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Promoting Community-based Business Models: INBAR Case studies
Dr. I.V. Ramunaja Rao & Oliver Frith, INBAR
AC
B |INTRO:Bamboos’ potential
| EXAMPLESProduct innovations
|ModelHow to deliver SME Development
The Green SchoolBali, Indonesia
• Over 1250 species, 100 commercial
• Easier to cultivate than trees for
smallholders
• Can be cut & transported by one person
• Easier to process than trees – splits linearly
• Significant income addition to farm income
• International trade approx. US$2 billion
• Domestic markets much larger – China
US$20 billion
• Innovation and global market potential
exceptionally large
Bamboo
Global Distribution of Bamboo
Bamboo approx. 0.01% wood market
Alternative to Timber
Major Potential Markets
• Wood-products
• Energy
• Construction
• Institutional
• Local
• Subsistence
• INBAR has a network of field based
Action Research Sites (ARS) across
Asia, Africa and Latin America
• Used for research, awareness
raising, demonstration, capacity
building, and development of
scalable and replicable models
• If you do not have one, invest in
one! Seeing is Believing
Action Research for SME Development
• Policy change in the Philippines–
25% school desks procured bamboo
• 1.16 million bamboo desks and
armchairs per year market
• 5 year effort – to change policy
• Technology developed at INBAR ARS
in Abra
Product Innovation –School Desk
• Choose the right product
• Volume not value often important
• INBAR ARS in rural Tripura helped to create 150,000 new jobs
with higher value addition
• Mainly women, who are now engaged in incense stick rolling,
branding and marketing
SME Examples– Incense sticks
Public private partnerships/Alianzas público privadas
Product Innovation – Pichincha, Ecuador
Product Innovation – Construction
• 2,000 people now employed in construction value chains in
Northern Peru and coastal Ecuador
• Improved, earthquake/flood-resistant housing helping to
transform cities
OwnershipCurrent: 100% CIBART NGOFuture (indicative): 30% CIBART30% Women30% Professionals10% Technical support
Cash benefit (US$)biomass : power
1 day: 12 : 801 month: 360 : 24001 year: 4380 : 29200
Charcoal produced: 5%: $ 4,38025%: $ 21,900Unit cost: $ 21,942
Broad usage of power(indicative)
0500-0900: HH power0900-1700: Enterprises1700-2100: HH power2100-0500: Water pumping
Other benefits• Value added production
from enterprises e.g. HHC, flour-mill, etc.
• Quality of life – power to 160-320 HH (8h basis)
• Water supply – farms, homes
Product Innovation – Biomass gasification
10 20 30 40Yield in tons/ha
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
Biomass rate $16.67/tonBiomass rate $25.00/tonBiomass rate $33.33/tonBiomass rate $41.67/tonDomestic power rate ($0.08/kWh)Charcoal at $333/tonIndustrial power rate ($0.14/kWh)
UD$/
day
Not difficult to earn above poverty line from agri-residues & growing bamboo on uncultivated land
Biomass gasification – India Scenario
Community-Professional Partnership Model
community social private
enterprises
communities(mostly rural)
professionals(mostly urban)
100% 0%
100%0%
prop
ortio
nal p
artn
ersh
ipincreasing technology,
production complexity &
value-
public social privateinstitutions enterprises enterprises
SOCIAL INTRAPRENUERSpublic people working in the social-to-private
domain
SOCIAL EXTRAPRENUERSprivate people working in the social-to-
public domain
Publ
ic In
stitu
tions
Private Enterprises
Social Enterprises
Public-to-Private Enterprise Gradient
• ARS sites started with seed money as grants, sometime as low
as US$10,000
• Tripura ARS Company TRIBAC – started with revenue US$15K
in 2005 – reached US$271K in 2009 – 60% sales
• NATIVE KONBAC company with initial capitalization of
US$250K– linked to ARS and NGO in Konkan, India –
confirmed sale orders now over US$500K
From Grants to Sales/Credit
• Huge Potential for innovation with bamboo
• INBAR has developed a set of ARS that have validated SME
models
• Consists of providing institutional linkages between
communities, civil society, private sector and government
• Critical to engage the entire value chain
• Move away from subsistence and grant-based approaches to
markets
Summary
ContentsThank You! ¡Gracias!
For more Information/Encuentre más información en:
www.inbar.int
Mr. Alvaro Cabrera - [email protected] Coordinator for Latin America and the Caribbean
Mr. Oliver Frith - [email protected] Acting Director of Global Programme
INBAR Contacts/Contactos
Dr. I.V. Ramanuja Rao - [email protected] Advisor
