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Enterprise Development Partnership Proposal

The document outlines a proposal for a private business partnership aimed at enhancing economic development through enterprise and marketing initiatives at the community level. It identifies challenges faced by communities and proposes a methodology for establishing partnerships with local businesses to improve household income and access to essential services, such as safe drinking water. The project targets families in specific municipalities in Surigao del Sur, with a total budget of 1.8 million to achieve sustainable economic benefits and improved health outcomes.

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Vincent Lamban
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31 views4 pages

Enterprise Development Partnership Proposal

The document outlines a proposal for a private business partnership aimed at enhancing economic development through enterprise and marketing initiatives at the community level. It identifies challenges faced by communities and proposes a methodology for establishing partnerships with local businesses to improve household income and access to essential services, such as safe drinking water. The project targets families in specific municipalities in Surigao del Sur, with a total budget of 1.8 million to achieve sustainable economic benefits and improved health outcomes.

Uploaded by

Vincent Lamban
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Concept Note:

I. Rationale of the Intention to Partner


Enterprise and marketing development is one of the programmatic approaches of the economic
development. These include identification, development of enterprises at the household and
community-level using the value-chain framework; develop products/services appropriate and
responsive to needs of target clientele; and market development by opening new markets and
facilitating links of farmers/communities to market. All of these are linked in increasing number
of families engaged in economic activities that redound in increasing their household income.
However, there are many challenges faced by ADP staffs, families and communities in their
quest to develop a more viable enterprise. Some of the challenges are:
 Lack technical skills to identify viable growth-oriented enterprise
 The management knowhow, skills and experience to operate and manage a growth-
oriented enterprise is limited both at the household and institution (CBO) level;
 There are financial resources that can be used as start-up to various business
enterprises but this was under utilized due to lack of knowledge on possible
opportunities.
 Explore potential business partner to increase income of CBO for continuing opertion
 Economic development sustainability are still vague

II. Proposed Methodology or Process


Despite of these challenges, it is now imperative to ADP to look for other opportunities where
they generate additional income through enterprise development. This can be done through
family-based initiatives, institution-level (CBO) and private business individuals and companies
who now prosper in their businesses. The latter is a new economic development model where
institution like CBO can venture too to maximize:
 Benefit to the families through massive patronage of the business products and other
offering;
 Maximize available resources for more impact initiative
 Lessen the burden of business management through private business partnership
 Contribute to sustainability mechanism for economic development

1. Seeking appropriate WVDF approval for the intention to establish private business
partnership.

2. Research and Identify partnering opportunity in the market


Research on the current market and business players locally available in the community.
This would help the core team to identify all possible potential partnering opportunity in
the municipal,provincial and regional areas where ADP is working. List may include:
 Name of Institution/Business Establishment
 Address
 Area of Operation
 Business Implemented or Services Offered
 Main Contact Person
 Registration or Legal Details
 Area of Possible Collaboration/Partnering

3. Identify/create business partnering criteria


Core team based on their needs and objectives must set their criteria for partner selection.
Some criteria may include:
a. Number of years in the business
b. Type of Business
Business type must be:
 related to CWB i.e. water, food, education, health and agricultural sector or
enterprises;
 others that may be related to CWB; and
 Majority of families are consuming/patronizing and will potentially benefit in the
business
b. Reputation of the Business and its Owners
c. Others that may deem appropriate based in the context of the ADP

4. Create list of prospective business partners


From the list of all potential business partners, cross examine list based on the criteria set
for partnering and short list the potential company and the business. Core team may do a
point system to rate each potential company. Retain at least 2 to 3 potential with highest
potential to partner.

5. Initial Business meeting with prospective partners

After short-listing of prospective business partners, core team may organize and invite an
initial meeting with the potential business partner. Focus of meeting include:
 Orientation of the organization (CBO and the prospective business companies)
 Orientation of the business
 Discussion of areas for potential partnership
o Fund investment
o Buying of stocks
o Franchising
 Procedures for potential partnering

6. Screening of short-listed prospective partners against define criteria

Based on the information generated from the initial meeting with the prospective private
business partner, core team to select what business to engage with and whose company to
partner with. Once decided, CBO will submit letter of intention to invest or partner to the
business company. In this period, the company need send formal offer of partnership
through draft business proposal or investment proposal.

7. Review of Proposal

Once the company provided the proposal, the core team will review the terms and
conditions of the agreement. This includes but not limited
1) amount of investment, investment interest,
2)time frame (semi-annual, yearly, etc) and
3) other conditions that may set forth by the company.

Some technical consideration during the review of the agreement:\


 Technical soundness of the Business being partnered with
 Financial Viability of the proposed business. This can be measured in terms of:
 Capital requirement vis-à-vis the expected benefit gained
 Return of Investment
 Payback Period
 Financial Security and Soundness of the company
 Sales Revenue Performance for the last 5 years
 Sustainability potential or direction of the partnership

Once the ADP/PO management finds the proposed investment or franchise agreement
amenable, ADP/PO will submit final proposal to WVDF through the Field Office
management for approval of the private business partnership. ADP to
submit to FO management the following:
 Mother proposal
 Copy of the agreement proposal sent by the business company
 Photocopy of Registration documents of the company
 Other documents that may deem important to support/justify the
proposal

Once approved by WVDF, CBO can now enter into final agreement with
the private business company.

