ENTREPRENEURSHIP and MSE DEVELOPMENT IN TRINIDAD AND TOBAGO 2014 - - PowerPoint PPT Presentation

ENTREPRENEURSHIP and MSE DEVELOPMENT

IN TRINIDAD AND TOBAGO

2014 and Beyond

 OVERVIEW AND MANDATE

OVERVIEW AND MANDATE

• Develop policy, coordinate its

Develop policy, coordinate its implementation implementation and and perform an advisory role on behalf of the Minister perform an advisory role on behalf of the Minister

 ROLE OF THE EDD

ROLE OF THE EDD

• Develop and

Develop and implement policies and implement policies and programmes to programmes to promote micro and promote micro and small small enterprise (MSE) growth enterprise (MSE) growth

• Mitigate adverse condition

Mitigate adverse conditions for smaller businesses for smaller businesses

• Create a

Create a more favourable more favourable environment for environment for entrepreneurship (and MSEs in particular) entrepreneurship (and MSEs in particular)

Goal: To create a facilitative environment for MSEs so that they can

contribute significantly to economic diversification and wealth creation.

Objectives:



To accurately define the sector



To create and expand opportunities and reduce obstacles for MSE entrepreneurship.



To reduce the barriers between formal and informal sectors.



To apportion equitable treatment to MSEs as to that of medium and large enterprises.



To improve MSE access to finance and to business development support.



To improve the national and international market network for MSEs.



To encourage productive and innovative MSEs in the interest of economic diversification and wealth creation.

Small Small Business Development and Entrepreneurship usiness Development and Entrepreneurship Institutional Strengthening Enhanced legislation A new and enhanced suite of tax incentives More in-depth small business training Expanded and customised funding facilities The establishment of new business clusters Acutalising the “fair share” programme

Po Policy Initiatives licy Initiatives

Inclusion of entrepreneurship and innovation in school curriculum Strengthening of state institutions A new regime of fiscal incentives, preferential tax rates and concessions specifically to develop small enterprises Comprehensive targeted training with loans Small business windows in all public and private financial institutions Grant funding, start-up capital and seed money where required Creation of business clusters within communities Protection for local manufacturers against unfair competition from foreign manufacturers and imported goods Active monitoring of contracts by government agencies to ensure that smaller enterprises are included (FairShare Programme)



Programmes specific to the Ministry for supporting entrepreneurs and small businesses:

• Nationa

National Entrepreneurship Devel Entrepreneurship Development Compa pment Company Limited (NEDCO): ny Limited (NEDCO):

 MSE Lending and business advisory services.  Operating in all sectors except primary agriculture.

• FairShar

irShare P e Programme: ramme:

 Established in 2012  Set-aside programme giving MSEs access to government contracts up to $1 Million  Over 1,200 enterprises are certified.  242 officers from 74 Government Ministries and State Agencies (GMAs)

• Na

National I tional Integrat grated B ed Business siness Inc Incuba bator Sy Syste stem (IB (IBIS):

 Established in September 2011  A facility that supports existing and new small businesses  Provision of entrepreneurship training, mentorship, seed capital and business facilities  240 MSEs accepted  134 completed pre-incubator training  89 incubator clients (on site and off site)

 64 revenue generating clients  91% credited IBIS for sales growth

 Partnerships with two (2) commercial incubators (CARIRI CED and ALJGSB BizBooster)

• Ente

Enterprise Inv Investment nt Fund (EIF): Fund (EIF):

 Support for public-private partnership initiatives related to strengthening the eco- system that supports micro and small enterprise development.  Board established in 2015.  EIF is affected by limited funding

• Nation

National B al Baseline seline Survey: rvey:

 Partnership to have periodic surveys of the sector in general and specific areas (e.g. NEDCO-CSO-ALJGSB baseline survey, on-going)  Collaboration with MTI to provide $2 Million to CSO to assist with improving data collection capacity through funding of technology based system

SITUATIONAL SITUATIONAL ANALYSIS ANALYSIS

• Micro and small enterprises
• Represent approx 90% of the total number of registered

businesses in Trinidad and Tobago (CSO)

• Employ up to 25% of the labour force.
• Comprise of a large number of informal enterprises (approx

twice the number of registered businesses)

• Are often disadvantaged due to:
• Size
• Challenges accessing finance
• Challenges accessing markets
• Limited management skills
• Entrepreneurship is essential to successful economic

diversification.

