Original Research

Small industries in developing countries

Jan H. Lange
South African Journal of Business Management | Vol 11, No 1 | a1226 | DOI: https://doi.org/10.4102/sajbm.v11i1.1226 | © 2018 Jan H. Lange | This work is licensed under CC Attribution 4.0
Submitted: 25 October 2018 | Published: 30 March 1980

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Jan H. Lange, School of Business Leadership, University of South Africa, Pretoria, South Africa

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Abstract

A regional development programme is set out for a developing country, using Bophuthatswana as an example. A stable society with an increasing quality of life, and creation of enough job opportunities in the country are assumed as the primary objectives. Of the various alternative approaches to creating employment opportunities - agriculture, wholesale and retail trade, construction of infrastructure, and large scale and small industry - it appears that labour-intensive small industries can achieve employment objectives at the lowest cost to the economy. This approach, which also develops entrepreneurship and organizational talent, is recommended as having economic, social and political advantages. The roles of small scale industrial entrepreneurs in developed and in developing countries are contrasted, the major problems in the latter being the ability to identify potentially profitable projects for export, and the ability to market in neighbouring countries. The proposed development strategy would require a new specialized development agency in South Africa, collaborating closely with the developing states's own development agency, and both of them assisting entrepreneurs to identify projects with potential.
'n Streeksontwikkelingsprogram vir 'n ontwikkelende land word beskryf met Bophuthatswana as voorbeeld. 'n Stabiele gemeenskap met toenemende lewensgehalte, en skepping van genoeg werksgeleenthede in die land word as die primere doelwitte aanvaar. Van verskeie alternatiewe benaderings tot werkgeleentheidskepping - landbou, klein- en groothandel, konstruksie van infrastruktuur, en groot en klein nywerhede - blyk dit dat klein nywerhede werkverskaffingsdoelwitte teen die laagste koste aan die ekonomie kan bereik. Die benadering, wat ook entrepreneurskap en bestuurstalent ontwikkel, word aanbeveel omdat dlt naas ekonomiese, ook sosiale en politiese voordele het. Die rolle van klein nyweraars in ontwikkelde en ontwikkelende lande word gekontrasteer, en die belangrikste probleme vlr laasgenoemde is die vermoe om potensieel winsgewende projekte vir uitvoer te identifiseer, en die vermoe om in buurlande te bemark. Die voorgestelde ontwikkelingstrategie sou 'n nuwe gespesialiseerde ontwikkelingsagentskap in Suid-Afrika vereis, wat nou saamwerk met die ontwikkelende staat se ontwlkkelingskorporasie, terwyl beide entrepreneurs help om projekte met potensiaal te identifiseer.

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