93040 Growing Women-led Enterprises in the Mekong Testing a Methodology for Accelerating Growth Growing Innovation Growing Women-led Enterprises in the Mekong Testing a Methodology for Accelerating Growth © 2014 International Bank for Reconstruction and Development / The World Bank Mailing Address: MSN I9-900 1818 H St. NW, Washington D.C., 20433 USA Telephone: (+1) 202-458-4070 Website: www.infoDev.org Email: info@infodev.org Twitter: @infoDev Facebook: /infoDevWBG Some rights reserved. This work is a product of the staff of infoDev / World Bank. Note that the World Bank does not necessarily own each component of the content included in the work. The World Bank therefore does not warrant that the use of the content contained in the work will not infringe on the rights of third parties. The risk of claims resulting from such infringement rests solely with you. 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All queries on rights and licenses should be addressed to infoDev, The World Bank, MSN: I9-900, 1818 H Street NW, Washington, DC 20433, USA; email: info@infodev.org About infoDev infoDev, a global trust fund program in the World Bank Group, supports growth-oriented entrepreneurs through creative and path-breaking venture enablers. It assists entrepreneurs to secure appropriate early-stage financing; convening entrepreneurs, investors, policymakers, mentors and other stakeholders for dialogue and action. We also produce cutting-edge knowledge products, closely linked to our work on the ground. This study was made possible thanks to the Government of Finland. For more information visit www.infodev.org or send an email to infodev@worldbank.org. iii Table of Contents Acknowledgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vi List of Abbreviations and Acronyms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .vii 1. Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2. Guiding Principles for the MWEC Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2.1 The Learning Style of Entrepreneurs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2.2 Training Alone Is of Limited Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2.3 Women Entrepreneurs Benefit from Interacting with Other Women Entrepreneurs . . . 5 2.4 Most Job Creation Is a Result of the Small Percentage of Businesses That Grow. . . . . 6 3. Project Design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 3.1 Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 3.2 Needs of Women Entrepreneurs in Mekong . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 3.3 Links . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 3.4 Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 3.5 Implementation Partners. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 3.6 Facilitators/Trainers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 3.7 Marketing of MWEC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 3.8 Selection Criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 3.9 Eligibility Criteria for Application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 3.10 MWEC-Light Selection Criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 3.11 Selection Criteria for Further MWEC Support (Post IC&C Workshop). . . . . . . . . . . . . 12 3.12 Participants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 3.13 Workshop on Innovation, Creativity, and Competitiveness (MWEC-L, or MWEC-Light). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 3.14 MWEC (Full Program in Lao PDR). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 3.15 Peer Learning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 3.16 Additional Workshops . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 iv 3.17 Motivational Lunches . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 3.18 Individual Business Coaching . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 4. The Effectiveness of MWEC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 4.1 Initial Outputs and Outcomes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 5. Program Lessons. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 5.1 Positioning for Growth-oriented Existing Entrepreneurs . . . . . . . . . . . . . . . . . . . . . . . . 20 5.2 Marketing and Promotion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 5.3 Selection Process and Criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 5.4 Grant Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 5.5 Innovation, Creativity, and Competitiveness Workshop. . . . . . . . . . . . . . . . . . . . . . . . . . 23 5.6 Facilitators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 5.7 Peer Learning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 5.8 Business Seminars. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 5.9 Entrepreneur Talks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 5.10 One-on-One Coaching . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 5.11 Networking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 6. Program Costs and Sustainability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 6.1 Budget and Cost-Effectiveness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 6.2 Sustainability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 6.3 Charging Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 6.4 Selection of a Local Implementing Partner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 6.5 Creating an Alumni Network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Appendix A. Complementarity with STEPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Appendix B. Springboard Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Appendix C. Peer Learning Content and Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Appendix D. Facilitator Profiles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 v Acknowledgments This study, Growing Women-led Enterprises in the Mekong: Testing a Methodology for Accelerating Growth was written by infoDev, a global technology and innovation program at the World Bank. The authors of the study are Jill Sawers, Anushka Thewarapperuma, and Julian Webb. The study also benefits from the comments and input provided by Ellen Olafsen (infoDev). Xavier Cicera and Jana El-Horr (both from the World Bank) also provided comments through a formal peer review process. vi List of Abbreviations and Acronyms AGI Adolescent Girls Initiative (a program funded by The World Bank and Australian Aid) DoSMEP Department of SME Promotion (Lao PDR) EMC Emerging Markets Consulting IFC International Finance Corporation Lao PDR Lao People’s Democratic Republic MWEC Mekong Women’s Entrepreneurship Challenge PCT Participant Centered Training SMEs small and medium enterprises STEPS Supporting Talent, Entrepreneurial Potential, and Success program All dollar amounts are U.S. dollars unless otherwise indicated. vii 1 Executive Summary • Lack of capital for expansion • Low levels of confidence to take measured risks Research shows that conventional classroom According to a recent Global Entrepreneurship training is often of limited value for growth- Monitor, 48 percent of entrepreneurs globally are oriented entrepreneurs. This is related to the women. Only a small percentage of entrepreneurs personality attributes that commonly characterize in any given country are growth oriented, and entrepreneurs and affect their learning styles an even smaller percentage actually grows a (Caliendo and Kritikos 2011). Therefore, infoDev’s business (estimates range from 3 to 10 percent, pilot—the Mekong Women’s Entrepreneurship depending on the study). Growth-oriented women Challenge (MWEC)—set out to test a methodology entrepreneurs face challenges such as lack of based primarily on structured facilitation of peer- access to support services and relevant knowledge to-peer learning among growth-oriented women as well as regulatory and legal barriers. entrepreneurs. infoDev focuses on enabling the start-up and MWEC commenced with an open call for growth of innovative enterprises. Recognizing the applications, seeking to identify existing growth- barriers that often prevent women from growing oriented enterprises in the region. A screening their businesses, infoDev embarked on a small process to select about 70 entrepreneurs for pilot project designed to test a new methodology participation in the program was applied, with for increasing the capacity, confidence, and criteria including entrepreneurship experience, networks of growth-oriented women leading small innate entrepreneurial characteristics, revenue businesses. The objective was to test whether growth in recent years, creativity, and the intention this methodology would indeed lead to business to grow further. expansion. The theory of change behind the program design The pilot project focused on Cambodia, Lao is to enable growth-oriented entrepreneurs to PDR, and Vietnam. Quite a few women start learn in a more advantageous context, leading to businesses in these countries; in Cambodia 55 improved business performance and investment. percent of all businesses are owned by women, True entrepreneurs learn best from their peers— whereas in Lao PDR and Vietnam women- other entrepreneurs with whom they have a owned businesses represent 40 and 25 percent, trusting relationship—by means of sharing respectively. According to a study carried out practical, real-world experiences to improve by the International Finance Corporation (IFC), confidence, risk taking, and business management women-owned businesses rarely grow from micro capabilities. This is also the rationale for business to small and medium-size enterprises. mentoring, coaching, and networking, whether stand-alone programs or additional components Specific challenges identified among growth- of classroom-based business training programs. oriented women entrepreneurs in the three target MWEC differs from many other programs in that countries included the following: it selects the small percentage of entrepreneurs who are growth oriented and then concentrates • Limited exposure to innovative practices that on the development of trusted networks among could help with product differentiation these entrepreneurs as a basis for learning • Few opportunities to upgrade business and from each other, which may be considered as technical skills or gain access to business peer group mentoring. Business coaching and networks outside of family and friends traditional classroom-based training are included 2 as additions to the core elements of peer learning • Ninety-seven percent of the participants rated and mentoring. their confidence levels higher or significantly higher following the program. The pilot program was composed of three three- day workshops, one each in Cambodia, Lao PDR, • The top reason why participants said they and Vietnam, followed by peer-to-peer learning would recommend the program to others was sessions and technical seminars focused on networking benefits. topics selected by the participants, motivational • Ten participants secured new business lunches with successful entrepreneurs, and one- contracts totaling $2 million in value, 2,000 new on-one coaching taking place over a six-month customers, and investments totaling $400,000. period for entrepreneurs in Lao PDR. Additionally, The positive outcomes of the program to small grants were awarded to a subset of the date were due largely to the generation of entrepreneurs. trust among participants, which underpinned While the ultimate goal of MWEC was to contribute learning from each other and led to increased to business expansion, measured by increased confidence and business contacts; the dynamic sales, it will take time before the capacity and facilitators who spoke the local language; networks gained throughout the MWEC experience the profile of the implementation team; and translate into increased revenue. Outcome the adaptation of concepts and materials to assessments continue and the final assessment fit cultural contexts and participants’ needs. will take place in March 2014 to update Interestingly, the grant funding was not nearly as intermediate outcomes and lessons learned. valued by the participants as the opportunities offered to network and learn from experienced Early evidence of outcomes includes the following: entrepreneurs. • Ninety percent of the participants have This report discusses the design, outcomes, and considered launching new products or services lessons of MWEC in further detail and provides or entering new markets. a few preliminary recommendations for the design of future programs targeting the growth of • Eighty-two percent of the participants noted women-owned enterprises. that they had significantly changed their business plans as a consequence of the program. 