Rural Development Bank’s Developing Entrepreneurship in Cambodia
- 1. 34 th ADFIAP Annual Meetings Theme : “ Addressing Global Issues : Strategic Role of National Development Finance Institution “ April 20-23, 2011 - Kyrenia, North Cyprus by H.E. SON Koun Thor Advisor to Samdech Techo HUN SEN, Prime Minister Vice-Chairman of the Supreme National Economic Council Chairman and CEO of the Rural Development Bank of Cambodia Rural Development Bank’s Developing Entrepreneurship in Cambodia
- 2. Contents slide No. I. Government Policy : 3 A/- Promotion of SME: 3 B/- Promotion of One Village One Product Movement: 5 C/- Created Chamber of Professional and Micro Enterprises: 6 II. RDB’s activities in developing entrepreneurship : 7 A/-Background : 7 B/-The main goal : 8 C/- RDB’s activities: 9 III- Lessons : 14
- 3. A/- Promotion of SME : - The Government has reduced minimum requirements for the registration of SME and the company registration fee. Accounting system and financial report mechanism have been simplified. - Improvement of the business climate for SME development focusing on four main aspects : 1-Legal and regulatory framework-facilitating registration particularly via internet system, defining procedures and principles for inspection and certificate of origin for import and export, and adoption of a sub-decree on trade facilitation through risk management; I. Government Policy : Rectangular Strategy
- 4. 2- Financing-creation of financial leasing companies, and strengthening governance and financial report; 3- Supportive actions for small and medium enterprises- promoting innovation and technology as well as financing for small and medium enterprises, and strengthening and widening other supportive services; 4- Integrating small and medium enterprises into a global value chain and preventing all kinds of smuggling.
- 5. - Encouraging inventions, entrepreneurship, and self-confidence in rural areas. - This movement provides a comprehensive network linking production to the market, helps maintain regional identity, and encourages new initiatives for product diversification. - Promoting technical training for special products within some regions in the context of strengthening quality and expanding markets which are critical for further support to and participation in this movement. B/- Promotion of One Village One Product Movement :
- 6. - To help develop to all product and services by encouraging the growth and expansion of the handicraft and micro enterprises. - To provide training to professional craft artisans and the growing urban micro enterprise sector. C/- Created Chamber of Professional and Micro Enterprises of Cambodia ( CPMEC ) :
- 7. A/-Background : - The Rural Development Bank of Cambodia ( RDB ) is a Public and autonomous enterprise, authorized to operate as a specialized bank. - RDB is focusing on rural economic development rather than commercial. II. RDB’s activities in developing entrepreneurship :
- 8. B/-The main goal : To provide finance to licensed financial institutions, commercial banks, specialized banks, Micro finance institutions, credit operators, associations, development communities and micro-small and medium enterprises. To provide technical training to MFIs & Credit operators, especially help the credit operators in transforming to MFI.
- 9. C/- RDB’s activities: 1- Provide Financial : a/ - Supports MFIs : RDB provides loan to farmers and micro/small enterprises through Microfinance Institutions, and others Credit Operators. b/- Supports Communities : RDB also gives loan to Agriculture Development Community as a pilot test. The interest rate has reached its members would be lower than MFIs.
- 10. c/- Supports SME : -RDB gives loans to SME In term of working capital to collect paddy and investment capital to upgrade its machinery. -SME and Microfinance Integration is the new method that RDB has used sufficiently in improving the living standard of rural people. For instance: .SME and Microfinance Integration in Malay District, Banteay Meanchey Province, and .Green Community Project implemented by Baitang (Cambodia) Ltd.
- 11. d/- Supports OVOP : RDB has supported OVOP’s members such as Cambodian Sedge Mats Association in term of loan to improve Cambodian products. e/- Supports CPMEC : Providing loan to CPMEC’s members to build rice miller and mill rice for exportation and local consumption, create local employment, and collect paddy in order to stop paddy exportation.
- 12. a/- To MFIs and Communities : Since 2001 under IFAD project, RDB has had the training funds component to conduct training courses on Credit Analysis, Accounting/ bookkeeping and Loan Monitoring. At present, there is no training fund for them anymore but they can request RDB to conduct training. b/- To SME : Beside financial supports, RDB also provide training to SME such as Rice Millers on how to prepare Business Plan, financial reports and Bookkeeping record. 2- Provide Technical Training :
- 13. c/- To OVOP Communities : In collaboration with GTZ, organizing a series of workshops to promote the One Village One Product Movement. All workshops focusing on important products which have great market potential. d/- To CPMEC : - Provide technical assistant, helping to do the business plan - Provide training workshops at both, the national and provincial level such as products development, marketing…
- 14. III- Lessons : Micro-Finance and SME Integration operation : production processing market. For poor communities : nurturing process, strong monitoring and evaluation. Flexible terms of credit; and Good community leadership.
- 16. Silk products Asparagus and Red Corn
- 17. Marble sculpture Silver products
- 18. Thanks for your attention