Network
involves a group of people who exchange information, experience and contacts
for professional, business or social purposes.
Shaw and Conway (2000) say that
networks are important during the establishment, development and growth of
small businesses. The network may include family members, or even friends, or
professionals. Networks are of growing importance to SME's in any economy.
Africans being notoriously social, networking becomes a vital tool for success
of SME's; it becomes like ‘an inborn trait’ or an opportunity that comes by
natural flow.
Networking involves distance. According to Tulus (2005) in an Indonesian
perspective, he observes that clustering plays an important role in the growth
of small businesses and governments should support it. Hence, close proximity
is crucial to enterprise. From the context of Kenya, small enterprises like
mitumba (selling of second hand cloths), we find the business clustered in one
place. This is aimed at creating a closely-knit network that ultimately
increases the inflow of customers.
According to SMEs Lecture Notes by Muteti (2005), forging linkages between
enterprises and foreign multinational corporations can hasten SME development
in developing countries like Kenya. Linkages can be classified as either
forward or backward. For instance, multinationals may forge forward linkages
with locals firms. One such linkage would be marketing outlets where
multinationals outsource the distribution of brand new products.
a well organised network makes even the customers create a good over view of the industry in cases where the network involves the clustering of businesses of he same kind.
Trust is something that is essential to SME's to enhance coexistence and growth of the individual firms in the industry and also in provision of services to the customers or the end users.
Thursday, 16 February 2012
an enabling enviroment
An
enabling environment is an opportunity that should be utilized by the micro and
small enterprises in Kenya. With changing governments, which come with promises
of a better tomorrow and definition of new business policies, reconstruction of
economy, improvement of infrastructures and security, small businesses are
expected do well.
The legal and economic framework in which enterprises operate is crucial to their performance. In the literature on enterprise development, it has been argued very forcefully that the legal framework of many countries serves as a barrier against enterprise. In many cases across Africa, the reduction of open hostility has been more important for smaller enterprises than any positive program of engagement from the state (King and McGrath 2002).
But what constitutes an enabling economic environment? In theory, structural adjustment and trade liberalizations were supposed to bring benefits to micro and small enterprises. However, there is evidence across Africa of both negative and positive impacts of these policies on SME development. It can perhaps be said as a generalization that those with better skills and knowledge, and located in strong market niches, have benefited. On the other hand, those faced with low barriers to entry have seen a saturation of markets and growing poverty (King and McGrath 2002).
According to Ngahu (2000), SMEs are obviously incapable of sourcing, evaluating, and adapting technologies effectively. The government policy should, therefore, aim to develop these capabilities in SMEs through supportive institutions. Policy can encourage the development of assistance programs to facilitate SMEs' access to resources, information, training, and technology. Further, policy should promote the development of technologies appropriate for SMEs. Although it is possible to develop policies designed to improve the circumstances of SMEs, it may be more feasible to support the development of technologies compatible with the SMEs' circumstances.
Policies, says Ngahu (2000), should aim to encourage and promote the development of local technologies. Emphasis should be on the promotion of the local tool industry to reduce reliance on imports. SMEs are said to face a "liability of smallness." Because of their size and resource limitations, they are unable to develop new technologies or to make vital changes in existing ones. Still, there is evidence that SMEs have the potential to initiate minor technological innovations to suit their circumstances. However, for SMEs to fully develop and use this potential, they need specific policy measures to ensure that technology services and infrastructure are provided. Further, research and development institutions that are publicly funded should be encouraged to target the technology needs of SMEs.
In line with the statements the goverment plays a key role in creating an enabling environment that suits best the SME,s in the industry especially with the business outsourcing as the new entry in the markets.
The SME's rely on the basic pillars that help move the business and in coexistence with the others this may include the
economical impact
business pull factors
Cash flow
Managerial tactics in decision and product assimilation into the market
The legal and economic framework in which enterprises operate is crucial to their performance. In the literature on enterprise development, it has been argued very forcefully that the legal framework of many countries serves as a barrier against enterprise. In many cases across Africa, the reduction of open hostility has been more important for smaller enterprises than any positive program of engagement from the state (King and McGrath 2002).
But what constitutes an enabling economic environment? In theory, structural adjustment and trade liberalizations were supposed to bring benefits to micro and small enterprises. However, there is evidence across Africa of both negative and positive impacts of these policies on SME development. It can perhaps be said as a generalization that those with better skills and knowledge, and located in strong market niches, have benefited. On the other hand, those faced with low barriers to entry have seen a saturation of markets and growing poverty (King and McGrath 2002).