3 2 Guiding Principles for the MWEC Program components of classroom-based business training programs. MWEC differs from many other programs in that it selects the small percentage of entrepreneurs who are growth oriented and then concentrates on the development of trusted networks among these entrepreneurs Four hypotheses underpin the content and as a basis for learning from each other (that structure of the MWEC program as it was designed is, peer learning), which may be considered as for Cambodia, Lao PDR, and Vietnam. peer group mentoring. Business coaching and traditional classroom-based training are included While business training has existed for quite some as additions to the core elements of peer learning time as a simple and cost-effective intervention and mentoring. for supporting SMEs, a recent World Bank study (McKenzie and Woodruff 2012) evaluating business trainings noted that training programs focused on business survivorship have either 2.1 The Learning Style zero or slightly negative effects for female-owned of Entrepreneurs businesses. Randomized impact evaluations from As noted by Caliendo and Kritikos in an Institute Sri Lanka suggest that the effects of business for the Study of Labor discussion paper, a skills training are quite limited, as the authors growing literature examines the relationship found little to no evidence for the impact of these between personality traits and entrepreneurship programs on women’s business performance (Caliendo and Kritikos 2011). Notwithstanding that (Karlan and Valdivia 2011; De Mel, et al. 2012). more research is called for, it seems clear that A study from Peru notes that a training program entrepreneurs and small business owners have targeting women did not lead to higher profits different personality traits (Carland et al. 1984), or revenues but may have changed their mind- which include tolerance for risk, a strong internal set and thinking on new markets and profit- locus of control, self-confidence, openness to making opportunities. A 2013 joint study by the change, problem solving, and conscientiousness. International Labor Organization (ILO) and the Arguably their learning styles differ to comparably Vietnam Women Entrepreneurs Council (VWEC) of less entrepreneurial people. Okhomina (2010) the Vietnam Chamber of Commerce on “Women’s concludes that research into the relationship Entrepreneurship Development in Vietnam” between psychological traits and entrepreneurship observed that women tend to be less satisfied with has important implications for entrepreneurship training and more satisfied with advisory services. pedagogy, including as a technique for The theory of change behind the program design identifying students for entrepreneurial careers is to enable growth-oriented entrepreneurs to and to enhance entrepreneurial success learn in a more advantageous context, leading to through nourishment of competencies such improved business performance and investment. as innovativeness, proactiveness, risk-taking Genuine entrepreneurs learn best from their behavior, and competitive aggressiveness. peers—other entrepreneurs with whom they have Entrepreneurial characteristics can be very a trusting relationship—by means of sharing effective when starting a business and during the practical, real-world experiences to improve early growth stage, but as the business grows confidence, risk taking, and business management over time, this style can be a disadvantage. capabilities. This is also the rationale for business There is a point at which the entrepreneur may mentoring, coaching, and networking, whether need a team of business managers. Noting that they are stand-alone programs or additional 4 learning styles differ from person to person improvements in practice are relatively modest. and from personality to personality, Dr. Michael Few studies find significant impacts on profits Schaper, then the professor of entrepreneurship or sales, although several studies with more at Newcastle University, Australia, pointed out statistical power have done so (McKenzie and that entrepreneurs generally display learning Woodruff 2012). The review largely points to the styles that are experiential, intuitive, ad hoc, needs paucity of research and suggests improvements based, personal, rarely structured nor systematic, to research design. However, it also cites cases and are usually from trusted sources, noting that where follow-up after training can be beneficial existing SMEs favor information from customer to the business, if it provides technical assistance feedback and informal sources (friends, family, specific to the needs of the business rather than a personal networks) over conventional sources.1 In more generic follow-up. other words, they learn best from people they trust and respect, typically other entrepreneurs, that is, With these weaknesses in mind, static one-off their peers. training makes up only a small portion of the MWEC program, as compared to peer learning As such, within the MWEC program, encouraging and follow-up technical assistance, specific to the these learning styles is underscored as a core needs of participating businesses. methodology. 2.3 Women Entrepreneurs 2.2 Training Alone Is Benefit from Interacting with of Limited Benefit Other Women Entrepreneurs Most people who work and interact with In most entrepreneurship support activities, entrepreneurs have observed that classroom- gender is immaterial. Gender can sometimes bring based training may provide little benefit. Rather, different yet complementary skills and experiences entrepreneurs are known to take advantage to peer learning discussions. Similarly, the of one-on-one support, coaching, and from selection of coaches and mentors is usually based interaction with their peers and business on competency, experience, and ability to transfer mentors, arguably reflecting their personality and knowledge and “open doors,” rather than on learning styles. For this reason, classroom-based gender. business education programs targeting growth- oriented entrepreneurs often include mentoring, However, anecdotal case studies reveal the need networking, and coaching as possible components. and preference for women-only groups, where For MWEC, the balance and focus is different. The participants feel free to share openly and learn focus is networking, peer learning, and coaching; from other women entrepreneurs. It is therefore classroom-based business training is used as a important to create a trusting environment for supplement only. women to share freely, where they can discuss and raise sensitive issues, and where they can be A critical review of entrepreneurship training nurtured by their peers. impact undertaken by the World Bank finds that existing firm owners implement some of Women-only self-actualization sessions provide the practices taught in training, but often these a motivational environment where participants are encouraged to explore and challenge norms 1 Dr. Michael Schaper, Professor of Entrepreneurship, and beliefs that are constraining their growth Newcastle University, Australia, in a speech to the and engage with these issues in a supportive Australian Government’s Business Entry Point, 2004. 5 environment. Self-actualization sessions can approaches and has since rippled around the give participants an opportunity to reflect on world.3 More recently, NESTA, an innovation themselves—the “engine” of their business—in charity in the United Kingdom, found that 6 percent order to strengthen and build their resilience and of companies generate more than 50 percent of confidence. the employment in the United Kingdom (NESTA 2009), a finding that led to changes in government As such, self-actualization activities that aim policies to support enterprise development. These to build trust, confidence, and resilience are entrepreneurs who grow businesses typically have interspersed throughout the MWEC program. prior work experience (IADB 2002). These gazelles more than make up for the lack 2.4 Most Job Creation of job and wealth creation of the typical start-up. Moreover, because many gazelles have matured Is a Result of the Small to be fairly old and large by the time they become Percentage of Businesses major wealth and job creators, the story is even more extreme for start-ups. Ultimately, a very That Grow small number of new companies account for a Only a small percentage of entrepreneurs actually disproportionately large percentage of wealth and grow a business,2 typically the 3 to 5 percent job creation (Shane 2009). The difficulty lies in that is referred to as the “gazelles.” “Economic selecting these companies in advance. gardening,” which first started in Littleton, The MWEC program focuses on and selects Colorado, in the United States, found that focusing entrepreneurial women with growth-oriented on the 3 to 5 percent of local gazelles produces businesses in an attempt to identify the local far better impacts and outcomes, in terms of gazelles. productivity and employment, than more generic 2 GEM 2004 estimates 3 percent; some research may go as high as 10 percent; and microbusinesses in all countries are 90+ percent of all businesses. 3 http://growinglocaleconomies.com/economic_gardening. 6 3 Project Design development in the Mekong are “low productivity/ efficiency,” “lack of technically skilled labor,” “lack of market information,” “lack of management skills,” and “lack of capital” (Lao-German Program 2010). Compared with other countries, women lack business skills and exposure to international 3.1 Objective good practice. Business development services The Mekong Women’s Entrepreneurship Challenge, are provided largely by family members; only or MWEC, was designed by infoDev, a global 4 percent of companies receive such services partnership program at the World Bank, with from professional service providers (Lao-German donor funding from the Ministry for Foreign Affairs Program 2010). For the women interviewed of the government of Finland, to support women in the feasibility study for the MWEC pilot, the entrepreneurs in Cambodia, Lao PDR, and Vietnam main knowledge gaps were marketing, financial tackle barriers associated with the growth and management, and exposure to good business expansion of women-led businesses. The specific practices. The Vietnam research by the IFC found objectives of the pilot included the following: that businesswomen expressed a clear need for entrepreneurial and women-only training, improved 1. Encourage women to grow their businesses, access to finance, and an official channel or “home” create more employment opportunities, and through which they could relay their particular produce new products and services. business concerns to policy makers (IFC GEM 2007). 2. Improve women’s knowledge of innovation, MWEC targeted existing women-owned or women- creativity, and competitiveness for application led enterprises, with the aim of encouraging to their businesses. business growth and creating additional 3. Create an open knowledge environment for employment opportunities in addition to producing reflective learning through the sharing of new products and services. personal experiences. In addition to empirical data and publications 4. Build a trusting business network among from the region, a feasibility assessment was training participants. also undertaken in 2011 to assess the landscape 5. Test a new methodology attempting to address of women entrepreneurs in Lao PDR. In this a perceived gap. case, the target audience was growth-oriented women entrepreneurs, specifically excluding those with self-reported subsistence/survivalist/ 3.2 Needs of Women supplementary income. The assessment indicated that there were indeed growth-oriented Entrepreneurs in Mekong women entrepreneurs in need of this specific In the Mekong region, there are three notable type of support. Challenges for these women obstacles for women entrepreneurs: entrepreneurs included the following: Limited exposure to innovative practices leading to little 1. Lack of access to networks product differentiation, in turn resulting in poor 2. Absence of exposure to experienced business positioning for competitiveness and success support mechanisms • Limited exposure to innovative practices 3. A dearth of relevant business information and leading to little product differentiation, knowledge in turn resulting in poor positioning for IFC Enterprise Surveys from 2005, 2007, and competitiveness and success 2009 indicate the main constraints on business 8 • Lack of formal business training and limited and microbusiness development, as is the case in opportunities for upgrading business and most countries. MWEC’s contribution to development technical skills for company directors, of the entrepreneurship support ecosystem is best managers, and staff illustrated in Lao PDR, where the full program • Very limited access to business networking was offered. MWEC supported existing growth- opportunities and specifically successful oriented entrepreneurs while complementing the women entrepreneurs as role models microbusiness development activities: Lao PDR’s SME Promotion and Development Office (DoSMEP, • Lack of capital for expansion and lack of formerly SMEPDO) uses ILO Start and Improve financial management systems and skills Your Business programs, and the World Bank’s • Lower levels of self-confidence in taking Adolescent Girls Initiative STEPs program assists measured risks and flexible thinking to adapt to fresh start-ups with a business plan competition and market demands follow-up support. The study for the MWEC pilot program underscored the need for an intervention that would address the aforementioned challenges that were inhibiting 3.4 Methodology women entrepreneurs in growing their businesses. Figure 1 below indicates the positioning of MWEC on the entrepreneurship promotion continuum in the region. The emphasis of the program was on 3.3 Links supporting entrepreneurs to grow (rather than start) their businesses. The design of MWEC complements other initiatives to support entrepreneurs, working for an The program was designed as a pilot activity to take entrepreneurship promotion continuum. Focusing place through a period of one year, commencing in on existing growth-oriented businesses addressed September 2012. The total pilot size was $425,000. a gap in the market in all three countries, where In all three countries, a