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01/2007 ESSP - GTZ 1 The Nucleus Approach in Sri Lanka ESSP Impact Analysis 2005 / 2006

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The Nucleus Approach in Sri Lanka. ESSP Impact Analysis 2005 / 2006. 2Survey 6Subsidisation Entrepreneur 10Age 11Ethnicity 12Education 16Training 21Experience Enterprise 24Age 27Legal status 32 Premises 34Usage BDS 42Employment 55Credits 67Changes in enterprise - PowerPoint PPT Presentation

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Page 1: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 1

The Nucleus Approach

inSri Lanka

ESSPImpact Analysis 2005 / 2006

Page 2: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 2

Content• 2 Survey• 6 Subsidisation

• Entrepreneur• 10 Age• 11 Ethnicity• 12 Education• 16 Training• 21 Experience

• Enterprise• 24 Age• 27 Legal status• 32 Premises• 34 Usage BDS• 42 Employment • 55 Credits• 67 Changes in

enterprise• 71 Turnover &

productivity

• Nucleus• 78 Start participation• 79 Information• 80 Motivation• 81 Activities• 85 Evaluation Nucleus• 90 Relation between

SMEs• 93 Evaluation counsellor

• Chamber• 94 Opinion about

chamber• 101 Services• 108 Lobby• 115 Performance• 122 Membership

development• 124 Membership fees

Page 3: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 3

The survey sample

Interviews 2005 2006

Number in % Number in %

Totals 490 790 428 852

a1) by external interviewer 102 411 318 74% 418 49%

a2) by counsellor 388 379 110 26% 434 51%

b1) of Nucleus members 468 691 413 96% 746 88%

b2) of Non-Nucleus members 22 99 15 4% 106 12%

in 2005 & 2006 Total

Interviewed entrepreneurs

Page 4: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 4

The survey sample

2005 2006 in 2005 & 2006 Total

Inter-viewed

Nucleus & Non-

Nucleus mem-bers

Nucleus members

as of 31.03.05 partici-pating SMEs

Nucleus & Non-

Nucleus mem-bers

Nucleus mem-

bers as of

31.03.06 partici-pating SMEs

Nuc mem-bers inter-

viewed

Nucleus mem-

bers as of

31.03.06 partici-pating SMEs

Nucleus & Non-

Nucleus mem-bers

Of num-ber

Number in % Number in % Number in % Number in %

Total 490 58% 790 54% 428 34% 852

CCICP 119 61% 180 38% 90 21% 209 25%

MDCCI 109 50% 201 70% 101 38% 209 25%

CPWCIC 70 75% 85 45% 66 45% 89 10%

CCIUP 130 61% 165 84% 113 66% 182 21%

PAEA 62 48% 63 48% 58 48% 67 8%

NCHSL 0 96 50% 0 0% 96 11%

Interviews in reference to the participating institutions

Page 5: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 5

The survey sample Nucleus members

Males Females

CCICP 76% 24%CCIUP 39% 61%CPWCIC 0% 100%MDCCI 66% 34%NCHSL 72% 28%PAEA 94% 6%Total 59% 41%

Non-Nuc members 67% 33%

Per EthnicitySinhales 62% 38%Tamils 46% 54%Moores 46% 54%

Gender per chamber

Page 6: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 6

Subsidization of Nucleus activities

Chamber Nuclei with

>0 ac-tivities

Activities Number of participants

Total subsidy in 1,000 Rs

Sub-sidy per

partici-pant in 1,000

Rs

Sub-sidy per acti-

vity in 1,000

Rs CCICP 22 62 24% 1,028 25% 4,883 28% 4.8 79 CCIUP 19 41 16% 781 19% 3,300 19% 4.2 80 CPWCIC 15 56 21% 925 23% 3,641 21% 4.3 65 MDCCI 10 25 10% 466 11% 1,799 10% 3.9 72 NCHSL 10 30 11% 301 7% 1,001 6% 3.3 33 PAEA 20 48 18% 608 15% 2,922 16% 4.8 61 Subsidisation of Nucleus activities from 10/2003 until 12/2006 per chamber

Page 7: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 7

Subsidization of Nucleus activities

Activity type Activities Number of participants

Total sub-sidy in 1,000

Rs

Subsidy per parti-cipant in 1,000 Rs

Subsidy per acti-vity in

1,000 Rs Individual consulting 5 2% 72 2% 69 0% 1.0 14 Investment in buildings 2 1% 24 1% 125 1% 5.2 63 Investment in equipment 53 20% 645 16% 6,610 37% 10.2 125 Missions to other countries

8 3% 79 2% 3,299 18% 41.8 413

Trade fairs, marketing 9 3% 202 5% 1,119 6% 5.5 124 Training CEFE 10 4% 120 3% 564 3% 4.8 61 Training in technology 115 44% 1,643 39% 4,593 26% 3.1 41 Training in business administration

13 5% 163 4% 441 2% 2.7 34

Visits to enterprises, trade fairs, training institutions and others

45 17% 552 14% 373 2% 0.6 8

Special events 3 1% 704 14% 353 5% 28.6 296 Table 1: Subsidisation of Nucleus activities from 10/2003 until 12/2006 per activity type

Page 8: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 8

Subsidization of Nucleus activities

Year Average investment per year in 1,000 Rs

Subsidy per participant in 1,000Rs

ESSP subsidy in % of yearly investment

2004 79 3.7 4.6% 2005 66 4.7 5.5% Comparison of Nucleus entrepreneur’s investments with ESSP subsidies

Page 9: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 9

Subsidization of chamber overhead costs

Chamber

Average monthly

overhead cost

subsidy in 1,000 Rs

CCICP 22 CCIUP 15 CPWCIC 18 MDCCI 15 NCHSL 11 PAEA 14

Total 95

= 730 € Monthly chamber overhead cost subsidy

Page 10: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 10

The entrepreneurs: Age

0%

5%

10%

15%

20%

25%

30%

35%

< 25 years

26 - 35 years

36 - 45 years

46 - 55 years

>55 years

Age in categories

Page 11: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 11

The entrepreneurs: Ethnicity

Nucleus members Total Males FemalesSinhalese 91% 93% 87%Tamil 5% 4% 6%Moor 4% 3% 6%Burgher 0% 0% 0%Other 0% 0% 1%

Non Nucleus membersSinhalese 79% 73% 91%Tamil 11% 15% 3%Moor 8% 8% 6%Burgher 0% 0% 0%Other 2% 3% 0%

