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Strategic promotion of SMEs offers best solution to youth unemployment
2005-05-11 08:57:10
By Editor
The type of unemployment that afflicts this country is not voluntary. The majority of boys and girls who complete primary, secondary and tertiary school levels of education are jobless not so because there exists categories of vacancies they dislike, but much so due to a solid void of any.
Conservative estimates put the growth rate of unemployment at 800,000 annually, a figure not including the unemployed lot who never get through the formal school systems, nor the retrenchees.
But the problem is steadily becoming a serious social headache, and judging by the look of things, it is most likely going to be a rallying point during the October general elections.
Bitter feelings, especially among youths who find the situation intolerable, developing sentiments of being a neglected lot, could be close to the truth because their hopes and aspirations have been consistently frustrated over the past decade.
Unfortunately, a number of choruses in the form of promises for lasting solutions have been put on record at political and civil society forums, but with little or no tangible results.
Some of the indicators that prove this problem is slowly gaining subtle dimensions is the rising rates of crime, drug abuse, stowaways, rape cases, prison congestion, armed robbery and petty theft in general.
In Japan, as well as among the South East Asian economic tigers, strategic development of Small and Medium Enterprises (SMEs) has been instrumental in ensuring job creation for the youths at a geometric rate, and sustained development at large.
As usual, the starting point is most tasking element in kick-starting SMEs, ensuring their growth and proper management.
It must all start with building a strong skills base for all youths who pass through school systems. Right now, a misguided dream seems to have engulfed both policy makers and practitioners just because an SME guarantee fund has been established.
Financial back-ups or guarantees may not sufficiently mount the necessary gear to push forward the SME wagon.
We need to revive trade schools where in addition to the common syllabus, bits of management and marketing were taught, as integral elements at all levels schooling, with a few practical sessions especially during holidays.
Time has come to stop thinking that SMEs are strictly non-farm economic activities. There are ample of ventures like animal husbandry at SMEs scale which equally need support, both training and financial.
The conception and development of SMEs is based on self -employment and management. That is why the element of entrepreneurship has to become an integral component during the hands-on training of SMEs’ stakeholders.
On the same tune, the Small Industries Development Organisation (SIDO) needs more technical and financial support with intent to increasing the quality of apprenticeships.
In the same mood, the Vocational Education and Training Authority (VETA) needs additional capacity to produce more trainees in the various fields of production, marketing and packaging which directly could benefit SMEs’ development.
Products produced by this sub-sector can intrinsically be up to the mark in terms of quality, but packaging could be a let down.
Survival in the waves of globalization entails unique branding and packaging that can mobilize goodwill over time, unrivaled by other similar products and services.
The fiscal instruments for discouraging exports of raw materials needs further consolidation to motivate entrepreneurs locate for instance, small scale food processing industries right in the country.
Once the appropriate skills base is available, investors won’t find it particularly difficult to get agro-processing done here, for it is often cheaper to deploy local labour rather than importing expatriates.
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