three-day workshop on existing interventions tend to focus on new starts innovation, creativity, and competitiveness was FIGURE 1: Entrepreneurship Promotion Continuum Promote Promote new ďƵƐŝŶĞƐƐŐƌŽǁƚŚ ŽŶƐŽůŝĚĂƚĞ ƉƉƌŽĂĐŚĞdžƚĞƌŶĂů ĞŶƚƌĞƉƌĞŶĞƵƌƐŚŝƉ ĂŶĚĞdžƉĂŶƐŝŽŶ ĞdžŝƐƟŶŐďƵƐŝŶĞƐƐ ŝŶǀĞƐƚŽƌƐ KďũĞĐƟǀĞƐ ͻ&ŝŶĂŶĐĞŶĞǁďƵƐŝŶĞƐƐ ͻdžƉĂŶĚĞdžŝƐƟŶŐ ͻ/ŶƚĞƌŶĂů;Ğ͘Ő͘ƐƵĐŚ ͻƩƌĂĐƚĂŶĚƵƟůŝnjĞŶĞǁ ŝĚĞĂĂŶĚƐĞƚƵƉŶĞǁ ďƵƐŝŶĞƐƐ ĂƐ,ZƉƌŽĐĞƐƐĞƐ͕ ƉƌŝǀĂƚĞĐĂƉŝƚĂůƐƚŽ ĐŽŵƉĂŶŝĞƐ ͻ^ƚƌĞŶŐƚŚĞŶďƵƐŝŶĞƐƐ ĂĐĐŽƵŶƟŶŐ ďŽŽƐƚĐŽŵƉĂŶLJ͛Ɛ network ƐLJƐƚĞŵƐĞƚĐͿĂŶĚ ĞdžƉĂŶƐŝŽŶĂŶĚ ͻŽŶƐŽůŝĚĂƟŽŶŽĨ ĞdžƚĞƌŶĂůŽƌŐĂŶŝĐ ĚĞǀĞůŽƉŵĞŶƚ ďƵƐŝŶĞƐƐŬŶŽǁůĞĚŐĞ ŐƌŽǁƚŚƚŽĂƩƌĂĐƚ ĞdžƚĞƌŶĂůĐĂƉŝƚĂůĂŶĚ ŝŶǀĞƐƚŵĞŶƚƐ džĂŵƉůĞ ͻtŽƌůĚĂŶŬͶ^ƚĞƉƐ ͻ/ŶĨŽĞǀͶDt ͻWƌŝǀĂƚĞĞƋƵŝƚLJĨƵŶĚƐ 9 offered; in Lao PDR, the target group would go between MWEC and STEPS and whether these through further follow-up activities, including programs could support each other in the future. facilitated peer learning, technical seminars, motivational lunches with successful entrepreneurs, In order to target local growth-oriented and one-on-one coaching. Key learning points entrepreneurs, the design placed heavy emphasis and best practices illustrated in this report are on discussion-based learnings, one-on-one extrapolated from that period. The follow-up coaching, and some structured learning. It program in Lao PDR still continues, and the aim is also included addressing some of the softer to gather data after another six-month period. The issues, including self-actualization sessions for pilot program will determine the effectiveness of confidence building. the program with a view toward possible scale-up The program had a two-pronged approach (MWEC in the region or implementation in other developing and MWEC-Light), based on availability of funding countries where there may be a need. and the implementation timeline. In all countries, In Lao PDR, the MWEC program complemented approximately 30 women would be selected the ongoing World Bank initiative Supporting to follow a three-day workshop on innovation, Talent, Entrepreneurial Potential, and Success creativity, and competitiveness. Following the (STEPS), an initiative of the Adolescent Girls workshop in Lao PDR, 10 women would be selected Initiative (AGI) funded by Australian Aid. While the to receive follow-up support and grant funding STEPS program sought to identify and support of approximately $9,000 each. In Cambodia and women and young entrepreneurs who are seeking Lao PDR, five women would be selected from the to start or expand a business, the MWEC program workshop to either receive grant funding (of $3,000) targeted existing growth-oriented entrepreneurs. or be selected to participate in infoDev’s Global Thus, in Lao PDR the MWEC pilot would also Forum on Innovation in South Africa in May 2013. determine whether there was complementarity FIGURE 2: Overview of MWEC Program Design Mekong Women’s Entrepreneurship Challenge Project ƉƉůŝĐĂƟŽŶ Seminars ĂŶĚ Workshops Workshop on /ŶŶŽǀĂƟŽŶ͕ ƌĞĂƟǀŝƚLJĂŶĚ ŽŵƉĞƟƟǀĞŶĞƐƐ 1 to 1 Coaching Peer Learning 10 3.5 Implementation Partners 3.7 Marketing of MWEC infoDev partnered with Emerging Markets One of the challenges of implementing the pilot Consulting (EMC), a Cambodia-based firm with program was finding entrepreneurs who fit offices in Lao PDR and with consulting and early the selection criteria: the small percentage of stage funding experience in the Mekong region, entrepreneurs with some experience and who to implement the pilot program in all three also go on to grow a business and who would, countries. In each country, the program partnered among other things, be able to both contribute with a number of local associations to leverage and benefit from the various peer discussions. their networks and experiences working with Placing advertisements in the local newspapers SMEs. In Lao PDR, the program partnered with proved to be insufficient in terms of outreach. DoSMEP. The Lao Women’s Business Association EMC (hereafter referred to as the project and the Lao Handicrafts Association also provided implementation team) spent considerable time on support. In Vietnam, the network of the Vietnam public relations and marketing of the program and Women Entrepreneurs Council (VWEC), which is even used social media tools such as Facebook. part of the Vietnam Chamber of Commerce and Other efforts included approaching entrepreneurs Industry (VCCI), was leveraged. In Cambodia, via direct “cold calling”; via business support the program worked closely with the Cambodia organizations, trade associations, and chambers Women’s Entrepreneurs Association (CWEA). of commerce and industry; and via targeted information workshops held throughout the three countries. Direct marketing and targeted 3.6 Facilitators/Trainers information sessions had the best return, because women interested in applying tended to stay The facilitators were selected based on their behind for one-on-one discussions, providing an entrepreneurial background, managerial opportunity for the implementation team to further experience—explicitly in human resources and engage them. psychology, facilitation and training experience (specifically Participant Centered Training, or PCT)—business development experience, and competence interacting in the local language. 3.8 Selection Criteria Appendix E includes short descriptions of the In order to target a group of participants with experience of the three respective facilitators. enough skills to contribute effectively to the program and benefit from the same, eligibility and selection criteria were developed by the implementation team and infoDev, in consultation with the Lao World Bank STEPS team. This was done to ensure the MWEC program, which focuses on existing and growth-oriented entrepreneurs, complemented the STEPS program, with a FIGURE 3: Participant Selection focus on start-ups. Assessment of eligibility and selection was undertaken by the implementation team. Help ĐŽŵƉůĞƟŶŐ Selection criteria are important to ensure the the Direct ĂƉƉůŝĐĂƟŽŶ ŵĂƌŬĞƟŶŐ participants are from the small percentage of form entrepreneurs who are authentically interested in growing their business and with a track record of ^ƵďŵŝƐƐŝŽŶ doing so, consequently, no new start-ups. Criteria of included entrepreneurship experience, innate ĂƉƉůŝĐĂƟŽŶ entrepreneurial characteristics, revenue growth in recent years, creativity, and the intention to grow further. All applicants received one-on-one contact from the implementation team. Implementation of the program has been defined SELECTION OF PARTICIPANTS as either MWEC (comprehensive program, 11 TABLE 1: Applicant Breakdown Applicants and Participants Marketing and selection Reach: approximately 1,000 women via Facebook and other social media, email blasts, partners, cold calls, and information sessions Applicants Lao PDR: 130 Cambodia: 57 Vietnam: 52 Program Participants Lao PDR: 25 Cambodia: 22 Vietnam: 21 including post-workshop activities) or MWEC- and competition. After the grading process, Light (workshop and in some instances, award of a applications were further scrutinized against the small grant). following criteria: • Entrepreneurship experience, as evident in their application 3.9 Eligibility Criteria • Market/product demand for offered products for Application and services Businesses eligible to enter MWEC’s competition • Growth plan: the intended expansion were required to meet the following criteria: and/or improvement plan to address the market demand for the product or service • Women-owned business (51+ percent) or where women lead the business (for instance, leading Applicants who met the criteria were invited a family business) to attend the three-day workshop. Program marketing involved personal contact by the • Existing business or in the process of implementation team with each applicant to help registering her complete the application form. • Currently profitable or potential for profitability • Revenue growth in recent years and intention to grow 3.11 Selection Criteria for • Business in a sector or a subsector that can be Further MWEC Support (Post competitive domestically or internationally IC&C Workshop) • Evident creativity In Lao PDR, the project included a second • (For Lao PDR) A small or medium-size component: a series of interventions aimed business, as defined by Lao PDR at providing follow-up activities to successful • (For Vietnam and Cambodia) Open to applicants of the three-day innovation, creativity, Cambodian and Vietnamese nationals only and competitiveness (IC&C) workshop. All 25 women who participated in the IC&C workshop in Lao PDR were invited to submit a revised 3.10 MWEC-Light Selection application form and an adapted proposal that reflected new thinking resulting from exposure Criteria to the workshop. A panel comprising the project Initial applicants were graded on their knowledge implementation team, DoSMEP, and the facilitator of their businesses’ product and service line, for Lao PDR selected 10 final candidates to potential to grow, and understanding of basic participate in the follow-up component. business concepts, including finance, risk, 12 The second-round selection of 10 winners consisted of the following eligibility criteria: TABLE 2: Age Breakdown of Workshop Participants • Commitment to the peer learning program • No direct competition within applicant pool Lao PDR Cambodia Vietnam (different sectors or different components in Age (n = 25) (n = 22) (n = 21) one value chain) < 25 48% 0% 0% • Commercial feasibility of growth aspirations 25–35 32% 68% 24% • Ability to address learning needs The 10 winners also received grant funding of up 36–45 12% 14% 19% to $9,000 to improve their business. > 45 8% 9% 57% Following the IC&C workshops in Cambodia and Vietnam, a number of winners were selected to receive up to $2,000 in grant funding for business were below 35 years of age. Age differences didn’t improvement and to participate in the infoDev seem to represent an obstacle for the workshop 5th Global Forum on Innovation and Technology dynamics or teamwork activities. It was observed Entrepreneurship in South Africa in May 2013. that all participants interacted with each other These women were selected based on the equally, both individually and in teams, regardless following criteria: of age and implicit experience of the individuals. • Commercial feasibility of growth aspirations Workshop participants represented an assortment of businesses from different sectors, including • Achievability of business expansion plan if agro-processing, auto repair, and construction grant funding was provided supplies. In Lao PDR, the most well represented • Understanding and confidence in utilizing and sectors included food and beverage (eight interacting in English if selected to participate participants), beauty and health (four), and in the Global Forum livestock (two). The majority of participants in Vietnam were from 3.12 Participants the agriculture sector, whereas the majority in Cambodia was from the consulting and food and The 68 women entrepreneurs who took part in the beverage sectors. three-day workshops in Lao PDR, Vietnam, and Cambodia represented a diverse range of ages, provinces, education backgrounds, and industries. All participants had a strong motivation to learn 3.13 Workshop on and willingness to participate, which contributed greatly to the overall energy of the workshops. Innovation, Creativity, and Competitiveness (MWEC-L, In Lao PDR, 48 percent of the finalists were between 25 and 35 years old, 32 percent were or MWEC-Light) between 36 and 45, 12 percent were over 45, The workshop content was based on IDEAS and 8 percent were under 25. The range of ages (Innovation Development Early Assessment contributed positively to workshop dynamics, as System) (English 2007), a program developed by the older, more established entrepreneurs proved Jack English, an Australian academic focused to be an inspiration to the younger ones. on entrepreneurship and innovation. IDEAS is a structured process for assessing the feasibility In both Cambodia and Vietnam, the range of of taking a new product to market, given the participants’ ages was significant: in Vietnam, competitive business environment and associated 76 percent of participants were over 35 years of risks. The program has been successfully age, with only 25 percent under 35. Conversely, implemented in Australia and several other in Cambodia, almost 80 percent of participants countries, including Iran, Nepal, and Saudi Arabia. 