ENTERPRISE PLANNING AND MANAGEMENT SKILLSPWR 4).pdf · This report is divided into four main chapters, ... including lesson learnt on good practices for enterprises planning and

LSP Project and Workshop Reports 4 Livelihoods Diversification and Enterprise Development Sub-Programme

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FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS Livelihood Support Programme (LSP) An inter-departmental programme for improving support for enhancing livelihoods of the rural poor

ENTERPRISE PLANNING AND MANAGEMENT SKILLS

Participatory Training and Workshops for on- and-off farm diversification in 5 SPFS sites in Laos

February 2005

ENTERPRISE PLANNING AND MANAGEMENT SKILLS Participatory Training and Workshops for on- and-off farm diversification in 5 SPFS sites in Laos

Special Program for Food Security of the FAO (SPFS) & Livelihoods Diversification and Enterprise Development Sub – Programme of the LSP (LDED)

Vientiane, February 2005

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The Livelihood Support Programme The Livelihood Support Programme (LSP) evolved from the belief that FAO could have a greater impact on reducing poverty and food insecurity, if its wealth of talent and experience were integrated into a more flexible and demand-responsive team approach. The LSP works through teams of FAO staff members, who are attracted to specific themes being worked on in a sustainable livelihoods context. These cross-departmental and cross-disciplinary teams act to integrate sustainable livelihoods principles in FAO’s work, at headquarters and in the field. These approaches build on experiences within FAO and other development agencies. The programme is functioning as a testing ground for both team approaches and sustainable livelihoods principles. E-mail: [email protected] Website: From inside FAO: http://intranet.fao.org/en/departments/sd/en/projects/lsp/index.html

From outside FAO: http://www.fao.org/sd/dim_pe4/pe4_040501_en.htm

The Livelihoods Diversification and Enterprise Development Sub-Programme (LDED)

The Livelihoods Diversification and Enterprise Development (LDED) sub-programme aims to improve the effectiveness of FAO in addressing the needs and interests of poor people in livelihood diversification programmes and projects. The objectives of LDED are:

a. To appraise inhibiting and enabling factors, and approaches supporting livelihoods diversification and enterprise development.

b. To catalyze and facilitate innovative practices for supporting livelihoods diversification.

c. To increase inter-disciplinarity and learning in FAO and partner agencies for supporting livelihoods diversification and enterprise development.

The LDED will add value to FAO’s regular programme and projects with a particular focus on addressing obstacles and promoting opportunities for people. It will capitalize on existing FAO strengths related to LDED in addition to identifying and addressing gaps related to livelihoods diversification and enterprise development.

Email: [email protected]

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Table of contents

LIST OF ACRONYMS...................................................................................................................................2 EXECUTIVE SUMMARY ..............................................................................................................................3 BACKGROUND ............................................................................................................................................4 INTRODUCTION...........................................................................................................................................5 CHAPTER 1: WORKSHOP REPORT ..........................................................................................................7

1.1 SOCIO-ECONOMIC SITUATION OF THE VILLAGES ...............................................................................7 1.2 OVERVIEW OF TRAINING STAGES .....................................................................................................9 1.3 METHODOLOGY AND APPROACHES USED .......................................................................................17 1.4 OUTCOME OF PARTICIPATORY ACTIVITIES ......................................................................................17 1.5 SUPPORT NEEDS .........................................................................................................................20

CHAPTER 2: BUSINESS PLANS OF ACTION FOR 15 VILLAGE LEVEL ENTERPRISES....................21 2.1 MARKET OUTLETS ........................................................................................................................21 2.2 TECHNOLOGIES (INPUTS AND EQUIPMENTS) ...................................................................................22 2.3 COST AND RETURNS ....................................................................................................................23 2.4 FINANCING NEEDED......................................................................................................................23

CHAPTER 3: STAKEHOLDERS MEETING ..............................................................................................24 3.1 INTRODUCTION AND OVERVIEW .....................................................................................................24 3.2 LESSONS LEARNT ON GOOD PRACTICES FOR ENTERPRISE PLANNING ...............................................25 3.3 POTENTIAL AREAS OF SUPPORT AND COLLABORATION BY LOCAL PROJECT PARTNERS ......................27 3.4 FOLLOW UP ACTION TO IMPLEMENT BUSINESS PLANS .....................................................................28

CHAPTER 4: LIVELIHOOD DIVERSIFICATION AND ENTERPRISES DEVELOPMENT LESSONS.....30 4.1 APPRAISAL OF PARTICIPATORY LEARNING AND OUTCOMES..............................................................30 4.2 APPRAISAL OF PARTICIPATORY WORKSHOP AND OUTCOMES ...........................................................30 4.3 GAPS AND AREAS OF FURTHER ASSISTANCE ..................................................................................31

ANNEXES ...................................................................................................................................................32

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LLIISSTT OOFF AACCRROONNYYMMSS APB Agricultural Promotion Bank BDS Business Services DAFO District Agricultural and Forestry Office EDC Enterprise and Development Consultants IDOS Institutional Development & Organizational Strengthening (I)NGO (International) Non Governmental Organization FAO Food and Agriculture Organization of the United Nations LDED Livelihood Diversification and Enterprise Development NAFES National Agriculture and Forestry Extension Service NTFP Non Timber Forestry Products PAFO Provincial Agricultural and Forestry Office PRA Participatory Rural Appraisal RRA Rapid Rural Appraisal R&D Research and Development ROI Return on Investment SNV Netherlands Development Organization SPFS Special Program for Food Security

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EEXXEECCUUTTIIVVEE SSUUMMMMAARRYY

The aim of the project discussed here is to contribute to the awareness-building of project staff and villagers in general “good practices” related to small enterprise development and participatory training in “real world” enterprise plans for local village entrepreneurs. The project is the follow-up to a successful capacity building exercise in financial planning for enterprise development and diversification, which was undertaken in Nam Len and Luang Nantha, Laos, in May 2004. The SPFS – Laos had identified a strong need to train villagers and project staff in enterprise planning and management skills and, as such, worked with the LDED support facility in this follow-up. Prior to the enterprise planning, the team conducted rapid socio-economic studies in the villages in order to up-date the village resource maps and gather some socio-economic data, which is summarized in chapter 1. The training then consisted of three main stages:

1. Preparation – during this stage, the market potential of the target villages was assessed;

2. Conducting participatory training workshops in five SPFS sites – the main purpose of this was to identify potential on- and off-farm diversification activities in the proposed areas, and then to provide guidelines on key enterprise planning and management skills, as well as to assist potential entrepreneurs to develop action plans for applying these skills and forming their own enterprise

3. Multi-stakeholder workshops were organised at the provincial level in the three provinces – this allowed stakeholders to exchange their opinions on the lessons and to identify good practices for enterprise planning.

Out of 128 business plans prepared by the villagers fifteen were selected for further development and implementation. The selection was undertaken by the team according to a variety of criteria – product/ service description; customer and competitor identification; marketing strategy; calculation of total investment; calculation of profit and loss and ROI; and other strategies This report, then, covers these main project activities:

• The participatory planning and training workshops • The business plans of action • The multi-stakeholders meeting

Overall, it was widely acknowledged that enterprise planning and development is new for villagers and district staff in the SPFS target sites. In fact, so far, enterprise planning is carried out by large enterprises who usually submit their business plans to the concerned departments or to the banks for official approval, licenses or loans. The activities undertaken in this project were, as such, relatively new to most stakeholders, particularly as they encouraged the active involvement of stakeholders from all levels in Laotian society.

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This project is a follow-up to the successful capacity building activity in financial planning for enterprise development and diversification which was carried out in May 2004 in Nam Leu and Luang Namtha, Laos. This was financed by the Livelihoods Diversification and Enterprise Development sub-programme (LDED) of the Livelihood Support Programme (LSP), under the direction of the Special Program for Food Security (SPFS) of the Food and Agriculture Organization of the United Nations (FAO).

The SPFS-Laos has identified a strong need to train villagers and project staff in enterprise planning and management skills for on- and off-farm diversification and, as such, solicited the support of the LDED sub-program on this follow up activity. The aim of the project is to contribute to the awareness building of project staff and villagers in “good practices” related to small enterprise development and participatory training in “real world” enterprise plans for local village entrepreneurs. The main project activities are:

(i) Participatory training workshops, in 5 SPFS sites, on enterprise planning and management skills for on- and off-farm diversification.

(ii) Participatory learning by 15 enterprise planning groups (3 per SPFS site) of “real world” enterprise plans that can be implemented by participants following the training-cum-planning activities

(iii) Multi-stakeholder meetings, in 5 SPFS sites, to exchange business plans, lessons learnt and good practices.

FAO contracted the Netherlands Development Organization (SNV) to implement the project. SNV implemented the project in collaboration with Enterprise and Development Consultants (EDC), a local private consultancy firm on enterprise development.

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IINNTTRROODDUUCCTTIIOONN

This report covers the main project activities: the participatory planning and training workshops, the business plans of action and the multi-stakeholders meeting. Furthermore it presents the key lessons learned on livelihood diversification and enterprise development. The project team is presented below: Enterprise and Development Consultants: Mr. Thanomvong Khamvongsa, Trainer Ms. Somchai Soulitham, Trainer Ms. Nongnout Daothong, Trainer Special Program for Food Security Ms. Thongsawath Boupha, Deputy Head of Planning and Cooperation Division of NAFES and Constraints Analysis Expert of SPFS SNV Netherlands Development Organization: Ms. Thiphaphone Xosanavongsa, Advisor Micro and Small Enterprise Development Mr. Michel Ligthart Senior Advisor Local Governance Mr. Eelco Baan Senior Advisor Private Sector Development

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The project was implemented in 5 selected SPFS sites in Lao PDR:

Table 1: Five selected sites of SPFS

No Village’s name

District Province Ethnic Date of completion

1 Nasenkham Xay Oudomxay Mixture Hmong and Khmu

October 25 to November 1, 2004

2 Phiengdy Khonekeo Phonsavath

Hinheup Vientiane Mixture Lao Lum and Khmu

November 8-12, 2004

3 Sisangvone Kasi Vientiane Lao Lum November 8-12, 2004

4 Phonekham Bolikhanh Bolikhamxay Lao Lum December 13-17, 2004

5 Kouay Hinlath

Paksan Bolikhamxay Lao Lum December 13-17, 2004

This report is divided into four main chapters, which are summarized below: Chapter 1: Presents the successful implementation of participatory training

workshop in 5 selected SPFS sites Chapter 2: Presents business plans of action for 15 village level enterprises Chapter 3: Summarizes the outputs and results from the stakeholders meeting

including lesson learnt on good practices for enterprises planning and potential areas of support and collaboration by local project partners

Chapter 4: Highlights the lesson learnt on livelihood diversification and enterprise development

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11..11 SSOOCCIIOO--EECCOONNOOMMIICC SSIITTUUAATTIIOONN OOFF TTHHEE VVIILLLLAAGGEESS

Prior to the enterprise planning training in the village, the team conducted a rapid socio-economic study in order to update the village resource map and to gather some socio-economic data, as presented in the Initial PRA and socio-economic baseline survey by Bureau D’Etudes Lao (BEL) for SPFS/FAO in 2002 1 . The socio-economic situation of the villages and the potential for small business development in the SPFS sites are summarized in table 2.

