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

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

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.

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

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

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

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

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

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

Hayleys Aquaculture Supply Chain Opportunities for SME Collaborative Partnerships- Growing,

Processing & Logistics

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

The Value of Collaborative Partnerships

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”

Thank you for your attention