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

1.TIC as One Stop Shop 2.Background on the Linkage Program 3.Roles of TIC in Enhancing Local Productive Capacity 4.Activities Under the Program 5.Six Days ETW as a tool for mind set change 6.Status of the Program 7.Impact of program on TNCs/Large companies 8.Impact on SMEs 9.Challenges 10.Way Forward CONTENTS 2

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

 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 ( )  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 BACK GROUND ON BUSINESS LINKAGE PROGRAM 4

 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 ROLES OF TIC IN ENHANCING LOCAL PRODUCTIVE CAPACITY 5

 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 ROLES OF TIC IN ENHANCING LOCAL PRODUCTIVE CAPACITY-2 6

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 ACTIVITIES UNDER THE BUSINESS LINKAGE PROGRAM 7

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 ACTIVITIES UNDER THE BUSINESS LINKAGE PROGRAM-2 8

 Empretec Methodology focuses on ten (10) key behavioral competences of a successful Entrepreneur 1.Goal setting 2.Opportunity Seeking 3.Information Seeking 4.Persistence 5.Fulfilling commitments 6.Systematic Planning 7.Taking calculated risks 8.Efficiency 9.Quality 10.Persuasion and Networking 6 DAYS ETWs AS TOOL FOR CHANGING MIND SET OF ENTREPRENEURS 9

 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 6 DAYS ETWs AS TOOL FOR CHANGING MIND SET OF ENTREPRENEURS-2 10

 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 IMPACT OF THE PROGRAM ON TNCs/LARGE COMPANIES 11

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

 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 IMPACT OF THE PROGRAM ON SMEs-3 13

 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 CHALLENGES 14

 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 WAY FORWARD 15