Table 2: Summary of socio-economic situation of SPFS sites and their business potential

SPFS sites

Socio-economic situation of the village Potential Business Activities

Nas

enkh

am

The village economy is dependent on agricultural production and some off-farm activities, as it is located near the provincial capital. Rice is produced on 52.5 hectares of low-land paddy fields, located next to the village, and on 53 hectares of shifting cultivation in lands demarcated and allocated to the village by the district government. The average low-land paddy field is about 0.95 ha per household. 55 households, or 43%, have access to low-land paddy cultivation. In the lowland area, farmers have constructed a traditional weir and canals (on the Huay Katoi stream) to supplement water during the wet season.

o Small animal and poultry raising

o Fruit tree plantation o Seasonal cash crop

cultivation

Phi

engd

y--K

hone

keo

and

Pho

nsav

ath

The economy of these 3 villages depends on agricultural production and on the exploitation of forest products (timber and non-timber). Upland paddy yield is very low. Therefore, villagers are diversifying their usage of the uplands to include industrial tree plantation and cattle rearing. Crops and vegetables are cultivated on fields next to rivers, streams and natural ponds. Most of the crops are produced for household consumption. Recently a new irrigation scheme was constructed with the support of the SPFS, covering almost 39 ha. In the 3 villages there were only small quantities of pigs and poultry/fowls, as a result of the high incidence of animal disease and the lack of preventive measures. Although, due to vaccination campaigns, poultry and pig numbers have risen significantly since 2001.

o Large and small animal raising such as pig, and poultry

o Vegetable and cash crop cultivations

1 Field Document 1/02—Initial participatory rural appraisal and socio economic baseline survey in the four provinces of Luang Namtha, Oudomxay, Vientiane and Bolikhamxay province, dated February 2002.

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SPFS sites

Socio-economic situation of the village Potential Business Activities

Sis

angv

one,

Kas

i dis

trict

, Vie

ntia

ne P

rovi

nce

Agricultural production and the exploitation and trading of NTFPs (such as sugar palm, cardamom, bamboo shoots and rattan) are the key activities in the village. Rice is produced on about 36 ha of low-land paddy fields, situated next to the village and the Nam Lik River, and from short fallow shifting cultivation in a restricted area of 1.8 ha. About 36 households access low-land paddy cultivation with an average of 1 ha per household. Recently the village received support from SPFS project constructing an irrigation scheme that can supply water to around 37 ha of paddy fields. Yet it still needs some repairs for it to operate. The rice cultivated in the upland field on the opposite side of the Nam Lik River has a relatively low yield. Fruit trees, especially banana, are planted in the gardens or fields near the village. Banana plantations have became quite popular and are a good source of income for the villagers, as are other crops, such as sweet potatoes and pineapples, which are planted in the upland field on the other side of Nam Lik River. Vegetables are planted and cultivated in home gardens next to the village and Nam Lik River. They are one of the main sources of income for the villagers

o Large and small animal raising

o Vegetable and cash crop cultivation including seasonal crops

Pho

nekh

am,

Bol

ikha

nh

dist

rict,

Bol

ikha

mxa

y pr

ovin

ce

The village economy depends on agricultural production. Paddy is produced in 190 ha of lowland field. The yield is low (1.8 tons/ha). The average farm size is 1.4 ha per household. Almost all households (98%) have access to lowland paddy cultivation. Paddy cultivation areas represent two zones: 1. The large field (about 150 ha) located next to the village. 2) The area next to natural swamps (Kout Nia and Kout Veng swamps). Here there is both paddy and crop production. There is no shifting cultivation practiced in the area. Industrial crops, such as sugar cane, and fruit trees, including banana, pineapples, are grown in large flood-prone areas, located on the road linking the village to the district town. Food crops, such as maize, beans, starchy roots and vegetables, are grown in the swamp area and in the fields on the bank of the Namsan River. Animal husbandry is not fully developed due to diseases in poultry, pigs and cattle.

o Industrial tree plantation

o Industrial crop cultivation

o Large and small animal raising, including poultry

o Vegetables and cash-crop growing

Kou

ay

Hin

lath

, P

aksa

n di

stric

t, B

olik

ham

xay

prov

ince

The village economy depends on agricultural production. Paddy is produced in 206.4 ha of lowland rain fed paddy field, out of which, with the new irrigation system supported by the SPFS project, 143 could be fed by irrigated water. The yield of the rain fed and irrigated paddy fields are 3.5 ton/ha and 5 ton/ha respectively. The average farm is 2 ha, for rain-fed paddy, and 0.7 ha for irrigated paddy. Almost all household have access to lowland paddy cultivation. Six households that do not have access to paddy land during the wet season have been allocated irrigated fields in the dry season. Paddy is cultivated in two areas: 1 The large field (about 140 ha) next to the village. 2. The area next to natural wetlands, where paddy production is subject to floods during the wet season and cultivation is only during the dry season. There is no shifting cultivation practiced in the area. Food crops such as maize, beans, starchy roots and vegetables are grown on the wet land areas and on the fields located on the bank of the Mekong River. Animal husbandry is not fully developed due to the incidence of disease in poultry, pigs and cattle.

o Rice production in both rainy and dry seasons;

o Seasonal cash crop cultivation that meets market demand

o Large and small animal raising

o Vegetable growing

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11..22 OOVVEERRVVIIEEWW OOFF TTRRAAIINNIINNGG SSTTAAGGEESS

The different stages in the training project are presented in figure 1. The first stage of the training program focused on preparation. During this stage, the market potential of the target villages was assessed. Small enterprise promotion institutions including the Provincial Agricultural and Forestry Office (PAFO), the District Agricultural and Forestry Office (DAFO) and the Provincial and District Commercial Offices were visited. During this time, RRA and PRA tools were applied and the training outline was designed.

This was followed by the second stage of the project - conducting participatory training workshops in five SPFS sites. The main purpose of this stage was to identify potential on- and off-farm diversification activities in the proposed areas, then to introduce and provide guidelines on key enterprise planning and management skills and to assist selected potential local entrepreneurs to develop action learning plans for applying skills and forming their own enterprises. Some PRA tools, such as village resources mapping, observation and other appropriate tools, were used in order to open villagers’ minds to the possible enterprises in their area.

Finally, in the third stage, there were multi-Stakeholder workshops organized in all three provinces at the provincial level. In the meeting all stakeholders who might be involved in the promotion of enterprises in the area were invited. The main intention of this was to allow the stakeholders to exchange their views on lessons learnt regarding business planning by local entrepreneurs, and identify the good practice of enterprise planning. One key output of this workshop was the identification of potential support and collaboration with local partners. Some IDOS (Institutional Development and Organizational Strengthening) tools were applied in this stage.

Figure 1: Overview of training stages

Preparation:market study, collaboration identification

Village enterprise planning and management

training

Multi-Stakeholder workshop

Training concepts

o Identifying market potential and gathering market information (demand and supply)

o Priority and policy support by government

o Identifying potential on- and off-farm diversification enterprises

o Introducing and providing guidelines on key enterprise planning and management skills

o Developing action-learning plans for applying skills

o Exchange view on lessons learnt o Good practices in enterprise

planning o Potential support and

collaboration with local partners

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1.2.1. Training Preparation

The following information was gathered from the preparation process in the three provinces, and was presented to the villagers / participants in order to serve as a reference for them in selecting their business ideas.

a. Oudomxay Province

Market Information In Oudomxay province there is an export market for industrial crops, such as corn, soybeans, peanuts, sugar cane, rubber, Non Timber Forestry Products (NTFP) and cattle. There is relatively high demand for these products in the Chinese and Thai markets. For instance, the Chinese demand for rubber is approximately 10,000 tons/day. Other crops, such as sugar cane and corn, have been exported to China for the past 2 – 3 years. Cattle have been exported to neighboring provinces, such as Luang Prabang, and Bokeo, from where they are further exported to Vientiane. There are some unofficial exports to Thailand. Nasenkham village, which is located in Xay district, has market potential within the district market itself. The village is located near the provincial town, and so may supply food products to the market in town. It is estimated that, in the town, there is a high demand for poultry, fish, vegetables, fruits, pigs and cattle. Every day there are 15 pigs and between 5 and 10 cows/buffalos supplied and processed in the slaughtering houses in town, but the quantity of pork and meat is still insufficient to meet consumer demand. There are also a growing number of restaurants (over 70), which need a regular food supply. Specifically, it was noted by the district authority that in the provincial town markets there is high demand for tomatoes, fish, lime and pineapples. These products are usually imported from Luang Prabang, China and Xiengkhouang. Nasenkham villagers can potentially produce these products as a substitute to their import.

Priority and policy support by the government As part of its poverty reduction policy, the Oudomxay provincial authority supports agricultural production, animal raising, business service provision and handicraft production. It does this through providing technical knowledge to villagers and mobilizing funding for support. Oudomxay province changed its strategy from encouraging and promoting the production of enough rice for the consumption of the province’s population to promoting higher productivity and a higher priced agricultural production. It also promotes the enriching of soil fertility. Rice production is promoted in the appropriate low-land areas only. The provincial authority promotes the production of crops, such as corns, peanuts, soybeans, as well as the production of rubber for export to China. Animal rearing, especially of cattle, is also promoted. The provincial authority provides technical assistance and support for farmers to grow fodder to ensure the high quality of animals raised.

b. Vientiane Province

Market Information There is good potential within Vientiane province for a regular demand for agricultural produce. There is also a high demand for rice from the Vientiane capital, as well as for other food products, such as vegetable and meat and fish, and the Beer Lao factory continues to demand rice. In terms of supply, Vientiane province also has production potential as it has low-land areas and fertile upland areas, which are suitable for rice, crops, and fruit tree production as well as for animal rearing.

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Priority and policy support by the government The province prioritizes the production of rice, corn, cabbage and fish, as these are the key products supplied by the province for the domestic market. In promoting these, the provincial authority emphasizes the use of sustainable seeds and the exploration of niche markets, such as organic production for the export market. The province also promotes the production of industrial crops, such as tree plantations, tamarind, banana, and the rearing of animals, such as cattle. The province has allocated the following crops to be produced in different districts:

• Rice is produced in Phonehong, Keo-Oudome, Thoulakhom and Xanakham • Corn is produced in Kasi, Vangvieng and Viengkham • Cabbage is produced in Kasi and Vangvieng • Fish is cultivated in Keo-Oudome. • Fruits, such as oranges, are produced in Vangvieng district

c. Bolikhamxay Province

Market Information Its location, on the border with Thailand and close to the Ventiane capital, means that Bolikhamxay province has a relatively large market for agricultural produce. It also has the potential to supply rice to the Beer Lao factory and to the consumer’s markets in Ventiane and other provinces. Furthermore, crops, such as soybean, can be sold to Thailand, and tobacco goes to Thailand and to the tobacco factory in Ventiane. There is a potential market for fish and cattle in Vientiane and Thailand.

Priority and policy support by the government The province predominantly promotes rice production, although other crops, such as eucalyptus and eagle wood, are also promoted. The province also wants to encourage villagers to raise big animals for export. Horticulture is another agricultural activity in which the province supports active villager involvement. However, there is not a large local demand for horticultural produce.

1.2.2. The Training Outline

The objectives for the participatory training workshop in the 5 SPFS sites were: o To identify potential on- and off-farm diversification enterprises

o To introduce and provide guidelines on key enterprise planning and management skill such as identifying markets and assessing market potential, developing business plans, analyzing profitability, likely costs and returns, determining the financing needed, and identifying and evaluating different sources of financing

o To develop action learning plans for applying skills

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In order to achieve the above mentioned objectives, the training outline was designed as follows:

DDAAYY OONNEE:: • Registration • Opening Ceremony • Name Game • Training rules • Course objectives and schedule • Village resource mapping • Village resource mapping (Future map) • Brainstorm business ideas and select the most potential business idea • Determine form of business (Individual Vs Group Enterprise • Introduction to Business Plan � Mini Market (know your customers and competitors) • Simple market research

DDAAYY TTWWOO

• Know the size of your market • Estimate your sales/sales pattern (Seasonality) • Steps in organizing (group) enterprise

- Decide who will do what? • Determine the equipment, materials and space you will need • Where will it come from • Costing your products or services

DDAAYY TTHHRREEEE

• Estimate total project costs • Sources of start-up capital • Assessing your current income sources • Economy pot and sale/income pattern • Make Financial plan • Profit and lost estimation • Preparation of business plans presentation • Assessing business plans and selecting three best plans

DDAAYY FFOOUURR

• Identification of three best business plans • Review and correct business plans • Preparation of action plans • Preparation of presentations of a business plan

The details of each session are summarized step-by-step below:

Step 1: Workshop registration In all five SPFS sites, the first day of participatory training workshop began with registration by the participants, followed by official opening remarks by the representatives from the National Agriculture and Forestry Extension Service (NAFES) and PAFO/DAFO.

