STRATEGIES FOR DEVELOPMENT OF RURAL ECONOMY

RECOMMENDATIONS Government Amendment Act/Training of Government Stakeholders The government of the day should amend its act or bill so that young and women entrepreneurs should be the focus group for assistance. There should be an Act of parliament that focus thoroughly on the Micro, Small and Medium Enterprise. All government ministries and stakeholders should be trained on Micro, Small and Medium Enterprise so that when visiting or facilitating a rural or communities, they are well equipped on training of rural communities. Training of Kava Farmers All kava farmers should be trained on the following: i. Kava planting – the process of planting, land management ii. Kava processing – the process of making it a dries products iii. Young Entrepreneurs – how to run a business, how to technically build a young entrepreneur to become a business minded young man. iv. Business Plan – writing of a business plan should be a young entrepreneur’s equipment in sustaining his business. v. Financial Institutions Approach – ways and requirement a financial institutions require for an entrepreneur to acquire a loan. vi. Cluster – all youth and women should learn how cluster are introduced and run in India. Government Interventions The government should introduce more interventions to youth and women so that it can equip them for the running of the kava entrepreneur. It will sustain the business to a level that it will not need interventions since this product is an exporting product of Fiji. Government Collateral Export Agreement The government should make collateral agreements with other countries for the sustainability of the export market and farmers who have sacrificed in farming for more than 4 to 5 years does not lose interest when the finished product is ready and market resistance is always a problem. 48

Cluster Programme The introduction of cluster farming has been introduced in Fiji, but not to the extent that it really works well. Recommending for revival and implementation that it will build the individual to an extent that they are self-sufficient and self-reliant. Financial Institutions The government should introduce a bank that looks directly to the need of the small industries. For example, India introduces banks of the following; i. April 1990 - Small Industries Development Bank of India[SIDBI] ii. National Bank for Agriculture and Rural development[NABARD] CONCLUSION Kava Globalization and localization are more integrated today than ever before. Small island developing states such as Fiji are linked to global markets by their unique entrepreneurial and niche products. Fiji kava is an example of such a product. Fiji kava is a multipurpose commodity- a cash crop, and social, business and entrepreneurial product. Kava is a highly demand-dependent product. It plays a critical role in the social, cultural and economic life of Fiji. Kava trade clearly depicts the export-led growth and import substitution policy of the Government. Nevertheless, there exists a great potential of Fiji kava as a “niche” product in the global market. Much of kava business expansion depends on internal as well as external growth dynamics. The domestic demand for Fiji kava is growing significantly. Fijian diaspora and communities living abroad help in expanding kava export markets. The expansion of health and pharmaceutical uses of kava in international markets especially in European countries, USA and Australasia has created opportunities for expansion of kava related entrepreneurial activities in Fiji. However, the global competition, global market volatility and crisis, and above all, the global climate change through temperature and rainfall variability and climate induced events such as droughts and cyclones pose serious threats to the sustainability of Fiji kava. Moreover, youth and women entrepreneurs should be the focussed group for clustering, facilitating, manipulating in good training, clattering in words of empowerment to be a sustained entrepreneur. 49

REFERENCE i. Fiji Times (3 September 2007). The Good and Bad of Kava, ii. Fiji Bureau of Statistics (2017). Statistics on Population and Key Exporting products iii. Fiji Ministry of Agriculture and Waterways 50

Improving Access to Social Services for Vulnerable Families and Children through Promoting Social Protection Systems and Expanding Community-Based Social Assistance Yonas Araya, Unit Head, Ministry of Labour & Social Welfare, Eritrea Child Rights, AMSARA Eritrea E.mail: [email protected], Phone: +9581169017 Executive Summary The Ministry of Labour and Social Welfare (MLSW) is primarily mandated for the protection and social welfare of a wide range of vulnerable groups in Eritrea. These include diverse categories of Persons with disabilities including children with disabilities, orphans, vulnerable children with disabilities and in street situation, children in contact with the law, the elderly, women headed households, martyrs’ families and other vulnerable families. This work plan 2024 – 2026 has been designed to address the social protection needs of these vulnerable families and children. The work plan was prepared based on: i) Ministry of Labour and Social Welfare Strategic Plan (ii)The National Social Protection Strategic Plan (2023 – 2027), and iii) The Sustainable Development Cooperation Framework between the Government of the State of Eritrea and the United Nations (2022 – 2026). The work plan incorporates four key areas of intervention: i) Ensure access to social services for vulnerable families and children with promoting social protection needs. ii) Integration of shock responsive social protection programming iii) Capacity development for organizations involved in implementing social protection programmes and services and social protection system strengthening. v) Evidence-generation and documentation of best practices and lessons learned of the community-based social protection programs and services. This social protection work plan (2024-2026) expects to reach the most vulnerable households in making a positive impact to improve their livelihoods, ensure access to basic social services, and invest in the health and education of their children and promote coping mechanisms with crises and shocks. The implementation of this work plan 2024-2026 will definitely contribute to the resilience of Eritreans to withstand shocks and contribute to the economic development of Eritrea. 51

1. Introduction Under the lead coordination of the Ministry of Labour and Social Welfare (MoLSW), the Government of the State of Eritrea developed a national social protection policy and strategic plan (2023 – 2027). The National Social Protection Strategy (NSPS) stems from the social justice perspective that fosters fairness and equity in economic, social, and cultural rights of all citizens by providing social protection services across different demographic categories and geographical locations irrespective of ethnic origin, gender, possessions, race, and religion. This work plan 2024 – 2026 is aligned with the national social protection strategic plan and places its primary focus on socio economic assistance to poor and vulnerable groups of society in to existing plans and policies in other relevant areas. The work plan is designed to implement the objectives indicated in the Eritrea National Social Protection policy and strategic plan (NPSP) namely: i) Establish and strengthen systems and capacities of social protection ii) Expand access to social assistance for vulnerable families and children; iii) Extend access to and coverage of quality social care services for the poor and vulnerable households and individuals. The total planned budget for the duration of the work plan is estimated to be USD 3,990,663.00 as outlined in the table of matrix. 2. Brief Situation Analysis of the sector in general In Eritrea, different population groups face various risks and vulnerabilities associated with age, gender, disability, health, employment, poverty, environmental, natural and human made disasters, which negatively impact their well- being. At present the Government of the State of Eritrea (GoSE) has been earnestly working to strengthen, coordinate and harmonize its Social Protection (SP) programs and services. The endeavors is geared to have a National policy for effective implementation. This policy focuses on the poor and vulnerable groups and is aligned to Eritrea’s development strategies and priorities. At nearly half of the total population, the wellbeing of children is key for a prosperous Eritrea. Children in Eritrea face various risks at different stages of childhood including malnutrition which may lead to physical, cognitive and psychosocial underdevelopment. The Government of State of Eritrea is committed to ensure the social protection of all vulnerable groups, including persons and children with disabilities, orphans, women-headed households, children exposed in the street life, the elderly people and families and children affected by HIV/AIDS. The social protection sector policy initiatives and development programs of the Government aim at 52

safeguarding the rights and promoting well-being of these disadvantaged groups in prioritizing to improve their livelihoods, access social services in education, health and in different aspects of social protection/assistance. There has been a growing recognition by policy makers that longer-term social protection programming has the potential to reduce poverty, strengthen equality, realize the rights to social protection and serve as a foundation in building livelihoods. The GoSE is committed and mandated to strengthen social protection interventions through the development of a comprehensive national social protection policy and strategic plan, defining and implementing various social protection programs and working to improve institutional capacity for service delivery. While the social protection interventions described in this section have a positive impact on improving the livelihoods of the vulnerable groups and on protecting children and improving access to social services, due to the growing social vulnerability and limited resources the scope and coverage of the vulnerable groups still remains a critical gap. ● The number of orphan children is a growing phenomenon resulting from man-made and natural calamities. As a result, an estimated number of about 27,221 orphans require socio economic support as well as proper care and parental guidance. About 7,000 disadvantaged children at risk lack education, proper care, guidance and protection or else some of them may drift to the street. Some children who are over 14 years who quit school require skills training and those who have lost contact with their families and are out in the streets require special educational and rehabilitation opportunities including those who are dropouts and victims of human trafficking to give them the opportunity to be productive citizens or else they will be exposed to a variety of adversaries including diseases and committing offences. ● Significant number of disadvantaged older people who have for various reasons been forced to live without meaningful support of their extended families. There are also beggars throughout the country of whom majority are women, children and older people. The majority on and off come to Asmara while the rest stay in the main towns of Eritrea. Interactive programs need to be strengthened to create a forum for older people to transmit the positive traditional norms, values and culture to the younger generation. Many older people do not have access to recreational facilities. ● There are yet a significant number of HIV/AIDS affected families and other orphans whose families need to be rehabilitated through income generation activities so as to 53

