Micro and small enterprises are the engine of growth in Sri Lanka. They are vital to local economic development, which creates jobs and raises incomes, and so contributes to a better life for all.

Enter-Growth is a project that works to realize this potential, by improving the environment and services for small enterprises. It seeks to address issues that relate to:

The project’s most basic assumption is that none of the constraints in these areas can be addressed without dialogue with and between the stakeholders in the districts, and that they need to take the lead in finding and implementing solutions. Enter-Growth’s role is that of a facilitator in this process. It brings enterprises, the Government and NGOs together to make the local economy grow in a way that benefits all.

Time and place
Colombo and the Western province are developing fast, but many other parts of the country are not benefiting much from a more open economy. Enter-Growth therefore chose to work in some of the less developed districts of the country: Kurunegala, Puttalam, Anuradhapura and Polonnaruwa, with, within these districts, a focus on the less developed divisions. Enter-Growth has offices in each of the district capitals, as well as in Colombo.

The project started on 1 June 2005, for a period of three years.

Who make it happen
The project is funded by the Swedish International Development Agency (Sida) and implemented by the International Labour Organisation (ILO), one of the UN’s specialized agencies. It resorts under the Ministry of Enterprise Development and Investment Promotion.

In the Districts, the project works with Micro and Small Enterprise Forums, chaired by the District Secretary and the Chief Secretary, with representatives of the Government, private sector and NGOs. The Forums are playing a key role in stimulating and facilitating local economic development.

Providers of services – What can Enter-Growth mean to you?
Enter-Growth believes that business and financial services or all kinds are essential for small enterprises to improve their productivity, quality and market linkages. It therefore works with providers of such services service in the districts to improve existing or develop new services. The demand for such services is identified through a participatory methodology called LOCA, which helps enterprises determine how they can strengthen their competitive advantages.

Enter-Growth does not fund service delivery or equipment. It funds technical assistance to design new services and train staff. It may also support the promotion of services, or research.

Small enterprises – What can Enter-Growth mean to you?
Enter-Growth aims to improve the environment for starting and growing enterprises. It does not provide assistance to businesses directly, but indirectly, through working with Business Associations, Chambers of Commerce, the Government and service providers. This includes work with the media, to enable them to be more useful to small enterprises. It also includes a campaign, using theatre and other media, to promote a more enterprising culture. More positive attitudes to starting and growing a business will contribute to more support for entrepreneurs.

Strong Associations and Chambers are essential for a healthy business environment. They play an important role in service provision as well as in expressing the interests of the private sector to the Government. Enter-Growth promotes their strengthening and the development of a dialogue with the Government.

Government – What can Enter-Growth mean to you?
Policies, regulations and rules at the local level often do not make starting or growing a small enterprise easy, even though the Government is in favour of private sector development. Enter-Growth provides officials with information and training so they can serve small enterprises more effectively. It also provides assistance to revise rules and regulations that are set at the local level, and the process of their application, to make them more conducive to the small enterprise sector. Its support to Small Business Associations and developing a dialogue with them means a better informed Government, which will set policies and regulations to promote the growth of local incomes and jobs.

Other development agencies – What can Enter-Growth mean to you?
Enter-Growth seeks collaboration and exchange with any agency that shares its goals and principles regarding building on local initiative and using local resources. The project already works together with Swisscontact and GTZ’s Economic Strategy Support Programme and Value Chain project.