The Influence of Policy on Rural SME Development in Swaziland

Abstract

This research report explores the fate of rural entrepreneurs in the Lubombo region of Swaziland, particularly their failure to take advantage of the incentives provided in the National Policy for SMEs (2002). The qualitative research approach was utilized and data was collected through interviews, observation and existing literature on the subject. In my view the data collected through interviews indicates that the entrepreneurs of the Lubombo region are not taking advantage of the incentives provided in the National Policy for SMEs (2002) because of the following: Small business owners in the region do not know of the National Policy; Availability of National Policy in one official language which is English whereas the majority of entrepreneurs in the Lubombo region are more comfortable conversing and reading in Siswati; No tangible benefits from the implementation of the National Policy; Expensive business registration; Red-tape and nepotism in government; Lack of business skills and the need for an Agricultural Bank. Therefore on the basis of the above findings the following recommendations are offered to the Swaziland government: Policy consultations in the Lubombo region; Translation of the National Policy on SMEs to Siswati; Review of business registration costs; Evaluation of Government Funds; Targeted SME development strategies; Segmentation of SME sector; Coordination of government efforts aimed at SME development; Capacitate SEDCO and accredit business service providers and finally strengthen macro-economy.