Forests Sourcebook - HCV Resource Network

ANNEX 2.2A
CHECKLIST OF KEY ISSUES TO DETERMINE SME PROGRAM DIRECTION AND
FEASIBILITY
Checklist of Key Issues
Key issue
Possible intervention
Resource and infrastructure
1. Natural forest resources are insufficient to support Consider alternative investment programs or options linked to
enterprise development.
cultivation.
2. Natural forest resource ownership and access rights are not Consider support for land and natural resource reform programs,
secure, nor accessible to SMFEs.
including education and awareness raising of current land tenure
3. Basic business infrastructure does not exist (telecommunications, anomalies and potential for remedial reforms.
energy, transport).
Consider infrastructure development (bearing in mind potential
environmental consequences).
Market structure issues
4. Baseline diagnostics of SMFEs have not been carried out in-country. Start by commissioning an adequate baseline survey.
5. An entrepreneurial target group has yet to be selected for Conduct a selection process, drawing on criteria from Poverty
further assistance.
Reduction Strategy Papers, national strategic plans, and so forth.
6. Specific market surveys for potential products or services have Identify specialized products and services whose demand rises
yet to be carried out.
with increasing income.
7. No overseas ethical market niches or unique world-class products Focus on developing products and services tailored to the local
suited to export have been identified.
market.
Social and environmental safeguard issues
8. There is a lack of information about the sustainable management Consider investing in baseline biological and ecological research
of the natural resource in question.
and in associated education and awareness raising.
9. Target groups are not using business forms that guarantee Actively support such enterprises—or strengthen local governance
distribution of benefits (for example, cooperatives).
enforcement.
Business structure issues
10. Products or services are not specialized (beyond subsistence or Start by short-listing possible products or services for
seasonal gap-filler activities).
specialization (for example, using FAO’s MA&D).
11. There is a lack of business capacity within the target group. Ensure that capacity is developed and disseminated over a
specified period.
Financial and technological issues
12. Target groups are unaware of market trends, design, technology, Catalyse an information system that meets these needs (for
and the like.
example, buy trade magazines).
13. Target groups have inadequate financial services and lack Organize a mutual loan facility or develop forest-aware bank credit
collateral to take out loans.
guarantee systems.
Networking issues
14. Target groups lack the organization needed to collectively reduce Introduce the idea of creating an association, based around
costs, adapt strategically, and lobby.
principles of group success.
15. There are no small enterprise support networks that connect Develop a communication platform to link SMFEs with support
SMFEs with service providers.
services and customers.
16. Specific product-based market support networks for the Consider support networks, such as Fair Trade, or push for
entrepreneurial targets do not exist.
government procurement contracts.
Policy and institutional issues
17. SMFEs are not formally constituted (or evidence regarding Analyze the major bureaucratic and cost implications of formality,
this is inadequate).
and simplify legislation.
18. Surveys of policy and institutional constraints for SMFEs have Invest in an analysis of the main policy constraints.
yet to be carried out.
19. Subsidies to small and large enterprises are inequitable. Lobby for judicious subsidies or a level playing field.
20. Laws are not developed and/or enforced in a transparent Bring in independent monitors to expose corrupt practices and
and equitable manner.
strengthen judicial capacity.
84 CHAPTER 2: ENGAGING THE PRIVATE SECTOR IN FOREST SECTOR DEVELOPMENT