Financial Times

Business start-ups: Where do we go?
By Nilooka Dissanayake
Last week, a lady telephoned me and said: "I want to go into the business of manufacturing soft toys for export. But, I don't know where to start." Who provides information needed to start a small business in Sri Lanka? Is there one single place to go? The answer is: NO!

It is interesting to find out why. Especially in the context of the 2005 budget which recognizes the small and medium enterprise (SME) sector -in a long overdue, but yet, very welcome move-as the "real private sector".

It is time now to ask why nothing substantial happens to benefit this group when everyone-politicians, bankers, trade chambers, NGOs, international organizations and so on-has a plan to develop SMEs.

Though many things are happening, there is absolutely no integration, working together or networking. Leave alone all that, there is absolutely no awareness as to what the others are doing. We are all working in isolation.

Why is there no integration or cooperation? To understand, let us list the many ministries who are involved in developing micro businesses and SMEs. If we can work through this spaghetti network, we can produce real results.

We begin with the new Ministry of Small and Medium Enterprise Development. The Ministries of Samurdhi and Poverty Alleviation and Small and Rural Industries also play a big role. Since most micro and SME businesses are agro based, the Ministry of Agriculture, Livestock, Land and Irrigation is also involved. All the regional development Banks and the activities of the Central Bank towards the development of small and micro businesses fall under the Ministry of Finance.

The Ministries of Education, of Skills Development, Vocational and Technical Education and of Labour Relations and Foreign Employment all have something to do with promoting entrepreneurship, provision of training, technology or finances for business start-ups. One must not forget the IDB, the BOI and the Registrar of Companies. They fall under two other Ministries. I will not bother to list the rest.

What will happen if I list out the implementing agencies, Provincial Councils, development and commercial banks, NGOs and the private sector organizations such as the Shell LiveWire Trust, ISB, Athwela Business Journal and Aratuwa paper who are also involved in helping, promoting and educating the SMEs?

Is there anyone who knows a list of all the organizations involved in the SME sector? Can we begin to have any impact until we know? To reap real benefits in promoting the SME sector it's health, growth and competitiveness, synergy is imperative. We need to integrate the positive efforts of all parties involved.

Imagine my idea of heaven: The guy dreaming of starting his own business does not need to go from pillar to post. A one-stop-shop, as mentioned in the National Policy Framework for the Development of SMEs, would be a dream come true. But for a start, a place where he can get guidance and information on the many aspects of starting a business would be welcome. Here an officer will tell him, "if you want to start an export business, you need to find a market and EDB will help you. For export insurance, visit SLECIC. If you need technology, such and such organization will help.

To register the business, visit the Registrar of Companies. For finances these are the most likely organizations for this particular type of export. To learn more about exporting or get general business know how, visit such and such websites, read such and such books, magazines and publications. If you want a business plan prepared, these and these organizations or persons will help you."

Won't it be marvelous to be able to tell all this to a person dreaming of starting his own business? It will stop many would-be entrepreneurs from getting frustrated and giving up.

After all, it is not easy to start ones own business to make it succeed. It is a tough undertaking and less than 10 percent survive anyway. If we, in Sri Lanka are so keen to develop the SME sector, shall we begin to think in this way? Then, our business start ups will not have to say "I don't know where to begin!"

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