FeMSEDA Federal Micro and Small Enterprise Development Agency How to become a KEY PLAYER in MSE Development

1. FeMSEDA Federal Micro and Small Enterprise Development Agency How to become a KEY PLAYER in MSE Development FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

2. FeMSEDA´s Role assist - encourage - support the ReMSEDAs FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

3. Situation April 2002 • FeMSEDA does not assist - encourage - support the ReMSEDAs (They do not feel supported!) • The image of FeMSEDA as service provider for ReMSEDAs is bad! FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

4. Danger !! • FeMSEDA is at a high risk to loose its right to exist! • FeMSEDA is at a high risk to loose support from government and donors! FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

5. What to do? Immediate Action! Turning FeMSEDA in a ReMSEDA Service Provider with all consequences! FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

6. Approach • Look at the MSE operator level • Look at the ReMSEDA level • Identify their needs and opportunities and match them with actions • What actions now - May/July 2002 • What actions in the next 12 months FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

7. System ? FEMSEDA others others ? REMSEDA others others MSE Operators FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

8. Part I MSE operator level FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

9. Principle The job of any MSE supporter starts with the entrepreneur! FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

10. Micro and Small Entrepreneur • What he/she is doing? • What are their success criteria? • What he/she is expecting? • What do the see as their problems? • What opportunities do they have? FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

11. Success criteria - entrepreneur • Satisfied customers • conditions for production • “low” costs for production • low level of state intervention FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

12. Expectations - entrepreneur Favourable framework • low taxes • easy access to loans (+ low interest) • no bureaucracy • better infrastructure • no power cuts FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

13. MSE Problems- expressed by the operators • Lack of demand (market) 83 % • Lack of finance (working capital) 80 % • Lack of information and advice 57 % • Government rules and regulations 59 % • Lack of premises 40 % • Shortage of raw material 37 % FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

14. Opportunities - entrepreneur There are many - Examples: • new markets (tender participation) • new markets (by improving quality) • lower production costs (raw material) • lower production costs (equipment) FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

15. Part II ReMSEDA level FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

16. ReMSEDAs • Role and tasks • Success criteria • Situation today • Expressed and unexpressed needs FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

17. ReMSEDA - role and tasks • BDS provider for MSE (because there is not yet anybody in the regions to do that job) • Workshop of ideas and strategies to promote MSE sector (policy advice - improving framework) • Carrying out special actions (e.g. tender info centre, outsourcing/subcontracting) FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

18. ReMSEDA - success criteria • Number of MSE operators • Volume of business in MSE sector • Number of people employed in MSE If indicators increased - congratulation - good job! if not, failure! FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

19. ReMSEDAs - situation today • Struggling to find their role • lacking experienced and trained MSE trainers and advisors • lacking information (all kind) • lacking good ideas what to do and how • some have already good ideas and “best practise” experience FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

20. ReMSEDAs - expressed needs I • Human Capacity Building (they all need many MSE trainers and consultants - some technical upgrade) • Information (e.g. raw material, technical design, technology/food processing) • Help: policy advice FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

21. ReMSEDAs - expressed needs II • Advice: how to set up and market a BDS system • Advice: how to set up an Information Centre • Contacts with institutions • General assistance and ideas for successful operation FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

22. ReMSEDAs - not expressed needs and opportunities • Modern needs assessment and action planning • How to market BDS • How to edit a newsletter • How to organise exhibitions • How to explore markets for MSE FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

23. ReMSEDAs opinion about FeMSEDA • “We expected very much - but we have been disappointed” • “FeMSEDA does not give any or nearly no support” FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

24. Part III FeMSEDA level FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

25. FeMSEDA - success criteria The share of contribution to ReMSEDAs success - recognised and expressed by them which is the increase of • Number of MSE operators • Volume of business in MSE sector • Number of people employed in MSE FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

26. Situation May 2002 ReMSEDA`s needs and opportunities FeMSEDA`s offer FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

27. Situation August 2002 ReMSEDA`s needs and opportunities FeMSEDA`s offer FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

28. FeMSEDA`s offer Situation August 2003 ReMSEDA`s needs and opportunities FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

29. How to get there • Offer real benefits (“technical aspect”) • Treat them as customers (“emotional aspect”) FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

30. Immediate Actions (May-July) • ToT (management - basic) • Newsletter (Information and FeMSEDA promotion!) • One contact person for ReMSEDAs • Permanent communication • Promotion of “new FeMSEDA” FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

31. Requirements • Total commitment by FeMSEDA • “Hardware”: existing • “Software”: existing (UNIDO, GTZ) • Money: 0,00 Birr or $ FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

32. Next Actions I(August-December) • “System” to upgrade trainers and consultants (modules in MSE- marketing, finance, consultancy skills, training skills; offer to coach trainers and consultants, etc.) • Start of technical ToT • Exchange of “best practises” among ReMSEDAs • Workshop: How to set up and how to market BDS (with publication) • Publication (workshop?): How to organise exhibitions FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

33. Next Actions II(2003) • Further development of the activities following the permanent communication with ReMSEDAs • Preparation of a start up initiative (pilot action with one ReMSEDA) - Business Incubator • Creation of a national MSE matchmaking system FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

34. Conclusion I There is a good chance for the “new FeMSEDA” • as a service oriented agency • selling benefits to its customers • make the customers satisfied FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

35. Conclusion II but start today taking actions! (because there is no time left) FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA