Presentation By

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World Chamber Competition 2009
Presentation By The National Chamber of Commerce
of Sri Lanka (NCCSL)
Over 60 years of dedicated service to the
business community
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World Chamber Competition 2009
Sri Lanka Like No Other Land
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About us

• The first National Chamber to be established in
• Sri Lanka in 1948 aftermath of independence to
  look after the local business interests.
• Membership
• - 500 Corporates
• - 3,500 Small Medium Entrepreneurs linked
  through 20 Associations.
• Emphasis is also placed on
• - uplifting strengthening SME sector of the
  country.
• - uplifting supporting women entrepreneurs
  through self employments.
• - Strengthening rural sector through promoting
  agribusiness.

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Idea behind Grow Your Business project

• 26th December 2004 - Tsunami
• Chambers initiative to rebuild tsunami affected
  Small Medium businesses through
• Provision of raw material equipment.
  
  
  
  
• Counseling guidance.
• Linking up with Chamber Corporate for marketing
• Facilitating funding from Financial Institutions.
  

Tsunami Disaster
Above activities were funded by - The
Chamber members - UK Sri Lanka Business
Council - Hilfswerk Austria (NGO)
Helping the affected
Rs. 7.2 Mn worth raw material hand operated
machinery were given to 141 entrepreneurs
affected by Tsunami.
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Our Observations
Our interaction involvement with MSMEs
revealed the following bottle necks
opportunities for the sector development
Bottle necks

• Limited access to finances due to
• - Non-availability of collateral,
• - Unaffordable interest rates,
• - Need for personal contacts at banks,
• - Tedious application procedure,
• - High application processing cost.
• Limited market access for MSME products and
  services
• Insufficient training
• Negative social perception of MSMEs by society.

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Opportunities

• Availability of market for MSME products and
  services with large corporates in the city.
• Potential for MSMEs to become indirect
  Exporters.
• Market potential for MSMEs products / services
  in rural Sir Lanka.
• Availability of rural labour at low cost.

• Conclusion
• By providing required facilities along with
  better marketing opportunities, rural MSME
  sector could be developed to
• Make a significant contribution to the National
  economy.
• Bridge the regional disparities the poverty
  gap.
• Uplift the standard of living in the rural
  sector.
• Generate employment for rural youth.

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The Project
Grow your Business
Programme to facilitate potentially viable MSMEs
to consolidate expand their Businesses
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Main component

• Setting up of a Business Promotion Fund to
  assist MSMEs

• Sub components for long term sustainability.
• Amendment to the Chamber constitution to legally
  empower the Chamber to provide business support
  services to MSMEs.
• Program to link MSMEs with Chamber Corporate
  members for greater market access.

• Entrepreneurship training to MSMEs at their door
  step.
• Formation of a dedicated MSME unit at the
  Chamber.
• International exposure to MSMEs through overseas
  training and meetings with visiting overseas
  trade delegations.
• Formation of the NCCSL Womens Wing to support
  women entrepreneurs.

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Business Promotion Fund (BPF) (Funded by Royal
Netherlands Government)
Proposal to set up a BPF with Rs. 205.145 Mn
submitted in June 2005 was approved
Objectives of the BPF Main Objective To create
a sustainable MSME sector with a significant
contribution to the Gross Domestic Product (GDP)
employment generation.
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Objectives of the BPF Cont

• Specific objectives
• To increase the self reliance of Micro, Small
  Medium Entrepreneurs.
• To help MSMEs to adjust to the changing market
  conditions and reduce their vulnerability to
  changes.
• To enhance competitiveness market acceptability
  of MSME products and services by using modern
  technology in production.
• To encourage more value addition which would, in
  turn improve profitability and increase exports
  from the sector.
• To increase market opportunities for MSMEs
• To increase diversity of skills of MSMEs

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Utilization of BPFs

• Key areas for which funds are utilized
• To purchase machinery directly used in
  manufacturing and services.
• To obtain specialized services (certification,
  hiring consultants etc)
• To participate at special trade promotion and
  marketing activities

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Selection of Beneficiaries

• Basic Principles adopted
• Transparency
• Sustainability of businesses
• Export potential
• Availability of markets for beneficiaries
  products and services

With special emphasis on

• MSMEs in the under developed regions.
• Women entrepreneurs.

