We heard it before and we will keep on hearing it from our politician leaders. The MSMEs (Micro Small Medium Enterprises) must be supported. That really should be as about 90% of employees in this country are with such businesses. For those concerned about equitable distribution of wealth, that is one good way of democratize economic opportunities. It turned out though the so called support are just small amounts bound to be lost to overhead expenses and not really to make such businesses succeed.
Anybody who ever put up a business from scratch know that there a gestation period a venture has to go through. That is the time to perfect your product, fine tune your systems and creating customers. It takes years to do that, especially if the owner has yet to gain some expertise in the trade or line he wants to get into. Meanwhile, as the days go, overhead costs would also be going along with bills. Where would the manager, usually the owner himself, get the money for those?
The point is that an honest to goodness support for the success of MSMSs is to include the amounts necessary to go through the gestation period. Otherwise, such, if newly put up, will just be added to the long list of government supported firms that failed. Precisely because of the failure of government to see to it the business will be alive until it acquires a life of its own with a steady blow of loyal customers.
Thus, the requirements to qualify for government support have to include love of the owner for the business. This is indispensable for him/her to have the stamina and determination to see the business through all kinds of tribulations.
Another is expertise in the line of business. Does the owner know the ins and outs of it so he could effectively run it.
Does he have the personality required for it to succeed?
These are so difficult to ascertain but some objective considerations can be looked into which will indicate these.
Do government agencies mandated to support MSMEs have the necessary qualifications to assure these? A big fat NO. They would only know how to look at feasibility studies and the theoretical capital requirements. These are very small parts of what it takes for a business to succeed.
The most important factors only well experienced businessmen would be able to appreciate or effectively evaluate. Such are the people government should look for and make them consultants. Not those who just finished a college course but did not have enough experience in the actual field of business for them to know what they are talking about.
Sadly, government people only know how to put up bureaucratic requirements resulting in red tape and the usual inefficiency. Because they are not after the welfare of the nation and its peoples.**