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Project Component 2: Strengthening Enterprise Skills and
  Market
This component is addressing market failures that limit the ability of MSMEs to obtain the necessary skills and business services to exploit opportunities and overcome bottlenecks in the business environment. The component has four different sub-components that seek to support a range of enterprise needs. The subcomponents are the Value Chain Matching Grant, the Global Business Schools Network, a business plan innovation competition and the restructuring of the national industrial levy training scheme to ensure the training offered is relevant to local market needs.
  Subcomponent A - Pilot Value Chain Based Matching Grant Program

The objective of this sub-component is to strengthen competitiveness and raise value-added in the selected supply chains of the cotton, pyrethrum, coffee and leather sectors by enhancing access to business development services and strengthening linkages between firms and from MSMEs to their markets. The project beneficiaries are Kenyan-based individuals, MSMEs or an entity of individuals that operate in any one of the selected value chains.

Implemented by Deloitte Consulting Ltd, the core of the subcomponent is a matching grant fund that provides partial financing for eligible training and other business development services so as to improve the competitiveness and performance at critical points in value chains. This is done through implementing pilot projects that act as demonstration models that provide lessons and best practices that can be scaled up and applied across the value chains.

To kick-start the process in the selected coffee, pyrethrum and cotton sectors, APEX Committees that have representatives from all entities along the value chains were established. The APEX Committees developed sector wide strategic plans that are an integral part of the process that will see to the development of focussed pilot projects and the up-scaling of these pilot projects to other areas.

  Subcomponent B - Restructuring of the Industrial Training Levy Scheme

The Global Business Schools Network (GBSN) is a sub-component that aims at strengthening business education in business schools. Owing to the massive growth of business schools in Kenya, the GBSN network focuses on deepening the pool of competent local managers by helping the local business schools enhance their capabilities. The component is managed by the GBSN, which brings together top global and local business schools. The GBSN partner schools in Kenya are Jomo-Kenyatta University of Agriculture and Technology, Strathmore, and Kenyatta universities.

Through the sub-component, the three local Universities have been able to develop over 100 local case studies which will be incorporated into their curriculum. These cases are supporting the training needs of MSME managers and owners. During a three year period, the three universities have written cases in various business disciplines on a variety of MSMEs. Through the project, several Kenyan cases have been posted in the European Case Study Clearing House, thus making them available for use by leading schools from other parts of the world.

  Subcomponent C - Global Business School Network: Improving opportunities and training for Entrepreneurs and MSMEs

The objective of this subcomponent is to enhance the level and quality of industrial technical training and skills development in order to increase labor productivity and competitiveness of key economic sectors. This will be done through the restructuring of the existing Industrial Training Levy Scheme to which all employers with over five employees contribute to. Two firms, Emerging Markets Economics and Almaco Management Consultants are the technical implementing partners.

While the existing industrial levy training scheme is broadly accepted by the Kenyan private sector and has been useful in the past, there is a need to modernize and restructure it to meet the evolving needs of firms in the growing sectors of the economy. Under this subcomponent, a study will be carried out that will guide the restructuring and remodeling of the Training Levy.

Learn more about the Global Business School Network

  Sub-component D: Business Plan/Innovation Competition

This sub component will introduce a Business Plan/Innovation Competition through a consortium of Kenyan institutions, based upon best practice models to encourage innovative business ideas. The competition will provide potential entrepreneurs with screening, training, and mentoring. The business plan competition may adopt prizes on themes such as jua kali, social and rural enterprise.

 
 
MSME Project Started 17th
Jan 2005
The MSME
project started
today with an
initial meeting
of all the members of
the project team at the PMC offices at College House.
MSME Official Project
Launch 29th Apr 2005
The Minister for Trade and
Industry,
Mukhisa Kituyi, today launched the
Micro, Small and Medium Enterprises (MSME)
Competitiveness Project housed in his Ministry.
 
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