Nigeria: High Microfinance Interest Rates Cause Loan Defaults

There is increasing fear that the high default rate among fund borrowers from the microfinance banks may soon ruin the nascent banking institutions, The Guardian investigation has revealed.

High interest charged by the microfinance banks has been discovered to be the reason behind the alarming default. A microfinance loan is a facility granted by a microfinance bank to an individual or a group of borrowers, whose principal source of income is derived from business activities involving the production or sale of goods and services.

The maximum principal amount stipulated by the Central Bank of Nigeria (CBN) guidelines that a microfinance bank can grant to a client is N500,000 and this may be reviewed from time to time by the apex bank.

By practice, a microfinance loan is granted to the customers of microfinance banks, such as peasant farmers, artisans, fishermen, women, senior citizens and non-salaried workers in the formal and informal sectors. The loans are usually unsecured, but typically granted on the basis of the applicant’s character and the combined cash flow of the business and household.

Microfinance loans may require joint and several guarantees of one or more persons. The repayment may be on a daily, weekly, or monthly basis in accordance with amortisation schedule in the loan contract.

Although the CBN’s guidelines provide that the tenure of microfinance loans should be 180 days (6 months), and in the case of crops with longer gestation period, a maximum tenure of twelve months may be permitted, but nowadays in Nigeria, rarely can a microfinance bank customer get such tenor of loan.

The Guardian’s investigation revealed that majority of the microfinance banks prefers to give out loans on monthly basis. And those, who may need the fund for more than a month are required to roll it over at the end of each month and pay the agreed interest upfront.

Available data indicate that there are currently about 800 microfinance banks all over the country and many of them are now groaning under the burden of unpaid loans granted to their clients.

http://www.microcapital.org/news-wire-nigeria-high-microfinance-interest-rates-cause-loan-defaults/

British Columbia  at forefront of small-business growth

Strong immigration is one reason B.C. should remain a top province for small and medium size businesses (SMEs), according to a report Monday from CIBC World Markets.“British Columbia, the province with the largest economic contribution from small business, will remain an attractive spot for SMEs due to economic growth that is likely to match the national average, high small business survival rates, and a projected strong inflow of new immigrants,” the report concluded.However, it also noted: “British Columbia is also highly sensitive to a rise in the dollar, largely due to its reliance on the forestry industry.”

http://www.vancouversun.com/business/forefront+small+business+growth+report+says/2069421/story.html

Research by Aviva: 56% of SMEs diversify to survive

According to new research by Aviva over half of SMEs (small and medium-sized enterprises) have embarked upon a diversification strategy to enhance their chances of surviving the recession.Broadening the product/service range, weekend opening, lengthening opening hours and widening the customer base are all common steps that have been taken by SMEs to try and shore up their position.Less popular options include reducing headcount, lowering pay and offering new discounts.Only one in 50 of those surveyed confirmed they had requested support from one of the Government’s business assistance programmes.

http://www.insurancedaily.co.uk/2009/09/29/aviva-56-of-smes-diversify-to-survive/

France:  2 bln Euros promised for  small French firms

French President Nicolas Sarkozy announced measures worth 2 billion euros ($2.9 billion) to help strengthen the capital base of small and medium-sized firms hit by the financial crisis. Smaller French firms were especially hard hit when banks were caught by the near-meltdown of the financial sector and abruptly stopped lending. But they have long had capitalisation problems.

http://www.forbes.com/feeds/afx/2009/10/05/afx6965621.html

Uganda: Fina Bank Finds Niche Market in SME's

Fina Bank, currently linked to the Bankom network, launched its operations in Uganda in October 2008 to join the other 23 banks that are operational in Uganda. SME definition is wide and covers all types of business such as sole proprietors, partnership or limited liability companies. It could be manufacturing or trading.

http://allafrica.com/stories/200910060124.html

Africa: Standard Chartered Bank launches SME month

The Standard Chartered Bank has announced the launch of its 2009 Africa SME Month. The programme will run throughout October, and will provide a platform to significantly deepen the bank's understanding of its Small and Medium Enterprises customers' requirements and to drive their continued development.The bank believes the SMEs sector in Africa currently accounts for between 30 to 60 per cent of the Gross Domestic Product, saying it will be a key driver of sustainable economic growth in the continent within the next decade.

UK : SMEs lack awareness about financial support from Government.

In a study conducted by the Asset Based Finance Association (ABFA) found that 56 per cent of SMEs surveyed were aware of the amount of financial support available from the Government. The SMEs were asked by the ABFA if they were aware of the Enterprise Finance Guarantee Scheme, Working Capital Scheme or the Capital Enterprise Fund, which have all been developed by the Government to provide much needed financial support to the country's small businesses. A massive 56 per cent came back and said that they hadn't heard of any of the schemes

http://www.abfa.org.uk/

India: SMERA to rate more SMEs

The SME Rating Agency of India (SMERA) plans to rate about 3,000 small and medium enterprises before the end of March 2010. The total number of SMEs rated by different agencies in the country so far was about 15,000. Given the large number of SMEs in the country, the number rated was miniscule. The SMERA had Memorandum of Understanding with 26 banks and 14 of them offered preferential treatment to well-rated units. Several private equity and venture capital funds were interested in increasing their exposure to SMEs.

http://www.thehindu.com/2009/09/07/stories/2009090755000600.htm

National Rural Livelihood Mission(NLRM) A fresh lease of life for the rural people living below the poverty line (BPL)

The Ministry of Rural Development, Government of India, would re-design and re-structure the present Swarnjayanti Gram Swarojgar Yojana (SGSY) into a National Livelihood Mission (NRLM). NRLM would form as a cornerstone of national poverty reduction strategy(NPRS). The objective of the Mission is to reduce poverty among rural BPL by promoting diversified and gainful self-employment and wage employment opportunities which would lead to an appreciable increase in income on sustainable basis. The Rural Livelihoods Mission is proposed to have a three-tier interdependent structure. At the apex of the structure will be the National Rural Livelihoods Mission, under the Ministry of Rural Development, Govt. Of India. At the State level, there will be an umbrella organization under the State Department of Rural Development/ Department which is responsible for implementing self-employment/rural livelihoods promotion programs. The State level Mission with dedicated professionals and domain experts under the State department of Rural Department will be guided financially, technically and supported by the NRLM on need basis. The National and the State Mission will have a symbiotic relationship

