photo by:weekendpost.co.bw
SMES are literally the future. These superb entities are provide 80% of employment in Africa. There is no need to mention the crippling unemployment figures that were released this passing week by STATS SA, these give a clear depiction of the problem in the sub Saharan region.
Botswana is not exempt from these perils. SMES are undoubtedly a necessity, their success means more people are employed and more members of society become active participants in the economy. Accordingly, our government and several others on the continent have developed strategies to ensure SMEs set up and [hopefully] survive. It is an extreme sport to survive past the five year mark, only fifty percent will manage this course. The thriving of SMES is dependent on a combination of several components some of which are debatable, some of which are immovable as pillars of a successful small or medium enterprise. [Market] Research is one of these but has been overlooked and underestimated.
There is an unequivocal need to know and understand information as a means to ensure the success of established startups and SMMES. Yet for far too long the focus for many governments,
business development agencies, and I have to fault entrepreneurs as well, has been on funding, the lack thereof. This includes sources of funding, strategies to secure funding for the business. In no way is this an insignificant hurdle for SME’s and it continues to haunt business owners. Governments like ours have taken some initiative to bridge the funding gap- albeit a debatable subject.
None the less the failure rate of SME’s is astounding and the entities are not contributing to employment and overall development at a pleasing rate. The fact of the matter is that once funding is sourced, once a capital injection is guaranteed, possibility of failure still lingers because of the underrated value of SMMES engaging Research. The purpose of which is to gain competitive advantage. Sadly even established SMES lack the personnel, skills and attitude to engage this monumental part of a thriving business model.
Finance facilities and capital injections are an obvious obstacle. But even when diminished, it doesn’t eliminate the need for established SMMEs to engage research: to inform their short term and long term strategy and operations. This remains the overlooked yet vital piece in mitigating the chances of failure of small and medium business’ alike, especially in economic climates which depend on these businesses to absorb the unemployed and therefore drive economic social development.
Research needs of each business will vary depending on size, industry, timeline and the goals set by owners and key stakeholders. For instance business’ needs for a competitor’s analysis will vary if the business only has a local footprint versus one which participates in intra-regional trade. Industry Best Practices, Consumer Studies, Sector Analysis are among some of the elements to be investigated by SMES as they grow and if they’re to survive beyond the five year threshold. The culture of engaging researchers is one that business owners and agencies assigned the role to support SMMES need to look into and cultivate with urgency and intentionality.
What ought to happen to induce this culture? Sufficient amounts of capital should be invested into research. As a matter of fact in these tough and volatile economic times, venture capitalist, grant patrons, agencies offering SMME’s financial facilities, and private investors alike, as the risk bearers, should tie their decision to fund having looked into whether the SME has engaged researches to ensure the validity of their model and the several assumptions that often lurk within a business operations and decisions. What needs to be carefully thought-out by entrepreneurs is how research and market insight are unequivocally necessary for any business model, more so if the business aims to be cutting edge, disruptive and above all successful conquering the crippling the SME failure rate.
On the flip side is the need for reliable sources of research and insight tailored for this group of the economy: these firms need to be able cater for SME budgets and also measure adequately their specific research needs in a way that ensures their gained competitive advantage. This is another issue for another article. However a piece of the puzzle that depicts the needs of successful SMEs not only in Botswana but the region at large given the ever changing dynamics, encompass research and analytics. The need has been overlooked, hopefully this can change.
This has to form a part of the decision making process on the part owners and executives of said entities and on part of business development agencies. There needs to be a scrapping of business practice where decisions concerning their market are informed solely by having an ‘ear to the ground’: even in cases where SMMEs have the favour of an availability of funding & capital.
SMES are literally the future. These superb entities are provide 80% of employment in Africa. There is no need to mention the crippling unemployment figures that were released this passing week by STATS SA, these give a clear depiction of the problem in the sub Saharan region.
Botswana is not exempt from these perils. SMES are undoubtedly a necessity, their success means more people are employed and more members of society become active participants in the economy. Accordingly, our government and several others on the continent have developed strategies to ensure SMEs set up and [hopefully] survive. It is an extreme sport to survive past the five year mark, only fifty percent will manage this course. The thriving of SMES is dependent on a combination of several components some of which are debatable, some of which are immovable as pillars of a successful small or medium enterprise. [Market] Research is one of these but has been overlooked and underestimated.
There is an unequivocal need to know and understand information as a means to ensure the success of established startups and SMMES. Yet for far too long the focus for many governments, business development agencies, and I have to fault entrepreneurs as well, has been on funding, the lack thereof. This includes sources of funding, strategies to secure funding for the business. In no way is this an insignificant hurdle for SME’s and it continues to haunt business owners. Governments like ours have taken some initiative to bridge the funding gap- albeit a debatable subject.
None the less the failure rate of SME’s is astounding and the entities are not contributing to employment and overall development at a pleasing rate. The fact of the matter is that once funding is sourced, once a capital injection is guaranteed, possibility of failure still lingers because of the underrated value of SMMES engaging Research. The purpose of which is to gain competitive advantage. Sadly even established SMES lack the personnel, skills and attitude to engage this monumental part of a thriving business model.
Finance facilities and capital injections are an obvious obstacle. But even when diminished, it doesn’t eliminate the need for established SMMEs to engage research: to inform their short term and long term strategy and operations. This remains the overlooked yet vital piece in mitigating the chances of failure of small and medium business’ alike, especially in economic climates which depend on these businesses to absorb the unemployed and therefore drive economic social development.
Research needs of each business will vary depending on size, industry, timeline and the goals set by owners and key stakeholders. For instance business’ needs for a competitor’s analysis will vary if the business only has a local footprint versus one which participates in intra-regional trade. Industry Best Practices, Consumer Studies, Sector Analysis are among some of the elements to be investigated by SMES as they grow and if they’re to survive beyond the five year threshold. The culture of engaging researchers is one that business owners and agencies assigned the role to support SMMES need to look into and cultivate with urgency and intentionality.
What ought to happen to induce this culture? Sufficient amounts of capital should be invested into research. As a matter of fact in these tough and volatile economic times, venture capitalist, grant patrons, agencies offering SMME’s financial facilities, and private investors alike, as the risk bearers, should tie their decision to fund having looked into whether the SME has engaged researches to ensure the validity of their model and the several assumptions that often lurk within a business operations and decisions. What needs to be carefully thought-out by entrepreneurs is how research and market insight are unequivocally necessary for any business model, more so if the business aims to be cutting edge, disruptive and above all successful conquering the crippling the SME failure rate.
On the flip side is the need for reliable sources of research and insight tailored for this group of the economy: these firms need to be able cater for SME budgets and also measure adequately their specific research needs in a way that ensures their gained competitive advantage. This is another issue for another article. However a piece of the puzzle that depicts the needs of successful SMEs not only in Botswana but the region at large given the ever changing dynamics, encompass research and analytics. The need has been overlooked, hopefully this can change.
This has to form a part of the decision making process on the part owners and executives of said entities and on part of business development agencies. There needs to be a scrapping of business practice where decisions concerning their market are informed solely by having an ‘ear to the ground’: even in cases where SMMEs have the favour of an availability of funding & capital.
