PROMOTING ENTERPRISE AND PRIVATE SECTOR DEVELOPMENT
Many developing countries, especially in Africa, have grown up on an aid culture, but increasingly it is being recognised that
what is needed is support for these countries to develop their own answers to their own problems. A major element of this is the
creation of a strong enterprise culture and a sustainable private sector.
Increasingly governments and donors are recognising their role in private sector development, especially through the introduction
of efficient infrastructure, supportive legislation and tax regimes, as well as incentives for local and overseas investment.
In addition there has been increasing support for new entrepreneurs and micro industries, although many hurdles have still to be
overcome, including convincing the non-official business sector to make the jump into the official economy. Whilst this will mean
that they then have to pay taxes and contribute more fully to society, they will also benefit from being able to access wider
markets and attract much needed investment.
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It is therefore essential that countries should support the development of growth SMEs (Small and Medium sized Enterprises),
a sector which can not only make a major contribution to the economic success of the country, but also provide an example for micro
and non-official businesses to grow and prosper. SMEs the world over are the mainstays of most economies, providing wide ranging,
sustainable, employment and income generation. An example is the UK where between 1995 and 1999 small firms created more than double
the number of jobs of large firms (Federation for Small Businesses report). These statistics are now being replicated in Asia and
other emerging markets.
However, the SME sector needs specific support if it is to develop. Governments need to recognise that business regulations,
employment laws, taxes and incentives, which may meet the needs of larger businesses, are not necessarily conducive to the growth of SMEs.
Likewise, SMEs need specific help with business development, training and the identification of appropriate financing initiatives.
Entrepreneurs may be the driving force in establishing an enterprise, but they often need help and guidance if they are to successfully
grow their business.
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