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An Overview of the National Business Linkage Program

 19th ANNUAL RESEARCH WORKSHOP

Ledger Plaza Bahari Beach Hotel Dar es Salaam, Tanzania

April 09-10, 2014

By Patrick E. Chove

1. TIC as One Stop Shop2. Background on the Linkage Program3. Roles of TIC in Enhancing Local Productive Capacity4. Activities Under the Program5. Six Days ETW as a tool for mind set change6. Status of the Program7. Impact of program on TNCs/Large companies8. Impact on SMEs9. Challenges 10. Way Forward

CONTENTS

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TIC works with stationed officers from key Government institutions

TRA Ministry of Industry and Trade BRELA Labour Immigration Lands

TIC -ONE STOP SHOP

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The Program is run in collaboration with The United Nations Organization on Trade and Development (UNCTAD)

The Program was Launched as a two years pilot case (2009-2011)

Four TNCs/ Large Companies based in Dar es salaam involved during pilot phase (TBL, Shoprite, Vodacom, and NHC)

After Commissioning was expanded to Northern, Southern and Lake Zones covering up to 30 Companies

BACK GROUND ON BUSINESS LINKAGE PROGRAM

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TIC is among several institutions offering interventions to MSMEs Development in the country

To maximize the impact of investment on the Tanzanian economy through enhancing business linkages

To collect Baseline information from TNCs in order to integrate them into linkage program

ROLES OF TIC IN ENHANCING LOCAL PRODUCTIVE CAPACITY

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To conduct entrepreneurship Training Workshops (ETW)

To conduct Health check and identifying further training/service needs of SMEs graduating from ETWs

To link SMEs to Other Business Services Providers (BDS) such as Consulting firms, training centers, employers, etc.

To Coordinating and conduct policy forums To facilitate SMEs in accessing financial services by

linking them with Banks/financial institutions

ROLES OF TIC IN ENHANCING LOCAL PRODUCTIVE CAPACITY-2

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The program has 14 steps life cycle Identification of sector (eg. Agriculture,

manufacturing, service, mining, etc) Consolidation of TNC/ Large company buy-in Identification of liaison person Identification of SMEs Baseline SME’s information assessment

ACTIVITIES UNDER THE BUSINESS LINKAGE PROGRAM

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• Consolidation of SME buy-in• Signing Ceremony• ETW Workshops by using Empretec Methodology• MSME Health Check• Follow-up training with all SMEs• TNC-SME Round tables• Linkage Policy Workshops• Impact assessment

ACTIVITIES UNDER THE BUSINESS LINKAGE PROGRAM-2

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Empretec Methodology focuses on ten (10) key behavioral competences of a successful Entrepreneur1. Goal setting

2. Opportunity Seeking

3. Information Seeking

4. Persistence

5. Fulfilling commitments

6. Systematic Planning

7. Taking calculated risks

8. Efficiency

9. Quality

10.Persuasion and Networking

6 DAYS ETWs AS TOOL FOR CHANGING MIND SET OF

ENTREPRENEURS

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14 ETWs conducted in various Regions 2 ETWs in collaboration with TPSF 2 ETWs in collaboration with SIDO 280 SMEs (Empretecos) on board since its inception 30 TNC/Large Companies on board (5 in Dar es

salaam, 11 in Southern Zone, 8 in Northern Zone, 6 in Lake Zone)

One MoU (with Tanga Fresh Company comprising 60 farmers-Milk suppliers)

Two Certified Local National Empretec Trainers and three Trainee trainers

6 DAYS ETWs AS TOOL FOR CHANGING MIND SET OF ENTREPRENEURS-2

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Reliable supply structure Cost reduction Flexibility and speed Productivity gains from specialization and outsourcing Reduction in fixed assets and working capital Better use of own sources (capital, human) for core

activities and processes, and Increased competitiveness

IMPACT OF THE PROGRAM ON TNCs/LARGE COMPANIES

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Increase sales Expansion of Client base Guarantee outlet for production Information on market trends for SME strategic

positioning Easier access to finance Knowledge spillover

IMPACT OF THE PROGRAM ON SMEs-2

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Transfer of technology, know-how, production and management processes

Access to coaching and technical advise Improved product standards Improved competitiveness Integration into Global value chains, and Improved managerial skills

IMPACT OF THE PROGRAM ON SMEs-3

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Absence of independent institution that deals with enterprise development

Lack of enterprise development policy Lack of enough funds Lack of skilled internal human resources to manage the

program Lack of Local Sourcing policy or conditions to TNCs Reluctance by TNCs to buy-in to the program

CHALLENGES

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The government need to establish an institution for enterprise Development

Introduction of Local sourcing requirement by TNCs/Large Local Companies

To expand funding base through proposals to donors other than the Government

WAY FORWARD

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