• It positions itself strategically to exploit the linkage opportunities which exist between SME and FDI.
• It exploits opportunities for growth by adopting the right strategies (e.g. clustering & networking) in positioning itself with respect to the global markets.
• It readily takes advantage of emerging trade opportunities both locally and internationally, in the face of global trade liberalization.
• It exhibits an entrepreneurial culture. It is sharp in identifying an opportunity and swift in exploiting niche markets.
* Advise, counseling and referrals
* Policy Advocacy
To enhance the chances of getting the necessary financial support, we have prepared a checklist of the elements that will enhance a project proposals and guarantee success. These are based on SIPA’s experience over the years dealing with banks and other private sector service providers.
* Entity or business should be registered and should possess a trading license.
* Existing business should produce audited financial statements for at least the two most recent years.
* Concept must be commercially viable, technically feasible, socially acceptable, profit-oriented & environmentally friendly.
Success/Eligibility criteria ………….. Continued
* Should demonstrate a solid supply chain including a steady availability of raw material, globally acceptable manufacturing practices & guaranteed access to readily available markets.
* Venture must be market oriented demonstrating competitive & comparative advantages.
* Promoter should have a contribution of at least 25% of project cost.
* Must trained/have expertise on the trade in question or be prepared to recruit or engage a technical partner.
* Should have good banking history.
* Should be fully engaged in the day-to-day running of the business, unless proof of capable management is presented.
* Should demonstrate a good understanding of the business, especially the risks, and present proper strategies to mitigate those risks.
* Must provide credible references, e.g. bankers and other professional referees.
WHO IS A SME?
With SIPA, the size of the investment or business does not matter in defining a small and medium entrepreneur. All local entrepreneurs irrespective of size are encompassed in the classification or definition of SMEs. SIPA works with a pool of other service providers and together, the stakeholders offer a comprehensive range of relevant support services. SIPA is well positioned to assist most clients and/or refer others accordingly, depending on the types of interventions required.
MAIN ACTIVITIES OF SIPA SME DEVELOPMENT DEPARTMENT
• Provides a one-stop-shop service at SIPA to encourage start-ups and expansions by local entrepreneurs. Activities include business advise, counseling and referrals.
• Disseminates information about available business opportunities.
• Assists in improving access to finance by SMEs through concept screening so that SMEs scan ultimately present sound project proposals to financial institutions.
• Assists in the preparation of feasibility studies by managing processes in which services of accredited service providers and of co-operating partners are used for project conceptualization and design.
• Facilitates FDI/SME linkages through vertical integration, joint ventures and subcontracting /outsourcing .
• Facilitates market access by linking entrepreneurs with available assistance for participating in international trade fairs.
• Acts in liaison to link local entrepreneurs with both local and external providers of relevant assistance including technical expertise, market access and finance interventions.
• Conducts scheduled visits to the outlying areas of the country, to create business awareness.