Strong private sector initiative led by CCC to boost small businesses
The Ceylon Chamber of Commerce (CCC), through its newly set up arm – CCC Solutions (Pvt) Ltd (CCCSL), is to undertake a long forgotten segment in the country’s economy – the empowerment of the Small and Medium Enterprises (SME) of Sri Lanka.
Chamber officials said the new unit is poised to invigorate, revamp and empower the SMEs spread over the entire country creating a ‘One-Stop-Shop’ to facilitate every need of SMEs.
Chandula Abeywickrema (centre), flanked by Suresh Shah (right) and Samantha Ranatunga (CCC Deputy Chairman).
While accepting the position that the economy of a country depends mostly on SMEs, at a media briefing held in Colombo last week to launch the ‘National Forum on Small and Medium Enterprise Empowerment (NFSMEE)’ to be held on October 13-14, Suresh Shah, Chairman, CCC said that there has been several initiatives to strengthen the SME sector, but despite these efforts, Sri Lanka is yet to identify the key role SMEs should play in the country’s economic growth plans in the next 10 years.
On the sidelines of the media briefing, the Business Times (BT) asked Chandula Abeywickrama, Managing Director, CCC Solutions (Pvt) Ltd whether it is an impossible task to improve state agencies involved in SMEs sector. It was noted that there are many instances where some of these agencies are the stumbling block, preventing business entities to grow owing to red tape and a number of cumbersome rules. He was also asked whether there is a section in their set up to facilitate the business beginners at the micro level.
In response, Mr. Abeywickrama, who built a name at the HNB where he worked for many years as a specialist in micro finance, SME development and alleviating poverty programmes, said that bringing all the stakeholders together could first eliminate overlapping responsibilities and other matters could be meticulously sorted out for the ultimate benefit of the SMEs. He said SMEs do not include micro level enterprises and they are yet to initiate facilitating micro level business beginners.
He was also asked on the barriers, if any, towards launching micro enterprises pointing out one instance where a school tried to float a company under the Young Entrepreneurs Programme with an application for Business Registration. The student involved was then shocked to receive an income tax form.
It was also noted that when at the grass-roots level people in the lowest strata try to start micro enterprises, they have to compile a number of documents like entering a child to a school and hang around the Grama Niladhari and the Pradeshiya Sabha office in addition to making various payments at various levels – the process itself discourage the ignorant applicant.
In response, he said that they would look at the micro level and once they start a unit to serve this sector they would try to streamline the procedures with the same approach that they employ in the case of SMEs. They would then study the overlapping and redundancies and most of them could be eliminated when they meet all stakeholders involved in the micro level enterprises.
He said that the creation of the NFSMEE would take the lead role as the apex body of the private sector bring the synergies between public and private sector to empower SME; CCC to become the hub for national SME development; Creation of nucleus of expert panel to empower SMEs; Collaborate and strengthen district chambers and create linkages and partnerships for SMEs with the supply and value chain entities.
He said the CCC would facilitate the engagement of the public sector including the Ministries of Finance and Planning, Economic Development, Industries and Commerce, Traditional Industries and Small Enterprise Development, Science and Technology and the Central Bank, together with the private sector and multilateral agencies like the World Bank, IFC, ADB, GTZ, UNDP, ILO and the Asia Foundation.
He said that the NFSMEE is a 2-day event which would see the participation of strategic decision and policy makers and facilitators from both the supply and demand side of the SME sector.
Mr. Abeywickrama said that as a prelude to the event, the CCC intends to create high level awareness of the importance of the SME sector across the regional forums that will address and identify specific regional issues which will be presented and discussed at the two day forum. The chamber will also install capacity building mechanisms in the respective regional chambers to assist them to empower and develop the SME sector in collaboration with all stakeholders.