2. Value Chain approach in implementing
our Livelihood program
Joint office of CST, Ethiopia
3. Objective of this session
1. To develop common understanding on what
does Value Chain (VC) mean among our selves
2.The value chain approach as a means in our LH
Program
4. 1.What do we mean by Value chain?
• A value chain links the steps a product takes
from the farmer to the consumer.
• It includes research and development, input
suppliers and finance (market and fin.
Institutions).
• Our targeted Pastoralists/small farmers
combines these resources with land, labour
and capital to produce commodities.
5. continued
• It is more than increasing production and
create access to market.
• Is a means and it is not an end by itself
6. 2.The value chain approach as a
means in our LH Program.
• In our current LH program cycle, we do not
think only increasing production and
productivity but we emphasize also on value
adding.
• It is put as one implementation strategy in the
PPD and reflected as
“Increasing incomes through Value chain
promotion”
7. continued
• The detail strategies are put in the PPD as
follows:
-Promoting environmentally sustainable VC such
as aloe Vera production, cactus, gums and
incense production
-Encouraging sustainable rural-urban linkages
-CB in Product processing
-improving market access
8. continued
-improving rural storage and processing facilities
(e.g. Grinding mills)
-promoting indigenous knowledge and skills
-promoting use of appropriate technology in
product processing
-encouraging the role of cooperatives
10. Sub Sector Analysis – STEPS
1. Establish Initial Understanding of the Sub Sector
1.
2.
Collect data
Draw a preliminary sub sector map
2. Refine Your Understanding
1.
2.
3.
Refine the sub sector map
Quantify dimensions of particular interest
Analyse constraints and opportunities in the sub sector
3. Select Value Chain for Analyses & Development
1.
2.
Analyse constraints and opportunities in the chain
Explore opportunities for leveraged interventions
24. Value Chain Concept
• Exercise 1: opening exercise- Human Chain
– Human Chain exercise reflection- (photo)
• Participants experience & brainstorming
– Real life – examples –
• two or three from participants
• Mango example – see next slide
26. Value Chain: The full range of activities that are required to bring a product or service
from its conception to its end use
A Value Chain is: a vertical alliance of enterprises (collaborating in various degrees)
involving all stages, from conception
to disposal
defined by its raw material and
market segment
actors actively seek to support each
other to increase efficiency
and competitiveness
Invest time, effort and money, and
build relationships to reach a common
goal of satisfying consumer needs
-
-
27. Définition of Market
Value Chain
Consumers
products
information
Industry – processing
Big traders /
Exporters
Small producers
Small
traders
Environmen
t
. Policies
. Banks
. Support
services
Etc…
Sellers of
resources &
services
28. Steps in VCA & Development
Value Chain
Selection
Economic Mapping
Sub-sector Analysis
Value Chain
Analysis
Learning & Innovation
Monitoring performance &
Assessing demand
Intervention plan
Implementation
Value Chain
Intervention
Plan
29. Three levels of the value chain
CHAIN ACTORS
CHAIN
SUPPORTERS
CHAIN CONTEXT
30. Value Chain Lens
Global Enabling Environment
Global Retailers
National Enabling Environment
Sector-specific providers
Cross-cutting providers
Financial (cross cutting)
National
Retailers
Exporters
Wholesalers
Processors/Traders
Producers
Input Suppliers
32. What is Value Chain Analysis?
• Value chain analysis is a process for
understanding the systemic factors and conditions
under which a value chain and its firms can
achieve higher levels of performance.
33. Why VCA?
When using value chains as a means for fostering
growth and reducing poverty, the analysis
focuses on identifying ways to contribute to two
objectives:
i) improving the competitiveness of value chains
with large numbers of small firms, and
ii) expanding the depth and breadth of benefits
generated.
34. Value Chain Analysis
–
–
–
–
–
•
•
–
Data collection
value chain mapping
Assess constraints and opportunities
Identify potential interventions
Special focus points
Gender sensitive value chain analysis
Governance & power issues
Common mistakes in conducting a VCA
35. Data collection & value chain mapping
A number of tools and techniques are used to
conduct value chain analysis such as:
1.
in-depth studies: involving the use of a combination of
tools such as sound desk researches, interviews, and focus
group discussions are key information collection strategies
2.
participatory form of subsector/value chain analysis
etc.
36. What is Participatory Value Chain
Analysis (PVCA)?
• Is a process conducting a VCA through the
participation/consideration of different actors
in the value chain.
• There are different activities and actors with
different levels of understanding of the market
and points of view.
• This makes it necessary to involve all
stakeholders to have a clearer picture of the
market.