13 TABLE 3: Lao PDR Finalist Breakdown by Industry Sector Finalists Company Name Industry Sector Mary Bounthalath Vingsay Sinniyom Transportation Transportation Maniphay Chanthalang Maniphay Furniture Furniture Nanthida Chanthavong Savankham Brick Factory Construction Samlarn Chanthavong LTB Plastic Manufacturing Manufacturing Nongnut Foppes Xao Ban Group Food and beverage Bouathip Hormchandee Thipsavang Noni Juice Food and beverage Oneta Keophanya 2PK Restaurant Food and beverage Daraphone Kiatsritanakorn Dala Spa Beauty and health Chanthachone Kodsimeuang Pig Farm Agriculture Sengmani Oupathanar Organic Rice Milk Food and beverage Siriphone Phanthavong ECME Electrical engineering Khamsene Phimmavong Herbal Beauty Product Group Beauty and health Vilay Sanguantrychan Luxe Interior Design Interior design Souksakhone Sayyasone Kanida Import-Export Health and beauty Soudalie Silaphet Poppy’s Pharmacy Health and beauty Manola Sisouphanthavong Lao Kitchen Food and beverage Vannaphone Sitthirath Lao New Wave Cinema Production Media Aluna Thavonsouk Thavonsouk Resort Hotel Mesone Velaysane Design and Sewing Clothes Garment Latsamy Vetsaphone Sep-ee-lee Purple Noodle Food and beverage Phonesavanh Vilivong Le Trio Coffee Food and beverage Somphone Vongdeuane Lao Savang Garage Auto repair Xayalith Vongsaravanh Duck Farm Livestock Chintakone Xaysana Thanva Ice Factory Food and beverage Naly Yotyai Naly Rice Mill Agro-processing 14 FIGURE 4: Vietnam Finalist Participant Breakdown by Industry Sector Vietnam (n ‫ ؍‬22) 8 7 7 6 EƵŵďĞƌŽĨƉĂƌƟĐŝƉĂŶƚƐ 5 4 3 3 3 3 2 2 1 1 1 1 0 Agriculture ŽŶƐƚƌƵĐƟŽŶ Health and Fashion and ĚƵĐĂƟŽŶ Food and ICT Other Beauty ,ĂŶĚŝĐƌĂŌƐ Beverage Sector FIGURE 5: Cambodia Finalist Participant Breakdown by Industry Sector Cambodia (n ‫ ؍‬21) 6 5 5 EƵŵďĞƌŽĨƉĂƌƟĐŝƉĂŶƚƐ 4 3 3 2 2 2 1 1 0 ŽŶƐƵůƟŶŐ Food and ŐƌŝĐƵůƚƵƌĞ Fashion and Health and Tourism ICT WƌŝŶƟŶŐ ĞǀĞƌĂŐĞ ,ĂŶĚŝĐƌĂŌƐ Beauty House Sector 15 The goals of this activity were to improve participants’ understanding of important TABLE 4: Objectives of Three-day Workshop (see business concepts in innovation, creativity, and appendix C for further breakdown of content) competitiveness (IC&C); enhance personal capacities for entrepreneurship; and build Workshop Objectives stronger networks between businesswomen. The Day curriculum included an adaptation of IDEAS and was designed to both foster and identify new ideas 1 • Building trust and relationships • Developing creative and innovative with genuine commercial merit and strategic ideas alternatives for commercialization. IDEAS was selected due to its focus on the concepts in the 2 • Understanding basic marketing three topic areas, IC&C, and as a methodology for • Understanding competitiveness “identifying and selecting winning business ideas.” 3 • Developing business proposals The workshop focused on three IDEAS concepts • Developing presentation skills that were adapted to fit local context: • Potential demand 2. Attendance in workshops and seminars delivered by experts on subject matter in • Market acceptance entrepreneurship. Important topics included • Competitive position financial management, accounting, marketing and branding, exporting, and so on. The curriculum also included the following concepts and tools: 3. One-on-one tailored coaching support. 4. Self-actualization coaching for confidence and • Entrepreneurship Self-Assessment resilience building.5 • 4P-4C (product and customer needs) In addition to the above, a grant of up to $9,000 • Features vs. Advantages vs. Benefits (FAB) was provided to each participant in order to • Substitute, Combine, Adapt, Modify, Put to improve some aspect of her business, for other purposes, Eliminate, Reverse (SCAMPER) example, capital equipment, business software systems, consultancy support, and so on. The • Unique Selling Point (USP) follow-up component in Lao PDR consisted of the Based on these concepts and the IDEAS subsequent modules: curriculum, objectives for each day of the workshop were established. • Three-and-a-half-day peer learning and facilitated discussions with a focus on marketing, finance, and accounting, covering two modules per day 3.14 MWEC (Full Program • Two-and-half-day workshops on financial in Lao PDR) management and marketing In Lao PDR, the 10 participants who attended the • Two “motivational” lunches, each having a full training were invited to provide a proposal to successful Lao woman entrepreneur as a guest receive more follow-up support, including: speaker 1. Participation in facilitated peer • One-on-one coaching sessions provided by discussion groups on topics of interest (in the project implementation team to address entrepreneurship) to the group. The framework individual needs for discussion is based on the Springboard methodology that was developed and used very 5 Such coaching had formed an integral part of the effectively by other enterprise development FEMTECH Experiential Training Program that was agencies and governments in Australia.4 developed by South African FEMTECH (Pty) Ltd. and delivered successfully to women entrepreneurs in South Africa, and which was very highly rated by the 4 www.creedaprojects.com.au. participants. 16 3.15 Peer Learning workshops were developed that focused on the basics of finance and accounting and general In Lao PDR, the 10 winners participated in a marketing concepts. The accounting and finance series of facilitated peer learning sessions that workshop exposed participants to new ways of focused on topics including SWOT analyses; making their current financial and accounting market assessments and marketing; resource systems more efficient and effective for quality management and budgeting; time management decision making. It covered cash flow, profit and and lifestyle choices; financial benchmarking; loss statements, balance sheets, and basic pricing network and joint venture formation; financing; models for products. The marketing workshop and quality development. focused on strengthening the participants’ existing knowledge and introducing new concepts (for As per the Springboard methodology (see appendix example, digital marketing) to help them expand B), these topics were selected by the participants their business. Other topics included addressing themselves based on a range of topics offered. core marketing concepts and the need for The facilitator introduced and facilitated each data-driven decisions in product evolution and respective topic and discussion. marketing. Objectives of Peer Learning Sessions 3.17 Motivational Lunches • Provide locally contextualized background The project implementation team developed information and knowledge that will stimulate a series of lunches with successful women discussion and development of ideas. • Offer an environment in which participants are able entrepreneurs as speakers to share their to share knowledge, take risks, and provide each knowledge and experience with the participants. other with support and feedback. • Support participants in identifying and resourcing The invited speakers were role models who had individual and group development needs. already attained success in the same environment • Encourage reflective learning by using personal as the winners, and could inspire the participants experience as an ongoing case study. by sharing their entrepreneurial journey. This • Offer knowledge of local, regional, or national was conducted in an informal environment resources to support the development process. where information exchange and sharing was • Encourage the development of networks that will survive the program. encouraged. The original methodology for peer learning sessions allows for a period of approximately 3.18 Individual Business two to four weeks in between sessions, enabling Coaching participants to digest and apply the learning from The project implementation team also provided each session. However, given a number of time- one-on-one coaching to the 10 participants. and budget-related constraints, the methodology Each winner received three days of additional was adapted and the sessions (two per day) were coaching. This enabled the implementation offered back-to-back over a period of three and team to work directly with the entrepreneurs a half days or over 16 hours. Even though the to review the current state of their businesses, peer learning was appreciated by participants, conduct a brief analysis of the current and future this structure was not successful: it did not allow product market, and review their activity plans. time for reflection and implementation in between This enabled the implementation team to advise sessions and required participants to be away from on how to best utilize the grant funding given their businesses for too long. to the entrepreneurs. The entrepreneurs’ plans were thus aligned with the disbursement of the additional grant funding, managed by the project 3.16 Additional Workshops implementation team. Based on the articulated needs of the participants in the peer learning sessions, two additional 17 4 The Effectiveness of MWEC workshop ended. All Vietnamese participants and 90 percent of Cambodian participants indicated similar changes in thinking. Throughout the program, ideas were clarified, The theory of change behind the program design new products developed, and, most important, the is to enable growth-oriented entrepreneurs to women finalized focused plans for improvement learn in a more advantageous context, leading to rather than more general plans for attempting improved business performance and investment. a variety of endeavors. All the participants who True entrepreneurs learn best from their peers— completed the program are positioned to be other entrepreneurs with whom they have a more competitive in the marketplace without trusting relationship—by means of sharing reducing their prices, as shown by the growth plan practical, real-world experiences to improve summaries in appendix F and in feedback from the confidence, risk taking, and business management business coaches. Fundamentally, the program capabilities. helped the women understand and fill gaps in their business knowledge and determine a clear focus Overall, the MWEC program and MWEC-L to move forward. For example, the participants benefited the participants in all three countries. requested an accounting workshop once they Positive media attention raised public awareness realized they lacked knowledge in this key area. All of the workshops, the participants, and their the women benefited from the workshop and keep businesses, which participants believe has helped coming back to the project implementation team them to grow their revenues. Based on pre- and for continued support. post-surveys administered to the participants, feedback indicates that the IC&C workshops met objectives in terms of developing creative and 4.1 Initial Outputs and innovative ideas, building trust and relationships, and increasing confidence levels by providing Outcomes relevant business information and knowledge. The following data covers the period up to November 2013. Ninety-six percent of Lao participants felt that their networks with women were stronger to Over the next two to three years, the expectation is significantly stronger post-workshop, compared that revenues, jobs, and investment will increase to 76 percent who rated their networks as average as a result of the program, once participants have to weak prior to the workshop. All participants implemented the growth plans summarized in in Cambodia and Vietnam rated their business appendix F. To date, most of the participants report networks as strong or significantly stronger tangible improvement to their businesses. This following the workshop. This is highly significant in starts with the positive media associated with the a region where networking outside of close family full program in all three countries and reports of and friends is limited. The sharing and learning increased revenues in a number of the businesses. continues to date, in both formal and informal A number of case studies illustrate the emerging aspects. impact of the program, and the Lao PDR business expansion plan summaries show how the program In Lao PDR, 84 percent of participants said they helped refine expansion plans and report initial have thought about producing new products and progress toward these plans. services or accessing new markets since the 18 TABLE 5: Initial Results Initial Results Marketing and selection Reach: approximately 1,000 women via Facebook and other social media platforms, email blasts, partners, cold calls, and information sessions Applicants Lao PDR: 130 Cambodia: 57 Vietnam: 52 Program Participants Lao PDR: 25 Cambodia: 22 Vietnam: 21 Outcomes $ Amount of contracts secured by women entrepreneurs: Approximately US$2 million secured by 10 women; revenue leverage of 8.8 compared to the cost of running the program # Customers secured by women entrepreneurs: Over 2,000 secured by 10 women Dollar amount of investment secured by women entrepreneurs: Approximately US$400,000; investment leverage of 1.76 compared to the cost of running the program 15 new direct jobs and 40 indirect 10 new jobs created for women 19 5 Program Lessons lessons and the challenges with implementation. One-on-one coaching can be implemented at the completion of the other modules, or it can be interspersed with peer learning on a case-by-case basis. The following section reviews the overall Each element can be managed as a stand-alone program results and provides lessons learned activity, but without the peer learning sessions the for future program implementation as well as IC&C workshops have less impact, and both have for policy makers, donors, and other interested less impact without relevant technical seminars, stakeholders. entrepreneur talks, and one-on-one coaching. Program improvements are largely related to organization and delivery, as indicated by the participant feedback surveys, advice from the 5.1 Positioning for facilitators, and feedback from the implementation team. The program lends itself to a modular Growth-oriented Existing approach, with the IC&C workshop and peer Entrepreneurs learning sessions as core modules, complemented Focusing on growth-oriented existing businesses by entrepreneur guest speakers, technical addressed a gap in the market in all three seminars to address particular needs arising in countries. However, it is more easily observed the peer learning, and one-on-one coaching as in Lao PDR, where the full program was offered. outlined below. Existing interventions tend to focus on new starts Initially, the program was designed as a sequential and microbusiness development, as is the