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Step 2: Building rapport and introduction The next step was to build the rapport between the trainers and participants by using the “Name Game”. In this, the trainers brought cookies, allowing participants to have as many as they wanted. After this, each participant was asked to introduce themselves, including their personal life, their likes and dislikes, depending on how many cookies they chose. During the introduction the trainers informed participants that the more cookies they had, the more they should tell other participants about themselves. It was also used to illustrate that each participant had an equal chance to learn and acquire knowledge and experience from the course as they had an equal chance to get cookies. Therefore, the lesson was that opportunities for learning are equally provided, but how much the participants would get from them would depend on their commitment, intention to learn and involvement in the training activities.

Step 3: House rule and training objective Next, the trainers and participants agreed upon the common training rules, the course’s objectives and the three days training schedule.

Step 4: Village resource mapping In order to assess the village’s potential for on- and off-farm diversification, the training session - “village resource mapping” - took place in step four using Participatory Rural Appraisal (PRA) tools. The participants drew their own village resource maps by identifying the different type of resources available in the village, such as rice paddy fields, community forest lands, existing village facilities and problems faced by the community.

Step 5: Identify and analyze business ideas The trainers gave a short summary of the results of the initial market survey with concerned government organizations such as PAFO, DAFO, Commercial and Trading Offices and private companies. Next, in order to identify business ideas, bbrainstorming techniques were introduced to the participants. Then, a group exercise on brainstorming of business ideas took place. It was followed by an info-market 2 session in which the sheets of papers that contained all the business ideas were posted on the wall and each participant was asked to walk around and select some business ideas from which they could generate income based on their existing circumstances. Several screening tools to select business ideas were applied such as macro analysis, micro analysis and SWOT analysis. Figure 2, below, illustrates the business screening process through which individual participants identified the most realistic and viable business idea.

Figure 2: Business idea screening process

2 Info-Market—is the process of sharing business ideas among other participants, it means that, each group was asked to select possible business idea from other participants

Macro and micro screening: from 10 business idea select two potential business ideas

SWOT 1 to 2 business idea sand select most realistic and viable business idea

Viable business

idea

Alternative Business Idea

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Step 6: Determine form of business In this stage, participants were supported in determining the form in which they preferred to operate - individually or as a group enterprise. None of the participants opted for the group enterprise. The main reason for this was that they considered a private enterprise easier to manage. The participants did indicate, however, that they are ready to cooperate and often help each other in the production process.

Step 7: Introduction to business plan In this stage, the business planning process was introduced in a simple way using large flipcharts. The following major components of a business plan were explained: (i) Identification of target customers and potential buyers; (ii) Operation and management; (iii) Production planning and (iv) Financial management. A simplified business plan was tested and used during the training in order to access ethnic groups and people with lower education levels. The format used for developing the business plan is presented in the annexes. The experimental learning game - “Mini Market” - was integrated at this stage. During this game, the trainers assigned participants to sell something to customers (the trainers), and to try to make as much profit as they could. They were allowed to bring their products from home. Through this game, participants learned that they need to study their customers and competitors, and their needs and expectations regarding the products (why do they buy and how much do they buy per annum). By the end of this exercise trainers added some tips on simple market research and encouraged each participant to get information before preparing their business plan.

Step 8: Estimate your sales/sales pattern (seasonality) Here, participants were requested to identify their potential buyers or customers and estimate their market size and their annual sales, taking into account the seasonality. For this, a sales estimation sheet was used.

Step 9: Steps in organizing (group) enterprise In this part, participants decided who will do what in the business. The enterprises that the villagers selected were small-scale and family-based. Therefore, there was no need to plan the operational and management system as such. During this stage, the participants identified the form of business, the owner/manager, labor needed, indicated wages and the need for an official license.

Step 10: Production planning Based on the anticipated annual sales from step 8, each participant planned for the required equipment, materials and space for the enterprise. Each participant determined the raw materials needed for the production process and where to obtain them. Finally, each participant identified the cost for a particular product or service. In this regard, the trainer provided instruction on how to set the price of a product, depending on four main factors illustrated in the pricing chart in figure 3 below.

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Figure 3: Price setting strategy

Step 11: Financial planning and management Day 3 of the program focused on financial planning and management. Each participant calculated and estimated his/her total costs including the cost of investing in assets and working capital. It was the first time for the participants to consider depreciation costs. The trainers provided a simple form for calculating depreciation and other expenses for business. Furthermore, the participants assessed the resources for start-up capital. They had to make a decision on where they would get the needed capital - how much would be their own contribution and how much they would have to borrow from the bank or relatives. Where participants chose to borrow from the bank or from relatives, they were taught how to calculate interest. The participants estimated their potential profit and loss and learned how much they could earn from their proposed business as well as being shown how to calculate the return on investment (ROI). Finally, looking at the results of ROI calculation, the participants discussed how to increase their profits by carefully looking at their costs - direct and indirect. At the end of the 3-day training in each of the 5 villages, the three best business plans were selected. These plans were further developed on day 4 in a participatory business plan action workshop for the 15 enterprises. The objectives of the workshop were to:

o Develop “real world’ enterprise plans that can be implemented by participants following the training cum planning;

o Build enterprise planning skills of village participants and related support capacity of provincial/district staff

The criteria for selecting business plans were: (i) Customers and competitors; (ii) Enterprise form including operation and management; (iii) Production planning, (iv) Financial planning including profit & lost and return on investment (ROI). The trainers, together with the representative from NAFES and the trainers from the PAFO and DAFO, assessed and selected the plans. In the workshop, the trainers guided and allowed entrepreneurs to improve and correct their business plans and to identify their support needs. After this, the participants prepared the presentation of their business plans and learned some presentation techniques.

Demand

Unit cost

Price sensitivity

Competitor’s price Selling price

Fundamental price

Ceiling price

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1.2.3. Venue and Timing

The training courses were conducted in village meeting places and in temples. The village "business planning and management skills" training was accomplished within three days, undertaken from 08:30 AM to12:00 AM and 13:30 PM to 16:30 PM, with a one and a half hour lunch break in between and with a fifteen-minute coffee break in both the morning and afternoon sessions.

1.2.4. Selected participants

There were approximately 30 participants per training course. The participants included up to 28 villagers per workshop plus district trainers. The district trainers in some sites, for instance in Kasi and Hinheup, could not join the training course the whole time. It was agreed, in the Terms of Reference and during the first preparation meeting with FAO, that there at least 30 % of participants should be female. This target was realized and, in one village, 61% of the participants were female. Participants included village authorities, representatives of production groups, representatives of the better-off, medium and poor households (please see annex for a full list of participants). A summary of selected participants is presented in table 3 and 4.

Table 3: Summary of selected participants in five SPFS sites

SPFS sites Total participants

Number of Villagers

Women % District trainer

Nasenkham 29 26 8 31% 3

Phiengdy Khonekeo Phonsavath

29 26 12 46% 3

Sisangvone 30 28 10 33% 2

Phonekham 28 25 13 52% 3

Kouay Hinlath

26 23 14 61% 3

Grand Total 142 128 57 45% 14

Table 4: Summary of selected participants who attended business plan action workshop

SPFS sites Total

participants Number of Villagers

Women % District trainer

Nasenkham 7 5 1 20 % 2

Phiengdy Khonekeo Phonsavath

4 4 1 25 % 0

Sisangvone 2 2 1 50 % 0

Phonekham 6 4 4 100 % 1

Kouay Hinlath

2 2 0 0% 0

Grand Total 21 17 7 % 3

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11..33 MMEETTHHOODDOOLLOOGGYY AANNDD AAPPPPRROOAACCHHEESS UUSSEEDD

The key principle is “learning by doing”, with interactive and people-centered methods, such as PRA tools, dialogue, presentation, group work, and simulation games, used during the training events in order to facilitate and maximize learning. An overview of the methodology is presented below.

Self introductions o Introduction and application of PRA tools (resource mapping, wealth ranking, market chain

mapping or other as appropriate) in order to identify potential diversification activities and problem faced by poorer members of the community in enterprise diversification

o Combination of lectures, role playing, group discussion and simulation games to introduce, explain and increase understanding of enterprise planning and management skills

o Villagers identified key enterprises they wanted to develop or strengthen, were divided into small groups according to interests, and were assisted in developing an action plan.

11..44 OOUUTTCCOOMMEE OOFF PPAARRTTIICCIIPPAATTOORRYY AACCTTIIVVIITTIIEESS

Village resources mapping The village resource maps are presented in the annexes. Table 5 presents the availability of different resources in 5 SPSF sites. It helped villagers to identify the potential for business development in their particular area.

Table 5: Village resource mapping in 5 SPSF sites

SPFS sites Agriculture land

Forest land Water resources

Grazing land

Other resources

Nasenkham, Xay district, Oudomxay province

- Sloping agricultural land

- Some rice paddy field available in village;

- 27.60 ha of shifting cultivation land

- Good soil suitable for agriculture production

- village forest using land

- there are not many NTFP species available in the forest

- Huay Katoi stream used as main source of irrigated water

- Quite limited grazing land for large animal raising

- Availability of seasonal labor

Phiengdy, Khonekeo and Phonsavath, Hinheup district, Vientiane Province

- There is a lot of flat land that is utilized for low-land paddy

- Some home gardens

- Cash can be produced seasonally

- A lot of forest land is utilized for sources of NTFP and industrial tree plantation;

- Sources of timber for housing;

- Construction of the small irrigation system just completed

- Villagers used to grow their home gardens along the stream for family consumption only

- Very large area of grazing land, but little grass during dry season, if villagers wish to form of livestock farms, an irrigation system is needed;

- Seasonal labor in town near the villages

Sisangvone, Kasi district, Vientiane Province

- There is 36 ha seasonal rice paddy;

- Some home gardens ;

- There is 34.2 ha of fruit tree plantation

- NTFP is one of main sources of income for the villagers

- there is an irrigation scheme from SPFS project;

- Nam Lik is a vital sources of water for agricultural proposes in village;

- There is a large area of grazing land for livestock raising propose;

- Off-farm wage is one of invisible village‘s resources

- - - - -

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SPFS sites Agriculture land

Forest land Water resources

Grazing land

Other resources

Phonekham, Bolikhanh district, Bolikhamxay province

- There is a large area of lowland paddy land around 190 ha

- There is some seasonal land for cash crop production;

- Availability of forest land, which villagers use for fire wood, fencing and wild vegetable for consumption;

- irrigation scheme just completely constructed;

- main sources of water come from Nam San River;

- Availability of grazing land for livestock raising propose, but it needs quit big investment on fencing;

- Off-farm wage is one main village‘s source of income;

Kouay Hinlath, Paksan district, Bolikhamxay province

- There is largest low-land paddy land in SPSF site - about 206.4 ha

- Some seasonal land for cash crop production;

- some cash crops such as maize, beans starchy roots and other vegetable grow on wet land areas and river bank;

- Availability of forest land, which villagers use for fire wood, fencing and NTFP

- SPSF project just supported constructing an irrigation scheme with irrigated area 143 ha;

- Villagers utilize their lowland paddy for seasonal livestock raising

- Off-farm wage is village‘s main source of income;

Business idea identification and analysis Participants used the resource map and the provided market information to generate business ideas. Table 6 presents the business ideas generated in 5 SPSF sites, which, among others, relate to cash crop production, seasonal crop, livestock and fishery, fruit trees and some industrial tree plantation. The main criteria used during the screening of business ideas were:

(i) Market potential; (ii) Easy access to and availability of raw materials; (iii) Skills and know-how for producing particular product; (iv) Resources available; (v) Supportive policy by government and other criteria.

After the screening process, each participant selected the most viable and realistic business idea, which was further developed in the business plan.