37. PVCA Rationale
Promotes dialogue and accountability between
Value chain participants
Promotes the direct involvement of stakeholders
in solving problems on there
own/independently
identification of bottlenecks and appropriate
intervention
Develops a sense of ownership among
stakeholders
Sustainability of the impact of suggested
solutions a and efforts
38. Cont….
Key dimensions
Mapping the chains, networks and systems
Mapping the geographical spread
Identifying the key stakeholders
Measuring the relative value accruing
Identifying the governance structures
Mapping the interventions directly
targeting different levels of the chain,
network or system
Clarifying the direct, indirect or unintended
impacts
Exploring the different alternative levels of
intervention or strategy
.
PVCA involves:
Mapping
Quantitative and
qualitative
research
39. Cont….
Key stages
Scoping the analysis:
clarification of
questions and
investigation strategy
Preliminary value
chain mapping
Participatory value
chain analysis
Setting up sustainable
structures for sectoral
and inter-sectoral
accountability.
Principles
.
Stakeholder participation
Visual and diagram mapping - accessible to all
stakeholders
Dialogue between stakeholders & mutual
understanding and respect for their different
opportunities and constraints.
Equity and empowerment
Incorporation of poverty and gender analysis
throughout the process
Ensuring participation of the most vulnerable and
supporting their information and action needs
Formation of sustainable systems for ongoing
accountability of enterprise and chain governance
40. Cont….
Additional Variables to be considered
gross output values, net output values (that is, gross output,
minus input costs)
the physical flow of commodities along the chain
the flow of services, consultants and skills along the chain
employment, where relevant distinguishing between
permanent (on payroll) and temporary (off payroll) staff,
gender, ethnicity
destination of sales - for example to wholesalers and retailers;
concentration of sales amongst major buyers; number of
buyers, imports and exports, and to which region
41. Special Focus Points
Gender sensitive value chain analysis model
Not to overlook gender dimension
(1) all information will be disaggregated by gender in all
possible cases,
(2) activities that include and exclude women will be
identified for emphasis,
(3) economic, social, political, psychological factors
which caused for the situation will be assessed and
(4) caution will be made in intervention selection to select
gender sensitive value chains and intervention points
42. Governance & power issues
Governance describes which firms within a value chain
set and enforce the parameters under which others in the
chain operate. Embedded in governance are inter-firm
relationships, power dynamics and the distribution of
benefits.
• Governance and power relationship are important
issues
– To understand the governance and power relationship
– To empower the target actors
44. Common mistake in VCA
• Failure to Consider the End User’s Requirements
• Assuming a Fixed Industry Structure and Static
Relationships among Stakeholders
• Inattention to Learning and Information Flows
• Inadequate Attention to Relationship Dynamics
• Failure to Verify Data
• Failure to Filter Constraints
• Opportunities and Constraints are Identified that
are Not the Most Important
46. What is VC Mapping
• Is an illustrative presentation of linkages in a
value chain and the different actors/
stakeholders so as to create a clear
understanding of relationships, activities and
what is seen and encountered
• It is a vital step that follows the initial
selection of value chains and
• Guides the analysis of selected value chains
47. Mapping – the reasons
To assist us in understanding the sub sector
To assist us in communication (in/external)
To identify actors, roles and relationships
To identify markets (segments)
To identify channels (product flows)
To identify trends (dynamics)
48. Objectives of VC Mapping
To gain a basic overview of the value chain to
guides the full value chain analysis to be
undertaken
Identify constraints and possible solutions at
different levels in the value chain
Identify the location and position of the poor in the
value chain
Visualize networks to get a better understanding of
connections between actors and processes
Demonstrate interdependency between actors and
processes in the value chain
49.
50.
51. Types of VC Map
Basic Map
• Functions
– Product life cycle from
conception to end use
• Participant(s) at each
function
• Linkages between the
participants–horizontal
and vertical
Detailed Map
• Added value or gross
margins of each function
• Number of firms
performing each function
• Volumes moving between
levels
52. VALUE CHAIN MAPPING: BASIC MAP
Four steps:
1. Identify the functions
2. Identify the participants
3. Complete the work sheet
4. Draw the initial map
57. VALUE CHAIN MAPPING: DETAILED MAP
1.
2.
3.
4.
5.
Identify the functions
Identify the participants
Complete the work sheet
Draw the initial map
Analysis of overlays
–
–
–
Number of actors performing each function
Volumes moved between one level to another
Value added/gross margins
59. Simplified Gross Product (SGP) and
Simplified Gross Margin (SGM)
• SGP = Turnover (gross sales) – direct cost
• SGM = SGP-T (sales) x 100
T (sales)
• Simplified gross margin:
• profitability of actors in the chain
• make comparison between functions and
actors horizontally and vertically
• comparing or benchmarking with other VCs
68. Group work:
Select potential chain from one of the sub sectors
selected from previous exercise
1. Main actors
input suppliers
Producers
collectors
bulking
processors
Wholesalers
Retailers
Consumers
2. Secondary actors
Research institutions
Government organizations
non-government organizations
3. Facilitators
Draw a draft map
70. Different donor approach
1. A “comprehensive planning approach”
based on detailed analytical value chain mapping
and market analysis preceding interventions;
it uses different methodologies:
to map the physical flow of commodities along
the chain, output values at different stages of
value chains, export market potentials, the
regional spread of value chains, inter-firm
cooperation, production efficiency, etc.