Source: PIB Press Release,

Outsourcing Resolutions for Start-up Businesses

Small businesses or more commonly referred to as Small and Medium Enterprises (SMEs) form a huge part of the economy’s backbone. By no means do giant corporations dominate the US economy. Depending on the classification, these SMEs employ 20 people or less, 21 to 99 in some cases and 100 to 499 in other bigger companies. These start-up businesses, we can say, may not have the big capital of big gunned corporations but combined they form as much as 99% of all firms in some economies. They are definitely a force to reckon with. Because capital may be limited in some, it only makes sense for these SMEs to utilize their resources properly, minimizing costs of production as much as possible. In this information technology era, it pays to take full advantage of the use of the internet. SMEs need marketing materials as well to grow or expand the business.

http://www.dailybacktrack.com/marketing/outsourcing-resolutions-for-start-up-businesses/

Saudi Arabia's small businesses among the most optimistic in key emerging markets

Saudi Arabia's small business sector is among the most optimistic of 12 key emerging markets studied in a new HSBC survey, 'Emerging Markets Small Business Confidence Monitor. Small business sentiment across the Kingdom is largely positive in their 12 month outlook toward three key areas:
Investment - in their businesses; Foreign trade - especially with China and Asia.
Recruitment. The survey shows that 39% of Saudi businesses with a turnover of less than $30m (SR112.5m) expect to increase capital expenditure while only 19% believe investment in their companies will slow down. Overall, the leaders of Saudi Arabia's smaller business sector - the vital fuel of every country's economy - are more positive about the short term outlook than their counterparts in almost all other emerging markets surveyed,"

http://www.ameinfo.com/208690.html

SME HRD & Training

SriLanka: Training for SMEs in Food and Beverages sector vital

SMEs in Sri Lanka have been unable to adopt economically and environmentally sound sustainable technologies due to lack of access to expertise and technical assistance. Therefore, training is vital for this sector, said Ceylon Chamber of Commerce Chairman Dr Anura Ekanayake. more than 50 percent of the enterprises in Sri Lanka fall under the SMEs and they make a significant contribution to the industrial output of Sri Lanka, but the majority of them use obsolete technologies that consume a large amount of energy creating a serious impact on the cost of production as well as the environment and society. National Chamber of Commerce Deputy President Asoka Hettigoda said that small and medium entrepreneurs should be educated as to how costs can be reduced in their industries.

http://www.dailynews.lk/2009/09/07/bus03.asp

Israel-Kenya Coooperation:

Israeli model farms to boost food supply

Israel plans to donate model farms that use very less water and inputs like fertiliser to achieve greater yields. The model farms, measuring an eighth or 12.5 per cent of an acre are used to grow food for sale, and can generate up to KES 200,000( US$ 2000) each six- month season.( 1 USD = 75.757 KES)The model farms, some of which have been distributed are part of the country’s agriculture technology transfer from Israel to Kenya. These farms can be used by small holder farmers. The model farms are expected to play a dual role of helping to ease rural-urban migration, a challenge currently facing Kenya. One of the causes for the migration is that the youth do not want to engage in agribusiness, because they find it not financially rewarding. The model farms, with the ability to generate income comparable to that of cash crops like tea are seen as part of the solution to taming the exodus of the youth to urban areas with their high income turnover expected to attract the youth into agribusiness.

http://www.businessdailyafrica.com/Company%20Industry/-/539550/666504/-/u6i7akz/-/index.html

UN - World Economic Crisis Could Have ‘Unparalleled Negative Consequences’ on Human Development

Sha Zukang, Under-Secretary-General for Economic and Social Affairs, this morning warned of “unparalleled negative consequences” to human development, with up to 100 million more people expected to fall below the poverty line, due to the poor health of the world economy.Addressing the opening session of the Third Committee (Humanitarian, Social and Cultural), he said nations must devote special attention to those least able to handle periods of extended unemployment and rising prices. To support those vulnerable groups, nations needed strong protection systems that could preserve the well-being of families, and to prevent generations of families from becoming mired in poverty.

http://www.isria.com/pages/6_October_2009_25.php

Rwanda: IFC to Study SMEs Involvement in Leasing

The International Finance Corporation (IFC) will carry-out a survey on how Rwanda's Small and Medium Enterprises (SMEs) have embraced leasing as an alternative source of capital in order to offer perfect solutions and programmes for supporting their growth.The development comes a few months after the investment arm of the World Bank group alongside the Association of Micro Finance Institutions (AMIR) through Microfinance Institutions (MFIs) introduced micro-leasing for the SMEs segment. IFC, which invests directly in companies and guarantees loans to private investors, earlier this year, recommended that financial institutions should embrace micro leasing for SMEs. The IFC's Team Leader and Legal Specialist, Brian Kirungi said that micro leasing would address SMEs' current barriers to access to finance.

http://allafrica.com/stories/200909080301.html

IFC- Kazakhstan

IFC Investment to Expand Access to Finance for Small and Medium Enterprises in Kazakhstan

IFC, a member of the World Bank Group, announced its   investment plan  in JSC Bank CenterCredit for providing long-term capital that would help to promote access to finance for small and medium enterprises in Kazakhstan.
IFC plans to  invest in a 12.5 percent equity stake alongside local shareholders and the strategic investor Kookmin Bank of South Korea, and provide an $85 million subordinated loan. IFC has previously extended two senior loans and a trade finance line to BCC, a medium-sized bank that focuses on small and medium enterprises.
BCC is the fifth largest bank in Kazakhstan in terms of total assets, holding eight percent of the banking system’s total assets and 14.4 percent of retail deposits. Kookmin Bank is the largest bank in Korea with assets of $208.2 billion as of the end of 2008. It employs more than 25,700 staff and has five overseas branches, four subsidiaries, and three representative offices around the world. The bank provides standard banking, insurance, credit card, and investment products services.

