| Every workday must be a Workers Day |
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| Written by Daniel Steinmann | ||||
Page 2 of 2 I am mentioning these to argue how
important it is that we must put even more focus into developing the
so-called SME sector.Now I realise there is some confusion about the definition of an SME in our setting. Some planners try to make the consensual definition more inclusive by talking of micro enterprises where the small business literally consists of only one man. Perhaps for us to make the implementation of our policies clearer, we should focus on businesses in the SME sector employing between one and ten people. This should immediately indicate that a large portion of typical Namibian SMEs would exist for self-employment. This is most often the case with artisans and technicians and where people work in a cyclical industry like tourism. Still, I believe that in an organically growing economy, small businesses will eventually become the mainstay of large-scale employment. People employing themselves invariable need assistance, and depending on the ability of the owner, many of these micro enterprises turn into more than just a one-man show. This is not to say that we do not need investment in big business, - of course we do. As examples we have the big mines. These companies are usually substantial employers but in many instances, since the mines are often so isolated, their suppliers consist of other companies that cannot be covered by our SME definition. Yet, recently I became aware of a Walvis Bay company that has not only brought a new capability to Namibia, but has also generated employment far bigger than just its own immediate circle. Namdock operates the floating dock in Walvis Bay. It is a joint venture company between NamPort and private marine engineering firms. By itself it employs less than 300 people directly, but by being dependant on the input of around fifty smaller suppliers, Namdock creates far more work than what is visible. I think that is the way to go if we want workable policies for employment creation. Very similar to what happened in California with the personal computer revolution. But for that we need pro-growth policies, - clear ones. f I say what a hassle it is for a manufacturing company to register as a manufacturer with the Ministry of Trade & Industry, to become eligible for certain tax rebates, then one realises our pro-growth policies are not nearly as clear as our pro-poor policies. And yes, while it is important that we do have the latter, and that they are implemented, it is equally important that we also have the former, and that’s what is printed on paper in terms of tax benefits, actually becomes reality for those bigger companies. That way our policies help to sustain and grow the nucleus, pulling up with it all the smaller employers. |
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