Improving BSO Services and SME Performance Through Cleaner Production

1. Improving BSO Services and SME Performance Through Cleaner Production [SPEAKERS NAMES] [DATE]

2. Module 4: Barriers to Cleaner Production adoption by SMEs

3. Motivation Cleaner Production sounds like a good idea in principle. . .BUT • Are you aware of other SMEs who have: • Successfully conducted a CP assessment? • Properly evaluated CP alternatives? • Effectively implemented CP? • Can you envision implementingCP in your own organization? • (For Business Development Services providers:)Can you envision convincing your SME clients to implement CP? ? ? ? Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

4. Motivation Honestly, NO. If the answer to many or most of these questions is “NO” or “not sure,” why?? I’m not sure There are only two possible answers: Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

5. Motivation  The two possible answers: • CP opportunities that are also good business decisions are not common • Other barriers to CP exist, and must be overcome WRONG! Experience shows that highly profitable efficiency improvements exist even in the most competitive, well-managed businesses. ! A B Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

6. Four types of barriers to CP Systemic  1 Technical 2 Economic 3 Attitudinal  4 *Adapted from Chandak 1994, which recounts the experience of Project DESIRE. Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

7. Don’t take this discussion personally! “Is this MY company you are talking about?!” NO! This discussion of barriers in this presentation synthesizes the experience of Business Development Services (BDS) providers in helping SMEs to implement CP. “Is this MY client you are talking about?!” NO! Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

8. But. . . DO be honest with yourself Does this barrier apply to my organization? As we discuss these barriers, evaluate your enterprise/ clients, and ask yourself: Does this barrier apply to my client? Remember: • No enterprise is perfect. • Some barriers to CP do NOT reflect a problem with the SME. Instead, they are rational business practices within the SME’s business environment. Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

9. 1 Systemic Barriers to CP • Risk aversion • Ordinary production concerns taking priority • Inadequate record-keeping and reporting • Ineffective management systems • Ad hoc production planning • Lack of employee training • Turnover of technical staff Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

10. 2 Technical Barriers to CP • Limited availability of CP technology • Limited maintenance capabilities • Limited access to technical information and success stories ? Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

11. 3 Economic Barriers to CP • Lack of financing for CP • Lack of “financing know-how” • Preference for least capital-intensive options • Poor cash flow • Poor investment planning e.g. poor understanding about how to make the case for a CP investment to a financing organization Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

12. 4 Attitudinal Barriers to CP • Fear of failure • Lack of culture of good housekeeping • Resistance to change among employees • Lack of effective supervision/positive leadership Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

13. Scaling the barriers ? Are these barriers surmountable? Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

14.  YES! Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

15. These barriers are not unusual These kinds of barriers are common when an SME (or any organization) tries to implement any valuable business strategy—not just CP. CP can be integrated into, will reinforce, and benefit from:  • Existing internal actions to develop the business and • Existing 3rd-party business development services  Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

16. Internal actions & 3rd-party services that can help Business planning (including assistance and advising) Management capacity building & development of management systems Implementation of the basic CP process as taught in this course AND: Networking/connection to resources Employee training Leadership development “This is exactly what I do for my clients. . .” Providing or facilitating technical assistance Providing or facilitating financing Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

17. Matching services & actions tosystemic barriers ! • Inadequate record-keeping and reporting • Lack of employee training • Turnover of technical staff Technical assistance • Risk aversion • Ordinary production concerns taking priority • Ad hoc production planning • Ineffective management systems ! Employee training ! ! Business planning, including assistance and advising ! ! Management capacity building ! The CP Process itself Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

18. Matching services & actions totechnical barriers Provision or facilitation of technical assistance • Limited access to technical information • Limited maintenance capabilities • Limited access or exposure to success stories ! ! Networking/ connecting to resources ! Employee training  THIS course directly addresses these barriers Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

19. Matching services & actions toeconomic barriers ! Business planning assistance & advising • Poor investment planning • Lack of financing know-how ! ! • Poor cash flow • Lack of financing availability Providing or facilitating financing ! Prove CP with projects requiring minimum investment; work up to bigger CP projects ! • Preference for least capital-intensive options  THIS course directly addresses this barrier Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

20. Matching services & actions toattitudinal barriers Leadership develoment • Lack of positive leadership & effective supervision • Fear of failure ! Management capacity building ! Effective advising Technical assistance ! • Lack of “good housekeeping” culture • Employee resistance to change Employee training ! The CP Process itself helps to address this barrier Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

21. Technical help beyond this course • Mali-specific resourcesto be discussed • Several African-based organizations • Cleaner Production Centres • Wealth of technical CP information is online • See CP resource list in the course book Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

22. Barriers? What Barriers? • Most barriers are familiar and surmountable • You and your organizations address them all the time • Over the next three days you will learn skills and tools to empower you to address unfamiliar barriers Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

23. How this course addresses barriers Success stories and awareness of barriers Skills for SMEs to implement CP Case site visits Tools to help promote and implement CP within SMEs Today Tomorrow Day 3 Day 4 Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.