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Current Activities
> Result II
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Business Development Services mechanism strengthened and operational

It
is known that Business Development Service (BDS) concept mainly
focuses on sustainability of economic activities through the identification
of critical services, service providers and providing appropriate
linkages to entrepreneurs for the promotion of enterprises. It
deals with each and every economic activity from the very production
stage to end market. The basic ethics of this approach lies on
buying the service so that this may go in a long run.
The project is on its last phase of implementation and has focused
on the sustainability of the interventions carried out by the
project in early phases. Thus, the project is working for the
institutionalisation of service providers, project partners, stakeholders
and CFUGs for the promotion and sustainability of interventions
carried out so far. The project has identified log sale business,
NTFPs business, saw mill business, sal leaf plate business and
lapsy candy business as potential business which need to be strengthened
and institutionalised.
The project supports mainly focus on capacity building of service
providers and entrepreneurs and providing adequate linkages for
the promotion of economic activities. In this regard, it has carried
out three major activities in the past. Firstly, it has executed
the strategy of services identification from very production stage
to end market. For this purpose, a number of entrepreneur CFUGs
and other stakeholders were met and interviewed. Secondly, the
assessment of potential service providers has been carried out
at the local level, district level and central level. Finally,
it is focusing in implementation of action plan which has been
prepared on the basis of assessment in the past.
For the continuity of mentioned business, the project is focusing
on developing a co-ordination and sharing mechanism through DFCC
sub committee. This sub committee will help in providing linkage
between service providers and the CFUGs (entrepreneurs) to get
contact and sharing marketing information.
In addition, developing model CFUGs through CFUG income generation
and equitable benefit sharing among the poor, disadvantaged groups,
dalits and women is one of the main concerns of the project. Thus,
the project has emphasised on inclusion of Livelihoods implementation
Plans (LIP) and business plans in the CFUGs' operation plan. These
plans will help them to conduct business in an organised manner
and to equitable benefit sharing among the poor, DAGs and Dalits.

Current Activities

During the last six months, the
project has assessed institutional capability of potential service
providers. Based on the assessment, the project has prepared a
plan for their institutional and technical capacity building.
The project is also providing skill development training for the
CFUGs and private entrepreneurs for the promotion of their businesses.
Realising that inadequate market linkage and marketing information
are the main constraints, primary focus has been given to promote
access to market and establish marketing information system at
DFCC at both Kabhrepalanchowk and Sindhupalchowk districts. For
this, the project has started preparing necessary data base and
will hand over it to DFCC, upon its formation.
There are two saw mills supported by the project in earlier stages.
Out of which, the Chaubas sawmill established at Chaubas is operational
and another Ichhadevi at Chautarta is not operational at present.
The main reasons behind it are due to inadequate saw mill management
skill, frequent change of saw mill management committee and lack
of marketing knowledge and linkage. Thus, the project providing
support to Chautara saw mill in overcoming the mentioned constraints.
The project has supported 8 CFUGs in the promotion of log sale
business and has planned to support 12 additional CFUGs in log
selling business. Marketing information and linkage, sustainable
market orientation harvesting techniques and knowledge of legal
aspects are the some of the areas where the project is intervening.
Similarly, the project has supported 2 CFUGs (Kabhre) and 1 CFUG
(sindhu) in preparation of lapsi candy. About 80 HHs are being
involved in this enterprise. Three more CFUGs will get involved
in this business during final stage period.
In the same way, 1 CFUG has been supported in preparing
sal leaf plates more 180 HHs will be benefited from this enterprise.
The women will be the main beneficiaries as they prepare lafa
for the enterprise utilising their leisure time.
Lessons
Learned

• BDS approach is
effective in creating required services for Business development
in local level. It could play a vital role to sustainability
of any program.
• Forest management for easy access to forest resources,
Enterprise development to add the value on resources and
equitable benefits sharing to address the issues of social
equity and increase people participation are the three pillar
areas need to be integrated for the sustainable operation
of enterprises
• Community based forest enterprises create opportunities
for employment and income generation. Since timber processing,
log sale, NTFPs collection and sale and Sal leaf lafa preparation
are labour intensive job, they engage a number of local
people in harvesting, processing and transporting.
• Community management of an enterprise has a flip
side as well. The structure of community management appears
to be complex, as the decision making process is lengthy
and it hinders the effective decision making process for
a competitive business. It also lacks the knowledge and
skills of both the production and marketing to the extent
needed. Therefore, a partnership with the private sector
would add value through the effective management of the
enterprise. Private sector enterprises appear to be tactical,
have a simple management structure and an efficient means
to make. Partnerships with the private sector would bring
the initial investment required and maintain the quality
to a minimum standard.
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