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Factors affecting the growth of micro and small manufacturing enterprises in Botswana

Thesis (MBA)--Stellenbosch University, 2005. / ENGLISH ABSTRACT: Micro and small manufacturing enterprises are linked to the reduction of poverty,
unemployment, economic revamping and diversification of economic activities that add
value. Previously, government policies totally excluded MSEs, in favour of large
industries, which for now, in most countries have not been able to meet economic
objectives. Realising the contribution advanced by MSEs, countries have come up with
attempts to have well-established small industry sectors. Governments in different
countries have started to develop strategies and modalities to develop, strengthen, and
sustain the sector.
In general terms the MSE manufacturing sector is characterised by a number of
constraints, for example lack of capital, lowly educated entrepreneurs, non-availability of
skills, and technological know-how. As such countries are faced with a daunting task of
addressing these constraints to promote the MSE sector. The Botswana government,
like other countries, has had policies and initiatives since 1982 to support the sector.
This is due to the fact that the country embraces the fact that the sector can be a
solution to the growing unemployment and economic diversification, which are the
country's long-term objectives.
Developing MSEs requires having a more proactive strategy and an enabling
environment for the prosperity of the sector despite a number of hurdles associated with
their development. All countries have institutions to support their MSEs by advancing
financial and non-financial initiatives, embedded in MSE pOlicies or the general industrial
policy_ What is important is that any initiative undertaken should be collaborated with the
rest of the existing economic system to have a holistic institutional discipline, with the
aim of achieving the desired economic objectives. Countries continuously re-shape and
re-design their strategies to suit the changing economic environment. It is clear that
there is no one and for all strategy universally available to address constraints
associated with the MSE manufacturing sector for different countries. Individual
countries have got to design their strategies in accordance with their existing economic
environment, expected benefits from the sector, and objectives.
It is therefore not surprising that the government of Botswana, after several attempts to
solely support the MSE manufacturing sector, financially and non- financially for more
than twenty years, now acknowledges that it has to collaborate with the private and
parastatal organisations to have an effective and efficient support system in place. The
government has previously experienced a number of setbacks when solely promoting
the sector. In most cases the country's manufacturing MSEs had very short life spans.
This resulted in loss of jobs and far much less than expected contribution to the overall
economy. The study also highlights strategies that the government of Botswana can
consider to avoid having an exodus of MSEs that are not sustainable. / AFRIKAANSE OPSOMMING: Mikro en klein ondernemings (MKOs) in die vervaardigingsektor word deesdae in
verband gebring met die vermindering van armoede, werkloosheid, ekonomiese
vernuwing en die diversifikasie van ekonomiese aktiwiteite wat waarde toevoeg. In die
verlede het regeringsbeleid MKOs heeltemal uitgesluit ten gunste van groot
ondernemings wat tot nou toe nog nie in staat was om in die meeste lande ekonomiese
doelwitte te bereik nie. Lande het egter mettertyd besef watter bydrae MKOs kan lewer
en het pogings aangewend om gesonde kleinsakesektore te vestig. Regerings in
verskillende lande het begin om strategiee en modaliteite te ontwikkel om hierdie sektor
te ontwikkel, te versterk en in stand te hou.
Die MKO-vervaardigingsektor word oor die algemeen gekenmerk deur 'n aantal
beperkinge, byvoorbeeld gebrek aan kapitaal, swak opgeleide entrepreneurs, gebrek
aan vaardighede en tegnologiese kennis. Hierdie lande staar die taak in die gesig om
aandag aan hierdie beperkinge te skenk ten einde die MKO-sektor te bevorder. Die
regering van Botswana, soos ook in ander lande, het sedert 1982 beleid en inisiatiewe
ontwikkel om hierdie sektor te bevorder. Dit kan toegeskryf word aan die feit dat hierdie
land erken dat die MKO-sektor die oplossing kan bied vir groeiende werkloosheid en
ekonomiese diversifikasie wat deel uitmaak van die land se langtermyndoelwitte.
'n Meer proaktiewe strategie en 'n bemagtigende omgewing is nodig om MKOs te
ontwikkel vir die welvaart van die sektor, ten spyte van 'n aantal struikelblokke wat met
hul ontwikkeling verband hou. Die meeste lande het instellings om hul MKO's te
ondersteun deur die aanmoediging van finansiele en nie-finansiele inisiatiewe, vasgelê
in MKO-beleid of die algemene nywerheidsbeleid. Wat van belang is, is dat enige
inisiatief wat onderneem word, in samewerking met die res van die ekonomiese sektor
gedoen word ten einde 'n holisties-institusionele dissipline te ontwikkel sodat die
verlangde ekonomiese doelwitte bereik kan word. Lande pas gedurig hul strategiee aan
en herontwerp dit om by die veranderende ekonomiese omgewing aan te pas. Dit is
duidelik dat daar nie 'n universele strategie bestaan om die beperkinge aan te pak wat
met die MKO-vervaardigingsektor in verskillende lande verband hou nie. Individuele
lande moet hul strategiee ontwerp ooreenkomstig hul bestaande ekonomiese
omgewing, die verwagte voordele van die sektor, en hul doelstellings.
Dit is dus nie verrassend dat die regering van Botswana, na verskeie pogings oor 'n
tydperk van meer as twintig jaar om op hul eie die MKO-vervaardigingsektor finansieel
en niefinansieel te ondersteun, nou erken dat hulle met privaat en
semistaatsorganisasies moet saamwerk om 'n doeltreffende en doelmatige
ondersteuningstelsel daar te stel. Die regering het voorheen 'n paar terugslae beleef toe
hulle die sektor op hul eie wou ondersteun. In die meeste gevalle was die lewensduur
van die land se MKOs in die vervaardigingsektor van korte duur. Dit het gelei tot
werksverlies en geen of min bydrae tot die algehele ekonomie. Hierdie studie
beklemtoon ook die strategiee wat die regering van Botswana kan oorweeg ten einde 'n
uittog van MKOs wat nie volhoubaar is nie, te verhoed.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/50353
Date12 1900
CreatorsMoaisi, Dulu
ContributorsRoux, A., Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business.
PublisherStellenbosch : Stellenbosch University
Source SetsSouth African National ETD Portal
Languageen_ZA
Detected LanguageUnknown
TypeThesis
Format106 p.
RightsStellenbosch University

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