PLENARY 2 - CAPACITY BUILDING THROUGH TECHNOLOGY & KNOWLEDGE TRANSFER Diversification,...
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Transcript of PLENARY 2 - CAPACITY BUILDING THROUGH TECHNOLOGY & KNOWLEDGE TRANSFER Diversification,...
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NATIONAL FORUM ON SMALL & MEDIUM ENTERPRISE
EMPOWERMENTDriving the power of entrepreneurship
PLENARY 2 - CAPACITY BUILDING THROUGH TECHNOLOGY & KNOWLEDGE TRANSFER
Diversification, Commercialization & Scaling up of SMEs
Rizvi ZaheedManaging Director, Hayleys Agriculture Holdings Ltd
Director, Hayleys PLC
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SMEs – Key to Sri Lanka’s Rapid & Sustained Growth
Goal of US$ 7000 per capita has to come from inclusive growth from all provinces, led by SMEs
Strong development of infrastructure and quality of life indicators a good base to build on
FDI important and big businesses can spur growth…..but SMEs hold the key
SMEs – Individual pioneering entrepreneurs, collaborative partnerships and transformational organizations
Advantages of single-minded entrepreneurship
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Why Diversification ?
Sri Lanka offers enormous opportunities throughout the provinces and regions – Eg. Agriculture
Sri Lanka’s amazing bio-diversity Agriculture, Aquaculture, Dairy,
Horticulture, Fruits & Vegetables, Agri-Mechanization, Planting Materials, Agri Services etc.
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Why Diversification ?
Managing Business Risks Addressing Natural Risks –
Droughts, Floods, Climate Change Effects
Developing a sustainable business enterprise & wealth
Opportunities for strong integration into local & global supply chains
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Example of a Hayleys Agriculture Global Supply Chain
FROM FARMER TO GLOBAL MARKETS – The Role for SMEs
Glo
bal
Sup
ply
C
hain
L
inks
Inputs
Grower/Supplier
Transformation
Manufacturer /Processor
Distribution
Distributor
Output
Customers
HJSSunfrost Global Markets
SMEHayleys
Company/Partner
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Diversification Example of Innovative Business Opportunity in
Aquaculture
Seaweed Farming and Processing for Export – Northern Province (Off the seas of Mannar, Kilinochchi and Jaffna Islands)
Partnering fisher families (currently 1000 and targetting 3000 by mid-2015 and 10,000 by end-2015)
Partnership agreements Providing training and inputs Processing, Logistics, Banking & Savings Average additional monthly incomes of Rs 30,000
per family going upto Rs 45,000 per family by early 2015
Strong role for SME participation and entrepreneurship
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Horticulture Opportunities
Floriculture – Build on local demand Home gardens, Landscaping, Apartments Expand product range, Concepts &
Varieties Markets in Middle East, Maldives, Asia Innovative Concepts in Europe
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Rapid Commercialization
Identifying profitable product/market segments
Building critical mass and capacity Installing processes & systems Product development & Branding Quality as a way of life Marketing Collaborations and
Partnerships Entrepreneurship and Transformational
Leadership
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Seaweed - Rapid Commercialization
Domestic & Global Value Addition Through SME Partnerships
To many people, seaweed is merely something you see on the beach. But it is also a plant used in the food industry – and not just for sushi.
Seaweed is grown almost like an agricultural crop, which is subsequently used as a textural agent in a range of foods across the world.
The Red Seaweed variety Kappaphycus is processed into carrageenan, an ingredient that lowers the calorie content and adds texture
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Hayleys Aquaculture Supply Chain Opportunities for SME Collaborative Partnerships- Growing,
Processing & Logistics
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SCALING UP FOR STRONG PROFIT GROWTH & SUSTAINABILITY
Concept of Scale Economies Establishing linkages – Forward & Backward Developing small-holder partnerships – WIN-WIN
Outcomes Trust and mutual dependencies Financing & banking partnerships Practical small steps Constant strategic focus & planning ahead Setting organizational succession Appetite for risk INNOVATION ! INNOVATION ! INNOVATION
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The Value of Collaborative Partnerships
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Strategic Alliances & Action Steps
Developing a specific agenda for each current and potential Small & Medium Enterprise
Learning from “Best Practices” Role of Chambers in SME scaling up Setting and re-defining structures and processes Setting a business growth trajectory Transformative leadership training Value of the Triple Bottom Line – PEOPLE,
PLANET & PROFIT “Success breeds Success”
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Thank you for your attention