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