Somaliland Small Business Development
Starting & Managing a Business

The Small Business Development (SBD) was created on January 1, 2011 to empower the Somaliland's JOB creators, the small businesses, with highly targeted programs and initiatives. The small businesses, in turn, will advance local and regional economic development through the generation of business revenues, creation and job retention. This is crucial because most of the citizens in the major cities either own or work for small business.


In reality, the economic well-being of the country will not be realized unless the actual and potential capacity of small businesses is encouraged and developed. Therefore, the creation of an independent agency which will aid, advise, assist and protect the interests of small businesses is vital. Furthermore, the agency is an independent voice for the small business community and that ensures rules and regulations do not unfairly burden small entities.


The Agency will also assist start-up businesses in writing business plans which is a roadmap with milestones for a business. It begins as a pre-assessment tool to determine profitability and market share, then expands as in-business assessment tool to determine success, obtain financing and determine repayment ability.

 


Creating a comprehensive business plan can be a long process and tedious. Therefore, a good advice is required. The Small Business Development has the expertise to craft a winning business plan.
In general a good business plan contains the following:

Introduction

    A detailed business description and its goals
    The skills and experience that the owner brings to the business
    The advantages that the owner and business have over the competitors.

Marketing

    The product and service that the company will offer
    Customer demand for the products and services
    The market, its size and locations
    How the products and services will be advertised and marketed
    The pricing strategy

Financial Management

    An expected return on investment and monthly cash flow for the first year
    Projected income statements and balance sheets

Operations

    The day-to-day management
    Hiring and personal procedures
    Lease and rent agreements
    Account for the equipment necessary to produce goods or services
    Account for production and delivery of products and services

In addition, the Business Plan must contain a summary of business goals and objectives. It must also show the owner's commitment to the success of the business.

In corporation with the Ministry of Finance, the Ministry of Commerce, Central Bank and other relevant organizations, the Small Business Development will provide management assistance and loan program information to current and prospective small business owners. Among the programs are the widely world admired micro loans and export working capital loans which will broaden and enhance the small business ownership.

As a private non-profit organization, the Agency has a mission of building a financially inclusive world by giving people tools they need to improve their lives and is committed to working with the financial institutions and government to help small businesses in Somaliland.

The agency will consist of the following Divisions:

    OFFICE OF CAPITAL ACCESS

    The Office of Capital Access mission is to assist businesses in obtaining the loans necessary for expansion and for start-up. It is obvious that many citizens in this country are unable to realize their dreams of opening a business or expanding the operations of their business.

    The Small Business Development (SBD) does not make direct loans to small businesses. Rather, The SBD sets the guidelines for loans, which are then made by its partners (Banks and other financial institutions).
    LOANS PROGRAMS
        Regular Loans

        This loan program is the primary commercial loan program because of its flexibility in structure, variety of loan proceeds uses and availability. The proceeds of loans can be used for:

  1.             Equipment
  2.             Inventory
  3.             Working capital

        Again, the business loans do not come from Small Business Development, rather from the banks and other lenders. The loans are funded by these organizations and they make the decisions to approve or not approve the requests. In other words, the Agency locates the sources of the financial assistance and arranges negotiations for the parties.
        Export Loans Program

        The program includes loans to businesses that handle exports to foreign countries. The SBD places a priority on helping these small business exporters by securing funds.. The loan proceeds may be used for the following:
            To acquire inventory for export or pay the costs of goods for export.
            For pre-shipment working capital directly related to export orders.

        With the help of the SBD, the Borrower negotiates all terms of the loan with the Lender. The program offers flexible terms, low fees and a quick processing time.

        Eligibility of Export
        The exporter must have sufficient export trade and managerial experience.
        Eligibility of Buyers
        The foreign buyer must be a creditworthy entity located in an acceptable foreign country to both the Lender and SBD

        Microloan Program

        The Microloan Program provides small, short-term loans to small business concerns. Under this program, the Small Business Development negotiates with participants (Banks, the Ministry of Finance, etc) to make available funds to entrepreneurs. The small loans range from $1,000 to $5,000 and may be used for typical business purposes, such as working capital, and inventory. With the help of the Small Business Development, the Borrower negotiates the terms of the loan with the Lender.

  

GOVERNMENT CONTRACTING OPPORTUNITIES

The Government offers tools to help small businesses build their potential to compete successfully in the federal government sector. So business owners must be convinced that contracting with the Government is a smart way to grow their businesses. When their businesses deliver products or services under the Government contract, they must adhere to a variety of rules and regulations. But how do you find out about available contracts in the first place? (The rules and regulation of Somaliland will be applied)


Grant

Grants will be delivered as they become available.




 
 

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