The Malawian Small and Medium Enterprise (SME) landscape has undergone tremendous improvements lately. As compared to a time where production was minimal and in the hands of a few big corporations, the present day environment is sparkling. In October this year, the country’s central bank, the Reserve Bank of Malawi indicated an improvement in the private sector growth, SMEs inclusive to 10.9 percent after being in the negatives since 2012. Small businesses have been established in multiple segments like textiles, dairy, information technology, engineering, media…. the list is long. East to West, north to south, urban or rural, hilly or flat, in conflict or at peace…SMEs have flooded everywhere.
The goodness these businesses have brought is visible, clearly grasped with a naked eye.
SMEs have helped in increasing the production capacity of developing countries. By playing a vital role in a country’s in the country’s overall production networks, they are core to the economic growth of developing countries. To the consumers, issues to do with proximity and slightly price have been resolved. Furthermore, SMEs have created employment opportunities in the country like ours that has a high unemployment rate. All in all, a considerable number of people are earning a living off SMEs.
It has to be noted that despite all their positives, SMEs have as well brought problems of their own. It is safe to say the landscape demands an overhaul of some sort or it is heading to an eventual downfall.
Think about that local neighbourhood restaurant that provides good traditional food. They have that massive customer base considering the scarcity of local food in town. All of a sudden, they decide to trim quantity per plate to accommodate their ever-growing ‘audience’ and cut costs, for greater dividends. Furthermore, they decide to start putting low quality ingredients to the recipe, thinking they already control an established base. Wrong! in a nutshell, the establishment that used to command a very broad following deteriorates and consequently ceases to exist. ‘tragic’.
Now let us look at a pork supplier in one the busy townships of the country. ‘Nkhumba ndi dhilu’ [roughly meaning pork is the real deal] is the popular belief so this supplier amasses a lot of profits on a daily basis. Weekends are ‘worse’. Life is good.
Now this individual feels there is room to make exorbitant profits. He resorts to manipulating the scale and using trickery in his daily transactions. In no time, customers notice a change on the quantity of the ‘beloved meat’. It is not as before. Many of them decide it is better they purchase their pork in town as compared to the nearby spot. Your guess is as good as mine as to the fate of the pork business.
The core idea in this scenario is consistency as being the driving force to growth of every business. The reason the world’s top brands are commanding the state of affairs to date is that they hardly falter. Should they falter, they are quick to rectify the loopholes so as to maintain their massive audiences, even grow them. Any unchecked lapse in service delivery leads to doom.
The eleven lines call for small and medium businesses not to take customer loyalty for granted. Business operators must view customers like that last bottle of water in a vast desert.
This is the future we hoped for, an environment of multiple business ventures, providing different goods and services suiting peoples’ different needs. It is the honey we have for long been looking for. We are glad to have finally found the honey comb, but the honey is slightly bitter.
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