By Clive M. Siachiyako
Zambia sees
micro, small and medium enterprises (MSMEs) as a mechanism for achieving more widespread social stability, as a vehicle for poverty relief, socio-economic empowerment and as a means of enhancing competitiveness to investment and trade. Without entrepreneurialism among MSMEs, Zambia’s vision of a vibrant economy characterised by growth, equity, broad-based wealth and job creation cannot become a reality. With this in mind, Zambia Development Agency (ZDA) has devised seven pillars to promote MSME growth in the country.
The first pillar focuses on facilitating skills training and entrepreneurship development. The main focus of the pillar is training MSMEs on entrepreneurship and business management skills, technical skills development, resource mobilisation skills and training particularly for business associations and other MSME associations on writing business plan/project proposals. Training the MSMEs in business etiquettes is key to Zambia’s economic future, and ZDA considers increased know-how in generating business ideas, mapping-up the business direction (business plan writing) and managing the business as planned will drive substantial economic development and growth in the country driven by the MSME sector in Zambia.
The training programmes are aimed at establishing a wealth of knowledge among MSMEs that will ignite efficiency in market analysis, business SWOT (strength, weaknesses, opportunities and threats) analysis and creatively devise ways of meandering through the bumpy-business pathways to remain afloat and achieve long-term sustenance of the business.
Global trends towards entrepreneurship show that there is need to bridge economic gaps left by large corporations and create buffer-zones for cushioning external economic shocks during economic ‘rainy days.’ Higher training surrounding entrepreneurship has been on the rise globally, and ZDA sees the need for various offerings in this field to broaden entrepreneurial explosion Zambia. This is paramount especially that there are Zambia has very few entrepreneurship modules running in business schools, which could bolster enterprising genies.
Training within the first pillar also covers the component of corporate governance, curriculum development (on a demand driven basis), and mentoring, business advisory and counseling services. Training on corporate governance promotes good corporate citizenry by MSMEs with regards to human rights, social responsibility and environmental sustainability in their business operations. It aims to build a sense of accountability amongst all directors and managers of the businesses, thus enhancing adoption of sound codes of corporate governance in the MSME sector.
Under the second pillar, ZDA facilitates the provision of information to MSMEs
relating to financial institutions and their financial products for them (MSMEs), suppliers of different raw materials/inputs and suppliers of different pieces of machinery/equipment. The information packages also include business development services providers, existing MSME associations and their various programmes, cooperating partners and their various services for MSMEs.
This component also integrates information from government agencies and their MSME-oriented programmes such as CEEC, Development Bank of Zambia (DBZ), TEVETA and National Technology Business Centre (NTBC) etc. Business and investment opportunities in various sectors and places in Zambia that are suitable for MSME investment as well as opportunities in the export market are provided under the second pillar to widen the MSMEs business prospects.
Facilitation of technological and physical infrastructure that supports MSMEs is the other pillar. Support initiatives to MSMEs within this pillar include development of Industrial and commercial estates, business incubators, common user facilities (at a fee), in areas with high entrepreneurial activities and the development of tool rooms. These facilities are aimed at reducing the burden of business efficiency due to poor support systems for MSMEs. Business incubators for instance will be established in higher schools and higher learning institutions in collaboration with the CEEC to promote business hatching and growth by students with viable projects.
The fourth pillar is centred on the provision of market support services to MSMEs through business linkages between large enterprises and MSMEs. Business linkages seek to stimulate commercial solutions in which real market opportunities for MSMEs can be identified within the value chains of corporate companies. The overall objective of the programme is to create a competitive industry which can strengthen the local economy and in which large corporations can easily find effective business partners.
The ZDA is implementing the linkage programme in collaboration with the International Labour Organisation (ILO) and the United Nations Conference for Trade and Development (UNCTAD). The initiative has been identified for proactively ensuring that foreign direct investment and the MSME sector impact positively on the local economy.
