An entrepreneurship policy framework

Trade and Development Board
Investment, Enterprise and Development Commission
Multi-year expert meeting on enterprise development policies
and capacity-building in science, technology and innovation
Geneva, 20–22 January 2009
PAPER SUBMITTED TO THE EXPERT MEETING*
An entrepreneurship policy framework
A Brazilian perspective - the role of SEBRAE
By
Mr. Vinicius Nobre Lages
Manager, International Assistance Unit, Sebrae
________________
* The views expressed are those of the author and do not necessarily reflect the
views of UNCTAD.
An entrepreneuship policy framework
A Brazilian perspective - the role of SEBRAE
Vinicius Lages
UNCTAD
UNCTAD Multi-year
Multi-year expert
expert meeting
meeting
Enterprise
Enterprise development
development policies
policies and
and capacity-building
capacity-building in
in science,
science,
technology
technology and
and innovation
innovation
Geneva,
Geneva, 21
21 January
January 2009
2009
outline
Who we are
What we do
An entrepreneurship policy
framework - the role of SEBRAE in
Brazil
Key elements - lessons
Brazilian Micro and Small Business Support Service
Mission
To promote the competitive and sustainable
development of micro and small businesses
and foster enterpreneurship
Governing Board
National Council
13 members
MDIC- Ministry of Development, Industry and Trade
ABDE- Brazilian Association of Financial Institutions for Development
CNI- National Industry Confederation
CNA- National Agriculture Confederation
CNC – National Commerce Confederation
CACB- Commerce and Enterpreneurial Associations Confederation of Brasil.
ANPROTEC- National Assoc of Support Institutions for High Tech Enterprises
ANPEI- National Assoc for Research and Engineering of Innovative Enterprises
BB – Bank of Brasil
CEF- Caixa Economica Federal
ABASE – Brazilian Assoc of State SEBRAE’s
FINEP- Funding Agency for Studies and Projects
BNDES- Economic and Social Development National Bank
SEBRAE
Direct support to over 2.500 SMEs collective projects– for each
unit of the Brazilian real invested by SEBRAE 2,6 is invested
through our partners and SMEs themselves
2008
237.000 SMEs have been trained through DL
6 million visits to our portal
1,4 million calls to our call center
394 TV stations - 6 million viewers
532 radio stations - 3 million radio listeners
271.000 individual attention (consultancies)
31.779 courses and workshops ; 3.575 events
338 business roundtables
2.894 business missions
1.923 trade fairs and exhibitions
A decentralized system:
2500 projects over 2.000
municipalities; 760 BDC including 377 business incubators.
A land of entrepreneurs
Brazil – population over 190 million
GEM – Global Entrepreneurship Monitor – last
5 years Brazil ranks at the top 10 countries
Growing entrepreneurship through business
opportunity x “necessity entrepreneurship”
(informal sector)
+ women + innovative business + services
Formal business start-ups in Brazil
2002
445.151
2003
472.213
2001
480.911
Average
470.202
2004
462.199
2005
490.538
Source: Brazilian National Department of Trade
Until recently…reasonably favorable
economic conditions
Investment grade
Low inflation rate
US$ 210 billion - foreign currency reserves
Economic growth rate of 5,7 % (2007) 4% 2008
Economic and social programs dedicated to poverty
alleviation and promotion of equity - growing income
of BOP (base of pyramid)
Foreign direct investments - FDI
Public and private investments - PAC
Exports – positive trade balance
Productive Development Policy (PDP)
Brasil
Still a land of inequalities
SMEs in Brazil
5 million of formal enterprises (99% out of the total) + 10
million of informal enterprises
56,1% of the formal urban labor force
26% of the aggregate wage/salaries
20% of Brazilian Gross Domestic Product
13% of government supply
2,4 % of Brazilian exports in terms of agregated value
Modes of Assistance
Individual - BDS, web (portal), radio, TV, call
centers, videos, CDs, DVD, etc.
business cycle
Group - over 2.500 projects dedicated to group
assistance including 170 clusters and 377 business
incubators.
Sectors, clusters and territories
- business services (access to innovation, finance,
training) - vertical and horizontal approaches
integrated approaches including supply chain; value chains,
clusters, cooperatives; associations; networks; group of
franchises; suppliers; business linkages between SMEs and
large companies (TNCs)
⇒ business centers
⇒ call centers
⇒ internet
⇒ Second Life
INDIVIDUAL SUPPORT
SERVICES
⇒ TV
⇒ Radio
⇒ Training programs - EMPRETEC
⇒ workshops
⇒ Desafio SEBRAE
⇒ Entrepreneurship fair
⇒ Entrepreneurship exibitions
⇒ Publications
• Technical consultancies
• “Design clinics”
ACCESS TO
INNOVATION AND
TECHNOLOGY
• Environmental
management
• Business Incubators
• S&T Park
• Innovation agents
• Energy efficiency
• certification
• bonus
• Microcredit
• Venture Capital
Funds
• Guarantee Funds
FACILITATING
ACCESS TO
FINANCIAL
SERVICES
• Credit Cooperatives
• “Cluster banks”
• Close links with the
financial system
(public and private) less costs – wider
access
• Trade fairs
• Marketplace (collective
procurement and selling)
• Network of market agents
• Commercial promotion
Access to market
• Business linkages with
larger companies
• Internationalization
• Franchising
• E.marketplace
• Round tables
• Trade missions
• Centrais FACIL: one-stop
shops
• SIMPLES: less redtapes
• SMEs Forum – stakeholders
• National Prizes to
Entrepreneurial Mayors
• Government procurement
policy framework
• SME General Law
• National Innovation Law
• Credit Co-operative
• Microfinance
• Garantee/ collaterals
• Sectorial policies
Lessons/key points
contributing to shape and design of policies
Know the numbers !!!!!!
research/studies/surveys
E/SME/I - having a policy framework + a institutional framework
(system) + tool kit + comprehensive programs and projects
Raising awareness – campaigns, seminars, TV, radio,
publications, rallies, fairs
Advocacy planning for entrepreneurship, SMEs, innovation –
participating in several councils, commissions, bodies, high
committees
Influencing policy design – lobbying at Congress, Government
and at all legislative levels (Federal, State, Municipalities)
“Voicing the voiceless” – help SMEs and entrepreneurs to have
their voice listened – formation of SME/E associations
SME Forum (national and state levels) - echoeing their voices +
multi stakeholders
demands/supply – feedback –
governance – networking
Checking the policies/institutions/programs – check them
systematically – monitoring and evaluation
www.sigeor.sebrae.com.br
Entrepreneurship
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Whose role after all?
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SXEOLF
Indeed a role for the government
Helping in building trust – good governance; transparency;
accountability
Vision – “Yes we can”; business success and profit are not a sin
Branding the country - NZ
“Rule of law” – IP; standards;
Government procurement
Funding R&D and enterpreneurship infrastructure
Favorable regulatory framework conducive to a enabling
business environment – ‘Doing Business’
Bridging market failures – counter cyclical measures – public
investments – taxation bias – public goods
Education – integrating E and I as part of the curriculum
Stimulating partnerships – P2P and P2P - networking
Communication – raising awareness – high lightening role
models: examples - public TV, radio, portals
A huge crisis is out there...
Welcome back to the real economy
Back to basics
There is still a lot to be done, invented, not to
speak about the prevailing hunger, water,
energy and environmental crisis, diseases
The end of ideological rigidity ?
Lord Keynes is alive ! But careful! wise
spending
UNCTAD
Thank you!
Merci!
Gracias!
Obrigado!
☺