The Evolution of the MSME Strategy
In 1995, the Government of Yemen responded to an approach from the G8 group of countries offering development assistance by the preparation of a nationalsmall andmicroenterprise development strategy in readily implementable form.In 2009, withthe support of GTZ, the Government of Yemen decided to update the originalstrategy, but at the same time, revised the SME definition (Small and Micro-enterprise) tothat of Small and Medium. As a result, the emerging strategy became the MSME strategyand included small enterprises as well.The 2009 strategy failed to gain consensus from the stakeholders, and in 2010, a further attempt to finalise the strategy was made with a strong focus on consensus.Also, in 2010, with support from GTZ, the Ministry of Industry and Trade developed aconcept for an Industrial Modernisation Programme, aimed at all industry in Yemen. Sincesupport to large industry does not vary much from support to SMEs and also, since largeenterprises constitute a very small percentage of total enterprises, the components of theIndustrial Modernisation Programme have been incorporated into the MSME Strategy.Due to the fact that Yemen has relatively few large enterprises, the resulting strategy iseffectively a “Private Sector Development Strategy”
Purpose of the MSME Strategy
The purpose of the MSME Strategy is first and foremost,
. Previousefforts have suffered to an extent from “Paralysis by Analysis” and lack of consensus. For this reason, it has been decided that, although this strategy document is finalised, thestrategy itself must be viewed as a dynamic living document in a constant state of updating, and refinement. For this reason, the strategy itself is a short functionaldocument which is easily presented and communicated, and is drawn from the individualstrategies of the individual stakeholders. The strategy is presented as a table where it is asimple matter to add an extra line if something should be added, and where a line cansimply be removed in order to remove an element. In this way, we are not burdened bythe need for perfection preventing the document from being completed.
The Traditional Approach
The usual approach to strategy development is depicted in the diagram on the followingpage, which describes a logical process of internal and external analysis leading to SWOTAnalysis and an emerging strategy.This process is the diligent process, which takes time and involves a significant level of stakeholder co-operation. All of the various stakeholders have developed their ownstrategies (or are in the process of developing their own strategies) so the traditionalapproach is deemed inappropriate as it would involve the repetition of the work of others3