From self-employment to small businesses ACTED and CEFENET in Sri - - PowerPoint PPT Presentation

from self employment to small businesses
SMART_READER_LITE
LIVE PREVIEW

From self-employment to small businesses ACTED and CEFENET in Sri - - PowerPoint PPT Presentation

From self-employment to small businesses ACTED and CEFENET in Sri Lanka Livelihoods Asia Summit 7 December 2016 New Delhi Introduction Project title Community-driven development and pro-poor economic growth for conflict-affected population


slide-1
SLIDE 1

From self-employment to small businesses

ACTED and CEFENET in Sri Lanka

Livelihoods Asia Summit 7 December 2016 New Delhi

slide-2
SLIDE 2

Introduction

Project title

Community-driven development and pro-poor economic growth for conflict-affected population in Northern and Eastern Sri Lanka

Period

From 2012 to 2014

Donor

  • ACTED
  • Competency-based Economies

through Formation of Enterprise (CEFE-NET)

  • Centre for Poverty Analysis (CEPA)

Partners

European Union

2

slide-3
SLIDE 3

Self-employment and beyond

3

Supporting self-employed individuals in rural Sri Lanka to become micro, small and medium enterprises (MSMEs).

Objective

  • Increase of income through improvement of

products and marketing

  • Creation of employment opportunities for youth

in rural parts of Sri Lanka reduction of poverty.

Achievements

slide-4
SLIDE 4

Background

4

  • 90 % all businesses in Sri Lanka are MSMEs
  • Essential source of employment opportunities:

contribute about 35% of employment

  • Create opportunities to use local resources
  • Galvanise the development of the rural

economy

  • Contribute to social integration in the country

MSMEs in Sri Lanka

slide-5
SLIDE 5

Methodology/Action plan

5

1. Market study to understand the competent value chains for upgrading in target areas 2. Identification and selection of the self-employed individuals to become MSMEs. 3. Diagnostic study to understand the gaps for further improvement of self-employed entrepreneurs 4. Business planning workshops to develop individual business plans for upgrading to MSMEs 5. Counseling in business plan implementation

slide-6
SLIDE 6

6

6. Capacity-building: development of entrepreneurial, technical and business management capacities 7. Provision of assets + technology transfers for better and improved production 8. Marketing support: linking rural entrepreneurs with major city markets; buyer-seller meetings; trade fairs at local and national level; linkage with national level exporters for MSMEs with products suitable for exportation.

Methodology/Action plan (cont.)

slide-7
SLIDE 7

7

Comprehensive market study to understand the competent value chains in target areas.

Step 1: Market study

slide-8
SLIDE 8

Step 2: Identification of self- employed individuals

  • A. Development of criteria for

identification and selection of suitable self-employed individuals to be supported. Examples of criteria:

  • already self-employed,
  • potential for value additions,
  • market demand,
  • beneficiary’s contribution

towards investment,

  • utilization of local raw material

8

slide-9
SLIDE 9

Step 2 (cont.)

B. Call for expression of interest from interested self- employed individuals in the target sectors

  • C. Selection of

beneficiaries: competitive process, with Local Chamber

  • f Commerce,

CEFENET Sri Lanka and ACTED as jury

9

slide-10
SLIDE 10

Step 3: Diagnostic study

10

  • Gaps in marketing, production, management, human

resources and finance

  • Issues in investment for expansion of operations, business

registration, environment pollution , labour laws and regulations

  • Potential for further development of the operation
  • Requirements in technical training and management

training

  • Requirements in infrastructure facilities such as tools,

machinery and equipment

  • Business counseling needs for MSMEs to grow

Purpose

Understanding the needs and potential for further improvement of selected beneficiaries.

Examples

slide-11
SLIDE 11

Steps 4/5: Business planning/Business plan implementation

11

  • Workshop to develop a business plan.
  • The business plan serves to:
  • Identify potential areas of investment
  • Identify and select assets
  • Content of a business plan:
  • Marketing plan
  • Production or technical plan
  • Organization and Management plan
  • Financial plan
slide-12
SLIDE 12

Step 6: Capacity building

12

  • Training and counseling on:
  • entrepreneurship,
  • marketing,
  • finance,
  • management,
  • product development,
  • brand development,
  • packaging and labeling,
  • quality assurance,
  • cleaner production,
  • equal employment opportunities,
  • risk assessment and management.
  • Participation in

buyer-seller forums + trade fairs.

  • Development of

linkages with BDS, financial institutions, buyers and suppliers.

slide-13
SLIDE 13

Step 7: Conditional provision of assets and technology transfer

13

Based on the needs identified, beneficiaries were provided with:

  • required assets for improved and cleaner production;
  • necessary technology transfers.

But under the following conditions:

  • Creation of at least one employment opportunity for

each 300,000 LKR worth of assistance provided;

  • Ensure the capability of MSMEs to manage the assets;
  • Beneficiary’s contribution of 15% for investment in new

assets.

slide-14
SLIDE 14

Step 8: Marketing support for MSMEs

14

Marketing interventions to support the MSMEs in marketing their products and services. Examples:

  • Linking rural entrepreneurs with

major city markets.

  • Organizing buyer-seller

meetings, and encouraging participation in local and national level trade fairs.

  • Linking MSMEs selling products

suitable for export with national level exporters.

slide-15
SLIDE 15

Similar interventions in Sri Lanka

15

Among others, UNDP, GIZ, UNIDO and OXFAM implemented projects to encourage self-employed individuals to become MSMEs.

  • Creating an enabling environment for self-employed

individuals to become MSMEs – Development of a MSME policy for government approval.

  • Development of the BDS capacity in the regions in order

to ensure the sustainability of BDS delivery.

  • Training of Trainers and business counselors in MSME

development for government, private and some NGOs working in the field of MSME development.

  • Introducing entrepreneurship to vocational and technical

Training institutes

  • Revolving fund for micro and small enterprises’ financial

needs

slide-16
SLIDE 16

Development of female-owned MSMEs

In 2010-2014, the Government

  • f

Sri Lanka implemented a special MSME development programme for women entrepreneurs in the country.

  • Special loan scheme for women entrepreneurs

up to 250,000 LKR without interest, to be paid back within 5 years;

  • Women-only

financials schemes available through state banks at reduced rate of interest

  • f 4% per annum, for loans up to 0.5 million.

16

slide-17
SLIDE 17

SME policy

To create an enabling environment, a SME policy was drafted by GIZ/NEDA/Business Chambers, with support from CEFENET; and presented to the government for approval. The policy addresses:

  • individual entrepreneurial capacity;
  • access to technology;
  • access to finance;
  • access to BDS at regional level;
  • business counseling services.

17

slide-18
SLIDE 18

Thank you!