Poverty reduction through strengthening small and medium enterprises

Abstract

Although Botswana is clearly one of the richest countries with one of the most vibrant economies in Africa, available statistical evidence suggests that the problem of poverty has recently caused a lot of concern in the country. Numerous attempts already made to deal with the problem have not yielded encouraging results, as the incidence of poverty continues to persist. Drawing from the experiences of three other African countries, this paper recommends a strategy based on strengthening small and medium enterprises (SMEs) for poverty reduction in Botswana. After discussing the constraints facing the SMEs in the country, the paper presents a set of six r,ecommendations designed to ameliorate, if not eliminate, these constraints, thereby strengthening the employment and income generating capacities of the SMEs and consequently reducing poverty in the country.