African countries must boost small businesses

Lazarus Sauti

Since Africa is a continent with the highest unemployment rate, finding productivity work is a matter of priority.

The continent’s new growth path should call for the creation of employment and this will have a major impact on the economies of African countries.

Accordingly, the continent should prioritise the brightest sector in terms of growth and job creation – small business sector.

The health of small businesses is increasingly important and crucial to Africa’s collective success as a continent.

But it is critical to note that creating jobs requires commitment from governments, entrepreneurs, business policy decision makers and practitioners in the enterprise development space.

This means practitioners in the enterprise space should interrogate what kinds of initiatives and programmes could bridge the gap between ‘forced’ survivalist business ownership and the inspired entrepreneurship that might actually create jobs.

Moreover, corporate support for enterprise development should include direct funding, monitoring or support as simple as favourable contract terms.

The enterprise development field should also spotlight on providing interventions with a poverty alleviation or skills development focus.

Measures targeted at eradicating poverty should therefore look different to those aimed at business development.

To effective boost small businesses, tertiary institutions in countries within and across Africa must serve the small and medium business sector.

They should prepare graduates adequately for work.

Sadly, in most – if not all – African countries, dialogue between tertiary institutions and small businesses is absent and this is seriously hampering the development of the continent.

Skills are what graduates need to effectively start small businesses and this is where tertiary institutions should close in.

In one South African publication, Suzanne Hattingh explained: “Qualifications are important in the formal employment sector, but they are not a prerequisite in for smaller (small businesses) employers, franchise and family businesses, non-governmental organisations and not-profit organisations, entrepreneurial ventures or the informal job market where employment opportunities are increasing.

“Here new applicants are asked: What skills do you have that we can use to provide services or produce goods?”

Given the pressing need the African continent has to improve education and to start boosting small businesses, the starting point should be to work collectively to develop a thriving economy and to help to grow small businesses that can create genuine job opportunities.

More dialogue is therefore needed between training institutions, governments and practitioners in the small and medium business sector.

Dialogue should also be encouraged by an increased interaction and placement of students into internship and work placement opportunities as part of their course or degree programme.

More so, graduates should be properly matched to businesses in ways that focus on small business needs.

Surely, the continent needs solutions that work for employed youths and young graduates and that address the gap between small businesses and graduate capabilities.

By creating opportunities that meet the real needs of respective countries, developing the practical skills of youths and young graduates and boosting small businesses, Africans can really get the continent working.