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Table 6: Summary of brainstorming on business ideas

Cash crops Seasonal crops

Animal raising and

fishery

Fruit tree/ industrial

tree plantation

Handicraft and weaving

Other

- Soybean - Peanut - Cucumber - Chilly - Garlic - Vegetable - Eggplant - Taro - Pumpkin - Other

- Job’s tear - Maize - Pineapple - Banana - Papaya - Cassava - Sesame - Water melon - Rice - other

- Buffalo - Cattle - Pig - Poultry: duck,

turkey, chicken

- Fish - Frog - Dog - other

- Orange - Lemon - Jackfruit - Peach - Guava - Mango - Eagle wood - Rubber - Rattan - Mulberry

Paper…

- Rattan handicraft

- Weaving (Hmong style)

- Wooden chair, table

- Bamboo basket

- Sewing - other

- Bamboo can - Mushroom - Fire wood - Home

industry - NTFP - Wild

vegetable - Other

Business Planning

Market potential The target buyers or potential customers as identified by the participants are presented in table 7.

Table 7: Market potential in five selected SPSF sites

SPFS sites Customers Competitors Marketing strategy

Nasenkham, Xay district, Oudomxay province

- The market in Xay district - far away from the villagers about 5 km;

- Competitors from Namback district and their neighboring villages;

- Produce products that can be sold during Hmong new year with high price

- Giving free additional product to clients when they buy big volume

Phiengdy, Khonekeo and Phonsavath, Hinheup district, Vientiane Province

- Few traders from Ban Houy Hintid village (neighboring village)

- Traders from Phonhong district

- Phonehong and Hinheup market

- There are no serious competitors so far

- Some competitors in their neighboring villages

- Using mouth-to-mouth promotion

Sisangvone, Kasi district, Vientiane Province

- Military camp nearby; - The traders from Kasi,

Vangvieng, districts, Luangprabang and VTE



- Giving free additional product to clients when they buy in big volume

Phonekham, Bolikhanh district, Bolikhamxay province

- Muang Kao market - Trader/middle men from

Paksan district - Tobacco factory from

Vientiane Capital



- Using mouth-to-mouth promotion and advertisement strategy

Kouay Hinlath, Paksan district, Bolikhamxay province

- Merchant from Paksan and Vientiane Capital

- Paksan market

- Understood that there are some competitors in their neighboring village

- Giving free additional product to clients when they buy in big volume

It was observed that villagers spend little of their investments in marketing strategies and, in most cases, they use word-of-mouth promotion. There is an interesting case in Nasenkham village (Hmong ethnic), Xay district, Oudomxay province, where Mr. Sengko (fruit tree plantation business) planned to give fruit (especially oranges) for free to his target customers for marketing purposes. Sales estimations in all five SPFS sites are mainly dependent on skill, know-how, capital or own resources including labor and the market.

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Production Based on annual sales, each participant planned for their production. They estimated the requirement of materials including: (i) Required raw materials (ii) Other tools and equipments to be used during production; (iii) Labor costs and (iv) Other indirect costs of production. In all cases it was found that villagers spent almost all their money on buying raw materials and very little on labor. Interestingly, wage -labor was more common among the Hmong ethnic group than other groups.

Financial potential It was observed that villagers invest most of their money in working capital, rather than in assets. For many participants this stage was difficult as it was the first time for them to make financial calculations. Hmong participants, especially women, had more difficulties (compared to other groups) in business planning due to the language barrier. Almost all villagers had difficulties in calculating the depreciation of their invested assets. On average, more than 60% of participants applied for a loan, needed for investing in working capital. It was also the first time for participants to calculate the return on investment (ROI) and most found this difficult. The ROI of the vegetable business is the highest compared to other business.

11..55 SSUUPPPPOORRTT NNEEEEDDSS

Before organizing the stakeholder workshop, the trainers and the representative from NAFES and the trainers from the PAFO and DAFO identified the support needed by villagers for the implementation of the business plans. The main support needs are:

o Technical training including new extension of agricultural and forestry production soil improvement and some appropriate technology;

o Business development services; o Micro finance services including saving and credit; o Marketing and business management training, including training on pricing and simple

business survey approach; o Market information service

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CCHHAAPPTTEERR 22:: BBUUSSIINNEESSSS PPLLAANNSS OOFF AACCTTIIOONN FFOORR 1155 VVIILLLLAAGGEE LLEEVVEELL EENNTTEERRPPRRIISSEESS

Out of 128 business plans prepared by the villagers in the 5 SPFS locations, fifteen plans were selected for further development and implementation. The selection was done by the team and based on several criteria: product/service description, customer and competitor identification, marketing strategy, calculation of total investment, calculation of profit and loss and ROI, and other strategies.

22..11 MMAARRKKEETT OOUUTTLLEETTSS

The selected business plans have relatively good marketing strategies. For the most part, they plan to sell in the district market nearby and to traders coming to their villages. Oudomxay. Business plan owners in Nasenkham village, in Oudomxay, have different distribution approaches and marketing strategies according to their products. Industrial crops can be sold to traders who can either be middlemen or export companies from the provincial town. Due to the high demand for these products, the export company would provide seeds to the villagers and buy the products from them during the harvest season. Nasenkham is in a relatively advantageous position in terms of location and transportation, as it is close to the provincial town and has a good access road, which is easy for traders to use to travel to the villages. The marketing strategy that the plan owners will employ is to focus on the quality of the products, i.e. the corn and job’s tears should be dry and clean and not contaminated with stones or sand. Chicken and pig raising enterprises target the local market – Oudomxay provincial town. As mentioned earlier, local demand for chickens and pigs is relatively high. Enterprises can benefit from their location. The chicken-raising plan owner specified that there is a good relationship with traders/merchants in the market who regularly order chicken from him. Pigs can easily be supplied to the slaughter house in town. The plan owners will use similar marketing strategies, focusing on raising quality chickens and pigs, particularly the Hmong breed, which is in high demand from consumers in town. The fruit plantation enterprise in Oudomxay aims to sell in the local market, substituting imports from other provinces, such as Luang Prabang, and China. The plan owner has, in fact, succeeded in winning his customers’ hearts over the last two years. During the fruit seasons he will have his own stand in the market, selling fruits. He plans to use the same strategy of giving fruit to customers to taste for free to attract new customers. Discounts for customers who buy a lot will be another strategy that he will employ. Another strategy is a quality guarantee, especially regarding the freshness of the fruits. In order to do this, he plans to open his fruit garden so customers can directly buy the produce. However, there were concerns from stakeholders about the size of the local market, which is rather small and there is strong competition. Thus, there was a suggestion to export to markets in neighboring provinces, such as Luang Prabang, and to Vientiane. Vientiane province Enterprise planners from Vientiane province have mostly targeted the local market. Owners of chicken and pig-raising plans from Sisangvone village, Kasi district, target the military camp next to the village. The demand from the camp is relatively high. Traders from Kasi districts are also target customers. Similarly, chicken and pig enterprise plan owners in Hinheup district target the military camp nearby as well as traders from Houay Hintid village. Apparently, all enterprise plan owners from Vientiane province mostly target the traders, who come to buy from their villages and further supply district markets or sometimes markets in the Vientiane capital. These village enterprises have access to big markets in Luang Prabang and Vientiane.

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Bolikhamxay Business plan owners from Khouay Hinlath village also target local markets, including the Bolikhan district market and the Paksan district market. The vegetable enterprise owner has his own temporary stand in the market, generally open early in the morning. He also has regular customers who have vegetable stands in the market. In order to be able to compete with others, he will ensure the quality of his vegetables and emphasize less pesticide usage. Additionally, good planning of planting time means he could avoid planting at the same time as others and ensure that he will get a good price at market. The fish-raising enterprise similarly targets the local market. The enterprise intends to keep its size small, due to strong competition. In fact the enterprise owner targets friends and acquaintances in his area and some traders in the market. The pig-raising business aims to supply traders from Paksan market as well as traders from the Vientiane capital. So far, the demand from traders is still relatively high, though competition in the area is quite high. In fact, the enterprise owner did not specify a specific marketing strategy for competing, but was sure of the demand from traders and his good relationship with them. In Phonekham village, the pig enterprise owner was also confident of a high demand for local breed pigs which she raises in the local market. It was interesting to observe that the trend of hybrid pig-farming is growing. Therefore the hybrid pig supply is high, yet local people prefer local breed pigs.

22..22 TTEECCHHNNOOLLOOGGIIEESS ((IINNPPUUTTSS AANNDD EEQQUUIIPPMMEENNTTSS))

Most villagers who attended this participatory business training course use basic and simple agricultural inputs for their production (see also table 8).

Table 8 : Tools and equipment used by the participants

Planned Business

Proposed Technology to

be used

Required Agricultural Input (Tools and

equipment)

Consideration for Technology used

Large livestock raising � making fence � searching for young

animal � injection vaccine for

two times over the year;

� barbed wire � wooden and concrete

poles � labor � vaccine and � injection tools

� high breed of livestock raising � grazing land improvement

using high quality seeds (forage improvement)

� modern animal house for using its manure afterwards

Pig raising � making pig house � searching for piglets � injection vaccine for

two time over the year;

� simple house with thatching roof

� pig feed; � labor � vaccine and � injection tools

� using high breed piglet � ensure high quality of pig and

hygienic pig � pig raising in proportion to pig

breeding � pig raising with growing and

storing for pig feed Poultry raising � chicken house

� searching for chick � vaccination two time

a years

� simple chicken house with thatching roof

� chicken feed; � labor � vaccine and � injection tools

� using market demand chicken � chicken raising in proportion

with breeding � chicken raising with growing

and storing for chicken feed

Vegetable growing business

� site preparation � soil ploughing � seed sowing � planting � watering and

fertilize � harvesting and sale

to market

� simple fence with some barbed wire

� seed (lettuce and other) � fertilizers � ploughing tools � watering tools

� using high demand vegetable seeds

� utilize more technology and modern tools likes water pump

� using biological vegetable growing

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22..33 CCOOSSTT AANNDD RREETTUURRNNSS

As already mentioned, most participants invested in fixed assets, including tools and equipment, rather than in running capital. Almost nothing was invested in labour and modern technology. For example, in the vegetable growing business, they invested quite little on running capital, especially on seeds and other agricultural inputs such as fertilizers, pesticides and others. In almost all the business plans, participants planned to use their own labour for free. This partly explains the high return on investments of the business plans. It was observed that almost all participants had difficulty in the calculation of ROI, because it was the first time for them to come up with such calculations. The formula used during the participatory business planning training was: The format used for the development of the business plan is presented in the annexes as well as a summary of the 15 selected business plans.

22..44 FFIINNAANNCCIINNGG NNEEEEDDEEDD

Most villagers invested their money in both: (i) Fixed assets and (ii) Working capital. However, they preferred borrowing money from the bank to invest in working capital rather than fixed assets. On average, more than 60 percent of participants applied for a loan and they really need such loans for investing in running capital. The amounts needed from external financing vary from Kip 200,000 (US$19.10) to Kip 20,242,000,.(US$1938.00) The Agricultural Promotion Bank was considered the main source of financing.

ROI =

Profit

Total Project Cost

X 100

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CCHHAAPPTTEERR 33:: SSTTAAKKEEHHOOLLDDEERRSS MMEEEETTIINNGG

33..11 IINNTTRROODDUUCCTTIIOONN AANNDD OOVVEERRVVIIEEWW

The multi-stake holder meeting was organized after the participatory training and business action planning workshops were finished. It was organized at the provincial level, and had three main objectives:

(i) To report on business plans developed during the participatory learning; (ii) To exchange views on lessons learnt and good practices identified during the

participatory learning and (iii) To identify means of public-private-village collaboration for enhancing village

enterprise development.

Preparation

The preparation for the multi-stakeholder meeting was done during the preparation trip, prior to the actual enterprise planning training in the villages. The team discussed potential participants with the director of PAFO. Then it was decided which organizations to invite. The SPFS provincial coordinator was responsible for preparing official invitations and for sending them to potential participants.

Outline

To achieve the objectives of this workshop, the schedule was initially designed with four main sessions: (i) Business Plan, where the business plans would be presented and discussed; (ii) Good Practices, where good practices would be shared and discussed and the

coverage matrix developed; (iii) Market Place, in which consultation between business plan owners and stakeholders

would take place and (iv) Enabling Environment, where factors regarding business development at the village

level would be identified and an action plan for further support would be developed. However, during the implementation, due to time constraints and taking the local situation into account, the schedule was revised. The workshops followed the format below::

• Registration • Opening Ceremony • Presentation of the summary of the business plan followed by discussion • Lessons learnt on good practices for enterprise planning and implementation • Who is doing what in supporting business development at the village level • What are the issues in terms of business development at the village level • Wrap up • Closing Ceremony

Venue and Timing

The multi-stakeholders meeting in Oudomxay and Bolikhamxay were organized in the meeting hall of PAFO, while in Vientiane province it was organized in the meeting room of the Thalad EDL (Electricite du Laos) campus.