assist household members on a sustainable basis while preventive sensitization interventions should be strengthened in all areas with special focus to students. ● Inadequate manpower of skilled social workers deployed at zoba and sub zoba levels in particular in Northern and Southern Red Sea Regional administrations. ● Lack of updated data helpful for identifying effective methods of managing different types of disabilities, child abuse and neglect, street children, other victims of social evils with special attention to their appropriateness. A data system is also at its infancy to set up by which all required and available relevant information is collected, recorded and analyzed. ● Housing problem for critical War disabled veterans. 3. Goals and Objectives of the Work Plan (Based on the gaps and challenges/problems set goals) Goals and Objectives: The overall goals and objectives of this social protection intervention is to address the social vulnerability and build resilience of vulnerable families through promoting a range of social protection programs, policies, services, capacities and system strengthening carried out by the government and other partners in response to social vulnerability and poverty. Specific Objectives: ● Strengthen support to families hosting vulnerable children, persons with disabilities, women headed households, elderly and other individuals in need of care ● Strengthen shock responsive social protection system to build resilience of vulnerable households during humanitarian crises caused by natural and man-made disasters ● Strengthen the institutional framework for effective implementation of social protection programs ● Establish an effective monitoring and evaluation system for social protection Target Groups: The main targets of this social protection intervention are vulnerable families hosting children with disabilities, orphans, children in street situation, children in contact with the law, women headed households, the elderly and other vulnerable groups of the society. 54

Expected Results: ● An estimated 28,000 vulnerable families will be reached with community-based social assistance ● An estimated 84,000 vulnerable children will be reached to access basic social services, including education, health, protection and social inclusion of children with disabilities ● About 60,000 targeted families of children with disabilities, adolescents, parents and caregivers provided with community-based mental health and psychosocial support services ● Over 250, 000 community members, families of children with disabilities, parents and caregivers sensitized on social stigma and discrimination of children and persons with disabilities: positive parenting and prevention of violence against children ● Improved capacity of organizations delivering social protection programs and services ● Improved capacity of community-based Social Service Workforce delivering services in the areas of integrated social protection and child protection activities ● Referral mechanisms for vulnerable PWDs including children with disabilities enhanced ● Enhanced social protection information management system and registry of beneficiaries for effective identification, assessment and determination of social protection benefits and services 4. Strategy This work plan strategy is based on five strategic pillars as indicated in the National Social Protection Strategic Plan. These five focus areas are: i) Social safety net; ii) Livelihood and income promotion; iii) Social security and insurance; iv) Basic social services; and v) Institutional set-up and capacity building. Programme Implementation Strategies Community-Based Service Delivery: In partnership and collaboration with line ministries, developmental partners, CSO and other stakeholders, the MoLSW has continued to focus to improve access to basic social services for vulnerable families and children through promoting community-based service delivery. 55

Capacity development: Capacity building efforts will ensure better functioning of Government institutions, community-based SSW and civil society organizations in planning, budgeting, monitoring and implementation of social protection programs and services to deliver quality services and respond to vulnerabilities. Capacity to deliver quality services will be strengthened such as social protection implementing partners and service delivery training for technical managers, social workers, SSWF, and community-based rehabilitation volunteers. Cross-sectoral linkages: A multi-sectoral approach will be used to ensure that social protection services are delivered effectively and efficiently across indicators of nutrition, health, education and child protection and other relevant sectors. Social and behavioral communication will be also applied to ensure access and utilization of services and promote an inclusive social protection system across gender, children and disabilities. Resource Mobilization: Given the growing social vulnerability, resources mobilization for social protection programs and services is critical for expanding and reaching more vulnerable households and children. Evidence generation and Documentation: Data is instrumental to design, develop, and implement social protection programs as well as evidence-based advocacy. Targeting is better done based on data availability. Policy advocacy: To influence government authorities, policy makers, developmental partners and other stakeholders, advocacy strategies across all levels will be employed. This will contribute to increased accountability of the government and other duty bearers to deliver and provide quality services as well as creation of an enabling environment for the delivery of social protection services. Partnerships: MoLSW will continue strengthening partnership with developmental partners, civil society organizations, government ministries and other stakeholders for effective synergy of coordination and resource mobilization to deliver quality social protection services. Strengthening partnership and cooperation with Government ministries, civil society organizations (NCEW, NUEW, and NUEYS) and UN agencies to impart employability skills to vulnerable families and youth creation of different income generation activities to generate income. 5. Monitoring and Evaluation Within the existing structures of the Ministry of Labour Social Welfare at zoba and sub zoba level, the social protection programme will be closely monitored and supervised by team of 56

community-based social service workforce, branch office of the ministry and other grassroots implementing partners against set objectives, targets and indicators in the work plan 2024 -2026. In addition, the implementation of the social protection programme involved partners of line-ministries, zoba and sub zoba local administrations and civil society organizations, including NUEW and NUEYS. The MoLSW Headquarter office plays an important role in planning, monitoring and overseeing the progress of implementation through joint monitoring with developmental partners and provision of technical assistance in terms of guidelines, development training manuals, provision of training and financial management and disbursement to zobas. 6. Management Structure In collaboration and coordination with other ministries, government entities, civil society organizations and service providers, the Ministry of Labour and Social Welfare is the lead ministry for the implementation of this work plan. There are six branch offices of the ministry across all zobas and sub-zobas responsible for implementing the community-based social protection activities. At zoba and sub zoba level, there are project coordinators, social workers, Community Based Rehabilitation (CBR) workers who directly report to the zoba offices of the MoLSW. The zoba offices report to the Department of Social Welfare under the responsibility of the Director General in the main office in Asmara. The Director General is responsible for overall oversight and guidance of the project. The Director General is accountable and reports directly to the Minister Office. 57

List of acronyms used in this document CSO Civil Society Organizations DRM Disaster Risk Management IGA Income Generating Activities GoSE Government of the State of Eritrea MoLSW Ministry of Labor and Social Welfare M & N Monitoring and Evaluation MHPSS Mental Health and Psychosocial Support NSP National Strategic Plan NUEW National Union of Eritrean Women NUEYS National Union of Eritrean Youth and Students NSPP National Social Protection Policy NSPSP National Social Policy and Strategic Plan SP Social Protection SSW Social Service Workforce 58

The Effect of Women Entrepreneurs of Micro, Small and Medium Sized Business - Northern Province, Srilanka Ms.V.Thevakumari, Assistant Commissioner, Development of Cooperative, SriLanka E.mail: [email protected] ,Phone: +940779431870 Abstract The Small & Medium Enterprises (SME) influence in the socio-economic aspects of a country and it has been considered as the backbone of the source of rural economy. In Sri Lanka it is estimated that the SMEs account for over 75% of the total enterprises, constitute 45% of the total employment and make a significant contribution to the Gross domestic Product. Entrepreneurship is one of the most important contributors in the production process and women also play a vital role through Small & Medium Enterprises to the social and economic development of the country. Northern provincial enterprises account for a total 95 individuals and 51 groups from women. Jaffna accounts majority as individual and group also. (Department industries). 1.Introduction 1.1 Background to the Study Small and medium-sized businesses (SMEs) are significant to the socioeconomic development of a country because they help to create jobs, generate money, and eliminate poverty. The SME sector makes up 75% of all businesses in both developed and developing countries, and while they all contribute to the GDP, their contribution is especially significant to developing countries with high levels of unemployment, poverty, and income inequality. The majority of the population in the Northern Province depends on agriculture, fishing, and small businesses for their living. The most of livelihood activities depend on natural resources, which provide a minimal opportunity for economic development. Furthermore, the main goal of the programs to reduce poverty was to improve people's sources of income through the growth of sustainable small and medium-sized businesses. It is acknowledged that developing an 59

