Sunday, February 26, 2023

Who do SMEs really help?

Ever so often we need to take stock of what we do. We often hear of the benefits of SMEs being touted online, but I really need to beg an answer to this question. Who is really benefitting as a result of what has been dubbed entrepreneurship? 

At the micro level, it is a way of helping people develop gainful self-employment, which enables governments to boast about how many jobs were created. However, for those who work within the sector and are observant, it is hard to recognize that the technical assistance entities need to be more holistic in their approaches to SMEs. 

The result is that many entities open and operate as SMEs throughout their entire existence growing to a certain level and no further. The majority function as trading as/general partnerships and those who incorporate are unaware of their strategy for doing so. They also don't have an exit plan that would enable the business to survive beyond their lifetime. 

Too many entities are dependent on the most expensive way of raising capital which is through the banking system and few, if any, really look towards creating equity finance opportunities where investors can participate meaningfully. 

Still others are not up on the information required for good governance and in some cases where to turn to find it. Many entities cannot hire the talent they need on a full time basis and many are concerned that they cannot afford the fees of outsourcing. 

Trainnig should be on-going and many your entrepreneurs fine the pressure of down time being adequate for them to participate in such continuing education. Therefore they drop behind. It is for that reason that those of us who do train must keep updated with technology so as to better provide solutions. 

So does having a SME really help? The answer is really up to those who have benefitted and continue to benefit. 

We need to do better for our entrepreneurs as running a business has a lot of moving parts, and we don't learn them all in business school. 

Keep checking back for more posts or recap some of the older ones on this site. 

Have a great week ahead. 


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