the dichotomy within the institutional framework of smme development in botswana
Download
Skip this Video
Download Presentation
The dichotomy within the institutional Framework of SMME development in Botswana

Loading in 2 Seconds...

play fullscreen
1 / 17

The dichotomy within the institutional Framework of SMME ... - PowerPoint PPT Presentation


  • 132 Views
  • Uploaded on

The dichotomy within the institutional Framework of SMME development in Botswana. 23 October2008. SMEs make up 95% of all companies in Botswana. SMEs contribute 42% to total GDP . 95% SMMEs. 5 % (Large Enterprise). 58% (Large Enterprises). 42% (SMMEs). Firms. Contribution to GDP.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'The dichotomy within the institutional Framework of SMME ...' - Albert_Lan


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
the dichotomy within the institutional framework of smme development in botswana

The dichotomy within the institutional Framework of SMME development in Botswana

23 October2008

smes contribute 42 to total gdp
SMEs contribute 42% to total GDP.

95% SMMEs

5 % (Large

Enterprise)

58%

(Large Enterprises)

42%

(SMMEs)

Firms

Contribution to GDP

institutional framework
Institutional Framework

Cross Cutting Mandate

SME Development

Large Enterprises Development

  • Botswana National Productivity Centre (BNPC)
  • Botswana Bureau of Standards (BOBS)
  • National Development Bank (NDB)
  • Botswana Technology Centre (BOTEC)
  • Botswana Tourism Board (BTB)
  • Local Enterprise Authority (LEA)
  • Citizen Entrepreneurial Development Agency (CEDA)
  • Rural Industries Promotions Company (RIPCO)
  • Botswana Development Corporation (BDC)
  • International Financial Services Centre (IFSC)
  • Botswana Export Development and Investment Authority (BEDIA)

Dr. Gordon Murray: University of Exeter

current smme participatory map botswana
Current SMME Participatory map Botswana

Ministry of Trade and Industry

Ministry of Finance and Development Planning

Ministry of Agriculture

Ministry of Labour and Home Affairs

Ministry of Communications Science and technology

Ministry of Local Government

Ministry of Education

Advocacy

BOCCIM

SEPROT

Policy

Formulation &

legislation

Implementing policy

Finance

Credit

Accreditations

Standards

Training

Technology

Investment

CEDA, LEA, BECI, NDB, BDC, BEDIA,BNYC,BOBS, BNPC,

BOTEC,NFRTC, RIPCO (B), UNIVERSITY, JAB, BOTA

Venture

Capital,

The

Business

Clinic

WFHB

Consultants

BIDPA

Enterprise

Botswana

Support

Infrastructure

(space provision)

District and town councils

Beneficiary

SMME

local enterprise authority
Local Enterprise Authority
  • LEA was established in 2004 with the following broad functions;
      • provide business development services e.g. screening, business planning facilitation, training and mentoring.
      • identify business opportunities for existing & future SMMEs
      • promote domestic and international linkages, especially between SMMEs and Government, large business entities and other SMMEs
      • Encourage exploitation of government & large firm procurement opportunities
      • facilitate access to finance, standards via competitive improvement programs e.t.c, infrastructure, and changes in regulations
      • facilitate technology adoption & diffusion
      • promote general entrepreneurship and SMME awareness.”
deliverables of lea
Deliverables of LEA
  • foster citizen entrepreneurship and empowerment,
  • achieve economic diversification,
  • promote exports,
  • encourage the development of a competitive and sustainable SMME community,
  • create sustainable employment opportunities,
  • promote the development of vertical integration and horizontal linkages between SMMEs and the primary industries in agriculture, mining and tourism and
  • improve efficiency in the delivery of services to businesses.
deliverables
Deliverables
  • The deliverables of LEA are broad, cross cutting and demand a wide implementation span.
  • Based on a comparison between the expected deliverables and the functions there is a disequilibrium in the continuum of implementation for the achievement of results.
  • The challenge therefore is, “how do we structure the institutional framework within Botswana to bring equilibrium and also ensure effective implementation of SMME development strategies?”.
  • LEA is charged with the overall development of the SMME sector in Botswana and it is housed in the Ministry of Trade and Industry.
  • In the implementation of its mandate it is expected to collaborate with other key players as shown in the participatory map of SMME in Botswana.
  • These key players are located in different Ministries guided by their own statutory obligations and mandates.
current challenges
Current Challenges
  • While this may appear an acceptable institutional scenario, this poses considerable challenges, these being;
    • Lack of coherence in implementing SMME specific interventions.
    • Inability to prioritise targets and strategic focus
    • Inefficient and ineffective service delivery
    • lack of a national coordinating mechanism in the development of the SMME sector.
    • Weak institutional relations and synergies resulting in silo effect.
    • Narrow policy framework
a comprehensive integrated approach is required
A comprehensive & integrated approach is required

