BUSINESS LINKAGES. Promoting TNC-SME linkages in Brazil

Transcription

1 BUSINESS LINKAGES Promoting TNC-SME linkages in Brazil

2 Development Objective To promote economic and social development by enhancing local productive capacity and the competitiveness of the domestic enterprise sector through the creation and deepening of fair and sustainable business linkages between foreign affiliates and Brazilian TNCs and local SMEs. 2

3 Objectives Create employment, reduce poverty and increase sustainability of livelihood through establishing and deepening demand oriented business linkages between TNCs and local SMEs, as an effective way to upgrade SME capabilities, promote growth and increase competitiveness of local SMEs with specific focus to the North Eastern regions of Brazil. 3

4 Main Stakeholders UNCTAD Geneva/Switzerland GTZ Eschborn/Germany FDC Nova Lima/Brazil Ethos Institute - Sao Paulo/Brazil 4

5 Main Activities Improve the regulatory environment for sustainable business linkages Motivate TNCs to establish new or deeper sustainable business linkages Upgrade SMEs, including through BDS providers Share best practices in sustainable business linkages 5

6 Expected Results (1) A favorable environment for sustainable business linkages established Mobilization of companies for the establishment of demand driven business linkages achieved Opportunities for creating new and deepening existing sustainable business linkages identified Capacity of local BDS providers supporting implementation of sustainable business linkages strengthened 6

7 Expected Results (2) BDS services to SMEs being provided Best practices documented and multiplied Ultimately a contribution to Brazil's Zero Hunger program presented in an annual meeting of representatives of participating firms and relevant ministers 7

8 Beneficiaries Domestic SMEs; Private sector in general through improved policy framework, a more vibrant business environment, and increased attraction for FDI; Governments through a broader and more diversified tax base. 8

9 Institutional setup Advisory Board UNCTAD, FDC, Ethos, GTZ, Project Director, Banks, Government, IPAs, TNCs STEERING COMMITTEE UNCTAD, FDC, Project Director, Ethos, GTZ, BUSINESS LINKAGE CENTRE Programme Director Linkage Promoters BDS Provider - 1 BDS Provider - 2 Financial Services Provider -3 Business Linkage 1 SME 1 Business Linkage 2 SME 2 Business Linkage 3 SME 3 TNC 1 TNC 2 TNC 3 9

10 «Latest News Brazil» (1) Philips Amazônia Supplier Certification Project Technological and financial support for ISO 9001 and/or ISO Certification Processes Project involves 27 ISO and 5 ISO 9001 certifications 10

11 «Latest News Brazil» (2) BASF Supplier Evaluation and Qualification Program (AQF) Supplier evaluation through questionnaires and audits 1st Phase: 9 subcontractors selected for upgrade 11

12 «Latest News Brazil» (3) FIEB (State of Bahia Federação das Indústrias) Cooperation with FIEB PCF Program (Programa de Capacitação de Fornecedores) PCF objective: increase volume and quality of business between large companies and small suppliers of industrial products and services 12

13 «Latest News - Uganda» (1) Linkage Opportunities with: Uganda Breweries Ltd. Upgrading of 200 barley farmers in Kapchorwa, through the Kapchorwa Commercial Farmers Association, to run farming as a business 13

14 «Latest News - Uganda» (2) MTN Uganda Limited (Telecommunication) Upgrading of 10 current dealers in business skills Mukwano Group (Agro-Processing) Upgrading of 10 current distributors in Northern Uganda through provision of business development services 14

15 «Latest News «and more projects in the pipeline! 15

16 Contacts Project Director: Arnaldo Flaks Instituto ETHOS: Caio Magri UNCTAD: Jacques Ferrière

17 Why Join? Win-Win Opportunities for SMEs and TNCs through Business Linkages Strengthen Corporate Responsibility Use Business Linkage Programme as an effective Linkage Promoter 17

18 Need for TNC Support Identify linkage opportunities with local SMEs Provide technical and managerial advice ( SME-Upgrading ) Put forward corporate representative on the advisory board 18

19 Additional Information Backup 19

20 Roles and Responsibilities Project Steering Committee Includes core members of the project, UNCTAD, Project Director and key counterparts. Has overall responsibility for project oversight. Develops policies and strategies for project. Advisory Board Includes key stakeholders: regional development agencies, representatives of state governments, IPAs, and other relevant entities Provides general advice & support to the Steering Committee on orientation of the project. 20

21 Roles and Responsibilities Programme Director Assists in identifying potential linkages; oversees their implementation through provision of technical business services and assistance that will make SMEs competitive and linkage-ready. Follows-up with linkage activities on a day-to-day basis and continuously learns from and documents its experience. TNCs Promote linkages, partnerships, and encourage programmes that support the creation of small and medium-sized enterprises; 21

22 Roles and Responsibilities BDS Providers Working with the TNCs, BDS providers shall develop a range of business services to upgrade SMEs Government/Ministries Establish a conducive business environment for SME development. Encourage and/or support the development of business development services (BDS) providers; Effective policies: encourage foreign direct investment (FDI), local supplier development; 22

23 Roles and Responsibilities Investment Promotion Agency Provides policy analysis and advices on creation of a favourable business environment for business linkages between TNCs and SMEs. Publishes results to help attract quality FDI. UNCTAD Advises on the right policy environment for business linkages based on the analysis of international experience and best practices; Provides expertise and experience from successful business linkage cases in other countries; Helps mobilize funds, provides technical expertise, monitors implementation, assures quality control 23

24 Roles and Responsibilities ETHOS Provides expertise in the area of Corporate Responsibility Identifies Business Linkages opportunities and assists in their implementation Provides inputs to the analysis of international experience and good practices (survey) FDC Assesses the current stage of TNC-SME linkage activities in Brazil (survey) Identifies Business Linkages deals and helps facilitating these linkages Provides expertise in the area of cluster development, value chains and technology transfer in Brazil 24

25 Roster of Good Practices Initiating & supporting of linkage promotion programmes Supporting of linkage activities Providing access to markets & finance Providing feedback, coaching & mentoring Contributing to technology transfer 25