SMEs need support structures
A slow response to the current problems facing Small and Medium Enterprises could have a negative impact on the country’s economy.
According to Botswana Exporters and Manufacturers Association Interim Executive Director Gideon Phiri, the education system in the country should link very closely if SMEs are to grow. He said this at a breakfast meeting organised by Botswana Guardian and Standard Chartered Bank on Wednesday. He said that Botswana needs an education and training system that nurtures entrepreneurship. “It is not about qualifications but whether you can do the job,” he said.
Phiri said that the sector also needs a support structure from CEDA and LEA. He was worried that the financial sector is not SMEs-focused and that they should be able to differentiate between a small and a medium business. The seminar was aimed at recognising the importance of crisis response policies specifically addressing the needs of SMMEs, This includes increasing the flow of credit and other types of finance to SMEs, tax reduction, subsidies to SMEs, support to entrepreneurships and self-employment programmes and developing a strategy to ensure that the views of SMMEs in framing crisis responses are known by policy makers.
They also play a fundamental role in economic diversification and creation of employment,” he said, challenging Batswana to be proud of their exports. For her part, Standard Chartered Bank SME General Manager Motlalepula Mpho said banks should assist in managing the uncertainties in the businesses of SMMEs. Such uncertainties, she said, include fluctuating currency rates, commodity prices and changing rates. Banks should also simplify their growing cross border needs for SMMEs to expand their operations into new markets. “Be there for them not just in the good times, because they need support and commitment from their bank,” she said. The bank has been doing business with SMMEs for more than a decade. The latest products include the Working Capital, Business Protection, Business Expansion and Yield Enhancement.
The Working Capital enables the customer to manage his cash efficiently with the online banking platform while the Yield Enhancement enables the customer to earn interest on his excess cash with the bank’s fixed term deposit account. CEDA Acting Chief Operations Officer James Moribame said SMMEs sector lacks mentorship. He said that people in business should be taught financial management and packaging of ideas. He challenged them not to rely on government as a single consumer. Urban clothing wear, Mafia Soul chain-store owner Molefi Nkwete urged stakeholders to show interest in the development of their businesses.
First Sun Alliance Managing Director Paul Chitate emphasised that the SMMEs sector should be protected so that foreign markets don’t shut them out. Marina Bathuleng-Mookodi, Managing Director of BWR Quantity Surveyors said the attitude of regulators sometimes block people who have a potential to thrive in their businesses.
