Improving BSO Services and SME Performance Through Cleaner Production [DATE][SPEAKERS NAMES]

Module 4: Barriers to Cleaner Production adoption by SMEs

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit 3 Overview In this module, we will discuss:  Four important types of barriers to implementing Cleaner Production in SMEs  Approaches that can help SMEs overcome these barriers

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit 4 Motivation  Are you aware of other SMEs who have:  Successfully conducted a CP assessment?  Properly evaluated CP alternatives?  Effectively implemented CP?  Can you envision implementing CP in your own organization?  (For Business Development Services providers:) Can you envision convincing your SME clients to implement CP? Cleaner Production sounds like a good idea in principle...BUT ? ? ?

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit 5 Motivation Honestly, NO. I’m not sure If the answer to many or most of these questions is “NO” or “not sure,” why?? There are only two possible answers:

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit 6  Motivation  CP opportunities that are also good business decisions are not common  Other barriers to CP exist, and must be overcome A B The two possible answers: WRONG! Experience shows that highly profitable efficiency improvements exist even in the most competitive, well-managed businesses. !

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit 7 Four types of barriers to CP Systemic Technical Attitudinal Economic *Adapted from Chandak 1994, which recounts the experience of Project DESIRE

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit 8 Don’t take this discussion personally! This discussion of barriers in this presentation synthesizes the experience of Business Development Services (BDS) providers in helping SMEs to implement CP. “Is this MY company you are talking about?!” “Is this MY client you are talking about?!” NO!

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit 9 But... DO be honest with yourself  No enterprise is perfect.  Some barriers to CP do NOT reflect a problem with the SME. Instead, they are rational business practices within the SME’s business environment. Does this barrier apply to my organization? Does this barrier apply to my client? As we discuss these barriers, evaluate your enterprise/ clients, and ask yourself: Remember:

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit 10 Systemic Barriers to CP  Risk aversion  Ordinary production concerns taking priority  Inadequate record-keeping and reporting  Ineffective management systems  Ad hoc production planning  Lack of employee training  Turnover of technical staff 1

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit 11 Technical Barriers to CP  Limited availability of CP technology  Limited maintenance capabilities  Limited access to technical information and success stories 2 ?

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit 12 Economic Barriers to CP  Lack of financing for CP  Lack of “financing know-how”  Preference for least capital- intensive options  Poor cash flow  Poor investment planning 3 e.g. poor understanding about how to make the case for a CP investment to a financing organization

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit 13 Attitudinal Barriers to CP  Fear of failure  Lack of culture of good housekeeping  Resistance to change among employees  Lack of effective supervision/ positive leadership 4

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit 14 Scaling the barriers Are these barriers surmountable ? ?

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit 15 YES!

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit 16 These barriers are not unusual These kinds of barriers are common when an SME (or any organization) tries to implement any valuable business strategy—not just CP. CP can be integrated into, will reinforce, and benefit from: –Existing internal actions to develop the business and –Existing 3 rd -party business development services

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit 17 AND: Internal actions & 3 rd -party services that can help Implementation of the basic CP process as taught in this course Business planning (including assistance and advising) Management capacity building & development of management systems Networking/ connection to resources Employee training Providing or facilitating financing Providing or facilitating technical assistance “This is exactly what I do for my clients...” Leadership development

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit 18 Matching services & actions to systemic barriers  Risk aversion  Ordinary production concerns taking priority  Ad hoc production planning  Ineffective management systems ! ! ! ! Business planning, including assistance and advising Management capacity building  Inadequate record-keeping and reporting  Lack of employee training  Turnover of technical staff ! ! ! Technical assistance Employee training The CP Process itself

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit 19 Matching services & actions to technical barriers  Limited access to technical information  Limited maintenance capabilities  Limited access or exposure to success stories ! ! ! Provision or facilitation of technical assistance Networking/ connecting to resources Employee training THIS course directly addresses these barriers

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit 20 Matching services & actions to economic barriers  Poor investment planning  Lack of financing know-how ! ! Business planning assistance & advising THIS course directly addresses this barrier  Poor cash flow  Lack of financing availability ! ! Providing or facilitating financing  Preference for least capital- intensive options ! Prove CP with projects requiring minimum investment; work up to bigger CP projects

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit 21 Matching services & actions to attitudinal barriers  Lack of positive leadership & effective supervision  Fear of failure ! !  Lack of “good housekeeping” culture  Employee resistance to change ! ! Leadership develoment Management capacity building Effective advising Technical assistance Employee training The CP Process itself helps to address this barrier

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit 22 Technical help beyond this course  Mali-specific resources to be discussed  Several African-based organizations  Cleaner Production Centres  Wealth of technical CP information is online  See CP resource list in the course book

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit 23 Barriers? What Barriers?  Most barriers are familiar and surmountable  You and your organizations address them all the time  Over the next three days you will learn skills and tools to empower you to address unfamiliar barriers

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit 24 How this course addresses barriers Success stories and awareness of barriers Skills for SMEs to implement CP Case site visits Tools to help promote and implement CP within SMEs Today Tomorrow Day 3 Day 4