mentoring microentrepreneurs

8/9/2019 Mentoring Microentrepreneurs

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Business Advisory Program

““Our vision is to be the leader in promoting business sector Our vision is to be the leader in promoting business sector

commitment to social development.commitment to social development.””

Philippine BusinessPhilippine Business

for Social Progressfor Social Progress




The PBSP Beginnings

• Established in 1970 by 50 business

leaders

• Collective Response of Business toDevelopment Imperatives

• Patterned after DividendoDividendo VoluntarioVoluntarioparapara lala ComunidadComunidad in Venezuela, where

voluntary corporate contributions basedon an annual percentage of profits financesocial development projects




MISSIONPBSP is committed to the

empowerment of the poorempowerment of the poorby promoting businessbusiness

sector leadershipsector leadership in, and

commitmentcommitmentto poverty alleviation

programsthat lead to selfself--reliancereliance.




TYPES OF INVOLVEMENT

CEO Time & Leadership

Financial Grants & Program

Assistance

Employee Engagement (Volunteering & Giving)

Product Giving/ In-Kind

Donation




POVERTY ALLEVIATION PROGRAMS

• Area Resource Management

• Education

• Water and Health

• Small and Medium Enterprise

Development

• Information Technology




Enterprise Development

Through Business AdvisingThe PBSP Business Advisory Program




•PBSP-BAPdelivers business

advisory services,through theassistance of Filipino volunteer

advisers, to helpmicro and smallenterprisesimprove and growtheir business




• A program in partnership with theCanadian Executive ServiceOrganization (CESO) supportedby the Canadian International

Development Agency (CIDA)

Business AdvisoryProgram (BAP)

CESO l SACO




Canadian ExecutiveService Organization (CESO)

• A private non-profit Canadian organization of expert business advisers providing assistanceto small and medium sized enterprises,

communities and organizations. It has over3,500 volunteers with solid experience inmore than 150 professional, managementand technical areas who serve as advisers,trainers, and mentors to Clients in Africa,

America, Asia, Central and Eastern Europe.




Canadian InternationalDevelopment Agency (CIDA)

• Supports sustainable development indeveloping countries in order to reduce

poverty and to contribute to a more secure,equitable and prosperous world.




Why SMEs development?

• The SME sector is the backbone of the Philippine economy*:

–comprises about 99.2% of allregistered firms nationwide

–employs 69.9% of the labor force

–contributes 32% to the economy.

*SME Development Plan 2004-2010




Focus on Micro and SmallEnterprises*

• help ensure a more equitabledistribution of income

• disperse economic activities to thecountryside

• potent force in the war against

poverty.

*SME Development Plan 2004-2010




Business Advisory Services:

• Organizational Management• Marketing

• Accounting & Finance• Production/Operations Mgt.

• Information Technology




Focus Sectors:

SMALL MFG.

FOOD PROCESSSINGAGRIBUSINESS

TOURISM




Client Profile• Asset size:– P150,000-P3M 60%

– P3M–P15M 35%

• Ownership:– Single Proprietorship

– Family-owned

• Sector:– Food, 33%

– Small Manufacturing, 41%

– Tourism/Services, 17%

– Agribusiness, 9%




• Application

• Client visit & diagnostics

How do we deliver?

• Client-VA matching

• Entry conference / VA deployment

• Assignment progress monitoring

• Closing / debriefing

• Evaluation of outcome & impact




Advisory ServiceDelivery

163 Applications for assistance (33 Clusters)128 Advisory assignments (17 Clusters)

68 Completed assignments (3 Clusters)




Increase inProductivity

Operating

Efficiency

Addtl

Investment

NewProducts/Markets

Increase in

Sales

More

Enterprises

Advancing in

BusinessPerformance

Levels




MORE ENTERPRISES ADVANCING

IN BUSINESS PERFORMANCE LEVELS

Increase in

Sales

SLERS Industries, Inc.Market Devt ( May 2006) Orgl Structure Enhancement (On-going)

