National Policy Framework For Small and Medium Enterprises (SMEs) Development ACTION PLAN Ministry of Industry and Commerce May 2016 P.O. Box 570, 73/1, Galle Road, Colombo 03, Sri Lanka Web :www.industry.gov.lk Tel.:+94 11 2392149 -50 / +94 11 2431670 Consultant -Mr. D.P.Gunawardana
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Goal Change in DB Rank* positively by 5pts every yearover the period of threeyears
Objective Improve legislative, regulatory and institutional framework including proper coordination, simplification and rationalization of procedures to create a conducive environment for SMEs
Strategy1 Improve the quality and outreach of service delivery of SMEs related Ministries, Departments, Statutory Boards, and other public and private sector institutions.
I. List the entities involved in SME related outreach of service delivery
Q1
List of entities segregated into sectors, areas, services offered.
List of entities MIC/ SME Authority/
NEDA
II. Identify the issues and potentials of the entities through a SWOT analysis
Q1
Strengths & weaknesses of each entity identified.
SWOT analysis of each identified entity.
MIC/SME Authority/ NEDA
III. Synergy development among the service delivery entities
Q1, continuous process
Networking established No. of forums held No. of networks built
MIC/SME Authority/ NEDA
IV. Provide services to SMEs through one stop shops a) Central level in relevant
ministries and central level organizations.
b) Regional level-In DS offices, Regional offices of service providers
Q1, continuous process
Establish one stop shops Successful resolution of SME
related issues at SME windows Provide services to SMEs
No. of SME window/desks established
No. of requests for services complied with
No. of SME issues solved in each window
Relevant Ministries, District Secretaries, NEDA,IDB
V. Promote a joint Forum representing SMEs Continuous
One platform created for addressing the issues of SMEs
Formation of a Joint Forum MIC, Chambers
28
Strategy 2
Support and improve infrastructure facilities including common service centers, industrial estates, incubation facilities and geographical location based clustering and SME enterprise village development mainly focus on less developed regions.
I. Identify the existing infrastructure facilities for SMEs and the requirements in the current context
Q1
The needs for infrastructure facilities identified
List of existingand required infrastructure MIC/SME Authority/
NEDA
II. Conduct a demand survey to identify the new services required and identify gaps between the existing and required services Q 2
The services provided by different institutions and the needs for new services identified
The Gaps that need to be filled, overlapping’s, duplication, and obsolete services identified.
Report on the services, demand and gaps
MIC/SME Authority/NEDA
III. Prioritize and identify the nationally important clusters
Q 3 Decision on the priority areas List of priories MIC/SME Authority/
NEDA
IV. Clustering of SMEs based on resources, marketing and services and economic efficiency
Q 4
An analysis and recommendations on the best clustering process.
Report suggesting the clustering for economic efficiency
MIC/SME Authority/ NEDA
V. Establishment of Apparel based cottage industry Q4
Improved job opportunities, empowerment of women
No of cottage industries established MIC/IDB
VI. Development of Handicraft Villages Northern, Eastern and other selected provinces
Q4
Improved job opportunities, empowerment of women
No of handicraft, handloom villages established MIC/IDB
VII. Development of projects covering blacksmith, Jewelry making on sector basis
Q 4
Development of domestic level industry, improved economic condition
No of projects completed MIC/IDB
29
Strategy 3 Strengthen public-private dialogue and partnership arrangements and development of industrial associations for more effective empowerment and involvement
II. Establish effective coordination and collaboration among, district chambers
Q 2 continuous process
Coordination & networking established.
No. of meetings, forums held MIC/SME Authority/
NEDA/ IDB
III. Strengthen the District, Regional Enterprise Forums and have more meaningful dialogue
Q 2
Availability of one forum to sort out issues relating to SMEs.
New structure, mechanism to address common issues of SMEs
Number of common issues sorted out.
MIC/ SME Authority/ NEDA
IV. Promote Corporate players-promoting backward and forward linkages involving SMEs
Q1-contineous process
Improved market for SMEs in products & services.
No of linkages established. No of subcontracts.
