Improving Productivity, Quality, Competitiveness, Performance Management & Business Benchmarking Training Programmes for entrepreneurs Facilitating knowledge based sustainability of economic growth by applying UNIDO methodology, IT tools and developing of best continuous improvement practices in Training & Upgrading Programmes for Entrepreneurs Measuring and Improving Business Results
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Business BenchmarkingTraining Programmes for entrepreneurs
SME mortality rate after successful start-up is high due to premature death of SMEs caused by uncontrollable losses and non- efficiencies unknown to management
?Result: Most of SMEs are running life time experiment
“W i n or D i e” !
Actual data by San Paulo Department of Statistics, Brazil:
5 billion dollars lost and 530 thousands jobs in the medium and low range of manpower are lost within one year in San Paulo State only.
1,000,000 businesses closed between 1990-2002 just in the State of San Paulo worth of 62 billion dollars in invoicing and consequent losses in taxes.
(Source: Newspaper “O Estado de San Paulo”, Economy and Business Section, 4th December 2003)
Similar situation exists in other developing countries lacking of official statistics.
Business BenchmarkingTraining Programmes for entrepreneurs
• Pre & Post Programme enterprise benchmarking, diagnostics, performance measuring, production efficiency analysis provided for each participating enterprise (customers, suppliers, non-conformances, planning, production resources' utilization, etc.)
• UNIDO Certificates of “Enterprise Business Performance Excellence“ for enterprises and “Business Performance Management Excellence” for entrepreneurs and managers based on benchmarked improvements.
• Training of SME managers in presentation of the enterprise performance results to investors and credit institutions
Business BenchmarkingTraining Programmes for entrepreneurs
Expected Results
• Improvement of Key Performance Indicators (KPI) ~ 10% in
average, e.g. Gross Profits, Productivity (Added Value per Employee), etc.
• Increase in taxation results • Benchmarking reports for each enterprise,• Documented Upgrading Programme results • Important benchmarking data for performance of industrial sectors• Investment environment improving due to increased transparency
of businesses• Certificates for Enterprise and its Management• Improved culture in management of business performance and
Business BenchmarkingTraining Programmes for entrepreneurs
Implementations
1. UNIDO integrated programme: the Republic of Komi, Russia Sustainable Industrial Development and Competitiveness, Oct. 1999
2. Strengthening of Small and Medium automotive component suppliers to deliver export quality products in India, Nov. 1999, India, New Delhi, Pune, Bangalore, Mumbai, Baroda, Nashik, Ahmednagar.
3. Application of Quality Principles To The Food Processing Sector of 7 Sub-Sahara African Countries, July 2000 Kenya, Uganda, Tanzania, Zambia, Ethiopia, and Zimbabwe.
4. Application of Quality Principles To The Leather Production Sector in Egypt, April 2001, Cairo, Egypt
Business BenchmarkingTraining Programmes for entrepreneurs
6. The workshop "Strategic and production management of industrial enterprise: application of UNIDO benchmarking and business excellence tools Pharos + Produce-Plus", UNIDO ITPO/ARCEIT Manama, Bahrain.
7. The workshops "Application of UNIDO benchmarking and business excellence tools for enterprise upgrading, strategic and production management of industrial enterprises, IMC/UNIDO workshops, Cairo – Alexandria - Borg El Arab, Egypt, February - April 2004.
8. Introducing UNIDO measurement tools for continuous improvements in quality, efficiency, productivity and competitiveness in manufacturing, Association of Lebanese Industrialists (ALI), Euro-Lebanese Center for Industrial Modernization (ELCIM), Lebanon, June – October 2004.
9. Improving Business Performance by Introducing Continuous Improvement Practices Based on UNIDO Business Performance Management Software, August – December 2004, UNIDO Programme for Palestine.
Business BenchmarkingTraining Programmes for entrepreneurs
C o n c l u s i o n s:
1. The majority of entrepreneurs, industrialists does not have sufficient knowledge, performance management tools and practices to monitor and measure their businesses, optimize decisions, eliminate inefficiencies systematically and maximize use of available resources.
2. The Training and Upgrade Programmes for SMEs introduce best continuous improvement practices and UNIDO IT tools facilitating productivity, competitiveness, quality, sustainable growth in areas where real and tangible improvements can
be made.
3. SMEs become much more transparent and better prepared for national and international investors, improving export potential.
4. The Training Programmes facilitate entrepreneurs capacity building in introduction and managing of innovations, new technologies.
Business BenchmarkingTraining Programmes for entrepreneurs
C o n c l u s i o n s (cont)
5. The Training Programmes facilitate human resource developments, managerial capacity and potential, path to ISO 9000 standardization, meeting WTO requirements, decreasing SME mortality in the regions.
6. The Training Programmes deliver unique content and provide comprehensive package of services at acceptable cost level resulting in important Knowledge Capital Gain.
7. Governmental and international support of the Training Programs is an effective way to boost economic performance and sustainability of industrials sectors in regions.
8. The programme results are measured and documented providing vital economic and industrial statistics to organizers and donors .
Business BenchmarkingTraining Programmes for entrepreneurs
Input:< N, 000 EURO per enterprise
Training Programme
with or without on-site support<12 months
1.1. The practical instruments exist and proved: The practical instruments exist and proved: Training and Upgrade Programmes for SMEsTraining and Upgrade Programmes for SMEs
2.2. The costs of fundamental improvements are The costs of fundamental improvements are reasonable and realistic compared to any other reasonable and realistic compared to any other existing options.existing options.
3.3. The results are measurable and documented.The results are measurable and documented.
Output:Measurable increase of
major indicators including net profits,
productivity, etc.
The total enterprise service package price depends on the Programme duration, national consultants salaries in country, number of participating enterprises and some other
Business BenchmarkingTraining Programmes for entrepreneurs
International Partnerships
• Representative functions: UNIDO Focal Point – National Enterprise Performance Improvement Center
• Innovative directions of working with SMEs• Addressing key national priorities defined by Governments• New projects and funding options by EU, UN, international
and national donors• Preparing SMEs for introducing innovations and new
technologies in effective and controllable way• Training of national consultants and entrepreneurs in
country or/and in Austria • Sharing national experiences and benchmarking results• Distributing UNIDO methodology, software and best
Business BenchmarkingTraining Programmes for entrepreneurs
The MessageWe welcome associations with national counterparts supporting growing SMEs industries in countries by
– Deploying
– Training (in country and/or in Europe)
– Implementing
– Improving and Benchmarking
with UNIDO Business Performance Management Solutions for entrepreneurs bringing up productivity, competitiveness, quality and making industrial development more effective sustainable and prosperous!