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‘Micro-businesses need scaling up’

image TO GROW: Southern African Research Foundation for Economic Development Regional Coordinator George Choongwa.

MICRO-businesses in the country need to employ a new strategy in order to grow more from what they are today.

MICRO-businesses in the country need to employ a new strategy in order to grow more from what they are today. 

This is according to the Southern African Research Foundation for Economic Development (SARFED) Regional Coordinator George Choongwa. 

“For entrepreneurial activity to translate into economic growth in Swaziland, we need to focus less on the ‘start’ and ‘small’ side of things and more on how those companies of all ages, sizes and sectors with regards to scalability,” he said.

 The country has used a lot of resources promoting business startups which have collapsed in a short space of time. 

“Swaziland has seen much resources being employed towards the promotion of business start-ups which unfortunately within two years collapsed,” he said.

factors

“One of the main factors to this negative trend had been that of poor scalability monitoring systems in place which has disadvantaged most of the SMEs in Swaziland from exploring their full potential, especially in the manufacturing sector since about 80% of the consumables in the country were imported from South Africa and other countries,” he added. 

However, government and other stakeholders would focus on the aspect of promoting scale ups as a both mitigation and sustainable approach to human capital development in the country.  

“The desire to promote scale ups is, however, relative to the identification of the high-growth firms that would bring about a multiplier effect through job creation, generation of taxes, and capital wealth,” he said. 

Historical perspectives on the growth pertains of micro-entrepreneurship in some successful regions indicates a positive case altogether. 

chocked

“Once the micro-businesses were scaled up, they would  become more resilient and robust to external forces which have chocked most of them in their early stages. 

This would then call for change in the business paradigm from start to scale up, and then start-up approach,  respectively,” he said. 

“One of the reasons that have always put the SMEs a risk factor is that of having poor track records that defined their respective levels of scalability,” he said.

promotion 

 Through the promotion of scale -up programmes and activities these firms would find their niche and be competitive enough so as to find better access to funding and other benefits. 

‘’Policy-makers and other stakeholders should therefore revise the approach of calling for the creation of new businesses and prioritise helping firms of all ages, sectors and sizes to grow to much more sustainable levels, making the Swaziland entrepreneurship ecosystem most desirable in the SADC- COMESA-EAC region,” he said. 

 

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