http://media-newswire.com/release_1100422.html#

Nigeria: Economic Recession And Financial Regulation

There is hardly any aspect of the economy that has not been adversely affected be it financial, real estate, manufacturing or the service sector. Indeed like a fast spreading virus, the financial meltdown which originated from America has permeated every economy to the extent of their interconnectedness to the international financial system. It is the legitimate expectation of every rational man that in the challenging period of economic recession, financial institutions particularly the banks should come to the rescue to prop up effective demand. But the problem becomes hydra-headed where financial institutions on which the hope of economic salvation lies, run into problems as we are witnessing in Nigeria today.

http://allafrica.com/stories/200909070594.html

Micro Enterprises Bring Macro Results

As MSES expands and integrates into the formal economies of their countries, it empowers and transforms the lives of the world's poor, both women and men, creates more jobs and higher incomes, contributes to economic growth and strengthens democratic societies. In announcing the award, the Norwegian Nobel Committee said, "Every single individual on earth has both the potential and the right to a decent life. Across cultures and civilizations, Yunus and Grameen Bank have shown that even the poorest of the poor can work to bring about their own development."

http://nepal.usembassy.gov/sp_12-11-2006.html

Green shoots emerge in IT recruitment market

Signs point to increased activity in fourth quarter and 2010

Steve Martin, professional and technical director at Kelly Services, says signs of a recovery in employment in the short term are limited, but that “we’re beginning to see some emerging developments that may point to increased activity in the final quarter of this year, with stronger growth in 2010”.
The developments are particularly evident in the telecommunications sector, Martin says, where “a growing number of projects have resulted in an increase in recruitment needs for a variety of roles, from helpdesk support to business analysts”.
Hiring practices have also changed as a result of the recession, he says.
“Organisations are appreciating the importance of carefully evaluating any new employee, to ensure they are making the right decision for their increased expenditure.
“Contract staff also appear to be increasingly attractive to companies, especially SMEs, due to the reduced risk and greater flexibility of hiring a contract employee.”
Kelly Services has noticed “a distinct geographical difference in the effects of the recession on the IT industry”, Martin says.
For example, while dropping about 20 percent from pre-recession levels, “recruitment in Christchurch has remained static in 2009 and overall, IT businesses in the region appear to have weathered the storm better than in other centres.”

http://computerworld.co.nz/news.nsf/care/B364A21A9217F30ECC25762A006FC4B7

Innovation is the name of the game

Ludhiana’s half-century-old textile and hosiery cluster, which houses about 3,500 small- and medium-sized enterprises and employs over half a million skilled and semi-skilled workers, is losing an estimated 30 per cent of its annual export earnings of Rs 1,200 crore due to the slump in international orders.Many SMEs have been devoting their energies to making themselves more cost effective in order to survive. “The slowdown motivated us to introspect on how we can make ourselves more competitive, since only the fittest survive,” says an entrepreneur. These entrepreneurs have discovered an opportunity amidst the crisis.Many manufacturing units have hired consultants to implement state-of-the-art technologies to conserve power and save on power costs. Since power constitutes about 15 per cent of the running cost for a textile unit, the judicious use of power would fetch a recurring benefit for the units, stakeholders say. Ludhiana evolved as a textile hub over the years after the partition of India. Small knitting units were set up in the town by families with a business legacy who migrated from Lahore and Gujranwala after Independence. Business was done only for survival, without aiming for professional excellence.

http://www.business-standard.com/india/news/innovation-isnamethe-game/371691/

The Current State Of Microfinance In Malaysia And Challenges Facing The Sector: Observations From The Assistant Governor Of Bank Negara Malaysia

There are over 435,000 micro enterprises in Malaysia [according to the Census of Establishments and Enterprises 2005 issued by the Malaysian Department of Statistics]. This represents a potentially vast market segment and opportunity for further expansion in supply of innovative products and services by the providers of microfinance. While we expect growth in both demand and supply of microfinance to continue in the long term, we anticipate growth to moderate in the near term due to the current challenging economic environment.

Nevertheless, a new measure was recently introduced to ensure that microenterprises continue to receive adequate access to financing. The Government has introduced the Small Entrepreneur Guarantee Scheme (SEGS) [6] to incentivise lenders to disburse microloans to viable microenteprises by providing guarantee covers of up to 100% to micro enterprises. Risk-sharing schemes like these enhance the credit standing of micro enterprises, hence improving the likelihood for viable micro enterprises with little track record or no collateral to obtain financing to support the working capital needs of the business.

http://www.microcapital.org/microcapitalorg-story-exclusive-interview-on-the-current-state-of-microfinance-in-malaysia-and-challenges-facing-the-sector-observations-from-the-assistant-governor-of-bank-negara-malaysia/

Eradicating Poverty Through Enterprise: An Israeli Viewpoint, by Ms. Shula Ferdman

Promoting small scale enterprises is one means of eradicating poverty and is a joint effort of local, national and international organizations. It has to be part of a comprehensive plan for raising the standard of living of the population. In a world where poverty alleviation still remains one of the greatest global challenges, the linkage between training and increasing income generating opportunities is generally acknowledged.

http://www.un.org/esa/coordination/Statement.Ferdman.pdf

European Union. The European Commission recently published new calls for proposals and tenders
The European Commission recently published a new call for proposals under the 2009 work programme of the Information and Communication Technologies Policy Support Programme as part of the Competitiveness and Innovation Framework Programme (CIP) (2007 to 2013):
- CIP-ICT PSP-2009-3bis
The deadline to submit proposals is 23rd September 2009.
http://www.ipr-helpdesk.org/news/news_6702.en.xml.html

Call for Presentations: Green Business Africa Summit & Expo: 2010

SolarGren Media encourages green entrepreneurs, innovators, CSR experts, sustainability professionals, academicians and other interested speakers to speak at Green Business Africa Summit & Expo 2010.
For more information contact: This e-mail address is being protected from spambots. You need JavaScript enabled to view it with suggested topic.
http://www.greenbusinessafricaexpo.com/speakers/

ICTs and Development: An International Workshop for Theory, Practice, & Policy

Date: 11-12 March, 2010

Venue: Indian Institute of Technology Delhi, New Delhi Sponsored by International Development Research Centre, Canada

Unpublished, original empirical papers are invited for the forthcoming international workshop on ICTs and Development: An International Workshop for Theory, Practice, & Policy to be conducted by the Indian Institute of Technology (IIT), New Delhi, India, The workshop aims to provide a forum for scholars to share their empirical research with academic experts, policymakers, and activists from the regional and international development community. Papers should examine how mobile phones, computers, and the Internet influence the empowerment of marginal individuals and communities, including whether ICTs create and enhance livelihood opportunities for people in the developing world.