Ethnic composition

Page 12: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 12

The entrepreneurs: Education

9%

35%44%

8% 5%

0%

20%

40%

60%

Below O-Level = 1 O-Level = 2

A-Level =3 Technical Diploma = 4

University Degree = 5

Education levels

Page 13: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 13

The entrepreneurs: Education

Chamber Score All Men Women

CCICP 2.8 2.7 3.0

CCIUP 2.8 2.6 2.9

CPWCIC 2.6 - 2.6

MDCCI 2.6 2.5 2.8

NCHSL 2.2 2.1 2.6

PAEA 2.5 2.6 2.3

Total 2.6 2.5 2.8 Education levels per chamber

Page 14: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 14

The entrepreneurs: Education

Age Score

< 25 2.7

26 - 35 2.7

36 - 45 2.6

46 – 55 2.6

> 55 2.7 Education level per age group

Page 15: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 15

The entrepreneurs: Education

Nucleus

members

Enterprise Heirs Enterprise

Founders

Chamber Men Women Men Women

CCICP 2.6 3.0 2.7 3.0

CCIUP 2.2 - 2.6 2.9

CPWCIC - - 2.6

MDCCI 2.0 2.3 2.6 2.8

NCHSL 2.0 2.5 2.3 2.6

PAEA 2.1 - 2.7 1.5

Total 2.1 2.5 2.6 2.8 Education levels of enterprise heirs and founders

Page 16: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 16

The entrepreneurs: Professional Training

Chamber Prof. Training of Men Prof. Training of Women Nucleus members

No Yes Average years*

No Yes Average years*

CCICP 40% 60% 2.0 y 20% 80% 1.1 y

CCIUP 26% 74% 1.3 y 13% 87% 1.5 y

CPWCIC – – – 59% 41% 1.4 y

MDCCI 65% 35% 1.6 y 32% 68% 1.0 y

NCHSL 65% 35% 2.0 y 48% 52% 1.8 y

PAEA 57% 43% 0.5 y 25% 75% 1.5 y

Total 51% 49% 1.6 y 31% 69% 1.3 y Non-Nuc members 44% 56% 3.3 y 40% 60% 3.3 y

* Calculation with only those with professional training Entrepreneurs without and with professional training

Page 17: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 17

The entrepreneurs: Professional Training

0%10%20%30%40%50%60%70%80%

< 6 months > 6 months <3 years

> 3 years

Males Females Non-Nuc members

Duration of professional training

Page 18: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 18

The entrepreneurs: Professional Training

Nuc members Prof. Training

Samples No Yes Average

years* All 43% 57% 1.5 y p/ Age < = 25 44% 56% 1.3 y >25 <= 35 41% 59% 1.5 y >35 <= 45 43% 57% 1.4 y > 45 <=55 41% 59% 1.5 y >55 49% 51% 1.2 y p/ Status a) Registered 44% 56% 1.9 y b) Not registered

43% 57% 1.1 y

* Including those with professional training Professional training per different samples

Page 19: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 19

The entrepreneurs: Professional Training

Nuc members Prof. Training

Samples No Yes Average

years* p/ Employees a) <= 5 41% 59% 1.4 y b) <= 10 49% 51% 1.6 y c) <= 20 58% 42% 2.8 y d) > 20 86% 14% 1.8 y p/ Enterprise founders a) 2000 – 04** 37% 63% 1.1 y b) 1995 – 99** 42% 58% 1.8 y c) 1990 – 94** 49% 51% 1.9 y d) 1980 – 89** 52% 48% 1.5 y e) 1910 – 79** 69% 31% 2.3 y p/ Enterprise inheritors 2000 – 2004** 62% 38% 0.9 y 1990 – 1999** 64% 36% 1.7 y 1980 – 1989** 72% 28% 2.1 y 1910 – 1979** 68% 32% 2.1 y * Including those with professional training ** Founded between year 1 and year 2 Professional training per different samples B

Page 20: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 20

The entrepreneurs: Professional Training

Trained entrepreneurs per sector

a) With > 67% Average years

– Automobile – Beauty Culture – Cut Foliage – Gem & Jewellery – Handicrafts – Photography – TV / Radio Repair

2.1 1.6 1.2 1.7 0.6 1.9 1.6

b) With > 33% and < 67%

– Carpentry – Garment Industry – Leather – Light Engineering – Ornamental Fish – Patchwork & Embroidery – Printing – Protected Agriculture – Tailoring – Textile Related Items – Vegetable Cultivation

2.5 0.8 1.2 1.7 0.3 1.5 1.9 0.6 1.1 0.3 0.9

c) With < 33%

– Bakery – Brass Maker – Hemp – Lime Production

2.0 2.5 4.0 1.3

Only those sectors with more than eight interviewed entrepreneurs Trained entrepreneurs per sector

Page 21: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 21

The entrepreneurs: Work experience

0%

10%

20%

30%

40%

50%

60%

0 years < 2 years

> 2 < 5 years >5 years

Male entrepreneurs’ work experience

Page 22: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 22

The entrepreneurs: Work experience

0%

10%

20%

30%

40%

50%

60%

0 years < 2 years

> 2 < 5 years >5 years

Female entrepreneurs’ work experience

Page 23: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 23

The entrepreneurs: Work experience

Work experiences per sector

Average years

– Beauty Culture – Carpentry – Cut Foliage – Light Engineering – Printing – Non-Nucleus members

0.6 y 1.9 y 3.2 y 4.0 y 3.7 y 3.2 y

Only sectors with more than ten inter-viewed entrepreneurs Work experience per sector

Page 24: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 24

The enterprises: Age

Enterprises’ Age 2000 - 2005

1990 - 1999

1980 - 1989

1970 - 1979

Before 1970

Average age

Nucleus SMEs 48% 32% 12% 4% 4% 11

– Males 36% 37% 16% 5% 7% 13

– Females 67% 24% 6% 3% 6

Non-Nucleus SMEs 15% 31% 21% 14% 18% 22 Age of the enterprises

Page 25: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 25

The enterprises: Age

Average age

Chamber

Nucleus SMEs

Non-Nucleus

SMEs

CCICP 11 26

CCIUP 6 26

CPWCIC 7 17

MDCCI 13 18

NCHSL 19 25

PAEA 8 9

Total 11 22 Age of the enterprises per chamber

Page 26: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 26

The enterprises: Age

Nucleus enterprises’ age according to enterprise size

2000 - 2005

1990 - 1999

1980 - 1989

1970 - 1979

Before 1970

Average age

Average age Non-Nucleus

SMEs 0 - 5 employees 54% 31% 10% 3% 2% 9 19 6 - 10 employees 18% 36% 25% 10% 11% 20 16 11 - 20 employees 8% 46% 21% 17% 8% 18 24 21 - 50 employees 21% 36% 7% 14% 21% 21 24 Age of the enterprises versus employment

Page 27: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 27

The enterprises: Legal status

Of the registered SMEs x% are registered as

Not Registered Registered Sole Proprie-torship

Partnership Private limited Partnership

Chamber Male Fem. Male Fem. Male Fem. Male Fem. Male Fem.

CCICP 30% 80% 70% 20% 75% 67% 21% 33% 4%

CCIUP 35% 52% 65% 48% 50% 75% 5% 45% 25%

CPWCIC 78% 22% 80% 13% 7%

MDCCI 45% 85% 55% 15% 90% 90% 4% 10% 6%

NCHSL 73% 71% 27% 29% 87% 100% 7% 7%

PAEA 86% 75% 14% 25% 63% 25% 100% 13% Total per sex 48% 71% 52% 29% 76% 78% 12% 8% 12% 15%

Overall total 57% 43% 76% 11% 13%

Non-Nucleus members

15% 85% 51% 23% 26%

Registration of enterprises

Page 28: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 28

The enterprises: Legal status

0%

20%

40%

60%

80%

1910 - 1979

1980 - 1989

1990 - 1999

2000 - 2005

Registered enterprises per foundation period

Page 29: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 29

The enterprises: Legal status

0%

20%

40%

60%

80%

100%

0 - 5 employees

6 - 10 employees

11 - 20 employees

21 - 50 employees

Registered businesses according to size

Page 30: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 30

The enterprises: Legal status

Advantages / Disadvantages of no Registration No tax payments No registration fees, no bureaucratic procedures Access to bank loans is more difficult Access to public and donor SME promotion projects is more difficult Payment of social security for all employees and one has to follow the labour regulations No access to qualified employees No or almost no appearance in public, no advertisement, name board, etc. Less social recognition in public as well as in the business community Increased danger of being black-mailed by civil servants, clients etc., thus paying “social taxes”

Page 31: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 31

The enterprises: Performance per Legal status

Ave. Turnover Ave. Employees Turnover / Employee

Change between 2002 and 2005 SMEs with up to 10 employees Registered Registered Registered

Nucleus SMEs No Yes No Yes No Yes

– All + 8% + 94% + 32% + 41% -18% +38%

– Males

– Females

- 2%

+ 101%

+86%

+ 231%

+ 26%

+ 53%

+ 33%

+ 126%

- 23%

+ 32%

+ 40%

+ 47%

– per Foundation

1910 – 1979

1980 – 1989

1990 – 1999

2000 – 2002

+ 52%

- 15%

+ 16%

+ 10%

+ 72%

+ 117%

+ 55%

+ 236%

+ 13%

+ 33%

+ 45%

+ 23%

+ 35%

+ 28%

+ 33%

+ 88%

+ 34%

- 36%

- 20%

- 11%

+ 27%

+ 69%

+ 16%

+ 79%

Non-Nuc. SMEs - 4% + 25% + 7% + 73% - 10% - 28% SME unreg. 2005 registered 2006 + 290% + 97% +98%

Performance of registered and unregistered SMEs between 2002 and 2005

Page 32: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 32

The enterprises: Premises

In family house

In separate building

Total

Owned 55% 26% 81%

Rented 3% 16% 19%

Total 58% 42%

Ownership and location of enterprise premises

Page 33: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 33

The enterprises: Premises - Performance

0%

25%

50%

75%

100%

125%

150%

175%

200%

Familyhouse,owned

Familyhouse,rented

Separatebuilding,owned

Separatebuilding,rented

Ch

ang

e

Change turnover

Change employment

Change turnover per employee

Premises and Nucleus SME’s with up to 10 employees development between 2002 and 2005

Page 34: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 34

The enterprises: Usage of BDS

Utilization of BDS by

Nucleus SMEs 2005 2006

Number of strategic BDS utilized by Nuclei enterprises (once or more than once)

664 929

Total number of Nucleus entrepreneurs 1,091 1,568

On average every Nucleus SME used trainings / consultan-cies per year

0.6

times

0.6

times

Utilization of BDS by Nucleus entrepreneurs

Page 35: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 35

The enterprises: Usage of BDS

BDS used by Nucleus entrepreneurs 2004 2005 2006 Type of strategic BDS

used Acti-vities

Parti-cipants

Acti-vities

Parti-cipants

Acti-vities

Parti-cipants

Individual consulting 3 42 2 45 - - CEFE training 5 66 4 51 - - Training in business administration

2 28 2 50 3 81

Other training 1 20 2 52 2 47 Training in technologies and techniques

33 493 35 429 33 761

International missions with training & consulting elements

2 11 2 37 4 40

Total 46 660 47 664 42 929 Types of BDS used

Page 36: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 36

The enterprises: Usage of BDS

Entrepreneur Staff

Participation in training activities 0

times >0

times

Average partici-

pation in training

0 times

(>0 staff)

>0 times

(>0 staff)

Average partici-

pation in training

Trained staff in

% of total staff

2004 37% 63% 2.9 87% 13% 2.7 47% Nucleus members 2005 65% 35% 3.5 94% 6% 2.2 28%

2004 41% 59% 3.8 88% 12% 3.8 155% - Females

2005 64% 36% 4.0 96% 4% 3.2 65% 2004 35% 65% 2.4 86% 14% 2.1 30%

- Males 2005 65% 35% 3.2 94% 6% 1.8 20% 2004 68% 32% 2.6 59% 41% 1.7 7% Non-Nucleus

members 2005 68% 32% 2.9 81% 19% 2.4 18% Participation in external training activities

Page 37: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 37

The enterprises: Usage of BDS

Human resource development

Participation in trainings of entrepreneur and employee

Number of employees

Both Only entre-

preneur

Only staff

No one

2004 9% 60% 2% 29% <= 5

2005 4% 33% 0% 63% 2004 9% 57% 7% 27%

>= 6 <= 10 2005 3% 28% 3% 66% 2004 6% 50% 11% 33%

>=11 <= 20 2005 13% 33% 8% 46%

Participation in external training activities of entrepreneur and employees

Page 38: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 38

The enterprises: Usage of BDS

Entrepreneur Staff

Participation in training activities

>0 times

Average partici-

pation in training

>0 times

(>0 staff)

Average partici-

pation in training

Trained staff in

% of total staff

2004 66% 2.1 24% 1.7 20% CCICP

2005 32% 3.7 8% 1.8 14% 2004 68% 3.0 10% 4.3 172%

CCIUP 2005 54% 4.4 9% 2.2 73% 2004 84% 4.7 12% 5.0 194%

CPWCIC 2005 57% 3.6 6% 2.3 47% 2004 21% 2.2 11% 1.5 43%

MDCCI 2005 6% 1.8 1% 1.5 17%

NCHSL 2005 54% 3.0 5% 4.7 52% 2004 86% 2.3 3% 3.5 140%

PAEA 2005 43% 2.0 4% 1.5 19%

Participation in external training activities per chamber

Page 39: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 39

The enterprises: Usage of BDS

Entrepreneur Staff Participation in training activities per education >0 times

>0 times (>0 staff)

2004 2005 2004 2005 Below O-level 37% 33% 7% 3% O-level 47% 35% 10% 5% A-level 39% 35% 9% 5% Technical Diploma 56% 42% 12% 9% University degree 52% 34% 8% 10% Participation in external training activities per entrepreneur’s education level

Page 40: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 40

The enterprises: Usage of BDS

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Trained SME Trained staff

Registered Not registered

Human recourse development vs. legal status 2006

Page 41: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 41

The enterprises: Usage of BDS

0%

20%

40%

60%

80%

100%

SME - NoStaff - No

SME - YesStaff - No

SME - YesStaff - Yes

Ch

an

ge

Change turnover

Change employment

Change turnover per employee

Nucleus SME’s performance between 2002 and 2005 versus participation in training activities 2004 / 05 (with 1 to 10 employees)

Page 42: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 42

Enterprises: Employment

Employees of the Enterprises Nucleus SMEs

SMEs 0 1 – 10 11 – 20 > 20

Employ-ment

Average

Total 658 13% 81% 4% 2% 2,486 3.8 Males 401 7% 84% 5% 3% 1,915 4.8

Females 257 21% 76% 2% – 571 2.1 CCICP 156 5% 84% 5% 6% 858 5.5

Males 114 5% 80% 7% 8% 769 6.7 Females 42 5% 95% – – 89 1.7

CCIUP 124 13% 85% 2% – 298 2.4 Males 56 9% 86% 5% – 298 3.2

Females 68 16% 84% – – 116 1.7 CPWCIC 64 22% 75% 2% 2% 194 3.0 MDCCI 182 18% 76% 2% – 652 3.6

Males 122 7% 84% 6% 3% 580 4.8 Females 60 40% 60% – – 72 1.2

NCHSL 76 20% 75% 5% – 252 3.3 Males 55 20% 78% 2% – 172 3.1

Females 21 19% 67% 14% – 80 3.8 PAEA 56 – 95% 5% – 232 4.1

Males 54 – 96% 4% – 212 3.9 Females 2 – 50% 50% – 20 10.0

Non-Nucleus

95 6% 61% 21% 12% 828 8.7

Males 60 3% 55% 28% 13% 614 10.2 Females 35 11% 71% 9% 9% 214 6.1 Enterprises in reference to the employment in 2005

Page 43: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 43

Enterprises: Employment family members

Family members

SMEs

0 40% 1 37% 2 15%

>2 8% Family members

Page 44: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 44

Enterprises: Employment composition

0%10%20%30%40%50%60%70%80%90%

100%

Regist

ered

Unreg

ister

ed

<= 1

0 em

pl

<= 2

0 em

pl

> 20

em

pl

Enterprises

Sh

ares

Family Perm Employed Daily paid Others

Share of employee groups in different enterprise samples

Page 45: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 45

Enterprises: Employment change

Nucleus members Basis: 658 SMEs Enterprises Employment

Changes in SME In-

creased De-

creased In-

creased De-

creased a) Founded before 2002

224 = 34%

88 = 13 %

+ 682 = +40 %

- 293 = -17%

b) Founded since 2002

181 381

c) Total 405

= 62% 88

= 13 % + 1,063 = +62%

- 293 = -17%

d) Total net

+ 770 = + 45%

e1) Total men 287 SMEs

210 = 58%

77 =19 %

+ 698 = + 48%

- 248 = -17%

e2) Total net men

+ 450 = 31%

f1) Total women 257 SMEs

195 =76%

11 = 4%

+ 365 =+145%

- 45 = - 18%

f2) Total net women

+ 320 = 128%

Change in employment of Nucleus enterprises

Page 46: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 46

Enterprises: Employment change

Non-Nucleus members Basis: 95 SMEs Enterprises Employment

Changes in SME In-

creased De-

creased In-

creased De-

creased a) Founded before 2002

29 = 31%

11 = 12 %

+ 169 = +27 %

- 74 =-12%

b) Founded since 2002

10 103

c) Total 39

= 41% 11

= 12 % + 272

= +43% - 74

= -12%

d) Total net

+ 198 = + 31%

e1) Total men 60 SMEs

28 = 47%

6 =10 %

+ 186 = + 40%

- 37 = -8%

e2) Total net men

+ 149 = 32%

f1) Total women 35 SMEs

11 =31%

5 = 14%

+ 86 =+52%

- 37 = - 22%

f2) Total net women

+ 49 = 30%

Change in employment of non-Nucleus enterprises

Page 47: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 47

Enterprises: Employment change

Start-ups since 2002

Chamber New jobs net

in %

Total new jobs SMEs Jobs

created CCICP 32% 206 42 158 77% CCIUP 166% 186 45 67 36% CPWCIC 341% 150 25 41 27% MDCCI 22% 116 47 69 59% NCHSL 8% 19 6 3 16% PAEA 67% 93 16 43 46% Total 45% 770 181 381 49% Employment change per chamber

Page 48: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 48

Enterprises: Employment change sectors

Sector New jobs

net in %

New jobs

Thereof jobs cre-ated by

start-ups since 02

Tailoring 404% 101 29% Beauty Culture 180% 83 48% Vegetable Cultivation 148% 46 37% Cut Foliage 128% 194 50% Photographers 82% 36 – Protected Agriculture 67% 93 46% Bakery 59% 20 45% Carpentry 37% 47 77% Patchwork 34% 13 15% Ornamental Fish 31% 4 175% Printers 18% 21 143% Gem & Jewellery 17% 5 20% Hemp 15% 3 – Automobile 11% 6 – Light Engineering -1% -1 – Lime Production -5% -9 – Brass Ware -7% -14 5 jobs Employment changes in different sectors

Page 49: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 49

Enterprises: Employment change - Ethnicity

Ethnicity New jobs

net in %

Thereof jobs cre-ated by

start-ups since 02

Ave-rage

emplo-yees 2005

Sinhalese 45% 50% 3.9 - Female 141% 42% 2.9 - Male 29% 55% 5.2 Tamil 23% 133% 3.0 Moor 50% 38% 4.4 Employment changes by the different ethnic groups

Page 50: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 50

Enterprises: Employment change - Size

Enterprise size in number of employees Nucleus

New jobs net

In % New jobs per

SME >= 0 and <= 10 + 386 + 37% + 0.9 >= 11 and <= 20 + 34 + 13% + 1.8 >= 21 – 72 – 21% – 6.0 Non-Nucleus >= 0 and <= 10 + 120 + 56% + 1.8 >= 11 and <= 20 – 38 – 17% – 2.5 >= 21 + 7 + 4% + 1.0 Employment change of SMEs founded before 2002

Page 51: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 51

Enterprises: Employment change - Age

-25%

-15%

-5%

5%

15%

25%

35%

45%

55%

65%

75%

New Jobs -Registered SMEs

New Jobs -Unregistered SMEs

Nu

mb

er

of

me

mb

ers

1910 - 1979 1980 - 1989

1990 - 1999 2000 - 2001

Creation of jobs in reference to the enterprises’ foundation year

Page 52: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 52

Enterprises: Employment change - Age

-1,25

-1,00

-0,75

-0,50

-0,25

0,00

0,25

0,50

0,75

1,00

1,25

1,50

New Jobs -Registered SMEs

New Jobs -Unregistered SMEs

Nu

mb

er

of

me

mb

ers

1910 - 1979 1980 - 1989

1990 - 1999 2000 - 2001

Creation of jobs per SME in reference to the enterprises’ foundation year

Page 53: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 53

Enterprises: Employment change - Status

Legal Status

New jobs

net in %

Thereof jobs cre-ated by

start-ups since 02

New jobs per

SME

Registered Nucleus SMEs 34% 39% 1.4 - Females 97% 31% 1.9 - Males 25% 44% 1.3 Unregistered Nucleus SMEs 75% 64% 1.0 - Females 177% 58% 1.2 - Males 46% 71% 0.9 Registered non-Nucleus 33% 52% 2.5 Unregistered non-Nucleus 31% 75% 0.3 Employment changes vs. legal status

Page 54: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 54

Enterprises: Employment change – Start Nucleus

Change of employment 2002 – 2005

SMEs founded before 2002 who participate in a Nucleus in the year

Mal + Fem

Males Females

2002 - 14% - 5% - 37% 2003 + 14% - 3% + 224% 2004 + 46% + 35% + 131% 2005 + 22% + 11% + 47% 2006 + 21% + 20% + 27%

Employment change 2002 – 2005 in reference to the SMEs’ participation start in a Nucleus

Page 55: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 55

Credits

Credit taken In % of SMEs with credits in 2006

2005 2006 Rela-tives

Banks Money lenders

Socie-ties

Others

Nuc members

51% 35% 10% 80% 2% 4% 4%

- Males 59% 40% 7% 84% 2% 3% 4%

- Females 33% 26% 17% 72% 1% 6% 3%

CCICP 59% 47% 15% 73% 1% 3% 8%

CCIUP 46% 36% 7% 87% 4% - 2%

CPWCIC – 18% 36% 55% - 9% -

MDCCI 33% 27% 2% 92% 2% 4% -

NCHSL – 19% - 79% - 21% -

PAEA 75% 59% 12% 79% - 3% 6% Non-Nuc. members 50% 31% - 71% 4% - 25%

- Males 52% 25% - 86% 7% - 7% - Females – 41% - 57% - - 43% Overview about entrepreneurs' credits

