The United Nations Global Goals (which refers to the 2030 Agenda for Sustainable Development), adopted by the UN in New York in September 2015, serves as the international community’s compass in achieving sustainable and inclusive growth over the next fifteen years. While goals 1, 8, 9, 12 and 17 will be directly addressed by COSMI, all other SDG goals will also be given required attention in the COSMI agenda.
The International Trade Centre (ITC), the joint agency of the UN and WTO, is focusing on helping to achieve the UN agenda for sustainable development and growth. The ITC in their first annual flagship report titled “SME COMPETITIVENESS OUTLOOK (2015)” outlined what makes an SME competitive. COSMI has considered those factors as a guide, in the mission to revive the industrial MSME sector in Sri Lanka. The key factors are;
COSMI aims to revive MSMEs in Sri Lanka, through the 54 regional chambers spread across the country. This will be accomplished by presenting honorary membership to key district and regional chambers with potential in industrial development. In addition all MSME organisations including businesses and associations engaged in the industrial sector will be invited for registered with COSMI. We strongly believe in having a broad network representing the industrial sector, as is vital in serving as the Voice of the Industrial MSMEs. This community will collectively become the strength and a powerful a force in reviving industries and increasing their productivity and quality to compete both locally and internationally. Special attention will be given to protecting local industries from substandard products coming from abroad. The North and East Provinces will be given priority by COSMI as there is a huge vacuum for economic development in those regions. COSMI has several plans, including the advocacy of a Free Trade Zone to draw investment from the international diaspora. Several business cases have been already identified for execution, based on the market opportunities and the strengths of the region. These business ideas will be implemented by MSMEs in the region with technical assistance of COSMI. Agri-based industries and fisheries sector are also highlighted as COSMI key priorities as they play an important role in the livelihood of the regions and the country’s overall economy.
The potential of women entrepreneurship in strengthening the industrial MSME sector is immense. It has been globally recognised that women make a significant contribution to national economies, contributing to poverty reduction, and employment creation. Despite such facts, women-owned SMEs account for only a third of SMEs globally. Not surprisingly, female entrepreneurs are particularly exposed to the problem as lack of collateral, inadequate financial infrastructure and other barriers involving gender-based social and cultural norms restricting the potential of women-owned SMEs. Looking at World Bank statistics, Women-owned SMEs are underrepresented in all stages of economic development (World Bank, 2011b). Women in developing countries are known to have a higher propensity than men to invest in their families and in the community at large, leading to a positive impact for the country as a whole. An ITC study has found that women-owned SMEs are almost equally as productive as men-owned SMEs, and operate at a similar employment scale and promote women in senior management. Empowering and enabling women entrepreneurs will be given special attention in the COSMI agenda.
Today MSME industries do not have a common platform to market their products within Sri Lanka. As a result, MSMEs within a particular region are unable to market their products effectively in the other regions of the country. To overcome this deficiency, COSMI will create a common platform by linking SMEs across the country via an information networks and trade events. This network can then be extended globally, vastly expanding the market horizons for Sri Lankan industrial MSMEs. In addition, COSMI will also provide business tools and know-how to increase productivity, quality and to add more value, enabling Sri Lankan products to effectively compete in the global arena.
SMEs require urgent support in the form of low cost finances, as well as new technology and machinery with long-term payment schemes via development banks. Access to Credit is limited for SMEs in Sri Lanka because banks have a strong focus on collateral/security-based lending. They are risk averse in lending working capitol, and particularly long-term capital, to SMEs. At the ground level, branch officers are unable to evaluate loan applications with an ‘SME-lens’. And they also lack SME-friendly credit rating and scoring schemes. From previous evidence of concessionary loan schemes, low disbursement rates might indicate that banks are keen only to promote their own products, rather than serve the needs of the SME industry. COSMI will arrange MSME-friendly financing facilities via leading development banks, international INGOs and financial institutions to support MSMEs.
Technology opens many avenues for conducting business in a more efficient way. It is capable of reducing the distance between the business and the customer, or the producer and the retailer, while improving the overall efficiency of the business process. Technology can introduce many productivity hacks within a business. This also includes backward and forward integration in the business process, from suppliers to the clients in a very tight manner, such as in Supply Chain Management. COSMI will develop technology upgrading, and training programmes via internationally reputed local and international technology training companies.
Skills gap as seen as a major barrier for sustainable growth of micro, small and medium industries. Ranging from marketing, management, technology and soft skills, these industries need capacity building as a primary requirement for their survival and growth. Recognising this critical need, COSMI will be conducting Programmes ranging from Seminars and Work Shops. The programmes will include Certificate Courses, which will be of an ongoing nature, while a Comprehensive Diploma Programme in Management will also be designed and launched within a short frame of time to add value to the membership. Programmes supported by Distance Education and Self-paced learning will be introduced along with interactive class-room style programmes suitable for an adult learning environment.
Courses will be delivered by over 100 high calibre resource persons with a wealth of experience in their respective fields or speciality, and they will be among best in country. Over 50 popular Training Courses have been developed by COSMI HRD Consultants based on an ongoing needs survey of the Industry. In addition, occupational mobility, continuous professional development and lifelong learning will be some of the key areas COSMI will be addressing as a catalysts for a thriving SME sector.
The South Asian region has revolutionised the conventional wisdom of more than 200 years that industrialisation is the sole driving force of economic progress. Success stories come from India as the world's leading ICT-BPO exporter and also Philippines as a major ICT-BPO hub. These nations have amply demonstrated to the world, that not only can the service sector be a driving force of the economy, but also be a primary force as well. COSMI will be exploring ways and means of not only enhancing services to support the industrial sector, but also to develop the service sector as a strategy to boost the national economy.
The COSMI Technical Advisory Committee will serve a major role in achieving the objectives and goals of COSMI. It will consist of a panel of specialists in a variety of fields to foster and empower MSMEs and bridge prevailing knowledge gaps. Initial assistance will be provided free of charge for Members of COSMI and subsequent services will be charged an affordable fee on a case-by-case basis.
Collaborations and affiliations will be established with local international agencies that support the COSMI mandate.