Improving BSO Services and SME Performance Through

Cleaner Production

[DATE][SPEAKERS NAMES]

Module 4: Barriers to Cleaner Production

adoption by SMEs

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

4

Motivation

Are you aware of other SMEs who have: Successfully conducted a CP assessment? Properly evaluated CP alternatives? Effectively implemented CP?

Can you envision implementingCP in your own organization?

(For Business Development Services providers:) Can you envision convincing your SME clients to implement CP?

Cleaner Production sounds like a good idea in principle. . .BUT

?

?

?

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

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Motivation

Honestly, NO.

I’m not sure

If the answer to many or most of these questions is “NO” or “not sure,” why??

There are only two possible answers:

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

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Motivation

CP opportunities that are also good business decisions are not common

Other barriers to CP exist, and must be overcome

A

B

The two possible answers:

WRONG! Experience shows that highly

profitable efficiency improvements exist even in the most competitive,

well-managed businesses.

!

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

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Four types of barriers to CP

Systemic  Technical

Attitudinal Economic

*Adapted from Chandak 1994, which recounts the experience of Project DESIRE.

1 2

3 4

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

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Don’t take this discussion personally!

This discussion of barriers in this presentation synthesizes the experience of Business Development Services (BDS) providers in helping SMEs to implement CP.

“Is this MY company you

are talking about?!”

“Is this MY client you are

talking about?!”

NO!NO!

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

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But. . . DO be honest with yourself

No enterprise is perfect. Some barriers to CP do NOT reflect a problem with the SME.

Instead, they are rational business practices within the SME’s business environment.

Does this barrier apply

to my organization?

Does this barrier apply to my client?

As we discuss these barriers, evaluate your

enterprise/ clients, and ask yourself:

Remember:

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

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Systemic Barriers to CP

Risk aversion Ordinary production concerns

taking priority Inadequate record-keeping and

reporting Ineffective management systems Ad hoc production planning Lack of employee training Turnover of technical staff

1

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

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Technical Barriers to CP

Limited availability of CP technology

Limited maintenance capabilities

Limited access to technical information and success stories

2

?

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

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Economic Barriers to CP

Lack of financing for CP Lack of “financing know-how” Preference for least capital-

intensive options Poor cash flow Poor investment planning

3

e.g. poor understanding about how to make the case for a CP investment to a financing organization

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

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Attitudinal Barriers to CP

Fear of failure Lack of culture of good

housekeeping Resistance to change among

employees Lack of effective supervision/

positive leadership

4

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

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Scaling the barriers

Are these barriers

surmountable?

?

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

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YES!

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

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These barriers are not unusual

These kinds of barriers are common when an SME (or any organization) tries to implement any valuable business strategy—not just CP.

CP can be integrated into, will reinforce, and benefit from:– Existing internal actions to

develop the business and

– Existing 3rd-party business development services

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

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AND:

Internal actions & 3rd-party services that can help

Implementation of the basic CP

process as taught in this

course

Business planning

(including assistance and

advising)

Management capacity building & development of

management systems

Networking/connection to

resources

Employee training

Providing or facilitating financing

Providing or facilitating technical

assistance

“This is exactly what I do for my

clients. . .”

Leadership development

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

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Matching services & actions to systemic barriers

Risk aversion Ordinary production concerns

taking priority Ad hoc production planning Ineffective management systems

!!!!

Business planning, including assistance

and advising

Management capacity building

Inadequate record-keeping and reporting

Lack of employee training Turnover of technical staff

!!!

Technical assistance

Employee training

The CP Process itself

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

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Matching services & actions to technical barriers

Limited access to technical information

Limited maintenance capabilities Limited access or exposure to

success stories

!

!!

Provision or facilitation of

technical assistance

Networking/ connecting to

resourcesEmployee training

THIS course directly addresses these barriers

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

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Matching services & actions to economic barriers

Poor investment planning Lack of financing know-how

!!

Business planning assistance & advising

THIS course directly addresses this barrier

Poor cash flow Lack of financing availability

!!

Providing or facilitating financing

Preference for least capital-intensive options

!Prove CP with

projects requiring minimum investment; work up to bigger CP

projects

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

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Matching services & actions to attitudinal barriers

Lack of positive leadership & effective supervision

Fear of failure

!!

Lack of “good housekeeping” culture

Employee resistance to change

!

!

Leadership develoment

Management capacity building

Effective advising

Technical assistance

Employee training

The CP Process itself helps to address this barrier

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

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Technical help beyond this course

Mali-specific resourcesto be discussed

Several African-based organizations Cleaner Production Centres

Wealth of technical CP information is online

See CP resource list in the course book

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

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Barriers? What Barriers?

Most barriers are familiar and surmountable

You and your organizations address them all the time

Over the next three days you will learn skills and tools to empower you to address unfamiliar barriers

Improving MSME Performance through Cleaner Production. Module 4: Barriers to CP. Visit www.encapafrica.org.

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How this course addresses barriers

Success stories and awareness of barriers

Skills for SMEs to implement CP

Case site visits

Tools to help promote and implement CP within SMEs

Today

Tomorrow

Day 3

Day 4