The workshop went for one full day. It started from 08:00 AM to12:00 AM and 13:30 PM to 16:30 PM with fifteen-minute coffee breaks in both the morning and afternoon sessions.

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Participants

The number of participants varied from 25 to 31 participants. They included the villagers who developed the business plans; village authorities; district trainers; head or deputy head of DAFO; SPFS provincial project coordinators; technical staff from PAFO; the directors of PAFO; representatives of relevant departments, such as the department of commerce, the department of planning and cooperation, the department of industry and handicraft, the Lao Women’s Union, donor-supported projects, NGOs working in the area, and some large private businesses.

Methodology

The facilitators focused on involving all participants from the different levels: provincial, district and village. As well as presentations and a plenary discussion, the facilitators used analysis tools, such as a coverage matrix and factogram. These tools were introduced by facilitators and used in the group work by participants.

33..22 LLEESSSSOONNSS LLEEAARRNNTT OONN GGOOOODD PPRRAACCTTIICCEESS FFOORR EENNTTEERRPPRRIISSEE PPLLAANNNNIINNGG

It was generally acknowledged that enterprise planning and development is new for villagers and district staff in the SPFS target sites. Many stakeholders at the district and provincial level appreciated that villagers need support in these areas. In fact, so far, enterprise planning is carried out by large enterprises who usually submit their business plans to the concerned departments or to the banks for official approval, licenses or loans. In the past, most support focused on providing technical advice in the areas of production techniques or providing inputs, such as material and financial inputs to villagers. In the SPFS sites, this training was the first time villagers and district staff/trainers were exposed to entrepreneurship and enterprise planning activities. In the multi-stake holder meetings there was a session in which stakeholders commented and discussed the business plans which were presented and exchanged experiences on enterprise planning and promotion. The comments focused on: o The importance of market potential and stability of the demand for products o A need to demonstrate, in the business plans, the previous experience of the owner,

highlighting financial successes. o The need to consider support to organizing group enterprises. o For agricultural production business, the owners should consider integrating post harvest

processing and environmental issues such as soil degradation. o In preparing business plans, the village entrepreneurs should consider all costs including

labor costs. It was observed that villagers/agricultural producers lack knowledge about market situation and trends. They mostly focus on production, but not on customer’s demand or competitors. Therefore, it was recommended by stakeholders that villagers/entrepreneurs should focus more on the marketing side of their agricultural production activities. They should be able to observe trends in market prices of agricultural produce, as well as trends in competition, so that they can plan accordingly and are able to reduce risks. Villagers could be more pro-active in obtaining market information from different sources, such as from traders and relevant departments, in particular the department of commerce, at both district and provincial level. At the same time, the district departments, especially the commerce office should work more closely with villagers by providing market information and facilitating local level trading. So far, the district commerce departments have not worked at village level, but mainly focused on the district level.

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In addition to exchanging comments on business plans, the participants discussed areas of interventions by stakeholders in terms of enterprise development. In general, government interventions involved attempts to regulate small enterprises, the organization of enterprise groups or associations, the provision of training on enterprise management to limited number of small entrepreneurs, and the provision of funds, technical training and technical inputs. Donor-supported projects and the provincial government were able to link producers to buyers to a certain extent. Table 8 Enterprise planning and management interventions

Oudomxay province

Vientiane province

Bolikhamxay province

� Provide technical training � Provide fund � Develop infrastructure � Provide technical inputs: seeds,

techniques and technology � Financial analysis training

(potential) � Link with buyers and export

market � Assist in arrangement contract

farming (rubber plantation, corn, soybean production, sugar cane plantation)

� Incentives for export agricultural produce

� Provide technical training � Provide fund � Develop infrastructure � Provide technical inputs: seeds,

techniques and technology

� Regulations � Organization of group/

association (pig and fish raising)

� Assist the group with production planning and selling schedule (fish raising)

� Connect producers to buyers � Provide funding � Provide technical training � Provide technical inputs:

seeds, techniques and technology

� Develop infrastructure � Provide business management

training Oudomxay. There have not been that many best practices regarding enterprise planning and promotion. Oudomxay is one of the poorest and most mountainous provinces and the economy still depends heavily on upland agricultural production and shifting cultivation. So far there are several organizations, such as the Lao Women’s Union, the Agricultural Promotion Bank, and some INGOs working here, as well as projects that support income-generation activities at the village level, by providing small loans, revolving funds and some other technical inputs. However, these forms of support were generally not considered to be very sustainable. Recently, the local government has been able to link producers to buyers, for instance for rubber and some industrial crops. However, villagers are not prepared in terms of negotiation or selling skills to enter into such contract farming arrangements. As such, they are likely to be in a disadvantaged position. Vientiane province: Similarly, in this province a lot of technical assistance on production was provided. Yet there has not been any organization that supports enterprise planning and development.. Bolikhamxay: In Bolikhamxay, there has been some support for enterprise development at the village level. In addition to technical assistance on production, some organizations in Bolikhamxay support building linkages between the villagers/producers and buyers. The project, supported by the Luxembourg government, helped to bring a Thai trader, interested in purchasing soybean, into contract farming arrangements with the target villagers. The project, in this case, assisted in the first phase by providing production inputs. Later, the project and local government will assist with contractual arrangements. The provincial department helped fish and pig-raising enterprises to organize groups and regulated these groups so as to facilitate the input purchasing process. At the same time, the department facilitates a business dialogue among the groups in planning their production and selling schedule, in order to reduce competition and cases of dramatic price drops.

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33..33 PPOOTTEENNTTIIAALL AARREEAASS OOFF SSUUPPPPOORRTT AANNDD CCOOLLLLAABBOORRAATTIIOONN BBYY LLOOCCAALL PPRROOJJEECCTT PPAARRTTNNEERRSS

During the workshop there were several areas of enterprise promotion discussed:

• Input provision • Technical training • Marketing information • Financial support • Research & Development • Business Development Services • Promotion policy

These areas were discussed during the workshop, using the “coverage matrix” tool. During this mapping exercise, the participants analyzed which organization is involved in which service, including their degree of involvement. There are 14 organizations or stakeholders involved and the results of the exercises are presented in annex 5. Some observations on the results of the coverage matrix and discussion about it are presented below. First, there were different perspectives as to the extent to which each organization was involved in enterprise development activities at the village level. At the provincial level, organizations perceived that they have been providing many services and are involved in many services to a large extent. There is an annual meeting of all departments at the provincial level where departments share their achievements and discuss key issues. At the district and village level, on the other hand, there is low level of awareness about services provided by the organizations at the provincial level. It seems that at the district level the staff of one office do not know much about another office’s activities or about activities at the provincial level, especially those in different technical fields. People at the village level are often not even aware of the services provided at the district level. In general, they know about the services and activities provided directly to them at the village level mostly by the project, especially the SPFS project, which is known as the FAO project. In fact they did not even realize that the ‘FAO’ project is implemented under PAFO, NAFES or Ministry of Agriculture and Forestry. Therefore it seems that the exchange of information between the levels is inadequate. There are many organizations involved in providing technical training and R&D. All stakeholders were requested to consider this overlap and coordinate among themselves. However, during the discussion it was commented that, although the technical training was provided by many different stakeholders, they focused on different target areas. Many organizations claimed to be involved in R&D. However, the results of these activities are not disseminated widely or shared. Finally, business services, including market linkages, are provided by few organizations. For the most part, the services relating to enterprise promotion are provided by the department of trade and the department of industry and handicraft, yet these services are still not available in any of the three provinces. In Vientiane province and Bolikhamxay, there are some business management courses provided by the department of industry and handicraft and some market information is provided by the trade department, but mostly at the provincial level.

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33..44 FFOOLLLLOOWW UUPP AACCTTIIOONN TTOO IIMMPPLLEEMMEENNTT BBUUSSIINNEESSSS PPLLAANNSS

All stake-holders expressed their interest in supporting the implementation of the presented business plans. In Oudomxay there was an action plan developed, but there were few activities identified and all the activities are to be implemented at the village level. Many stakeholders indicated they have, or should have, a role in village enterprise promotion. But in identifying future support, the focus was on SPFS/FAO and the district trainers who work closely with villagers. There was discussion about how the village needs would be met in the future. The results of the discussion are presented in table 9.

• Technical training should continue to be provided by PAFO and DAFO, the Vientiane – Haiyeuang cooperation center and the Lao Women’s Union. These organizations have expertise and a wide network at both district and village level. It was further suggested that, while the center can provide training at the provincial level, DAFO and LWU are better positioned to provide training at village level using their existing networks.

• In terms of inputs, techniques and technology supply, it was suggested that these should

be provided by agriculture and forestry sector companies. PAFO and DAFO might have limited budgets but can play a coordinating role and /or can provide information and advice about the source of the mentioned supply.

• The commerce sector, including the department of commerce at the provincial level and

the commerce office at the district level, should be responsible for disseminating marketing information and providing some kind of BDS. Market information should be streamlined from provincial departments of commerce to district commerce offices and down to the villagers. On the other hand, once the information is available at the district level, the villagers should also try to acquire information from the district for their own benefit. Traders and middlemen at the district level play an important role in the dissemination of market information. It is they who currently inform villagers about market demand. They collect products from villagers to sell in the district or provincial markets. However, they often have limited capital and skills in enterprise planning and management. Therefore, it is suggested that in the future, these traders should be trained and given financial support.

• In terms of financial support, it was suggested that the banks and projects continue to

support villagers. In this case, the bank (APB) also suggested that villagers should continue to create and adjust their enterprise plan and approach the bank for loans.

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Table 9: Action plan for further support enterprises at the village level

Village’s needs

Supporters Cooperation and collaboration

methods

Other suggestions

Technical training

- Agriculture – Forestry Sector - Vientiane-Hai Yeuang cooperation

center - Lao Women Union

Villagers ask market information from commerce office

Inputs supply

- Agriculture – Forestry Sector - Companies

Villagers can ask for funding from Industry and Handicraft sector for small industrial production or handicraft production

Techniques and technology supply

- Agriculture – Forestry Sector - Vientiane-Hai Yeuang cooperation

center

Villagers should contact concerned departments

Marketing information provision

- Department of commerce - District commerce office - Traders/middle persons - Villagers/producers

Promote traders/middle persons in terms of finance and knowledge about enterprise planning and management

Fund from external donors is needed

BDS

- Bank - Commerce sector

Enterprises register and ask for support from Commerce sector

Financial support

- Projects and concerned departments

- Banks

Villagers continue to make business plan and submit to the bank for loan

Villagers continue to learn about bank loan regulations

��

_________________________________________________________________________________________

- 30 -

CCHHAAPPTTEERR 44:: LLIIVVEELLIIHHOOOODD DDIIVVEERRSSIIFFIICCAATTIIOONN AANNDD EENNTTEERRPPRRIISSEESS DDEEVVEELLOOPPMMEENNTT

LLEESSSSOONNSS

44..11 AAPPPPRRAAIISSAALL OOFF PPAARRTTIICCIIPPAATTOORRYY LLEEAARRNNIINNGG AANNDD OOUUTTCCOOMMEESS

In the villages, there is a high level of illiteracy among the elderly and the Hmong ethnic group. As such, the training contents and teaching methodology for participatory business planning will be further developed using pictograms, multi media and short story videos about successful entrepreneurs. The trainers involved in training design and implementation should have an initial site visit and learn more about the target villagers and business opportunities beforehand as this would benefit the training. Most business plans were based on what villagers were already doing. Villagers need to be supported in identifying new opportunities, especially through the provision of market information and the facilitation of linkages between sellers and buyers. They also need to be made aware of the various support services available. A simple market study approach for the farmers should be further developed.

