Small Medium Enterprises are Seedbeds for Innovation I read something so profound that I do not fear highlighting it over and over again, which reads as follows, “You cannot remake the world without remaking yourself. Each new era begins within. It is an inward event with unsuspected possibilities for inner liberation.” Ben Okri, 1999, Turn on your light - an excerpt. Mulling over this exceptional thinking, It brings me to the focus of this article, that the New Small Medium Enterprises are Seedbeds for the Innovation with unsuspecting possibilities as Ben Okri articulates. His statement “It is an inward event” evoke enormous emotions within me. I want to submit and dare say that he was talking about this epoch. We need visionary leaders that are not self-serving but are fully aware of the demand of this season. SME’s in South Africa and the continent where we find extremes such as “cradle of humankind”, up against “catastrophic bloodshed in DRC, ‘mineral rich up against the world’s poorest continent, a market of almost a billion consumers up against more than half of Kenyans living on a couple of dollars a day, free and fair elections up against pervasive corruption and incompetent political management, exceptional athletic capability (of which Ethiopia and Kenya embodies) up against the home of nasty diseases such a Malaria who still kills up to 3 million people a year and 3,000 children a day not forgetting the capital of AIDS. This Africa cannot continue to define tomorrow, the winds of change and the spirit of entrepreneurship is beginning to sweep across the entire continent. Just about all emerging market economies, including South Africa, did not escape the real economy effects of the global financial crisis. SME’s which I view as the seedbeds for innovation offer us the opportunity to find our resourcefulness. I’m of the view that the economic slump offered us and opportunity to equalize the playing field for entrepreneurs, but instead, we to a large extent closed shop during a period which we had to spend our way out of our liability traps. The impact on economic growth, foreign and domestic investment and the external balance of the economy was both austere and speedy. Adding to this is the social health consequences of the on going crisis which saw millions of people losing their jobs. With the deficit-to-GDP ratio nearing pre-1994 levels, there remains a succession of economic policy questions, concerns and themes around both the impact of the global financial crisis on the South African economy, as well as the possible lessons that can be gleaned from this crisis for both policymakers and psychoanalysts. How we navigate through all these adverse circumstances will define our character and mettle. Small business and the new entrepreneurship resurgence are long overdue. Gone are the days where we hero worship a few successful business men and women, we have to delineate our own future. The citizens of South Africa needs to put this country on the map for the right reasons, no rand must be speared in our quest in developing an attractive South Africa Emerging Small Business. Through entrepreneurial activities, we the citizens must make South Africa competitive; we have to get beyond the blame and traditional thinking trap. The spirit of entitlement need to be laid naked on the alter and while we allow our God given aptitudes to emerge. The tender mentality is crippling the true entrepreneurial spirit for the sake of expedience. Political leaders, business leaders, and civil society must begin a respectful, fact-based dialogue about our limitations and how we plan to tackle the challenges. We need to focus on our collective competitive advantage as a country, the common thread that unites us should be shaping the new SA Entrepreneur, build on the backbone of vibrant commonalities that is honestly entrepreneurial, which brings cohesion called structure. Our input-output modelling is important tools in understanding the structure of the economy, and how certain economic events and/or policies would impact on the economy. These models are highly dis-aggregated and provide useful insights into the linkages between various industries and institutions within the South African context. Our discourse must also provide the foundations needed for more sophisticated modelling approaches such as computable general equilibrium (CGE)modelling.More about CGE in another article. The time has come for inventive and imaginative solutions that are not just about the four P’s of marketing. South Africans must tap into the pioneering intelligence of the people on the ground as oppose to the conventional wisdom. Institutions like the IDC and its subsidiaries, the NEF and all DFI’s must prioritize entrepreneurial development funding, that is, if they purpose to reduce poverty and assist creating a pulsating economy. It’s no secret that the PPPFA was doomed from the beginning, simply because very little consideration was made in understanding what a developmental state is all about? The consequence of the PPPFA is that the previous advantage individuals became so rich to the extent that they now effectively run the country through the courts. The champions of the think and act entrepreneurial South Africa must be ordinary entrepreneurs from all walks of life. They must purpose to leave a legacy of well-being where the lives of all ordinary people are respected. As a commitment to hope, SA citizens must ensure that economic prosperity for all become a reality. We all can deliver a better life if we embrace entrepreneurship the seedbed for innovation and economic prosperity. “Time has been lost. We have wasted opportunities and face additional challenges, making the task ahead more difficult. It is now our responsibility to make up lost ground – and to put all countries, together, firmly on track towards a more prosperous, sustainable and equitable world, Ban Ki-moon Secretary-General, 2008 UN Report, United Nations When everything is said and done, the future of entrepreneurship in SA must be in the hands of visionary people that are dedicated to the growth of the country. The days of exclusive gatherings for government officials are over, we are facing serious damages because of past behaviors, we were failed by many government departments and service delivery to the majority remains elusive despite the plenty of resources this country possess. The new small business trajectory needs honest independent thinkers, doers and believers that must think entrepreneurial in a very competitive global economy. The computer mouse of techno savvy entrepreneurs at Google is a hundred times mightier than the killing machines of the American Army. The birth of the Information Technology era has been embraced by thousands of young entrepreneurs in Europe, America, India and China which in turn has changed the way business is being transacted worldwide. Digital technology has become the irresistible companion for billions of people across the globe in the process fueling the ambitions of ordinary young innovative thinkers, without any political connections. All over the world the young and the old hero worship founder of Microsoft Mr. Bill Gates and the founders of Google, Larry Page and Sergio Brin. “Providing Internet connectivity to the developing world will help realize goals for health, education, employment and poverty reduction. By the end of 2006, 1.2 billion people were connected to the Internet – just over 18 per cent of the world’s population. But the digital divide is still wide.” United Nations Report 2008 We seem to do business with our eyes on the here and now oblivious to the future and the impact of fast and furious changes in the global economy. A typical example is found in South Africa’s Paragons of Liberation. The fact that they are caught with their hands in the cookie jar attests to the impression that our leaders follow a self-scented agenda, which will ultimately produce destruction. Future trends seem not to be a part of our here and now business reasoning thus we always seem to play catch up. SA leaders concern themselves with the short term, fixing tomorrow. In fact, very few of those entrusted to lead the people think into the long term sustainability of the country. We need premeditated business development policies that define the engine of the African Economy. Entrepreneurship or Small Medium Enterprises which are Seedbeds for Innovation must be privy to the South African Economic Renaissance. A one size fits all methodology will never work. We have to contour our business model to the need of individual concepts. As soon as the notion of change is first mooted many obstacles and counter ideas are pushed forward to stop progressive strategy to be implemented. People hate the concept of change. Change is the only constant, if we are going to emerge as a prosperous nation. Anthony Phillip Williams Editor: SMME XCLUSIVE MAGAZINE 27th September 2013
Posted on: Fri, 27 Sep 2013 15:31:40 +0000
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