eBusiness Weekly
Joyceline Sithole
The most exciting part of my job as a researcher is digging up unique and exciting information. I found this exciting information on associations. According to the “Palgrave Handbook of Volunteering and Civic Participation and Non Profit Associations” associations have existed for about 10000 years when many human societies settled down in villages. In addition, associations existed in preliterate horticultural societies to the current age of post industrial societies. Though their form has significantly changed, the ideology still remains albeit a larger and more structured scale.
Similarly, in the African context the notion of working together as a unit is not new. The most widely recognised belief being the Ubuntu Philosophy, ‘‘I am because we are”.
This is a belief that promulgates a universal bond of sharing that connects us as people. Another one of my favourite African proverb, “If you want to go quickly go alone, if you want to go far go together” also echoes the same beliefs of togetherness. To this end small groupings such as burial societies and cooperatives reflect and accentuate this very important aspect of our African belief system.
The current anatomy of these groupings is considerably larger as to benefit a considerable number of people. Though the DNA remains the same these business organisations are more structured with more sophisticated expected deliverables. Inc, an online business publication defines a business organisation as a “membership organisation engaged in promoting the business interests of their members”. According to the magazine, these associations typically perform activities that would be unduly costly including lobbying, information gathering, research, and setting industry standards.
Why form an association?
Associations or business organisations are formed for several reasons. Firstly, they can be formed to advocate on a particular cause such as labour, building career opportunities and sometimes offering support for industry professionals. For example, the Marketing Association of Zimbabwe (MAZ) has successfully partnered with institutions who offer various courses, diplomas and degrees so as to add value to their members. To a large extent, associations in Zimbabwe are sector specific though others such as Professional Women Executives and Business Women’s Forum (PROWEB) are geared towards advancing the causes of women.
What are the advantages of being part of an Association?
Robert Half, a global human resource consulting firm based in California, notes that joining a professional organisation is beneficial for one’s professional development and the future of one’s business. In addition the company believes that, “the resources made available to you and the ideas and advice you’ll discover represent an outstanding return on what amounts to a modest, manageable investment of time, money and effort”.
Being part of an association also gives one access to exclusive online resources, and all special activities. Business associations can also have political clout in terms of advocating for favourable economic policies.
Unpacking SME Activity Associations across the Globe
The oldest and largest non-profit organisation across the globe devoted to advancing small business research and practices is the International Council for Small Business (IESB). Another well respected international SME organisation is, The World Association for Small and Medium Enterprises (WASME) which is head-quartered in India and has been in existence for the past 35 years.
Some of the WASME’s activities include but are not limited to; policy advocacy, information dissemination, conferences, seminars, events trainings and publication network.
It is important to note that WASME enjoys a consultative status with UN agencies. Notably, some regional blocks such as the Association for East Asian Nations (ASEAN) have created dedicated SME desks within their organisational structures to cater for the needs of SMEs.
Unpacking SME Associations Landscape in Zimbabwe
Though Zimbabwe is home to a plethora of SME Associations, the Zimbabwe Chamber of SMEs (ZCSME) and the Small Medium Enterprise Association (SMEAZ) seem to be more visible than the rest of the organisations. The former is an umbrella body that has been mandated by an act of parliament to see the growth and development of SMEs at both a national and provincial level. The latter has strategically positioned itself largely as a business development organisation for its members.
What are the challenges faced by SME Associations in Zimbabwe?
That, SMEs have had positive impact to their members cannot be underestimated. However, there are flaws that need to be corrected for these institutions are to add value to their members.
Institutional development
According to Farai Mutambanengwe, the founder of SMEAZ, SME associations, can do well to improve on institutional capacity development. Mutambanengwe acknowledges the difficulties SME Associations face with regards to funding programmes. That however, should not be a deterrent for these associations to be innovative with regards to funding their organisations.
Southern Africa Development Consultants (SODECO) conducted an ethnographic research within a total of five SME institutions, which are operational in Zimbabwe.
