Importance of Capacity for Start-Ups and SMEs



In spite of the numerous efforts and programmes for SME Growth over the years, there has not been significant improvement of the sector for lack of a strategic outlook to those development and growth choices i.e. Capacity. An important element is capacity of SMEs for strategic growth. SMEs currently lack the required capacity to operate as productive, profitable and sustainable businesses. Capacity is about Competence, aptitude, proficiency, know-how, expertise and abilities that enable one to undertake what it should do in order to achieve set results. Capacity therefore brings performance and results. Capacity has certain elements and factors which characterise or indicate it. Capacity is a factor of Knowledge, Entrepreneurial Calibre, Skill, Technology, Innovation and Finance. These capacity factors are necessary for growth either from micro to small to medium then to large. Strategic growth capacity factors need to be transferred to SMEs if they will survive and grow into productive, profitable and sustainable businesses. A key Factor for capacity of SMEs which justifies a project on Start-Up and SMEs Centre (SSC) business Model is Capacity Transfer. Capacity Transfer therefore is the transfer of the Competence, aptitude, proficiency, know-how, expertise and abilities of one entity to another so that the receiving entity can also undertake what it should do to perform in order to achieve set results. This overarching need for Capacity Transfer in the Start-Ups and SMEs sector provide a business case for the ABI/SSC Business Model. This is the ABI/SSC niche. It makes its productivity, profitability and sustainability through the provision and transfer of vitally needed capacity in the Start-ups and SMEs Sector. Usually we talk of technology transfer, but that is limiting because technology is only one of the capacity factors. Capacity transfer therefore is more encompassing and comprehensive. It is the transference of the capacity elements/factors of Knowledge, Entrepreneurial Calibre, Skill, Technology, Innovation, and Finance from the giving entity to the receiving entity. This is why ABI/SSC is in Business. But Business is done with a comprehensive outlook; not following narrow perspectives to profits which does not take, human, societal, and environmental and the future into consideration. This need to demonstrate this comprehensive business approach as required by local needs and all International standards applicable in local societies with Multistakeholder perspective is the justification of this project.

Needs of Farmers, Cooperatives, Start-Ups and SMEs

Farmers, Cooperatives, Start-Ups and SMEs face the challenge of setting up and developing their businesses into productive, profitable and sustainable businesses (Lester, David, 2014); therefore they need entrepreneurship and business development services. They lack capital and therefore need inclusive financial facilitation and intermediation to make investment capital accessible to them. The journey of growing to become a stable business to stand the test of time can be lonely without a lot of support along the way therefore they need business solidarity. It is for these reasons that Start-Up and SME Centres (SSC) provide Start-Ups and SMEs entrepreneurship and business development Services, Inclusive financial facilitation and intermediation and Business solidarity opportunities to make them productive, profitable and sustainable. This fits with SDGs such as Goal 8 on decent employment opportunities through development of entrepreneurship and SMEs.