Introduction to e-readiness centre

PROJECT VIKAS aims at using information and communication technology to improve the business capacities of existing small and medium enterprises (SME) by creating e-readiness centers that will utilize ICT to bring the necessary support that SMEs need to develop and prosper thus making them globally competitive through their business activities.

In many parts of the world, SME constitute the vast majority of businesses and are the mainstay of economic activity where most of the movement and innovation take place. India is no different in the sense that SMEs make up more than 60% of existing businesses. In many regions and sectors, however, business is still conducted in a rudimentary fashion, with primitive tools and techniques that have been inherited over generations. This often means limited productivity, local exposure only, and limited markets. Compounded further by the pressures of globalization and increased competition, and by severe bureaucracy and lack of government support, the situation of SMEs is threatened with becoming worse, resulting in many failed businesses and a shrinkage of an already small market share.

While ICT is not the end-all solution to the entire issue of globalization and competition, it certainly has a key role to play in terms of not only keeping SME alive, but also in expanding them and in creating new ones, in both cases creating more jobs and making them more sustainable. ICT interventions could happen at either or both sides of the value chain: the production/ cost side, making the operation more efficient and cost-effective, or the sales and marketing side, resulting in increased exposure and revenue.

PROJECT VIKAS achieves its objectives by setting up E-readiness centers in each cluster, or Hubs, that provide technical training, consulting services, business incubation services, and knowledge sharing platforms to the SMEs. In addition, PROJECT VIKAS has developed online SME tools that shall provide all the basic ICT tools any small business in a cluster may need in a customizable format. This Toolkit and training on how to use it are made available through the hubs. The management of each hub is also given management training and a model to help turn the hub itself into a small business, ensuring its sustainability.

Objectives of E- Readiness Centre

PROJECT VIKAS aims to set up SME e-readiness centers that shall providing services and tools to local entrepreneurs enabling them to manage and grow their businesses. The e-readiness centre is aimed to be supported for the duration of the project in each cluster i.e. 3 years after which the aimed structure is to make this center’s self sustainable.

The specific objectives of the initiative are:

Implementation Strategy

To reach its intended objectives, the initiative uses an implementation strategy focusing on these tracks: Knowledge acquisition and skills building: PROJECT VIKAS is to implement training programs that covers ICT skills. In addition, PROJECT VIKAS shall develop user-friendly online tools that address the needs of SMEs of each particular cluster. It covers information that will enable them to establish, grow, and manage their businesses.

Access to information: An e-readiness centre is established as an ICT hub. Its function is to serve the cluster SMEs and entrepreneurs within a radius of 200 kilometers by providing them with training, ICT advice, tools, incubation services, etc. in return for a fee. In addition, a cluster portal is developed to act as a virtual meeting place for sharing of knowledge and exploration of new business opportunities for the SMEs in the cluster.

Management Arrangements of e-readiness centres

PROJECT VIKAS retains overall management and coordination responsibility of the e-readiness centre along with local stakeholders throughout the lifetime of the project. Post project, these e-readiness centers shall be handed over to the local stakeholders for management and use. However, a steering committee with representatives from all partners is formed for each cluster, to provide general guidance, oversight, and facilitation. In addition, PROJECT VIKAS ensures that best practices are shared across steering committees in the various clusters of implementation.