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| Title: | Entrepreneurship policy, enterprise diversification and the motivation factor: the case of Botswana |
| Authors: | Muranda, Zororo Mphela, Thuso Nyakudya, Morvyn |
| Year: | 2011 |
| Periodical: | Journal of Social Development in Africa (ISSN 1012-1080) |
| Volume: | 26 |
| Issue: | 1 |
| Pages: | 75-106 |
| Language: | English |
| Notes: | biblio. refs. |
| Geographic terms: | Botswana Southern Africa |
| Subjects: | small enterprises government policy motivation Economics, Commerce Entrepreneurship Diversification in industry Barriers to entry (Industrial organization) |
| Abstract: | This paper examines the relationship between SME policies, entrepreneurial motivation, and enterprise diversification in Botswana. The importance of small and medium enterprises (SME) has long been recognized by the government of Botswana, but despite various SME policies and programmes the development of the sector has been slow. On the basis of a survey of 226 enterprises covering ten economic sectors, the paper investigates the reasons for the limited motivation among entrepreneurs to start, develop and diversify SMEs. The results indicate that key policies such as the tender policy and the preferential purchasing policy, with clauses intended to assist SMEs, have not had a trickle-down effect. Entrepreneurs considered the demands of local authorities an impediment to enterprise start-up and enterprise diversification. The study recommends communicating policy right down to the bottom of the entrepreneurial pyramid and making it mandatory for private financial institutions to lend to SMEs. Bibliogr., sum. [ASC Leiden abstract] |
