Government policy to support Micro- Small and medium Enterprises: Role and place of Incubation

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1 Government policy to support Micro- Small and medium Enterprises: Role and place of Incubation Presenters: Cheikh Saadbouh Seck, Director of Foreign Trade Dr Mbarou Gassama Mbaye, Managing Director Sénégal July 2007

2 Context Globalization High poverty and need to create wealth National policy of liberalism and commitment to develop the private sector High rate of unemployment, particularly among Youth

3 Context The centrality of the private sector for poverty alleviation program, Millennium development objectives, the national accelerated growth strategy Need of non financial services support for SME Low level of education

4 Political willingness Promotion of the private sector Creation the ministry of SME in 2002 Creation of APIX Creation of a Direction of SME: SME policy Creation of the Agencies for SME (ADEPME, APEDEA): execution agency Industrials Domains : Dakar, St Louis, Ziguinchor Concerned about women entrepreneurship: creation of the Direction of women entrepreneurship, women entrepreneurship funds, credit for women project, support to women entrepreneur network

5 Political willingness Chart for SME: The goal is to develop a legal framework to promote Micro and SME. The strategy is based on a participatory approach and permanent dialogue among actors: state, the private sector, unions, and development partners Improvement of the business environment State support to SME to encourage quality products, expansion of production sites, incubators are part of the production sites

6 Political willingness Integration of industrial parks in the strategic plan of the Minister of scientific research Creation of 7 regional industrial parks among which 90% disappeared Support Bilateral and multilateral support agencies: German technical cooperation: BIC, support creation of network, provides technical assistance USAID World Bank: PPIP, BMN (Tunisia model) Link universities, research institutes and SME: creation a technopole in Dakar since 1996

7 Incubation programs Support of SME in national policy documents without strong actions. Private initiatives: Synapses center Pépinière d entreprises Junior entreprises Youth Resources centers in Regional Councils UNESCO project of multi media centers Very few incubation centers, incubation and innovation center Lack of a national coordinated incubation program

8 Constraints to promoting incubators Start up SME often think that they need more financial services than non financial services Dependence on NGO and the public sector to provide services NGO and public support deregulates the BDS markets Low level of business education: There is no business incubation institute at the image of India (incubation are campuses) Lack of information about other incubation programs

9 Constraints to promoting incubators Lack of incentives and coordinated strategy to promote the development of local technology Banks are not investing and supporting research and technology innovation Low level of mentoring from the private sector Lack on coordination of SME support agencies

10 Recommendations to promote Incubation Sensitization and education Better involvement of the private sector: organize workshop for the private sector associations, the chambers of Commerce and craft Create business incubation institutes or higher education institutes Create business incubation national association

11 Recommendations to promote Incubation Link business incubation to all universities and research centers Encourage applied research: the state has already created regional applied research centers (CRE), which need more support Sharing best practices of incubations

12 Recommendations to promote Incubation Encourage banks, through state incentives, to finance applied research Improve the business environment climate to encourage young graduate to initiate business