• Most new companies start small; therefore supporting small

business growth is important for entrepreneurship development.

 Main players in MSE Development

Main players in MSE Development

• a. Busines

Business training training and deve and development lopment

 NEDCO-ETIIC, Business Development Unit (BDU - Tobago House of Assembly)  National Integrated Business Incubator System (IBIS)  Youth Business Trinidad and Tobago (YBTT)  Academia: University of the West Indies; University of Trinidad and Tobago; Arthur Lok Jack Graduate School of Business; COSTAATT

• b. Financi

Financing

 BDU, 8 commercial banks; 17 non-bank financial institutions; EXIM Bank  Credit unions (a large number of diverse institutions)  Venture Capital Incentive Programme (VCIP)  Development lending institutions: Agricultural Development Bank (ADB); MicroFin; Development Finance Limited; NEDCO-ETIIC  Grant funding: Ideas to Innovation (i2i, Ministry of Planning and Development), REACH (Tobago), among others from the Ministry of Community Development, Ministry of Social Development, NIHERST

c. c.

Marketing keting Ne Networks tworks

• Eximbank
• ExporTT

d.

• d. Other

Other

Ratings Ratings agency gency

• Caribbean Information and Credit Rating Services Ltd (CariCRIS)

Rese Research ch and and Dev evelopm

• pment

nt

• Research and Development Fund (ExporTT)
• Caribbean Industrial Research Institute (CARIRI)
• Academia, including UWI, COSTAATT and its Family Entrepreneurship

Research Centre (FEDRI) and USC.

Na Nati tion

• nal Integr

Integrated Busine siness In Incu cubato tor System System (IBIS) (IBIS)  To impr prov

• ve

the pe perfor

• rmance

nce

• f

MSEs thr hrough suppor support

• f

community community base based enterpr nterprise ise development evelopment  To To provide provide sup upport port to to the the potentially

• tentially

hig high growt growth MSEs MSEs providing providing innova nnovative tive prod produc ucts ts and and servic ervices Quality Quality Mana anagement ement Enhancement nhancement (Q- Q- ME) ME)  TTBS TTBS Certification in G Certification in Good

• od

Management Prac Management Practic tices (GM s (GMP)  Certific Certificatio ion in n in Pro Produc uct and Servic t and Service e Stand Standards  Certificati ification/Accredi n/Accreditation ation o

• f t

the serv service provid ice providers ers  To To imp improve mana anagement ement and nd product

• duct

and nd service service quality uality standa standards Green Enterpr Green Enterprise se Development Development  To To develop develop environmenta environmentally lly sustaina sustainable MSEs ble MSEs  To est To establish blish a G a Green een Certification Certification syst system em  To To establish suppor establish support syst system em for creating green MSEs for creating green MSEs  To increase To increase oppor

• pportunities

unities for green proc for green procurement urement Enterpr Enterprise se Investment Investment Fund Fund  To To imp improve business usiness dev evelopm elopment nt by by providing

• viding sup

uppo port to to priva ivate sector ector agencies ncies tha hat have an intere nterest in MSE SE develop development. ent.

FairSha FairShare Pro rogr gramme amme  GMA opportunities pportunities  MSE Certificati tification  Training Training  Pre- e-Qualification Qualification  To To create create a forum

• rum for

for showca howcasing ing MSEs SEs  To To increase increase access access to to public public procurement procurement oppor pportunities unities  To To improve improve the he capacity capacity of MSEs SEs Market Market Access Access Progr Programme mme  Virt Virtua ual Mall all  Infor Information on ation on and access to and access to local and local and internatio internationa nal tra l trade shows e shows  Info Informatio ion on n on interna internatio ional stan nal standards  To To raise the raise the prof profile of MSEs an ile of MSEs and their d their prod produc ucts ts and servic and services es in the local in the local mark market et  To improve To improve the access the access of

• f the

the MSEs goods and services to MSEs goods and services to export markets export markets