case in set of modules, as shown in the diagram on the most countries. An example would be the business next page. plan competitions of the World Bank Adolescent Girls Initiative–STEPS program and microbusiness However, the technical seminars and entrepreneur development services provided by the government lunches should be interspersed with the peer of Lao PDR’s Department of SME Promotion learning so participants can apply and discuss (DoSMEP). ŶƚƌĞƉƌĞŶĞƵƌ /ŶŶŽǀĂƟŽŶ͕ ůƵŶĐŚĞƐ ƌĞĂƟǀŝƚLJ and  ŽŵƉĞƟƟǀĞŶĞƐƐ dĞĐŚŶŝĐĂů tŽƌŬƐŚŽƉ ^ĞŵŝŶĂƌƐ and WĞĞƌ>ĞĂƌŶŝŶŐ One-on-One ŽĂĐŚŝŶŐ 20 Mekong Women’s Entrepreneurship Challenge Project ƉƉůŝĐĂƟŽŶ Seminars ĂŶĚ Workshops Workshop on /ŶŶŽǀĂƟŽŶ͕ ƌĞĂƟǀŝƚLJĂŶĚ ŽŵƉĞƟƟǀĞŶĞƐƐ 1 to 1 Coaching Peer Learning Compared to microbusiness development, the whom will not proceed and who then risk failure. MWEC program can only ever aspire to assist Research typically shows that entrepreneurs who a relatively small number of people. DoSMEP grow businesses have prior work experience (IADB have trained thousands with their business 2002) and, more controversially, that far better development programs, whereas MWEC only impacts are achieved by focusing interventions on assisted 25 in Lao PDR, and of these only 10 the small percentage of existing growth-oriented were selected for the full program. It should businesses.7 In the end, it is not a question of one be noted that only a small percentage of small approach or the other but of both approaches in a and medium-size entrepreneurs are considered well-functioning innovation and entrepreneurship growth oriented,6 typically the 3 to 5 percent who ecosystem. are gazelles. For similar reasons, focusing on new start-ups, 7 Economic gardening, which first started in Littleton, typically with students who risk unemployment, Colorado, found that focusing on the 3 to 5 percent of attracts large numbers of participants, many of gazelles produces far better impacts and outcomes than more generic approaches and has since rippled around the world (http://growinglocaleconomies.com/economic_ 6 GEM 2004 estimated 3 percent, while other research has gardening). More recently, NESTA found that 6 percent noted that it may be as high as 10 percent; microbusinesses of companies generate more than 50 percent of the in all countries is approximately 90 percent. employment in the United Kingdom (NESTA 2009). 21 Implementers need to be prepared to champion 5.3 Selection Process and the focus on existing growth-oriented companies, as opposed to new starts and microbusinesses. Criteria A need to raise awareness to other ecosystem The goal of the selection process was to select players about this focus is important for existing growth-oriented women entrepreneurs development and business growth. with realistic growth plans. This was achieved in all three countries. In Lao PDR, the first tier of selection was to choose 25 participants for the 5.2 Marketing and Promotion IC&C workshop out of 130 applicants, and then to select 10 participants for the remainder of While marketing and promotion of the program the program. In Vietnam and Cambodia, only the were successful in all three countries, they are workshop was offered, resulting in only one round dependent on the drive of program implementers of selection. A number of lessons and observations and any implementation partners. To find genuine emerged in this process. growth-oriented entrepreneurs is a matter of proactive direct marketing, or as noted by the Stratification by education and age. In Lao PDR, project implementation team, a “foot-soldier the participants naturally broke into two groups: move.” There is a demonstrated need to liaise (1) those with better education, often younger, and with chamber associations, sector associations, with international experience based in the capital or other government and nongovernmental city of Vientiane; and (2) older participants with less organizations to tap into existing networks. Follow- education not based in Vientiane. Those with less up targeted sessions providing presentations and education appeared more reticent in the presence individual coaching for application submission are of their better educated peers and did not share also vital. as freely. Sometimes the pace of the group was constrained by those who lacked wider education As no control group was established prior to and exposure. The participants with better education program commencement, it is difficult to assess and international exposure talked more easily in the benefit to those applicants who were not groups and might, at face value, be considered to selected. However, simply answering questions be more entrepreneurial and growth oriented, but it not customarily asked of these entrepreneurs was not, in fact, the case. Those based in Vientiane via the application process may have provided found it easier to network together and continue to a benefit to the entrepreneur’s business and network, whereas it proved more difficult for those plans for growth. This has been noted by the from regional areas. On the other hand, the cross- project implementation team in Lao PDR and was pollination between the two groups was beneficial echoed in Vietnam, where the Vietnam Women and mutually appreciated. Entrepreneurs Council, under the Vietnam Chamber of Commerce and Industry (VCCI), found Supporting participants from higher income the design of the questions in the application form groups. Inevitably, in selecting growth-oriented “very useful and intelligent.” All advance teams entrepreneurs on the merit of their growth plans in search of applicants for the program noted the in less developed economies such as Lao PDR, a benefit of meeting applicants prior to making a bias can exist toward those from higher income decision, rather than just reading the application levels, unless means testing is included as criteria. itself. Put simply, applicants with better education, international exposure, and support from their Local partners with exceptional, unique, and broad families and assets can sometimes be in a better networks as well as the necessary resources are position to grow their business. This may lead vital to finding and selecting growth-oriented to questions about supporting populations who entrepreneurs, for which direct marketing are less in need of help than others through and one-on-one sessions with applicants are such programs. In Lao PDR, where the project fundamental. Mass media advertising might implementation team raised these issues, the work for generic start-ups, but it is inadequate selection resulted in a mixture of participants from for selecting the minute percentage of growth- all income levels. oriented enterprises, as opposed to the mass of microentrepreneurs. 22 Winners and losers. In Lao PDR, 25 people • Five participants attended the infoDev 5th attended the IC&C workshop, with 10 finalists Global Forum on Innovation and Technology selected for further intervention, unwittingly Entrepreneurship in South Africa, held in creating two groups of winners and losers. At May 2013. times the networking broke down following this In Lao PDR, 10 winners were selected to segmentation. In retrospect, it would have been participate in a series of other follow-up activities, beneficial to continue the full intervention for all in addition to receiving a grant of up to $9,000. 25 initial participants, creating two groups for peer learning, for which the maximum in any one group Post-program evaluations clearly show that grant is around 12 people and the minimum around 7, funding was not the main benefit and motivator, for the personal dynamics to work properly. compared to the networking and learning. A guest speaker for the program and a successful woman One tier, not two, of selection. If the full program entrepreneur encapsulated the drawbacks of is to be offered, as in Lao PDR, then it will be less these types of funding. Cash funding/grants can divisive, simpler, and more efficient to conduct distort thinking and objectives, with a project- only one selection for the workshop and not have by-project and dependency mentality, rather a second round of selection for the remainder of than encouraging entrepreneurs to focus on the the program. Participants would still rework and sustainability of their business. Moreover, in some resubmit their growth plans after the workshop, cases the cash funding proved insufficient for but all would continue through the remainder of participants with much larger businesses or from the program. higher levels of income. Composition of peer learning groups. The issues Follow-up support as a prize. Rather than cash mentioned above, specifically regarding the divide prizes, participants should pitch for follow-up between those with higher education levels and support and technical assistance, which may be international exposure, can be addressed by donated by sponsors or provided as an investment careful attention to the composition of the peer from third parties in locations where this is a learning groups and good facilitation, encouraging realistic option. This preserves the benefit of cross-fertilization and easy networking. pitching and avoids perceptions that grant funding Geographic segmentation is also important, and, in may have different impacts based on income retrospect, it would have been constructive to have levels. It also focuses participants on developing one peer learning group for those from the capital their business rather than winning grants/funding. city and a second group for participants from the As such, pitching for ongoing support should be outskirts, and for the two groups to come together incorporated after the peer learning. from time to time. Knowledge gained about the participants and their businesses during the It is still an option to use the program and workshop gives organizers invaluable information provide grant funding, noting that it be linked for formation of the peer learning groups. Based to specific business growth activities, mutually on the information gleaned from the participants, agreed between the winner and the organizer, but the learning groups can be structured to ensure recognizing the perceptions that may result as a diversity of skills, type of business, personality discussed above. types, and lack of direct competition in order for the entrepreneurs to meet and engage together relatively easily. 5.5 Innovation, Creativity, and Competitiveness Workshop 5.4 Grant Funding As noted in the survey data, the IC&C workshops Following the three-day workshops, participants achieved the targeted objectives of building were asked to submit a second-round application networks, trust, and relationships for peer form, from which winners were selected. In learning; improving thoughts about innovation Vietnam and Cambodia, 10 winners received the and competitiveness; developing creative and following: innovative ideas; and building and increasing confidence levels by providing relevant business • Five participants received $2,000 cash prizes to information and knowledge. The workshops’ improve and expand their businesses. success was due largely to the level of trust among 23 FIGURE 6: Participant Confidence Levels 60 52 50 43 йŽĨƉĂƌƟĐŝƉĂŶƚƐ 40 30 20 10 5 0 0 0 DƵĐŚůŽǁĞƌ Lower ^ĂŵĞ Higher ^ŝŐŶŝĮĐĂŶƚůLJ higher ŽŶĮĚĞŶĐĞůĞǀĞů participants, the dynamic facilitators who spoke • “Now more focused and not trying to sell the local language, the implementation team, and to everyone—better product definition and the adaptation of concepts and materials to fit customer targeting.” cultural context and participant needs. As noted • “Helped me see the opportunities to employ by one facilitator, it is “the departure point to open and help more people.” peoples’ minds . . . the starting point for learning and business planning.” The workshops had both Quotes illustrating the networking benefit: business and personal development impacts, as • “Networking was great.” shown by the participant quotes below. • “Most important to meet real people who are Quotes illustrating the personal benefit: successful and to learn from them.” • “Confidence—how to present myself, how to • “Amazing to get to know all of these talented talk about my business and to define myself.” hard working women. . . . inspired me to realize the capacity I have and to learn more, through • “Confidence—public speaking.” connections with these guys.” • “Gave me the confidence to make a decision to • “Made us realize what networking is like, grow my business through shifting to training, without jumping into the big text book.” advice, and supply of materials. . . . and now I’m excited.” • “Got to learn and think and reflect from others.” • “Inspired me, opened my mind to business, motivated me to run the business, and be with In Lao PDR, 96 percent of participants stated that the business more—gave the starting point.” their networks with women entrepreneurs were stronger to significantly stronger post-workshop, • “Helped organize my brain.” and in Cambodia and Vietnam the ratings were The results regarding improvement in participant similar. Prior to the workshop, 76 percent rated confidence are noteworthy, as shown by the post- their networks as average to weak. Moreover, workshop rating for Vietnam participants, which networking was the top reason why participants was similar for both Lao PDR and Cambodia. said they would recommend the workshop to other women entrepreneurs. Quotes illustrating the business benefit: The Participant Centered Training (PCT) • “All the activities were meaningful in techniques employed in the workshops by themselves, for example, team cooperation and facilitators was a feature that needs to be retained. focus—goal focus.” 