By Ronald L. Parker, Randall Riopelle, William F. Steel
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Additional info for Small enterprises adjusting to liberalization in five African countries, Parts 63-271
Sample text
From 11 to 31 percent of entrepreneurs (primarily in the SSEs) had received some formal training, but there was little evidence that training (as distinct from education) systematically improved the performance of firms. The respondents did not view infrastructure as a major constraint, although they had relatively little access to reliable electricity, water, and transport. Nor did they view internal management as an important constraint. While they no doubt overestimated their abilities, the implication is that spontaneous demand for entrepreneurship or management training may be limited, unless it emphasizes financial management and marketing or leads to finance.
SSE owners were also more likely to have entered business in response to a market opportunity, whereas microentrepreneurs were more likely to have been motivated by ''push" factors such as family tradition and lack of other opportunities. Women tended to be concentrated in microenterprises in activities such as food processing, textiles, clothing, and soaps and cosmetics. The MSEs in the surveys generally showed an increase in employment following SAP reforms, even in firms whose production did not increase.
This finding reflects the fact that SSE owners, particularly those who started up after reforms, were more likely to have entered in response to a market opportunity, whereas microenterprise owners entered saturated markets because they did not have a better alternative (Chapter 5). Changing product lines helped make growing MSEs more likely than declining MSEs to purchase new equipmentpresumably to upgrade technology and introduce new products, since most were operating below full capacity. On the whole, competition appears to have stimulated rather than inhibited successful adaptation.