entrepreneurial culture will undoubtedly aid in the economic development of Sri Lanka's northern area when considering the value of time, the availability of natural resources, skills, and marketability. In the northern region, after the civil war, Women-headed families own the potential resources to engage in income generating activities with the assistance of their family members or other supporting sources both financially and physically. In this direction, government intervention through Divisional Secretaries, Central Ministry of Women, other all line ministries support and Child Affairs and Department of Samurthi supports have created a positive change among the women and made them as micro and small entrepreneurs in all five districts in Northern Province. Further- more, Provincial Council managed departments viz, Department of Cooperative , Rural Development, Social Services, Rural Industries ,and Provincial Ministry of Women’s Affairs also financed and developed many rural industries run by women societies in the remote areas. Women and SMEs Female labour force participation is important for an economy for many reasons. It indicates the utilization of labour in an economy (and in turn influences the growth potential); relates to income/poverty status; and acts as a signal of the economic empowerment of women. However, latest available data for Sri Lanka indicates that out of the total ‘economically inactive population’ of the country, 69 percent are females, and out of the total ‘economically active population’ (i.e., labour force) females account for only 34 percent. This implies that there is a large untapped reservoir of manpower that could be utilized for the development of the country, while empowering the individuals (i.e., females) and benefiting society as a whole. Sri Lanka is predominantly an agricultural economy with 82 percent of the households still in the rural sector. Women constitute 50.7 per cent of the population and are considered to be a valuable resource potential in the rural agricultural sector of Sri Lanka. Women are the majority of the rural population and they earn their livelihood predominantly through agriculture based activities. Of the entire female labour force participation, nearly 31.7 per cent of women are engaged in the agricultural sector. However, the role of women in agricultural production, agribusiness and agriculture based SMEs has not been widely explored. Women in agriculture based activities help farmers in field operation, manage the livestock production and dairy products, and participate in poultry agriculture and home gardening. However, their involvements in agribusiness activities and SMEs based on agriculture are at a low level due to many social barriers and constraints. 60

In Sri Lanka, a majority of women entrepreneurs are in micro-enterprises, a large number of which operate in the informal economy, and they tend to be grouped in particular sectors such as food processing and textile. Those who argue that men were better at business based it on socio cultural restrictions on women such as, the household work burden, limited mobility after dark and concern about reputation, better knowledge and skills of men, and superior physical strength of men. Lack of access to finance, lack of adequate financial literacy, negative norms and attitudes towards entrepreneurship as a career option, limited mobility, lack of access to networks and communication, an unequal share of family and household responsibilities, and no maternity protection, are some of the factors behind the low visibility of women in the SME sector. Additionally, there are invisible structural barriers in the form of traditional customs, domestic and social expectations that restrict the mobility of women and prevent them from taking on the role of entrepreneur. 1.2. Research Problem Examine the ultimate result and key issues of governmental assistance for women entrepreneurs and their level of success through the cooperative movement In accordance with a cabinet decision made on 2016.03.09, allocation of at least 25% of the provisions for women from the projects implemented for Rural Economic Development, central institutions, ministries, and non-governmental organizations have been influencing the growth of women entrepreneurs through a cooperative movement. It is to support industrial growth or livelihood in the form of distribution of tangible goods and soft skills. Despite it, there is no discernible progress in either the concrete or intangible aspects of sustainability in the north's small and medium-sized business sectors. This study is attempting to determine and investigate the outcome and pertinent aspects of governmental policy and support in the success rate of women entrepreneurs. 1.3. Research Objective ❖ Examine the socioeconomic, cultural, technical, and financial constraints that prevent women working in the small- and medium-sized business sectors from utilizing external financial support. ❖ Aim to provide policy-level recommendations to increase women entrepreneur’s access to business towards contributing to national GDP. ❖ Explore the government's policies and initiatives that inspired them to build sustainable businesses. 61

1.4. Research Questions What are the challenges stopping the growth of women entrepreneurs? What percentage of the country's GDP is contributed by Northern small and medium industries? Is this government policy and support inspired them to develop a sustainable future? 1.5. Scope of the study Due to civil war and natural disasters, the Northern Province has a large number of women-headed households that are classified as being below the poverty line. In the Northern Province, there are 75,601 households with a female head of household. The noteworthy aspect is that 34,560 women with ages between 25 and 45 are considered young widows. They were unable to obtain stable employment or a suitable means of subsistence to support them. Additionally, they lack the necessary educational credentials to compete in the modern work market. According to a field assessment and statistics held by the provincial department of social services, widows and vulnerable families headed by women are in extremely precarious financial and social security situations as a result of their dependence and need. They have been having problems generating revenue and maintaining their way of life. They have been engaged in a variety of home-based activities that are mostly in the beginning stage classified as micro industries in order to produce their own food and currency. 1.6. Limitation ✔ Insufficient policy and regulatory framework for women entrepreneurship. Some policies recognizing the importance of women’s entrepreneurship show public commitment but have still not delivered gender-inclusive macro-economic policies to encourage women’s entrepreneurship, such as preferential grants, business development services for women SMEs, removal of discriminatory fiscal policies, or strengthening women's chambers of commerce. ✔ Inadequate data and evidence on female entrepreneurs, as well as a lack of knowledge ✔ loops to inform better policies and practices, 62

Gender-disaggregated data on entrepreneurship is limited to that maintained by department officials. They collectively maintain all the data and information. It is difficult to evaluate. Nowadays in that area, improvisation plans also work on provincial ministry. ✔ The Northern Province has a relatively small number of participants. At the field level, when coordinating with ground-level officers, there was a low number of women and small-medium entrepreneurs, and it was difficult to obtain a list of participants who fell under the definition. The outline indicated definition of SME is a total investment with an annual turnover not exceeding Rs.750 Mn. 2: Literature Review 2.1 Administration of Northern Province Northern Province is located in the north of Sri Lanka surrounded by the Gulf of Mannar and Palk bay to the west, Palk strait to the North West, the bay of Bengal to the north and east and the Eastern, North central and North western provinces to the south Northern province is the 3 rd largest province in the country by 13.54%of total area. Figure 1 Northern province overview Source from: NPC statistical handbook,2019The Northern province of Sri Lanka comprises five administrative districts namely, Jaffna, Kilinochchi, Mannar, Mullaitivu and Vavuniya. There are 34 Divisional Secretariats and 34 Local Authorities , Such as one municipal council, 5 Urban council and 28 Pradhasiya Sabas administratively rendering mandatory services to the public. It covers an area of 8896.65sqkm exactly 13.54% of the total area of the island. This region has a forest cover of 3768.49sqkm and Inland water area covers 415.15sqkm. ( Chief Secretary’s Secretariat, Statistical Information of Northern Province,2022) 63

2.2. Population in Northern Province The total population of the Northern Province as per the statistics is 1.266 million. In the total 47.3% male population and 52.7% female population. Out of these 84.5% of the population are living in rural area and only 15.5% of the population are in urban areas. 2.3. Define small medium enterprise The term SME is used to denote micro, small and medium enterprises. Based on their level of development, different countries classify SMEs differently. The total number of workers, yearly revenue, and total investment is the often utilized yardsticks. The SME policy framework in Sri Lanka identifies SMEs based on the number of workers and yearly revenue. (Framework for National Small and Medium Enterprise Policy) T Table 1 Define Small Medium enterprise. Source from: National policy frame work 2.4. Challenges to small-to-medium-scale women's emancipation ❖ Social Barriers: The traditions and practices that are common in Sri Lankan society toward women can occasionally be a barrier to their development and prosperity. Religions and castes co-dominate and impede women's business owners. They encounter additional social difficulties in rural areas. ❖ Families: In modern society, women have strong emotional ties to their families. They are acting in a totally impractical way. They are tasked with taking care of the entire household, as well as the kids and other family members. They are overworked with household duties, including 64

child care, giving their spouse additional attention, and dealing with their in-laws, which consume a lot of their time and energy. ❖ Lack of family support: This is thought to have a significant impact on the entrepreneurial behavior of women. Families may be very helpful and supportive in assisting women to create business ideas, but in other circumstances, families are seen as limitations by women. ❖ Male-dominated society: Although there are equal rights for men and women in our constitution, in practice, there is no equality in rural regions. In many areas of life, women are overlooked. Women are not given the same rights as men. People in rural regions have a preconceived notion that women should solely perform domestic tasks. The family patriarch must provide his or her consent before they may start a business. Male dominance and entrepreneurship have always been associated with each other. All of them hinder the development of female businesses. Male business owners, therefore, constitute a barrier to female business owners' success. ❖ Absence of entrepreneurial ability: Rural women business owners are really concerned about this sort of deficiency. They lack an entrepreneurial mindset. Even after participating in numerous entrepreneurship training programs, female entrepreneurs occasionally struggle to overcome the dangers and difficulties that might arise in organizational work. ❖ Inadequate knowledge of newly developed technology: A lack of knowledge about the new technology was one of the factors limiting agricultural productivity, according to many scholars. Access to agricultural information and technologies is inadequate for women. 65

