Capacity Building for SMEs

Introduction

In Africa SME's provide over 80% of the continents employment. In addition they contribute to 40% of the GDP, making the sector a major contributor to socio-economic development. The growth of the sector is hampered by poor presentation and a myriad of business challenges such as lack of access to capital, markets, networks and appropriate affordable people & enterprise development solutions. In emerging markets, most formal jobs are generated by SMEs, which create 7 out of 10 jobs. The International Finance Corporation (IFC) estimates that 65 million firms, or 40% of formal micro, small and medium enterprises (MSMEs) in developing countries, have an unmet financing need of $5.2 trillion every year, which is equivalent to 1.4 times the current level of the global MSME lending.

Program

The In spite of their vital role, 48% of SMEs shut down within a year of founding and subsequently 20% fail in their second year of operation. This high collapse majority of Small and Medium Eenterprises SME's in the supply chain, also defined as the missing middle, lack access to affordable financing. In principle, banks will not provide financing to companies that don’t have at least 3 years of audited financial statements. And in cases where a loan can be provided, banks must be fully secured with collateral or guarantees However, access to finance is a key constraint to SME growth, it is the second most cited obstacle facing SMEs to grow their businesses in emerging markets and developing countries. rate can be attributed to a number of challenges. In short,this is a program about providing financing options for the SME owner manager in addition address the other critical enabling factor for enhancing the performance and sustainability of SMEs is GOVERNANCE.    

Deliverables · An appreciation of how the SME sector has evolved in recent years. · A clear understanding of best practice, and of the structure and nature of financial management · A critical assessment of how financial tools add real value to SME management, and how to enhance your ownersl contribution · Recognition of the financail challenges SME owners to address, and how to manage them.

· Fruitful interaction and networking amongst SME owners.

Topics to be covered

  • Reasons to have a good financial system, · Data to learn about trends in SME business
  • Real time knowledge of what is happening in the business • Expense Management, • Invoice Management - Reduce mistakes, know how much has been sold • Faster reconciliation • Better management of payables • Increased productivity • Collections – Know ageing and minimize AR
  • Taxes – Avoid penalties! • Reporting – Know the status of your business • Proper costing due to proper analysis • Better forecasting and planning • Maintain an audit trail·
  • The SME Roundtable - a structured discussion with renowned entreptreneurs
  • Why businesses fail using the business canvas model as a base · A case for Governance · Governance Tools and policies ·Guiding principles · Embracing advisors and setting up a board · Board Effectiveness · Governance parameters ·
  • Fruitful interaction and networking amongst SME owners
    Value Proposition
  • Participant Centered Learning
  • Experiential learning
  • Build successful networks
  • Expert faculty with sector experience
  • Alumni club

Mode of Delivery

  • In house
  • Online N/ A