MSE MSE Financing inancing Progr Programme mme  Angel Angel Investment nvestment Progr rogramme amme  Cro Crowd Funding unding Facility acility  Ri Risk sk Capital Capital Programm rogramme (RCP (RCP – NEDC NEDCO) O)  To To imp improve the he flo flow of

• f info

informatio ion on financ inancing ng of

• f MSEs

MSEs  To To improv prove financin ancing to to micro micro and nd smal all ente nterpris prises es to to improve prove thei heir prosp prospects cts for

• r growth
• wth and

and prod roductivi ctivity. y.  To create To create incentives incentives for for priva private sector investments e sector investments NEDC NEDCO  Lendi Lending Pr Programme  To To expa expand investment and lending pr investment and lending produc ucts ts

Gove vern rnan ance ce  Est Establish blish the he Trinida Trinidad and and Tobago Tobago Micro Micro and nd Small Small Enterpr Enterprise se Counc Council il (TTMSEC (TTMSEC)  To To establish national dia establish national dialogue fo

• gue for t

r the e purpo purpose of e of MS MSE g E governance rnance  Harmo Harmonis ise all e all stak stakehold eholders involved involved in in MSE MSE develo development ent progr programmes mmes  To coord To coordina nate te the implementation the implementation o

• f p

programmes r related t to M MSE develop development ent Small ll Ent Enterpr rprise se Certification Certification  To To provid provide financ e financial and non-fina ial and non-financial incent ncial incentiv ives f es for t r target rgeted, ed, growth or

• wth orient

iented m ed micro cro and small enterpr and small enterprises ses Micro Micro and nd Small Small Ent Enterp rprise rise Web Web Portal rtal (TTA TTAcce ccess)  Interactiv active Map ap for for identifying ntifying and and accessing accessing MSE SE services services  Certified Certified MSEs  Access Access to to markets markets  Ac Acce cess ss to to non-tra non-traditiona itional financ financing ing To To provid

• vide concise
• ncise and

and useful seful inf nform

• rmation

tion resource resource and and an online nline diag diagnostic nostic service rvice addr ddressi essing ng the chi hief ef chall challeng nges es of

• f micro

micro and nd small small enterprises enterprises and nd the the wider ider business business community community.

ACTION ITEMS FOR 2015-16 ACTION ITEMS FOR 2015-16

• 1. NEDCO
• To expand investment and lending products by NEDCO
• To focus on plan for NEDCO’s self sustainability
• 2. IBIS
• To improve the performance of MSEs through support of

community based enterprise development

• To provide support to the potentially high growth MSEs

providing innovative products and services

• 3. FAIRSHARE
• To create a forum for showcasing MSEs
• To increase access to public procurement opportunities
• To improve the capacity of MSEs
• To improve management and product and service quality

standards

• 4. EIF
• To increase access to funding for business development support

programmes

• 5. NATIONAL BASELINE

SURVEY

• To generate baseline data on the MSE sector and a framework for

continuous assessment of Ministry initiatives

• 6. TTMSEC
• To establish national dialogue for the purpose of MSE

governance

• To harmonise all stakeholders involved in entrepreneurship

development programmes

• To coordinate the implementation of programmes related to MSE

development

ACTION ITEMS FOR 2015-16 ACTION ITEMS FOR 2015-16

• 7. GREEN ENTERPRISE

PROGRAMME

• To recommend Cabinet approval of Green Enterprise Policy
• To develop environmentally sustainable MSEs
• To establish a Green Certification system
• To increase more opportunities for green procurement
• 8. MSE PORTAL
• To provide concise and useful information resource and an online

diagnostic service addressing the chief challenges of micro and small enterprises and the wider business community.

• 9. ACCESS TO FINANCING
• To improve the flow of information on financing of MSEs
• To improve financing to micro and small enterprises to improve

their prospects for growth and productivity.

• To create incentives for private sector investments
• 10. ADVOCACY
• To research information related to enhanced legislation to

support MSE development

• 11. CERTIFICATION
• To identify relevant benefits for certified MSEs
• To provide financial and non-financial incentives for targeted,

growth oriented micro and small enterprises