24 FIGURE 7: Participant Network Strength 80 68 60 йŽĨƉĂƌƟĐŝƉĂŶƚƐ 40 28 20 4 0 0 0 sĞƌLJǁĞĂŬ tĞĂŬ ^ĂŵĞ ^ƚƌŽŶŐĞƌ ^ŝŐŶŝĮĐĂŶƚůLJ ƐƚƌŽŶŐĞƌ Network strength It was new to most people and very highly the facilitators need to combine skill sets as appreciated. mentioned in the earlier section. Reduce content. Even though the workshop was Training of trainers needs to include PCT training successful, exit surveys noted that it was too as well as the content of the program. Facilitators crammed with content and aimed to accomplish need to be carefully chosen for their experience too many objectives during a small period of time. working with growth-oriented entrepreneurs and Content should be adapted to local markets. For their capabilities as trainers and facilitators. They example, in the Mekong the content on external should speak the local language and have an risk and competitor analysis was too advanced for understanding of the local environment. Trainers participants. In addition, participants may not have should undergo a train-the-trainer process to the necessary data for analysis and synthesis of ensure the relevant PCT skills are acquired and these topics. they are well versed with the training material. Reduce the length of the workshop. Three days was simply too much for entrepreneurs with hectic businesses. Many women entrepreneurs 5.7 Peer Learning found it difficult to block out large chunks of time In Lao PDR, the 10 winners participated in a series from their day-to-day business activity. However, of facilitated peer learning sessions focused most realized that the same impact would not on topics including SWOT analysis; market be achieved with only a couple of hours per day assessment and marketing; resource management spread over weeks. The third day of the workshop and budgeting; and time management and was set aside for participants to work on growth lifestyle choices. The peer learning adapted plans, largely on their own, and with assistance the Springboard Business Growth Program from the facilitator. This component does not need methodology and was conducted in one three-day to be offered as a part of the workshop itself, block (though the initial design suggests a spread which can then be accommodated in two days. of seven two- to three-hour sessions over a longer period). This structure was not successful, as it did not allow time for reflection and implementation 5.6 Facilitators between sessions and required participants to be away from their businesses for too long. All participants in the IC&C workshops provided positive feedback on the facilitators. To succeed Nonetheless, the style of facilitated peer with the workshop and the peer learning, learning around particular topics was valued 25 and appreciated. The women learned from each learning and discussion about how learning is other, appreciated the networking, and in some implemented and challenges overcome. cases proffered a venue for further business opportunities. Improve communication between sessions and after the program. The momentum of peer The majority of participants agreed that the group learning will be sustained with clear, structured was supportive, the content and information was communication channels for participant use applicable to their business, and that peer learning following the peer learning sessions. Even significantly changed how they observed their though networking and communication will be business and what they do in their business. improved by spreading the peer learning out over a longer period of time, improved communication The majority of participants agreed or strongly between sessions and after the program will be agreed with a variety of statements about the a valuable enhancement. The program should peer learning program, including the fact that make provisions for formal facilitation of the it confirmed participants’ thinking (giving them communication process. the confidence of their decisions) and provided practical ideas that could be applied in their businesses (see appendix F for breakdown). 5.8 Business Seminars Multiple sessions not all in a block. The project Technical seminars were organized in response implementation team, participants, and the to needs expressed by participants in the peer facilitator all agreed that the peer learning should learning. Two seminars were held covering be spread out over at least four to five days in marketing and accounting. The accounting two- to three-hour sessions, with time in between workshop, “Finance for Non-finance Managers,” for reflection and to apply the learning to the was timely and very beneficial, according to business. The participants should determine the participant feedback. It helped them understand frequency of meetings with their facilitator. the gaps in their knowledge, the importance of good financial management, and left them wanting Sessions 1 and 2 are not required. Given that peer to learn more. After the workshop, 100 percent of learning follows the IC&C workshop, the first two participants ranked their knowledge of accounting sessions outlined in the Springboard Business and finance as higher to significantly higher, as Growth Program manual—Introduction & shown on the right. Networking and Mickey Mouse or Mini Empire (commitment to growth and competitiveness)—are For some participants the session was too short. redundant. For others, templates proved useful, although the support needed is often more specific than Retain flexibility with the content. Recognizing can be provided in templates. For example, one that the needs of participants will vary with entrepreneur coped well with the cash flows of time and location of the program, the content her business but struggled with stock, wholesale, addressed in the peer learning session should be and debtor problems. For others, the workshop decided by the participants, using the topics in the convinced them to hire an accountant for their manual as a guide. businesses so that they can focus on the business Use local facilitators. In order to have regular two- itself. to three-hour sessions, local facilitators should Following the marketing workshop, the majority of be used and trained accordingly in a train-the- participants said the workshop encouraged them trainer program. It is also essential to use local to think outside the box in terms of their marketing facilitators so that local conditions are immediately strategy and approach, and most planned to understood. change their strategy as shown in the chart on Interweave technical seminars and entrepreneur the right. talks. Rather than adopting a linear approach Feedback from participants to the facilitators and with technical seminars and entrepreneur talks organizers indicates participants seek practical scheduled after the peer learning sessions, these tools for marketing, especially to validate the components should be interwoven with the peer market for new products and services. learning, as and when needs arise. This will enrich 26 other technical workshops, the ideal methodology FIGURE 8: Accounting Knowledge of Participants is to provide individual consulting support to each entrepreneur following the workshop, to demonstrate to participants how methodology can be implemented. 20% Interweave with peer learning sessions. Particular topics such as accounting or aspects of marketing will almost always arise in peer learning sessions. If the peer learning sessions are spread out as recommended, then technical ^ŝŐŶŝĮĐĂŶƚůLJ,ŝŐŚĞƌ seminars can be interwoven to address chosen 80% ,ŝŐŚĞƌ topics in detail, which can be used for further ^ĂŵĞ reflection and discussion about what each >ŽǁĞƌ DƵĐŚůŽǁĞƌ business is doing in practice. Personal development workshop module. A personal development module should be developed and included in the standard material. FIGURE 9: Marketing Strategies of Participants In countries where self-reflection is not a norm, the inclusion of this module may be optional. Market validation workshop module. Participants seek concrete tools to assess the market for 13% new products and services. Learning from The Lean Start Up,8 If You Build It Will They Come,9 IC2 Advanced Commercialization Training,10 and other similar methodologies for market validation, a specific workshop module on market validation can be developed. These Yes No methodologies are transforming the start-up 87% and business development landscape, for which market validation is now considered to be far more important than market research or business planning. The initial design involved a personal development 5.9 Entrepreneur Talks module to reinforce the idea that entrepreneurship Learning from successful women entrepreneurs is as much about personal development of in an informal setting was highly valued by the the entrepreneur—to develop their personal participants. In Lao PDR, the two speakers had resilience, leadership, and other entrepreneurial memorable experiences to share, gave clear characteristics—as it is about technical business explanations, and were inspirational. One hundred development. percent of the participants recommended inviting Participants often noted that the current the speakers back again. program gave them confidence, and in Vietnam Successful entrepreneur talks in informal settings leadership development was noted as a necessary should be offered as a core component of the improvement. This supports the argument for program. more content to help individuals develop these personal characteristics. Accordingly, an optional personal development workshop module is warranted. 8 http://theleanstartup.com/. Combine sessions with one-on-one coaching. 9 http://drrobadams.com/books/. To obtain the most impact from accounting and 10 http://ic2.utexas.edu/education/act/. 27 5.10 One-on-One Coaching resources. Longer engagement will be more beneficial and should be incorporated when A benefit for the participants was access to budgets permit. experienced business consultants to review and discuss their expansion plan and their overall business. Each entrepreneur received three days of one-on-one support, with review and analysis of 5.11 Networking their business and market, in-person discussions, Networking, facilitated through activities as well and development of a focused plan on an area of as the associated sharing and peer learning, concentration. This helped participants refine and was one of the most important benefits reported implement their growth plans. Generally, coaching by participants. The facilitators observed levels focused on marketing, distribution, or accounting, of trust develop while participants helped each which were the main knowledge gaps. other and introduced others to their own personal networks. After changing mental frameworks Feedback from the entrepreneurs and organizers, and learning about new tools to help grow their as well as analysis of business expansion plans, business, participants require a network of their indicate that one-on-one coaching was valuable, peers to apply what they have learned and to help helping the participants to apply concepts that they cope with similar challenges. learned earlier in the program. The majority of participants updated and changed their business Participants all expressed a willingness to share expansion plans. Examples range from shifting knowledge and in some cases even their financial focus from exporting to domestic markets, to information. Even though some networking focusing on developing distribution channels for continues without facilitation, both informally and new products. formally, this aspect can be improved. Participants and the project implementation team believe An indirect outcome of the coaching among most that independent facilitation and organization is of the participants is awareness of where help is required to keep up momentum and maintain the needed and a willingness to pay for professional networks. assistance. Some participants may need coaching from individuals with very specific industry Peer learning sessions. By dispersing the peer expertise. learning component, networking will have more time to take root in a culture where networking One-on-one coaching is clearly valuable, although outside of family and friends is not the norm. how much can be provided is constrained by 28 6 Program Costs and Sustainability over longer periods of time with fixed costs such as program management fees, training materials, and some operational costs remaining stable. 