Though these associations have boards, it emerged that most board members sometimes do not attend meetings or they do not have the requisite skills that enable the growth of these organisations. Most qualifications for being a board member are based on one being an SME. Moreover, all the SME Associations under review had no functional Secretariats and operational duties were largely divided among “willing board members”
Inadequate skill set
Most associations lack the requisite skills to propel their organisations to grow. It emerged that most organisations have poorly crafted visions and mission statements. In addition they do not seem to be any long term strategic direction for the organisations involved. Key skills that are lacking in the institutions are; proposal writing, fundraising, Monitoring and Evaluation and Public Speaking.
Inadequate big data
At a national level, there is a need to have a consistent thrust towards collecting SME big data. The current SME data that is being used to inform policies was collected by the Finscope Survey in 2012. As expected the SME Landscape has drastically changed since then. SME Associations need to have robust data that informs the government on various SME trends in the country.
Of particular interest will be how SMEs can actively participate in the various value chains in the country. A study conducted by the OECD Working Party on SMEs in global chains concluded that “Although several aspects of globalisation are now largely understood, notably its main drivers, sparse information is available on the transformation undergoing the relation between large and smaller firms and the evolution of the role of SMEs in global value chains.”
Inadequate value add to members
Lastly Associations should add value to the members. Gillian Rusike, Founder and Executive Secretary of the Marketers Association of Zimbabwe notes that members are the most valuable assets of the organization. Rusike argues that; “The value proposition should inspire them to continue being part of the vision”.
A survey of SME members across the country show varying degrees of satisfaction with current SME Associations. Overall members have benefited largely from capacity building initiatives that to a large extent are sponsored by Non Governmental Organisations.
To a minimal degree some SMEs have accessed finance. However, members lamented the lack of financial transparency within Associations. Most members allege that their associations did not have “visible financial structures”.
Here are a few interesting responses from SMES. One SME remarked, “When I saw the Chairperson driving a new car I immediately withdrew my membership.” Another one remarked, ‘‘I have never been called to a meeting where they tell us what our membership fees are being used for.” Generally SME Associations need to have procedures and processes that are clearly communicated to their members.
How to strengthen SME institutions stakeholder mapping
Stakeholder Mapping is very important within the SME sector. The Association needs to ensure that the requisite initiatives are tailor-made so as to add value to particular stakeholders’ interest.
Strengthening brand perception
I have been privileged to attend a number of SME related workshops and conferences. More often than not SME representatives have been absent from the conferences, come late or simply send relatives who had no idea what the conferences are about. Inevitably this negligence manifests itself in a poor brand perception of the SME space in Zimbabwe.
Availing resources
On the whole all SME associations that were surveyed are being administered by boards. This is unsustainable as board members are not always available to conduct operational business. To start with associations should identify spaces for Secretariats and resource these places with requisite human and technical resources.
Relook at Founders Syndrome (Founderitis)
I have no problem with Founders who have migrated their organisations to greater heights. The problem comes when Founders are not innovative and organisations do not grow. According to Carter Mcnamara, “No Founders set out to damage their organisations”. However, the problem comes when the founders cannot transition from an individual vision to a well planned and managed development pathway within their organisations. Where organisations are not growing, new blood should be injected into associations. To this end Founders of associations constantly need to re-look at their original motives and allow flexibility in how organisations are run.
In addition, there is a need to ensure that the personalities within the SME space have their members’ welfare at heart.
According to Rusike, “The most critical question that is often asked is who is involved in the association. Once you fail to answer this satisfactorily then you will lose the whole plot”
In conclusion, strong SME institutions will inevitably lead to a robust SME sector which in turn has the potential to significantly contribute to the country’s national GDP. I would urge all SMEs to be a member of any association so as to reap benefits related thereof. Steve Magee writes, “The environment is changing and by association so are the humans.”