71. Different donor approach
2. Participatory workshop- centered tools for
value chain analysis with less academic rigor
and stakeholder workshops as a key element;
3. Incentives for private sector-driven projects
whereby donors leave the conception and
implementation of initiatives to corporate
value chain leaders
4. Hybrid (common)
72. Approach comparison
Comprehensive planning
approach
Participatory
workshop-centred
USAID (PVCA), GTZ
ITC (SHAPE),
(Valuelinks), FAO
Mesopartner (PACA)
(Commodity SCA for propoor rural growth),
ILO, FIAS
Incentives for private sector-driven
projects
GTZ (PPP), USAID (Global Development
Alliance), DFID (Business Linkage challenge
fund), Dutch & Danish fund
most complete picture of
the structure and
potentials of a value
chain,
appropriate to draw
the least bureaucratic option as it actively
on stakeholder
involves private change agents and
experiences, it is more ‘governors’ of value chains
flexible and less costly,
Costly and tends to be
donor- rather than
private sector-driven;
Provides less
systematic
information;
it implies a certain risk of subsidizing private
gains rather than public goods, it may
restrict the participation of other
stakeholders, and it makes independent
performance measurement difficult.
74. Upgrading Strategies 1
1 Process improvement (efficiency) :
A Between the actors
B Within one actor
• Logistics: e.g. reducing the time-to-market
• Quality: e.g. standardisation and consistency
• Costs: e.g. reducing inputs
• Capacities: e.g. increasing volumes
75. Upgrading Strategies 2
2 Product innovation :
A By one actor
B Cross functional teams
• Improving existing products
• Designing new products
• Creating marketing & design capacity
76. Upgrading Strategies 3
3 Functional upgrading :
A Adding functions
B Changing functions
• Adding sorting, grading & packing functions
• Reducing production and adding exporting
77. Upgrading Strategies 4
4 Moving to other VCs:
A changes upstream
B changes downstream
• Identifying more interesting suppliers
• Identifying more promising market segments
79. A Sub-Sector System:
comprised of multiple value chains
Enabling Environment
• Business
• Political/regulatory
• Socio-Economic
Support Products/
Services Markets
80. A Value Chain System
Final Consumers
Distribution
Enabling
Environment
• Business
• Political/regulatory
• Socio-Economic
Local Markets
Trading /
Processing
Production
Inputs
Value Chain
Support Products/
Services Markets
81. What elements do we Analyze in a Value Chain
System?
• Actors in the value chain and those that support chain
(can be private, public or civil society)
• External environment, or the broader legal / national /
socio cultural / infrastructure / context in which the chain
operates
• Dynamics of the value chain and service markets:
individual and firm behaviors, power structures, and how
these affect the functioning of the chain
• Supply and Demand of the market and the chain
including volumes, cost and pricing, numbers of actors,
consumer preferences
82. What are we looking for in our analysis?
• Constraints affecting the Target group, e.g.:
o Limited Access to inputs
o Lack of information about market demand
o Insufficient finance to grow business
• Opportunities for the target group, e.g.,:
o Growing market demand
o Potential for increased efficiencies and quality
o New varieties available
• Leverage points or new models
83. Leverage Points and New Models
• Ways to upgrade the value chain system (to
the benefit of the target group) that are
targeted, efficient and cost effective
• Do not try to fix everything (triage)
• Identify positive deviants and variations that
are working
• Design value chain programs around these if
possible
84. Value Chain Financing
Financial Services
Financial flows
Inputs
Production
Trading /
Processing
Distribution
Product flows
Support services
Value Chain Financing – external and internal financing, largely credit
Consumption
85. Example Value Chain Actors and
Financial (Credit) Needs
Large and Medium
Exporters and Wholesalers
Working Capital
Line of credit / Overdraft
Long term investment loans
Processors
Working capital
Line of credit / Overdraft
Investment loans
Traders / Dealers
Trade credit
Producer Groups
Investment loans for seasonality
Working capital
Farmers
Savings
Working capital
Input Suppliers
Trade credit
Seasonal credit
86. Producer / Association Model: example,
direct finance and producer association
repayment
Repayment of loans on behalf of farmer
Banks/ SACCOs/ FIs
Ba
ckw
ard
lin and
kag fo
Ba
es rwa
ckw
rd
ard
lin and
kag for
es wa
rd
Bac
kwa
rd a
link nd fo
age rwa
rd
s
Produ
cer As
s
Grower
Finance
Grower
Finance
Finance
Grower
ociatio
n
87. Lead Firm Model: Example, buyer
borrows money, finances chain
Banks / Financial
Institutions
Fin
a
nc
e
Wholesale Buyers
Processors /
Aggregators
Pro
du
Flow of products
cti
on
Flow of finance
Grower
Grower
Grower
Grower
88. Buyer ‘Guarantee’ Model: Example,
buyer confirmed; finance direct to
grower
Finance
Banks / Financial
Institutions
Repayment
si
Processor /
Supermarket
Flow of Finance
e
nc
st a
Flow of products
and services
Finance
s
lA
ts
ica
uc
hn rod
ec
p
T
of
t s,
u
le
Sa
Inp
Grower
Grower
Finance
Grower
Out grower/
Marketing Coop
Grower
Grower
89. Facilitator Driven VC Model: wholesaler /
producer group agreements
Banks
Flow of finance
Flow of services
Flow of facilitation
Service Provider
Buyers
Facilitators
Services
Producer
Associations
Producer
Agreements
Facilitators
90. Example Financing Instruments
Category
Example Financing instrument
Agricultural product based
•
•
•
•
Input supply credit
Buyer credit
Contract farming finance
Direct credit to farmers
Physical asset based
• Warehouse receipt system
• Re-purchase agreements
• Leasing for production, processing etc.
