Partnership for Micro and Small Enterprises (MSES) Resilience PROGRAMMING

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1 Partnership for Micro and Small Enterprises (MSES) Resilience PROGRAMMING Nanang Subana Dirja (OXFAM) and Niko Rinaldi (Jemari Sakato) 21 APRIL 2016 Bangkok, ADPC, ASIA BUSINESS FORUM

2 OUTLINE GETTING STARTED PROJECT AREA IMPLEMENTATION STRATEGY LESSON LEARNT WAY FORWARD Page 2

3 GETTING STARTED End 2014: National Workshop to design a pilot project with NDMA, Ministry of cooperatives, Ministry of Trades, DRP, CSOs, Local Gov representative BCP Concept is analyzed and adapted Area for pilot selected: Agam district and Magelang District Page 3

4 AREA OF PILOT: TIKU VILLAGE 11,358 population (2,401 HHs) with 800 MSEs Sea-Fish Business and Traditional Market as economic backbone Situated at 2 to 15 m above sea level Most prone to tsunami : potential 8.8SR earthquake triggerring water Page 4 height

5 MAP OF MSEs at TIKUSELATAN VILLAGE Market 2 phases of pilots: (1) Fish Processing (40 MSEs) & 5 individual MSEs, (2) Traditional Market (730 MSEs) Page 5

6 IMPLEMENTATION STRATEGI Blending between Business Development and DRM Integrating to existing DRM programming (district and village) and Cooperative Agency programming Disaster Management Agency as the owner for the whole process to nurture Public Private People Partnership mechanism Different types of BCP formulation to include most MSEs in the village: Individual MSE BCP (6 MSEs), Commodity MSEs BCP (40 MSEs of Fish processing) Cluster MSEs BCP (10 MSEs clusters: vegetable, fish trader, restaurants, banks, workshops, grocery, coconut oil, etc.) Area-BCP (800 MSEs) Overseen and reported to national stakeholders coordinated by NDMA Page 6

7 Mapping MSMEs Inception workshop Community Mobiulization & Business Impact Analysis Monitoring dan Implementation Evaluation and Support: MoU, Training, drill, etc Building a Multistakeholder Collaboration Increasing Capacity and Technical Assistance Supporting Mechanism Business Continuity Business Continuity Plan Training Establishment of MSEs Forum Workshop on Multistakeholder Support to implement the MSEs BCP Page 7 Business Continuity Plan Development

8 INDIVIDUAL BUSINESS CONTINUITY PLAN: an MSE of Fish Crispy Producer Participating preparedness activity along with business development TA Pre-Disaster Temporary business site plan in case of disaster self-evacuation & vital asset saving Updated on disaster status Post-Disaster Insurance claim trading business Asset recovery safety net Disaster Disaster Risk Insurance Alternative Raw Materials and Marketing Alternative Business Development Business Equipment improvement Preparedness Saving Asset recovery mechanism by Cooperatives agency Business Impact Assessment Fulfillment of Basic Needs Saving withdrawal to revive business Temporary Business set up Raw Materials from Alternative Location Alternative Marketing BCP activation During Disaster Page 8

9 COMMODITY -BUSINESS CONTINUITY PLAN (C-BCP) : FISH PROCESSING (40 MSEs) P R E DISASTER POST-DISASTER Trainings: Business Development Disaster and Risk Preparedness Insurance Market Recovery System Network Developmen with Development Marine and Fisheries Agency DISASTERS Insurance Claim Alternatives Marketing and Raw Materials Temporary Business Location Strengthening capital through access to bank Personal Saving in Bank Marketing (Establishment of Cooperative processing) Training and Business Development Alternatives EWS & Evacuation Drill The comparative study for potential alternative enterprises Coping with self-help group Basic Needs Evacuation : Safe live and asset Savings Withdrawal Loan rearrangement Running Alternative business New Equipment Procurement Activiation Line of BCP DURING DISASTER Recovery Time : 1-3 MONTH Rather than 1 year Page 9

10 MULTISTAKHOLDER SUPPORT FOR BCP IMPLEMENTATION Public Privat People Partnership (P4) to support MSEs Resilience BPR- Mutiara pesisir PT.Mutiara Agam Palm Oil Processing and CSR PT.Grafika Packaging Design, Business Consultation DMA Agam EWS,Simulation, LRR, Food bank, Facilitation, Evacuation,COORDINATION etc Disaster Saving, insurance andsoft Loan Marine & Fishery Agency Mitigation and Coastal Resilience MSEs SMEs business development and support Cooperative & Trade Agency Andalas University SMEs Technology Equipment SMEs Training Bank Nagari Earthquake resistance campaign Social Welfare Program Emergency Respon Social Agency Jemari Baznas Agam Simulation, First Aid Training Red Cross SMEs License Investment & Business Influencing Policy on MSEs Page 10 Public figures

11 PRIVATE SECTOR SUPPORT for BUSINESS DEVEVELOPMENT PT. GRAFIKA JAYA SUMBAR MOU SIGNING Business Consultation 1. BUSINESS CONSULTATION 2. PRODUCT DEVELOPMENT, PACKAGING & NATIONAL MARKET ACCESS MUTIARA PESISIR (LOCAL BANK) MOU SIGNING TRAINING FACILITATION 1. BOOK-KEEKEEPING TRAINING 2. PICK UP SAVINGSERVICE 3. DISASTER RISK INSURANCE 4. LOAN OPPORTUNITIES Page 11

12 DRM component Disaster Awareness raising by DMA, Jemari Sakato, Red cross, Social Agency, Police, Military, Local Figure Inclusive Evacuation drill by DMA, Social Affairs, Red Cross, HealthAgency, Bank Nagari, etc. Page 12

13 RESULT NATIONAL LEVEL A national working group established to promote MSMEs Resilience: policy framework, guidance, resource center and sharing center, resource mobilization, networking, and programming PROJECT LEVEL Shifting paradigm from profit oriented to business profit and continuity among targeted MSEs with clear BCP before, during, and after disaster Transformative Process: : An MSE Businessworman is confident to mainstream DRR component in the programme of SMEs forum Clear action for stakeholders to support business development integrated with DRM practices as part of BCP implementation Adoption of MSEs resilience programming into district annual programming Page 13

14 LESSON LEARN BCP is applicable to MSEs BCM strategy should include business development and risk and crisis management component Disaster Management Agency is the owner of the MSEs resilience programming for DRM aspect while the Cooperatives and Trade Agency for business development aspect; Public Private People Partnership (P4) mechanism to support BCM will be effective if: Duty bearers act as facilitator Shared-value mechanism is maximized Sustainability of the MSEs Resilience programming can happen: (1) ownership remains at duty bearers, (2) Successful model of BCM at field level, and (3) Influential mechanism of Public Private People Partnership (P4) for programming and policy advocay Page 14

15 WAY FORWARD Producing a Zero Draft of MSMEs Resilience Manual/Guidance Encouraging for establishment of Resource Center for MSMEs Resilience Programming Promotion of MSMEs Resilience programming at National and ASEAN level DRR day in Manado North Sulawesi Promotion for Regional Platform Development for MSEs Resilience Page 15

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