• Expanded business from meat processing to SLERS Express Restaurant.• Developed new product - chicharon

• Business expansion to franchising of chicharon called “pica’pica”: 2 in Limketkai, 2 in OroRama, 1 in Gaisano Mall in Cagayan de Oro; 1 Gaisano mall in Davao City

• Increased in sales from Php3,337,000/day in 2006 to Php4,583,000/day in 2007 or 37%

increase




New

Products/Markets

Bulacan GTH Cluster (4 enterprises)Product Design & New Product Devt ( Sept 2007)

• At least 3 new products/designs developed by each of the enterprises• New products/designs being sold in all National Bookstore outlets nationwide






Additional

Investment

Mindanao Agri-Network Corp.Market Plan Devt ( Mar 2006) Business Plan Devt (Aug 2007)

• Acquired P2 Million loan from FPSDC using the business plan developed with VA






Operating

Efficiency

Lailen’s PastriesProductivity Improvement ( Mar 2005) Product Quality & Production Process Improvement (May 2007)

• Improved production process flow observing safety & sanitation standards

• Standardized product specs using scientific measurements

• Product shelf-life increased






Increase in

Productivity

Katakus, Inc.Computerization of Inventory System ( July 2006) Marketing Plan Devt (Feb 2008)

• Proper monitoring of stock inventory

• Timeliness in designing and producing products

• 75% increase in production volume due to computerized inventory system






JOBS GENERATED: 414

Male – 228 (55%)

Female – 186 (45%)

DOCHSEI:

115 coconut farmers in 4municipalities in Davao Or.provided jobs

MANCOR:

290 organic rice farmersassisted in marketing their

produce

JOB GENERATION




• 3 Clients provided P1.9M from LGUs and Govt. Line Agency

MORE ENTERPRISES ACCESSING

BUSINESS RESOURCES EFFECTIVELY

• Bohol Poverty Reduction Mgt Office – provided P1M budget byBohol Provl Govt for centralized acctg system, purchase of computer, staff training & other logistical requirements per VA

recommendation• Sultan Kudarat Muscovado Farmers & Millers Corp – provided

P600K loan by Pres. Quirino Municipal Govt for re-lending tomuscovado sugar producers to improve production equipment

• Charis Nutri-Fruit Bars – provided P300K equipment loan by

DOST for ice cream mixer designed by VA




MORE ENTERPRISES ACCESSING

BUSINESS RESOURCES EFFECTIVELY

• 2 Clients provided P2.3M by foreign funding agency andprivate financial credit institution

• Mindanao Agri-Network Corp – provided P2M loan by FPSDCfor additional working capital using business plan developedwith VA

• Katakus, Inc. – provided P300K grant from a US donor (GenevaGlobal) for fabrication of new production equipment




Volunteer AdvisersTotal of 572 VAs nationwide




CHALLENGE

INCREASED CLIENT REACH VIS-À-VIS AN EFFICIENT AND EFFECTIVE

SERVICE DELIVERY




CREATING PARTNERS

1. DEVELOPING CLUSTER

2. DEVELOPING LGU-LED (LOCAL ECONOMICDEVELOPMENT) PROJECTS




DEVELOPING PARTNERSHIP

THROUGH CLUSTERING

Grouping of enterprises to collaborate towards

commonly articulated and agreed results and directions




How We do Clustering?

The value-chain-clustering model in three variations, namely, lead enterprisecluster, the lead product cluster and lead operating results is adopted.

Example. Cebu GTH Subcontractors’ Development Program

The Lead Enterprise Cluster builds critical backward linkages around a

lead enterprise. It assumes that business gains of the latter directly benefitsbackward links.

Sub-Contractor

2

Sub-Contractor

1

Sub-Contractor

3

Sub-Contractor

4

Lead EnterpriseIncreased

Export

Sales

Increased

Production

Capacity

More Orders




This model focuses on the product with the best competitive advantage.

