Transcript PRESENTATION TO HE DARWISH ISMA`EEL ALI AL BALUSHI

Developing Small & Medium Enterprises
“..youth are the present and future of the nation…”
His Majesty the Sultan, while inauguration the 5 th session of the Council of Oman
One who aims for the stars shoots higher than the one who aims for the trees......
SME Development Fund
Oman Economic Forum, 2012
OUTLINE
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SME development – why bother?
SME development – the challenges
SME Fund & the 4 Point Plan – the solution
Benefit to the Country & youth
So What?
One who aims for the stars shoots higher than the one who aims for the trees......
SME Development Fund
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Oman Economic Forum, 2012
SME DEVELOPMENT FUND
NEED FOR SMEs IN OMAN
SME Contribution to Employment and GDP(median values)
Part of: Vision 2020; 8th five yr. plan; Budget 2012
Oman ?
Source: Meghana Ayyagari, Thorsten Beck, and Asli Demirguc-Kunt; World Bank paper 3127
One who aims for the stars shoots higher than the one who aims for the trees......
SME Development Fund
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Oman Economic Forum, 2012
SME DEVELOPMENT FUND
CHALLENGES (internal & external)…
1. Insufficient interest in & understanding of entrepreneurship
2. Inadequate understanding of cash flow, marketing,
management
3. Market access: private customers and government tenders
4. Gaps in the delivery of finance:
a. Availability - 200% collateral, delays kill opportunity
b. Inadequate monitoring leads to bad debt.
5. Business discipline, commitment and customer focus,
among existing entrepreneurs
Others: rentals, technology, equity, manpower, administrative procedures
source: World Bank 2004 report; Booze Allen 2009; NCPM survey 2011
One who aims for the stars shoots higher than the one who aims for the trees......
SME Development Fund
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Oman Economic Forum, 2012
SME DEVELOPMENT FUND
SOLUTION- THE FOUR POINT PLAN
1. ‘Creating’ Entrepreneurship (create new SMEs)
 Entrepreneurial Campus
 Developing Senior Potential Entrepreneur
2. Nurturing (making SMEs ‘bankable’)
 Software; Accounting Support
 Monitoring
 Mentoring
3. Funding
 Speedy & Flexible Financing
 Interest Subsidy – for compliance with ‘nurturing’ discipline
4. Legitimizing
 Helping SMEs to break into ‘big boys’ club
 Website based transparency
Work with all stake holders to create a ‘cluster’ of competence
One who aims for the stars shoots higher than the one who aims for the trees......
SME Development Fund
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Oman Economic Forum, 2012
SME DEVELOPMENT FUND
SME FUND AND NCPM- Operating Structure
SME DEVELOPMENT FUND
(under formation)
NCPM*
Grants, Staffing
•CAPITAL RO 100 MILL
•PENSION FUNDS/ INVESTORS
•GRANT ($30 mill -1st tranche)
•SOFT LOAN ($ 65 mill)
•OFFSET PARTNERS
Outsourcing
Funding,
monitoring
Nurturing
Legitimizing
EXTERNAL
AGENCIES
Training
UNIVERSITY
STUDENTS &
POTENTIAL
ENTREPRENEURS
SMEs
*NCPM isOne
the who
manager
thethe
SPV
through
grant
finance
($30
mill)
routed
to the
Fund
aims&for
stars
shootswhich
higher
than
the one
who
aims
for the
trees......
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SME Development Fund
Oman Economic Forum, 2012
SME DEVELOPMENT FUND
THE GOAL (10 yrs.)
1. Achieve profitability from year 2
2. Target 500,0001 students over 10 yrs.
3. Multiplier difficult to estimate - ‘goal’:
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•
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7,500 SMEs; some growing to ‘large’ – depends on ‘Legitimising’
50,000 additional jobs
contribute RO 1,000,000,000 to GDP annually
4. Nurture and finance 20001 SMEs
Cluster of support services – accounting, training, incubation, angel investors
1
Light touch training to 500, 000 students; 2000 SMEs based on available data
One who aims for the stars shoots higher than the one who aims for the trees......
SME Development Fund
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Oman Economic Forum, 2012
SME DEVELOPMENT FUND
SO WHAT?....Billion Rial question
Commercial opportunities
1. Financier – opportunity equal to all six leasing Cos
2. Market access / logistics – both ends of value chain
3. Business Advisory services
4. Incubation- no capacity in manufacturing, logistics
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Link in to the Fund; other financiers; NTBI
5. Angel investor network (indebted youth)
• Symbiotic relationship: SMEF; Sharaka; Growfin; incubators
SME Fund – NCPM will be glad to help [email protected]
One who aims for the stars shoots higher than the one who aims for the trees......
SME Development Fund
Oman Economic Forum, 2012
Thank You
“..youth are the present and future of the nation…”
His Majesty the Sultan, while inauguration the 5 th session of the Council of Oman
One who aims for the stars shoots higher than the one who aims for the trees......
SME Development Fund
15
Oman Economic Forum, 2012