1. Presented By Lynette P Holder

2.  Small Business Development Historical Context Characteristics of Sector Situational Analysis Future of SME Development  Is SME Development a Niche for Credit Unions?  Conclusion CCCU CONVENTION – JUNE 2009

3. From Colonisation to Emancipation CCCU CONVENTION – JUNE 2009 Planter Class Mercantile Class Peasant Class

4. Insufficient Capitalisation High Input Costs/Poor cost models Inadequate Records & Data Management Poor Management Structures Large % of Informal Businesses CCCU CONVENTION – JUNE 2009

5.  SME Development was major development model for region’s economies  Tourism, services, agriculture, manufacturing CCCU CONVENTION – JUNE 2009

6.  POLITICAL – Government-led development; combination of affirmative action & market driven competition  ECONOMIC – Understated contribution to GDP/ single largest employer – lifestyle/structured firms  SOCIAL – Significant contributor to quality of life index; reduce dependency on social services  TECHNOLOGICAL – Penetration rate is low in some sectors; Challenges of e-commerce facilities CCCU CONVENTION – JUNE 2009

8.  SMEs are flexible and responsive  Innovative  Key sources of employment generation – women, youth  Creation of backward and forward economic linkages  Ability to reduce foreign currency expenditure  Ability to enhance economic and social conditions  SMEs are in all of the major productive sectors, i.e. agricultural, industrial, manufacturing and services CCCU CONVENTION – JUNE 2009

10. Economic Growth & Development Enhance Investment Climate Reduce Dependency on Social Services Creation of Employment CCCU CONVENTION – JUNE 2009

11.  Fashion  Education  Cultural industries  Health & wellness  Professional services  Niche manufacturing  General services – back office support, medical transcription CCCU CONVENTION – JUNE 2009

12.  NICHE OR NUISANCE CCCU CONVENTION – JUNE 2009

13. Development Focus Competencies in SME Lending Capital Adequacy Value-added Services Appropriate Underwriting Model CCCU CONVENTION – JUNE 2009

14.  Development model needs to include funding & business development services  Entrepreneurship training should speak to innovation and intellectual property  Quantitative & qualitative research to inform development strategies  Sectoral developmental approach, inclusive of graduation programme  Harmonisation of MFIs’ programmes CCCU CONVENTION – JUNE 2009

15.  Reasonable risk must be taken by financiers – development approach  Credit Unions represent the institution for empowerment  There are opportunities for collaboration with Governments through Guarantee programmes CCCU CONVENTION – JUNE 2009

16. QUESTIONS ????? CCCU CONVENTION – JUNE 2009