MIC/ SME Authority/ NEDA/ IDB
30
Strategy 4 Support women led SME and new women entrepreneurs through various measures such as women entrepreneurship development and strengthen women chambers and rewarding women entrepreneurs
Strategy 2 Establishment of a Technology Transfer and Development Fund (TTDF) with appropriate incentives to support the acquisition and adoption of modern, clean technology for SMEs
Activities Target
completion Output KPI Responsibility
I. Preparation of the draft proposal for setting up of a TTDF
Q 1 Draft proposal Proposal submitted for approval to
relevant authorities.
MIC/ NEDA
II. Enact and establishment of the fund
Q 3 Legally established fund available for technology development
TTDF legally established MIC, SME Authority/ NEDA, Ministry of Finance
III. Preparation & finalizing the detailed guidelines for TTDF & Develop management & monitoring procedures
Q3
Procedures established for operation of the fund and modern technology transfer in place
Guidelines for usage of funds
MIC, SME Authority/ NEDA, Ministry of Finance
IV. Establishment of an incentive scheme for acquisition of clean, modern technology
Q 3
Emergence of SMEs with new, clean technology
Guideline for implementing the incentive scheme
MIC, SME Authority/ NEDA, Ministry of Finance, Central Bank
V. Reviewing & revising activities of the fund based on the performance
Continuous monitoring
process
Fully functioning TTDF The fund operates in line with each objective
MIC, Ministry of Science, Technology &Research, Ministry of Finance
36
Strategy 3 Promote and conduct special technology transfer programs through the establishment of a technology bank and capacity building in training institutes
I. Identifying existing/ potential local technology sectors where market competition can be enhanced
Q 1
List of existing/potential technology sectors that can be developed
Potential technology sectors that can be developed to improve competitiveness identified
Ministry of Science, Technology & Research
II. Study viability of new technology in-terms of market competitiveness
Q 2 Report on viable technology areas
Viable areas identified
Ministry of Science, Technology & Research
III. Identifying a mechanism to acquisition of new and appropriate technology
Q 2 Mechanism established New and appropriate technology
identified.
Ministry of Science, Technology & Research
IV. Facilitation SMEs to implementation & improving quality to sustain the industry
Q 1 Continuation process
Facilities in place Improved quality product & services of SMEs
Ministry of Science, Technology & Research
V. Develop a database to disseminate information on new technology, access to such technology
Q 2
Data base set up SMEs will have access to information on new technology, innovation.
Ministry of Science, Technology &Research/ SME Authority/ NEDA
VI. Establish technology cells in universities and R&D institutions and network into a central place
Q 3
No of technology cells established
University & SMEs linked together to develop technology, research and innovation
Ministry of Higher Education & Highways, UGC
VII. System established to purchase, transfer appropriate technology from technology providers in other countries
Q 2
No of technology transfers
New appropriate technology adopted by the SMEs to be competitive in international and local market.
Ministry of Science, Technology & Research, ITI, MIC
37
Strategy 4 Recognize and reward innovative and technology leading SMEs and assist them to participate in foreign trade fairs, exhibitions and technology demonstration platforms
Activities Target/ Completion Output KPI Responsibility I. Establish a process to identify
innovative & technology leading SMEs
Q 1 A system available to identify innovative leading SMEs
Procedure developed Ministry of Science, Technology & Research,NIPO, IDB
II. Conduct awareness programmes, surveys to identify innovative SMEs
Q1 continuous process
SMEs are motivated for innovation
No. of SMEs applied Ministry of Science, Technology & Research, IDB
III. Develop a data base for innovative and technology leading SMEs
Q 1
Information on innovative and technology leading SMEs available
Data base is set up Ministry of Science, Technology & Research, MIC
IV. Design a reward system (District, Provincial & National)
Q 2
SMEs are motivated for innovation
Procedure manual Ministry of Science, Technology & Research, MIC
V. Encourage IT SMEs for patents and publications
Continuous process
SMEs are motivated for inventions and to get patent rights
No of SMEs aiming for patent rights. Ministry of Science, Technology & Research,NIPO,SME Authority/ NEDA
38
Strategy 5 Foster University – Business linkages and curriculum development of Universities and Technical and Vocational Education Training (TVET) institutions by following a consultative process with SMEs to meet the needs of the industry
Activities Target
completion Output KPI Responsibility
I. Conduct a need analysis and Identify the required knowledge & skills gaps
Q 3
Needs, gaps in skills identified. Need Analysis Report Ministry of Higher Education & Highways, Ministry of Science, Technology & Research, Vice Chancellors of Universities, Heads of Research Institutes, NEDA, IDB, NIPO
II. Assess current status of the university business linkages
Q 1 Awareness on the status of UBL Report on the status of
UBL
- do -
III. Establish a separate unit/cell in national universities to work with the SMEs
Year 2 Q1
Linkages University & Business established.
