Innovation the key to survival for SMEs

SMALL and medium enterprises (SMEs) should embrace innovation if they want to survive in today’s harsh global business environment, a Cabinet Minister has said.

Bernhardt Esau, the Deputy Minister of Trade and Industry, was speaking at the launch of the Sam Nujoma Innovative Entrepreneurs Awards at Tsumeb. In business, competition was the name of the game, he said, and only the innovative and the competitive survived.”In today’s fast-changing business environment, innovation is a must for any business wishing to grow and survive the global cut-throat competition.Small businesses are no exception.”Innovation will not only ensure SMEs’ survival but will also provide them with a competitive advantage.This is so because innovation provides entrepreneurs with opportunities to supply the market with new services, products and technologies,” he said.The Deputy Minister said Government was fighting hard to create an enabling environment for businesses to develop and flourish.But despite Government efforts to spearhead economic growth and national development, Esau said there were major obstacles to SME development.These included a serious lack of entrepreneurial and managerial skills, as well as limited access to public tenders, markets and financing.He said Government had signed agreements with countries such as India, Malaysia and China to facilitate training for emerging entrepreneurs.”Under such agreements, SMEs operators can be trained in specific areas subject to certain requirements.Training could thus be offered in such areas as textiles, handicrafts manufacturing and construction,” Esau said.Government was also working on changing the tender system for public projects to incorporate SMEs.Areas of co-operation between Government institutions and the small business sector could include outsourcing non-core functions, making use of local suppliers and setting aside specific tenders for SMEs.The Sam Nujoma Innovative Entrepreneurs Awards, to be presented in November, will reward and recognise innovation within the SME sector.In business, competition was the name of the game, he said, and only the innovative and the competitive survived.”In today’s fast-changing business environment, innovation is a must for any business wishing to grow and survive the global cut-throat competition.Small businesses are no exception.”Innovation will not only ensure SMEs’ survival but will also provide them with a competitive advantage.This is so because innovation provides entrepreneurs with opportunities to supply the market with new services, products and technologies,” he said.The Deputy Minister said Government was fighting hard to create an enabling environment for businesses to develop and flourish.But despite Government efforts to spearhead economic growth and national development, Esau said there were major obstacles to SME development.These included a serious lack of entrepreneurial and managerial skills, as well as limited access to public tenders, markets and financing.He said Government had signed agreements with countries such as India, Malaysia and China to facilitate training for emerging entrepreneurs.”Under such agreements, SMEs operators can be trained in specific areas subject to certain requirements.Training could thus be offered in such areas as textiles, handicrafts manufacturing and construction,” Esau said.Government was also working on changing the tender system for public projects to incorporate SMEs.Areas of co-operation between Government institutions and the small business sector could include outsourcing non-core functions, making use of local suppliers and setting aside specific tenders for SMEs.The Sam Nujoma Innovative Entrepreneurs Awards, to be presented in November, will reward and recognise innovation within the SME sector.