eugene nizeyimana - improving the competitive strength of smes in malawi
TRANSCRIPT
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Malawi SME Development Conference, 20 April 2013
Eugene NizeyimanaChief Operating Officer, SSCG
@2013 SSCG Copyright The information contained herein is of a general nature and subject to change. Applicability of the information to specific situations should be determined through consultation with our advisers. For more information visit www.s-scg.com or contact us at [email protected]
Improving the Competitive Strength of Small Businesses in Malawi
SSCG Outlook – What we do?
Khartoum
CairoTripoli
Algiers TunisRabat
Nouakchott
Bamako
Dakar
Bissau NiameyN´Djamena
FreetownMonrovia
Yamoussoukro
OuagadougouAbuja
AccraPorto–Novo
Malabo
Sáo Tomé
Douala Bangui
Libreville
BrazzavilleKinshasa
Luanda
Windhoek
LusakaHarare
GaboronePretoria
Maseru
Maputo
Maroni
Mogadishu
Nairobi
Addis Abeba
KampalaKigali
Bujumbura
Antananarivo
Lilongwe
Djibouti
Asmara
Dodoma
Juba
Mission:Facilitate private sector development, investment and trade in Africa.Promote human capacity development: skills empowerment, knowledge transfer, innovation and entrepreneurship.Strengthen the base for growth: Improving investment climate, business infrastructure and regional integration.Foster economic growth: SMEs, industrial competitiveness, value chains development and job creation.
@2014 SSCG Copyright The information contained herein is of a general nature and subject to change. Applicability of the information to specific situations should be determined through consultation with our advisers. For more information visit www.s-scg.com or contact us at [email protected]
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YOUR LOGO
Inspiring Entrepreneurship and Innovation: Fostering SMEs Development and economic growth in Africa.
@2014 SSCG Copyright The information contained herein is of a general nature and subject to change. Applicability of the information to specific situations should be determined through consultation with our advisers. For more information visit www.s-scg.com or contact us at [email protected]
________________________________________________________________________________________________________________________@2014 SSCG Copyright The information contained herein is of a general nature and subject to change. Applicability of the information to specific situations should be determined through consultation with our advisers. For more information visit www.s-scg.com or contact us at [email protected]
A capacity building initiatives to improve business performance, efficiency , competitiveness and drive economic development.
A platform to act as a catalyst for action and to help accelerate the achievement of small businesses.
Increase the scale and pace for implementation of entrepreneurship and innovation solutions through dialogue.
Identify new innovative mechanisms and solutions to support SMEs growth in Africa
About SSCG Africa SME Growth Forum________________________________________________________________________________________________________________________
How can We Improve the Competitive Strength of Small and Medium sized Enterprises (SMEs) in Malawi?
@2014 SSCG Copyright The information contained herein is of a general nature and subject to change. Applicability of the information to specific situations should be determined through consultation with our advisers. For more information visit www.s-scg.com or contact us at [email protected]
“ The Missing Middle” Engines of Sustainable Economic Growth Classification: Based on the number of employees or on monetary measure
(capitalisation, investment turnover and sales) or a combination of two or more
Measure Employees Total Assets
Micro Enterprises
10 < less $100 K < Less
Small Enterprises
10 – 50 $100 -3 M
Medium Enterprise
50 – 300 $3 – 15 M
World Bank 2012
@2014 SSCG Copyright The information contained herein is of a general nature and subject to change. Applicability of the information to specific situations should be determined through consultation with our advisers. For more information visit www.s-scg.com or contact us at [email protected]
SME Classification
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The Role of SMEs in the Economy
Account for the bulk of the enterprise population in a country, irrespective of their levels of economic development.
Create employment opportunities.
Contribute to social development and people livelihoods.
Are prime mover of industrial development in many developed economies.
SMEs play pivotal role in building a solid industrial base.
The nursery of entrepreneurs.