No. of cells established Ministry of Higher Education & Highways, VCs of respective Universities
IV. Establish invention and innovation club in each University
Year 1 Q1 New inventions, innovations available to be adopted by SMEs.
No of clubs established
Ministry of Higher Education , VCs of respective Universities
V. Link research and in plant training with the industries
Continuous process
No. of students trained per year
Ministry of Higher Education & Highways, VCs of respective Universities, MIC
VI. Conduct entrepreneur day & industry dialogue in Universities
Continuous process
Closer link established between University and Business/industry and the SMEs are benefited
No. of participants Ministry of Higher education & Highways, VCs of respective Universities
VII. Commence Diploma, Certificate programmes on entrepreneurship and encourage entrepreneurs to follow these courses
Year 2 Q1
A knowledgeable set of entrepreneurs created
No. of programmes established
No. of entrepreneurs who obtained academic qualifications
Ministry of Higher Education & Highways/ UGC
39
VIII. Productivity improvement programmes to be implemented by Training Institutes
Continuous activity
Improved productivity in SMEs No of programmes conducted
MSDVT, MIC
IX. Quality improvement of goods produced by SMEs, especially for the export market
Continuous activity
Improved quality of products manufactures by SMEs
No. of quality certifications issues to SMEs per year
SLSI, SME Authority/ NEDA
40
5.2.3 POLICY INTERVENTION STRATEGY ENTREPRENEURIAL CULTURE AND SKILLS DEVELOPMENT
Goal Increased numberof skilled youth entrepreneurs. Overall performance improved in the SME sector
Objective To develop skills of the entrepreneurs keeping abreast with the changing needs of the country, while creating an entrepreneurial spirit and a culture in the country
Strategy 1 Strengthen demand driven technology transfer, training and skills development programs in skills development
sector
Activities Target
completion Output KPI Responsibility
I. Conduct Need analysis of skills development
National Skills Report already available
Identification of the skills requirements of the country
The skills available, required and gaps
TVEC /UNIVOTEC
II. Update the Curricula of vocational training to suit the current requirements of the economy
Is being done at present
Dissemination of improved and updated knowledge on Entrepreneurship development to students
Improved curricula TVEC
III. Capacity development of the staff to conduct the improved programmes
Q 3
Teachers are capable of creating entrepreneurship thinking among students
No. of Trained staff
Relevant Institutions under the MSDVT
IV. Infrastructure development of the institutes to conduct the new programmes
Year 2 Q 2
Training institutes have the capacity to conduct industry demand training programmes
Training facilities improved
Relevant Institutions under the MSDVT
V. Establish innovation units in selected Vocational Training Institutes
Q 3
Industry benefitted by the innovations No of innovation units
Relevant Institutions under the MSDVT
VI. Conduct entrepreneurial skills development programmes forhigh potential areas such as SME apparel and handloom sectors
Q 2
continuous affair
Improved performance in the selected SMEs
No of programmes conducted
MIC/SLITA/ DTI
VII. Implement skills development projects for thrust areas such as leather and footwear, rubber & plastics and wood industry
Q 2
continuous affair
Improved performance in the selected SMEs
No of programmes conducted
MIC/SLITA/ IDB
41
Strategy 2 Strengthen tailor made SME entrepreneurship programs for start-ups existing enterprises and nursing programme for sick industries
Activities Target
completion Output KPI Responsibility
I. Introduce SEPI training module associated with a loan scheme
Already in practice
Spin offs, emerging new entrepreneurs based on their skills
No of students obtained the loans VTA.NAITA,DTET,NYSC
II. Provide a website access to information relevant to SME
Q 2 Availability of a website for SMEs to access information
Availability of information VTA, NAITA, DTET, NYSC,SME Authority/ NEDA
III. Establish units in vocational training Institutions to assist sick industries through nursing programmes
Q 3
Resuscitation of some industries
No of units established in TVET institutions
MSDVT, Relevant Institutions under the MSDVT
IV. Improve linkages among institutions Q 2 Optimum use of resources in institutions