Other components under the pillar include facilitating MSMEs’ participation in international trade fairs and national shows, linking them to CEEC’s preferred procurement system, arranging quality improvements programmes in collaboration with the Zambia Bureau of Standards as well as promoting the concept of small aggregation initiatives among MSMEs.
Facilitating MSMEs’ access to affordable finance is the fifth pillar ZDA pursues to promote their growth. Lobbying for more leasing arrangements among financial institutions, sensitizing MSMEs about the Lusaka Stock Exchange’s Alternative Investments Market (AIM), and encouraging Joint Venture arrangements between MSMEs and other enterprises particularly foreign investors are some major strategies within this component.
Others are lobbying financial institutions to consider wholesale and/or group lending to MSME associations/enterprises, promoting the concept of tripartite financing schemes or invoice financing among financial institutions and promoting the concept of hire purchase financing schemes (machinery/equipment acquisition for MSMEs). This array of financial supportive initiatives’ goal is to enable MSMEs access the required capital or machinery to run their businesses without affecting operating capital for the businesses.
The ZDA further facilitates collaboration, networking and strategic alliance among MSME stakeholders. These stakeholders include ZNFU, ZCSMBA, Zambia Federation of Associations of Women in Business, Small Scale Industries Association of Zambia, DBZ, CEEC, Bankers Associations of Zambia, TEVETA, NTBC and cooperating partners, among others.
The last pillar focuses on recommending clear and implementable incentives for MSMEs to government to enhance their growth and contribution to economic development. Tax holidays (income tax, customs duty) and exemption from payment of licencing fees or manufacturing license required for such an enterprise under any law are some incentives it promotes.
The core of these pillars is to stimulate self-discovery among MSMEs, identify opportunities, generate and evaluate their business ideas (before implementing them), effectively plan on how to raise capital, starting-up the business, realise growth and finally yielding results. It is envisaged that the value of one enterprise will empower others in terms of wealth and job creation and provision of quality goods and services, thus creating a pool of entrepreneurial transplants in all sectors of the economy that will enjoy all-weather economic renaissance in the country.
Zambia sees
micro, small and medium enterprises (MSMEs) as a mechanism for achieving more widespread social stability, as a vehicle for poverty relief, socio-economic empowerment and as a means of enhancing competitiveness to investment and trade. Without entrepreneurialism among MSMEs, Zambia’s vision of a vibrant economy characterised by growth, equity, broad-based wealth and job creation cannot become a reality. With this in mind, Zambia Development Agency (ZDA) has devised seven pillars to promote MSME growth in the country.The first pillar focuses on facilitating skills training and entrepreneurship development. The main focus of the pillar is training MSMEs on entrepreneurship and business management skills, technical skills development, resource mobilisation skills and training particularly for business associations and other MSME associations on writing business plan/project proposals. Training the MSMEs in business etiquettes is key to Zambia’s economic future, and ZDA considers increased know-how in generating business ideas, mapping-up the business direction (business plan writing) and managing the business as planned will drive substantial economic development and growth in the country driven by the MSME sector in Zambia.
The training programmes are aimed at establishing a wealth of knowledge among MSMEs that will ignite efficiency in market analysis, business SWOT (strength, weaknesses, opportunities and threats) analysis and creatively devise ways of meandering through the bumpy-business pathways to remain afloat and achieve long-term sustenance of the business.
Global trends towards entrepreneurship show that there is need to bridge economic gaps left by large corporations and create buffer-zones for cushioning external economic shocks during economic ‘rainy days.’ Higher training surrounding entrepreneurship has been on the rise globally, and ZDA sees the need for various offerings in this field to broaden entrepreneurial explosion Zambia. This is paramount especially that there are Zambia has very few entrepreneurship modules running in business schools, which could bolster enterprising genies.
Training within the first pillar also covers the component of corporate governance, curriculum development (on a demand driven basis), and mentoring, business advisory and counseling services. Training on corporate governance promotes good corporate citizenry by MSMEs with regards to human rights, social responsibility and environmental sustainability in their business operations. It aims to build a sense of accountability amongst all directors and managers of the businesses, thus enhancing adoption of sound codes of corporate governance in the MSME sector.
