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AN INVESTIGATION INTO THE PROPENSITY OF SMES TO CREATE EMPLOYMENT IN BOTSWANA

Rodreck Chirau

Abstract


An exploratory study on the propensity of SMEs in Francistown to create employment was done. Francistown is the second largest city in Botswana. In this study financial sector of the economy was targeted. The sector was divided into Micro-lending, Insurance brokerage, Money transfer agencies and Bureau de change. A survey was conducted and the questionnaire addressed general information, Entrepreneur characteristics, Managerial skills, Industry Specific Factors, External Macro-environmental Factors, Enterprise, and Employment levels. This questionnaire was administered to a sample of 170 owners/managers of SMEs in the financial industry. There was a response of 60 respondents making a 35% response rate. It was found that SMEs in the financial sector have little propensity to create jobs. This is despite the fact that the government of Botswana has created the enabling environment for the growth of SMEs. It was concluded that the government must design a separate entrepreneurship policy from an SME policy so that it gets the best from the two complimenting entities.


Keywords


SMEs, Propensity to create employment, Botswana, Francistown, Small Micro and Medium Enterprises, Economic growth.

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