6.1 Budget and The program was delivered in all three countries Cost-Effectiveness for $430,225. The cost to run the full program version in Lao PDR was $226,000. While a number of similar programs currently exist, this pilot program aimed to consider how It is too early to consider the cost-effectiveness similar programs could be run in other countries of business impacts from the program, although or regions and whether they can be sustainable. these figures will be tracked over time. The Although the first iteration of these types of following figures look at the cost per participant programs may require injections of funding from for the various components as well as the program donors, governments, the private sector, or other as a whole in Lao PDR. interested stakeholders, often the costs diminish Cumulative Duration No. of Cost Cost per Cost per MWEC Lao PDR Cost Item (days) Participants (US$) Participant Participant Marketing 15 133 18,000 135 135 Workshop on Innovation, Creativity, and 3 25 15,000 600 735 Competitiveness Peer Learning 3 10 12,000 1,200 1,935 One-on-one Coaching 3 10 11,000 1,100 3,035 Workshops and Guest 6 10 5,000 500 3,535 Speakers Subtotal 61,000 3,535 No. of MWEC Lao PDR Cost Item participants Cost (US$) Project Implementation Team Fees 35,000 Activities, Implementation, and Operational 40,000 Expenses Subtotal 75,000 Full Cost for Participants 61,000 Total 10 136,000 Grant Funding 10 90,000 30 Cost decreasing measures ↓ • Use previous marketing materials • Leverage only the most cost-effective channels • Exploit the success and popularity of previous editions • Use volunteers for screening and selection MWEC marketing • Program already set up and designed • Know-how and expertise gained • Economies of scope • Use volunteers for activities management Program • Materials available tailored to local reality and business environment management fee • Gained expertise in most cost-effective mechanism for successfully running the program Activities • Switch program focus from grant funding toward education and networking implementation and operational expenses Participant grant • Use materials from previous editions funding • Training of trainers IC&C workshop • Use materials from previous editions, remove least useful sessions (according to previous edition participants’ feedback) • Training of trainers Peer learning • One-on-one coaching on a pro bono basis One-on-one • Use previous edition participants as guest speakers coaching • Restaurant-sponsored lunches • Local university and private sector involvement, rather than professionals, as workshop speakers Direct costs for the full program are in the order 6.3 Charging Fees of $3,535 per participant ($735 for the workshop alone), excluding grant funding for prizes and Feedback from the participants in Lao PDR, organizational costs. Vietnam, and Cambodia indicates some preparedness to pay for the program, even though this is not the norm and many other programs are fully supported by donors. Payment by participants 6.2 Sustainability is sometimes used as a mechanism to ensure The changes recommended earlier, in particular, attendance and completion. However, even without allowing all 25 participants to continue on after the payment 100 percent of MWEC participants IC&C workshop to peer learning, coaching, and completed the program without any dropouts. other workshops, will make the program more cost-effective, even allowing for an increase in In Lao PDR, 92 percent said they would be willing personal coaching time. to pay for the training. The overwhelming response in Vietnam and Cambodia was positive; however, Variables to the program costs are outlined above. 11 percent of participants from Vietnam and 31 29 percent from Cambodia said that they would not a good track record in supporting and growing be willing to pay for training. enterprises. In most cases, the preference would be an entrepreneur-led organization from the In Lao PDR, when asked how much they would be private sector, as this would encourage relevance willing to pay, participants gave several different (effective coaches who have experience in running answers, as this was a free response question. their own businesses), rapid response times, and The most common response was $12.50 or about the sharing of good business practices. 100,000 Lao kip for training similar to the workshop. Building sustainable capacity in a local The hypothetical amount participants stated organization is important for continuity, and given that they would be willing to pay would cover that employees are very mobile, a partner should approximately 15 percent of the total expenses be selected that intends for this to become one incurred to run the workshops (for example, of its core offerings. In this way, there should be logistics, facilitator, translation), excluding adequate resource planning and allocation, as well organizational and management costs. as a knowledge base retained and grown within the organization. While participants are prepared to pay modest fees (estimated at 15 percent of costs), and payment Similarly, a core of trainers should be capacitated validates value-add and commitment, this is in the country to deliver future training. A train- insufficient to cover all the costs in a market the-trainer component should be included, like Lao PDR, where such services are donor- where local trainers are selected, trained, and supported and paying for this type of support is not endorsed to deliver the IC&C workshop and the norm. However, it must be noted that sponsors thereafter monitored. This not only strengthens might not want to have participants pay, fearing and builds local capacity, but also should ensure the potential negative impact this might have on that the material remains relevant for the local their brands. environment. Recommendation: A program such as MWEC will be dependent on some level of sponsorship, most often at the 6.5 Creating an Alumni onset of the program. Although the participants Network should be charged an affordable fee to ensure Previous participants’ involvement as alumni their commitment by the associated value-add, is key to the successful implementation of the it is highly unlikely that this fee would cover the program. Winners from earlier editions can be overhead component. Hence, it is important to the best ambassadors for subsequent editions, identify local ownership of the program up front, providing a potential source of applicants through for example, through potential sponsorship or their networks, and their involvement can also donor funding. These program funders should be one of the most valuable assets for program be engaged actively throughout the process so management. that they are witness to the rollout and impact of the program, resulting in their continued In order to guarantee previous winners’ buy-in. The identification of any potential funders involvement, a program committee should be should, therefore, be an activity at the start of established. The program committee serves as the the program, such that by the delivery of the first official representative to external stakeholders and workshop there is a committed sponsor who is supervises the implementation of the program. willing to continue supporting the program and Selected winners sit on the program committee ensure its longevity. as board members. In order to minimize the time commitment required from these members, the program committee only has facilitating and 6.4 Selection of a Local supervising powers. Board members meet once a month or every two months for monitoring and Implementing Partner evaluating the status of each activity. Previous Another important element of sustainability is edition winners can also be involved as guest the selection of the implementation partner. The speakers during workshops on entrepreneurship partner should ideally be a local organization with and as hosts of networking events. 32 Five Areas to Consider Prior to Program and their capabilities as trainers and Implementation facilitators. They should speak the local A number of points need to be considered prior to language and have an understanding of the adaption and implementation of the workshop: local environment. Trainers should undergo a train-the-trainer process to ensure the relevant • Type of Entrepreneur Participant Centered Training (PCT) skills are acquired and they are well versed with the The workshop should focus on the small training material. The balance of PCT skills proportion of entrepreneurs who are growth should be carefully screened. A facilitator with oriented, typically only 3 to 10 percent of all weak PCT skills is likely to end up lecturing, entrepreneurs. It may be important to learn and a facilitator with strong PCT skills, but more about the target market where the without real-world experience with the content, program is to be implemented, with surveys may be able to engage participants, but that and focus groups that can be integrated with facilitator will rely upon them too much for marketing and service delivery. content learning and will not be able to lead • Target Sectors discussions effectively. The workshop may or may not take a sector • Budgets and/or Funding focus, but it needs to focus on those businesses To ensure the sustainability of the program and sectors that can be globally competitive and to ascertain that the relevant results are if people are to grow profitable and viable achieved, a budget should be structured and businesses. If the workshop focuses on a funding set aside to reach target indicators. particular sector, any direct competitors need to be handled very carefully to encourage Mentoring development of trust and sharing, either by having direct competitors in separate groups infoDev’s Business Incubator Manager Training or by avoiding direct competitors all together. introduces mentoring as follows: “Mentoring So long as participants operate in different is developmental. It’s about building and market segments, varied supply chains, or strengthening the key business asset: people. with different product or service offerings, As such, mentoring is defined as an educational competition should not be an issue, and sharing process in which the mentor serves as a role can be richer and deeper as participants realize model, trusted counselor or teacher, providing how they may complement each other. opportunities for professional development, growth and support to less experienced • Program Implementers individuals. A mentor may give information, encouragement and advice to individuals as they The project implementation team for the plan and grow their businesses. The mentor workshop is one of the most important success is typically a person of greater experience and factors. Typically this is an organization or seniority in the field the mentee is entering. This firm with excellent private sector and business person acts as teacher, sponsor, counselor, development experience and expansive developer of skills and intellect, host, guide, networks. The team should understand exemplar and one who supports and facilitates the innovation and competitiveness and should realization of the mentee’s dream.” be at ease with the workshop content. The implementation team should also be able to The MWEC program did not involve traditional go back to their networks to select growth- one-to-one mentoring, but in its peer learning oriented entrepreneurs, a process that will and networking activities it is an example require much hand-holding beyond direct of group mentoring, whereby the group of marketing and advertising. entrepreneurs mentored each other, with the assistance of a facilitator. Feedback from the • Program Facilitator women entrepreneurs reinforces the importance The program will need to engage a specialist of the main aspects of mentoring noted above. facilitator to lead the workshop. Facilitators Trust is critical and was clearly developed among need to be carefully chosen for their experience the participants allowing them to share openly working with growth-oriented entrepreneurs, and honestly. The process helped develop the business incubation, private sector experience, participants personally, improving their self- 33 reflection, awareness and confidence, and Traditional mentoring, revolving around a one-to- business acumen, as illustrated by the following one relationship, is resource intensive, in terms participant quotes: of valuable mentor and mentee time. Compared to traditional mentoring, the group mentoring • “Amazing to get to know all of these talented inherent in the MWEC program is far less resource hard working women . . . inspired me to realize intensive, requiring only one facilitator to guide the the capacity I have and to learn more, through process of entrepreneurs helping each other. connections with these guys.” • “Inspired me, opened my mind to business, In the end, entrepreneurs learn best from other motivated me to run the business and be with entrepreneurs and mentoring is a powerful the business more—gave the starting point.” tool. One option is traditional mentoring, which matches a seasoned entrepreneur with a less • “Confidence—how to present myself, how to seasoned entrepreneur, for a lasting one-to-one talk about my business and to define myself.” relationship. MWEC shows that another less costly Some participants were more experienced than option is facilitated group mentoring. others and some knew more about particular topics than others. As such, those with more Women’s Entrepreneurship Program experience, or knowledge about a topic, were able Comparisons to help those who were less experienced, noting At the core of the MWEC program is peer learning all participants expressed benefit, irrespective and network development, which distinguishes of their experience. In the unlikely event that all it from other similar programs. As shown in the participants in a group are equally inexperienced, table below, other programs focus on business there is a danger that the blind may lead the management education, supplemented by blind, sharing poor business practices. As such, mentoring, network development, and finance. an experienced facilitator is crucial to guide the MWEC is subtly different in that peer learning process and ensure sharing of good as opposed and networking are at the core, supplemented by to poor practices. Another way to mitigate the risk business management education, coaching, and is to ensure groups have a diversity of experience finance. and