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






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FeMSEDA Federal Micro and Small Enterprise Development Agency How to become a KEY PLAYER in MSE Development. FeMSEDA´s Role. assist - encourage - support the ReMSEDAs. Situation April 2002. FeMSEDA does not assist - encourage - support the ReMSEDAs (They do not feel supported!)
FeMSEDA Federal Micro and Small Enterprise Development Agency How to become a KEY PLAYER in MSE Development

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Slide 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

Slide 2

FeMSEDA´s Role

assist - encourage - support

the ReMSEDAs

FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

Slide 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

Slide 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

Slide 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

Slide 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

Slide 7

System

?

FEMSEDA

others

others

?

REMSEDA

others

others

MSE Operators

FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

Slide 8

Part I

MSE operator level

FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

Slide 9

Principle

The job of any MSE supporter

starts with the

entrepreneur!

FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

Slide 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

Slide 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

Slide 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

Slide 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

Slide 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

Slide 15

Part II

ReMSEDA level

FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

Slide 16

ReMSEDAs

  • Role and tasks

  • Success criteria

  • Situation today

  • Expressed and unexpressed needs

FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

Slide 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

Slide 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

Slide 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

Slide 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

Slide 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

Slide 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

Slide 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

Slide 24

Part III

FeMSEDA level

FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

Slide 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

Slide 26

Situation May 2002

ReMSEDA`s

needs and

opportunities

FeMSEDA`s

offer

FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

Slide 27

Situation August 2002

ReMSEDA`s

needs and

opportunities

FeMSEDA`s

offer

FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

Slide 28

FeMSEDA`s

offer

Situation August 2003

ReMSEDA`s

needs and

opportunities

FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA

Slide 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

Slide 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

Slide 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

Slide 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

Slide 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

Slide 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

Slide 35

Conclusion II

but

start today

taking actions!

(because there is no time left)

FeMSEDA Ethiopia - April/May 2002 - Uli Lachenmaier GTZ/GFA


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