❖ Severely constrained networks: In comparison to male entrepreneurs, women tend to know fewer business owners. In other words, males have more social connections than women do, giving them more access to contacts, knowledge, and economic prospects. Because they have fewer professional contacts, role models, and mentor-ship opportunities than men, women are already at a disadvantage. This might eventually have a negative impact on their enterprises. Understanding the study issue and developing the approach involved brainstorming sessions and focus group discussions. The statistical software will be used to analyze the quantitative data from the sample survey. Microsoft Excel will be used for the analysis of secondary data. Additionally, the major purpose will be used to analyze and categorize the current literature. 3: Discussion and Finding 3.1 .Demographic characters Population Table 2 Source from Department of Cooperative Development , NP,2022 According to the Department of Cooperative Development, Northern Province data 3975 entrepreneurs are women. That means 75% women participation is available here. Figure 2:- Entrepreneurs in Northern Province, 66 Total Entrepreneurs Women Entrepreneurs Male Entrepreneurs 5265 3975 1290

3.2 Industry in Northern Province No District Individual Micro Industry Small Industry Medium Industry 1 Kilinochchi 1,006 2 2 Mannar 125 - - 3 Vavuniya 346 1 1 4 Mullaitivu 189 1 - 5 Jaffna 1,679 91 - Total 3,345 95 1 Table 3 Industrial availability, Department of Industry , NP,2022 Figure 3:- Industry available in Northern Province, When we consider the small, medium and micro industries in the Northern Province, micro industries are higher than the small and medium industry. 67

Compare to the five districts, Jaffna has more women entrepreneurs than other four districts. It may depend on a major factor of population. Because Jaffna's population is higher than other districts. 3.3 Individual and Society women entrepreneurs Individual women entrepreneur Society women entrepreneur Jaffna 560 95 Kilinochchi 357 47 Mullaitivu 259 129 Mannar 57 7 Vavuniya 43 11 Table 4 ; Individual and Society women entrepreneurs 68

3.5 Some studies - Successful women Entrepreneur in Northern Province of SriLanka 3.5.1 Vali North Women Entrepreneurs Cooperative Society.- Jaffna District Vali North Women Entrepreneurs Cooperative Society consists of 140 women in their group. Mainly focus on dried fish products. They have demand for local and international level also. Part time they are functioning value added food production preparation also. According to their demand they are getting profit also. They informed the North Provincial Council to help them for their further development. They are providing equipment, training and exposure visits also. But their satisfaction level of given support is very poor. They are expecting financial assistance from them. 69

3.5.2. Sathu Star (Pvt) Ltd.- Mullaitivu District Sathu Star (Pvt) Ltd owned by Mrs.Sairani, She is a war affected women headed family per- son and became a women entrepreneur by her own endeavor. She employed around 17 women workers and earns profit of Rs.1.2Mn per month. She produced 32 varieties of value-added products. Such as Centella pappadam, Curry Leaf Pappadam, Moringa Pappadam, Gymnema pittu flour, Nutrient flour, Naval koffee etc. She informed the North Provincial Council, Department of Industries, to help her become a women entrepreneur. They are providing equipment, training, marketing linkages and exposure visits also. And also she said that the department of industry gave regular advice on time required on time. She was fully satisfied with provincial council service. She explained, service from government departments is enough and encourages distributing the equipment than financial support. She get so many awards for her efforts including the president's effort also. 70

3.5.3 Possible Green Private Limited (Herbal Tea Product)- Kilinochchi District Possible Green Private Ltd owned by Mrs. Kokilavani, She became a women entrepreneur by her husband’s support. She employed around 15 women workers and earned 20% of their investment. She produced 127 varieties of value-added herbal tea and exported the entire product. Big demand for her market on the international level. London, Germany and Italy country purchasers are buying her products continuously. She was informed that the Export Development Board gave a chance to visit Australia and Germany. The Northern Provincial council encouraged marketing and did not give any financial support to them. Possible Green Private Ltd owned by Mrs. Kokilavani, She became a women entrepreneur by her husband’s support. She employed around 15 women workers and earned 20% of their investment. She produced 127 varieties of value-added herbal tea and exported the entire product. Big 71

demand for her market on the international level. London, Germany and Italy country purchasers are buying her products continuously. She was informed that the Export Development Board gave a chance to visit Australia and Germany. The Northern Provincial council encouraged marketing and did not give any financial support to them. 3.5.4 Nature Wings Pvt (Ltd) - Poonagari, Kilinochchi District Nature Wins (Pvt) Ltd owned by Jeyamalar fransis, She became a women entrepreneur by her own endeavor. She employed around 12 women workers and 15% profit earned monthly. She produced value added cashew products. Such as Backed Cashew, Dried Cashew, Salted Cashew and etc 72

5: Conclusion Small and medium-sized women entrepreneurs face several socioeconomic obstacles that limit their ability to achieve economic emancipation through entrepreneurship, but they are also capable of overcoming them, having an influence on their communities, and experiencing equitable economic empowerment. There is a serious knowledge gap about company development services. Both the public and private sectors work hard to guarantee that services are available for rural women as well as other entrepreneurs who are in relatively developed and accessible places. The sample survey results indicated that there is a knowledge imbalance that is influencing how well women entrepreneurs do. For instance, the majority of company owners who wish to grow their companies struggle to obtain information on things like export procedures, important contacts, required certifications, etc. Additionally, departments save inaccurate data on government policy. For instance, it is unable to obtain secondary data on specifics such as how to allocate 25% of the available funding to women business owners and planned follow-up actions. Enabling the appropriate setup to access data accessible at the grassroots level is crucial for addressing the issue. The Industrial Department, Cooperative Department, Rural Development Department, Agriculture Department, Animal Production and Health Department, Inland Fisheries Department, Tourism Development Board, and Ministry of Women's Affairs are included in this Northern Provincial Council and are working to influence the rural economy and fulfill their mandate to develop women's economies as well. There is a significant communication gap between these departmental links. The study recommended that: ● Agencies and institutions in the Northern Province should make sure they adhere to the law; provide proper security for the protection of industrial products; launch a vigorous campaign for girls' education; and open entrepreneurial training centers for rural women. The government helps rural women to overcome socio-cultural hurdles that prevent them from becoming economically empowered, and they need to have a well-planned system in place to monitor their institutional actions and see how well they are doing with women-owned businesses. 73

● To help these small-to medium-sized businesswomen achieve economic empowerment via entrepreneurship, a regular monitoring system for women's entrepreneur groups and the creation of supportive networks are needed. ● To ensure sustainability Creating a community-based training (CBTOT) program for rural women will ensure its sustainability and assist them in overcoming socioeconomic barriers. ● Also, improving knowledge of functional co-operatives, social and low-investment enterprises is necessary and will support the target groups in poverty alleviation and ensure that they offer benefits to the wider communities within the target groups. ● There is the need for gender-responsive policy approaches that support women’s economic empowerment through entrepreneurship in Sri Lanka ● This study was conducted over a short period of time, just three months. The sample size is 20, which represents 25% of all entrepreneurs. In light of the country's present situation, this study has to be given more consideration. I contend that more extensive research with a larger sample size is required to make conclusive scientific choices. List of References Central bank of Sri Lanka, (2022). Annual report of the monetary board 2022 [pdf]. Re- trieved from https://www.cbsl.gov.lk International Finance Corporation (2013), Women owned SMEs: A Business Opportunity for financial Institution [PDF]. A Market And Credit Gap Assessment and IFC’s Portfolio Gender Baseline. Retrieved from fc.org/wps/wcm/connect/44b004b2-ed46-48fc-8ade- aa0f485069a1 Ministry of Industry and commerce (2021). National policy framework for Small Medium Enterprise (SME) development [PDF]. Retrieved from http://www.industry.gov.lk/ Office of Deputy Chief Secretary – Planning (2022). Vital statistic handbook 2022[PDF]. Northern Provincial Council. Retrieved from https://np.gov.lk 74