Papers should be in the range of 5,000-8,000 words (including abstract and bibliography) and should include a clear discussion of the implications of the findings for development policy and/or practice.

No more than twelve papers will be selected by the workshop organizers for presentation.The first author of each paper chosen will be given air fare and lodging/meals. The workshop is part of the project, ICTs and Urban Micro Enterprises: Identifying and Maximizing Opportunities for Economic Development, and is supported by the International Development Research Centre, Canada. The organizers are committed to finding an appropriate publication venue for all papers accepted for the workshop.
Deadlines:
Submission of manuscripts: 1st October 2009
Announcement of results: 1st December 2009
Submission of final version of the paper: 1st February 2010

For submission of manuscripts and other enquiries, please write to This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Workshop Organizers: Dr. P. Vigneswara Ilavarasan (IIT Delhi)

Prof. Mark R. Levy (Michigan State University)

http://www.iitd.ac.in/events/ICTD2010/

MICROCAPITAL EVENT: The Global Experience Conference 2009: The Contribution of Banking Microfinance to Financial Inclusion

Date: Oct 28, 2009 to Oct 29, 2009
Event Location: Shangri-La Hotel 555 You Yi Road Harbin 150018, China
This conference is sponsored by PlaNet finance. It will take a close look at how banks and the private sector all over the world are finally reaching down to meet the needs of micro, small and medium sized businesses (MSMEs).
http://www.bankingmicrofinancechina.net/agenda.html.

APEC SME Summit: Thriving in Turbulent Markets”.

Date: 12 November 2009
Location: Raffles City Convention Centre, Singapore
The APEC SME Summit 2009 is the international premier business summit for senior executives and business owners of growing and mid-sized companies. The Summit is held as part of the series of Asia-Pacific Economic Cooperation (APEC) 2009 Meetings in Singapore.
As the annual APEC business forum for growing and mid-sized companies, the APEC SME Summit will provide a high-level international platform for business owners, top executives, senior business managers, thought leaders and entrepreneurs to convene, share best practices, network and strike new partnerships.
http://www.apecsmesummit.com

Madurai Symposium 2009

National Summit of SHG Federations on Microfinance and Millennium Development Goals
Date: September 16-18, 2009
Venue : Thamukkam Ground, Madurai,TamilNadu, India
For more details Contact MrT.Narendran, Mobile: +91-9894835600,
www.infosindia.in

Ideal-ist eChallenges Pre-Conference Brokerage Face2Face meeting on Call 6 Information and Networking Event

Date: 20 October 2009, Istanbul, Turkey
Ideal-ist is organising a Pre-Conference Face2Face Brokerage Event in collaboration with the eChallenges 2009 and the European Commission, DG INFSO in the field of Information and Communication Technologies of the 7th Framework Programme (ICT, FP7).This Networking Event will target a wide spectrum of companies, universities and researchers from Europe and all over the world interested in sharing new project ideas and finding collaboration partners and will be focused on the following challenge of the ICT work programme 2009 - 10 : ICT Call 6
http://www.b2match.com/echallenges09/

Seventh International Course on “Advanced Reflective education and Training (ART) on Community based Development Finance”

Organizer: DHAN Foundation
Date: December 1-12, 2009
Dhan Foundation has announced the Seventh International course on “Advanced Reflective education and Training (ART) on Community based Development Finance” for staff of microfinance organisations, banks, capacity-building organisations, NGOs, government organisations and funding agencies, from India and abroad. The Course will take place in Madurai, in Tamil Nadu in South India, from December 1 to 12, 2009.
The Course will enable participants to learn successful microfinance models of South Asia, Africa, Latin America, and European countries and in the field from the Foundation’s own very successful model of building sustainable people’s institutions. It includes both classroom sessions as well as field visits.The pedagogy includes case analysis, experience sharing by the experts, group exercises, field visits and panel workshops.
For more details contact  This e-mail address is being protected from spambots. You need JavaScript enabled to view it ; This e-mail address is being protected from spambots. You need JavaScript enabled to view it
http://www.dhan.org/tda/art.php

Eliminating Rural Poverty: The Israel Development Experience

Date: November 30 - December 10, 2009
Venue: Most of the program will be held in the facilities of NISPED, which are located in the Golden Tulip Hotel in Beer Sheva, the capital of the Negev (southern Israel)

Why study rural development policies in Israel?
Every four poor people in developing countries are rural, 2.1 billion individuals below a $2 a day poverty line, one third of humanity. Most depend directly or indirectly on agriculture for their livelihoods. Implementing tailored rural development agendas requires resource commitment and effective leadership. The development of agricultural and non agricultural rural enterprises, while driven by the market, depends heavily on public support.
Rural poverty has been eliminated in Israel through the coherent implementation of such a coordinated and integrated approach to rural economic and social development. The central focus of the course will be to present the successful Israeli experience as well as other international best-practice examples. Participants will have the opportunity to formulate ideas and policies which may be applicable to their own countries while sharing experiences with colleagues from around the world.

