Thursday, September 23, 2010

Mitigating the effects of HIV on SMEs

 Impact of HIV/AIDS on SMEs

Whenever the matters of business advisory services given to SMEs are talked about, they are mainly centred on business management principles. No much importance is attached to the healthy issues, particularly HIV/AIDS, which have equally devastating effects on the operations of SMEs.  A study of 209 small businesses by the University of Port Elizabeth identified HIV/AIDS as one of the three main factors that cause nearly 80% of South African start up SMEs to fail every year. Surprisingly, according to the report by Business Action for Africa, the majority of companies operating in Africa, in particular SMEs (who employ a large proportion of the workforce) have no HIV/AIDS programme in place, despite the clear need for them to safeguard a healthy workforce and enjoy long term success. HIV/AIDS has more devastating effects on SMEs than on big companies as the critical SME staff members (the owner, that honest driver, that innovative manager and that receptionist who plays multiple roles etc) are often lost to HIV/AIDS. If a HIV-positive forklift driver is sick, 20 other people slow down. Production can even grind to a halt if it is really a critical part of the SME team. HIV/AIDS increases funerals, death benefits and other expenses, recruitment costs as well as causing operational disruptions through increased absenteeism, higher labour turnover and loss of experienced personnel. Most SMEs’ operations are anchored on the support of families; when the same relatives are sick, all the extra business funds are channeled towards taking care of them, thereby indirectly affecting the financial position of the small institutions.

Why is such an important aspect often overlooked? What should SMEs do to avoid and mitigate the effects of the disease?

Most SME HIV/AIDS responses start and end with simple awareness or prevention activities like the distribution of condoms and awareness materials and this is not enough! There are many reasons for the lack of action. A first challenge for SMEs is developing an appropriate program for the size of the company. Secondly, a survey of 80 SMEs in South Africa found that 42% did not actively partake in dealing with HIV because they did not expect HIV/AIDS to impact their operations. The third reason is that there is also lack of information on HIV/AIDS amongst SME managers/owners to enable them to deal with the virus. Lastly and more importantly, there is generally lack of pressure among SME, government and donors to act on this matter.

It has to be acknowledged that SMEs may not adopt healthy policies which resemble what big corporates have in place. However, the important fact remains; SMEs employ majority of the population in developing countries, making it necessary and a worthy cause to fight HIV from the domains of SMEs. Donor community and Government are quite active in educating every citizen, through public media, about HIV and AIDS but the support structures lack in the SMEs, where most of the working class spend more time. In big corporates, the induction contains the HIV educational material and in some cases that companies have comprehensive HIV prevention and management programmes. In contrast, among SMEs, there is little concern about what happens to the workers as long as they still turn up for work every day. For instances, SMEs hire drivers for cross border transport operations without educating them internally; the same drivers fall prey to the vagaries of commercial sex workers along the route and at the border posts.

Taking Action to Implementing HIV/AIDS Programme

IFC advises that in order to adopt a good HIV/AIDS programme, the management of the SME should do the following: -

  • Draft company HIV/AIDS policy statement
  • Adopt the policy
  • Promote the company policy
  • Establish an HIV/AIDS committee
  • Select a focal point/coordinator
  • Provide information and referrals to locally offered services
  • Select a service provider to assist with implementation
  • Craft an HIV/AIDS action plan for specific interventions with time frames
  • Contact public health facilities for free condoms
  • Contact local government to access information on community and public health resources
  • Survey employees knowledge of HIV/AIDS
  • Target prevention messages to dispel myths
  • Launch a company HIV/AIDS slogan
  • Make awareness materials available in the workplace…e.g. display posters
  • Have a group of employee volunteers

Important Notes in Implementation

1.        SMEs management should appeal to local clinics/NGOs for some free HIV workshops for their small staff compliment. It is worthy it to stop work for few hours of the working day to save at least one life rather than to be obsessed by drive to make short term profit at the expense of long-term benefits. Where clinics may not be forthcoming it is necessary to help get help from any resourceful outsider to run at least a short HIV/AIDS Peer education programme for staff.
2.          The SMEs staff should be encouraged at institution level to get tested for HIV and get timely medical attention for a prolonged life.
3.        The staff working for SMEs should be given resources to support the fight for HIV; time is a very important resource with is quite constrained given the long hours which SME staff tend to pull. They should be given time to be with their families, time for engaging to enhance their spiritual well-being through perhaps participating in church activities. They should have some leave days to participating in sports of their choice. If SME staff would have time for these aspects of life, it may assist in fighting HIV/AIDS.
4.            There is an urgent need for the national government and NGOs to try to help small businesses become more proactively engaged in fighting HIV and AIDS more importantly in coming up with the best practice through which SMEs can implement comprehensive HIV/AIDS prevention, treatment and care programmes. 

Conclusion
It is important to note that collaboration or partnerships play an integral role in HIV/AIDS mitigation efforts for SMEs, as collaboration assists in identifying resources in the wider community which can help avoid duplication and save companies both time and money. It is imperative that these SME businesses collaborate closely with the national governments and NGOs in order to support a form of welfare system for staff affected by HIV/AIDS.

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