An Empirical Assessment of How the Government Policies and Regulations Influence the Performance of the MSMEs in Malawi Mr. Orbort James Ngwira, Chief Skills Development Officer, Office of President and Cabinet, Malawi, [email protected] , Phone : + 265 99464465 Introduction The Government of Malawi (GoM) has placed considerable emphasis on the Micro, Small and Medium Enterprises (MSME) sector, recognizing its crucial contribution towards economic growth, job creation and poverty alleviation. As the country strives to diversify its economic base and tackle the issues of unemployment, food security and industrialization, the growth of MSMEs is considered to be the engine of the drive. However, despite this newfound enthusiasm, MSME in Malawi face an array of challenges that often hinder the dreams of building successful ventures. This writeup probes into the influence of government policies and regulations to the performance of MSMEs, some of the most pressing obstacles confronting the MSME sector and their proposed solutions in Malawi. Efforts to Create Conducive Environment for MSMEs Government commenced the drive to develop and promote small enterprise activities way back in the 1970’s with the creation of SME support institutions including the Development of Malawian Traders Trust (DEMATT) which later transformed into the Development of Malawian Enterprises Trust (DEMAT), the Malawian Entrepreneurs Development Institute (MEDI), Small Enterprise Development Organisation of Malawi (SEDOM). This period also saw the creation of membership and advocacy organisations including the National Association of Business Women (NABW), the National Association of Small and Medium Enterprises (NASME) among others. In the early 2000s the Division of Small and Medium Enterprises was established as a stand-alone division to complement the institutional set-up for SME In the course of time a number of specific programmes have been implemented by the government to support SME development efforts, and these include: The Small Enterprise Development Programme (1993 to 1996) and the Entrepreneurship Development and Employment Creation Programme (1997 to 2000). These two programmes, built the capacity of officers that led to the formulation of the first ever policies in support of the small enterprise sector, namely, the Small and Medium Enterprise Policy 75

approved by Government in 1998; and the Microfinance Policy approved by Government in the year 2000. These are some of the efforts that have been implemented in the past to improve the operating environment for MSMEs. However, in view of the fact that the environment is dynamic, there is nothing like a perfect environment as the government must continuously strive to improve the environment to keep pace with national, regional and international developments. Policy Framework on MSMEs in Malawi Numerous efforts to improve the environment have been implemented, and they include; government consolidated efforts to make sure the MSME sector is afforded with opportunities. It started implementing the SME policy approved in 1998. The policy helped guide the sectors efforts in enabling enterprise growth in Malawi. The policy aimed among others to further ● improve access to finance ● improve access to business development services ● improve access to information ● skills and technology ● improve operations of the value chains ● promote enabling legal and regulatory framework. Lack of a strategy for export development was highlighted as one of the reasons contributing to MSMEs failure in the past. In 2012, Government launched the National Export Strategy which is aimed at building Malawi’s productive base. The priority areas of the National Export Strategy were set with MSMEs involvement in mind. The products focused are those that MSMEs can be involved in and benefit therefore creates more opportunities for the MSME sector. Government changed the way policies and strategies are implemented by adopting the sector wide approach. The approach helps to avoid duplication of efforts and initiatives to the SME sector. This approach enables all players in the MSME sector, private and public, to work together to address the needs of the sector. This is unlike the piecemeal approaches taken before. 76

Government took a further step to restructure and rationalize public MSME support institutions. In this regard, SEDOM, DEMAT and MEDI have been merged to form the Small and Medium Enterprise Development Institute (SMEDI) with the view of facilitating the growth of MSMEs in Malawi. In 2019, the Government of Malawi reviewed the Micro, Small and Medium Enterprises (MSME) Policy. The revision was aimed to create a modern and effective framework to guide the development of vibrant, competitive and sustainable MSMEs in Malawi. It was intended to update the Micro and Small Enterprise Policy Statement (MSEPS), first issued in October 1998 and revised in 2000. The Policy was based on a thorough analysis of the MSME sector in Malawi conducted in 2011 and 2012. The policy was designed to provide opportunities to MSMEs in areas of accessing: ● markets ● affordable finance ● Business support services and other support services. It was expected that when the Policy is successfully implemented, a more competitive and diversified MSME sector would be developed. The Policy was a hope for a new chapter for the growth of the micro, small and medium enterprise sector and national economic transformation in Malawi. The effort did not end on the MSME policy 2019, in 2020 the government of Malawi amended the Public Procurement and Disposal of Asset Act of 2017 (Participation by Micro, Small and Medium Enterprise). This Order 2020 applies to participation, preferences and reservations of MSME and marginalized groups in public procurement of goods, works and services in Malawi. The supplier shall be eligible to enjoy the preferences and reservations under this order 2020 if the supplier produces a proof of being registered as MSME under the order or a business entity. The government of Malawi in collaboration with all stakeholders continues to explore additional ways and means of further improving the legal, policy and operating environment through the implementation of its strategies that will assist in creating innovative and sustainable enterprises. The 2019 Malawi Fin Scope MSME Survey estimates that there were almost 1.6 million MSMEs in the country, employing about 1.8 million people in total. About three in four enterprises (74%) are micro enterprises, 23% are small enterprises and only 3% are medium enterprises. It is estimated that the MSME sector contributes about 40% of gross domestic product (GDP) and 24% of employment, and that about 21% of the country’s adult population derives their livelihood from the sector. This contribution is as a result of proper framework of policies and tireless efforts by the government. (Malawi FinScope MSME Survey 2019) 77

Challenges Faced by MSMEs and Their Proposed Solutions in Malawi Despite all of these efforts, there has been limited MSME growth and development in the country. This has been a result of regulatory and institutional weaknesses, policy inconsistencies, poor coordination of business development service providers and rapid changes in the business environment both locally and internationally. Outlined below are the challenges faced by the MSME sector and their proposed solutions. i. Limited Access to Finance One of the primary obstacles faced by MSME in Malawi is the lack of access to finance. Traditional financial institutions often have strict requirements and collateral demands, making it difficult for MSMEs to secure loans or start-up capital. The majority of entrepreneurs are not able to write business plans required by banks. Youth-led enterprises don’t even approach the banks to seek credit because banks are not open to serve MSMEs as potential customers for credit. Banks welcome MSME as potential customers for deposits. There is also limited knowledge of alternative funding models - e.g. stock exchange, private equity, venture capital, blended finance amongst most MSMEs. Some of the MSMEs have heard about alternative funding models, but don’t have knowledge and understanding of these models. They consider these alternative funding models as products available to only large enterprises. To overcome this challenge, the government and private sector should collaborate to establish dedicated youth-focused financing programs, such as low-interest loans, grants, and venture capital funds. Additionally, fostering partnerships with microfinance institutions can provide alternative financing options tailored to the needs of MSME. ii. Insufficient Education and Trainings Many women and young entrepreneurs in Malawi lack formal education and practical training in entrepreneurship and this creates a big gap in financial management. Issues relating to access to ICT by MSMEs remain a big challenge among the majority of MSMEs as well as cost barriers. To address this gap, educational institutions, government agencies, and NGOs should work together to develop entrepreneurship-focused curricula, workshops, and vocational training programs. These initiatives can equip entrepreneurs with essential business skills, including financial management, marketing, and networking, enabling them to navigate the challenges of running successful enterprises. 78

iii. Tax policies Tax policies do not specifically offer incentives to MSMEs and work needs to be done to look at how tax policy can be used to grow the SME sector. Government should consider creating a waver on taxation for MSME growth. iv. Access to markets MSMEs find it difficult to access markets that offer competitive prices due to lack of information on viable markets. Most women and youth entrepreneurs don’t take risk to go to unfamiliar places to sell their products and services unlike their men counterparts. To overcome this hurdle, entrepreneurs should be encouraged to explore markets, diversify their products or services, and leverage technology for online marketing and access to larger markets beyond national borders. Government support in terms of market research, export promotion, and trade facilitation can help young entrepreneurs identify viable market opportunities and establish linkages with potential customers both locally and internationally. v. Infrastructure and Logistical Challenges Inadequate infrastructure, including poor transportation networks and unreliable power supply, poses significant challenges for entrepreneurs in Malawi. The government, in collaboration with private sector stakeholders, needs to prioritize infrastructure development, investing in road networks, reliable electricity grids, and access to high-speed internet. By improving these essential infrastructure components, the cost of doing business can be reduced, logistical efficiency enhanced, and market reach expanded. vi. Corruption and Bureaucracy Corruption and bureaucratic red tape often discourage and hinder the growth of MSMEs in Malawi. To combat this issue, there must be a strong commitment to transparency, accountability, and good governance. Streamlining business registration processes, reducing unnecessary regulations, and implementing effective anti-corruption measures will create a conducive environment for youth entrepreneurship to thrive. vii. Cultural and Social Norms: Cultural and social norms can impede entrepreneurs, particularly young women, from pursuing entrepreneurial ventures. Promoting gender equality and empowering women through education and mentorship initiatives can help challenge these norms. Additionally, community outreach programs and awareness campaigns can 79

