Lack of full market potential exploitation by SMMEs in Botswana

Abstract

The study sought to reveal the reasons behind a high proliferation of foreign Small, Medium and Micro Enterprises (SMMEs) in Botswana contrary to the Government’s effort to support the local industry. A simple random sampling technique was used to gather quantitative data, using structured questionnaires distributed to 30 respondents from six SMMEs in Gaborone, the capital of Botswana. Reference and acknowledgements were made to both previous print and electronic publication literature that contributed to the debate of lack of SMMEs exploitation of their market potential in Botswana. Statistical Package for Social Science (SPSS Version 22), was used to analyze the data which was then interpreted from pictorial presentations of tables, diagrams and graphs. The study showed that most problems affecting local SMMEs from fully exploiting their market potential are associated with failure to compete with international standards. Another factor that was discovered by the study showed an over-reliance of local SMMEs to concentrate on selling their produce to the Government through the Public Procurement and Asset Disposal Board, which sometimes lets them down due to the stringent regulatory measures that are needed. The research made recommendation to the SMMEs to lessen their overdependence on Government initiatives. It was also recommended for local SMMEs to leverage on business culture and skills transfer from their foreign counterparts.

Key terms: Market Potential Exploitation, SMMEs Challenges, Botswana.