28th November 2022
Sello Motseta
According to the World Bank, SME’s account for majority of businesses worldwide and are important contributors to job creation and global economic development representing about 90% of businesses and more than 50% of employment worldwide.
Formal SME’s contribute up to 40% of national income (GDP) in emerging economies
The Government of Botswana has therefore identified Entrepreneurship and SMME development as a key strategy in responding to main national economic issues hence the establishment of a new Ministry of Entrepreneurship officials revealed Monday.
“Amidst rapid technological advances characterised by unending digital inventions, human interactions remain fundamental in knowledge exchange. Using the words of an American author that specializes in analytics, business process innovation, knowledge management, and artificial intelligence- Thomas H. Davenport, “Successful knowledge transfer involves neither computers nor documents, but rather interactions between people,” said Karabo Gare, Minister of Entrepreneurship during the Local Enterprise Authority(LEA) Entrepreneurship and SMME Development Symposium.
He said, “The public sector cannot create an additional significant number of jobs and it is up to the private sector to take up the opportunities created by the enabling environment facilitated by the Government of Botswana.”
Officials say the creation of a full Ministry of Entrepreneurship is a reliable testament of how the Government of Botswana sees entrepreneurship as a priority vehicle for contributing not just to employment creation, economic growth, social and political stability but also to innovativeness and competitiveness of the country including export led entrepreneurship development.
The Local Enterprise Authority was established by the Small Business Act (SBA) No. 16 of 2008 of the Laws of Botswana to carry out on behalf of the Government of Botswana, the mandate of entrepreneurship and enterprise development in Botswana.
The Authority’s key deliverables include among others; Promotion of citizen entrepreneurship; further diversification of the economy; Promotion of exports; Development of a competitive SMME community and Creation of sustainable employment opportunities.
Officials say that LEA as an SMME development agency, initiated the ongoing forum for interaction and accessing knowledge compiled by academia and other knowledge generators in entrepreneurship and SMME development.
The symposium is designed for collecting and assembling valuable information through a gathering of scholars, academics, researchers, and practitioners on the subject matter, where they present their work and discuss the latest developments within their field.
“It is also used widely to share insights on future policy development options and areas of research focus. Botswana has many institutions of higher learning with entrepreneurship, business and SMME development scholars, academics and researchers doing a lot of research work – generating new knowledge in the field of SMME development in Botswana and the region,” said Lydia Boakgomo-Nthakhwana, LEA Board chairperson.
She said, “This symposium thereby provides a platform for collating and harmonising this SMME knowledge base, from which programming of interventions and lobbying for SMMEs policies will be anchored.”
Profitable market opportunities increase the rate of SME creation and increase in total number of SMEs in the country, increases job creation and income per capita.
They also increase in wealthier people, increases consumption, which in turn opens up new market opportunities that will entice the creation of more SME. As SME’s increase, their knowledge of product or industry increases hence product and process innovation
Officials say there are critical keys to success including frequency of market driven idea generation, funding, marketing and a supportive regulatory environment.
Batswana entrepreneurs at the symposium have been encouraged to focus on domestic production capabilities and target high-value catalytic projects and services as game changers.
They have also been encouraged to position industry clusters to take advantage of growth potential (Industry Clusters For Growth) and provide a strong and enabling policy infrastructure, to spur on and accelerate Research and Development(RandD), investments, innovation, and commercialization.
Joel Duke Ramaphoi, Permanent Secretary for the Ministry of Enterprise, said “Entrepreneurship involves the nexus of two phenomena: the presence of enterprising individuals, and the presence of lucrative opportunities. It begins with mid-set. A mind-set that exposes opportunities and ignites ambition.”
He said, “Requires curiosity and creativity, willingness to experiment, and try new things. It also requires communication, collaboration and ability to solve real world problems.”
Ramaphoi revealed importance of entrepreneurship is that it creates jobs, furthers innovation, identifies solutions for problems or needs in society and helps develop leadership skills and innovative thinking.
