PLENARY 2 - CAPACITY BUILDING THROUGH TECHNOLOGY & KNOWLEDGE TRANSFER Diversification, Commercialization & Scaling up of SMEs Rizvi Zaheed Managing Director, Hayleys Agriculture Holdings Ltd Director, Hayleys PLC

 Goal of US$ 7000 per capita has to come from inclusive growth from all provinces, led by SMEs  Strong development of infrastructure and quality of life indicators a good base to build on  FDI important and big businesses can spur growth…..but SMEs hold the key  SMEs – Individual pioneering entrepreneurs, collaborative partnerships and transformational organizations  Advantages of single-minded entrepreneurship

 Sri Lanka offers enormous opportunities throughout the provinces and regions – Eg. Agriculture  Sri Lanka’s amazing bio-diversity  Agriculture, Aquaculture, Dairy, Horticulture, Fruits & Vegetables, Agri- Mechanization, Planting Materials, Agri Services etc.

 Managing Business Risks  Addressing Natural Risks – Droughts, Floods, Climate Change Effects  Developing a sustainable business enterprise & wealth  Opportunities for strong integration into local & global supply chains

FROM FARMER TO GLOBAL MARKETS – The Role for SMEs Global Supply Chain Links Inputs Grower/ Supplier Transformation Manufacturer / Processor Distribution Distributor Output Customers HJS Sunfrost Global Markets SME Hayleys Company/ Partner

 Seaweed Farming and Processing for Export – Northern Province (Off the seas of Mannar, Kilinochchi and Jaffna Islands)  Partnering fisher families (currently 1000 and targetting 3000 by mid-2015 and 10,000 by end- 2015)  Partnership agreements  Providing training and inputs  Processing, Logistics, Banking & Savings  Average additional monthly incomes of Rs 30,000 per family going upto Rs 45,000 per family by early 2015  Strong role for SME participation and entrepreneurship

 Floriculture – Build on local demand  Home gardens, Landscaping, Apartments  Expand product range, Concepts & Varieties  Markets in Middle East, Maldives, Asia  Innovative Concepts in Europe

 Identifying profitable product/market segments  Building critical mass and capacity  Installing processes & systems  Product development & Branding  Quality as a way of life  Marketing Collaborations and Partnerships  Entrepreneurship and Transformational Leadership

To many people, seaweed is merely something you see on the beach. But it is also a plant used in the food industry – and not just for sushi. Seaweed is grown almost like an agricultural crop, which is subsequently used as a textural agent in a range of foods across the world. The Red Seaweed variety Kappaphycus is processed into carrageenan, an ingredient that lowers the calorie content and adds texture

 Concept of Scale Economies  Establishing linkages – Forward & Backward  Developing small-holder partnerships – WIN-WIN Outcomes  Trust and mutual dependencies  Financing & banking partnerships  Practical small steps  Constant strategic focus & planning ahead  Setting organizational succession  Appetite for risk  INNOVATION ! INNOVATION ! INNOVATION

 Developing a specific agenda for each current and potential Small & Medium Enterprise  Learning from “Best Practices”  Role of Chambers in SME scaling up  Setting and re-defining structures and processes  Setting a business growth trajectory  Transformative leadership training  Value of the Triple Bottom Line – PEOPLE, PLANET & PROFIT  “Success breeds Success”