Under the second pillar, ZDA facilitates the provision of information to MSMEs
relating to financial institutions and their financial products for them (MSMEs), suppliers of different raw materials/inputs and suppliers of different pieces of machinery/equipment. The information packages also include business development services providers, existing MSME associations and their various programmes, cooperating partners and their various services for MSMEs.
This component also integrates information from government agencies and their MSME-oriented programmes such as CEEC, Development Bank of Zambia (DBZ), TEVETA and National Technology Business Centre (NTBC) etc. Business and investment opportunities in various sectors and places in Zambia that are suitable for MSME investment as well as opportunities in the export market are provided under the second pillar to widen the MSMEs business prospects.
Facilitation of technological and physical infrastructure that supports MSMEs is the other pillar. Support initiatives to MSMEs within this pillar include development of Industrial and commercial estates, business incubators, common user facilities (at a fee), in areas with high entrepreneurial activities and the development of tool rooms. These facilities are aimed at reducing the burden of business efficiency due to poor support systems for MSMEs. Business incubators for instance will be established in higher schools and higher learning institutions in collaboration with the CEEC to promote business hatching and growth by students with viable projects.
The fourth pillar is centred on the provision of market support services to MSMEs through business linkages between large enterprises and MSMEs. Business linkages seek to stimulate commercial solutions in which real market opportunities for MSMEs can be identified within the value chains of corporate companies. The overall objective of the programme is to create a competitive industry which can strengthen the local economy and in which large corporations can easily find effective business partners.
The ZDA is implementing the linkage programme in collaboration with the International Labour Organisation (ILO) and the United Nations Conference for Trade and Development (UNCTAD). The initiative has been identified for proactively ensuring that foreign direct investment and the MSME sector impact positively on the local economy.
Other components under the pillar include facilitating MSMEs’ participation in international trade fairs and national shows, linking them to CEEC’s preferred procurement system, arranging quality improvements programmes in collaboration with the Zambia Bureau of Standards as well as promoting the concept of small aggregation initiatives among MSMEs.
Facilitating MSMEs’ access to affordable finance is the fifth pillar ZDA pursues to promote their growth. Lobbying for more leasing arrangements among financial institutions, sensitizing MSMEs about the Lusaka Stock Exchange’s Alternative Investments Market (AIM), and encouraging Joint Venture arrangements between MSMEs and other enterprises particularly foreign investors are some major strategies within this component.
Others are lobbying financial institutions to consider wholesale and/or group lending to MSME associations/enterprises, promoting the concept of tripartite financing schemes or invoice financing among financial institutions and promoting the concept of hire purchase financing schemes (machinery/equipment acquisition for MSMEs). This array of financial supportive initiatives’ goal is to enable MSMEs access the required capital or machinery to run their businesses without affecting operating capital for the businesses.
The ZDA further facilitates collaboration, networking and strategic alliance among MSME stakeholders. These stakeholders include ZNFU, ZCSMBA, Zambia Federation of Associations of Women in Business, Small Scale Industries Association of Zambia, DBZ, CEEC, Bankers Associations of Zambia, TEVETA, NTBC and cooperating partners, among others.
The last pillar focuses on recommending clear and implementable incentives for MSMEs to government to enhance their growth and contribution to economic development. Tax holidays (income tax, customs duty) and exemption from payment of licencing fees or manufacturing license required for such an enterprise under any law are some incentives it promotes.
The core of these pillars is to stimulate self-discovery among MSMEs, identify opportunities, generate and evaluate their business ideas (before implementing them), effectively plan on how to raise capital, starting-up the business, realise growth and finally yielding results. It is envisaged that the value of one enterprise will empower others in terms of wealth and job creation and provision of quality goods and services, thus creating a pool of entrepreneurial transplants in all sectors of the economy that will enjoy all-weather economic renaissance in the country.
No comments:
Post a Comment