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UNIDO Strategy to Promote ICT for SMEs
Vijit Ratnarajah Chief Technical Advisor –Business Information Networking
UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION
Nairobi, 7 December 2006
SMEs and ICTs
• Poverty - income - employment
• 90% of all enterprises are SMEs
• SME 60 - 80 % of all employment
• Promote SMEs, using of ICTs– Productivity and competitiveness– Market access and value-chains
Benefits of ICT for SMEs
• Improve internal business processes
• Access business information
• Business promotion – ebusiness
• Clustering - enetworking
Information Needs of SMEs
• Market information: export markets, raw materials
• Technologies and industrial processes
• Business opportunities and financing
• Info on skills dev training
Problems faced by SMEs
• Information difficult to access – info islands
• Ad-hoc info only-not integrated
• Global information glut; 8b web pages
• Lack of tailor made information services
Target Group
Medium
Small
Micro
Primary Development
ObjectiveKey Challenge Main Market
Orientation
SMEs information support
Target Group
Medium “Fair” globalisation
Small Sustainable local
development
Micro Poverty reduction
Primary Development
ObjectiveKey Challenge Main Market
Orientation
SMEs information support
Target Group
Medium “Fair” globalisation
Productivity enhancement for
value chain integration
Small Sustainable local
development
Creating the “missing middle”
Micro Poverty reduction
Moving from survivalist into growth mode
Primary Development
ObjectiveKey Challenge Main Market
Orientation
SMEs information support
Target Group
Medium “Fair” globalisation
Productivity enhancement for
value chain integration
Regional and Global export
markets
Small Sustainable local
development
Creating the “missing middle”
National market and
first attempts in export markets
Micro Poverty reduction
Moving from survivalist into growth mode
Local markets
Primary Development
ObjectiveKey Challenge Main Market
Orientation
SMEs information support
Key issues
• ICT fundamental for economic and soc dev• Market not responding adequately to
information needs– Social versus economic objectives– Limited creation of localized content
• Support from Gov essential - facilitating role• Effective public/private sector partnerships
are critical• Networking at national and international level• Sustainability critical requirement
Three support areas
A. National ICT strategies and policies to facilitate use of ICT
B. Competitive national ICT industries and support services
C. ICT knowledge1. SMEs information support (public/private)
2. SME e-business solutions
UNIDO approach
• Set up decentralised, demand driven services• Establish OSS for SMEs at national level• Link with OSS, network information sources• Create public-private partnerships• Ensure sustainability through commercial
services from the start of the operations• Integrate with existing and planned initiatives• Link OSS services to rural centres
UNIDO support
GOVERNMENT
SUPPORTINSTITUTION
SUPPORTINSTITUTION
SUPPORTINSTITUTION
SUPPORTINSTITUTION
SUPPORTINSTITUTION
MSMEs
ICT/information projects• Africa
– Algeria, Djibouti, Egypt, Guinea, Malawi, Mali, Morocco, Mozambique, Nigeria, Senegal, Tanzania, Tunisia, Uganda
• Asia– China, Pakistan
• Middle East– Jordan, Lebanon, Saudi Arabia
• LA– Cuba, Guatemala
• Europe– CIS, Baltic
Three phases of implementation
• Phase 1– Needs assessment and analysis– SME focused web portal
• Phase 2– Business model– OSS + capacity building– Partnership building process– Inclusion of renewable energy solutions
• Phase 3– Extension to rural areas
Business info solutions
• One-Stop-Shop - Physical location for business advice and support
• OSS as focal point linked into network of SME information support
• Provider of value-added, commercial services
BISnet – the OSS and its partners
Support networks
16Investment and
Technology PromOffices
35Field Offices
29National Cleaner
Production Centres
55Subcontracting and Partnership
Exchanges
8Technology
Centres/Networks
OSS services
• Content: Industrial, technology & market information - but difficult to make sustainable
• Other business support services required– ICT for SMEs: software applications and
training– E-business: Enterprise Internet Solutions
Basic Requirements
• Sustainability = primary objective
• Flexible ownership structure - suitable to local conditions
• Linking with existing initiatives
Sustainability of OSS
• Sustainability requires– Purchasing power > prod sector users– Services tailored to demand >> local needs
assessment– Localized business plans from inception– Ownership/mgt structures– Each centre individually sustainable; no
blue print approach
Information solutions support
GOVERNMENT
UIAUCDA SUPPORTINSTITUTIONSMTTIUBIN
Experience in Uganda
• OSS set up in Kampala in 2003, private sector majority by 2006
• 8 Pilot District Business Centres being presently set up
• Exploring use of RET
• Proposed pilot with Microsoft