Risk mitigation
• Insurance
• Futures
Financial enhancements
• Loan Guarantee
93. Monitoring is an ongoing
activity!
• Projects and Programmes need to follow-up
their progress
• Successes and failures need to be looked at
while projects and programmes are running
• Monitoring is an internalised process of team
communication, continuously undertaken
while implementing, whereas
• Evaluation is an act of stopping
implementation to reflect past activities (but
drawing from information from monitoring).
94. The World of Impact
Monitoring
Performance Monitoring
Impact Monitoring
Process Monitoring
Result-based Monitoring
Input Monitoring
Impact Indicators
Activity Monitoring
Impact Model
Implementation Monitoring
Impact Assessment
Evaluation
Outreach
Outcome
Impact Chain
Output Monitoring
Outputs
Benefits
Impacts
95. What to monitor in projects –
Performance & Impact Monitoring
Performance
Impact
• Observing outputs
against planned
activities
• Focussing on effect
of outputs: impacts!
• Providing
information for
project management
• Day-to-day activity
To trigger short-term
adjustments in
operation
• Observing the direct
benefit of outputs
• Strategic steering of
implementation
To self-evaluate
whether activities
contribute to
objectives
96. Impacts are ...
... changes that have a causal - or at least a
plausible - link to a project/programme
... a change of circumstances as a consequence of
an intervention, it can be intended or
unintended, positive or negative.
... there: from the first moment of intervention and
they continue to occur all the time.
... rather the result of social interaction than a
straight-forward interventions
... the result of complex interactions and thus, a
complex matter to deal with!
97. Model of Interaction
Direct of Output
Indirect
Use Benefit
Project Benefit
Engel, P., The Social Organization of Innovation, 1997
98. The GTZ Impact Model (II)
Indirect
Benefit
Direct
Benefit
(Goal)
Use
of
Outp
uts
ution?
Attrib
ation !
Observ
Poverty
Alleviation
Output
s
GTZ
Activi
tiesPartn
100. Impact Models: A chain of changes
What do we expect to happen in value chain promotion?
Intervention;
i.e. extension
Specific
Input
providers
Primary
producers
Specific
Inputs
Production
Specific
Inputs
C
H
Logistics
centres,
Industry
Transformation
Trade
Transformation
A
N
G
Final Consumers
Traders
Consumption
Trade
E
Consumption
!
101.
102. Indicators in Value Chains
„There is increasing interest in, and use of, private
sector tools for performance and impact measurement;
i.e. consumer market research tools for measuring
changes in markets and private sector business tools
for measuring service provider performance.“
Some examples:
• Customer satisfaction
• Repeated customers
• Number of enterprises demanding a service
• Satisfaction with last service purchased
• Percentage of women-owned enterprises
103. Group work
1. Group one – AVH, CCGG and ASE
(Shara)
2. Group two – GPDI, AFD, SOS Sahel,
EAPDA (Mango)
3. Group three – GPDI, AFD, SOS Sahel,
EAPDA (Banana)
104. Instruction for field work
• Map and analyze the value chain for the main
commodity you selected
1. Functions
2. Operations
3. Number of actors per function
4. Relation between actors
5. Volume per operation
6. SGM per actor
7. Critical Success Factor for selected commodity
8. Support actors and their functions
9. Strength and weakness
10. Factors affecting primary production
11. Macro environment influence
105. Guideline for presentation
• Value chain map
• Value chain analysis:
• What are the main bottlenecks in the chain
• What are the opportunities to strength the
chain
• What are the opportunities to promote the
local product
• Conclusion
• What are the potential contribution of this
particular Value chain for HH livelihood and
Food Security
107. Brainstorming points
1. What do you understand from market
information?