The main topics to be covered include:

• Strategies of development
• Agricultural developments in the 21st century
• Contribution of SMEs and cooperatives to the economy, society and the individual
• The role of SMEs and cooperatives in rural development Leadership and management in rural communities
• Appropriate agricultural policy in the era of globalization
• Post-harvest processing and marketing cooperatives
• Micro-finance and rural development
• Effective rural extension services
• stablishing and managing comprehensive support systems for SMEs and cooperatives - the central and local/regional levels
• Local/regional-level Small Business Development Centers (SBDCs)
• Regional cooperation as a strategy of rural development
• Entrepreneurship in contemporary agriculture
• Integrating financial and non-financial(consulting, training) support measures
• Linking rural producers to global markets
• The role of local, regional and national governments in successful rural development

The program is run by the world renowned expert Rafi Goldman, a specialist in cooperatives and rural enterprise management.

For more details visit http://www.nisped.org.il

Training Program on ‘Rural Livelihoods and Poverty Alleviation

Date: 22-25 September 2009
Venue: Anand (IRMA); Gujarat
Organiser: Institute of Rural Management(IRMA), Anand
IRMA is organizing a training programme on rural livelihoods and poverty alleviation. The training programme will cover different frameworks of livelihoods, growth, development, poverty, multiplicity of sources of livelihoods, sustainable & unsustainable livelihoods, ways to modify and upgrade livelihoods, strengths and weaknesses of different approaches.
Tentative outline of the subject matter

♦ Different frameworks on livelihoods
♦ Growth, development and poverty
♦ Multiplicity of sources of livelihoods
♦ Sustainable and unsustainable livelihoods
♦ Ways to modify and upgrade livelihoods
♦ Strengths and weaknesses of different approaches
For more details contact: Senior Manager (Programs) IRMA, Post Box No.60 Anand 388 001, Gujarat+91-2692-221697 / +91-9825367827 (Cell) Fax: +91-2692-260188
Email < This e-mail address is being protected from spambots. You need JavaScript enabled to view it >

Green Business Africa Summit & Expo: 2010

Theme: Sustainable Business as Vehicle for Africa’s Economic Growth and Social Uplift
Dates: June 2 to June 4, 2010
Venue: Kenya International Conference Center, Nairobi
The Green Business Africa Summit & Expo is Africa’s first flagship event that brings to the mainstream issues around sustainability in the business environment as well as green corporate social responsibility (CSR).The Summit will provide business leaders at all levels with insight on developing and enhancing profitable and sustainable business enterprises and practices. Successful peers and experts in the field will speak on the many current and future green and sustainable opportunities for businesses in Africa while improving their bottom line.
http://www.greenbusinessafricaexpo.com/

Seventh Annual WIPO Forum on Intellectual Property and small and medium-sized enterprises for Intellectual Property Offices and other relevant institutions in the Organization for Economic cooperation and development (OECD) countries

Date: September 14 and 15, 2009
Venue: Geneva, WIPO Headquarters

The World Intellectual Property Organization is organizing the Seventh Annual Forum on Intellectual Property and SMEs. The Forum will be held in Geneva, WIPO Headquarters on September 14 and 15, 2009. The aim of the Forum is to provide an open and interactive platform to share experiences and views on matters concerning intellectual property for industry and business; in particular, the participants will discuss:
• IP related key issues of relevance to entrepreneurship and competitiveness of SMEs;
• Outreach activities, technical assistance programs, services and products, as well as best practices on effective us of IP by innovators, creators, entrepreneurs and SMEs;
• Possibilities for cooperation and partnership in the outreach and capacity building activities for greater and more effective use of the IP system by the enterprise sector, especially micro enterprises and SMEs.
http://www.wipo.int/sme/en/activities/meetings/forthcoming_events/index.htm

5th Development Film Festival : 'Fight Poverty: Connect and Commit for MDGs'

Date: September 25-27, 2009
Venue: The South Indian Film Chamber of Commerce, 605, T.R Sundaram Avenue, Anna Salai, Chennai - 600 006 ,Tamil Nadu , India
The Development Film Festival is envisioned to be a creative platform for the film makers to showcase their works on the themes and issues concerning development of the poor and vulnerable communities. The Centre for Development Communication of DHAN Foundation organises this Festival.
http://www.dhan.org/dff/

8th Global SME Partnership Summit

Date: 12-13 February, 2010
Venue: Hotel The Leela Kempinski, Near International Airport (E )
Small & Medium Business Development Chamber of India (SME Chamber of India) and India International Trade Centre (IITC-India) are organising "8th Global SME Partnership Summit" with the objective of empowering SMEs to acquire latest technology, innovative strategies, new ideas and other aspects to produce quality products and services of international standards.
For more details:
SME CHAMBER OF INDIA
101, Murlidhar Baldev Estate, Near Vikas Estate, Off. Aarey Road, Goregaon (e), Mumbai – 400063 (India), Tel: 91-22-22151973

International Conference on Green Industry in Asia

Managing the transition to resource-efficient and low-carbon industries
Date: 9-11 September, 2009
Place: Manila, Philippines
Organizers: The conference is organized by UNIDO together with government of Philippines, UNEP and ESCAP.
In the rapidly industrializing economies of Asia, a low-carbon and resource-efficient pattern of industrial development will be key to ensuring rapid economic growth and protection of the environment. Countries that follow a sustainable pattern of industrial development will be better placed to exploit the new market opportunities created by the shift towards resource-efficient and low-carbon production processes. The International Conference on Green Industries in Asia will serve as a platform to extensively discuss the opportunities generated and challenges posed by a move towards resource efficient industries and sustainable production and consumption patterns.
http://www.unido.org/index.php?id=7781

Global Renewable Energy Forum,Scaling up Renewable Energy

Date: 7-9 October, 2009
Place: León, Mexico
Global Forum will create a suitable environment for a proactive dialogue in order to strengthen interregional cooperation and encourage innovative multi-stakeholder partnerships aimed at scaling up investments in renewable energy. The Global Forum will provide a platform for profiling leadership in regard to the promotion of renewable energy, thereby increasing the visibility of political commitments towards the development of alternative energy systems. It will enable multi-stakeholder dialogs and encourage partnerships, as well as facilitate the development of innovative frameworks aimed at supporting initiatives related to clean energy.
http://www.unido.org/index.php?id=7341