8. Agreement signing

Formal signing of agreement must be done once all parties (private


business company, WVDF, CBO) are agreed upon in the terms and
conditions set forth.

III. Relation and Contribution to CWBT


Title of the project: Fixed Investment at Esprutingkle Group of Companies
To have access of low cost and safe drinking water to
Specific objective:
household level contributing to health and nutrition of families

Target Areas: - specify area(s) that will 5 municipality and (1) city in the Area Development Program
benefit from the action (city, municipality, (ADP) areas in the Province of Surigao del Sur
villages)
Target group(s)1 Families of farmers, children, and othercommunitymembers

Amount and source of funds proposed A total budget of 1.8 Million


for intended private business
partnership

Objective of Private business partnership


a) To improve access of families to low cost and safe drinking
water
c) To establish effective partnerships, networks, and
community-based structures to improve health and nutrition of
families, children and community through access of low cost
and safe drinking water

Households have year-round access to low cost and safe


Estimatedresults
drinking water for the year-round

Families, children and community enjoy the impact of social


marketing derived from the business resulting to families have
sufficient food and are able to meet at least theirbasic needs

Main activities Establish monitoring system for the business


Document impact of the business to the target groups (CBO)
Linkage to other networks and partners for expansion of the
project (CBO)
Concept

1 “Target groups” are the groups/entities that will be directly/positively affected by the action.

Common questions

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Potential business partners should be evaluated based on criteria such as the number of years in business, type of business (preferably related to critical sectors like water, food, education, health, and agriculture), reputation of the business and its owners, and other context-specific considerations. These criteria are important because they help ensure that partnerships align with community development goals, are reliable, and have the necessary experience and resources to contribute to the program's success .

Partnership with private companies supports the sustainability of community-based economic initiatives by tapping into the companies' expertise, financial resources, and market access. These partnerships allow community-based organizations to reduce management burdens and scale initiatives effectively. Furthermore, private partners can provide continuity and stability through investment and revenue-sharing models that ensure ongoing community benefits and support self-sufficiency in economic efforts, contributing to sustained community development .

The private business partnerships within the Area Development Program aim to achieve objectives such as improving access to low-cost and safe drinking water for families, enhancing health and nutrition through better water availability, and establishing effective partnerships, networks, and community-based structures. These objectives focus on ensuring the availability of essential resources while fostering a collaborative approach that benefits the community's health and economic well-being .

Establishing partnerships with private businesses can contribute to sustainable economic development by providing communities access to markets, maximizing available resources, and reducing the burdens of business management through shared responsibilities. These partnerships can help leverage expertise, increase efficiency, and create a support system that helps community-based organizations venture into profitable sectors. Moreover, they can enhance the sustainability of economic development by integrating with established private businesses that have experience and resources, thus fostering long-term growth .

The proposed outcomes of the fixed investment project at Esprutingkle Group of Companies include providing households with year-round access to low-cost and safe drinking water, which directly contributes to improved health and nutrition for families and children. The broader impact aims at ensuring that communities have sufficient resources to meet their basic needs, fostering social marketing that enhances community well-being, and establishing sustainable community-based structures to promote long-term health benefits and nutritional outcomes .

Essential considerations when reviewing proposals for business partnerships include evaluating the technical soundness and financial viability of the proposed business, analyzing financial security and company performance, and assessing potential for sustainable impact. These factors are critical because they ensure that the partnership will be beneficial, feasible, and aligned with community objectives, thus minimizing risks and enhancing the likelihood of achieving desired economic and social outcomes .

The partnership formation process involves several steps: creating a list of potential business partners based on defined criteria, organizing initial meetings to align interests and expectations, and screening short-listed partners against further refined criteria. Following this, if a partnership appears viable, a community-based organization (CBO) submits a letter of intention to the business company, which then responds with a formal offer through a draft business proposal. The CBO reviews the proposal, assessing technical and financial aspects, and finally, if approved, all parties sign the formal agreement .

One common challenge in developing enterprises at the household level is the lack of technical skills to identify viable growth-oriented enterprises, as well as limited management skills and experience at both household and institutional levels. This can result in underutilization of financial resources, as opportunities for business start-ups may not be adequately recognized or utilized. These challenges can hinder the growth and sustainability of enterprises, reducing their potential to increase household incomes and improve economic conditions .

Establishing criteria for business partnering is important because it ensures that potential partners share compatible goals, resources, and practices with the community development initiatives. By laying out clear criteria, organizations can systematically screen and shortlist potential partners, making the selection process more efficient and effective. This structured approach reduces the likelihood of engaging in partnerships that may not align with the community's needs or development objectives, thereby facilitating focused and goal-oriented collaborations .

The proposed methodology seeks to improve household incomes by fostering enterprise development at the family and community institutional levels. It involves identifying and developing enterprises using a value-chain framework, creating products/services responsive to client needs, and developing markets by connecting farmers and communities to potential markets. Additionally, it emphasizes exploring partnerships with private businesses to leverage their expertise and reduce management burdens, ultimately bolstering household economic activities and income .

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