2. Where do you get market information?
3. How do you get market information?
4. Do you get market information timely?
108. Definition: ‘Any information used or
required to support marketing decisions’
•It can range from simple average price to information like;
•long term price trend
•Quality of produce,
•Volumes of supply and demand,
•Weather conditions from areas where commodities are coming
from,
•Location
•New crop varieties in the market,
•Product suppliers and potential buyers and their characteristics
•Production and Marketing costs
•Seasonal tendencies like harvest or planting time, etc
109. Cont…
• In principle market information is a business
resource that contributes to the know – how and
increases the chances for agricultural chain actors to
manage prevailing situations and plan for the future
market opportunities.
• In business, market information influences two
functions of business that is Production and
Marketing.
• The information obtained will assist them to verify
the following perimeters in either production or
marketing;-
110. Cont …
Production
To Determine :
-Quantities produced for
given market
Marketing
To;
Support the farmers/trader to sell more
to the current buyers
-Quality desired by buyers
Support the sourcing and research for
better markets
-Time of demand (variations
in seasons)
Secure medium and long term markets
for sustainable production
The allowed transaction cost
Secure market that offer the best prices.
111. Cont…
• All business activities involved in the movement of
commodities from production to consumption is
marketing. [Referred to as a supply chain]’
• Therefore farmer’s market information needs are
those that enable them make rational and relevant
decisions.
• Market information offers essential pivoting
resources to the chain actors with a view of making
them competitive and better players in the market.
112. Cont…
•
Agricultural Market information essentially fulfils some of the key facts of
market chain actor’s competitiveness in the market by;-
–
–
–
–
Become better informed than the competitors or suppliers
Be able to dictate terms of purchase or supply
Maximize the bargaining power
To enable appropriate planning within give supply chain and
season
– To make enough money from each harvest at the time of sale.
•
Market information services have the function of collecting and processing
market data systematically and continuously, and of making it available to
market participants in a form relevant to their decision making.
113. Market information needed by small scale
farmers include:
• Information on:
– product planning
– price details of seeds, fertilizers, pesticides and their
availabilities
– current prices.
– forecast of market trends
– sales of timing
– improved marketing practices
– the product season predictions based on weather patterns
– group marketing opportunities
114. Possible Forms of disseminations
People based
Electronic Media
Print Media
Development field staff
FM radios
Newsletter
Contact farmers
Television
Public Notices boards
School teachers, religious
leaders, opinion leaders
SMS- Mobile
Newspapers
Private sector agribusiness
Internet
Posters
Extension workers
Emails
Pamphlets
Marketing animators
Info village booths
115. Challenges and Constraints in Agricultural
Marketing Information Disseminations
Challenges
Accessibility
Interpretation
Storage
Usability
Two major constraints
Cost of acquisition
Knowledge of availability
116. Different tools to obtain Market Information
•
Internal records and reports
•
Conducting market research
•
Through a deliberate design of market intelligence systems and marketing
information models to provide marketing insights and support the decision
makers
•
Informal networking and sharing; many of the organizations, entrepreneurs,
and farmers gain marketing knowledge and insights in such ways
•
Organizing meetings, workshops, visits for various purposes among business
partners and stakeholders (eg. MSPs, business arrangement meetings, etc)
•
Attending trade fairs
117. Market Information and VCD
Input
suppliers
Producers
Traders/
collectors
Processors
Distribution
channels
(export
/import/
domestic)
Markets
(intl/ domestic)
•Knowledge of the market
• helps to identify opportunities, challenge and
requirements for success
• helps stakeholders make informed decisions on their
production and commercial activities
• helps to implement strategies and adoption of
Market Information
Price
innovations to maintain the competitiveness of the
Quality
business and the value chain
Quantity
• contributes to market transparency: levels the ground
Availability
for players -impacts governances
118. The value chain Information Divide
VC Segment
Inputs
Production
Processing/exporters
Logistics
Consumer
Small scale farmers
Large scale farmers
Farmer Groups
SMEs /Local private
companies,
Regional Processors
MNCs
Retailers
Wholesalers,
brokers
Transporters,
Warehousing
Households
Primary
Actors
Traders
manufacturers,
public and
private input
providers
Secondary
Actors
Information
Required
Information
Sources
Financiers, Government, Donors, Researchers, Quality and Standards Bodies,
Info service providers, BDS
Prices
Standards
Volumes
Market
Profitability
Input Costs/ Services
Profitability
Level of Demand
Markets/ Weather etc
Standards/ improved
technology
Sources of supply
Capacity utilisation
Trends/ Markets /
Profitability
Standards
Volume/
Capacity
Utilisation/
Profitability/quality
requirements
Availability
Quality
Price
Value for Money
Own records
Orders/
Contracts
Sector studies
Govt bulletins/Group
Meetings/
Radio/ Mobile/ Contracts
Traders/other farmers
Own records
Orders/ Contracts
Sector studies
Market research
Producers/
Traders/information
service provides
(public or private)
Orders/ Contracts
Own records
Sector
studies/Traders/inf
ormation service
provides (public or
private)
Marketing
Campaigns
News/ Press
Own experience
119. Access to Information by VC actors
• Traders and processors/exports have their own
networks to access up-to-date market information and
are keen on investing to acquire the right information
• On the other hand producers (small scale farmers) are
commonly isolated and suffer from lack of
information.