The approach to selecting local individual and group enterprise members to attend the participatory enterprise planning training should be further developed. There are some criteria, which should be taken into consideration:

(i) Willingness, confidence, and enthusiasm

(ii) Entrepreneurial characteristic;

(iii) Capacity and personal goal and vision for being self reliant; etc.

Some of the key participants were selected because of their position (village head) and they did not participate full-time throughout the training program.

Potential local business development service providers or local entrepreneurs who are interested in providing services must be identified and included in this training. This will facilitate business to business linkages and follow up support for the business plans.

An introduction to the concept of self-help group formation and the management or formation of local enterprise association networks should take place. In addition, the concept of an agriculture and forestry enterprise franchise approach should be introduced to the target villagers.

44..22 AAPPPPRRAAIISSAALL OOFF PPAARRTTIICCIIPPAATTOORRYY WWOORRKKSSHHOOPP AANNDD OOUUTTCCOOMMEESS

Participants in the multi-stakeholder workshop focused on providing critical feedback and suggestions for the improvement of village business plans. Although stakeholders showed interest in supporting follow-up, little commitment could be secured. Traders and private companies, who could become alternative or potential future buyers for particular agricultural products, should be invited. This allows the development of further linkages between buyers and sellers.

The representative from the local Agricultural Promotion Bank (APB), who was invited by the workshop organizers, should have a chance to present the bank’s policy and terms of lending to the participants. Moreover, local loan providers (both semi-formal and non-formal should be involved in the workshop, so that linkages with these financial service providers are created.

��

- 31 -

44..33 GGAAPPSS AANNDD AARREEAASS OOFF FFUURRTTHHEERR AASSSSIISSTTAANNCCEE

There is a need for further assistance and the building of local skills and support services for enterprise planning and development.

An agriculture and forest product market survey must be conducted as early as possible. This would allow all stakeholders to better understand the actual domestic, local and international market for local produce, as well as providing a list of potential buyers for these products.

Before beginning the training program for potential entrepreneurs, a short business awareness workshop should be organized. At the end of the workshop participants for the business development workshop could be selected.

In order to sustain the process of business planning and development in the project’s area, selection and strengthening of potential Local Service Agents need to take place. The Local Service Agents will be representatives of individual farmers and production groups and will play an important role in doing business with those and other farmers as well as groups providing marketing services, technology, skill and agriculture and forest input supply.

After electing the right participants (including individual farmers, production groups and Local Service Agents) the training on enterprise planning and development will take place. The market survey results and demand information will be used in this stage.

Next, it is time contact selected buyers and invite them to join the stakeholder workshop. It was found that most representatives from the private companies could not stay the whole day of the workshop, due to time constraints. The trainers suggested that a first half-day workshop should be organized for a buyers-sellers meeting. The other half of the day could be allocated for other stakeholders or service providers (PAFO, DAFO, Bank and others).

��

_________________________________________________________________________________________

- 32 -

AANNNNEEXXEESS

Annex 1: List of participants Annex 2: Village Resource Map Annex 3: Multi-stakeholder meeting schedule Annex 4: List of participants at multi-stakeholder meeting Annex 5: Results of coverage matrix Annex 6: Summary of 15 business plans Annex 7: Result of participatory enterprises planning training (evaluation) Annex 8: Final version of business plan

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- 33 -

Annex 1

List of participants in the participatory training workshops Nasenkham Village No. NNAAMMEE Responsible Current income-

