Financial and Non-financial Institutions and Small Business Development: The Botswana Experience

  • CR Sathyamoorthi


Small, micro and medium sized enterprises play an important role in the economic development of Botswana. It is a proven fact that job creation is one of the important contributions of small business in Botswana. SMMEs account for almost 50% of formal employment.
The two important ingredients for business development are finance and skill. Small business enterprises in most countries suffer from financial constraints and lack of entrepreneurial skill. There has been a crucial lack of business start-up training in Botswana, which has led to small business failures. The study covered fifty selected small businesses in Gaborone who received financial and training assistance from major financial and non-financial institutions. The objective of the study was to identify the financial and non financial institutions that exist to assist SMMEs in Botswana and also to determine the role played by these institutions in generating business interest among Botswana and also entrepreneurs. The study also looked at the level of awareness among entrepreneurs about the types of assistance offered by these institutions.
The study revealed that although of late, SMMEs are receiving financial and training assistance from recognized institutions in Botswana, there is still room for improvement. Lack of knowledge about the existence of financial and training institutions in the country has also contributed to the poor performance of these business enterprises.
African Journal of Finance and Management Vol.12(2) 2004: 61-71

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eISSN: 0856-6372