change societal perceptions of entrepreneurship, fostering a supportive environment that embraces innovation and risk-taking. Recommendations ✔ There is a need to assist MSME businesses with startup training and setting up of proper systems and to ensure compliance so that their businesses are internally ready to exploit opportunities. ✔ There is need for policy revision with a focus on industrialisation and a deeper understanding of the business environment. It is recommended that an awareness strategy should be developed linking the importance of formalization with other benefits such as access to financial institutions. ✔ The Government of Malawi must create an enabling environment that provides MSMEs equal opportunity with larger enterprises to access high-value markets. The government must provide training for MSMEs on quality standards and product development to ensure that MSMEs acquire knowledge and skills to develop products of high-quality standards to compete with large enterprises. ✔ The government must strengthen land registry and management practices to upgrade agricultural land to acceptable collateral to enable Agriculture MSMEs to use agricultural land to access credit from banks. ✔ Most of the MSMEs are able to calculate and know their annual turnover of their businesses, but most are not able to include silent costs like family labour, their own labour and other costs which come from family resources. As such the profits reported are higher than the actual. There is a need to educate MSMEs to provide a better picture of the business operations. ✔ Government departments and agencies should share and educate MSMEs about alternative funding models - e.g. stock exchange, private equity, venture capital, blended finance. While Some of the MSMEs have heard about alternative funding models, they don’t have detailed knowledge and understanding of these models. They consider these alternative funding models as products available to only large enterprises. Those who understand better about equity finance indicated that they would offer shares of their company to get financing for growth of their businesses. ✔ There must be a value chain analyses and improving awareness of the business support and infrastructure available to MSMEs. Developing innovative products that are tailored to the predominantly cash-driven economy within which MSMEs operate also promotes the transition to the digitization of value chains 80

Microfinance Institution for Young Entrepreneurs in Niger Mr Abdoulaye Saidou Abdoul Karim, Head Officer, Systems Finances, ASUSU SA E.mail:[email protected], Phone: +22797462303. Introduction Youth unemployment is a major challenge in Niger. The government alone cannot effectively combat this problem, and it must be supported by all interested stakeholders. Asefce international has adopted the logic of the National Employment Policy to promote youth entrepreneurship by equipping them with the necessary technical skills and promoting their access to credit. With this in mind, the organization has taken the initiative of setting up a microfinance institution specialized in granting credit to young people. This business plan is an analytical study of the ways and means that the institution will have to take up this challenge over a five-year period. This institution, specialized in granting, will be tasked with mobilizing financial resources, including young people's savings, and financing their income-generating and job-creating projects. Institutional Diagnosis Historical Background The Niger government alone cannot effectively combat youth unemployment and underemployment. It must be supported by all interested stakeholders. Asefce International has adopted the logic of the National Employment Policy to promote youth entrepreneurship by equipping them with the necessary technical skills and promoting their access to credit. With this in mind, the organization took the initiative of setting up a microfinance institution specialized in granting credit to young people. Scope of Services HARAKA Finance aims to have thousands of young members in its ranks during the business plan period. Even within the Solidarity Groups, members number in the thousands. This is an asset for the future institution. It will start its activities in Niamey. According to forecasts, by the end of the first business plan period, it will have covered at least two other regions of the country. Its starting point will be the young people grouped together in the Solidarity Groups. 81

Market and Competitive Analysis Potential Markets The Institution will target areas with good economic potential. In the experience of GS, these areas are broad. Generally speaking, the cooperative's potential markets are made up of all categories of the country's rural and urban population. Strategically, the cooperative's promising potential markets are made up of the entire population excluded from the banking or micro-financial system, economically active or likely to be so. The institution will strive to expand its potential markets through non-financial services, including training and financial education. Competition HARAKA Finance, a savings and credit institution for young entrepreneurs, was created in a competitive environment marked by the presence of several large MFIs such as ASUSU SA, Capital Finance, ACEP, YARDA, TAANADI, and others. The products and services offered by Niger's MFIs fall into two main categories: savings products and credit products. All MFIs offer practically the same products and services. What sets them apart is the way in which they offer them. Interest rates on loans vary from one MFI to another. These rates range from 14% to 36% for loans and from 0% to 8% for interest on savings. In its policy, HARAKA Finance will focus on diversifying and improving products that meet the needs of the youth community. It will also play on interest rates, giving priority to savings as a credit fund and taking into account the origins of other resources, while adopting a strategy that enables it to cover operating expenses. To do this, it will need to keep abreast of the services offered by other MFIs and their evolution, and the effects this may have on the effective provision of its financial services. 82

Description of 3 main competitors: IMF Name Localisation Product description Savings Credit Other ASUSU SA Throughout the country Demand deposits, term deposits,pensions, savings plan individual Individual GAs, GAs for groups. Fttening, warrantage, agricultural credit Training, technical assistance, customers follow-up Capital Finance Throughout the country Demand deposits,terme deposits,pensions, savings plan individual Individual GAs, GAs for groups. Fttening, warrantage, agricultural credit Training, technical assistance, Customer follow-up ACEP Through out the country Demand deposits,terme deposits,pensions, savings plan individual Individual GAs, GAs for groups. Fttening, warrantage, agricultural credit Training, technical assistance, customers follow-up Corporate Governance HARAKA Finance's activities are practically still in their infancy. Governance will consist of the following bodies: a General Meeting of Shareholders, a Board of Directors, a Credit Committee, a Management Committee and the staff. The Board of Directors has financial responsibility, sets strategy and oversees the work of the Executive Board, which, together with the staff, is responsible for day-to-day management. HARAKA Finance will gradually expand its organizational structure. Initially, there is likely to be a large volume of work for a small number of managers and staff. This may lead to overlapping or incompatible responsibilities. 83

This problem will be resolved as and when new staff is recruited. One of the changes to come is that these recruitments will include an internal auditor reporting directly to the Board of Directors, who will ensure that any errors or governance flaws are detected and corrected in good time. Organizational Structure and Personnel HARAKA is headed by the General Meeting of all members. The Board of Directors and Supervisory Board are elected by the General Meeting and regularly support the management team. These bodies are made up of members with a wide range of skills in all areas of activity. Day-to-day management of the institution is the responsibility of an Executive Committee made up of the Managing Director, the Chief Operating Officer and the Chief Administrative Officer. Staffs are recruited on the basis of personal skills. The Operations Department comprises the Credit Department with a Department Manager, analysts and loan officers, and the Operations Department with a Department Manager, a treasurer and three cashiers. The Administration and Finance Department comprises the Accounting Department with a Chief Accountant and an Accounting Officer, and the Administration Department with a Department Manager, a Secretary/Receptionist, a driver, two messengers and two night guards. It should be noted that these positions will be filled progressively as the company grows 3. Strategic positioning 3.1 Mission and objectives HARAKA Finance mission: To provide easy access to its financial and non-financial services for the community; all low-income but economically active young people or youth associations from rural and urban areas. Overall objective: Contribute to improving the standard of living of low-income but economically active young members, through financial and non-financial services adapted to their socio-economic situation. Specific objectives Specific objective 1: From year 1 to year 5, governing bodies are set up, staff are recruited and their capacities are strengthened Specific objective 2: From year 1 to year 5, the subsidies needed to start up activities are mobilized, and savings gradually replace subsidies 84