Brain storm on the reasons why farmers lack market
information compared to other actors in the value
chain?
120. Market Information System
An MIS is a public or private service, which regularly
collects information on markets and
communicates it timely and on a regular basis
through various media to farmers, traders,
companies, government officials, policymakers
and other interested persons
121. Types of MIS
Different types of MIS
Public (Government-run
MIS)
Example: common in most
developing countries under
the ministry of Agriculture
Strengths
Weakness
•Are independent and unbiased
•Do not always reach the
smaller farmers
•May not be up-to-date or may
be made available too late to be
of any use
•May not be very accurate
•Provide little analysis
•Offer information over several
years
•Provide information that can
be used to help farmers get
better prices and plan for
production
•Free
MIS by Non-governmental
Organizations (LINKS by
ILRI, Market Node by
CARE)
•Unbiased
•Accurate
•Free
•Accessible by small holders
•Not sustainable
•Only reach small groups
122. Cont …
Type of MIS
Strengths
Weakness
-up-to-date
-not biased
-not comprehensive
-costly
-may not be easily accessible
Traders, agro-processors or
exporters
-up-to-date information
-might be biased
-semi-accessible
-costly
(EPOSPEA, EHBPA, contract
farming)
-sustainable
Stakeholders initiated MIS
-is based on needs of actors
-un biased
-accessible
-up-to-date and accurate
-highly dependant on
stakeholders commitment
(Producer groups, or
individual Farmers)
-easily accessible
-highly accepted /trusted source
-may not be accurate
-is not comprehensive
BDS providers
(‘Reuters Market Light’ in
India)
124. Main tips for designing an MIS
• Start small and grow big later on: Experience
shows that it is always better to start the MIS
small and expand it later, according to resources
and skills needed for gradual management and
reinforcement.
• Focus on priority and essential information
• Use already available information sources to
avoid duplication
• Find ways of simplifying and reducing charges
for collecting and processing.
125. Exercise
• For each value chain
1. List out the information need (gap)
2. Identify existing structures and information sources
available
3. Make recommendation on how to build on existing
initiatives to put in place better MIS in the sector?
129. Business Development Services (BDS)
are services that improve the performance of the enterprise, its
access to markets, and its ability to compete.
is a wide array of business services, both strategic and
operational.
are designed to serve individual businesses, as opposed to the
larger business community.
Is the wide array of non-financial services critical to the entry,
survival, productivity, competitiveness, and growth of SEs.
include training, consultancy and advisory services, marketing
assistance, information, technology development and transfer,
and business linkage promotion.
130. A distinction between "operational" and "strategic"
business services.
• Operational services are those needed for day-to-day
operations, such as information and communications,
management of accounts and regulations.
• Strategic services are used by the enterprise to address
medium- and long-term issues in order to improve the
performance of the enterprise,
• Access to markets, and its ability to compete.
• For example, strategic services can help the enterprise to identify
and service markets, design products, set up facilities, and seek
financing.
131. Specific areas of BDS service
•
•
•
•
•
•
•
Market information
Entrepreneurship training
Market research
Facilitate & linkage with technologies
Advisory support & technical services
Provide non financial services
Consultancy service on the areas of marketing and agricultural
entrepreneurship promotion
• Introduce and sell new technologies such as – equipments,
tools, ideas etc
• Provide Technical service
• Sample Business plan format
132. Business plan (BP)
• A BP is a written document
– carefully prepared by an entrepreneur or a business
development service provider that describes
• the objective of the business,
• the proposed action with the necessary steps to enable
the business to reach those objectives.
• Planning is thinking & working out
– what to do, how to do & when to do relevant activities
• A BP is a profile of your business made up of partly words and
partly numbers.
– The word describe about your business, products and or
service, customers, competitors, operations, sales,
marketing, etc.
– The numbers estimate your cash flow, income & expenses,
balance sheet, break-even analysis, etc.
136. Entrepreneur is a person
• Who organizes, manages and assumes risk of running an
enterprise
• Who owns a business
– sell of manufacturing (any product), Trading (buying & selling), Service
business at profit
• Who Does new things or does in new ways
– Have high drive and higher activity level
– Constantly aim to achieve goals and guided by their goals and work hard
– Know their strength and weakness and resources and constraints while
striving for their goals
137. What are the differences between characteristic of
an entrepreneur and self employed?
