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| Micro & Small Enterprise development project for Pro-poor Growth in Sri Lanka(Enter-Growth project) |
| Project Number |
SRL/05/03M/SID 16 |
| Government Counterpart |
Ministry of Enterprise Development and Investment Promotion |
| Partners / Donors |
Sida |
| Total Project Budget |
$ 4.730 million |
| Location (State and District) |
North Central & North Western provinces (Anuradhapura, Polonnaruwa, Puttalam & Kurunegala districts) |
| Duration |
June 2005 – November 2008 |
| Sector(s) |
Micro & Small Enterprise Development |
| UNDAF/MDGs |
MDG 1 |
| Contacts |
Mr. Gemunu wijesena,
Project Manager,
Tel: +94 112 551339
Fax: +94 115 363519
Email: gw@entergrowth.com
website: www.entergrowth.com
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Background
This programme will support the implementation of the Government’s strategy for poverty reduction and the generation of quality employment for women and men through a coherent and integrated micro and small enterprise development programme that targets two provinces with a high incidence of poverty (North-West and North-Central); that addresses issues at the national level that will enhance impact in the provinces; and that transfers lessons learnt to the national policy level as well as other parts of the country.
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Objectives
The programme will contribute to the generation of pro-poor economic growth and quality employment for women and men, through an integrated programme for the development of micro and small enterprises that focuses on the North-West and North-Central provinces. The reduction in poverty and unemployment will indirectly contribute to the sustainability of peace and reconciliation.
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1. Expanded markets for services and products of micro and small enterprises of women and men in the North-West and North-Central provinces, through increased productivity and competitiveness, a stronger demand orientation, and better market linkages.
2. A policy, legislative and regulatory environment in North-West and North-Central province that is conducive to the growth of micro and small enterprises by women and men, and will bring more of them into the formal economy.
3. Authorities and communities in which the poor predominate regard starting and growing micro and small enterprises by women and men as a socially and economically attractive activity.
4. Greater access country-wide to market-led, sustainable business services for micro and small enterprises owned by women and men.
and managed financing system that is compatible with the nature of village economies.
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Strategy
In the integrated programme in the provinces, the programme will take a participative and inclusive approach to planning and developing its specific interventions, to ensure a high degree of relevance and ownership. It will focus its work on selected sub-sectors with high potential for growth and poverty reduction. Based on consultations already conducted, the primary entry point will be expanding the access of micro and small enterprises to markets for their products and services. Here, the programme will support activities that will lead to a more dynamic and effective market for business services that enable enterprises to improve their productivity, become more market-led, and develop linkages to new markets. This will include developing new, more demand-driven business services and the capacity to deliver them, including services embedded in value chains. It will also include promotion of the use of business services. Improved demand for services will also result from work on the project’s second entry point, strengthening enterprise culture. This will include a social marketing campaign that promotes enterprise as a way out of poverty, and support to the introduction of business awareness training in vocational schools. Improving the local policy and regulatory environment forms the programme’s third entry point. The programme will promote organisation of micro and small enterprises and build the capacity of business associations to serve their members, moderate the development of a dialogue between micro and small enterprises and the authorities, support specific policy and regulatory improvements, and strengthen the authorities’ capacity to develop and maintain an enabling environment.
At the national level, the programme will build on the achievements of the Start and Improve Your Business project, with the objective of a fully sustainable programme that will continue to increase access to SIYB, Expand Your Business and related business services. In addition, commercial mass media programmes will be developed that provide small businesses with information and an opportunity to voice their concerns in a public forum. The experience gained through the programmes in the provinces will be shared with national level stakeholders and representatives from other provinces.
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Progress (May 2008)
Market access
Four regional value chain exercises were completed, on coir, dairy, floriculture and packaging. One outcome of the coir value chain exercise is the development of a Good Working Practices document, in response to deplorable working conditions (including child and a form of bonded labour) in coir mills. In dairy the exercise has provided impetus to the establishment of breeding farms, a major bottle neck. The research on the two other value chains has only just been completed. The work on packaging is complemented by development of packaging training.
The regulatory environment
The major recent achievement in this area was the completion of training of 2,023 local officials on business registration and licensing. This was carried by the Sri Lanka Institute of Development Administration, with which the project is now developing certificate level courses on public administration for private sector development, to be launched later in the year.
The MSE Forums for public-private dialogue, which are key to Enter-Growth's approach, have largely been taken over by local stakeholders and show further signs of addressing business enabling environment issues independently.
Enterprise culture
The Palama campaign for enterprise culture was completed in Pollonaruwa and is ongoing in three districts. Some 140,000 people have participated in the theatre events. Palama was in charge of 10 hours of TV on New Year's day. Work on the Entrepreneurship Development curriculum with then National Institute of Education is continuing.
National level
Two e-commerce “meta-markets” have become operational, including one with the Federation of Chambers of Commerce and Industry of Sri Lanka.
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