No of collaborations MSDVT
42
Strategy 3
Strengthen the entrepreneurship values, thinking and attitude in the curriculum of primary. Secondary, tertiary educational institutions and technical and vocational programmes to produce job creators rather than employment seekers
Activities Target
completion
Output KPI Responsibility
I. Inculcate entrepreneurial culture starting at school level
Continuous activity
Children are aware of basics of business enterprises
Changes done in school education sytem
Ministry of Education, MSDVT
II. Entrepreneurship to be included as a subject in schools
Year 2 Q3 Children acquire knowledge on basics of business enterprises
No of curricula changes
Ministry of Education
III. Media publicity, video, dramas to promote skills acquiring and promoting entrepreneurship
Continuous activity
Awareness creation Already in action Relevant Institutions under the MSDVT and Skills Sector Development Program (SSDP)
IV. Identify potential skill of those unable to pursue higher studies in education stream at school level and direct them for skills development
continuous
Youth find a pathway to suit their abilities
No of students opted to skills acquiring
Relevant Institutions under the Ministry of Education
V. Technical and general education to be made complementary
Continuous activity
A harmonized education system
No of steps taken Ministry of Education, MSDVT
VI. Create entrepreneurial culture/thinking for those following NVQ level 1-4
Q 1
Awareness, positive attitudes No of Self-employment, entrepreneurs emerging
Relevant Institutions under the MSDVT and other Vocational Training Centres
43
Strategy 4 Special programs to develop Women and Youth entrepreneurship development and strengthen the institutional capacity of training institutions
Activities Target
completion Output KPI Responsibility
I. Offer flexible training programmes facilitating house wives to attend
Q 2 Home based women enterprises.
No. of training programmes conducted
VTA,NAITA,DTET
II. Promote women to do jobs presently confined to men only
Q 1Contineous
activity
Increase of the ratio of women engaged in vocations.
No. women who followed the training programmes
Relevant Institutions under the MSDVT
44
Strategy 5 Officially recognize, reward and motivate successful enterprises and SME heroes to create a culture conducive for entrepreneurial development
Activities Target
completion
Output KPI Responsibility
I. Identify exceptionally performing SMEs
Q2 Highly motivated exceptional group of SMEs.
No. of SMEs identified
MIC, NEDA, Chambers
II. Arrange Annual event to reward SME heroes
Q4 Exceptional performers are rewarded, a boost up for SMEs
No. of events organized
MIC, NEDA, Chambers
45
Strategy 6 Disseminate success stories, best practices and strategies adopted to the wider community through media and other outreach
Activities Target
completion
Output KPI Responsibility
I. Disseminate success stories through newspapers, TV channels and other mass media
Continuous activity
Availability of motivated youth and other enterprising people starting business
No. of articles appeared, No. TV programmes
MIC, SME Authority/ NEDA
46
Strategy 7 Strengthen and support industry related institutions, associations, chambers and bodies that support entrepreneurship and promote incubators in educational institutions of repute
Activities Target
completion
Output KPI Responsibility
I. Identify the training institutes suitable for establishing linkages
Q 1 Institutes that can develop linkages identified
List of institutions
MSDVT,SME Authority/ NEDA
II. Form institute –business linkage mechanism with the involvement of chambers trade associations etc.
Q 2
Strengthened Linkages Business linkage mechanism established
MSDVT, MIC,SME Authority/ NEDA
III. Establish incubator in identified institutes
Q 3 Business linkages established
No of incubators
MSDVT, MIC, SME Authority/ NEDA, IDB
47
Strategy 8
Strengthen extension services to cover important services such as preparation of project reports and feasibility reports for credit facilitation, provision of technical information, advisory services and quality assurance services. Support and revive viable sick industries through resuscitation fund at districts
Activities Target
completion Output KPI Responsibility
I. Capacity building of staff to prepare project/feasibility reports
Q 3 Availability of competent staff.
