Enterprise Ecosystem Development

The main objective of this component is to create an enabling rural business development ecosystem.

It undertakes the following:

• Diagnostic studies (district analysis, value chain analysis, sector/sub-sector identification)
• Finding potential enterprises through participatory methods for promoting rural enterprises (groups and individuals)
• Strengthening existing rural enterprises, identifying market and value chain development opportunities
• Providing business development support services with informed pathways to develop sustainable businesses with a primary focus on promoting women-led enterprises and green enterprises

VALUE CHAIN DEVELOPMENT

Although rural economic actors are independent, many are part of an integrated chain of economic functions and linkages. All the activities that connect a specific raw material to its various end-markets is collectively called a “value chain”. In rural value chains, market sizes differ dramatically among the actors. Available markets are usually much smaller for actors further up the chain (toward the primary producers), making it less attractive and riskier for them to invest in technical improvements or expanding production. By understanding the processes involved in the production, distribution, and sales of a product or service, it is possible to identify the main sources of growth in a chain, the distribution of margins and profits, and the key leverage points of that can be enhanced in order for chain actors to deliver higher value and increase their income. Often, this is achieved through solutions that overcoming the consequences of being a small-scale producer.

UVBS value chain research and development toolkit has been designed especially for rural-tribal producers. It focuses particularly on market size and market linkage (for purchases of inputs as well as sales of outputs) in order to create incentives for investment and expansion.

ENTREPRENEURSHIP

Most rural economic actors get by rather than get ahead because they run their farm or enterprise as a livelihood activity rather than as a business. The shift from conducting a livelihood activity to managing a business is first and foremost a matter of changing mindsets. UVBS’s entrepreneurship development program begins by addressing attitudes before it enhances knowledge and skills, drawing on each client’s own dreams and experiences as the source of inspiration.

After gaining an understanding of the key characteristics shared by entrepreneurs––goal setting, commitment, motivation, risk taking, and decision-making––participants are equipped with the necessary knowledge of the concept of enterprise development and management, enabling them to assess the potentials of an enterprise and the areas for improvement that can contribute to an increase in income.

In order to acquire knowledge of the various aspects of an enterprise and to be able to assess weaknesses and areas for improvement, UVBS also introduces participants to the enterprise development cycle:

• Identify and explore enterprise opportunities
• Assess challenges and devise their solutions
• Preparing a business plan
• Establish/Scale/Diversify an enterprise
• Tracking and Evaluation (reviewing performance)
• Handholding during critical enterprise stages