Clustering around the lead product assumes that participants will be

catalyzed to collaborate in promoting and developing the lead product.

Lead Product Cluster

Increased business

for raw material-producers

Increased

business for service providers

Increased

business for processors

Increased

business for consolidators

Example. Furniture is lead product of Guagua.

Lead ProductImproved

Technology

Increased

Production

of RM

Improved Business




Lead Operating Result Cluster

This clustering model focuses on key performance areas leading to a central

value. It assumes that improvement in particular key performance areas will

trigger creation of desired conditions sought by cluster participants.

Increased Access to

Exports

Improved

Production

Improved Product

Designs

Improved

Marketing

Improved

Technology

Example. SKMFMC sought to develop and link members to export markets

Better Qualified

Exporters




LGU-LED IS A PARTNERSHIP STRATEGY CENTERED ON ENABLING

LGUs TO LEAD LOCAL BUSINESS TO HARNESS LOCAL ECONOMIC

POTENTIALS

WHAT IS LGU-LED?

THE PROCESS BEGINS BY IDENTIFYING AN ENTRY POINT THAT WILL

PERSUADE LGUs TO WELCOME PARTNERSHIP

LIKE CLUSTERING, STRATEGIC PLANNING IS USED AS PRIMARY TOOL IN

DEFINING THE GOAL FOR THE PARTNERSHIP, PROBLEMS TO ADDRESS WITHRESPECT TO THE GOAL, OBJECTIVES, ACTION PLAN AND DEFINITION OF

ROLES.




31 MARCH 2008




CHALLENGEBRINGING BAP TO PBSP

BENEFICIARIES




PBSP Enterprise Development FrameworkPBSP Enterprise Development Framework

-Grant-In kind assistance(group/individual)

-Agri/non-agri

-Advocacy

-Organizing

-Establishment of infra

-Value formation

-Technology Transfer -Advocacy

Business Development Service

BAP, CRTD, SAMAR, TC

Capital (SMEC,OPN,others)

Group/individual

Agri/non-agri

Subsistence Livelihood Micro Small Medium

Micro (non-business) Growth oriented (business)

FINANCING

NON-FINANCING

Competitive MSMEs

that create job

opportunities




CHALLENGE

SUSTAINING DEVELOPMENT

SME ENVIRONMENT: THE HORIZONTAL DEVELOPMENT CONTINUUM




Inter- Industry

Level Dev’tIndustry LevelDev’tSector Level

Dev’t

Enterprise

Level Dev’t.

-Sustaining

business-Coping with

growing business

intricacies

- Creating partners

with other

members in the

sector

- Creating synergy

to be competitive

- Developing edge &sustain mkt.

foothold

Distinct

Need

- Creating partners with

other sectors in theindustry

- Creating support

mechanisms

- Sustaining edge and

expand markets

-Creating partners with

other industries

- Consolidating supportmechanism

-Sustaining “brand

image”, confidence of

market and penetrate

markets

Mode of

Assistance

-One-on-one

provision of basic

mgt. skills

-Sector cluster

collaboration w/ other sector members

- Enhancement of optn.

and mgt. skills

-Multi sector cluster

-Convergence w/ other

sectors & partners-Enhance industry

support systems

-Multi industry cluster

programmatic

convergence w/ other industries & partners

-Multi industry support for

program dev’t.

SME ENVIRONMENT: THE HORIZONTAL DEVELOPMENT CONTINUUM




LESSONS LEARNED1. Individual SMEs have limited resources thus the

need to source outside resources to completerequirement for growth

2. Working with partners harmonizes actionstoward the same direction & creates synergytowards more & better development results

3. Mainstreaming the informal sector to the formalsector requires structured interventions basedon their category level and identified role in thevalue chain




PBSPPBSP--BAPBAP

Helping micro and small enterprises grow throughbusiness advising.

mentoring microentrepreneurs

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