According to Ngahu (2000), SMEs are obviously incapable of sourcing, evaluating, and adapting technologies effectively. The government policy should, therefore, aim to develop these capabilities in SMEs through supportive institutions. Policy can encourage the development of assistance programs to facilitate SMEs' access to resources, information, training, and technology. Further, policy should promote the development of technologies appropriate for SMEs. Although it is possible to develop policies designed to improve the circumstances of SMEs, it may be more feasible to support the development of technologies compatible with the SMEs' circumstances.
Policies, says Ngahu (2000), should aim to encourage and promote the development of local technologies. Emphasis should be on the promotion of the local tool industry to reduce reliance on imports. SMEs are said to face a "liability of smallness." Because of their size and resource limitations, they are unable to develop new technologies or to make vital changes in existing ones. Still, there is evidence that SMEs have the potential to initiate minor technological innovations to suit their circumstances. However, for SMEs to fully develop and use this potential, they need specific policy measures to ensure that technology services and infrastructure are provided. Further, research and development institutions that are publicly funded should be encouraged to target the technology needs of SMEs.
In line with the statements the goverment plays a key role in creating an enabling environment that suits best the SME,s in the industry especially with the business outsourcing as the new entry in the markets.
The SME's rely on the basic pillars that help move the business and in coexistence with the others this may include the
economical impact
business pull factors
Cash flow
Managerial tactics in decision and product assimilation into the market
diversification
Diversification inherently constitutes networking, reaching out in terms of services and products, or/and having variations.
A number of strategies may be employed. One such strategy is for a company to diversify its range of products. A firm may even become its own supply of its raw materials or services. Diversification may also include a firm moving into related new markets with new product. In the context of Kenya, small businesses like street trade where one sells firm produce like fruits harvested from one’s shamba (farm). Another example would be hotel, where one’s firm supplies foodstuffs.
A firm that produces a number of largely unrelated goods and services is said to be diversified. A diversified company might be offering services such as research, and at the same time selling computer accessories and printing. Diversification gives a company more financial security than it would have if it produced only one kind of product. Because a diversified company operates in various industries, it can usually offset declines in one industry with advances in another.
Diversification is therefore an opportunity for growing small businesses in Kenya, for it ensures stability and continuity.
diversification enhances the streamline activity of a person ability into the full potential regardless of whom the person i dealing with in situations of business transactions and incase of a shaky environment.
franchises
Franchising, according to Jim (2007)
refers to an arrangement whereby a party (franchisor), who has developed a way
of running a business system successfully, licenses to another the rights to
operate that system using either his/her trademark or name or/and other rights.
The rationale behind franchising lies in acquiring support in the area of
training, which includes building personnel, management and overall opening up
of new horizons in the market place.
In Kenyan perspective, the business environment (though not all that conducive due to heavy cost of investment and production, partly because of heavy taxation and energy issues) has enabled a number of macro and micro enterprises to rise. More and more micro-enterprises are seeking support from the macro ones more than ever before. This has partly facilitated to their rapid growth.
Micro and small enterprises have potentiality of boosting a country’s economy. Although they are faced by many challenges, they still have opportunities to grow. These include linkage with multinational companies, networks with other businesses, diversification of market and products, enabling environment and franchising opportunities. Such opportunities, if well utilized by the micro and small enterprises can turn round their future in many developing countries.
In Kenyan perspective, the business environment (though not all that conducive due to heavy cost of investment and production, partly because of heavy taxation and energy issues) has enabled a number of macro and micro enterprises to rise. More and more micro-enterprises are seeking support from the macro ones more than ever before. This has partly facilitated to their rapid growth.
Micro and small enterprises have potentiality of boosting a country’s economy. Although they are faced by many challenges, they still have opportunities to grow. These include linkage with multinational companies, networks with other businesses, diversification of market and products, enabling environment and franchising opportunities. Such opportunities, if well utilized by the micro and small enterprises can turn round their future in many developing countries.
Monday, 13 February 2012
functions
- network cost containment
- legacy systems replacement
- voice data integration
- technologies supporting wireless connections
- quality of service/reliability
- staff skills
- network security
- network coverage
- back u/ continuity solutions
- optimization
- establishing VPN connections
- network upgrades
- network cost containment
- legacy systems replacement
- voice data integration
- technologies supporting wireless connections
- quality of service/reliability
- staff skills
- network security
- network coverage
- back u/ continuity solutions
- optimization
- establishing VPN connections
- network upgrades
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