TPO Network Awards 2010

Best TPO from Small Island Developing State

Enterprise Mauritius

Read an interview with Enterprise Mauritius CEO Prakash Beeharry

Enterprise Mauritius sought to re-engineer itself from a Trade Support Institution and Trade Promotion Organization to a full-fledged trade development organization. It did so using the 3 C’s model, which focuses on Competitiveness Enhancement, Product Conformity and Market Connectivity. A public-private partnership was established involving the chamber of commerce, industry associations, ministries and public institutions.

The Competitiveness Enhancement prong focuses on diffusing technology, developing enterprises, providing working capital and sourcing clean energy. The Product Conformity prong provides support for upgrading product quality, standards and packaging. Market Connectivity involves surveys of markets with export potential, business meetings, international trade fairs, and financial assistance to companies exploring foreign markets.

Success for SMEs

To accomplish this re-engineering, Enterprise Mauritius tested and used the 3 C’s model in three case studies:

• New market development for SMEs in the Swedish market. This project supported Mauritian SME clothing manufacturers in developing export opportunities in Sweden. Between 2006-2009, exports of clothing to Sweden grew from less than 2 million rupees to nearly 10 million rupees.
• Demystifying the US market for SMEs. This project sought to help Mauritian agro-processing and textile companies penetrate the US market. Between 2008-2009, exports by large enterprises increased 21%, while SMEs, without prior US export experience, realized 69% growth.
• Preparedness of SMEs to export to the EU market. Enterprise Mauritius created an action plan to inform and prepare SMEs to meet new EU product regulations. The European Commission commended Enterprise Mauritius and provided funding. In 2008, not a single Mauritian SME was exporting to the EU. By June 2009, three SMEs were regularly exporting processed food to France with a value of nearly 5 million rupees.

 

Interview with Enterprise Mauritius CEO Prakash Beeharry

“As a small island state, we need to cope with the moving global world environment and constantly adapt. The dynamic evolution of the world trading environment is moving so fast that even the smartest are being outpaced. It’s important to be innovative and inventive, and very close to your stakeholders.” Prakash Beeharry, CEO, Enterprise Mauritius

Note: This is Enterprise Mauritius’ second Award. In 2006, it was recognized for an integrated approach that allowed it to look at the internal capability of Mauritian businesses and international market opportunities simultaneously rather than sequentially. This allowed Enterprise Mauritius to respond to change more rapidly, and help more of the country’s companies to move from a local market orientation to an emphasis on exporting.

What challenges was your organization faced with before you made the changes in processes that led to you winning the Award?

Enterprise Mauritius realized we had to re-engineer ourselves from a TSI (trade support institution) and TPO to a fully-fledged TDO (trade development organization). Changing times meant a reconsideration of the TPO landscape. In the past, TPOs were more geared towards providing information to bridge the knowledge gap between suppliers and demanders of commodities. They had more involvement with supply chain variables. Recent evolution in the international commercial environment has brought complex and interlinked challenges, which can only be met with a paradigm shift. This is why we revised our concept to: TPO + TSI = TDO.

Enterprise Mauritius had historically been handling projects across different areas within the overall framework of enterprise and market development. Operationalizing a vast number of widely diverse projects, coupled with the process where each member of the technical team is expected to be responsible for a portfolio of cross divisional assignments, made it very cumbersome to monitor, evaluate and report. Our ‘multi-highway’ operational mode required a remodeling of our approach aimed at a proper filtering of processes and measurability success.

The necessity of TPOs’ accountability and the measurability of their performances both in terms of quality and quantity needs a structured approach which could objectively carry out impact assessments for each and every project operationalized and implemented by them. The summation of the impacts on all projects undertaken would, logically, enable a proper performance appraisal of every TPO.

This need required the development of a model that could be flexible and buoyant enough to include all such projects within its scope. We also had to equip the organization to follow each individual project in its specific evolution and make spot reports on all projects at any point in time.

How did you identify what changes you had to make?

We reviewed industrial structures and identified the challenges faced by each of our industry sectors worldwide. Industries vary, usually with SMEs outnumbering larger companies. Their market focus is also different. This ‘reality check’ suggested that companies’ needs are similar. However, the proportion of each sub-sectoral need within the national universal set of needs is directly proportional to the weight of that sub-sector in the national economy.

As a result, we based our new model on the 3C’s concept – Competitiveness Enhancement, Market Connectivity and Product Conformity. Competitiveness Enhancement focuses on diffusing technology, developing enterprises, providing working capital and sourcing clean energy. Product Conformity provides support for upgrading product quality, standards and packaging. Market Connectivity involves surveys of markets with export potential, business meetings, international trade fairs, and financial assistance to companies exploring foreign markets.

What have the changes accomplished so far? Results?

The functionality of the model and its user friendliness have inculcated a new culture and officers have a much stronger grip on project operationalization and implementation. Engagement of the potential beneficiaries, clear demarcation of the role of each and every stakeholder, optimization of resource-use and maximization of impact are assured. Moreover, measurability of both quantitative and qualitative performance indicators is achieved on a step-by-step basis.

We tested and used the 3C’s model in three case studies. The new market development for SMEs in the Swedish market project supported Mauritian SME clothing manufacturers in developing export opportunities. Between 2006 and 2009, exports of clothing to Sweden grew from less than 2 million rupees to nearly 10 million rupees.

The project on demystifying the US market for SMEs project sought to help Mauritian agro-processing and textile companies penetrate the US market. Between 2008 and 2009, exports by large enterprises increased 21%, while SMEs, without prior US export experience, realized 69% growth.

Enterprise Mauritius also created an action plan to inform and prepare SMEs to meet new EU product regulations. The European Commission commended Enterprise Mauritius and provided funding. In 2008, not a single Mauritian SME was exporting to the EU. By June 2009, three SMEs were regularly exporting processed food to France with a value of nearly 5 million rupees.

What is the most innovative feature of the changes you have implemented?

The most innovate feature of this model is its resides in the capacity to provide a structured approach that enables the identification of needs and assists in clear formulation and efficient implementation of support programmes aimed at the optimization of TPO performance and impact maximization for beneficiaries.

We also established a public-private partnership involving the chamber of commerce, industry associations, ministries and public institutions.

In your view, what are the major obstacles to a TPO showing value for money to its stakeholders – both clients and public authorities?

Today, the major challenges of TPOs stem from the fact that over the years their roles have become more diverse and extensive. The input-output equation is not so direct because their initiatives in developing countries revolve more around issues related to graduation and export readiness of enterprises. In this perspective, the efficacy of their interventions, efficiency of resource allocation and the measurement of impact are rendered complex, blurred and debatable.

Is the model you used replicable by other TPOs?

The 3 C’s model has proven to be SMARTER – simple, measurable, actionable, realistic, timeliness, evaluate and re-evaluate. The model should be an effective mechanism for all TDOs committed to efficient service delivery. The unique characteristics of the model are that it is scientific in approach, orderly in concept and understanding, exhaustive in capturing industry needs, clear in methodology, efficient in resource planning, comprehensive in solution generation and effective in result orientation.

The model is an “all-in-one” formula for all TDOs’ applications, best practices and benchmarking.