vendredi 28 février 2014

SME’S PROGRAM FINANCED BY DONORS : TREMENDOUS WASTE

The importance of enterprises, particularly those labelled as SMEs, to the economies of countries is well documented and debated. Most importantly, SMEs, when they are competitive, are the most effective and efficient mechanisms to distribute wealth in a country when they are internationally competitive. Thus, the competitiveness of the SME sector is not only vital for economic reasons but also is a rational requirement for political stability and economic sustainability.


The objective of building SME competitiveness is to replace SMEs that accept terms of trade with those who can dictate terms on the product, its price, quality and delivery to their buyers. Building an enterprise with bargaining power requires two inputs: Resources and capabilities to use resources effectively and efficiently. Resource provision to SMEs without building resource utilization capabilities (management) creates tremendous waste.
SME support programmes seek three objectives: a) to encourage new SME growth; b) to design and develop programmes to foster SME performance (competitiveness); and c) to deliver SME development programmes selectively. Most SME support programs (mostly financed by donors) are unsuccessful because they lack integrated systems where firstly needs are delineated from demand such that it is the needs that are addressed, and secondly where SMEs that are “worth” receiving assistance can be selected thus ensuring the most efficient allocation of resources.
To become competitive, enterprises need the following resources: 1) Human ressources &  Information and know how; 3) Physical asset and infrastructure; 4) Financial, Network and strategic alliance.
But before this, they need the competencies to design and implement strategies, to build marketing and production capabilities, to manage export transactions and to manage “e” applications.  Such a model should be based on an integrated and comprehensive paradigm that 1) all stakeholders (macro, meso, micro level institutions and individuals) can use as a common approach and language; 2) is objective (measurable); 3) is transparent; 4) can be explained on justifiable grounds; 5) can be applied with high speed and at a low cost; and 6) can be adapted to national realities. Such model exists; it is about series of capabilities that are imperative for designing any kind of programme to build competitiveness.
These are the capabilities to:
1.   Focus an enterprise to a market with a positioned product through clearly defining the business of the enterprise and by building viable strategies;
2.   Calculate the quantity and quality of resources needed to implement the strategy;
3.   Assess the competencies required for the implementation of these strategies.

The methodology coordinates itself. This auto-coordination ability of the System comes from its discrete nature. First the management is clearly separated from business. Thus, the work of those who build management competencies is clearly separated from the work of those who are to provide resources to the business. Second, business is described in terms of mutually exclusive and collectively exhaustive categories. Thus, resource providers can analyze exactly why the resources are needed in exclusive categories of business. However, all of these discrete components are integrated in a hierarchical system making auto-coordination systematic.

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