Page 56: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 56

Credits per Ethnicity

Ethnicity Credit taken

Rela-tives

Banks Money lenders

Socie-ties

Others

Sinhalese 36% 11% 79% 1% 4% 4%

- Females 26% 21% 69% 7% 3%

- Males 42% 7% 83% 2% 3% 5%

Tamil 27%

- Females 43%

- Males 8%

Moors 8%

- Females 0%

- Males 20%

Individual absolute numbers too small

Credit users according to ethnicity

Page 57: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 57

Credits per Education & Training

0%

10%

20%

30%

40%

50%

60%

70%

< O-Level O-Level A-Level Tech. Dipl. /University

Education and Duration of Professional Training

SM

Es

wit

h c

red

its

None < 6 months < 3 years > 3 years

Credits in reference to levels of education and duration of professional training

Page 58: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 58

Credits per formal status (2005)

Of credit takers Enterprise category

Credit taken Rela-

tives Banks Money

lenders Socie-

ties Others

Total Nuc members

35% 10% 80% 2% 4% 4%

- registered 43% 6% 83% 2% 4% 4%

- unregistered 28% 17% 74% 1% 4% 4%

Females 26% 17% 72% 1% 6% 3%

- registered 36% 4% 86% 11%

- unregistered 22% 30% 59% 3% 3% 5%

Males 40% 7% 84% 2% 3% 4%

- registered 45% 6% 83% 3% 2% 5%

- unregistered 34% 8% 83% 5% 3% Credit users vs. registration

Page 59: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 59

Credits per enterprise size

0%

10%

20%

30%

40%

50%

60%

0 - 5 6 - 10 11 - 20 >= 21

Employees

SM

Es

wit

h c

red

its

Nucleus Non-Nucleus

Nucleus and Non-Nucleus SMEs with credits ac-cording to employment

Page 60: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 60

Credits per enterprise age

0%

10%

20%

30%

40%

50%

60%

1910 -1979

1980 -1989

1990 -1999

2000 -2004

Enterprise foundation year

Sh

are

of

SM

Es

wit

h c

red

its

Nucleus SMEs Females

Males Non-Nucleus

Nucleus and Non-Nucleus SMEs with credits ac-cording foundation decade

Page 61: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 61

Credits per investment

Credit taken

Amount of In-vestment Yes in

2005 Yes in 2006

No in 2005

Yes in 2006*

Yes in 2005 No in 2006**

Total = 0 Rs 31% 22% 16% 65%

- Males 41% 24%

- Females 19% 19%

Total < 10’ Rs 41% 35% 26% 41%

- Males 52% 43%

- Females 26% 27%

Total < 50’ Rs 54% 36% 25% 44%

- Males 58% 40%

- Females 39% 30%

Total < 100’ Rs 64% 45% 40% 35%

- Males 68% 55%

- Females 43% 23%

Total < 500’ Rs 68% 57% – 33%

- Males 70% 64%

- Females 65% 43%

Total > 500’ Rs 70% 41% – –

- Males 70% 40%

- Females1 – 50% * percent of SMEs without credit in 2005 and with one in 2006 / ** percent of SMEs with credit in 2005 and with none in 2006 – it is not possible to calculate from column 1 to column 2 with the other columns because the samples differ Credits according to investment

Page 62: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 62

Credits & premises

0%

10%

20%

30%

40%

50%

60%

70%

Premises owned Premises rented

Nucleus SMEs: Credits & premisesS

ha

re o

f S

ME

s w

ith

cre

dit

s

Males registered Females registered

Males unregistered Females unregistered

Nucleus SMEs with owned / rented premises and credits

Page 63: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 63

Credits & premises

Premises Share of credit takers Owned Rented CCICP 40% 35% CCIUP 31% 38% CPWCIC 2% – MDCCI 21% 33% NCHSL 15% – PAEA 45% 100% Total 27% 41% Sample 470 101 SMEs with credits in reference to premises

Page 64: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 64

Credits & premises: performance

-50%

-25%

0%

25%

50%

75%

100%

125%

Unreg. -No credit

Unreg. -Withcredit

Regist. - No

credit

Regist. -Withcredit

Performance with & without bank credits

Ch

an

ge

Change turnover

Change employment

Change turnover per employee

Performance 2002 – 2005 of unregistered Nucleus members with up to 10 employees without and with bank credits

Page 65: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 65

Credits & premises: performance

0%25%50%75%

100%125%150%175%200%225%250%

No credit- Owned

Withcredit -Owned

No credit- Rented

Withcredit -Rented

Registered SMEs with owned / rented premises

Ch

an

ge

Change turnover

Change employment

Change turnover per employee

Performance 2002 – 2005 of registered Nucleus members with up to 10 employees without and with bank credits and with owned and rented premises

Page 66: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 66

Credits & premises: performance

-50%-25%

0%25%50%75%

100%125%150%175%200%225%250%

No credit- Owned

Withcredit -Owned

No credit- Rented

Withcredit -Rented

Unregistered SMEswith owned / rented premises

Ch

ang

e

Change turnover

Change employment

Change turnover per employee

Performance 2002 – 2005 of unregistered Nucleus members with up to 10 employees without and with bank credits and with owned and rented premises

Page 67: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 67

Changes in the enterprises:

Analyse the changes in your company: How do you estimate the situation before your

participation in the Nucleus and how is it today?

Very poor = 1

Not very well = 2

Fair = 3

Good = 4

Great = 5

Ave-rage

Score

Before 2% 11% 57% 30% – 3.2 Administration and management Today – 2% 25% 64% 9% 3.8 Before 6% 12% 54% 26% 2% 3.0 Finances and cost calculation Today 5% 5% 25% 57% 8% 3.6 Before 2% 12% 58% 28% – 3.1 Equipment, installations, lay-out Today – 4% 23% 63% 10% 3.8 Before 2% 10% 59% 28% 1% 3.2 Technological level and efficiency

of production processes Today – 2% 16% 69% 12% 3.9 Before 1% 7% 50% 38% 4% 3.4 Product quality Today – 1% 11% 66% 22% 4.1 Before 5% 12% 53% 29% 1% 3.1 Quality and efficiency of the people

working in the company Today 4% 5% 20% 59% 12% 3.7 Before 2% 5% 45% 46% 2% 3.4 General situation of the company Today – 1% 11% 67% 21% 4.1

Questions for the entrepreneurs to evaluate the changes in their enterprises

Page 68: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 68

Changes in the enterprises:

0%10%20%30%40%50%60%70%80%

Poor /not

good

Fair Good /Great

Sh

are

of

SM

Es

Before the Nucleus Participation

Now, 2006

Entrepreneurs’ evaluation of their enterprises (all scores together)

Page 69: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 69

Changes in the enterprises:

Average scoring of the general situation of the

enterprise Males Females

Chamber Bef Now Bef Now

CCICP 3.2 4.2 3.0 4.1

CCIUP 3.0 4.1 2.8 4.0

CPWCIC – – 3.4 4.3

MDCCI 3.8 4.0 3.7 4.0

NCHSL 3.5 4.0 3.5 4.0

PAEA 3.2 4.1 – –

Total 3.4 4.1 3.2 4.1

Turnover category

05 > 02 3.4 4.1 3.2 4.2

05 = 02 3.6 4.1 3.5 4.1

05 < 02 3.6 4.1 – – Performance of the Nucleus enterprises estimated by the entrepreneurs

1 = Very poor2 = Not very well3 = Fair 4 = Good5 = Great

Page 70: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 70

Changes in the enterprises:

