With the increase of entrepreneurs in the world, people are looking to tap into any country that can turn their dreams into reality. Africa being a growing continent with resourceful possessions, small business enterprises are starting to be created in such areas. This report will assess the role small enterprises plays in a specific economy such as Africa. It also looks to critically analyse and identify specific national barriers to enterprise creation. But first, the report will evaluate a continent’s enterprise stock profile by providing background information on it, and then it will identify some critical issues and problem surrounding new small enterprise creation and then conclude with some opportunities for growth and profitability
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Basic infrastructure such as roads, power supplies, and transportation facilities are in bad conditions in most African countries. Due to these issues, entrepreneurs are being faced with high production costs making their products less competitive. Additionally, “access to information is considered an indispensable condition for widespread socio-economic development in this age of globalization and information economy (Cogburn and Adeya, 2000). But with African economy, there is a low usage of Internet, inadequate broadcasting facilities, computing infrastructure and low telecommunication penetration. The graph below [Figure 2] shows that “Internet is assisting SMEs with top-line growth through marketing and sales, as well as bottom-line operational improvements through increased efficiency in information management” (Kaplan, …show more content…
If the government can put effort into providing education and training support to entrepreneurs, it will help establish a good underpinning for small business growth. With all the problems stated earlier in the report such as creating a linkage between SMEs and larger companies, will augment learning for local entrepreneurs and create chances of having competent entrepreneurs and economical growth because large companies attract large buyers, which are important drivers of technological innovation in the global value chains (Kula et. al, 2006). This will allow SMEs in Africa to meet international product and process
Basic infrastructure such as roads, power supplies, and transportation facilities are in bad conditions in most African countries. Due to these issues, entrepreneurs are being faced with high production costs making their products less competitive. Additionally, “access to information is considered an indispensable condition for widespread socio-economic development in this age of globalization and information economy (Cogburn and Adeya, 2000). But with African economy, there is a low usage of Internet, inadequate broadcasting facilities, computing infrastructure and low telecommunication penetration. The graph below [Figure 2] shows that “Internet is assisting SMEs with top-line growth through marketing and sales, as well as bottom-line operational improvements through increased efficiency in information management” (Kaplan, …show more content…
If the government can put effort into providing education and training support to entrepreneurs, it will help establish a good underpinning for small business growth. With all the problems stated earlier in the report such as creating a linkage between SMEs and larger companies, will augment learning for local entrepreneurs and create chances of having competent entrepreneurs and economical growth because large companies attract large buyers, which are important drivers of technological innovation in the global value chains (Kula et. al, 2006). This will allow SMEs in Africa to meet international product and process