Specific objective 3: From year 1 to year 5, two branches are opened, Specific objective 4: From year 1 to year 5, the cooperative has over five thousand (5,000) members and is financially self-sufficient. 3.2 Vision To be the benchmark institution in the sub-region, meeting the financial and non-financial needs of the national delegations of Asefce International, partner associations and young entrepreneurs, by providing rapid local services through its dynamic branches, well distributed throughout its area of action. 3.3 Values and management principles 3.3.1 Values ● Transparency ● Proximity ● Speed ● Customer focus ● Solidarity 3.3.2 Management principles ● Synergy between different bodies ● Consultation ● Adaptability of products to young people's needs ● Risk minimization 3.4 Strategic orientations ● Develop and strengthen organizational capacities ● Achieve financial autonomy 4. Description of products and services In 2016, more than 5,000 young people were supervised by the largest existing MFIs. These young people represent potential HARAKA Finance members insofar as some of them are already used to saving and subscribing to savings plans. They have learned to save, hence the importance of savings as the cooperative's first product. Initially, the cooperative will develop the following savings products: ● Current account ● Term deposit & DAT 85

● Solidarity term deposit ● Pledge savings ● End-of-studies savings ● Production equipment savings ● Junior savings Similarly, young people at SGS apply for loans. Credit is the cooperative's second product. Initially, the cooperative will develop the following credit products: ● Solidarity-based commercial credit ● Agricultural credit (CAS) ● Solidarity-based small trade credit ● Solidarity production equipment credit ● Express credit ● Overdraft for young economic operators ● Overdraft for young employees ● Salary advance ● Health care credit The financial services offered by the cooperative include: ● Direct debit of salaries for young civil servants and government employees ● Money transfer operations Non-financial services offered to members include: ● Information ● Financial education ● Market information (demand, supply, product quality, prices, etc) ● Marketing channels To reach all categories of young people, the institution will have to segment its clientele by setting up different programs according to the type of clientele. Initially, while targeting the entrepreneurial clientele or those likely to become so through non-financial services, the Cooperative will adopt the following segmentation: ● Young unemployed graduates ● Young students and pupils ● Young illiterates ● Young people supervised by various players (such as Care International and TPO) ● Young GS members supervised by various players (such as JJB) ● Trained young entrepreneurs and young people who have learned a trade 86

● Young people who are more vulnerable than others, such as the disabled and the elderly ● Young employees, etc At a later stage, the cooperative will identify possible new segments not covered by the above classification. Action plan and financing requirements As this is the Cooperative's first business plan, and as it has the advantage of good savings collection potential through the Solidarity Groups, the action plan for the business plan period is based on two main priorities: capacity building and financial empowerment. The definition of strategies takes into account the previously defined orientations. As such, ambitions are limited to what appears, on the one hand, to be achievable over a 5-year period and, on the other, to the firm determination to ensure a dynamic and sustainable structure for the Cooperative. The cooperative will evolve and go through different phases of development: emergence, deployment, consolidation, introduction of new products and services. Just as the challenge of the first phase will be rapid development, the challenge of the second phase will be to consolidate the Cooperative's achievements and ensure that its managers and executives take charge of it. It should be pointed out that, according to microfinance specialists, 5,000 members - the number the cooperative expects to have exceeded by the end of the business plan period - is the minimum number of members at which a microfinance institution can claim profitability in its operations. The cooperative will strive to achieve financial autonomy within five years of starting operations. 5. Developing and strengthening organizational capabilities Capacity building is an ongoing challenge, as the Cooperative operates in an ever-changing environment. At the start of operations, it represents a major investment that weighs heavily on cash flow, and will attract the attention of management and partners alike. Following the official launch of activities, the priority will be to recruit start-up staff, and build the capacity of human resources, i.e. staff and management bodies. Priority activities will include: ● Mobilize subsidies ● Fit out head office and branches ● Set up management tools ● Train managers and staff to enable them to fulfill their respective missions ● Organize experience-sharing visits to discover adaptable experiences ● Provide coaching for the Executive Committee for at least three months 87

● Acquire management software and set up the Management Information System (MIS) to facilitate operations monitoring and control ● Develop partnerships with targeted players, as COSA alone cannot cover all the costs associated with non-financial services. No Description of capacity-buil ding actions Unit Cu(Fcfa) CT(Fcfa) schedule and cost of construction An 1 An 2 An 3 An 4 An 5 Financial autonomy 1 Promoting the institution 6 3000 18000 6000 3000 3000 3000 3000 2 savings and credit policy 1 6000 6000 0 6000 0 0 0 3 subsidy mobilization committee 4 500 2000 2000 0 0 0 0 4 brochures presenting the institution's products 1 2000 2000 2000 0 0 0 0 5 Administrative and financial procedures manual 1 6000 6000 0 6000 0 0 0 6 General operating rules 1 8000 8000 0 8000 0 0 0 7 organize information sessions on the institution's products and services 6 2000 12000 4000 2000 2000 2000 2000 88

8 Drawing up a medium-term cash flow plan 1 2000 2000 2000 0 0 0 0 9 Study on expanding non-financial services for young people 1 5000 5000 5000 0 0 0 0 10 Study to identify new market segments 1 6000 6000 6000 0 0 0 0 11 Location study for two branches 2 6000 12000 0 0 12000 0 0 12 Credit impact and customer satisfaction studies 1 6000 6000 0 0 0 0 6000 13 Organizational and financial audit 1 10000 10000 0 0 0 0 10000 Total financial empowerment 95000 27000 25000 17000 5000 21000 89

6. Financial projections 6.1 Financial assumptions By initiating investments in assets and activities, the cooperative expects to achieve satisfactory strategic and financial results, subject to the financial assumptions summarized in the table below. Heading Year 1 Year 2 Year 3 Year 4 Year 5 Savings Number of savers 5000 10000 20000 40000 80000 Growth rate 100% 100% 100% 100% 100% Average deposits 13000 13000 13000 13000 13000 Outstanding savings 65 000 000 130 000 000 260 000 000 520 000 000 1 040 000 000 New grants credit funds 10 000 000 10 000 000 10 000 000 10 000 000 0 Borrowing 0 1 368 000 12 049 877 33 159 315 71 806 960 Outstanding loans 13 680 000 120 498 768 331593148 718 069 601 1 433 010 890 liquidity 1 520 000 13 388 752 36 843 683 79 785 511 159 223 432 90

6.2 Depreciable fixed assets No Description of fixed assets Unit Cu(Fcfa) CT(Fcfa) Acquisition Schedule year 1 year 2 year 3 year 4 year 5 1 Preparing an application for approval 30000 30000 0 0 0 0 2 layout of head office and branches 50000 20000 0 0 15000 15 000 3 GIS software and implementation 1 30 000 30000 0 3000 0 0 0 4 Generator 1 25 000 25000 25000 0 0 0 0 5 Means of transport 60000 30000 15000 15 000 6 Branches electrification 2 10 000 20000 0 0 0 10000 10 000 7 Customer shelters 7000 5 000 0 0 1000 1 000 8 Computer network cabling 3 2 000 6000 2 000 0 0 2000 2 000 9 Telephone sets 3 500 1500 500 0 0 500 500 10 Telephone wiring 12 50 600 400 0 0 100 100 11 PC and accessories 24 1500 36 000 24 000 0 0 6 000 6 000 12 Laptops 4 2000 8 000 4 000 0 0 2 000 2 000 13 PC stabilizer 24 500 12 000 8 000 0 0 2 000 2 000 14 Server room UPS 3 1 500 4 500 1 500 0 0 1 500 1 500 15 Servers 3 8 000 24 000 8 000 0 0 8 000 8 000 16 Servers air 3 1 000 3 000 1 000 0 0 1 000 1 000 91

conditioner 17 Printer 8 1 000 8000 6000 0 0 1 000 1 000 18 Web sit 1 5 000 5000 0 0 0 0 5 000 19 safe-deposit box 3 10 000 30 000 10 000 0 0 10000 10000 20 Photocopiers 3 1 500 4 500 1 500 0 0 1500 1500 21 Scanners 6 500 3 000 2 000 0 0 500 500 22 calculator with roller 10 200 2 000 1 600 0 0 200 200 23 Financial calculator 6 500 3 000 2 000 0 0 500 500 24 Office tables 20 200 4 000 2 800 0 0 600 600 25 Office chairs 50 70 3 500 2 100 0 0 700 700 26 customer benches 20 150 3 000 2 400 0 0 300 300 27 Storage shelf 10 200 2 000 1 200 0 0 400 400 28 executive chair 5 300 1 500 900 0 0 300 300 29 Curtains 24 50 1 200 800 0 0 200 200 Total depreciable fixed assets 388 300 192700 30 000 0 80 300 85 300 92