Change of scores per sector

a) >= 1.0 – Cut Foliage – Hemp – Light Engineering – Photography

b) >= 0.5 and < 1.0 – Beauty Culture – Brass Maker – Carpentry – Garment Industry – Tailoring – Vegetable Production

c) < 0.5 – Automobile – Bakery – Gem & Jewellery – Handicraft – Lime Production – Ornamental Fish – Patchwork – Printing Change of Enterprises’ performance score per sector

Page 71: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 71

The enterprises: Turnover

Turnover of Nucleus and non-Nucleus SMEs

0%

5%

10%

15%

20%

25%

30%

35%

40%

< 5' < 20' < 80' < 250' < 500' > 500'

Sh

are

of

SM

Es

Nuc 2002 Nuc 2005 Non Nuc 2002 Non Nuc 2005

Page 72: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 72

The enterprises: Turnover

Turnover (TO) in 2005

Turnover

in 2002

SME

share

s

< 5’ Rs < 20 ‘Rs

< 80’ Rs

< 250’ Rs

< 500’ Rs

> 500’ Rs

Aver-age TO

1,000 Rs

Change of TO

< 5’ Rs 36% 23% 43% 30% 4% 27 + 974%

< 20 ‘Rs 25% 49% 41% 10% 44 + 249%

< 80’ Rs 21% 17% 49% 30% 2% 2% 110 + 121%

< 250’ Rs 11% 2% 20% 41% 24% 13% 298 + 81%

< 500’ Rs 4% 7% 43% 29% 21% 393 + 3%

> 500’ Rs 3% 25% 75% 844 - 16% Ave. TO

78 100% 8% 31% 33% 16% 5% 5% 119 + 52%

Page 73: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 73

The enterprises: Turnover

Turnover 2002 – 2005:

Share of SMEs in a

higher equal lower

Productivity Change

2002 – 2005

Nucleus SMEs Turnover Category

Average TO

1,000 Rs

Change of Turn-

over

Turn-over per

em-ployee in 2005

1,000 Rs all higher

TO

Total 53% 39% 8% 119 + 52% 24.2 + 29% + 185%

– Males 50% 40% 10% 140 + 46% 25.6 + 27% + 200%

– Females 61% 34% 5% 43 + 172% 14.8 + 85% + 111%

per chamber

CCICP 61% 33% 6% 191 + 82% 29.4 + 68% + 208%

CCIUP 70% 28% 2% 52 + 194% 16.6 + 16% + 49%

CPWCIC 90% 10% – 76 + 2950% 16.2 + 614% + 691%

MDCCI 41% 55% 4% 106 + 54% 21.4 + 46% + 225%

NCHSL 29% 41% 30% 120 – 14% 35.5 – 22% + 82%

PAEA 69% 29% 2% 31 + 89% 24.2 + 29% + 425%

non-Nucleus enterprises

Total 26% 70% 4% 366 + 19% 42.9 + 4% + 118%

– Males 23% 72% 5% 547 + 16% 51.2 + 5% + 97%

– Females 29% 68% 3% 114 + 42% 20.6 + 15% –

Page 74: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 74

CPWCIC: Change of Turnover

0%10%20%30%40%50%60%70%80%90%

100%

NucleusSMEs

CPWCIC Non-NucleusSMEs

Share of SMEs

Turnover 2002 - 2005

2,950%

Page 75: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 75

Change of Turnover 2002 – 2005

-25%0%

25%50%75%

100%125%150%175%200%

Share of SMEs

Turnover Change 2002 - 2005

2,950%

Page 76: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 76

Change of Productivity 2002 – 2005 all SMEs

-25%0%

25%50%75%

100%125%150%175%200%

Share of SMEs

Turnover Change 2002 - 2005

614%

Productivity =Turnover perEmployee

Page 77: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 77

Change of Productivity 2002 – 2005 best SMEs

0%50%

100%150%200%250%

Share of SMEs

Turnover Change 2002 - 2005

691%

SMEs in a higher turnovercategory

425%%

Page 78: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 78

Nucleus: Start of participation

2002

2003

2004 2005

2006

0%

5%

10%

15%

20%

25%

30%

2002 2003 2004 2005 2006

Starting year of entrepreneur’s participation in a Nucleus

Page 79: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 79

Nucleus: Information

M / F Coun-sellor

Entre-preneur

M 42% 51% CCICP

F 54% 37% M 66% 24%

CCIUP F 72% 22%

CPWCIC F 63% 35% M 68% 26%

MDCCI F 43% 37% M 36% 58%

NCHSL F 95% 5% M 55% 39%

PAEA F 0% 100% M 55% 39%

Total F 62% 31%

Information about the Nucleus through a counsellor or another entrepreneur

Page 80: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 80

Nucleus: Motivation

What did motivate you most to participate in the Nucleus?

