SMEs are best for any developing economy

Editor, RE: “Entrepreneurship: Do we go SME or mega corporations?” (The New Times, August 25).

Editor,

RE: “Entrepreneurship: Do we go SME or mega corporations?” (The New Times, August 25).

This is an interesting read and well argued points; however, going the mega corporations’ route instead of SMEs-focused development may not be appropriate for tiny African economies.

The governments do not have the resources to support most social services, let alone setting up mega corporations. To make matters worse, foreign investors whose sole interest is profit have no interest in these small markets—the majority of African countries. These countries are therefore better placed by putting the meagre resources into SMEs development.

Countries like Kenya and now countries like Ethiopia, Côte d’Ivoire, and a few others, do have sufficient resources and management skills to implement the developmental state agenda.

China is a great example of the benefits of the developmental state policy—the biggest challenge to the success of mega state corporations in Africa the lack of management skills to run them.

There will also be need to get our politicians to seriously think about turning their focus to the South-South trade policy before we end up with white elephant mega projects.

Gerald

 

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