Ground breaking “SME Access to Finance” workshop a success

Published : 12:00 am April 4, 2011 | No comments so far |

The programme on “SME Access to Finance” was successfully organised by the Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL), representing the Confederation of Asia Pacific Chamber of Commerce and Industry (CACCI) as a focal point in Sri Lanka with the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) and International Chamber of Commerce (ICC) Sri Lanka with the assistance of the Confederation of Asia Pacific Chamber of Commerce and Industry (CACCI) at Taj Samudra, Colombo on 26 March 2011.

The welcome remarks, on behalf of FCCISL were delivered by Tissa Jayaweera, President and the welcome remarks on behalf of CACCI were also delivered by a representative of FCCISL. Keynote address on SME Sector and its policy was delivered by L.G. Perera, Consultant, DFCC Vardhana Bank.
In the background where economic and social importance of the Small and Medium Enterprise (SME) sector has been well recognised, this programme was attended by 40 participants representing the Small and Medium Scale Entrepreneurs, Bank Officials, Advisors and Consultants and Public and Private officials assisting the SMEs. The programme was conducted in both English and Sinhala languages and the methodology consisted of presentations and structured discussions. The participants highly evaluated the importance and usefulness of this capacity enhancement programme.
One of the critical elements for SME survival and growth is access to finance. Surveys have revealed that SMEs have difficulty in borrowing from formal channels of credit in view of their inability to present bankable proposals due to limited knowledge and skills in financial management and operational governance. Many financial providers consider SME financing as a high risk activity that generates high transaction costs and/or low returns on investment.
Moreover, SMEs need to meet the challenge of adapting to changing financial environment and increasing complexity and extent of financial reporting. Improvement of access to finance of Small and Medium Enterprises is crucial in fostering entrepreneurship, competition, innovation and growth.
In this context, the objective of this programme was to provide SMEs and officials assisting SMEs with an overview of the required knowledge and skills in financial management, and introduces new technology that would help them organise and systematise their business processes, which help them enhance their financial and operational efficiency, and consequently their bankability resulting sustainability and competitiveness.
Six   foreign professional speakers made very comprehensive and practical presentations followed by discussions during this timely one-day programme, namely Corazon D. Conde  Senior Vice President, Head of the SME Department,     Development Bank of the Philippines; Arlene S. Orencia ,Senior Assistant Vice President – Head, Account Management Unit, Corporate Banking, Development Bank of the Philippines; Eka Mardlarti, Sales Director and Scot Sproule, Director of EStorm Technologies Pte Ltd; Cecille M. Ibarra, Head of Training and Advocacy Unit of the Association Development Financing Institutions in Asia and the Pacific (ADFIAP) Consulting (AC); and Dinesh Fernandopullai, Managing Director and CEO of Synapsys.
Five resource persons from Sri Lanka K. H. S. Jayantha, Deputy Director, Industrial Development Board; Thusitha Nakandala, Senior Manager Development Banking, Sampath Bank; Thushara Asuramanna, Manager – Risk, SME, National Development Bank; Chandima Alwis, Branch Manager, National Development Bank; and Wickrama Narayana, Chief Manager – SME Development Unit, People’s Bank facilitated SME participants   in the Sinhala language and presented their experiences on these subject areas in the Sri Lankan context.
The subject areas covered during this programme include Business Planning (Roadmap for the business to convince banks that the planned activities and transactions for which they are borrowing will yield adequate returns that will enable the business to repay the loan — Business Model , Marketing Plan, Technical Plan, Organisational Plan,  Financial Plan) Financial Management for SMEs (Tools and techniques to help SMEs prepare, maintain and analyse financial statements required by banks — Accounting for Non-Accountants, Basic Record Keeping, Preparation of basic Financial Statements) Web-based Operational Management (Operational technology to enhance the financial and operational efficiency of SMEs Success — SME Customer Relationship Management Tool, “Green” Data Centre Services and   Live Demonstration), Mobile Banking Platform – MBANK & SME Lending & Best Practices in the Philippines (Basic concepts and principles on risk based lending to SMEs and a walk through on the process of applying for a SME loan in the Philippine setting., Overview on Risk based SME Lending Principles, Guidelines for SMEs on How to Approach Lenders).
At the end of the programme certificates were awarded to participants by Corazon D. Conde   -Senior Vice President – Head of the SME Department Development Bank of the Philippines; Tissa Jayaweera, President; and Dr. Thusitha Tennakoon, Secretary General of FCCISL.