Training

Finance

Product Devt/

Technology

BOTA/UB/LEA

Marketing

CEDA/NDB/LEA

Advocacy

RIPCO/BOTEC/LEA

BTB/BEDIA/LEA

BOCCIM/BEMA/LEA

chile experience
Chile Experience
  • In Chile the SMME Agenda is coordinated by the Chile Economic Development Agency (CORFO.)
  • It is responsible for policy advice, coordination and implementation.
  • CORFO develops and implements SMME development strategies and coordinates activities of institutions who play a role in SMME development in Chile.
  • CORFO also serves as a good source of important information and the main data point for SMMEs.
  • This well coordinated and focused delivery framework and strategy has resulted in Chile achieving a high rating in terms of entrepreneurship and SMME development.
thailand and other countries experience
Thailand and other Countries experience
  • In Thailand the Office of Small and Medium Enterprises Promotion (OSMEP) is responsible policy development, coordination and the development of strategies for SMME promotion and development.
  • While not an implementing agency it coordinates all the SMME implementing agencies.
  • The Small Business Administration in the US plays an implementing, coordinating and advocacy role.
lea suggested smme participatory map for botswana
LEA suggested SMME Participatory map for Botswana

Ministry of Trade and Industry

Ministry of Finance and Development training

Ministry of Agriculture

Ministry of Labour and Home Affairs

Ministry of Communication Science and technology

Ministry of Local Government

Policy

Formulation &

legislation

Implementing policy

Finance

Credit

Accreditations

Standards

Training

Technology

Investment

LEA

(Implement, Coordinate and Ensure Delivery of SMME Development)

Advocacy

BOCCIM

BMO

&

Associations

SEPROT

CEDA, BECI, NDB, BDC, BEDIA,BNYC,BOBS, BNPC,

BOTEC,NFRTC, RIPCO (B), UNIVERSITY, JAB, BOTA

Venture

Capital,

The

Business

Clinic

WFHB

Consul

tants

BIDPA

Enterprise

Botswana

Support

Infrastructure

(space provision)

District and town councils

Beneficiary

SMME

way forward
Way forward
  • Our experience on SMME development in Botswana is that a lack of well coordinated SMME development agenda makes it very difficult to efficiently and effectively serve the SMMEs.
  • Countries that have a well coordinated SMME development Framework like Chile, Thailand, Taiwan, Netherlands and South Korea consistently achieve higher TEA and FEA in the Global Entrepreneurship Monitor (GEM) reports.
  • We believe that SMMEs can be assisted more effectively through a one-stop-authority, of a similar nature to OSMEP in Thailand and CORFO in Chile. This Authority should be responsible for SMME development strategies, implementation and coordination of all SMME development activities in the Country. A streamlined and well coordinated framework will make it easier to Monitor and evaluate performance and effectiveness of all institutions and programmes.
  • We are currently proposing changes of similar nature to our SMME participatory map.
  • This will also make it easier to mainstream entrepreneurship and SMME issues within the government policies.
ad