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Selection Approval Procedure
Awareness Creation
Submission of applications to the project division
Approval/ Rejection
Notification and Request for beneficiary
Contributions
Issuing Application forms through
Screening
Signing Agreement
Regional District Chambers MSME
Associations Government Institutions (IDB, EDB,
AGA etc) Directly to the Entrepreneurs
Disbursement of Funds
Project Visits
Recommendation to the independent Steering
Committee
Monitoring
Progress Report
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Small Business Categories Covered

• Motor Vehicle Repairs
• Mushrooms Cultivation
• Ornamental Fish
• Paper Plastic Based Products
• Printing
• Rice Milling Spice Grinding
• Sea Food
• Soft Toys
• Tourism
• Wooden Toys Furniture

• Clay Based products
• Coconut Oil
• Construction Metal crushers
• Confectionary
• Garments , Table Cloths/ Cushion Covers
• Gems Jewellary
• Hand Woven Lace (Traditional Beeralu)
• Horticulture, Floriculture Vegetables
• Leather Based products
• Light Engineering
• Milk Based/ Fruit Drinks

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MSMEs Products and Services
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Local Training
Fields of Training Programs Held

• Accounting for SMEs
• Marketing Strategies
• Time Management
• Labour Laws
• Customer Service Excellence
• Entrepreneurship Development
• Value Added Tax, EPF ETF
• Business Development
• Project Report Writing
• Capital Market Investment
• Mushroom Cultivation

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Overseas training

• Entrepreneurship cum Vocational Training for
  BIMSTEC countries for setting up tiny Micro and
  Small Enterprises- from 18 26 September 2006
  in West Bengal for three entrepreneurs
• Small and Medium Enterprise Management
  Development from April 16 May 04 in
  Sweden and from 17 28 September 2007
  Vietnam for three entrepreneurs
• Techniques of minimization of Post Harvest
  Losses from 27-31 October 2008 in Bangkok,
  Thailand for three entrepreneurs

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Project Achievements

• Disbursement to 609 entrepreneurs throughout the
  country including the conflict area in the North
  East with a total fund of Sri Lankan Rs. 119.9
  Mn as at December 31, 2008

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60
97
67
107
76
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65
103
1st Batch of the Recipients
Number of Enterprise supported in Provinces
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Findings of the Post Evaluation Survey on
randomly selected initial 236 beneficiaries

• 132 entrepreneurs maintains proper accounts
• 77 entrepreneurs insured their businesses
• 125 entrepreneurs introduced innovative
  products
• 75.4 increase of Female workers in
  proprietorships
• 70.2 increase of Female workers in
  partnerships
• 55.2 increase of Male workers in
  proprietorships
• 70.2 increase of Male workers in partnerships
  
• 74.4 overall increase of Female workers
• 57.9 overall increase of Male workers

Overall Employment increase is 66.1
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Employment increase (Female)
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Employment increase ( Male)
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Other achievements

• 300 MSMEs joined the Chamber as members
  avail all the Chamber services.
• Matchmaking programs of regional MSMEs with
  city corporates are underway.
• Exposure to markets through regional
  exhibitions.

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Special Achievements
Awards

• Following MSMEs received National Business
• Excellence Awards in 2008, for their
  contribution
• towards Socio Economic Development of the
• country while practicing exemplary business
• practices.
• Winner Hansi Toys Galle
• 2nd Runner up Isuru Batiks Puttalam
• Merit Wijaya Coconut Oil Mills Kurunegala

Receiving Awards
Mindset Change
With the opening of the National Chamber
Membership to MSMEs, they have become a proud
group of members of the Chamber
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Can this idea be applied to
other parts of the World?
YES ..

• It is a Viable Project to support MSMEs
• It is a new business development concept to
  assist the MSMEs who have poor access to the
  conventional finance market.
• The project has introduced the concept of cost
  sharing in investment. (an average of 20 should
  be borne by the beneficiary .

• It has created a mindset among the public that
  MSMEs are part and parcel in economic development
  and employment generation in the country (Eg
  Receiving prestigious National Business
  Excellence Awards 2008)

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Can this idea be applied to
other parts of the World?
YES ..
Cont ..

• Project has facilitated the MSMEs to produce high
  quality goods and services.
• Many beneficiaries have become indirect and
  direct exporters.
• The project successfully facilitated linkages
  between MSMEs and Corporate for mutual benefits.
  
• It has shown a significant results in employment
  generation
• Many Women Entrepreneurs have significantly
  being benefited by the project.
• The Project has given emphasis to develop the
  rural economy through agro business.

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THANK YOU
Sri Lanka Like No Other Land
Presented by Mr. C. Lal de Alwis, President
NCCSL 04th June 2009