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An Overview of the National Business Linkage Program

An Overview of the National Business Linkage Program.  19 th ANNUAL RESEARCH WORKSHOP. By  Patrick E. Chove. Ledger Plaza Bahari Beach Hotel Dar es Salaam, Tanzania April 09-10, 2014. CONTENTS. TIC as One Stop Shop Background on the Linkage Program

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An Overview of the National Business Linkage Program

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  1. An Overview of the National Business Linkage Program  19th ANNUAL RESEARCH WORKSHOP By  Patrick E. Chove Ledger Plaza Bahari Beach Hotel Dar es Salaam, Tanzania April 09-10, 2014

  2. CONTENTS TIC as One Stop Shop Background on the Linkage Program Roles of TIC in Enhancing Local Productive Capacity Activities Under the Program Six Days ETW as a tool for mind set change Status of the Program Impact of program on TNCs/Large companies Impact on SMEs Challenges Way Forward

  3. TIC -ONE STOP SHOP • TIC works with stationed officers from key Government institutions • TRA • Ministry of Industry and Trade • BRELA • Labour • Immigration • Lands

  4. BACK GROUND ON BUSINESS LINKAGE PROGRAM The Program is run in collaboration with The United Nations Organization on Trade and Development (UNCTAD) The Program was Launched as a two years pilot case (2009-2011) Four TNCs/ Large Companies based in Dar es salaam involved during pilot phase (TBL, Shoprite, Vodacom, and NHC) After Commissioning was expanded to Northern, Southern and Lake Zones covering up to 30 Companies

  5. ROLES OF TIC IN ENHANCING LOCAL PRODUCTIVE CAPACITY • TIC is among several institutions offering interventions to MSMEs Development in the country • To maximize the impact of investment on the Tanzanian economy through enhancing business linkages • To collect Baseline information from TNCs in order to integrate them into linkage program

  6. ROLES OF TIC IN ENHANCING LOCAL PRODUCTIVE CAPACITY-2 • To conduct entrepreneurship Training Workshops (ETW) • To conduct Health check and identifying further training/service needs of SMEs graduating from ETWs • To link SMEs to Other Business Services Providers (BDS) such as Consulting firms, training centers, employers, etc. • To Coordinating and conduct policy forums • To facilitate SMEs in accessing financial services by linking them with Banks/financial institutions

  7. ACTIVITIES UNDER THE BUSINESS LINKAGE PROGRAM The program has 14 steps life cycle Identification of sector (eg. Agriculture, manufacturing, service, mining, etc) Consolidation of TNC/ Large company buy-in Identification of liaison person Identification of SMEs Baseline SME’s information assessment

  8. ACTIVITIES UNDER THE BUSINESS LINKAGE PROGRAM-2 • Consolidation of SME buy-in • Signing Ceremony • ETW Workshops by using Empretec Methodology • MSME Health Check • Follow-up training with all SMEs • TNC-SME Round tables • Linkage Policy Workshops • Impact assessment

  9. 6 DAYS ETWs AS TOOL FOR CHANGING MIND SET OF ENTREPRENEURS • Empretec Methodology focuses on ten (10) key behavioral competences of a successful Entrepreneur • Goal setting • Opportunity Seeking • Information Seeking • Persistence • Fulfilling commitments • Systematic Planning • Taking calculated risks • Efficiency • Quality • Persuasion and Networking

  10. 6 DAYS ETWs AS TOOL FOR CHANGING MIND SET OF ENTREPRENEURS-2 14 ETWs conducted in various Regions 2 ETWs in collaboration with TPSF 2 ETWs in collaboration with SIDO 280 SMEs (Empretecos) on board since its inception 30 TNC/Large Companies on board (5 in Dar es salaam, 11 in Southern Zone, 8 in Northern Zone, 6 in Lake Zone) One MoU (with Tanga Fresh Company comprising 60 farmers-Milk suppliers) Two Certified Local National Empretec Trainers and three Trainee trainers

  11. IMPACT OF THE PROGRAM ON TNCs/LARGE COMPANIES Reliable supply structure Cost reduction Flexibility and speed Productivity gains from specialization and outsourcing Reduction in fixed assets and working capital Better use of own sources (capital, human) for core activities and processes, and Increased competitiveness

  12. IMPACT OF THE PROGRAM ON SMEs-2 Increase sales Expansion of Client base Guarantee outlet for production Information on market trends for SME strategic positioning Easier access to finance Knowledge spillover

  13. IMPACT OF THE PROGRAM ON SMEs-3 Transfer of technology, know-how, production and management processes Access to coaching and technical advise Improved product standards Improved competitiveness Integration into Global value chains, and Improved managerial skills

  14. CHALLENGES Absence of independent institution that deals with enterprise development Lack of enterprise development policy Lack of enough funds Lack of skilled internal human resources to manage the program Lack of Local Sourcing policy or conditions to TNCs Reluctance by TNCs to buy-in to the program

  15. WAY FORWARD The government need to establish an institution for enterprise Development Introduction of Local sourcing requirement by TNCs/Large Local Companies To expand funding base through proposals to donors other than the Government

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