19th ANNUAL RESEARCH WORKSHOP
An Overview of the National
Business Linkage Program
By
Patrick E. Chove
1
Ledger Plaza Bahari Beach Hotel
Dar es Salaam, Tanzania
April 09-10, 2014
CONTENTS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
TIC as One Stop Shop
Background on the Linkage Program
Roles of TIC in Enhancing Local Productive Capacity
Activities Under the Program
Six Days ETW as a tool for mind set change
Status of the Program
Impact of program on TNCs/Large companies
Impact on SMEs
Challenges
Way Forward
2
TIC -ONE STOP SHOP
 TIC works with stationed officers from key Government
institutions
 TRA
 Ministry of Industry and Trade
 BRELA
 Labour
 Immigration
 Lands
3
BACK GROUND ON BUSINESS
LINKAGE PROGRAM
 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
4
ROLES OF TIC IN ENHANCING
LOCAL PRODUCTIVE CAPACITY
 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
5
ROLES OF TIC IN ENHANCING LOCAL PRODUCTIVE CAPACITY-2
 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
6
ACTIVITIES UNDER THE
BUSINESS LINKAGE PROGRAM
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
7
ACTIVITIES UNDER THE BUSINESS LINKAGE PROGRAM-2
•
•
•
•
•
•
•
•
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
8
6 DAYS ETWs AS TOOL FOR
CHANGING MIND SET OF
ENTREPRENEURS
 Empretec Methodology focuses on ten (10) key
behavioral competences of a successful Entrepreneur
1. 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
9
6 DAYS ETWs AS TOOL FOR CHANGING MIND SET OF
ENTREPRENEURS-2





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
10
IMPACT OF THE PROGRAM ON
TNCs/LARGE COMPANIES






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
11
IMPACT OF THE PROGRAM ON SMEs-2




Increase sales
Expansion of Client base
Guarantee outlet for production
Information on market trends for SME strategic
positioning
 Easier access to finance
 Knowledge spillover
12
IMPACT OF THE PROGRAM ON SMEs-3
 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
13
CHALLENGES
 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
14
WAY FORWARD
 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
15