CHINA: Gov't pledges strong support for innovation-based SMEs during downturn

The most effective way to withstand the impact of the global economic meltdown is to accelerate technological innovation, the new economic growth engine," Science and Technology Minister Wan Gang said his article in Study Times. He promised that China's government would provide strong support for small-and medium-sized enterprises (SMEs) to help them tide over the current economic downturn. However, the Minister attributed SMEs' development hiccups mainly to low-tech products and poor research and development capability.
China has more than 42 million SMEs which contribute more than 60 percent of the nation's GDP, 50 percent of tax revenues, 70 percent of import and export trade and 80 percent of urban employment. But the number of innovation-based SMEs in China is only about 160,000, much less than in the United States where they made up about 10 percent of the sector, and Israel where they comprised 17percent. In China, SMEs refer to enterprises where staff numbers are less than 2,000, annual revenues are under 300 million yuan (44.1 million U.S. dollars), or with total assets under 400 million yuan. The ministry is planning to establish a technology platform with the participation from universities, research institutes and enterprises. And to ease technological personnel shortages, the ministry, together with other central departments, would assign 100,000 researchers and technicians from universities and research institutes to the SMEs, Wan said.
http://news.xinhuanet.com/english/2009-08/31/content_11973014.htm

CHINA: Early signs of recovery in heartland

If you develop a solid base of SME (small and medium-sized enterprise) businesses, the money is in the pockets of the business owners who then reinvest it in the local economy. Xie Zhongfan, executive vice mayor of Zhongshan, said it is important that the economy not be dependent on one or two companies that might suddenly leave, and focus instead on developing homegrown small businesses. Despite the crisis, the province still looks relatively prosperous with few obvious signs of unemployment or poverty. It has been hit hard, however, after suffering its biggest economic trauma since it set out on the road to becoming one of the industrial powerhouses of modern China more than two decades ago. There have been a number of initiatives at both provincial and municipal levels to get the province back on its feet. These include subsidies for employing people, tax reductions and other stimulus measures. One of the main strategies of government authorities has been to lessen its dependence on foreign-owned companies - some 2,542 of which deserted the province last year as a result of the financial crisis.Less than a year after being in the eye of an economic storm, China's manufacturing heartland might at last be showing some signs of recovery. Guangdong province - labeled one of the key "workshops of the world" - was on the firing line at the end of 2008 when North American and European consumers stopped buying their goods.Yet after months of the sustained impact of the government's 4 trillion yuan economic stimulus package, as well as indications of a steady recovery in some export markets, there seems to be evidence that at last things might be turning around.
http://www.chinadaily.com.cn/bizchina/2009-08/31/content_8634607.htm

POLAND: "Green shoot" for Poland include developing renewable energy

Poland (along with Bulgaria and the Czech Republic), is considered an up-and-coming wind energy destination. Industry insiders pinpoint good wind resources, improving energy infrastructure and EU subsidies as driving forces behind a viable wind industry, one that could eventually rival established producers such as Germany or Spain. The economic impact of developing a renewable energy sector in Poland is substantial. First, it sets higher standards through the application of international best practices and environmental impact assessments. This is critical to maintaining competitiveness across Poland’s SMEs, as they currently spend less on environmental compliance.
http://www.wbj.pl/blog/CEEPolicyWatch/post-124-8220green-shoots8221-for-poland-include-developing-renewable-energy.htm

ADB: Philippines : LARGE ENTERPRISES UNDERSTATING ASSETS TO AVAIL OF LOANS

DESPITE a law requiring Philippine banks to allocate a portion of their loan portfolio to small and medium enterprises (SMEs) credit access for that sector remained “poor”. In a study, Asian Development Bank(ADB) said that while directed credit programs and state ownership of banks have been associated with some success in improving particular types of outcomes for SMEs, “the overall record seems poor, with much scope for improvement.” “While banks in the Philippines are required by law to allocate 8 percent of their loan portfolios to SMEs and appear to be doing so . . . funds did not actually go to SMEs but to larger enterprises that deliberately understate their assets to get classified as SMEs,” the ADB said. “Improving SME access to finance requires building up an appropriate regulatory infrastructure. It also requires stronger informational infrastructure for the efficient functioning of financial markets,” it said. Besides poor access to credit, other problems facing SMEs include marketing, information, technology and skills. The ADB said assisting micro enterprises can be an important way to alleviate poverty, adding that some micro entrepreneurs have considerable potential to expand their businesses and should be helped in doing so. “Nevertheless, the big gains in growth and jobs are likely to come from understanding how public policy can help SMEs become more productive,” the study says. Fostering dynamism in SMEs will not only help their owners, but also workers at large.
http://www.manilatimes.net/national/2009/aug/27/yehey/business/20090827bus1.html

UK: Online marketing provides greater ROI: Ad:tech research study

The UK digital marketing industry needs to revise in how it markets itself if it is to make the most of the growing appetite for UK business investment in online and digital marketing according to independent research* commissioned ahead of this year's ad:tech London.Research of over 900 visitors to last year's show reveals that nearly half of respondents (48 per cent) expected to assign over thirty percent of their budget to digital marketing over the next twelve months, an increase of nine per cent since last year. The biggest reason for this level of investment was the fact that over two thirds of respondents (62 per cent) believed online marketing delivered greater ROI than offline marketing channels.The study also demonstrates the need for greater clarity in the way digital marketers position their services. Christophe Asselin, Event Director for ad:tech explains, "There are clearly opportunities for marketers to capitalise on the increasing investment by UK businesses in online marketing however this needs to be allied with an understanding of business needs, not marketing jargon.
http://www.prnewswire.com/mnr/prne/adtech/37549/

USA: The Conversation: Micro business provides one answer to problem of underemployment
Californians are hurting. Lost jobs, lost hours, lost wages and lost investments are stealing away dreams.But what they are finding out about themselves can change California's economy.To make ends meet, more and more Californians are turning to local opportunities to sell their own personal goods or services. The recently unemployed, having grown weary of the job market, are launching their own micro businesses – businesses employing five or fewer and started with $35,000 or less.Underemployed people, including baby boomers hard hit by the stock market, are starting micro businesses to support their families and rebuild their retirement plans.In addition to offering income opportunities, micro businesses help transform local communities. In cities where individual livelihoods depend on local business relationships, poverty goes down, civic participation increases and there is greater commitment to the community's quality of life.This is the message micro business owners and micro enterprise assistance providers sent to the governor and Legislature during California Micro Enterprise Month in July.
http://www.sacbee.com/opinion/story/2092701.html

