This paper focuses on lessons related to the development of viable medium, small and micro-enterprises (SMMEs) based on non-timber products in East Nusa Tenggara (ENT), Indonesia, that are relevant to the international aid shift towards private sector development and women’s economic empowerment. Most of the products traded in the 11 428 market stalls surveyed in informal-sector market places in ENT were not from forests or agroforests, but were vegetables, second-hand clothes and other products. Most of the forest and agro-forestry products being sold were low entry-point, low-value products, sold as part of people’s survival or coping strategies. Nevertheless, a few specialist products, such as indigo, hand-woven textiles, Symplocos leaf mordants and Lygodium fern baskets, have been remarkably successful in reaching global markets. Developing business partnerships with local producer groups and entrepreneurs is easier said than done, and requires strategic choices. In addition, enterprises need to be economically viable. At first, palm sugar from Borassus flabellifer, for example, seemed to be a viable product, but the costs of the fuelwood used to boil palm sap to produce palm sugar is the major constraint on palm sugar producers and household income. Ten barriers facing entry of non-timber products into commercial markets are identified that should be taken into account if long-term enterprise development based on these products is to succeed in the long term.
Tag: small enterprises
Value chain research and development: The quest for impact
For decades, governments, donors, and practitioners have promoted market-based development approaches (MBDA), most recently in the form of value chain development (VCD), to spur economic growth and reduce poverty. Changes in approaches have been shaped by funders, practitioners and researchers in ways that are incompletely appreciated. We address the following questions: (1) how have researchers and practitioners shaped discussions on MBDA?; and (2) how has research stimulated practice, and how has practice informed research? We hypothesize that stronger exchange between researchers and practitioners increases the relevance and impact of value chain research and development. We adopt Downs’ (1972) concept of issue-attention cycles, which posits that attention to a particular issue follows a pattern where, first, excitement builds over potential solutions; followed by disenchantment as the inherent complexity, trade-offs, and resources required to solve it become apparent; and consequently attention moves on to a new issue. We review the literature on MBDA to see how far this framing applies. We identify five cycles of approaches to market-based development over the last 40 or more years: (1) non-traditional agricultural exports; (2) small and medium enterprise development; (3) value chains with a globalization perspective; (4) value chains with an agri-business perspective; and (5) value chain development. The shaping and sequencing of these cycles reflect researchers’ tendency to analyse and criticize MBDA, while providing limited guidance on workable improvements; practitioners’ reluctance to engage in critical reflection on their programmes; and an institutional and funding environment that encourages new approaches. Future MBDA will benefit from stronger engagement between researchers, practitioners, and funders. Before shifting attention to new concepts and approaches, achievements and failures in previous cycles need to be scrutinized. Evidence-based practice should extend for the length of the issue-attention cycle; preferably it should arrest the cycling of attention. Funders can help by requiring grantees to critically reflect on past action, by providing “safe spaces” for sharing such reflections, and by engaging in joint learning with practitioners and researchers.
Value chain development in Nicaragua: Prevailing approaches and tools and persistent gaps
This chapter draws on four contrasting cases of value chain development (VCD) in Nicaragua to assess approaches and tools used in design and implementation. We interviewed 28 representatives from the international NGOs leading the interventions, the local NGOs that participated in implementation, principal buyers, and cooperatives. Despite the complexity of market systems, results showed a relatively basic approach to VCD, reflected in: 1) reliance on a single tool for design and implementation; 2) expected outcomes based on technical assistance and training for smallholders and cooperatives; 3) local NGOs and cooperatives with key roles in implementation; and 4) limited engagement with other chain actors, service providers, and researchers. We conclude with a call for a broader approach to VCD, based on a combination of tools to account for multiple, context-specific needs of diverse stakeholders, deeper collaboration between key actors within and outside the value chain, and evidence-based reflection and learning.
Building micro, small and medium enterprises’ capacity and access to green finance through the Land Finance Hub: A case study of Indonesian MSMEs
Key Messages
- The Land Finance Hub is a platform for financiers and MSMEs seeking to transform sustainable production systems
- The Hub calls for financiers with diverse investment interests and a wider geographical focus
- Agriculture and forestry MSMEs in the Land Finance Hub mostly comprise micro enterprises lacking access to private commercial finance
- Women hold multiple roles in MSMEs as owners, managers, workers and investors
- Beyond matchmaking, bridging green finance to agriculture and forestry MSMEs requires a lever to improve visibility, access and financial literacy.
Key Messages
- The Land Finance Hub is a platform for financiers and MSMEs seeking to transform sustainable production systems
- The Hub calls for financiers with diverse investment interests and a wider geographical focus
- Agriculture and forestry MSMEs in the Land Finance Hub mostly comprise micro enterprises lacking access to private commercial finance
- Women hold multiple roles in MSMEs as owners, managers, workers and investors
- Beyond matchmaking, bridging green finance to agriculture and forestry MSMEs requires a lever to improve visibility, access and financial literacy.
Key Messages
- The Land Finance Hub is a platform for financiers and MSMEs seeking to transform sustainable production systems
- The Hub calls for financiers with diverse investment interests and a wider geographical focus
- Agriculture and forestry MSMEs in the Land Finance Hub mostly comprise micro enterprises lacking access to private commercial finance
- Women hold multiple roles in MSMEs as owners, managers, workers and investors
- Beyond matchmaking, bridging green finance to agriculture and forestry MSMEs requires a lever to improve visibility, access and financial literacy.
Key Messages
- The Land Finance Hub is a platform for financiers and MSMEs seeking to transform sustainable production systems
- The Hub calls for financiers with diverse investment interests and a wider geographical focus
- Agriculture and forestry MSMEs in the Land Finance Hub mostly comprise micro enterprises lacking access to private commercial finance
- Women hold multiple roles in MSMEs as owners, managers, workers and investors
- Beyond matchmaking, bridging green finance to agriculture and forestry MSMEs requires a lever to improve visibility, access and financial literacy.
Key Messages
- The Land Finance Hub is a platform for financiers and MSMEs seeking to transform sustainable production systems
- The Hub calls for financiers with diverse investment interests and a wider geographical focus
- Agriculture and forestry MSMEs in the Land Finance Hub mostly comprise micro enterprises lacking access to private commercial finance
- Women hold multiple roles in MSMEs as owners, managers, workers and investors
- Beyond matchmaking, bridging green finance to agriculture and forestry MSMEs requires a lever to improve visibility, access and financial literacy.
Key Messages
- The Land Finance Hub is a platform for financiers and MSMEs seeking to transform sustainable production systems
- The Hub calls for financiers with diverse investment interests and a wider geographical focus
- Agriculture and forestry MSMEs in the Land Finance Hub mostly comprise micro enterprises lacking access to private commercial finance
- Women hold multiple roles in MSMEs as owners, managers, workers and investors
- Beyond matchmaking, bridging green finance to agriculture and forestry MSMEs requires a lever to improve visibility, access and financial literacy.
Key Messages
- The Land Finance Hub is a platform for financiers and MSMEs seeking to transform sustainable production systems
- The Hub calls for financiers with diverse investment interests and a wider geographical focus
- Agriculture and forestry MSMEs in the Land Finance Hub mostly comprise micro enterprises lacking access to private commercial finance
- Women hold multiple roles in MSMEs as owners, managers, workers and investors
- Beyond matchmaking, bridging green finance to agriculture and forestry MSMEs requires a lever to improve visibility, access and financial literacy.