Entrepreneurship and IGA/Self Employment
Self Employment /IGA
– A women running a
small business
establishment &
looking after her
business all alone is
said to be self
employment
Entrepreneur
• When a women starts a small
business & employs few to keep it
running but manages the
enterprises
• Is who initiates & establish econ.
Activity/enterprise
• All entrepreneurs are self employed
but all self employed aren’t
entrepreneurs.
138. Process of Entrepreneurial dev’t
( three features)
Motivation, developing
economic insight ,
promoting managerial
skill, confidence,
information, etc
2. Development
Identification,
selection,
1.Initiation
Process of
Entrepreneurial
Dev’t
3. Support
Establishing and running
an enterprise (finance,
working place, machinery,
power, incentives, etc)
139. What are the factors that influence entrepreneurship?
Gov. policy
Financial
availability
Infrastructure
Econ. Dev’t
External env’t
Socio cultural
factors
140. What are the steps that an entrepreneur will take to set
up and manage her business?
143. Plenary: What are the typical
gender challenges of women
entrepreneurs?
•
•
•
•
•
Gender biased and self imaging
Balancing work & family responsibility
Gender stereotyping
Physical and psychological intimidation
Lack of opportunity for decision making
144. Group work: Problem tree analysis
• Pictorial and symbolic presentation of a tree
• Instructions for Problem Tree Analysis
• What are the factors that hinder women
business owners from success?
• Use a picture of tree & include the following
145. 1. Choose a problems in starting an enterprise: social (family,
community, religious, etc); economic and Gender
2. What do women would like to achieve/see in society: Specific
results/benefits - leaves
3. Social supports (gov’t & non-gov’t inst.) -Trunk
4. Roots causes responsible for limiting women to achieve what
they want: Beliefs, values/attitude
See the possibility of being responsible for the risks involved in the
establishment of the enterprise
146. What are the major challenges in
Enterprise development?
• Access to adequate and timely support
• Perception of the society
– bias against women:- acceptance of women as
entrepreneur; dilemma women’s role as mother
& entrepreneurs; lack decision making
opportunity, etc
• What can be done?
– entrepreneurial attitude & behavior
competencies
147. Summary: Why Women Entrepreneurship development
The main objectives
• To increase HHs income and ensure alterative livelihood
options – build effective/successful enterprise
• To motivate and reinforce the entrepreneurial traits &
abilities - Behavioral inputs and build confidence to overcome
fear of failure
• To facilitate decision to setup new enterprise /expand existing
ones - Business opportunity input
• To develop required managerial skill & competencies for
making enterprise successful -Information inputs,
Technical/commercial inputs, Managerial input
149. Personal Entrepreneurial Attitudes and traits (PEC)
1. Initiatives
2. See and Acts
on opportunities
3. Persistence
4. Information
seeking
13. Risk taking
PEC
5. Concern for high
quality, innovation
and efficiency
12. Goal setting
6. Commitment to
work contract
11. Use influencing
strategies
7. Systematic
planning
10. Persuasion
8. Problem solving
9. Self confidence
Professor David McClelland, 1983 research on Personal Entrepreneurial Behavioral Competencies(PEBC)
152. What does facilitation mean?
• Facilitation:
– Is to help others to use their potential not
our potential
– Is providing information not teaching
– Supporting not directing
– Understanding how it is for others
– Inquiring – not interrogating
153. Good facilitation requires the following
• Creating safe environment for people to share
experiences, make mistakes disagree with you
– Make sure they have enough space for self responsibility,
initiative, risk/possibility, etc.
– Appreciate contributions & those sharing challenges
– Help people to solve their own problems – do not be tempted
to give solution by yourself
– Celebrate success and congratulate on failure – see it as
opportunity to learn about self
– Let others know that you understand their feelings and
statements
154. Cont…
• Be a role model
– Give easy access to info., clear advice & ensure by paraphrasing
– Recognize with courtesy & listen with full presence – all ideas are
valid
– Assess congruence of conversations on meetings
– Make sure that you declare lessons you learnt at each meeting &
complement
– Maintain tone of respect, express your feelings clearly
– Admit your mistakes publicly – say it out
– Invite your people to give you feedback, appreciate it and complement
Notas do Editor
Main Points/Highlights:
Based on these models and our past experience, we came up with a short list to assess the competitiveness of the industries.
We can look at these different factors and weigh them when comparing industries.
As you see, we did not assign any weights to any of them. One might find some stronger than others-selection is as much of an art as a process.
Whether or not indsutries can remain competitive is an important question, but so is the question as to whether new, nascent or even not yet existent industries have the potential to be competitive ( example, Ethiopia didn’t have cut flower industry three years ago, today it represents 20% of the value of its largest export commodity—coffee)
Instructions:
► Move to next slide.
