 Identify competitive sectors in local economy (LoCA or other tools)  Analyse value chains  Mobilise entrepreneurs across different stages of the value chain to address gaps, exploit opportunities Nucleus : Using a group SME promotion approach to achieve LED An initiative of GTZ Sri Lanka  Entrepreneurs in working groups share problems, ideas and experiences  Support and learning network created within sectors  Activities undertaken to upgrade their enterprises and/ or influence framework conditions  Fostering inter regional and inter ethnic business linkages  Contribute to addressing gaps in the value chain  Impact on sector, local economy Approach I Approach II

Micro level Meso level Individual enterprises addressing common issues engaged in working groups Development of associations of enterprises (sectoral and geographical) National level organisations, contributions to policy Macro level Improving competitiveness Needs based enterprise development activities initiated Regional, Sectoral advancements (technology, employment, environment, BDS development etc.) Policy level conditions influenced Improving sectors Impacts on Different Levels

Some examples Macro Level:  Certified Ceylon Cinnamon ( Meso Level:  Private tea factory owners  Saw millers  Rice Millers  Printers  Floriculture sector entrepreneurs And many others continue to do activities for their sectors and industries in the Regions as a direct result of the Nucleus program Micro Level: Nucleus has been used by 6,000+ entrepreneurs across 42 sectors to implement activities aimed at improving enterprises and creating positive changes