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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!)

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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

femseda s role
FeMSEDA´s Role

assist - encourage - support

the ReMSEDAs

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

situation april 2002
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

danger
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

what to do
What to do?

Immediate Action!

Turning FeMSEDA in a ReMSEDA Service Provider

with all consequences!

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

approach
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

system
System

?

FEMSEDA

others

others

?

REMSEDA

others

others

MSE Operators

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

part i
Part I

MSE operator level

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

principle
Principle

The job of any MSE supporter

starts with the

entrepreneur!

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

micro and small entrepreneur
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

success criteria entrepreneur
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

expectations entrepreneur
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

mse problems expressed by the operators
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

opportunities entrepreneur
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

part ii
Part II

ReMSEDA level

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

remsedas
ReMSEDAs
  • Role and tasks
  • Success criteria
  • Situation today
  • Expressed and unexpressed needs

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

remseda role and tasks
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

remseda success criteria
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

remsedas situation today
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

remsedas expressed needs i
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

remsedas expressed needs ii
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

remsedas not expressed needs and opportunities
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

remsedas opinion about femseda
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

part iii
Part III

FeMSEDA level

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

femseda success criteria
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

situation may 2002
Situation May 2002

ReMSEDA`s

needs and

opportunities

FeMSEDA`s

offer

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

situation august 2002
Situation August 2002

ReMSEDA`s

needs and

opportunities

FeMSEDA`s

offer

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

situation august 2003

FeMSEDA`s

offer

Situation August 2003

ReMSEDA`s

needs and

opportunities

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

how to get there
How to get there
  • Offer real benefits (“technical aspect”)
  • Treat them as customers (“emotional aspect”)

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

immediate actions may july
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

requirements
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

next actions i august december
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

next actions ii 2003
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

conclusion i
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

conclusion ii
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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