Nepal Australia Community Resource Management & Livelihoods ProjectNepal Australia Community Resource Management & Livelihoods Project
Nepal Australia Community Resource Management & Livelihoods Project
>> [Acromyms] 
 
   
   
   
   


Current Activities Result II >


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.

Current Activities Result II >

Business Development Services mechanism strengthened and operational

Conductive regulatory environment
BDS delivery mechanism strengthening
Supporting subcomittee business development services

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.


 

 

 

     
   
 

 

 

Copyright © 2007 NACRMLP. All Rights Reserved.