African SMEs’ Performance and Behaviors during COVID-19

10- Capacity Building

The impact that managerial competencies (specifcally owners’ education, prior and related experience) on the performance of African SMEs is key to their success. It is deplorable that many African SMEs fail and some struggle to survive. The critical resources for SMEs are mostly held by the individual entrepreneurs that are likely to be refected in their skills, competence, knowledge, experience and education. This being said, we inspect some public policy insights with these considerations. ● Initiate quality Capacity Building Programs and business simulations targeting African SMEs workers, owners and employees. ● Rely on agencies and NGOs for widespread circulated of Managerial trainings targeted at SMEs ● Subsidize training programs from accredited agencies and institutions that would be frm-specifc. ● Apply for donor funds aimed at increasing managerial competencies of SME owners. ● Create clusters and networks per sector of activity composed of business mentors who would follow up with startup owners until they reach maturity phase.

11- Corruption

SMEs sometimes lack an enabling business climate, which hinders their potential growth, and widespread corruption and bureaucracy in Africa are particularly impeding SMEs growth. African SMEs, every so often complain about the nature of the regulatory environment, due to the costly and timely procedures to obtain licenses and permits, cumbersome procedures in paying taxes, long procedures in clearing goods from the port, and the unwarranted demands from public ofcials. As a result, a high proportion of newly established startups are closed down during their frst years of establishment while others fail to get the permit or approval to commence operation, with only a small number growing up to large-scale enterprises.

For this purpose, policy makers should embrace several measures to combat corruption and remove obstacles on the way of SMEs.

● The cornerstone of fghting corruption is all about transparency. Governments should become transparent in disclosing their position in the Global Transparency Index as well as any measures and/or programs undertaken to combat corruption. ● The role played by governmental institutions for accelerating the difusion of electronic public procurement (e-PP) should be accelerated to defy the corruption . ● The impact of information technology innovations in combating corruption in small and medium enterprises in developing countries should also be pursued. Small businesses should encourage more ethical conduct by motivating employees to report corruption in their workplaces. However, many employees fear to report corruption due to weak whistleblowing protection policies. Policy makers should make available strong reliable and efective mechanisms for whistleblowing.


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