No.of programmes conducted, no. of staff trained
Relevant Institutions under the MSDVT
II. Establish Industry Service Units in institutions
Q 3 Availability of Technical Services of SMEs.
No. of service units
Relevant Institutions under the MSDVT
III. Conduct trainingprogrammes on preparation of project reports etc. for SMEs
Continuous SMEs equipped with the knowledge on project reports etc.
No. of programmes conducted No. of persons trained
MSDVT, MIC
48
5.2..4 POLICY INTERVENTION
STRATEGY ACCESS TO FINANCE
Goal 20% increase in SME loan disbursement in the country
Objective Strengthen the mechanisms for easy and affordable access to finance. Creating a business friendly financial environment
Strategy 1 Banks, financial institutions and leasing companies to scale-up special lending window and have special SME desks to facilitate access to credit
Activities Target
completion Output KPI Responsibility
I. Licensed banks to establish SME unit/desk at branch level
Continuous Already in progress
SMEs benefited through the dedicated unit
No. of banks Units/desks established
CBSL
II. Select suitable Finance and Leasing companies and instruct to establish SME units/desks/divisions
Q 1
SMEs benefited through the dedicated unit
All major RF have established SME units
CBSL
III. Convene a bankers/RFC/Leasing Co, CEOs meetings to discuss the strategies for SME financing
Q 1
Availability of SME friendly financing strategy.
Identified strategies for SME financing
CBSL
IV. Conduct awareness programmes to educate the entrepreneurs regarding the services available at the SME units
continuous
An increased awareness of the services at SME units amongst entrepreneurs.
No. of programmes completed (175 programmes to be conducted)
CBSL
V. Collect data on SME lending by banks and other financial institutions quarterly and monitor the progress
Continuous
CBSL is aware on the loans granted to SMEs by the banks.
Compiled data
CBSL
49
Strategy 2 Expand the SME Re-financing schemes, banking clinics, Treasury Guarantee and non- collateral based access to credit. Viability based lending be promoted and encouraged
Activities Target
completion Output KPI Responsibility
I. Study the possibility of expanding the categories of existing loan schemes under which SME financing is possible, set targets
Q1
Improved financial facilities for the SMEs
Targets achieved by major financing institutions
CBSL
II. Amend operating instructions where necessary to provide loans to SME borrow under present schemes
Q2
Improved financial facilities for the SMEs
Amended guidelines and amendments to the operating instructions CBSL
III. Conduct banking clinics for SMEs with the assistance of the Regional Offices of the CBSL
continuous
Increased awareness of the schemes available by the SMEs.
Conduct at least 6 clinics per year
CBSL
IV. Assign district wise credit targets for SMEs by Banks and RFCs
Q 1
Increased access to finance for SMEs.
Target achievement
CBSL/Banks/RFCs
V. Arrange supplier and buyer meetings, Conduct at least one meeting in the provinces per year
Q 3
Improved supply chain links No. of meetings conducted
No. of links created CBSL
VI. Explore the possibility of introducing a Treasury Guarantee Scheme for loans granted to innovative SMEs
Q 2
Improved financial facilities for the SMEs
Proposal submitted to the treasury
CBSL
VII. Banks to allocate a percentage from their profit to build their own CG fund
Q 2 Improved financial facilities for the SMEs
No .of banks established CG funds Banks and RFCs
50
VIII. Introduce very low level or no collateral credit for startups
Continuous Loans granted with less collateral or personal guarantees
No. of loans granted CBSL/Banks, RFCs
IX. Coordinate with Banks to setup community based multi stake holders organization to address the collateral issues. At least 20 groups organizations set up
Continuous
Improved financial facilities for the SMEs
No of borrowers groups/organizations formed
Banks, RFCs
X. Introduce risk rating modules by assigning additional weightage for viability of the project and the experience of the borrower
Continuous
Risk trading modules introduced by assigning additional weightage by viability.
