Why Small and Medium Enterprises are left choiceless in adopting Strategic Management ethological (ethos) practices in Africa! A comprehensive study of selected small businesses across Africa
DOI:
https://doi.org/10.31150/ajebm.v3i3.174Keywords:
Small Business, Strategy, Strategic Management, ethological practices, Sustainable Growth, Small and Medium EnterpriseAbstract
In highly competitive business environment and unstable economic situations, small businesses in the SMEs sector fold up due to a series of management challenges based emanating both from the internal and external structures of the environment. The life of small businesses in Africa is highly volatile and unpredictable given the level of competition posed by the global business environment. The future is always uncertain and much needed to be done in terms of how to deal with that future today. This paper provides a pedestal and an ontological perspective within which Small businesses self-manage their operations from strategic–orientation perspectives. Significantly, small businesses in Africa are the engines that drive economic development and contribute significantly to the Gross Domestic Products (GDP) of most countries. A resurgent of entrepreneurs starting up companies and the need to place them in their rightful position is undisputable despite continued stereotyping and misconceptions on their contribution. The paper argues that the sustainable survival of small businesses in the SMEs sector will entirely depend among other critical factors, embracing strategic management culture. Strategic management practice is an area worthy of research considering the huge importance of small businesses to nations ‘economic recovery, growth, competitiveness and performance. The paper explores many of the strategic orientations critical to the success of small businesses in Africa. To obtain critical data required to make informed recommendations, the present study reviews existing literature on strategic management adoption and also made use of six empirical studies across the SMEs sector in selected parts of Africa. Sixteen businesses were sampled and studied to understand the strategic model and practice using face-to-face interviews. In addition to literature review, the choice of phenomenology adopted for the empirical study was appropriate for this study in order to understand the lived experiences of the sixteen participants selected to give first hand experiences on strategic management, which in turn supported the theoretical understanding obtained from the secondary data. The study suggests further research on best practices in formalizing strategic management in Africa.
Key words: Small Business, Strategy, Strategic Management, ethological practices, Sustainable Growth, Small and Medium Enterprise
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