generating activity Business ideas

1 Ms Noy Villager Onion growing Job’s tear Corn

2 Ms Khamlar Villager Job’s tear Job’s tear

3 Ms Deng Villager Onion growing Job’s tear Corn

4 Ms Nivone Villager Onion growing Job’s tear Corn

5 Ms Dear Villager Job’s tear Pig-raising

6 Mr Seng Ko Villager Pineapples Oranges Chicken-rearing

Orange Chicken-rearing

7 Mr Po Veu Deputy chief of the village

Job’s tear Fruit trees

8 Mr Bounheuag Villager Job’s tear Job’s tear

9 Mr Veu Ly Xay Por Village chief Pig-rearing Pig-rearing

10 Ms Koua Villager Ginger planting Ginger planting

11 Mr Sie Ly Va Villager Job’s tear Job’s tear

12 Mr Tu Yey Villager Pig-rearing Chicken-rearing

13 Mr Bounta Villager Ginger planting Job’s tear Corn Pig-rearing

14 Mr Ju Veu Villager Rice farming Job’s tear

15 Mr Tang Villager Rice farming Job’s tear

16 Mr Phat Villager Up-land and low-land rice farming

Job’s tear

17 Mr Xay A Villager Job’s tear Job’s tear

18 Mr Va Meng Villager Chicken-rearing Pig-rearing Rice farming

Fruit trees

19 Ms Sonemany Villager Livestock raising Pig-rearing

20 Mr Kor Veu Villager Livestock raising Pig-rearing

21 Mr Bounpanh Villager Livestock raising Pig-rearing

22 Mr Bounthong Villager Chicken-rearing Chicken rearing

23 Ms Chanthip Villager Rice farming Job’s tear Corn

24 Mr Ju Vang Villager Job’s tear Corn

Job’s tear Corn Rubber

25 Mr Tong Va Villager Job’s tear Corn Livestock raising

Corn plantation Rubber plantation

26 Mr Thavone Villager Rubber seedlings Rubber seedlings

27 Mr Phaivanh District trainer Livestock technician

28 Mr Ngonh Xay District trainer Forestry technician

29 Mr Vilaysack District trainer Agriculture technician

��

_________________________________________________________________________________________

- 34 -

Khonekeo, Phiengdy and Phonsavath Villages

No. Name Role Current Income-Generating Activity

Business idea

1 Mr Vanxay Phonhor villager Gardening Animal rearing

Gardening Animal rearing

2 Mr Xiengkham Khonekeo villager Rice farming Animal rearing


3 Mr Boudy Khonekeo villager Rice farming Animal rearing Rice mill


4 Mr Bounkong Khonekeo villager Rice farming Big animal raising Chicken raising

Rice farming Animal rearing

5 Mr Vanthong Phonhor villager Banana tree plantation Pineapples Corn

Banana tree plantation Pineapples Corn

6 Ms Lingthong Phonosavath villager Rice farming Animal rearing


7 Ms Boua Khonekeo villager Big animal raising Poultry raising

Bean planting

8 Mr Bounpheng Phiengdy villager Rice farming Animal rearing Fish breeding

Rice farming Vegetable planting

9 Ms Viengkham Phiengdy villager Poultry raising Big animal rearing


10 Mr Maisy Khonekeo villager Pig rearing Chicken raising Fish breeding Gardening

Pig rearing Chicken raising Fish breeding

11 Ms Khamla Phiengdy villager Gardening Animal rearing

Rice farming Gardening

12 Mr Bountha Phonosavath villager Pig-rearing Chicken raising Rice farming

Pig rearing Chicken raising Rice farming

13 Ms Bounma Khonekeo villager Big animal rearing Chicken raising

Poultry raising Vegetable planting

14 Ms Boun Phiengdy villager Fish breeding Poultry raising Vegetable planting

Fish breeding Poultry raising

15 Ms Thongsy Villager Retailer Poultry raising

Poultry raising Vegetable planting

16 Ms Phet Khonekeo villager Gardening Animal rearing


17 Mr Khenthong Phiengdy villager Rice farming Animal rearing


18 Mr Maitui Khonekeo villager Gardening Animal rearing


19 Mr Bouslar Phiengdy villager Gardening Animal rearing


20 Mr Khieokham Phiengdy villager Gardening Animal rearing


21 Mr Thongdy Phiengdy villager Gardening Animal rearing


22 Ms Khamlar Phonosavath villager Gardening Animal rearing Rice farming

Gardening Animal rearing Rice farming

23 Ms Phonesamay Phonosavath villager Big animal rearing Poultry raising

Chili planting Watermelon planting

24 Ms Syda Phonosavath villager Gardening Rice farming

Watermelon planting Chili planting

��

- 35 -

Sisangvone Village


Business idea

1 Ms Bounpheng Villager Gardening Animal rearing

Big animal rearing

2 Ms Houg Villager NTFP Animal rearing

Gardening Rice farming Animal rearing

3 Mr Thurg Villager NTFP Gardening Animal rearing

4 Mr Touy Villager Gardening Animal rearing


5 Ms Than Villager Gardening Animal rearing


6 Mr Sy Villager Gardening Animal rearing NTFP


7 Mr Lae (A) Villager NTFP Gardening Animal rearing

8 Mr Xiengmoun Villager Gardening Gardening Animal rearing

9 Mr Lae (B) Villager NTFP Gardening Animal rearing

10 Mr Khamka Villager Gardening Animal rearing


11 Ms Noy Villager Gardening Animal rearing


12 Mr Khamfong Villager Gardening Animal rearing

Fruit tree planting Animal rearing

13 Mr Kam Villager Gardening Animal rearing


14 Mr Khampha Villager Gardening Animal rearing


15 Mr Seng Villager Gardening Animal rearing


16 Ms Chan Villager Gardening Animal rearing


17 Ms Foy Villager Gardening Animal rearing NTFP


18 Ms Vone Villager Gardening Animal rearing


19 Ms Noy Villager Gardening Animal rearing


20 Mr Sing Villager Gardening Animal rearing


21 Mr Phonh Villager NTFP Gardening Animal rearing

22 Ms Ma Villager Gardening Animal rearing NTFP


23 Mr Lam Villager Gardening Animal rearing


24 Mr Kan Villager Gardening Animal rearing


25 Mr Bounpheng Villager Animal rearing Gardening Animal rearing

26 Mr Sieo Villager Gardening Gardening

27 Mr Khammai Villager Vegetable planting Watermelon planting Chili planting


��

_________________________________________________________________________________________

- 36 -

Kouay Hinlath Village


Business idea

1 Ms Khathaly Villager Chicken and duck raising Rice farming Gardening

Gardening

2 Mr Sonexay Inthavong

Villager Rice farming Gardening Chicken raising

Cow breeding

3 Ms Phuttasin Villager Poultry raising Pig rearing Fish breeding

Poultry raising

4 Mr Sonexay Vongsui

Villager Livestock rearing Mushroom growing Tree seedlings

Mushroom growing Tree seedlings

5 Mr Khamnoun Villager Rice farming Gardening Livestock rearing

Big animal rearing

6 Ms Ae Villager Poultry raising Rice farming


7 Ms Thongphoun Villager Livestock rearing Fish breeding Gardening Rice farming

Livestock rearing Fish breeding

8 Ms Khammoun Villager Gardening Livestock rearing

Livestock rearing Mushroom growing

9 Ms Noy Villager Poultry raising Livestock rearing

Poultry raising

10 Ms Dok Mai Villager Livestock rearing Gardening

Pig rearing

11 Ms Nouphone Villager Livestock rearing Gardening

Pig rearing

12 Ms Phusone Villager Poultry raising Sawing

Mushroom growing

13 Ms Chathala Villager Rice farming Gardening

Gardening Big animal rearing

14 Ms Chathima Villager Rice farming Gardening Chicken raising

Gardening

15 Ms Chansom Villager Rice farming Gardening Livestock rearing

Pig rearing

16 Mr Art Villager Retailer Retailer Goat rearing Tree growing

17 Mr Bounlam Villager Rice farming Gardening Livestock rearing

Fish breeding Big animal rearing

18 Mr Bounlieng Villager Rice farming Vegetable growing

Integrated farming

19 Ms Keo Villager Vegetable planting Rice farming Vegetable planting

20 Mr Phetsome Villager Fish breeding Fish breeding 21 Mr Vandy Villager Rice farming

Retailer Run my own business

22 Ms Ketkeo Villager Rice farming Livestock Agriculture

23 Ms Khamxay Villager Rice farming Gardening Duck raising

Run business

24 Br Bounheuag Villager Rice farming Poultry raising

Gardening

��

- 37 -

Phonekam Village


Business idea

1 Ms Nod Villager Rice farming Livestock rearing

Livestock rearing

2 Ms Sisouphan Villager Rice farming Livestock rearing

Livestock rearing

3 Ms Mone Villager Rice farming Gardening Animal rearing

Rice farming Gardening Animal rearing

4 Mr Bounmy Villager Rice farming Gardening Animal rearing


5 Ms Phan Villager Rice farming Gardening Animal rearing


6 Ms Lay Villager Rice farming Rice mill business Transport pick-up0

Livestock rearing Gardening

7 Mr Pheang Villager Rice farming Animal rearing


8 Mr Phi Villager Rice farming Animal rearing


9 Mr Bouavanh Villager Rice farming Gardening Animal rearing


10 Mr Yong Villager Rice farming Gardening Animal rearing


11 Mr Vongdeuan Villager Gardening Animal rearing


12 Mr Samane Villager Rice farming Gardening Animal rearing


13 Ms Mon Villager Rice farming Animal rearing


14 Ms Oob Villager Rice farming Animal rearing


15 Ms Vone Villager Gardening Animal rearing


16 Ms Tounkham Villager Gardening Rice farming

Rice farming Animal rearing Tobacco planting

17 Ms Khamhou Villager Gardening Rice farming

Livestock rearing Rice farming

18 Ms Bounthieng Villager Gardening Rice farming Animal rearing


19 Mr Khemphone Villager Gardening Rice farming Animal rearing

Rice farming Gardening Animal rearing Tobacco planting

20 Mr Sykhai Villager Rice farming Gardening


21 Ms Dok Villager Rice farming Animal rearing


22 Mr Sangthong Villager Rice farming Animal rearing


23 Mr Sythat Villager Rice farming Gardening Animal rearing


24 Mr Say Villager Rice farming Gardening


25 Ms Khampheuy Chief of village Rice farming Gardening


26 Mr Khammay District trainer

26 Mr Xayasith District trainer

28 Mr Othai District trainer

��

_________________________________________________________________________________________

- 38 -

Annex 2

Village Resource Maps

Nasenkham Village Sisangvone Village

��

- 39 -

Khonekeo, Phonsavath and Phiengdy villages Kouay Hinlath Village

��

_________________________________________________________________________________________

- 40 -

Phonekam Village

��

- 41 -

Annex 3

Schedule for the Multi-stakeholder meeting

Sessions Topics 8:00 – 8:15 Registration 8:15 – 9:00 Opening Ceremony 9:00 – 9:30 Presentation of the summary of the business plan with

analysis and judgement 9:30 – 10:00 Group discussion of business plan 10:00 – 10:15 Coffee/ Tea Break 10:15 – 10:45 Group discussion of business plan 10:45 – 11:15 Reflection on the discussion 11:15 – 12:15 Promotion of the business plans 12:15 – 13:30 Lunch 13:30 – 14:30 Lessons learned regarding good practices for enterprise

planning and implementation 14:30 – 14:45 Coffee/ Tea Break 14:45 – 15:45 Who is doing what in supporting business development at the

village level (coverage matrix) 15:45 – 16:15 What are the issues in terms of business development at the

village level (factograms) 16:15 – 16:30 Wrap up

Closing ceremony

��

_________________________________________________________________________________________

- 42 -

Annex 4

List of Participants at the Multi-stakeholder Meetings

Oudomxay Province

No. Name and Surname Position Organisation Address 1 Mr Veu Li Xay Por Party Leader Village authority Nasenkham Village 2 Mr Lao Va Xeng Village head Village authority Nasenkham Village 3 Mr Boupan Sanyakan Deputy village

head Village authority Nasenkham Village

4 Mr Ko Vue Deputy village head

Village authority Nasenkham Village

5 Mr Seng Ko Villager Nasenkham Village 6 Mr Tou Ye Villager Nasenkham Village 7 Mr Phat Villager Nasenkham Village 8 Ms Khamla Village LWU Nasenkham Village 9 Ms Chanthip Villager Nasenkham Village 10 Mr Hinphet

Lorvankham Technical staff Provincial Administrative

office

11 Mr Khamphao Boundala

Deputy head of section

DAFO

12 Ms Sithone Moungmixay

Deputy President Provincial LWU

13 Ms Khamsao Lao Deputy President District LWU 14 Mr Bounleut Director Handicraft Development

company

15 Ms Ursula Schmidt Rural development coordinator

DED (German Development Service)

16 Mr Viengxay Khet’s branch manager

APB

17 Mr Kongkeo Phouthilad

Deputy director Department of Trade

18 Mr Ngonexay Bounthilad

Technical staff DAFO

19 Mr Phayvanh Sengla Technical staff DAFO

20 Mr Vilaysack Tayphasouk

Technical staff DAFO

21 Mr Seng-Aloun Souksavath

Technical staff District Trader Office

22 Mr Siphay Chansavanh

Planning and M&E Unit

IFAD – OCISP

23 Mr Somephone Vilaychit

Deputy head of section

DAFO

24 Ms Bouahom Accountant Ha-Oudomxay Company

25 Mr Sisophan Singphavanh

Head of DAFO DAFO

26 Mr Sorlasin Khantisamly

Technical Staff DAFO

27 Mr Khamphou Head of section District office of Information and Culture

28 Mr Nan Viengvongsack

Director PAFO

29 Mr Somephong Provincial coordinator

SPFS/ PAFES

��

- 43 -

Bolikhamxay Province

No. Name and Surname Position Organisation Address 1 Mr Khammoun

Vongxayalad Village head Village Authority Kouay Hinlath village

2 Mr Othay Vongsackda

District trainer DAFO Bolikhan District

3 Mr Xayyasith Phandanouvong

District trainer DAFO Boilkhan District

4 Ms Chansome Phandanouvong

Villager Kouay Hinlath village

5 Mr Bounlieng Visouthivong

Villager Kouay Hinlath village

6 Mr Sangvan Phouthathakham

Agricultural Promotion advisor

Lao-Luxembourg Project

7 Mr Thongsavanth Xayyasan

Technical staff Department of Planning and Cooperation

8 Ms Khampiew Sisombath

Technical staff Provincial LWU

9 Ms Lay Villager Phonekham village 10 Ms Khamhou Villager Phonekham village 11 Ms Khampheuay

Luangsouvannavong Village head Village Authority Phonekham village

12 Mr Sikhay Inthamixay Deputy village head

Village Authority Phonekham village

13 Ms Manivanh Xayyaphet

Deputy director Department of Industry and Handicraft

14 Mr Kayson Chansina Deputy head Department of Trade 15 Mr Khammay

Lorpanya District trainer DAFO Bolikhan District

16 Mr Amon Matthavong Director PAFES 17 Mr Phonthamith

Sannilavong Deputy head DAFO Bolikhan District

18 Mr Bounalam Phouthavong

Deputy head Village Authoriy Kouay Hinlath village

19 Mr Soukan Jiengsavang

Deputy director PAFO Paksan District

20 Mr Pangkham Vilayphan

Deputy director PAFES

21 Ms Khamka District trainer DAFO Paksan District

22 Mr Ad Phommasan District trainer DAFO Paksan District

23 Mr Phetsamon District trainer DAFO Paksan District

24 Mr Somxay Chaleunsak

Deputy head DAFO Paksan District

25 Ms Saophachan Technical staff PAFO

26 Ms Vilayvon Technical staff PAFO

��

_________________________________________________________________________________________

- 44 -

Annex 5

Multi-Stakeholder Meeting – Coverage Matrices: Oudomxay Province

Result of the villagers group

Activities/ Services Concerned Organisations

Inpu

t sup

ply

Tech

nica

l Tra

inin

g

Mar

ket I

nfor

mat

ion

Pro

visi

on

Fina

ncia

l Sup

port

R&

D

BD

S

Pro

mot

iona

l Pol

icy

Department of Information and Culture xxx x x xx

PAFO xxx xx xx x xxx xx xx

Department of Planning and Cooperation x

Department of Trade

DAFO xxx xx xx x xxx xx Xx District Trade Office

District Planning and Cooperation Office X LWU

Private Companies Xx x x

Banks x Xx

IFAD – OICSP

DED

Provincial Administrative Office

FAO-SPFS Project Xxx Xxx xxx xxx xxx xxx xxx

��

- 45 -

Results of the district-level organisations group


Inpu

t sup

ply

Tech

nica

l Tra

inin

g

Mar

ket I

nfor

mat

ion

Pro

visi

on

Fina

ncia

l Sup

port

R&

D

BD

S

Pro

mot

iona

l Pol

icy

Department of Information and Culture xxx xx xx xxx x Xx

PAFO x x

Department of Planning and Cooperation

x xxx x

Department of Trade xx xxx xx xx x x

DAFO x xx x x District Trade Office x xx

District Planning and Cooperation Office xxx LWU xx

Private Companies xx Xx

Banks xxx

IFAD – OICSP xx xx xx x

DED xx xx xx x

Provincial Administrative Office Xx

FAO-SPFS Project xx

��

_________________________________________________________________________________________

- 46 -

Results of the provincial-level organisations group


Inpu

t sup

ply

Tech

nica

l Tra

inin

g

Mar

ket I

nfor

mat

ion

Pro

visi

on

Fina

ncia

l Sup

port

R&

D

BD

S

Pro

mot

iona

l Pol

icy

Department of Information and Culture

xxx xx x xx x xx

PAFO x xx x xx x x


x xx x xx xx

Department of Trade xx xxx xx

DAFO x x x xx District Trade Office x xx x

District Planning and Cooperation Office

xxx xx

LWU xx xx x

Private Companies xx xxx

Banks xx xxx xx

IFAD – OICSP

DED xx

Provincial Administrative Office x xx

FAO-SPFS Project

��

- 47 -

Results of the group of NGOs, donor-supported projects and private companies


Inpu

t sup

ply

Tech

nica

l Tra

inin

g

Mar

ket I

nfor

mat

ion

Pro

visi

on

Fina

ncia

l Sup

port

R&

D

BD

S

Pro

mot

iona

l Pol

icy


xxx xx xxx x

PAFO x x x xx


x xx xxx x x

Department of Trade xx xxx xx x

DAFO xx x x District Trade Office x x x


x x x

LWU x x x

Private Companies x x x xxx x

Banks xxx x xxx xx x

IFAD – OICSP xxx x xx

DED x x

Provincial Administrative Office x

FAO-SPFS Project xxx

��

_________________________________________________________________________________________

- 48 -

Multi-stakeholders Meeting Coverage Matrices: Ventianne Province Results of the villagers’ group


