SMEs: Research-based interventions critical

The planned launch of a comprehensive campaign to support the growth of Small and Medium Enterprises (SMEs) in the country is welcome news, in the sense that it is likely to unlock innovation and creativity. This is premised on the fact that, for every nation to grow, it needs to have firm and sound SMEs, going by the examples of various developed economies. What has transpired in Europe over the last decades, where statistics indicate that SMEs account for more than 90 percent of their economies, is an indication that developing this sector is not an option, but a necessity. SMEs have proven invaluable especially in providing jobs, thereby increasing the purchasing power, and consequently stimulating national growth. According to the Minister of Trade and Industry, a survey was conducted to establish specific problems facing entrepreneurs in specific parts of the country, so as to identify areas of intervention. This will have a bigger impact than using the ‘one-size-fits-all’ approach because various regions have particular challenges, and will, thus, need specific solutions. For instance, it is not entirely true that the problem is lack of access to loans; there is also an underlying problem of insufficient skills to sustain SMEs. Nonetheless, the plan to support these enterprises, based on the identified gaps, will go a long way in transforming the business sector. Ends

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SMEs: Research-based interventions critical