No of loans granted based on the scheme
CBSL/Banks,RFCs
Xi. Educate the entrepreneurs on record keeping and good business practices etc. that will help the bankers to assess the projects more accurately. At least 20 entrepreneurship programmes conducted
Continuous
Improved financial management of SMEs
No of programmes conducted
CBSL
Xii. Conduct meetings to educate the bank staff on techniques of project evaluation. At least 10 programmes to be conducted
Continuous
Capacity building in Banks for project evaluation
No. of programmes conducted CBSL
Xiii. Present awards to commend well performing projects financed without collateral, at an annual ceremony
Q 4
Motivation of SMEs One Ceremony conducted/year CBSL/Banks
51
Strategy 3 Angel funds and venture capital arrangements be promoted to inject equity participation in viable SMEs
Activities Target
completion Output KPI Responsibility
I. Conduct a series of awareness programmes to educate the entrepreneurs about alternative financial arrangements
Q1 through
Q4
Increased awareness of alternate financial arrangements amongst SMEs
No. of programmes conducted CBSL
52
Strategy 4 Scale-up concessionary bank loan schemes for Women and Youth entrepreneurship development
Activities Target
completion Output KPI Responsibility
I. Make it mandatory for banks to allocate provide certain percentage of loan schemes operated by CBSL and prepare the necessary guidelines
Continuous
Increased no. of women entrepreneurs who were granted the loans
Guidelines issued and percentage of loans granted for Women and Youth entrepreneurship development
CBSL
II. Encourage self Employment Initiative Loan Scheme (SEPI) to grant loans to youth passing out of technical institutions to commence business activities
continuous
More spin-offs from Technical institutions.
No. of loans granted
CBSL
53
Strategy 5 Strengthening the capacity and skills of the officials of the banks and financial institutions with SME focused bank lending and appraisal methods.
Activities Target
completion Output KPI Responsibility
I. Organize district wise workshops to strengthen the capacity and skills of the officials of the Banks and Financial Institutions with SME focus lending and appraisal methods. At least 4 programmes conducted /year
Continuous
Capacity building in Banks and financial institutes on SME lending and appraisal methods.
No of progammes
CBSL
54
Strategy 6 Strengthen the capacities of SMEs on financing topics such as business plan, accounting book keeping and use of IT based accounting packages
Activities Target
completion Output KPI Responsibility
I. Organize dedicated training programmes and workshops in districts or DSD wise. At least one programme per qtr.
Q2 & Q3
Improved financial and project management by SMEs.
No of programmes conducted per year. No. of SMEs educated per year.
CBSL
II. Conduct meetings with relevant institutions to find ways to develop the required support structure on CRIB, BDS Providers, Chambers and CBSL
Q3
SME friendly financial support scheme.
No of meetings conducted, systems developed
CBSL
55
5.2.5 POLICY INTERVENTION
STRATEGY
MARKET FACILITATION
Goal 10% increase in exports from SMEs over the period of 3 yrs.
Objective Develop SMEs to be internationally competitive. To facilitate access to foreign and local markets through improved product quality, packaging and branding
Strategy 1
Promoting business linkages between large enterprises and SMEs and facilitate buyer-seller meetings and buy-back and sub-contracting arrangements to ensure an assured market for SMEs
Activities Target
completion Output KPI Responsibility
I. Promote and intervene in establishing linkages between SME and large enterprises
Continuous activity
SMEs find an access to market their products
No of linkages SME Authority/ NEDA
II. Arrange regular meetings between foreign buyers and SMEs, to promote their products
Continuous activity
Access to export market facilitated
No of meets EDB. Department of Commerce
III Support, guide SME to improve quality of products and services and keeping to delivery schedules etc.
Continues activity
Overall performance improvement of SMEs.
No of programmes, SMEs supported
EDB, SLSI
56
Strategy 2
Support SMEs to penetrate local and international markets through trade fairs and exhibitions
Activities Target
completion Output KPI Responsibility
I. Support, guide SME to improve quality, keeping to delivery schedules etc.
Continuous
activity
Marketing avenues created for SMEs.