Yemen: Fund set up for micro and small enterprises

The Media and Economic Studies Center has announced the establishment of a micro-and- small enterprises fund at an initial capital of YR 2 million. The center said in a statement the fund will work to alleviate poverty, encourage the Yemeni families to create yielding enterprises and urge businessmen, organizations and donors to provide support for micro and small enterprises. The statement noted that the fund will grant loans for the people without interest rates, and the loans must be given according to initial studies by the loan seekers. The loans are conditional that require perfect enterprises, providing in-kind-guarantees, equivalent to the sum sought, with priority given to families and individuals in urgent need of support. The center has urged corporations, organizations and donors to contribute to the initial capital, saying there is flexibility in terms of contributions; the social classes to be targeted with funds; but the center must be responsible for organizing contributions. Among the objectives of the fund is training individuals in how to run small enterprises and conducting feasibility studies as well as reducing risks. The Media and Economic Studies Center is a non-profit organization working to promote development in Yemen and raising awareness about economic issues as well as creating professional economic media.
http://www.sabanews.net/en/news191003.htm

Jamaica: Microfinance helps Jamaican ‘mother of five’ to face challenge

Rose Marie Gayle received a US$200 micro-loan that helped her expand her small business selling sweets, juice and phone cards outside a high school in Kingston.Following a longtime customer’s suggestion, Rose Marie visited the Kingston and St. Andrew Action Forum – a civil society organization with offices in 72 communities in Jamaica’s capital city – to learn more about the loan initiative. In May 2009, she received the equivalent of US$232 (20,000 Jamaican dollars), which enabled her to buy more goods, and to sell new items customers had been asking for, such as cold beverages.When her business boomed, she was able to repay her loan in two months – a month before the due date. Rose Marie, mother of five, and her husband run the business. “With the additional funds, I purchased other more expensive goods that I wasn’t selling before, such as soft drinks, for example. I even bought a cooler that now keeps sodas and juices ice-cold. And I painted and refurbished the stall to make it more attractive,” she said, proudly.It attracted more customers and now she is selling more sweets and cold refreshments than ever. “ (Source: UNDP) Read the full story here….
http://www.microfinancefocus.com/news/?p=808

Singapore: Fortune favors the brave

One area where SMEs face a critical challenge is in finding senior talent to take the company further. According to the Asia-Pacific Economic Co-operation (APEC), small and medium enterprises (SMEs) make up approximately 90 per cent of businesses in the regional APEC economy. Despite the global march of MNCs, SMEs form the backbone of Asian economies and remain the biggest employers. Even in MNC-friendly Singapore, 60 per cent of jobs are with SMEs.

Strengthening that economic backbone is the goal of every government from here to Beijing, and for Singapore's SMEs in particular the pressures to grow are as heavy as the hurdles in their way. Rarely a day goes by without a media story urging them to 'go global' as if all it takes is will.

Raising money to grow is a challenge, especially in a credit crunch caused by a recession, but in Singapore there's an equally critical resource - senior talent. Typically, SMEs are family-based businesses that have grown to include the founder, and maybe a couple of other partners, running a tight ship. They produce a reliable product or service, have a good existing customer base with whom they have grown, and can generate annual revenues of up to $50 million. But once there, they often hit a wall.To grow, it needed a good financial director (not another accountant), an operations director (not a more efficient production manager), an IT director, (not another techie), and a marketing director (not another senior salesman). All in all, an expensive HR shopping list.But capital wasn't the challenge: finding these new people and convincing them of the opportunities that a medium-sized corporate entity owned by a private equity house could offer, was. This is a region-wide issue, but in resource-scarce Singapore it's even harder to prise talent away from the comfort blankets provided by MNCs and the public sector, and get them to take a career risk.
For more <http://www.businesstimes.com.sg/sub/premiumstory/0,4574,347009,00.html>

European innovation policy sees successes but also new challenges

The re-launched Lisbon Partnership for growth and jobs has put innovation and entrepreneurship at the centre and called for decisive and more coherent action by the Community and the Member States in view of mastering the shift towards knowledge based low carbon economy. On this basis, an ambitious European innovation policy has been launched in 2006 and the Small Business Act (SBA) has been agreed. Thanks to the partnership approach between the EU and its Member States progress can today be reported. Almost all Member States have improved their innovation performance. The innovation gap between the EU and its key competitors, the US and Japan, has narrowed. However, the Communication also recognises policy gaps and indicates areas where further improvements both at European and at Member States level are necessary. This analysis will feed into the preparation of the new European reform agenda beyond 2010.
Read more: < http://thegovmonitor.com/world_news/europe/european-innovation-policy-sees-successes-but-also-new-challenges-3054.html>

South Africa: Micro Enterprises need literacy and numeracy

Micro-enterprise projects need literacy and numeracy, to keep records of activities, decisions and sales, to manage stock and money, and record orders and contracts. Even planning a project means you need to write. This engagement with practical literacy and numeracy, as part of small business, helps to prevent relapse to semi-literacy.
http://www.ngopulse.org/article/literacy-alone-not-enough&ct=ga&cd=wstKXKqroeY&usg=AFQjCNGimDXoBy-BjvUvX8YyyrjZuN3E9A

IFC TO BOLSTER PRIVATE SECTOR
International Finance Corporation (IFC) is planning assistance to banks and specialized financial institutions in improving their ability to provide financial services to micro, small, and medium enterprises to promote sustainable private sector development.
http://www.tradingmarkets.com/.site/news/Stock%20News/2507433/
Best Practices/Cases Useful links

