It is estimated that 25 million small, medium and micro enterprises exist within Brazil, Russia, India, China and SA (BRICS) countries, of which 90% are very small enterprises (VSEs). However, their need for business software and services is not being addressed.
So says the SAP Research Centre Pretoria, which together with the BRICS Research Interest Group, has committed to its first research project designed to develop a mobile business application platform. The platform will be used to deliver business services to VSEs in emerging economies.
The research workgroup operates under the SAP Meraka Institute and encompasses nine research and academic institutions within BRICS.
Danie Kok, a director at SAP Research Centre Pretoria, points to research conducted in SA by the University of Cape Town's Graduate School of Business. It indicates 55.8% of all VSEs require business software in the areas of marketing, finance and accounting, HR, administration, inventory, and procurement, to more effectively and efficiently run their business.
Research found business inefficiencies in these areas lead to a VSE failure rate of up to 50% within the first five years of operation. This high failure rate negatively impacts the economies of countries due to job losses, for example.
The sustainability and growth of VSEs is of great importance for job stability, creation of new job opportunities, and related socio-economic development, notes the research work group.
To this end, the first prototypes of the mobile business application platform are already available locally, and will now be further developed for the other BRICS countries. In support of this business service initiative, a mobile phone-based e-learning platform aimed at VSEs will be also be developed by the BRICS Research Interest Group.
“Entrepreneurs, from spaza shop owners to plumbers, seldom have the basic knowledge needed to operate effectively, and we are therefore working on a simple, accessible and affordable platform to impart basic business skills,” explains Kok.
Mobile solution
The BRICS Research Group opted for a mobile solution due to the cost and high mobile phone penetration in BRICS countries (almost 100%), indicating that VSEs have high levels of access to mobile devices.
The current solutions envisaged by the research group aim to enable VSEs to access business services through an intermediary - Vodacom or Vodafone - on their mobile phones.
This will enable VSEs to link to other role players such as suppliers and conduct a number of business-critical activities directly from their mobile devices, while utilising the functionality of stable and proven systems on the back-end, explains SAP.
The research workgroup says VSEs in emerging economies have a unique set of requirements - which can only be achieved if the users are involved in the development and want to use the solutions developed for VSEs.
For this reason, notes the BRICS Research Interest Group, the solution also entails a strong component which aims to create a user experience different from using the conventional experience on the back-end - all on a mobile phone.
In order to promote the project's progress, the BRICS Research Interest Group has committed to delivering research outcomes at least every three months.
Related story:
SA business mulls mobility
Share