No of fairs held SME Authority/ NEDA
II. Provide assistance for selected SMEs to participate in international fairs
Continuous activity
SMEs are exposed to foreign markets
No of SMEs received assistance
No. of business linkages created
EDB
III. Organize market promotion programmes for potential export areas ,such as Boat Building, rubber products
Continuous activity
Improved market for boat building
No of promotional events/programmes held
EDB, MIC
IV. Special international promotional programmes to be launched for Handlooms and Handicraft items
Continuous activity
Increased exports from the sectors
No of promotional events/programmes held
MIC/EDB
57
Strategy 3 Overseas market information will be made available to SMEs to access international market. Technical support will be extended for exporters through subsidization of their participation in the overseas exhibitions and trade fairs
Activities Target
completion Output KPI Responsibility
I. Establish an easy accessible web site for market information
Q 2
SMEs have access to information on global trade
The Market Access Map developed by the International Trade Centre www.macmap.org
Strategy 4 Road side marketing outlets will be expanded specially in tourist and heavy public visiting locations to help SMEs to market their products
Activities Target completion
Output KPI Responsibility
I. Identify potential market places and Carry out a feasibility study
Q 3
Places to establish market outlets identified
Feasibility report NEDA/ SME Authority
II. Provision of trade stalls/shops in tourist areas for craft & traditional items
Year 2 Q 4
Improved market access-local market
No of trade stalls/shops established MIC/SME Authority/ NEDA, NCC, Tourist
Board, Sri Lanka Handicrafts Board
III Provide sales centers in large cities such as Colombo, Kandy, Kurunegala targeting local market
Year 3
Improved market access-local market
No of sales centers established NEDA/ SME Authority,
CWE, MIC
59
Strategy 5 Procurement Preference Policy will be implemented to assist SMEs to increase the market share in Government procurements
Activities Target
completion Output KPI Responsibility
I. Adhere the Government procurement policy which already provide provisions for preferential treatment
Continuous
activity
Availability of an assured market for some SMEs.
Increased procurements from / contracts or orders given to SMEs
No. of SMEs which are awarded government tenders
All state institutions
60
Strategy 6 Establish SME website and e-commerce arrangements to enable the SMEs to link with exporters and buyers and strengthen their marketing network
Activities Target
completion Output KPI Responsibility
I. Establish SME website and e-commerce arrangements
Year 1 Q 4 Improved access to international market.Established
E commerce facility
EDB, SLSI, Any other Institutions
61
Strategy 7
Support product development, quality improvement, ethical practices, packaging, branding and market networking of SMEs to compete locally and internationally
Activities Target
completion Output KPI Responsibility
I. Support product development, quality improvement, ethical practices, packaging, branding and market networking
Continuous
activity
Improved access to international market.
No of programmes launched EDB, MIC, ITI
62
5.2.6 POLICY INTERVENTION
STRATEGY RESEARCH & DEVELOPMENT
Goal Increase SMEs engaged in R &D and innovation by 10% over the period of 3 yrs.
Objective To create a strong partnership among Industries, R&D institutes, academic Institutions for developing cost effective affordable new technologies and innovations and create competitive advantages
Strategy 1 Establish closer linkage between industry and research institutions and promote industry relevant applied research and adoption of research for commercial enhancement of the SMEs
Improved R&D, Innovations Ministry of Finance, Ministry of Science,
Technology & Research
67
Strategy 6 Focus research on product quality improvement, preservation techniques to extend the shelf life of products. Institutionalize quality assurance and standard certification system for SMEs
I. Encourage research by R&D institutes on product quality improvement, focusing on the export market
Continuous
Product development and quality improvement Improved access to export market
Quality certification obtained Increase of exports
SME Authority/ NEDA, Ministry of Science, Technology & Research, IDB
II. Identify the products which need to extend the shelf life and carry out research
Continuous activity
Improved market access. Techniques developed SME Authority/ NEDA, Ministry of Science, Technology& Research
III. Conduct joint research by R&D institutes and the producers
Continuous activity
Research out come Innovations Ministry of Science, Technology & Research, Ministr6y of Higher Education & Highways
IV. Draw up a scheme for quality assessment certification, and provide advisory services
Q 2
Scheme established Improved market access. SME Authority/ NEDA, Ministry of Science,Technology& Research, MIC , SLSI
68
Strategy 7
Recognize and reward public and private enterprises in applied research and assist researchers and SMEs to obtain international patents and commercialize them