All chambers

MD-CCI

Felt isolated in the enterprise and looked for contacts to other entrepreneurs

21% 8%

Was dissatisfied with the business and looked for improvements

36% 20%

Encountered problems in the day-to-day work and needed new solutions

24% 16%

Was just curious to know what will happen there

8% 18%

Hoped to get loans or subsidies

9% 28%

Other reasons 3% 10% Entrepreneur’s motivation engaging in a Nucleus

Page 81: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 81

Nucleus: Activities

Number of Activities

Year 0 1-5 6-10 11-15

>15 Ave-rage

2005 2% 55% 43% 4,9 CCICP

2006 31% 54% 10% 1% 5% 3,4 2005 2% 43% 48% 5% 2% 6,0

CCIUP 2006 25% 44% 26% 6% 4,5 2005 21% 70% 9% 3,2

CPWCIC 2006 23% 53% 23% 2% 3,7 2005 6% 80% 12% 2% 2,9

MDCCI 2006 34% 64% 3% 1,7

NCHSL 2006 3% 87% 11% 2,8 2005 5% 80% 12% 3% 3,8

PAEA 2006 34% 57% 9% 2,3 2005 6% 63% 29% 2% 4,4

Total 2006 27% 58% 12% 1% 1% 3,0

Participation in Nucleus activities

Page 82: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 82

Nucleus: Evaluation of Nucleus’ work

Year Great

1 Good

2 Fair

3

Not very Well

4

Very Poor

5

Ave-rage

Score

2005 13% 56% 29% 3% 2,2 CCICP

2006 17% 41% 26% 7% 8% 2,5 2005 14% 68% 17% 1% 2,0

CCIUP 2006 5% 62% 9% 9% 14% 2,6 2005 21% 71% 8% 0% 1,9

CPWCIC 2006 27% 41% 21% 7% 2% 2,2 2005 8% 52% 34% 7% 2,4

MDCCI 2006 15% 58% 19% 6% 2% 2,2

NCHSL 2006 21% 67% 11% 2% 1,9 2005 7% 71% 22% 2,2

PAEA 2006 20% 40% 33% 7% 2,3 2005 13% 63% 22% 2% 2,1

Total 2006 16% 53% 19% 7% 6% 2,3

Entrepreneurs’ evaluation of the Nucleus work

Page 83: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 83

CCICP: Evaluation of Nucleus’ work

0%

10%

20%

30%

40%

50%

60%

Great= 1

Good= 2

Fair =3

Notvery

well =4

Verypoor =

5

Share of SMEs

20052006

Average:2005: 2.22006: 2.5

Page 84: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 84

CCIUP: Evaluation of Nucleus’ work

0%10%20%30%40%50%60%70%80%

Great= 1

Good= 2

Fair =3

Notvery

well =4

Verypoor =

5

Share of SMEs

20052006

Average:2005: 2.02006: 2.6

Page 85: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 85

CPWCIC: Evaluation of Nucleus’ work

0%10%20%30%40%50%60%70%80%

Great= 1

Good=2

Fair =3

Notvery

well =4

Verypoor =

5

Share of SMEs

20052006

Average:2005: 1.92006: 2.2

Page 86: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 86

MDCCIA: Evaluation of Nucleus’ work

0%

10%

20%

30%

40%

50%

60%

70%

Great= 1

Good=2

Fair =3

Notvery

well =4

Verypoor =

5

Share of SMEs

20052006

Average:2005: 2.42006: 2.2

Page 87: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 87

NCHSL: Evaluation of Nucleus’ work

0%10%20%30%40%50%60%70%80%

Great= 1

Good=2

Fair =3

Notvery

well =4

Verypoor =

5

Share of SMEs

20052006

Average:2005: ----2006: 1.9

Page 88: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 88

PAEA: Evaluation of Nucleus’ work

0%10%20%30%40%50%60%70%80%

Great= 1

Good=2

Fair =3

Notvery

well =4

Verypoor =

5

Share of SMEs

20052006

Average:2005: 2.22006: 2.3

Page 89: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 89

Nucleus: Evaluation of Nucleus’ work

Member Total scores in

since 2005 2006 2002 2,1 2,3 2003 2,2 2,5 2004 2,1 2,6 2005 2,1 2,2 2006 - 1,8

Scoring in reference to start of Nucleus participation

Page 90: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 90

Nucleus: Change of the relationship between the Nucleus entrepreneurs

How did you see the other entrepreneurs before your participation in the Nu-cleus and how do you see them now? 1 Competitor and personal

enemy 2 Competitor 3 Neutral, no relationship 4 Colleague of the same

sector with the same in-terests and problems

5 Personal and professional friend

Page 91: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 91

Nucleus: Change of the relationship between the Nucleus entrepreneurs

Sample Before Now

Differ-ence

Per chamber

– CCICP 2.7 4.7 2.0

– CCIUP 2.2 4.8 2.6

– CPWCIC 2.7 4.6 1.9

– MDCCI 2.4 4.2 1.8

– NCHSL 3.7 4.0 0.3

– PAEA 3.1 4.6 1.5

Per sex

– Males 2.7 4.4 1.7

– Females 2.5 4.5 2.0

Page 92: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 92

Nucleus: Change of the relationship between the Nucleus entrepreneurs

0

1

2

3

4

5

6

Share of SMEs

BeforeNow

Page 93: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 93

Nucleus: Evaluation of counsellor

Average Scoring 2005 2006

CCICP 2,0 3,0 CCIUP 1,8 2,6 CPWCIC 1,6 MDCCIC 2,6 2,9 NCHSL 1,7 PAEA 1,9 4,4 Total 2,1 2,7 Scoring of the counsellors’ performance

Scoring:

1 = Great2 = Good3 = Fair4 = Not good5 = Very poor

Page 94: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 94

Chamber: Opinion about chamber

Unknown Useless Useful AverageNucleus members 1 2 3 scoreCCICP Before 79% 7% 14% 1,4

Now 1% 10% 89% 2,9CCIUP Before 77% 6% 17% 1,4

Now 13% 87% 2,9CPWCIC Before 65% 5% 30% 1,7

Now 6% 94% 2,9MDCCI Before 62% 23% 15% 1,5

Now 4% 96% 3,0NCHSL Before 54% 4% 42% 1,9

Now 100% 3,0PAEA Before 69% 7% 24% 1,5

Now 11% 89% 2,9Total Before 69% 11% 20% 1,5

Now 8% 92% 2,9

Non Nucleus membersNow 16% 84% 2,8

Page 95: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 95

Opinion about CCICP

0%10%20%30%40%50%60%70%80%90%

100%

Unknown= 1

Useless =2

Usefull =3

Share of SMEs

BeforeNow

How was youropinion aboutCCICP before your partici-pation in a Nucleus andhow is it now?

AverageBefore: 1.4Now: 2.9

Page 96: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 96

Opinion about CCIUP

0%10%20%30%40%50%60%70%80%90%

100%

Unknown= 1

Useless =2

Usefull =3

Share of SMEs

BeforeNow

How was youropinion aboutCCIUP before your partici-pation in a Nucleus andhow is it now?

AverageBefore: 1.4Now: 2.9

Page 97: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 97

Opinion about CPWCIC

0%10%20%30%40%50%60%70%80%90%

100%

Unknown= 1

Useless =2

Usefull =3

Share of SMEs

BeforeNow

How was youropinion aboutCPWCIC before your partici-pation in a Nucleus andhow is it now?

AverageBefore: 1.7Now: 2.9

Page 98: The  Nucleus Approach in Sri Lanka

01/2007 ESSP - GTZ 98

Opinion about MDCCIA

0%10%20%30%40%50%60%70%80%90%

100%

Unknown= 1

Useless =2

Usefull =3

Share of SMEs

BeforeNow

How was youropinion aboutMDCCIA before your partici-pation in a Nucleus andhow is it now?

AverageBefore: 1.5Now: 3.0

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Opinion about NCHSL

0%10%20%30%40%50%60%70%80%90%

100%

Unknown= 1

Useless =2

Usefull =3

Share of SMEs

BeforeNow

How was youropinion aboutNCHSL before your partici-pation in a Nucleus andhow is it now?

AverageBefore: 1.9Now: 3.0

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Opinion about PAEA

0%10%20%30%40%50%60%70%80%90%

100%

Unknown= 1

Useless =2

Usefull =3

Share of SMEs

BeforeNow

How was youropinion aboutNCHSL before your partici-pation in a Nucleus andhow is it now?

AverageBefore: 1.5Now: 2.9

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Chamber: Opinion about services

Service

Year 0 = Does not know

1 = Very Poor + 2 = Not

very well

3 = Fair +

4 =Good+

5 =GreatAverage

Score2005 14% 5% 82% 3,02006 7% 14% 79% 3,12005 0% 6% 94% 3,42006 1% 19% 80% 3,320052006 0% 11% 89% 3,52005 9% 9% 83% 3,22006 0% 4% 96% 3,620052006 9% 2% 90% 3,72005 0% 0% 100% 3,72006 2% 7% 91% 3,62005 7% 5% 88% 3,32006 2% 10% 88% 3,4

2005 9% 7% 84% 3,22006 2% 10% 88% 3,42005 0% 0% 100% 3,72006 3% 10% 87% 3,5

2005 7% 14% 79% 3,12006 2% 12% 86% 3,4

NCHSL

PAEA

Total

Non Nuc member

Males

Females

CCICP

CCIUP

CPWCIC

MDCCI

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CCICP: Opinion about services

0%10%20%30%40%50%60%70%80%90%

Unknown= 0

Poor, Notvery well

1 - 2

Fair, Good,Great

3 - 4 - 5

Share of SMEs

20052006

Average:2005: 3.02006: 3.1

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CCIUP: Opinion about services

0%10%20%30%40%50%60%70%80%90%

100%

Unknown= 0

Poor, Notvery well

1 - 2

Fair, Good,Great

3 - 4 - 5

Share of SMEs

20052006

Average:2005: 3.42006: 3.3

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CPWCIC: Opinion about services

0%10%20%30%40%50%60%70%80%90%

100%

Unknown= 0

Poor, Notvery well

1 - 2

Fair, Good,Great

3 - 4 - 5

Share of SMEs

20052006

Average:2005: ---2006: 3.5

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MDCCIA: Opinion about services

