Assignment Task
The role of standardization in the growth of micro, small and medium-sized Enterprise (MSMEs)for suitable, inclusive and diversified industrial and economic development in Africa
My name is SILVESTER EMMANUEL NYANDA, I’m a third-year student at Mzumbe University (main campus), studying bachelor of science IN PRODUCTION AND OPERATION MANAGEMENT (BSc.POM). Mzumbe University is located in Morogoro region, within Mvomero district. The Address of university is P.O BOX 01 MZUMBE MOROGORO.
According to SME 2003 policy of Tanzania, it defines MSMEs, micro enterprises involve up to 4 people and capital employed does not exceed Tshs.5 million. Small enterprises involve 5 to 49 employees with capital between 5 to Tshs.200 million. Medium enterprises involve 50 to 99 employees and has capital investment from Tshs.200 million to Tshs.800 million and large enterprise consist of more than 100 employees and have capital investment of above Tshs.800 million. But definition of MSMEs depend on number and capital investment that is why definition varies according to a country because each country uses the measures of size according to their development level. Examples of MSMEs in Africa include:
- A small-scale farmer who grows crops and sells them at local markets.
- A micro enterprise that manufactures and sells traditional crafts in a local community.
- A small-scale retail business that sells clothing and accessories.
- A medium sized manufacturing company that produces machinery and equipment.
- A small service-based business that provides consulting or IT services.
ROLES OF STANDARDIZATION IN THE GROWTH OF MSMEs ARE THE FOLLOWING:
- Standardization used in development of quality management systems. This involves the use of guidelines for production process, testing and inspection as well as standards for product labeling and packaging. By adhering to these standards, MSMEs can demonstrate to customers and potential investors that they are producing high quality products and services, which can improve their access to markets and increase their sales.
- Standardization used to promote innovation and entrepreneurship among MSMEs.This can include providing a framework for the development of new product and services, as well as supporting the use of new technologies and business models. By fostering innovation and entrepreneurship, standardization can help MSMEs to grow and diversify their businesses, which can contribute to more inclusive and sustainable economic development in Africa.
- Standardization provides a framework for the protection of intellectual property rights. This can include guidelines for patenting and trademarking products, which can help MSMEs to protect their innovations and ideas from infringement by others.
- Standardization help MSMEs to comply with regulations and laws, both domestic and international. This can include standards for environmental protection, health and safety and labor rights, which may help MSMEs to avoid unnecessary penalties and fines and improve their reputation with customers and other stakeholders.
- Standardization help MSMEs to reduce costs and improve efficiency. This can include standards for energy efficiency, which can help MSMEs to lower their energy bills, as well as standards for quality management systems, which can help MSMEs to identify and correct problems in their production process, which can lead to cost savings.
- Standardization also used to promote trade and economic integration in Africa. This can include the development of regional and international standards, which can help MSMEs to access new markets and increase their exports. By reducing barriers to trade, standardization can help MSMEs to access new customers and suppliers, and increase their competitiveness in the global marketplace.
- Standardization can also help MSMEs to access funding and other resources. This can include standards for financial reporting and accounting, which can help MSMEs to demonstrate their financial stability to potential investors, as well as standards for environmental and social impact assessments, which can help MSMEs to access funding from development organizations and other sources.
- Standardization help MSMEs in Africa to improve their supply chain management and reduce their exposure to risk. By using common technical specification, MSMEs can make it easier to source raw materials and components, which can improve their ability to manage costs and meet delivery deadlines.
- Also, Standardization to improve ability of MSMes to participate in public procurement. By aligning with international standards, MSMEs can increase their chances of being selected as suppliers for government projects and contracts, which can provide a stable source of revenue and help them to grow their business.
- Standardization can also help MSMEs in Africa to improve their resilience and adaptability to changing market conditions. By aligning with international standards, MSMEs can ensure that their product and services are compatible with the latest technologies and trends, which can make easier for them to adapt to changing market condition and remain competitive.
- Standardization can also help MSMEs in Africa to improve their ability to attract and retain talented employees by providing a framework for professional development and training. By aligning with international standards, MSMEs can ensure that their employees have the necessary skills and knowledge to perform their jobs effectively, which can increase their productivity and competitiveness.
- Standardization enhances the capacity of MSMEs to participate in the global economy. This can involve providing training and education on the use and implementation of standards, as well as providing access to information and technical assistance. This can help MSMEs to improve their knowledge and skills, which can increase their competitiveness and improve their access to markets and resource.
- Another role of Standardization is to promote digitalization for MSMes in Africa by providing a framework for digital communication, digital data management and digital documentation, which can make it easier for MSMEs to access digital tools and technologies. This can improve their ability to automate their processes, increase their efficiency and reduce their costs, which in turn helps them to be more competitive.
- Standardization used to establish common technical and quality requirements, standards can help to reduce barriers to entry for small businesses, allowing them to participate in a wider range of economic activities. This helps to promote economic growth and reduce poverty, as well as create more opportunities for women and other marginalized groups to participate in the economy
