Terms of Reference (ToR) for Rapid Market Assessment and Business Readiness Assessment under “Youth and Women Entrepreneurship Development Project”

Terms of Reference (ToR) for

Rapid Market Assessment and Business Readiness Assessment under “Youth and Women Entrepreneurship Development Project”

1. Introduction/ Context

The ‘Youth and Women Entrepreneurship Development Project’ is designed to improve economic competitiveness of disaster affected, youth and women and establish micro enterprises through building technical capacities on on-farm and off-farm skill/trades and support. The project aims to increase unemployed, interested, committed and dedicated youth’s access to skill development opportunities, economic resources, financial services, business network and market linkage covering approx. 1,200 youths in Saptari, Gorkha, Nawalparasi (West), Bardiya and Kailali, which will be implemented by Koshi Victim’s Society (KVS), SAHAMATI, Dalit Feminist Upliftment Organization (DAFUO) and National Environment and Equity Development Society (NEEDS) Nepal.

Since, youth unemployment is one of the biggest economic issues in Nepal where 1,500 youth migrate abroad daily in search of employment. Nepal is one of the countries in the world that has large number of youth who are not in employment, education and training. Nepal ranks 69th of 77 countries in terms of labor productivity (GDP per labor employed), which is the lowest in all of Asia. Another issue is the disparity in the participation of women compared to men in the economy. Most of the employment in Nepal are created in informal sectors where they lack terms for decent employment and employers tend to pay lesser than that they are required to pay as per the labor law.

As one of the major bottlenecks for skilled youth to initiate and expand their business is their lack of access to financial services, lower financial literacy among the youths, limited ability to identify appropriate types of enterprises, limited connection among entrepreneurs’ network, limited services of different agencies such as banks, cottage and small industry offices, municipalities, suppliers, vendors and marketeers in rural areas. Moreover, entrepreneurs lack technical skills in off-farm and on-farm enterprises and marketing their skills as demanded in labor markets and start-up their own enterprises. It has been learned that the problems that young entrepreneurs face cannot be generalized as there are so many factors that contribute to unemployment and the youths abandoning business. Unrealistic expectations, lack of family cooperation, lack of credit worthiness, lack of mortgage/collateral, lack of skills for enterprise, lack of information and linkages are some of the factors that make it difficult for youths to think of starting something new. Those who overcome these factors and enter into the market are beaten by market imperfections, unhealthy competition, supply chain disruption, economic crisis etc. Therefore, it has been realized that for developing an entrepreneur it is essential to develop entrepreneurial attitudes that help them to understand the basic principles of entrepreneurship and markets, have technical knowledge on financial management and skills to operationalize the enterprises with profits. Hence, project emphasized to follow three major strategies to follow-

1. Improve youth’s and women’s knowledge and skills in on-farm and off-farm enterprises/trades and support in establishing micro enterprises.
2. Improve youth and women’s access to markets.
3. Improve youth and women’s access to finance.

In particular, the Youth and Women Entrepreneurship Project with disaster resilient component will be implemented at Saptakoshi Municipality and Kanchanrup Municipality of Saptari District by KVS and Pratappur Rural Municipality and Susta Rural Municipality of Nawalparasi West District and Palungtar Municipality and Shahid Lakhan Rural Municipality of Gorkha District by SAHAMATI. Likewise, ‘Youth and Women Entrepreneurship Development Project’ will be implemented at Godawari Municipality and Chure Rural Municipality of Kailali District by NEEDS Nepal and Madhuwan Municipality and Gulariya Municipality of Bardiya District by DAFUO.

In order to finalize relevant/appropriate enterprises, all four partners (KVS, SAHAMATI, NEEDS Nepal and DAFUO) are jointly calling for the proposal from interested expert consultant or firms for carrying out a Rapid Market Assessment and Business Feasibility Study, and Business Readiness Assessment, to identify the relevant entrepreneurship which should include vocational or customized skill training (on-farm and off-farm) needs, market situation with demand and supply, access to the finance service and other enabling factors needed for implementing successful and profitable Small-Micro Entrepreneurship (SMEs) designed for youth and women in target project districts-

A. Purpose of the rapid market assessment

The consultant or firms should conduct assessment for finding relevant vocational skill training (on-farm and off-farm) for youths, assessment of demand and supply side of labor and feasibility study of initiating/start-up of various micro enterprises in targeted areas, linkages with financial institutions, mapping interest of youths for the proposed training, and feasibility of setting up enterprises etc. in Saptakoshi Municipality and Kanchanrup Municipality of Saptari District; Pratappur Rural Municipality and Susta Rural Municipality of Nawalparasi West District and Palungtar Municipality and Shahid Lakhan Rural Municipality of Gorkha District. Likewise, Godawari Municipality and Chure Rural Municipality of Kailali districts and Madhuwan and Gulariya Municipality of Bardiya district of Nepal. However, specific objectives of this consultancy service are as follows:

1. Assessment of relevant vocational/ or customized skill training (on-farm and off-farm) for youth and women in targeted municipalities/rural municipalities,
2. Assessment of demand and supply of skilled labor in the local or regional market,
3. Recommend most appropriate and relevant 8 Small-Micro Enterprises (5 Vocational and 3 Customized skill based) suited for youth and women in the targeted areas (district wise and partner wise).
4. Conduct feasibility and market assessment for initiating/start-up selected micro enterprises in targeted areas,
5. Assessment of financial services (requirement of financial institutions) for identified or recommenced SMEs,
6. Recommend pertinent solutions of other bottlenecks; and stakeholders for the partnership and leveraging the resources for selected above SMEs including from local government and private sectors.