Inpu

t sup

ply

Tech

nica

l Tra

inin

g

Mar

ket I

nfor

mat

ion

Pro

visi

on

Fina

ncia

l Sup

port

R&

D

BD

S

Pro

mot

iona

l Pol

icy


xx xx x xxx xx xx

PAFO x x x


x x x

Department of Trade xxx xxx xx x x

DAFO x xx x x District Trade Office x x xx x


x x x xxx

LWU x xx x

Private Companies xx x

Banks xxx

IFAD – OICSP xx xx x xxx x

DED xx xx xx x

Provincial Administrative Office x xx x

FAO-SPFS Project xx

��

- 49 -

Results of the district-level organisations group


Inpu

t sup

ply

Tech

nica

l Tra

inin

g

Mar

ket I

nfor

mat

ion

Pro

visi

on

Fina

ncia

l Sup

port

R&

D

BD

S

Pro

mot

iona

l Pol

icy


x xx xxx x xx

PAFO x x x x


xx xxx x x x

Department of Trade xx xxx xx xx x xx

DAFO x x x x x District Trade Office x xx x


x x xxx

LWU x xx xx x

Private Companies xx xx x x

Banks x x

IFAD – OICSP xx xx xx x x

DED xx xx xx x

Provincial Administrative Office xx

FAO-SPFS Project x xx

��

_________________________________________________________________________________________

- 50 -

Results of the provincial-level organisations group


Inpu

t sup

ply

Tech

nica

l Tra

inin

g

Mar

ket I

nfor

mat

ion

Pro

visi

on

Fina

ncia

l Sup

port

R&

D

BD

S

Pro

mot

iona

l Pol

icy


xxx xx x x

PAFO x x xx x xx


xx xx xxx x xx x

Department of Trade xxx xxx xx x x

DAFO x xx x x xx District Trade Office x x x x x


x x x x

LWU xx x x x

Private Companies x x x xxx x x x

Banks x xxx xx xxx xx x

IFAD – OICSP xxx x xx x

DED x x x

Provincial Administrative Office x x

FAO-SPFS Project xxx

��

- 51 -

Multi-stakeholder Meeting Coverage Matrices: Bolikhamxay Province

Results of the Villagers Group

Activities/ Services Concerned Organisations In

put s

uppl

y

Tech

nica

l Tra

inin

g

Mar

ket I

nfor

mat

ion

Pro

visi

on

Fina

ncia

l Sup

port

R&

D

BD

S

Pro

mot

iona

l Pol

icy

PAFO xxx xxx xxx xxx

DAFO xxx x xxx


Department of Trade x

Department of Industry and Handicraft

LWU x

Projects x

Banks x xx xx

Private companies xx

FAO-SPFS Project xxx xxx xxx xxx xxx xxx xx

Results of the District-level organisations group


put s

uppl

y

Tech

nica

l Tra

inin

g

Mar

ket I

nfor

mat

ion

Pro

visi

on

Fina

ncia

l Sup

port

R&

D

BD

S

Pro

mot

iona

l Pol

icy

PAFO xxx xxx xx xxx xxx

DAFO xxx xxx xxx xxx x xxx xxx


Department of Trade x

Department of Industry and Handicraft

LWU x xx

Projects xx

Banks xx

Private companies xx

FAO-SPFS Project xxx xxx xxx xxx xxx xxx xxx

��

_________________________________________________________________________________________

- 52 -

Results of the provincial level organisations group


put s

uppl

y

Tech

nica

l Tra

inin

g

Mar

ket I

nfor

mat

ion

Pro

visi

on

Fina

ncia

l Sup

port

R&

D

BD

S

Pro

mot

iona

l Pol

icy

PAFO xx x xx x xx xx xx

DAFO xx xx xx x xxx xx

Department of Planning and Cooperation x xx x xx x xxx

Department of Trade x xx xxx x x xx

Department of Industry and Handicraft x x x xx x xx

LWU x x x x x xx

Projects xxx xxx x x xxx xxx xxx

Banks xx x xxx x xxx x x

Private companies xx xx xx xx xx xx x

FAO-SPFS Project xx xxx x xx xx xx

- 53 -

Annex: 6 business plan

No. Business planner Name of the

business Sales Fix asset Raw material Labour Expenses

Total project cost

Profits Own capital Borrow fron

Bank ROI

A Ban Nasenekham, Xay district, Oudomxay province 1 Mr. Ko Vue Pig farm 13,000,000 75,000 9,340,000 - 331,000 9,746,000 3,329,000 1,200,000 8,546,000 34.16 2 Mr. Seng Ko Pineapple plantation 18,000,000 2,747,000 3,420,000 - 1,431,500 7,598,500 13,148,500 4,851,500 2,747,000 173.04 3 Mr. Phat Job's tear plantation 4,000,000 290,000 180,000 - 388,000 858,000 3,432,000 658,000 200,000 400.00 4 Mr. Tou Ye Chicken farm 2,935,000 30,000 876,110 100,000 25,000 1,031,110 1,933,890 30,000 1,001,110 187.55 5 Ms. Chanthip Corn plantation 9,000,000 20,220,000 1,740,000 750,000 1,822,000 24,532,000 4,688,000 4,290,000 20,242,000 19.11 B Phonesavanh, Phiengdy, Khonkeo village, Hinherb district, Vientiane Province 6 Mr. Boutdy Pig farm 19,950,000 1,295,000 5,627,900 - 48,000 6,970,900 14,274,100 3,854,000 3,116,900 204.77 7 Ms. Phonesamay Vegetable growing 2,550,000 206,000 82,000 - - 288,000 2,468,000 288,000 - 856.94 8 Ms. Khamla (1) Pig farm 5,000,000 130,000 1,380,000 - - 1,510,000 3,620,000 130,000 1,380,000 239.74 C Sisangvone, Kasy district, Vientiane Province 9 Ms. Noi Chicken farm 6,000,000 495,000 3,590,000 - 30,000 4,115,000 2,380,000 495,000 3,620,000 57.84

10 Mr. Seng Cattle raising 20,850,000 340,000 8,500,000 - 440,000 9,280,000 11,910,000 340,000 8,940,000 128.34 D Phonekham village, Bolikhanh district, Bolikhamxay province 11 Ms. Lay Pig farm 13,000,000 75,000.00 9,340,000.00 - 288,000.00 9,703,000 3,372,000 - 9,703,000 34.75 12 Mr. Sikhay Cattle raising 22,250,000 360,000 8,500,000 - 440,000 9,300,000 13,310,000 - 9,300,000 143.12 E Kouay Hinlath, Paksan district, Bolikhamxay province 13 Mr. Bounlam Fish farm 3,330,000 569,500 372,000 - 29,000 970,500 2,929,000 - 970,500 301.80 14 Ms. Chansome Pig farm 10,000,000 400,000 4,472,000 - 50,000 4,922,000 5,478,000 - 4,922,000 111.30 15 Mr. Bounlieng Vegetable growing 2,550,000 206,000 82,000 80,000 368,000 2,388,000 - 368,000 648.91

152,415,000 27,438,500 57,502,010 850,000 5,402,500 91,193,010 88,660,490 16,136,500 75,056,510 236

Summary of 15 Business plans in 5 SPSF Sites

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Annex 7 Evaluation Results Nasenkham villages, Oudomxay Province

Contents of Evaluation � � � Contents 23 3 0

Training methodology 26 0 0

Duration 25 1 0

Trainer’s team 26 0 0

Equipment and facilities 25 1 0

Achieved expectations 24 2 0

Overall 26 0 0

Khonkeo, Phiengdy and Phonsavath villages, Ventiane Province



Duration 16 3 0




Overall 18 0 0

Sisangvone village, Kasi District, Ventiane Province


Training methodology 20 - 0

Duration 20 - 0

Trainer’s team 20 - 0

Level of understanding 19 - 0

Overall 19 1 0

Khouay Hinlath village, Bolikhamxay




Participation 21 0 0


Overall 21 0 0

Phonekham village, Bolikhamxay



Duration 23 5 0




Overall 25 3 0

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Annex 8 Last version of business plan Business Plan Format

Personal/ Group Detail

Business Name: Group Name: Enterpreneur’s Name: No. of Group Members: Address: Name of Group Representative:

(1) My business is relating to ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

(2) Past experience relating to this business (please indicate years) ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

(3) Education and training background and experience (please indicate years) ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..

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Marketing Plan

1.1 Marketing information from market research

� The potential customers/ Size of the market

Customers and size of the

market

Number

How much

they buy per year

Estimated demand per year

Trends in customer demand

(a) Individual Customers

1.

2.

3.

(b) Customers that are organisations/ international agencies

1.

2.

3.

(c) Customers who are private companies/ restaurants/ hotels/ guesthouses

1.

2.

3.

� Who are your competitors? (Producers and others who produce and sell the same or similar products to the same market)

Who are the competitors? Their size (Bigger/ Smaller/ the Same)

How important are they?

� Analyse your competitors

Aspects of analysis Strengths Weaknesses

(a) Products/ Production

(b) Price

(c) Selling methods

(d) Location

(e) Distribution

(f) Other aspects?

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What are your competitive advantages compared to the strengths/ weaknesses of your competitors?

Aspects of analysis Features and competitive advantage compared to your competitor’s products

(a) Product/ Production

(b) Price

(c) Selling methods

(d) Location

(e) Distribution

(f) Other aspects?

1.2 How should we improve or develop our products in order to be able to sell?

Products/ Services Features and competitive advantages

1.3 Price (What strategy should we apply in order to be able to sell more and make more

profit?)

Products/ Services Price per unit

Sales strategy

1.4 Location for producing/ selling the improved products

a) Detail

Location Size Rent/ Owned

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b) Reasons for choosing this location: …………………………………………………………………………………………………………………………………………………………………………………………………………………… c) Product distribution channels: I/ we sell to consumers; retailers; wholesalers d) Reasons for choosing this channel of distribution: …………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

1.5 Promotional measures for selling the product/ service

Type Cost

Example: Putting an advertisement in the newspaper, free samples, name cards, advertising on TV, and others 1.6 Summary of Marketing Strategies

1.

2.

3.

4.

5.

6.

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2 Operations Plan

2.1 Form of business organisation Individual Group Cooperatives 2.2 Details of tasks

(1) For individual businesses: Number of employees:

Position Tasks

Owner/ manager ……………………………… ……………………………..

…………………………………. …………………………………..

Employee …………………………….. ……………………………..

………………………………… …………………………………

(2) For group businesses – who will do what?

Name Position Tasks

……………………………… ……………………………..

…………………………………. …………………………………..

…………………………….. ……………………………..

………………………………… …………………………………

(3) License or permit needed

Type Expenses/ Fees

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3 Production Plan

3.1 Production process (preparation – start production – processing – selling)

3.2 Fixed assets needed - Tools and equipment In order to achieve the sales targets and fulfill 100% production capacity, the business must have the following tools and equipment:

No. Item Quantity Price per rate

Total Durable years

Depreciation

Total (A)

- Transportation Estimate of the need to travel and market demand

No. Item Quantity Price per rate

Total Durable years

Depreciation

Total (B)

3.3 Total fixed assets needed

Total (A + B) =

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4 Variable Expenses

4.1 Raw materials (per round/ year)

(a) For product 1: _____________________

No. Item Quantity Rate Total Available

4.2 Labour (for product 1)

No. Item Quantity Rate Total Source

4.3 Other expenses (for product 1)

No. Item Quantity Rate Total

4.4 Raw materials (per round/ year)

(b) For product 2: _______________


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4.5 Labour (for product 2):


4.6 Other expenses (for product 2):


4.7 Raw materials (per round/ year):

(c) For product 3: _______________________


4.8 Labour (for product 3)


4.9 Other expenses (for product 3)


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4.10 Cost price per unit

Cost composition of the product

Product #1 ___________

Product #2 ___________

Product #3 ___________

Total

Material costs

Labour costs

Other expenses

Total variable costs

Number of products

Cost price per unit

Competitor’s price

Sales price per unit (Kip)

Some suggestions for pricing a product:

Demand

Cost

Price Price Sensitivity

Competition

Price Ceiling

Basis for Pricing

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5 Financial Plan

5.1 Total capital needed

Total capital needed Total Own investment Loan Other

(a) Fixed capital (3.3) (1) (2) (3) (4) (5)

Total fixed capital (b) Total working capital (4.10) Material costs Labour costs Other expenses

(1)

(2)

(3)

(4)

(5)

Total working capital

Total capital needed

Percentage (%)

5.2 Interest

Source of capital Interest/

month (%) 100= 0.0

#months needed to borrow

Total loan Total interest

Loan Borrowing from

other sources

Total

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5.3 Estimated Sales Products

Months Products on sale

Quantity Price/ unit

1

Sales/ month Quantity Price/ unit

32

Sales/ month


3

Sales/ month

Quantity Price/unit

4

Sales/ month


5

Sales/ month

Total Total quantity of products

Sales 5.4 Profit and Loss

a) Sales/ Income (5.3)

Expenses: - Raw materials

- Labour costs

- Other expenses

- Depreciation

- Interest

b) Total expenses

c) Profit or loss (a – b) d) ROI (a)/ (b) x 100 (%)

Suggestions:

It is suggested that, from (d) you conclude as to whether your investment is worthwhile. That is, if the ROI is lower than the interest rate/ year or long-term fixed deposit in the bank, it is better for you to put the investment on the bank to gain interest. On the other hand, if your ROI is higher than the bank’s interest rate, the investment is likely to be worthwhile.

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6 Strategies

Problems/ constraints that might be

encountered Measures

Environmental strategy

Social strategy

Technological strategy

Risk assessment

Documents

ENTERPRISE PLANNING AND MANAGEMENT SKILLSPWR 4).pdf · This report is divided into four main chapters, ... including lesson learnt on good practices for enterprises planning and