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SME-development, from the point of view of local authority and business community

SME-development, from the point of view of local authority and business community. North-South Conference, Mwanza November 2009. ONDANGWA-LEMPÄÄLÄ-KEETMANSHOOP-KANGASALA Partnership For Local Democracy, Development And Social Innovation. CHAPTER 1:. -Profile of SME-sector

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SME-development, from the point of view of local authority and business community

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  1. SME-development, from thepoint of view of local authority and business community North-South Conference, Mwanza November 2009 ONDANGWA-LEMPÄÄLÄ-KEETMANSHOOP-KANGASALA Partnership For Local Democracy, Development And Social Innovation

  2. CHAPTER 1: -Profile of SME-sector in Ondangwa and Keetmamshoop, based on survey 2008 -National policy of LED-functions in a Local Authority

  3. JOB CREATION • Majority of enterprises have maximum 5 employees • It is important however to recognise the importance of job creation in smallest 1-3 person enterprises

  4. BUSINESS SECTORS • It is positive to recognise the number of manufacturing enterprises but there may not be need to emphasise any specific business activity in reference to the others • It may be more important to focus on factors of job creation, local value addition, profitability and sustainability • Promoting social innovation and public-private partnerships of services may contribute the economic growth significantly • Manufacturing enterprises:

  5. TURNOVER? • Average: • Keetmanshoop 1 785 452 • Ondangwa 1 373 843 • There were more manufacturing enterprises in Keetmanshoop and the enterprises are a bit older

  6. AVAILABILITY OF LABOUR • Need for employment office services should be considered

  7. START-UP CAPITAL • Financial services for smaller enterprises clearly need development • Lack of collaterals may be the main issue! • Business plans and innovations as collateral could be considered as a modern instrument

  8. EASY ACCESS TO CAPITAL? • High interest rates may be affecting growth of business • Lack of collaterals make it difficult to raise capital

  9. MAIN PROBLEMS OF ENTERPRISES

  10. INFLUENCE OF LOCAL AUTHORITY • Majority of enterprises feel that Local Authority should have more influence / cooperation / interaction with the enterprises!

  11. HOW SHOULD LOCAL AUTHORITY SUPPORT SME’S? • Keetmanshoop; • Town planning, infrastructure, start-up support, advisory support • Ondangwa; • Training, Town planning and infrastructure, start-up and other advisory support

  12. MINISTRY OF LOCAL GOVERNMENT WHITE PAPER ON SME-SUPPORT= Basic LED-functions of a Local Authority • OPEN MARKETS • SHOPPING CENTRES AND MALLS • SMALL BUSINESS INFORMATION UNITS (WITH NCCI, JCC, ODC) • PARTNERSHIPS; Industrial parks, business service providers, Vocational Training Centres • COOPERATE WITH COMMERCIAL BANKS • ENCOURAGE ACQUIRING FREEHOLD TITLES FOR COLLATERALS • REVIEW REGULATORY ENVIRONMENT FOR BUSINESS • ATTRACT VISITORS AND TOURISTS • ATTRACT INVESTMENTS • LAND USAGE FROM THE POINT OF VIEW OF BUSINESS • ENVIRONMENTAL PROTECTION FROM THE POINT OF VIEW OF BUSINESS, MANUFACTURING ETC… • IDENTIFICATION OF MARKETS COMPARATIVE ADVANTAGES

  13. CHAPTER 2: Local Economic Development Functions of Local Authority; Ondangwa & Keetmanshoop

  14. ENABLING ENVIRONMENT • LED officer, in cooperation with CEO shall promote cooperation between the Town Council and the business community and he/she shall: • Establish/Create of LED advisory committee • The committee shall discuss eg: • Comments land allocation issues from the business point of view • Local Economic development/growth strategy • Any problems on any sector, between business community and Local Authority • Any other upcoming LED-related issue • Develop and implement a Local Economic Development Strategy • Advise Council on issues that affect LED • Promote and encourage a positive relationship with other stakeholders i.e. MTI,NCCI, Regional Councils • Enhance capacity in the local physical infrastructure.

  15. RESEARCH AND DEVELOPMENT • Collecting, interpreting and analysing data that will influence future priorities and actions; • Undertake and analyse appropriate research to establish the needs and opportunities of local businesses and the local economy • Develop a strategy of finding resources for research and planning • Eg networking with other institutions

  16. SME-DEVELOPMENT • Encouraging and supporting SME development • Advise sme’s • Facilitate / coordinate advising, training and mentorship of new and existing sme’s • Facilitate technical support • Facilitate SME business access to markets • Develop and manage informal trading • Creation and management of business information and innovation centre

  17. FACILITATE FINANCE • Identifying business funding opportunities • Securing external funding support to undertake local developments • Monitoring the management of external funding for Local Economic Development re-generation • Lobby in commercial banks on behalf of the sme’s

  18. PROMOTION OF INVESTMENTS • Marketing and promotion of investment opportunities • Web-site, brochures, get editorial material published • Develop and promote tourism opportunities • Establish tourism information centre

  19. WITH CROSS-CUTTING STRATEGY: • Shall promote and encourage networking, cooperation & innovativeness for growth, job creation and diversification of the business community

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