UK: Enterprise Village

Enterprise Village is the online component of Enterprise Network providing a one-stop shop for all those with an interest in enterprise education, primarily in England, but, also, beyond. There will be a source of resources, information, professional development and support for enterprise education in the primary, secondary and tertiary sectors. Enterprise Village will be adaptable to the needs of its community of users, allowing them to create a profile of their interests, location and professional which will enable Enterprise Village to deliver a customised selection of news, resources and events directly to each individual user.
For details: http://www.enterprisevillage.org.uk/

UK: The Hull Youth Enterprise Partnership
The Hull Youth Enterprise Partnership is a well established public/private/community partnership set up to influence major partners in supporting Hull’s enterprising young people. It is committed to the shared vision of growing the City’s economy for the benefit of its young people and by working in partnership to create and facilitate opportunities to widen the entrepreneurial spirit.
For more details: www.youthenterprise.co.uk

UK: Yorkshire: The Young People’s Enterprise Forum (YPEF)

The Young People’s Enterprise Forum (YPEF) is a regionally-based group of private and public organisations with a mission to build a culture which values, promotes and nurtures enterprise among young people in an inclusive manner
For more details: www.enterprisingyorkshire.co.uk

Industrial Development Report 2009

Breaking In and Moving Up:
New Industrial Challenges for the Bottom Billion and the Middle-Income Countries

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION

UNIDO ID No.: 438, UN Sales No.: E.09.II.B.37
ISBN: 978-92-1-106445-2

Pages 146

This report is about the countries that have been left behind. It is about the opportunities and constraints faced by two groups of countries: the poorest countries of the world—the countries of the bottom billion—and those middle-income countries striving to move up.1 It addresses the challenge of breaking into global markets for countries that have not yet industrialized and of
catching up with the more dynamic newly industrializing countries (NICs) for those which have succeeded in industrializing to some extent. It is also a report about structural change. Paths to
industrial development will differ, and as a country proceeds along a suitable path, the type of industries that drive the industrialization process will change radically. Unprecedented structural changes in the global economy are redefining industrial development. The growing significance
of industrial clusters, the rapid increase in the proportion of manufacturing output that is traded internationally, the explosive growth of task-based manufacturing, the rise of China and India, and their consequences for the location of manufacturing and for commodity markets are changing the opportunities for industrialization— opening some avenues and closing off others.
What are the implications of these structural changes for the future industrialization of developing countries?

The Challenge of Employment in India: An Informal Economy Perspective

Volume one and two
NATIONAL COMMISSION FOR ENTERPRISES IN THE UNORGANISED SECTOR
19th Floor, Jawahar Vyapar Bhawan, 1, Tolstoy Marg, New Delhi -110001

This is the final report of the National Commission for Enterprises in the
Unorganised Sector, which was set up by the Government of India on 20th September 2004, to "review the status of unorganized/informal sector in India including the nature of enterprises, their size, spread and scope, and magnitude of employment," This was the first step taken towards "the welfare and well-being of all workers, particularly those in the unorganized sector, who constitute more than 93% of our workforce".
http://www.nceus.gov.in/The_Challenge_of_Employment_in_India.pdf

Case Study: Hull, UK: Youth Enterprise – Case Studies: Aim Higher in Life with Youth Enterprise!

This comprises successful youth enterprise cases from Hull, UK. Focus is enterprises set up by young people.
http://www.youthenterprise.co.uk/download-docs/casestudies.pdf

The weak underbelly of Indian manufacturing

By Manas Chakravarty
Live Mint, New Delhi, India
Dated, September 07, 2009
A recent study by the Asian Development Bank on small and medium enterprises in Asia makes it amply clear how the Indian manufacturing sector differs from the Chinese. the difference in wages between large and small firms is much lower in China, according to the study. They find that in 2005, small firms in China paid an average annual wage of $1,144, medium firms $1,315 and large firms $1,898. Note that wages in both medium and large firms in India were higher than firms of a comparable size in China. However, since the majority of employees are in small firms in India, the average wage is much lower than in China. That SME productivity can be increased is proved by Korea and Taiwan. Not all small enterprises have low productivity. Value added per worker in even small enterprises in Taiwan and South Korea is higher than value added per worker in large enterprises in India. While that is depressing, it also demonstrates the extent to which Indian manufacturing can improve, given the right policies.
http://www.livemint.com/2009/09/02000816/The-weak-underbelly-of-Indian.html?h=B

Nigerian Women Agro-entrepreneurship Development: Issues and Challenges

Women in general are naturally endowed with some exceptional abilities, which if properly harnessed for entrepreneurship purpose, could result in positive and enviable results. Women by nature; Have creative abilities; Are blessed with ability to persist and pursue their desires ;Are good and patient nurtures of children, and this tenacity is usually transferred into business; Are good innovators ;Have ability to develop passion for what they believe in
http://sualumnicebu.com/nigerian-women-agro-entrepreneurship-development-issues-and-challenges.html

EUROPEAN INNOVATION SCOREBOARD 2008

This is the eighth edition of the European Innovation Scoreboard (EIS), which provides a
comparative assessment of the innovation performance of EU Member States, under the EU Lisbon Strategy. The EIS 2008 includes innovation indicators and trend analyses for the EU27 Member States as well as for Croatia, Turkey, Iceland, Norway and Switzerland.
The EIS report and its Annexes, accompanying thematic papers and the indicators’ database are available at
http://www.proinno-europe.eu/metrics

Doing Business 2009

A co-publication of the World Bank, the International Finance Corporation, and Palgrave Macmillan

Doing Business 2009 is the sixth in a series of annual reports investigating the regulations that enhance business
activity and those that constrain it. Doing Business presents quantitative indicators on business regulations and the protection of property rights that can be compared across 181 economies—from Afghanistan to Zimbabwe—and over time. Doing Business provides a quantitative measure of regulations for starting a business, dealing with construction permits, employing workers, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and closing a business—as they apply to domestic small and medium-size enterprises.
http://www.doingbusiness.org

PUTTING A LIVELIHOOD PERSPECTIVE INTO PRACTICE

Systemic Approach to Rural Development
A Guide for Analysis, Appraisal and Planning in Rural Areas
By  Annet Witteveen & Laurent Ruedin

Publisher: SDC, 2008
This guide can be downloaded from www.poverty-wellbeing.net

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