In our previous article, we attempted to dispel some myths around the concept of Democratisation of the economy (DOTE) and what it should NOT stand for. Nevertheless, we do believe in striving for greater access to economic opportunity and the means towards achieving this merits debate. However, an ambition to provide the same access to opportunity for all is hopelessly idealistic. Such access depends on one?s ability, education, imagination, drive, wealth, network, birth? it can, unfortunately, never be equal. This egalitarian ambition can also slide into an opaque exercise of denying those judged to have too much opportunity, or access to it, in favour of others, less fortunate but perhaps also less able to create sustainably competitive businesses.

If DOTE is seen ? correctly ? as not an end in itself, but as a means towards achieving the most competitive economy for a ?better living for all? (borrowing from the NPCC), it must aim for a different vision, one which can become an inspirational objective. We would suggest that such an objective might be one where all economic actors have the freedom to aspire to any opportunity.

● The freedom to dream

However, economic success must be within reach, for this freedom to dream to be real and not merely an illusion maintaining the status quo. DOTE must mean working towards the creation of an ecosystem, which rewards risk-taking and where examples of success are evident, can be emulated, and are attainable by all. We do not live in such an environment today. The core problem is actually not concentration of economic power but the hermetic nature of our business community. Our private sector suffers from an unwillingness to expand the net of economic opportunity beyond its own group or community. There is an inability to trust, work with and learn from ?others?? and there is a misplaced notion that synergies means doing more in-house. Finally, our private sector must understand that it is in its own long term interest to encourage the emergence of a vibrant, diverse, entrepreneurial economy where excellence emerges whatever its origin. Our private sector needs to genuinely believe in free enterprise and the freedom to become entrepreneurs.

● Show the way

The development of such an entrepreneurial ecosystem is not well served by government intervention ? experience does not indicate that politicians or civil servants best understand the nature of entrepreneurship and the means to nurture it. This perhaps explains why, despite the well-meaning rhetoric of successive governments, we have precious little to show for in terms of substantive SME success and innovation. Indeed, there is even some doubt as to how many of our policy makers believe their own politically-correct discourse on the potential of SMEs?

Although entrepreneurship cannot be imposed through ?decree?, government does have a strong motivational role to play by creating the right incentives. As an important economic player it must elaborate transparent guidelines which favour sourcing suitable products and services from SMEs. Such affirmative action policies exist in many countries and can be adapted here. And if government is serious in expanding opportunities, it should ask its directors on the board of state-owned enterprises to request similar policies wherever appropriate.

● The power of clusters

In the developed world, the economic benefits of outsourcing and the creation of dynamic industrial clusters based on networks of strong SMEs are no longer in doubt. In Mauritius, we also have successful examples of collaborative ventures between SMEs which clearly demonstrate the potential of such ventures to contribute to the restructuration and regeneration of our traditional industrial fabric as well as provide new opportunities in the export-oriented service sectors towards which our economy is evolving.

In the textile industry, for example, collaborative networks of small firms have been able to escape the price pressure faced by traditional manufacturers by addressing new market niches at the high-end of the market. These firms effectively destroy myths as to the inability of SMEs to deliver quality, reliability and creativity ? and create jobs.

It is also clear, however, that the emergence of SMEs as a significant contributor to economic growth will depend on their ability to ?integrate? with larger firms in the traditional private sector as suppliers, service-providers, out-sourcing partners. But what comes first? The demand by large firms or the supply of innovative products and services by small firms ? We believe that in our local context, demand must precede supply and large firms should generate these opportunities through improved governance and affirmative action sourcing policies but, more importantly, by seriously considering out-sourcing partnerships and strategies.

● Changing minds

Indeed, we would argue that sustainable democratisation of the economy will not happen as a result of government intervention but as a result of actions by our private sector ? which are in its own long-term interest and which firmly establish it as a partner in social development.

This process shall require a mindset change. It will happen when banks view start-ups as potential investments rather than potential bad debts; when established groups welcome young firms as potential future partners rather than competitors; when conglomerates come to appreciate outsourcing as a key strategy; when all firms view diversity in their employees as a strength rather than a weakness. But, more fundamentally, it will require overcoming a particular Mauritian weakness; our collective inability to celebrate the success of others. Are we prepared to make others rich ? even if it makes us better off as well ?

A powerful and concrete initiative which would indicate a commitment to this process could be the setting up, by our large conglomerates, of private-equity funds dedicated to SMEs. While the DBM does provide finance for entrepreneurs, it cannot offer the critical support which makes the difference between failure and success; real business experience and mentoring; networking to identify customers and suppliers; supportive financial backers with an understanding of risk and the capability to go the extra mile to support the right idea; finally, the ability to provide entrepreneurs with exit options which adequately reward their efforts.

Is it too idealistic ? or naïve ? to believe that our private sector can initiate and sustain a process of change towards an economy where all genuine entrepreneurs have a real opportunity to succeed? Perhaps. But if this mindset change does not occur, our private sector will have no one to blame but itself as the heavy hand of well-meaning, but ultimately self-defeating, government intervention attempts to forge a landscape where entrepreneurs may live their dreams.

AGORA (Urmila Boolell, Arif Currimjee, Jacques de Navacelle, Eric Ng Ping Cheun)