0%

20%

40%

60%

80%

100%

120%

Unknown= 0

Poor, Notvery well

1 - 2

Fair, Good,Great

3 - 4 - 5

Share of SMEs

20052006

Average:2005: 3.22006: 3.6

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NCHSL: Opinion about services

0%10%20%30%40%50%60%70%80%90%

100%

Unknown= 0

Poor, Notvery well

1 - 2

Fair, Good,Great

3 - 4 - 5

Share of SMEs

20052006

Average:2005: ---2006: 3.7

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PAEA: Opinion about services

0%10%20%30%40%50%60%70%80%90%

100%

Unknown Poor, Notvery well

Fair, Good,Great

Share of SMEs

20052006

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Chamber: Opinion about lobby

Lobby

Year 0 = Does not know

1 = Very Poor + 2 = Not

very well

3 = Fair +

4 =Good+

5 =GreatAverage

Score2005 32% 18% 50% 1,92006 5% 33% 62% 2,82005 53% 12% 35% 1,52006 3% 28% 69% 3,120052006 5% 11% 84% 3,42005 26% 9% 65% 2,42006 1% 14% 85% 3,320052006 41% 12% 48% 1,92005 20% 0% 80% 3,12006 4% 22% 75% 3,22005 33% 11% 56% 2,12006 7% 21% 72% 3,0

2005 33% 11% 56% 2,12006 7% 21% 72% 3,02005 53% 7% 40% 1,72006 7% 16% 77% 3,1

2005 29% 21% 50% 2,32006 10% 39% 51% 2,4

CCICP

CCIUP

CPWCIC

MDCCI

NCHSL

PAEA

Total

Non Nuc member

Males

Females

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CCICP: Opinion about lobby

0%10%20%30%40%50%60%70%80%90%

100%

Unknown= 0

Poor, Notvery well

1- 2

Fair, Good,Great

3 - 4 - 5

Share of SMEs

20052006

Average:2005: 1.92006: 2.8

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CCIUP: Opinion about lobby

0%10%20%30%40%50%60%70%80%90%

100%

Unknown= 0

Poor, Notvery well

1- 2

Fair, Good,Great

3 - 4 - 5

Share of SMEs

20052006

Average:2005: 1.52006: 3.1

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CPWCIC : Opinion about lobby

0%10%20%30%40%50%60%70%80%90%

100%

Unknown= 0

Poor, Notvery well

1- 2

Fair, Good,Great

3 - 4 - 5

Share of SMEs

20052006

Average:2005: ---2006: 3.4

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MDCCI: Opinion about lobby

0%10%20%30%40%50%60%70%80%90%

100%

Unknown= 0

Poor, Notvery well

1- 2

Fair, Good,Great

3 - 4 - 5

Share of SMEs

20052006

Average:2005: 2.42006: 3.3

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NCHSL : Opinion about lobby

0%10%20%30%40%50%60%70%80%90%

100%

Unknown= 0

Poor, Notvery well

1- 2

Fair, Good,Great

3 - 4 - 5

Share of SMEs

20052006

Average:2005: ---2006: 1.9

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PAEA: Opinion about lobby

0%10%20%30%40%50%60%70%80%90%

100%

Unknown= 0

Poor, Notvery well 1-

2

Fair, Good,Great

3 - 4 - 5

Share of SMEs

20052006

Average:2005: ---2006: 3.7

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Chamber: Opinion about perfor-mance

Perfor-mance

Year 0 = Does not know

1 = Very Poor + 2 = Not

very well

3 = Fair +

4 =Good+

5 =GreatAverage

Score2005 4% 3% 93% 3,52006 0% 17% 83% 3,32005 0% 2% 98% 3,72006 1% 15% 85% 3,420052006 0% 11% 89% 3,52005 7% 8% 86% 3,12006 0% 4% 96% 3,720052006 2% 0% 98% 4,02005 0% 0% 100% 3,82006 0% 4% 96% 3,52005 2% 3% 95% 3,42006 0% 9% 91% 3,6

2005 2% 3% 95% 3,42006 0% 9% 91% 3,62005 0% 1% 99% 3,42006 0% 7% 93% 3,7

2005 7% 14% 79% 3,02006 0% 9% 91% 3,4

CCICP

CCIUP

CPWCIC

MDCCI

NCHSL

PAEA

Total

Non Nuc member

Males

Females

Evaluation of the chambers’ performance in 2005 & 2006

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CCICP : Overall performance

0%10%20%30%40%50%60%70%80%90%

100%

Unknown= 0

Poor, Notvery well

1- 2

Fair, Good,Great

3 - 4 - 5

Share of SMEs

20052006

Average:2005: 3.52006: 3.3

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CCIUP : Overall performance

0%10%20%30%40%50%60%70%80%90%

100%

Unknown= 0

Poor, Notvery well

1- 2

Fair, Good,Great

3 - 4 - 5

Share of SMEs

20052006

Average:2005: 3.72006: 3.4

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CPWCIC : Overall performance

0%10%20%30%40%50%60%70%80%90%

100%

Unknown= 0

Poor, Notvery well

1- 2

Fair, Good,Great

3 - 4 - 5

Share of SMEs

20052006

Average:2005: ---2006: 3.7

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MDCCI : Overall performance

0%10%20%30%40%50%60%70%80%90%

100%

Unknown= 0

Poor, Notvery well

1- 2

Fair, Good,Great

3 - 4 - 5

Share of SMEs

20052006

Average:2005: 3.12006: 3.7

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NCHSL : Overall performance

0%10%20%30%40%50%60%70%80%90%

100%

Unknown= 0

Poor, Notvery well

1- 2

Fair, Good,Great

3 - 4 - 5

Share of SMEs

20052006

Average:2005: ---2006: 4.0

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PAEA : Overall performance

0%10%20%30%40%50%60%70%80%90%

100%

Unknown= 0

Poor, Notvery well

1- 2

Fair, Good,Great

3 - 4 - 5

Share of SMEs

20052006

Average:2005: 3.82006: 3.5

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Chamber: Member-ship develop-ment

0

100

200

300

400

500

600

700

Members at start Members 31.12.2006

+ 408%

+ 92%

+ 366%

+ 500%

+ 337%

+ 140%

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Nucleus members with and without chamber member-ship

0

100

200

300

400

500

600

Nucleus member, not chamber member

Nucleus member and chamber member

78%

91%

64%

90%

57%

55%

Percentage = share of Nucleus members whichare not chamber members

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The entrepreneur could imagine to pay for a “perfect” chamber a monthly membership fee of

100 Rs 200 Rs 300 Rs 500 Rs 1,000

Rs > 1,000

Rs

Average 2006 in Rs

Average 2005 in Rs

Total 49% 35% 7% 4% 5% – 217 180

CCICP 13% 66% 12% 5% 4% – 249 238

CCIUP 37% 23% 15% 7% 18% – 341 146

CPWCIC 61% 29% 6% 4% – – 156 106

MDCCI 85% 11% 1% – 3% 1% 146 145

NCHSL 50% 43% 3% 3% 1% – 172 –

PAEA 61% 22% 4% 11% 2% – 193 264

non-Nucleus members

11% 54% 19% 14% 1% 1% 275 –

Membership fees

Page 125: The  Nucleus Approach in Sri Lanka

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Thank you very much

• Economics Strategy Support (ESSP)2nd Floor, CPC Building,

109 Yatinuwara Street P. O. Box 133Kandy, Sri LankaTel.: 0094-8-232 447 Fax: 0094-8-232 [email protected]

www.NucleusSL.com