1 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

2 CHAPTER 1: -Profile of SME-sector in Ondangwa and Keetmamshoop, based on survey 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 oIt may be more important to focus on factors of job creation, local value addition, profitability and sustainability oPromoting social innovation and public-private partnerships of services may contribute the economic growth significantly  Manufacturing enterprises:

5 TURNOVER?  Average: oKeetmanshoop oOndangwa oThere 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 oLack of collaterals may be the main issue! oBusiness 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; oTown planning, infrastructure, start-up support, advisory support  Ondangwa; oTraining, 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: oEstablish/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 oDevelop and implement a Local Economic Development Strategy oAdvise Council on issues that affect LED oPromote and encourage a positive relationship with other stakeholders i.e. MTI,NCCI, Regional Councils oEnhance 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 oEg networking with other institutions

16 SME-DEVELOPMENT  Encouraging and supporting SME development oAdvise sme’s oFacilitate / coordinate advising, training and mentorship of new and existing sme’s oFacilitate 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 oWeb-site, brochures, get editorial material published  Develop and promote tourism opportunities oEstablish 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