6.3 Operating statement Heading Year 1 Year 2 Year 3 Year 4 Year 5 Financial income 4 970 400 43 781 219 120 478 844 260 898 622 520 660 623 Finance costs 2 600 000 8 018 880 17 527 980 36 505 490 73 889 114 Fixed expenses 41 200 000 42 436 000 43 709 080 45 020 352 46 370 963 Variable expenses 4 960 480 7 663 942 10 525 146 13 551 126 16 749 192 Total operating expenses 46 160 480 50 099 942 54 234 226 58 571 478 63 120 155 Gross income 43 790 080 -14 337 603 48 716 637 165 821 653 383 651 355 Depreciation and amortization 20 848 000 22 270 000 22 270 000 30 300 000 38 830 000 Provision for loan losses 410 400 3 614 963 9 947 794 21 542 088 42 990 327 Subsidy/Operating 60 000 000 30 000 000 20 000 000 10 000 000 0 Net income 33 491 520 34 317 434 81 038 843 184 579 565 362 431 028 Conclusion HARAKA Finance stands as a beacon of hope in Niger's battle against youth unemployment. This microfinance institution, driven by the vision of Asefce International, is strategically poised to empower young entrepreneurs by providing them with not only the financial resources they need but also the necessary skills and support to thrive in today's competitive landscape. Niger's youth unemployment crisis is a multifaceted challenge that demands collaborative efforts from all stakeholders. HARAKA Finance's mission aligns with the National Employment Policy, aiming to create a sustainable ecosystem for youth entrepreneurship. By focusing on transparency, proximity, speed, customer-centricity, and solidarity, HARAKA Finance is laying the foundation for a dynamic institution that prioritizes the needs of its members. In a competitive landscape populated by established microfinance institutions, HARAKA Finance distinguishes itself through its commitment to diversifying products and improving services. This includes prioritizing savings as a credit fund and adjusting interest rates to benefit its members. Furthermore, the institution is keen on expanding its reach through non-financial services, such as 93

training and financial education, to equip young entrepreneurs with the knowledge and skills needed to succeed. HARAKA Finance's strategic plan outlines clear objectives, including the establishment of governing bodies, mobilizing subsidies, expanding its branch network, and achieving financial self-sufficiency. With a robust action plan and financial projections indicating strong growth, HARAKA Finance is poised to become a catalyst for economic development in Niger, serving as a model for other institutions in the sub-region. As HARAKA Finance embarks on its journey to empower young entrepreneurs, it holds the promise of transforming the lives of thousands of young individuals, improving their standard of living, and contributing to the overall economic growth and stability of Niger. In doing so, it aspires to be not just a financial institution but a beacon of hope and opportunity for the nation's youth. 94

The Study of the Impact of Microfinance on Small and Medium Scale Enterprises (SMEs) in Sierra Leone: A Case Study of ECOBANK Microfinance Sierra Leone Ms. Jestina Kellie, Assistant Secretary, Human Resource Management Office (HRMO) [email protected], +23279706402 Abstract This research focused on the effects of Microfinance (MFI) on Small and Medium Scale Enterprises (SMEs) in Sierra Leone. The study examined the detailed profile of SMEs in Sierra Leone, particularly Freetown Municipality, and how these SMEs benefited from the Munafa Fund. The analysis of this research reveals that MFIs through the Munafa Funds have a positive effect on the growth of SMEs. In order to enhance sustained and accelerated growth in the operations of SMEs, credits should be client-oriented and not product-oriented. Extensive monitoring activities should be provided for clients who are granted loans. Data analysis was done using the Mixed Method Approach as the data collected was both quantitative and qualitative in nature. The quantitative data analysis was done by using descriptive statistics and the qualitative data analysis was done using a descriptive research method. A sample size of 120 potential respondents was identified using random sampling techniques. However, only 107 respondents consented to take part in the survey which constituted 89.17% of the total respondents. In addition, this research indicates that MFIs have had a positive effect on the growth of SMEs. Some of the critical success factors of MFIs include; greater access to credit, savings enhancement, and provision of business, financial, and managerial training. Although there are tremendous contributions of MFIs to the development of SMEs; however, there are challenges that bedeviled the operations of both SMEs and MFIs. The major challenge faced by SMEs is the difficult process associated with accessing credit of which collateral security and high-interest rate are major setbacks. On the other hand, MFIs face some challenges relating to credit misappropriation and non-disclosure of the relevant facts of the business operations of SMEs. This research work includes key findings, conclusions, and recommendations as related to our research objectives. 95

Introduction The revolution, of microfinance, urban and rural, started in Germany some 150-200 years ago from small informal beginnings as part of an emerging self-help movement: with the first thrift society established in Hamburg in 1778; The story of Germany is preceded by the earlier, but sadder story of the Irish charities or Irish funds, respectively, which emerged in the 1720s in response to a tremendous increase in poverty (Seibel, 2006). They started with interest-free loans from donated resources. After a century of slow growth, a boom was initiated by a special law in 1823, which turned charities into financial intermediaries by allowing them to collect interest-bearing deposits and charge interest on loans. Around 1840, around 300 funds had emerged as self-reliant and sustainable institutions, with high-interest rates on deposits and loans. They were so successful that they became a threat to the commercial banks, which responded with financial repression: getting the government to put a cap on interest rates in 1843. The Loan Funds lost their competitive advantage, which caused their gradual decline until they finally disappeared in the 1950s. Micro-credit is centered on small-loan facilities for poor people while microfinance is a comprehensive approach that embraces a range of financial services for poor people (Mago,2013; Helms 2006). It could be argued that among developing or middle-income countries, microfinance takes root as a poverty mitigation tool and is, therefore, more prevalent in poorer countries. There is an increased demand for microfinance because of its ability to meet the capital needs of the poor who could not meet the stiff conditions of accessing loans from the banks that required collateral as an ‘insurance’ against the loan given to their customers; operating in the unregulated, informal sector of the economy. The difference between the project size and the micro-credit size is generally financed through co-financing schemes with traditional banks With the help of the World Bank and other donors, microfinance institutions have vigorously spearheaded strategies mainly for ensuring that small enterprises are catered for through financial loans with low-interest rates. In Sierra Leone, small businesses form the backbone of the economy. Microfinance has a pivotal role to play in the growth of small businesses. Finance in West Africa had been quite scarce and the presence of micro-Finance institutions in these nations had filled the void that was left by commercial banks by providing small loans at the lowest interest rate in the 1980s and 90s. In this context, microfinance institutions have emerged as the viable solution to poverty and empowerment by providing credit and savings services to the multitude of smallholder producers and entrepreneurs to make up the agricultural and entrepreneurial sectors in West Africa. The emergence of micro-finance in Sierra Leone has played a great role in the promotion of small businesses by advancing small loans for business investments. 96

In recent times, the Government has also been a key player in the provision of micro-credit to SMEs through the Munafa Funds. Young entrepreneurs are also trained in financial management, especially on how to plan well and access micro-credit for their small business investments. Beneficiaries of microfinance in Freetown Municipality are given advice and training from experts who nurture them with the capability to manage and mobilize resources to develop their small-scale businesses over time. Financial services given by micro-finance institutions in Freetown Municipality significantly play an integral role in helping small-scale business owners leverage their initiative, accelerating the process of building incomes, assets, and economic security. Alleges a large number of small loans are needed to serve the poor people in Sierra Leone. The inflexible requirements of the commercial banks plus the perception that lending money to low-income businesses was a bad risk contributed to the incapacitated state of the small enterprises to remain inept and hampered in their investment. Over the last decade, however, successful experiences in providing finance to small businesses in Sierra Leone by micro-finance institutions & other players in the market have empirically demonstrated that small businesses, when given access to responsive and timely financial services at lower market rates, with proper business investment advice, could use the micro-credit loans given to them to invest in small scale enterprises to increase income and assets, and later repay their loans at lower interest rates. The purpose of this research is to determine the impact of Microfinance on the growth of Small and Medium Scale Enterprises in the Western Urban areas in Sierra Leone. Research Problem Statement, Purpose Statement, and Research Methodology Problem Statement Microfinance has an impact on the growth of Small and Medium Scale Enterprises in the Western Urban areas of Sierra Leone. Purpose Statement The purpose of this research is to determine the effect of Microfinance on the growth of Small and Medium Scale Enterprises in the Western Urban areas in Sierra Leone. Variables: The independent variable for the research is Microfinance. The dependent is the growth of Small and Medium Scale Enterprises. The unit of analysis: The unit of analysis for this research is the Medium Scale Enterprises in the Western Urban areas in Sierra Leone. 97