Founded in New Delhi in 1980 World Association for Small and Medium Enterprises (WASME) has established itself as the premier international organisation supporting MSMEs. It is probably the first Indian global civil society organization representing small & medium enterprises at the global landscape. Set up as a strategic resource center for MSMEs it has been facilitating their access to best business practices and financial assistance through online/offline training, technology transfer, and business consultation. In a freewheeling interview with SMEpost.com Editor K R Sudhaman, Sampa Banerjee, Executive Director, WASME shares her vision for a bright tomorrow for the MSME sector.
Q: What are the new initiatives you propose to take this year and perhaps in near future?
A: WASME is a more than 35-years-old international organisation. We have over 100 countries as members and associations. For last 35 years we have been working for the development of MSMEs only.
One recent addition as a new initiative is a Neuro-Linguistic Programme (NLP) under our Entrepreneurship Development Program.
It is a psycho-analysis tool we have developed for prospective entrepreneurs and persons already into business. We assess their status where they are facing problem and accordingly provide solution.
{Creators of NLP claim a connection between the neurological processes (“neuro”), language (“linguistic”) and behavioral patterns learned through experience (“programming”) and that these can be changed to achieve specific goals in life.}
Apart from this, we are dealing with 35 different industry segments. Recent addition is medical device manufacturing units. WASME is already working with Ministry of Health through National Health System Resource Centre (NHSRC).
Government of Andhra Pradesh and WASME has agreed to sign an agreement for one eco-park for medical manufacturing device producers and probably by12th February this will be done. We are the knowledge, international and national MSME partner for Andhra government.
250 acres of land has already been identified as a kind of incubation centre. Government will install high cost machinery and MSMEs can go and rent these for production as a Common Facility Centre, which has been a problem for many MSMEs.
Q: Are you promoting cluster development?
A: Recently we completed a programme with Quality Council of India for the India and International Accreditation and its relevance to MSME sector as a part of Zero Effect Zero Defect (ZED).
We have covered Meerut zone which is a sports cluster. We are also planning an exposure visit for these clusters so that they can learn. Initially it will be Germany and India. Then on an experimental basis we’ll cover 20-25 different segments and we plan to launch it in March.
Powering Entrepreneurship & Skill Development
Q: WASME is very much into Skill Development. What is lacking in it? How do we ensure a ready availability of skilled workers for MSME sector?
A: We are going to pilot a StartUp India cell on 22nd February. General EDP and Skill Development will not serve the purpose. Only 20-25% educated youth are able to get job or setup their own unit after getting training in these programmes, this is our assumption.
Our purpose is Skill Mapping. Government has put forward a robust Skill Development initiative. We want to support and catalyze the effort through our own ways in the SME sector. In line with government’s Startup India Initiative, we are piloting it in collaboration with National Institute for Entrepreneurship and Small Business Development (NIESBUD), which is now part of Skill Ministry.
Probably all the segments of skill will be covered in a phased manner.
First is identification of prospective entrepreneur. If he is already into business, be it any kind, he needs to register his unit with District Industrial Centre (DIC) and of course with Udyog Aadhaar Memorandum (UAM).
Then we will link them with MUDRA and other financial schemes without collateral but it’s not mandatory that they should go for loan. We’ll assess, help and council them in developing their proposal, then if required they can go for loan.
Training part is also there along with tackling funding problem. Right from scratch we’ll help them in establishing their unit and sustainability also. If successful we’ll spread it across the country.
In skill mapping, since it has been already done by government, based on need-basis setup training institutes will provide the particular training required.
We are doing this in collaboration with government and infrastructure support we are already providing.
WASME also runs a number e-learning program ever developed for the SME segment which targets the global audience. These programs aim at providing guided instructions to aspiring entrepreneurs and help in enhancing the skills of the existing ones.
Policy Matters
Q: Do you have any suggestion for government on how they should work on the comprehensive MSME policy they are going to build under the Prabhat Kumar Committee?
A: A Comprehensive policy, which is regulatory at the same time, is required. An over-all regulation should be there which could then be customized for specific verticals. We are already working on that and we believe that it will definitely help MSMEs.
Quality Council of India has itself suggested the same to the government and we’re waiting for that. Of course this should be operated through a single window system for setting up MSMEs with lesser paperwork. UAM is an attempt towards that only.
Recently we conducted mapping work of 6 states for the bio-medical device producers of India. We are of the view that a bio-medical unit should be setup with proper regulation.
Managing Funding Woes
Q: What can be done to overcome the funding problem of MSMEs?
A: Funding is of course a problem. We should develop our system the way China has. China has a system where you submit a single application form to a particular department. They check all the formalities, without any harassment. Then they guide and help in developing the business proposal, building competiveness and even assisting companies achieve early break even, everything. If we develop the same in India then definitely funding problem will be addressed. Ease of doing business is critical to the growth and development of the SME sector, and this is one area which we have to continuously focus.
The Africa Template
Q: Is WASME getting into helping African countries in setting up SMEs?
A: WASME is very much into it. In African continent we have members from almost all the countries of Africa. We organise Buyers-Sellers Meet on a frequent basis.
Recently in Johannesburg we did a workshop on Innovative Technology Upgradation, with a motive to get investment in India from Africa and similarly in return help them in setting up their units with our technology. It was a 3-day workshop with participants from 35 African countries.
The Chambers of Commerce of Bangladesh, Nepal and Sri Lanka are already members with us. We are working with all neighboring countries but recently we have started focusing on Africa exclusively.
Budget 2016 Wish
Q: Lastly, what sort of Budget do you expect for MSMEs apart from your wish list?
A: Without MSME we can’t think of our economy and development. We have to be flexible.
Government has initiatives like Prime Minister’s Employment Generation Programme (PMEGP), Khadi and Village Industries Commission (KVIC) where they provide funds without collaterals. SIDBI and MUDRA also provide different direct-indirect schemes such as CGS.
WASME wants to extend the support in a ‘flexible’ manner because of a lot of paperwork. Steps have already been taken but need a lot of things.
As I mentioned earlier Common Facility Centres, there should be budget for each and every segment of MSMEs for establishing these centres. Budget should be increased to serve the purpose.
OD limit for the regular working capital should also be covered.