@2014 SSCG Copyright The information contained herein is of a general nature and subject to change. Applicability of the information to specific situations should be determined through consultation with our advisers. For more information visit www.s-scg.com or contact us at [email protected]
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Case Studies: SMEs Contribution in a Global Perspective
@2014 SSCG Copyright The information contained herein is of a general nature and subject to change. Applicability of the information to specific situations should be determined through consultation with our advisers. For more information visit www.s-scg.com or contact us at [email protected]
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SMEs Contribution to Economic and Social Objectives
@2014 SSCG Copyright The information contained herein is of a general nature and subject to change. Applicability of the information to specific situations should be determined through consultation with our advisers. For more information visit www.s-scg.com or contact us at [email protected]
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Challenges Before SMEs
Challenges Limitations
Operation, management and entrepreneurial
• Lack of new technologies and E-commerce• Size limitations• Lack of labour skills - Inability to hire qualified and
talented people• Raw material constraints• Infrastructure limitations• Financial limitation• Lack of knowledge and inability to acquire new
management skills
Competition and exposure to global market
• Little exposure to international market• Lack of market information and commercial intelligence• Inability to forge linkages to meet large demands• Uncompetitive product – price, standards and quality• Inability to create brand loyalty• Inadequate institutional support
@2014 SSCG Copyright The information contained herein is of a general nature and subject to change. Applicability of the information to specific situations should be determined through consultation with our advisers. For more information visit www.s-scg.com or contact us at [email protected]
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Opportunities for SMEs to Exploit• The foregoing, however, does not mean that SMEs sector has no future. • The challenges noted above, in fact, are also the opportunities for SMEs to
exploit.• The new economic order has opened up several opportunities for a
discerning SMEs to expand their businesses beyond the national borders. • SMEs today have an opportunity to modernise their entire business
operations with easy access to all needed inputs, including modern technologies.
@2014 SSCG Copyright The information contained herein is of a general nature and subject to change. Applicability of the information to specific situations should be determined through consultation with our advisers. For more information visit www.s-scg.com or contact us at [email protected]
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@2014 SSCG Copyright The information contained herein is of a general nature and subject to change. Applicability of the information to specific situations should be determined through consultation with our advisers. For more information visit www.s-scg.com or contact us at [email protected]
SMEs Adaptability in Challenging Environment
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Promoting SMEs Development Consciously
Looking at challenges faced by Malawi such as: inflation, unemployment and slowdown in investments: Stakeholders need to re-look at SMEs as answer to these problems in view of their adaptability.
Technological developments, resulting in several large corporations vacating areas of manufacturing and concentrating more on marketing, technology development and diffusion, have favoured SMEs.
Recognising the positive contribution that SMEs could make to the overall economic growth. Need to deliberately promote, nurture and develop the sector.
@2014 SSCG Copyright The information contained herein is of a general nature and subject to change. Applicability of the information to specific situations should be determined through consultation with our advisers. For more information visit www.s-scg.com or contact us at [email protected]
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New Dimension of Business Development in Malawi To exploit these opportunities and become an integral part of the fast
emerging global production system, SMEs need to be competitive in a broader sense, capable of competing with foreign companies both in the domestic and international markets.
SME can only be termed as ‘competitive’ if they are able to service the required demand on time in desired quality, price and place.
Instituting SME-friendly policies and programme, with a very effective delivery mechanism can go long way in strengthening SMEs. Since the government is beset with several other responsibilities, and also have their own limitations, the private sector and other stakeholders need to be roped in to provide required support to SMEs.
@2014 SSCG Copyright The information contained herein is of a general nature and subject to change. Applicability of the information to specific situations should be determined through consultation with our advisers. For more information visit www.s-scg.com or contact us at [email protected]
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Solutions: Developing SMEs Competitive EdgeSome of the new forms of BDS that could help in improving the competitive strength of SMEs in Malawi are :
@2014 SSCG Copyright The information contained herein is of a general nature and subject to change. Applicability of the information to specific situations should be determined through consultation with our advisers. For more information visit www.s-scg.com or contact us at [email protected]
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Solutions: Developing SMEs Competitive Edge – Cont.
@2014 SSCG Copyright The information contained herein is of a general nature and subject to change. Applicability of the information to specific situations should be determined through consultation with our advisers. For more information visit www.s-scg.com or contact us at [email protected]
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________________________________________________________________________________________________________________________@2014 SSCG Copyright The information contained herein is of a general nature and subject to change. Applicability of the information to specific situations should be determined through consultation with our advisers. For more information visit www.s-scg.com or contact us at [email protected]
Key Objectives in Malawi: How we can stimulate SME growth?
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Summary: SSCG Objectives 2015________________________________________________________________________________________________________________________
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These challenges will not be met overnight. We must all continue to work together to engage the economy’s most powerful forces, entrepreneurs, the private and public sectors, to build the foundations of a new era of economic growth. We hope SSCG initiatives will help set the stage for contributions to SMEs and entrepreneurship development in Malawi.
@2014 SSCG Copyright The information contained herein is of a general nature and subject to change. Applicability of the information to specific situations should be determined through consultation with our advisers. For more information visit www.s-scg.com or contact us at [email protected]
Looking Ahead________________________________________________________________________________________________________________________
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Thank You
For further information or to discuss your organisation tailored needs, contact our advisory team at:
E: [email protected]: www.s-scg.com
@2013 SSCG Copyright The information contained herein is of a general nature and subject to change. Applicability of the information to specific situations should be determined through consultation with our advisers. For more information visit www.s-scg.com or contact us at [email protected]
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Questions & Further Enquiry________________________________________________________________________________________________________________________