Instructions:
Explain functions and actors in detail. (These are only illustrative functions. They will be different every value chain. In horticulture, you’ll see retailers, national retailers and global retailers. )
► Move to next slide.
Subsector = horticulture ; Subsector = apricot
NB: If value chain, fresh apricto, dried apricot or apricot juice)
A type of economic system ; VC for apricot juice
Gradual differences, but it is a contiuum from nitty-gritty activity and input monitoring to the overall aggregated impact level.
Performance Monitoring day-to-day management, including finances,
Impact Monitoring: can be called result.based Monitoring, allows management with an acceptable degree of accuracy to name the causal effects between inputs and direct and indirect benefits
Impact Assessment is an evaluation, performed by externals, looking at high aggregated level, i.e. food security or poverty reduction
Nagel & Balzer IM for CGIAR,
QUESTION: Who of you has seen this picture before?
This a little bit confusing picture attempts to illustrate what is meant by impacts. We live in a complex reality, or a complex social system. We start a project, that might create utility for a couple of individuals. Furthermore, a larger number of individuals might directly benefit from the project activities. But even a larger, formerly unknown number of individuals can generate indirect benefit (or harm) from the project activities, because in the complex environment, actions are interlinked.
All this refers to social theory of innovation, which says that innovation is the result of social interaction.
Just briefly to mention, what is understood by impact:
And Development cooperation is understood as an intervention that always provoques impacts. However, it is now more important to trace these impacts in order to check, whether the programme or project is still on its track. This led to a change in the conceptual perception of the programme or project context:
Example: Road for ag marketing – other people benefit – public good nature of outputs - HIV
To Engel: As a general theoretical approach to guide an investigation of the social organization of innovation, the linear model is clearly to be discarded. The linear model refers to just one of many possible structural arrangements for innovation...Our studies point to a highly diverse universe of social actors, ...(where) science and technology do not necessarily play the dominant role in innovation processes. Our studies confirm that those who control marketing channels (such as processing plants and retail chains) are among the potential leaders in innovation theatres as well...The chain—linked model…tends to underrate the relevance of those social actors who control financial resources and political agendas, as well as those who actually operate farms...As a result, generally it is not a linear structural arrangement that emerges, nor one with a double focus, but a multiple one, with many social actors playing roles and strategizing to gain leadership. In other words, the linear and chain—link models do not cover or possible situations; instead they represent particular structural arrangements that may emerge as a result of negotiations among dominant social actors at a given point in time.
Soziologische Systemtheorie: Das Dogma des Kausalitätsdenkens (Willke) weicht der Einsicht, „dass Kausalzusammenhänge im Ganzen nicht in exekutiven Ketten, sondern in funktionalen Netzen voeliegen. Die Gesamtkausalität enthält zwar Ketten, diese sind winzige Ausschnitte im Netz.“ (Riedle, 1982, S. 136)
Example roads – QUESTION: what else could contribute to higher income?
And the same holds true for the impact model. The identified activities are supported by a German input. We have a programme or project output, which might generate direct benefit , and indirect benefit - which all together might contribute to an allover development goal, such as poverty alleviation. However, the farer away from the output level, the more other factors are contributing in complex systems.
In the best case, our contribution to poverty alleviation is only one among an unknown number of others - an that is why the famous “Attribution gap” occurs; it is difficult to measure, which impact GTZ had on poverty alleviation.
But that doesn’t mean we cannot observe the overall development trends in the country we are working in – we are even obliged to always keep an eye on the overall social indicators – after all, development cooperation is ultimately meant to alleviate poverty!
AURA impact indicators only describe the objective level, which can be measured, but to be honest at the level of direct benefit. Thus, the level of objectives in the project proposals is reduced to the impacts on utility, maximum to direct benefit level. This will be measured, the attribution gap at higher level has to be accepted.
We are not sticking flags anymore – we are part of the system – and should be decent with „our“ achievemnts!
Let‘s be honest with the on-linearity of attribution!
Problematik der Signifikanz des deutschen Beitrags
QUESTION: What should happen in value chain promotion? The same than in any other project: positive change!
Positive Change – Improvments; and follwoing the vc logic, a positive change in production should spill over to the rest oif the chain;
i.e. better farming techniques lead to an improved handling of inputs; better extension on MRL leeads to more careful operation with chemicals, the transformation is easier; compliance with trade standards and higher consumer satisfaction! (ggf. auch nochmal graphisch darstellen...)
But: can we alsways expect our interventions to trigger such chain effects? (Frage an die Gruppe zur Diskussion)
This leads us to the question: What is a good indicator?
SMART-Principle !
The ordinary agricultural stuff we know, but here we can learn from the BDS school ..... Private sector promotion requires private sector tools!
Refernce: BDS Primer manual!!!