Sri Lankan SMEs need an independent policy framework from the state

Lanka Social Ventures (LSV), a group of Sri Lankans interested in the social welfare and community service leading to reduce poverty, inequality and minimise national wealth distribution imbalance has ventured to set up a network on ' Social Enterprise ( S)', which is being practiced globally. It is headed by its MD/ CEO, Dr. Lalith Welamedage.

SE is based on businesses in social or environmental avenues and profits are reinvested in the business unlike profits for shareholders and owners.

Last week LSV organised a seminar to inaugurate SE Incubator and Accelerator (SEIA) at the Ceylon Chamber of Commerce auditorium.

On the sidelines of the seminar, the Business Times spoke to Dr. Welamedage who said that these programmes are carried out in other countries for some time but took a long time to get activated in Sri Lanka.

These programmes, he said are for SMEs in rural areas. Dr. Welamadage said that though SMEs are developed in Sri Lanka they are not properly recognised but are included in the bigger industry policy whereas in other countries there is a separate SME policy framework.

He said that under this programme they have selected 20 incubatees for advice, training, exposure visits, etc during a 10 month period effective from May 2015 with an initial expenditure of Rs. 2 million. They expect to raise another Rs. 8 - 10 million for these SMEs for loans, grants and equity. They would raise it from banks and financial institutions, impact investors, venture capital institutions, crowd-funding, etc.

They work closely with the global network, the British Council and Oxfam.

They are also building new partnerships with SE networks in India, United Kingdom and Singapore, he said.

Dr. Welamedage introduced the programme at the seminar while others who spoke were Amit Vasyayan, Regional Manager, Economic Empowerment, Oxfam GB Asia; Roshan D' Souza, Senior Manager, Unlimited India; Eranda Ginige, Head, Partnerships and Innovation, British Council; Dr. Amanda Kiesel, Board Member, Good Market Regional Mentors Networks; and Oskar Haq, Financial Inclusion Advisor, Oxfam BG Asia.

Mr. D' Souza, sharing the Indian experience, said that they were in operation since 2007 and the company is a launch pad for SE in India to find, fund and support entrepreneurial individuals.

He said that their areas of intervention fall into two segments - entrepreneur and venture development. Entrepreneur involves problem- solving, decision-making, communicating the vision, and influencing stakeholders, noting that venture development involves mapping the issue, understanding.

They are creating a Pan- India network of Affiliates - Incubators that adopt their model to support social entrepreneurs locally, he said.