Nenasala

Small and medium enterprises (SMEs) can be identified as an important strategic sector for promoting growth and social development of Sri Lanka. Over the years, SMEs have gained wide recognition as a major source of employment, income generation, poverty alleviation and regional development. The SMEs cover broad areas of economic activity such as agriculture, mining, manufacturing, construction and service sector industries. Although the SMEs are important component of Sri Lanka’s rural economy, many of these enterprises have difficulty in marketing their products. While they are often at the mercy of middle men in the domestic market, their exposure to the international market is very limited. Some of these businesses are therefore compelled to wind up operations after a short time period due to poor sales and failure in generating an income. Developed by the “Rajarata Nenasala” (Rajarata Telecentre), located in Galenbidunuwewa in the district of Anuradhapura, the project “e –commerce for SMEs” is an attempt to increase market opportunities for local SMEs by enhancing their visibility both locally and internationally using the online catalog and osCommerce solutions: osCommerce is a leading Open Source online shop e-commerce solution. Rajarata Nenasala has launched a web site to showcase and market the products of SMEs in the area of Galenbindunuwewa, one of the rural villages in Sri Lanka. Basic intention behind the project is to create marketing opportunities for the SMEs by using Information & Communication Technology (ICT) available to them in their Nenasala. Utilizing its own resources and by leveraging on the Nenasala Network, Rajarata Nenasala has being able to sign up SMEs onto the field of eCommerce. This project has provided SMEs, an ideal opportunity of showcasing their products to a wide clientele and securing direct marketing opportunities at more realistic price. The Idea Originator Mr. Sudath Chandika Samarakoon, Manager of the Rajarata Nenasala was the pioneer to set up the website: www.smallbizlanka.com with the information on SMEs in his area. He is a successful telecentre manager with over 3 years experience in telecentre activities. Speaking on the project, Sudath reiterated that “The main source of income in my area is agriculture. The economic situation of our people is very unstable and unpredictable. We have a Nenasala (telecentre) and internet connectivity. So I thought I can help my community by promoting their SMEs. In fact, I wanted to create a dynamic SME sector, enhance their capabilities and competitiveness, create jobs and, in doing so, reduce poverty in our village.” The Idea in Practice The main objective of launching the ‘Small Biz Lanka’ website was to support and integrate approach in building a dynamic SME sector in Galenbindunuwewa area. Further, it was expected to strengthen the enabling business environment for SMEs, catalyzes investment by improving SMEs access to commercial finance and enhances the capacity of SMEs to efficiently and effectively involve in market opportunities. In order to achieve their targets, Rajarata Nenasala implemented the project “e-Commerce for SMEs” with the financial assistance and technical support given by Information & Communication Technology Agency of Sri Lanka (ICTA). They developed an online platform for the SMEs by creating them an opportunity to showcase their products to both local and international market. By using ‘Small Biz Lanka’ website, SMEs can market their products and generate an income. Small Biz Lanka advertise various kinds of products of SMEs such as flowers, fruits, garments and especially handicrafts including hand bags, traveling bags, purses, wall hangings, files covers, dolls & soft toys, coconut shell handicrafts, etc. “SMEs in our area have a limited knowledge on IT services and advantages of e-Commerce. We have managed to make them aware about the IT services and benefits of e-Commerce. We started our promotion campaign of the project from our Nenasala. We distribute leaflets among the students who came to Nenasala hoping that they will deliver the news to the community. Then we visited all the SMEs in our area making them aware about the project and its advantages. Because of the ‘Small Biz Lanka’ our Nenasala became popular in the village. Now people come to our Nenasala looking for information on our project. Not only the people in our area, but the SMEs from varies parts of Sri Lanka have shown their interest to join with us and showcase their products in this web site. Most of the SMEs who have joined with us are house wives, handicapped people and young entrepreneurs” says Sudath, Nenasala Manager. Young girls making handicrafts in Galenbindunuwewa, Sri Lanka Photo Credit: Rajarata Nenasala The customers can purchase products showcased in the website by contacting Rajarata Nenasala. Once the order is given and amount is paid, we will manage to send out the requested items via postal services. Sudath further noted that they are on the process of developing a payment gateway for the web site which will enable the customers from around the world to purchase products from the Small Biz Lanka web site. Sudath together with his staff in Rajarata Nenasala expresses their sincere gratitude to the ICTA for the tremendous support given to them in implementing the project for the benefit of their rural community. They assure that they are successfully heading towards achieving their vision: to become the best e-Commerce service provider in Sri Lanka. Few years back, SME sector in the area of Galenbindunuwewa was less dynamic and underdeveloped. The growth and expansion of SMEs were constrained by problems related to production and lack of market opportunities. The e-commerce project launched by Rajarata Nenasala has provided solutions to the problems of SMEs. On the other hand, Rajarata Nenasala has become the access point to all the SMEs in Galenbindunuwewa area to venture the market opportunities available for them outside their village. The Idea Replication Potential The project can be replicated in regional or global level creating immense market opportunities for the SMEs in rural areas to generate an income through the dividends of ICT. The idea Replication Tips Why to Replicate: Most of the SMEs in rural areas do not have efficient and effective access to market opportunities. Being unable to reach the local or international market, they have been isolated and constrained. Online market platforms like ‘Small Biz Lanka’ is a fine example which shows how we can make use of modern technology to solve the problems of SMEs in our rural areas. On the other hand this can be used to promote regional and rural development and to attract the entrepreneurs from overseas to invest in the local SME sector in rural areas as well. With such efforts, it will ultimately results in socio- economic development of a community once being isolated, marginalized, underdeveloped and poverty stricken. Who can do this: Telecentres/ telecentre networks, government institutions or other organizations such as regional business chambers can replicate this project for the benefit of SMEs in rural areas. How to proceed: Telecentre Networks and managers can do this in partnership with government organizations and other organizations such as regional business chambers to empower the SMEs with new market opportunities.