B. Purpose of Business readiness assessment

After finalizing the trades/relevant vocational/customized skills and various enterprises, consultant or firms should conduct business readiness assessment of the entrepreneurs to assess the current situation (finance, governance, reputation, willingness) and to look towards the future and a solid business case of the SMEs in the project implementing areas. The consultant/firm should analyze financial performance, capabilities, financial capacity, willingness, vision and business planning, will also conduct financial health checks on the status of financial management, conduct appraisal in terms of business management.

However, specific objectives of this business readiness assessment are as follows:

1. Assessment of existing small and medium micro enterprises and provide appropriate district/partner wise recommendation for strengthening their enterprises.
2. Recommend appropriate promising business of the existing entrepreneurs, which could be further strengthening.
3. Recommend appropriate solutions of other bottlenecks including access to finance, marketing.

2. Methodology

The consultant or firms should carry an assessment with adopting a business innovation and value chain approach. The assessment should be carried out in participatory and exploratory  research design applying the mixed method tool and techniques. The assessment findings and recommendations should be supported by qualitative and quantitative primary data and information. The consultant or firm should collect primary data and information with below stakeholder and process, not limited to the following:

• Documents review, (proposal, five years plan of province and federal government focusing to SMEs),
• Conduct Focused Group Discussion (FGD) with potential youths for training, KII with key government officials/ selected entrepreneurs,
• Conduct onsite meetings with the representatives of community at project implementation areas of Saptari, Gorkha, Nawalparasi-West, Bardiya and Kailali districts,
• Consultation meeting with all three tires of government officials (federal, province and local), peer agencies, private sector actors, market stakeholders and financial institutions,
• Consultation with enterprise development section of local government, cottage and small industries, agriculture section, CTEVT, agriculture knowledge center, vocational training institutes, business associations,
• Consultation with similar entrepreneurs (successful and failure) and receive the input for further improvements,
• Consultation meeting with financial institution and market actors (cooperative, MFI and banks), FNCCI, wholesalers, importers, exporter and bigger level private sector actors etc.

3. Key deliverables

Following deliverables are expected:

• Inception Report. This should include a detail work plan methods, practical timeline, and draft report outlines of a) Rapid Market Assessment, b) Business Readiness Assessment. LWR and NGOs will review and provide the inputs in the inception report.
• Draft and Final Assessment Report of Rapid Market Assessment with the recommendation of district/partner-wise 5-8 promising enterprises.
• Draft and final Business Readiness Assessment report with district/partner-wise recommendations.

LWR and NGOs will review and provide inputs in the draft report. Then consultant or firm will finalize and submit the final report.

4. Timeline

The consultancy service will be undertaken from 12 March to 15 April, 2023 (RMA) and Business Readiness Assessment within another 15 days (30th April, 2023).

5. Competencies and qualifications

The consultancy shall be led by an independent professional or consulting firm that has the following qualifications and experience:

• At least ten years of progressive professional experience in conducting and analyzing vocational skill assessments, enterprise assessment, market and value chain assessment, readiness assessment, business continuity plan,
• Demonstrated capacity to analyze qualitative and quantitative data in a systematic way and recommend appropriate ideas on the project,
• Extensive knowledge of standards and procedures for Technical and Vocational Education and Training (TVET) sector, enterprise development, establishing linkage with the financial institute,
• Demonstrated experience working with CTEVT and vocational skill training institutes, guiding enterprise development, coaching and mentoring entrepreneurs,
• Experience collecting data in rural areas of Nepal is considered an asset, although is not a prerequisite for applying,
• Have excellent writing skills (in English), and outstanding analysis, and communication skills,
• Experience and expertise in carrying out an assessment of on-farm and off- farm skills, livelihood and entrepreneurship development projects.

Interested consultants/firms are requested to send an Expression of Interest (EoI) and provide evidence to support claims of knowledge, skills and experience:

• A short proposal (not more than 5 pages) on how to fulfil the requirements of the TOR, and also the financial proposal for the tasks mentioned in the TOR,
• Resumes/CVs with references,
• A sample of a similar assignment report (if possible).

6. Contact/Focal person

Although, it’s a joint ToR of four NGOs for the assessment, to facilitate the process, proper communication will be dealt by Executive Director- NEEDs Nepal. However, ED or Chairpersons of DAFUO, SAHAMATI and KVS (given email as below) must be in the loop of every communications and discuss together to communicate with consultant/firm in consultation with Program Managers of LWR.

Please send your application details to the following addresses; needsmnr2008@gmail.com, with compulsory CC to- dafuonepal@gmail.com, sahamatico@gmail.com and ydeonarayan@gmail.com and HChudali@lwr.org no later than COB 12th March 2023.