skills among the participants. IFC Business Edge MWEC Goldman Sachs (no gender focus) Network development ✓Core program ✓ ✓ Mentoring (one-to-one) ✓Faculty Peer learning (group mentoring) ✓Core program Business management education ✓Supplements peer ✓Core program ✓Core program (technical seminars/workshops) learning, networking and coaching Entrepreneur talks ✓ ✓Training takes ✓ place in renowned business schools Coaching ✓ Finance ✓Prize ✓Under development ✓ with IFC 34 Appendix A: Complementarity with STEPS Specific objectives for STEPS: • Identify and support women and young In Lao PDR, the Supporting Talent, Entrepreneurial entrepreneurs who are seeking to start or Potential, and Success program, or STEPS, was expand a business (component 1). also in implementation through the World Bank • Provide employment services to unemployed Adolescent Girls Initiative (AGI). It was funded by and recently graduated young women and men the World Bank and Australian Aid in the amount who are looking for employment in the private of $400,000. The program was implemented sector (component 2) (Knowles 2013). over a two-year period in 2011 and 2012 in The partner for component 1 was the Young three provincial cities: Vientiane Capital, Luang Entrepreneurs Association of Lao PDR. Selection Prabang, and Pakse. STEPS was a competition criteria for the program included the following: designed to promote entrepreneurship among women with ideas for starting businesses. The • Existing or new microenterprise where $5,000 STEPS approach achieved its intended goals of in matching funds could be utilized effectively promoting entrepreneurship across a wide range • Demonstrated creativity in the business, that is, of the population, particularly among youth and a process to do things better women. STEPS used a business plan competition method to promote new ideas and excitement • Commitment from the entrepreneur about entrepreneurship. To maximize success, the • Market demand for the product/service winners received seed grants of up to $5,000 and mentorship support from the Young Entrepreneurs Two hundred twelve proposals were received Association of Lao PDR to turn their business (of which 144 were from women). One hundred ideas into reality. STEPS invested resources to twenty-two more detailed applications were inspire and promote entrepreneurship in the received (of which 75 were from women). Seventy- overall market, partnering with civil society and eight made the short list and qualified for government stakeholders to conduct its activities. entrepreneurship training, which was delivered by the Lao PDR–India Entrepreneurship Development STEPS entailed three components: Center, using ILO-certified training material. After the training, 67 revised proposals (business 1. Fostering a culture of youth entrepreneurship, plans) were submitted in the second round of the especially in women, using a “marketplace” competition, including 42 for enterprises led by model that identifies strong business ideas and women (or approximately 63 percent). supports young entrepreneurs with business skills training, mentorship, and seed grants. The second round of submissions involved 104 individuals, including 61 women. Thirty 2. Providing unemployed and recently graduated proposals were selected as finalists, including young women and men with employment 17 for enterprises led by women. In June 2013, services, including work-readiness-skills the finalists’ business ideas were showcased at training, career advice, job placement services, the Marketplace Exhibition and awards of “seed and links to internship and employment funds and mentorship” were given to 11 winning opportunities in the private sector. proposals, of which 7 were led by women. 3. Monitoring, evaluating, and disseminating lessons learned. Thirty-seven percent of the Marketplace Competition participants (of which almost half were women) reported that they had started a 36 new business or expanded a preexisting business If both programs were to continue, with time within a seven- to eight-month period after there could be a natural progression of some of completing the STEPS training. Feedback from the the women entrepreneurs from STEPS to MWEC, Marketplace participants indicated that women creating a pipeline for the MWEC program. Where entrepreneurs have limited access to capital, lack STEPS would be supporting participants in basic confidence in decision making, and receive less business training, including understanding support from society (Knowles 2013). their market and business model (as inputs to developing a business plan), MWEC would be challenging participants to differentiate their MWEC or STEPS offerings from those of their competitors and to position their businesses competitively for growth. Whereas the focus of STEPS was on early stage STEPS would reach a larger target audience, business development and on raising awareness of eventually focusing on a smaller, qualifying, entrepreneurship as a career option, particularly and committed group and providing them with among women and youth, the emphasis of MWEC business training. MWEC would be starting with a was on supporting more established (later stage) smaller group (for example, 25 participants) and women-led companies to grow. By exposing the providing intense, one-on-one support for those participants to innovative thinking in order to who commit to their growth plans. position their businesses more competitively in the market, MWEC supported existing women-led businesses in improving their growth prospects. 37 Appendix B: Springboard Program • Time is a key resource in short supply, consequently they need development input that is convenient, short and to the point, timely, The Springboard Program was developed as a and very tightly focused upon their real-world cost-effective program to support those with concerns. growth aspiration and potential, specifically for The Springboard Program is a facilitated peer existing growth-oriented small businesses attuned learning program that provides a context in which to the learning styles of entrepreneurs, and participating entrepreneurs can following government-backed research into home- based businesses in Australia. It has been used • Validate their own experiences by comparison successfully by many enterprise development with the experiences of other business agencies throughout Australia. The Springboard operators; Program is designed for entrepreneurs that • Scaffold on others’ experiences to accelerate typically have the following characteristics: development of their own business activity; • They prefer very active forms of learning with a • Gain knowledge of best practice, relate best practical, problem-solving focus. practice to their own context, and identify the • They value the opportunity to share experience, benefits of such an activity; and knowledge, and skills with people in • Develop a reflective approach to their own comparable situations. business activity to increase the learning • There are some key issues for which they will benefits of their own practical experience. wish to seek expert information and knowledge. 38 Appendix C: Peer Learning Content and Structure Session 1 Registration, Not applicable when a part of MWEC, for which the IC&C workshops serve introduction, and the same purpose networking session This session brings together all the participants and facilitators involved in the program. After the introductions and networking time, each group will get together with their facilitator. The aims, objectives, and content of the program are discussed and agreed upon. Session 2 Businesses— This session starts with the big picture, the pros and cons of doing business, Mickey Mouse or and then focuses in on the more specific personal aspects of each business. mini empire? The key issues and challenges in running and growing a business: managing time and stress, balancing work and home life, working on as well as in your business. Session 3 Marketing I: What This session focuses on defining businesses in terms of customers and sort of business are markets. Who are the competitors? What makes the participants’ businesses you in? different to other businesses in their industry, town, or region? What gives them the market advantage? Which product or service development would bring the greatest returns? Session 4 Marketing II: Getting Once participants have defined their market niche, this session considers how the word out, participants can most effectively reach their potential customers and build a marketing yourself broader customer base. and your products Session 5 Benchmarking This session focuses on how well participants know their business. Knowing financial the specific costs and returns of each type of business activity gives an insight performance and into where development time and ideas should be invested. Structuring structuring your business for growth means setting up and fine-tuning the systems that will business for growth allow growth—without burning out! Effectively interacting with financial institutions can be a key challenge. Session 6 Information and In this session participants sift through the “hype” to determine which communication technology can really add value to their business and how to get the support technology: Making they need to make it work. it work for you Session 7 Growing your In this session, the broader implications of growing a business are business: Making considered. Participants are encouraged to consider the context in which decisions and their business development plans sit, and form action plans and strategies planning action based on their work in the program, with a focus on strategies that help their business to grow—sustainably—so that they have a balanced approach to their life and their business! Session 8 Networking function This final session brings the members of all the groups back together for an and presentations opportunity to meet, network, discuss business, and develop opportunities. The session includes a presentation of certificates to all participants who have successfully completed the program. Time is also given for feedback and evaluation of the program. Participants and facilitators are encouraged to plan a review meeting for later in the year. 40 Appendix D: Facilitator Profiles Profile of Lao PDR Facilitator • Leading business incubator manager in Thailand • Taught courses at both undergraduate and graduate levels in human resource management, Lao PDR human resource development, leadership The facilitator is currently a staff member of the development, strategic management, performance School of Management Technology and Manager management, entrepreneurship and new venture management, and personal and interpersonal of the Suranaree University of Technology relationship development. Business Incubator in Thailand. She supported • Extensive consulting and training experience in the development of the workshop material and both the private and public sectors in the areas facilitated the three-day innovation, creativity, of organizational development and business and competitiveness (IC&C) workshops and peer management learning sessions in Lao PDR. After the Vientiane • infoDev certified incubator management trainer, workshop, the facilitator ran a two-day train- with participant centered training skills. the-trainer workshop for the two facilitators who were selected to deliver the IC&C workshops in Cambodia and Vietnam. This session provided an Profile of Vietnam Trainer opportunity to get familiarized with key concepts, training methodology, and participant activities. • Extensive business management experience • infoDev certified incubator management trainer, with participant centered training skills • Provided input into incubation of companies in Vietnam Vietnam. The facilator selected for the Vietnam component • Worked in an international cooperation as an is currently Southern Director at the Topica academic director and as a communications Education Group, an online education and business manager. • Teaches at the undergraduate and postgraduate incubation company in Vietnam. The facilitator level at several universities and works as a combines business management, business consultant for small and medium enterprises in incubation, and training experience with PCT human resources and strategy. methodologies. Profile of Cambodia Facilitator Cambodia The trainer selected for Cambodia is a • Provides practical training in selling and marketing business training consultant and specialist in in business ventures in the Cambodia-Japan entrepreneurship. Cooperation Center (CJCC). • Professional experience in organizational development and capacity building • Teaches at the local university in management and marketing, specializing in strategic management, human resource management, benchmarking, risk management, small business management, entrepreneurship, marketing research, marketing management, and sales management. • Owns several businesses, including a music store, restaurant, and a water purification business. 42 Bibliography Caliendo, M., and A. Kritikos. 2011. “Searching for the Entrepreneurial Personality: New Evidence and Avenues for Further Research,” Discussion Paper 5790, Institute for the Study of Labor (IZA), Bonn, Germany. Carland, J. W., F. Hoy, W. R. Boulton, and J. C. Carland. 1984. “Differentiating Entrepreneurs from Small Business Owners: A Conceptualization.” Academy of Management Review 9 (2): 354–359. Cuberes, D., and M. 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