19-08-08 lakshman wijeyewardena director general industrial services bureau role of business...
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19-08-08
Lakshman WijeyewardenaDirector General
Industrial Services Bureau
Role of Business Development Service
Providers – Implementation of Technology transfer
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19-08-08
Lakshman WijeyewardenaDirector General
Industrial Services Bureau
SME Demarcation in Sri Lanka
Based on Asset value (excluding land and building)
Small enterprises – Rs. 01 – 20 million
Medium enterprises – Rs. 21 – 50 million
Ownership Structure
80% Sole proprietorship and partnerships
Principle business market
86% Domestic
14% Exports
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19-08-08
Lakshman WijeyewardenaDirector General
Industrial Services Bureau
Role of BDS Providers
Present Business
New / Existing
Expected Business
Services ? BDS Provider
Legally accepted
Access to
finance
Profit maximized
Assured sales
Technologically sound
Higher productivity
Visionary and
objective oriented
Well planned
Non financial services
Financial Services
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19-08-08
Lakshman WijeyewardenaDirector General
Industrial Services Bureau
Types of BDS providers• Government ministries and departments
– Mostly free of charge or subsidized– Effectiveness of service delivery varies– SME’s perspective on Gvt. BDS’s– Policy making
• INGOs and NGOs– Limited focus– Absolutely free of charge– Limited to project period– Limited to target group and locality
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19-08-08
Lakshman WijeyewardenaDirector General
Industrial Services Bureau
• Associations and Societies– Sector base– Initiated because of an influence– Free services – Voluntary contribution
• Private Institutions– Specialized or multidisciplinary– Profit oriented and fee based – Sustainable market strategies
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19-08-08
Lakshman WijeyewardenaDirector General
Industrial Services Bureau
Business Development Services (BDS)
(01) Planning and Management Services
(02) Marketing Services
(03) Training Services
(04) Technical Services
(05) Policy Support and Implementation
(06) Research and Development
(07) Financing
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19-08-08
Lakshman WijeyewardenaDirector General
Industrial Services Bureau
(01) Planning and Management Services• Resource identification
• Market trends and network• Potential sectors Vs geographic areas• Evaluation of entrepreneurship competencies• Matching entrepreneurs with viable businesses• Business planning• Feasibility studies• Pre-investment studies• Performance evaluations• Financial analysis• Development of business plans• Business appraisal• Business evaluation• Accounting & auditing• Business registration & licensing• Management information systems• Linking with financial institutions• Productivity development• Business counseling• Formation of associations for mutual problem solving and lobbying
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19-08-08
Lakshman WijeyewardenaDirector General
Industrial Services Bureau
(02) Marketing Services
• Market research• Market plan• Market linkages• Trade fair & exhibitions• Advertising & sales promotion• Export / import marketing• e-marketing• Marketing evaluation• Incentive packages for market development • International Business exploration visits
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19-08-08
Lakshman WijeyewardenaDirector General
Industrial Services Bureau
(03) Training Services• Training need assessment • Training program design• Training module preparation
– Management training– Mobilization training – Enterprise development training– Vocational training– Leadership training– Technical training– Human resource development training– Business counseling– Institutional development training– Capacity development training
• Training program evaluation
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19-08-08
Lakshman WijeyewardenaDirector General
Industrial Services Bureau
(04) Technical Services
• Technical trainings (agriculture, engineering, dress making, beauticulture, electrical, etc.)
• Technology transfer
• Product development
• IT Services
• Packaging & labeling
• Quality control
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19-08-08
Lakshman WijeyewardenaDirector General
Industrial Services Bureau
• Policy Support and Implementation
Support the government or policy makers to develop new policies and involve policy changes
Support to the government for policy implementation and policy decision
Policy development research – Need & impact assessment and policy suggestions
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19-08-08
Lakshman WijeyewardenaDirector General
Industrial Services Bureau
Research and development
• Survey programs
• Need and impact assessment
• New technology identification
• New product & development
• Methodology development
• Coordination with research & development organizations
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19-08-08
Lakshman WijeyewardenaDirector General
Industrial Services Bureau
Financing• Finance Product
– Credit– Savings– Insurance– Money transfer– Bank draft
• Collateral Vs Business feasibility and entrepreneurship
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19-08-08
Lakshman WijeyewardenaDirector General
Industrial Services Bureau
Problems in SME SectorSri Lanka experience
• Small • Lack of access to market • Local or regional market focus• Infrastructure for SMEs based in rural areas• Quality of infrastructure (electricity fluctuations)• Technical weaknesses• Lack of entrepreneurship • Lack of skills (Product development, Packaging, Distribution, Sales promotion)
• Financial barriers• Inefficiencies in management of finance• IT problems and access to information• Policy decisions (tax, imports etc.)• Lack of skilled labours• Lack of a network• Low productivity
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19-08-08
Lakshman WijeyewardenaDirector General
Industrial Services Bureau
Problems associated with BDS Market• There is no standardization of BDS providers• Lack of clear cut government policy and rules and
regulations governing BDS markets• Repetitions of BDS service especially from government
sector• Free of charge or subsidized BDS services (Gvt. &
NGO) Vs Fee based BDS (Private Institutions)• Attitude of SME’s for paying BDS• Absence of coordinated effort for BDS delivery• Distorted and discontinuation of BDS markets by
projects• Lack of technically qualified officers with BDS providers
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19-08-08
Lakshman WijeyewardenaDirector General
Industrial Services Bureau
Barriers in finding, adopting & using technology
• High cost of plant & machinery & equipment• High cost of burrowed capital• Limited market opportunities for upgraded products & services• Unavailability of expertise• Unaware best technology• Unaware which technology is most needed• Personal attitudes• Reluctant to pay for BDS services• High cost of expertise • Lack of skilled labour• Environmental barriers• Rules and regulations• Different policies in the Region
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19-08-08
Lakshman WijeyewardenaDirector General
Industrial Services Bureau
Factors Affecting Competitiveness & Business Viability
• Affordable loan interest rates• Business friendly banks• Affordable power costs (in a region)• Incentives for alternative power applications• Improve product or service quality from new technology
adoption• Reduced import tariffs
and eliminate non tariff barriers• Marketing linkages & opportunities• Factory efficiency & effectiveness• Business innovativeness
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19-08-08
Lakshman WijeyewardenaDirector General
Industrial Services Bureau
Success FactorsSustainability
ImpactOut reach
Area
No. of people
Service portfolio
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19-08-08
Lakshman WijeyewardenaDirector General
Industrial Services Bureau
Effective BDS for Technology Promotion
• Reputation and image • Information with regard technology• Incentive schemes (loan etc.)• Awareness campaign (international and local exposure
to SMEs)• Technical and financial feasibilities (cost benefits) with
evidence• Cluster or Nucleus based approach for technology
procurement• Promotion of incubators• Commercial approach• Partnership or accountability (results based charging for
BDS)
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