1999.
Republic of Namibia, Ministry of Trade and lndustry, A Guidebook for Manufacturers in Namibia, undated.
Republic of Namibia, Ministry of Trade and lndustry, Ashekele H.M. and Nesongano, M., 1999, Strategies for the Management of Appropriate Industrial Production Technologies, Windhoek.
Republic of South Africa, 1996, Govemment Gazette, National Small Business Act.
Republic of South Africa, 1995, Govemment Gazette, Notice No. 213 of 1995, White Paper on National Strategy for the Development and Promotion of Small Business in South Africa.
Republic of South Africa, 1999, The Government Communication and Informa tion system,.Sixth edition, Pretoria, South Africa.
Small and Medium Industries Development Organization, (SMIDO), 1997, 'Enhancing the Competitiveness of the SMEs sector', project proposai for financing by the European Union, December 9.SMIDOAnnual report 1997-1998.
SMIDO, 'SMIDO at a Glance', undated pamphlet.
Schade, K., 2000, 'Overview of the Manufacturing Sector', Namibian Chamber of Commerce and Jndustry Business Journal, Vol. 1, No. 3, Windhoek.
Stuart-Smith, K., 2000, Survive and Thrive, Gherzi Textile Organisation, Zurich, Switzerland.
Tanin, C., Dieci, P., Ricoveri, A., Foresi, S. and Hansohm, D., 1998, Financial Services.for Sma/1 Ente1prises in Namibia, commissioned by the Joint Con sultative Committee, Freidrich Ebert Stiftung, CISP.
United Nations Development Programme (UNDP), 1998, Development Cooperation Namibia, Windhoek.
United Nations Economie Commission for Africa (UNECA), 2001, Enhancing the Competitiveness of SM Es in Afi·ica: A Strategic Frameworkfor Support Services, ECA/DMD/PSD/TP/00/04, August 9.
Uys, D., 2000, 'Typical ARC Services to Small Business Opportunities', materials compiled by Business Development Unit, ARC Central office, March.
Wignaraja, G. and O'Neill, S., 1999, 'SME Exports and Public Policies in Mauritius', Commonwealth Trade and Enterprise Paper, London, Com monwealth Secretariat, pp. 90.