Background
From going around the membership, and from general market observations, it is becoming increasingly clear that the liquidity challenge has gone from bad to worse. This fact has just been confirmed by a revelation that total bank deposits have fallen from $4.2 billion to $3.7 billion. As a result, markets have dried up, and most SMEs are struggling to sell their products/services. Yet at the same time, foreign businesses are having a field day taking advantage of our markets, and crowding our own businesses out.
We also have a lot of our own business (Government and Local Authority tenders being a prime example) being parceled out to foreign companies, mostly because our local companies are failing to come together to form big-enough consortia to be able to take up such work. We also do not have an organised-enough lobby to be able to ensure that quotas such as the 25% allocation that should be reserved for SMEs by the State Procurement Board is actually reserved. As SMEs, several of us are also being squeezed by some of the large corporations, who flagrantly violate payment terms, and insinuate that if you protest you will be taken out of their supplier list.
Most importantly, though we are missing out on a lot of opportunities simply because each one is focussed on their own individual business, rather than each one of us looking for opportunities for each other. In a lot of cases, this is not because of selfishness, but rather because we each do not know what the others are doing, and how well they perform.
As your secretariat, we now also have so many members and so many interests needing representation that we cannot possibly handle them on our own. In fact, even if we could, it would not be ideal, as the purpose behind an Association is to parcel out ownership and responsibility, thereby making the Association stronger through having a diverse participation. We have often pointed out that currently, we are overwhelmed by the sheer magnitude of tasks that need to be carried out.
It is with this in mind that we have come up with the idea of forming the Power Networking & Practical Action Groups (PNPAGs).
What are these?
The Power Networking and Practical Action Groups are groupings of small and medium sized enterprises, as well as affiliate members, that will be formed along common business and interest lines. Their mission will be two things, as stated by the naming: creating value-adding networking opportunities, and spearheading pro-active action programs aimed at advancing the group members' business interests.
Power Networking
It is common knowledge that word of mouth referrals are the most effective form of marketing there is, but in order for it to work even better, one must have a deep knowledge and trust of the person they are referring. This aspect can only come about through repeated contact and discussion, and an intimate understanding of each other's business. This will be the first aim of the groups, and this will be achieved through each member giving a three-minute talk (elevator pitch) about their business at the group meetings.
Each member will talk about three things:
- Their business
- Issues they would like assistance and advice from other members
- Ideas to expand other members and/or the association
Apart from the exchange of business, exchange of ideas is a powerful tool which can actually be worth far more than getting a transaction. As they say, "give a man a fish, feed him for a day. Teach him how to fish, feed him for a lifetime.
A problem that may seem insurmountable for you, someone else has met and solved. Getting different views from other entrepreneurs can also give you new perspectives into how to solve problems, or do your business better.
Where the "power" aspect comes in is that the group will then discuss further on ideas to advance their common interests, markets and to increase efficiency within their businesses. Rather than passively wait for business to come to us, we want to actively generate and pursue ideas that create greater opportunities. For example, the local markets have gone dead because of the pending elections. Had we diversified our businesses and pursued regional markets, activity would still be humming as Mozambique, Zambia, Malawi, e.t.c are not facing the same predicament.
Note that we will still retain our month-end networking event, at which members will be able to interact with those from other groups.
Practical Action
Business opportunities identified either by us as the secretariat, or by members of the groups will be discussed at the meetings. While there may be individual referrals passed between members, we are more interested in securing larger contracts and jobs that will involve several members coming together, as well as in creating business linkages across common value chains. There are also other issues such as bulk purchasing of inputs, especially imported ones, to cut down on the cost per member.
Of late, we have been actively pursuing the issue of exporting, especially into the region, and again, this is far much more effectively done under the group setting, than as individuals. These groupings will also enable us to negotiate better facilities from banks, particularly if we are all looking to service one order. We already have links into the COMESA region, and we can extend to other regional groupings such as SADC if the numbers warrant it.
We currently have been invited to participate in a COMESA event that has great potential to boost SMEs. Our groups can discuss and come up with a participation strategy. The Harare Agric Show is coming up shortly, and so are several other events and fora at which we can pursue strong business expansion leads. Groups can map strategies to ensure we derive maximum benefit. Groups can also spearhead business linkages initiatives more effectively than we can at secretariat level.
Groups will also be able to discuss issues for lobbying, such as the tenders issue mentioned above. Each group will have a leadership structure (detailed below) that will then take up issues discussed, and engage the secretariat where necessary.
Group Structure
Each group will have a Chairperson, Vice Chairperson and a Secretary. These three people shall all be paid-up members of the Association and shall be elected by the group members once we have properly established the groups. They will be either small or medium enterprises, while affiliates shall also be taken on board in an advisory capacity (as Secretary) where necessary. There will also be a member of the secretariat present who will take minutes and bring back any issues to be handled by the secretariat to the office.
Groups will be structured by the secretariat in consultation with individual members. Group allocation shall take into consideration the particular industry that a member is in, and match them to the group most likely to generate business for them, as well as serve their interests. The groups shall be formed around our paid-up members, and interested non-paid up members will then be added to these structures.
We shall have core groups consisting of manufacturing, productive and value-adding entities, and then secondary groups consisting of service industry and/or retail sector businesses. The core groups shall form a nucleus, and then members within the services industry shall be rotated around these core groups.
Core groups shall meet once every fortnight, or if deemed necessary shall meet once every week. Secondary groups shall meet once a month, or once a fortnight where necessary.
Once a month, there shall also be a meeting of the leadership of the groups, to ensure that we consolidate all our activities, and identify and represent issues that affect us generally as SMEs.
Attendance at meetings
Everyone registered in the business directory shall be free to attend group meetings. Every person wishing to attend must first inform the secretariat (Trymore - 0773 304187 or
Participation in contracts, deals sourced
First priority to participate in contracts and jobs sourced by the groups shall be given to paid-up members. Non paid-up members shall have second preference, and shall also incur extra charges as a result of not being paid-up members.
First Meeting
To kick-start the process, we shall have an initial meeting of all those who are interested in participating in the PNPAGs next week, so that we can explain the process, and iron out any issues that may need clarification. Details of this meeting are:
Date: Wednesday 19 June 2013
Time: 07:30 for 08:00 a.m.
Venue: Zimcafe, Corner Sam Nujoma / Fife Avenue
Breakfast charge: $6 per person
Please note that the breakfast charge needs to be paid in advance for Zimcafe to work with accurate numbers. You can either come to pay at our office, or you can deposit directly into our bank account (bank details available on request). To avoid inconvenience, you can also prepay for several breakfasts in advance.
For payment details, please contact Emeka on 0772 901080 or
Subsequent Meetings
The frequency and location for subsequent meetings will be discussed and agreed upon at this first meeting. Different groups may opt to host their meetings at different locations depending on where the group members are mostly concentrated.
Conclusion
It is an undisputed fact that there is power in numbers, and it has been said that if you continue to do the same thing, you will continue to get the same result. A group of twenty entrepreneurs collaborating will achieve far more than any single organisation, large or small. We can also collectively achieve more in terms of changing our operating environment and getting into the region.
We hope to receive your registration soon!
Thanks and regards
SMEAZ Team