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 % 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 Objective Key Challenge Main Market Orientation SMEs information support

Target Group Medium “Fair” globalisation Small Sustainable local development Micro Poverty reduction Primary Development Objective Key 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 Objective Key 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 Objective Key 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 knowledge 1.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 SUPPORT INSTITUTION SUPPORT INSTITUTION SUPPORT INSTITUTION SUPPORT INSTITUTION SUPPORT INSTITUTION 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 16 Investment and Technology Prom Offices 35 Field Offices 29 National Cleaner Production Centres 55 Subcontracting and Partnership Exchanges 8 Technology 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 SUPPORT INSTITUTIONS MTTIUBIN

Experience in Uganda OSS set up in Kampala in 2003, private sector majority by Pilot District Business Centres being presently set up Exploring use of RET Proposed pilot with Microsoft