Business INCUBATION INITIATIVE in Nepal

The Project activities are aimed at planning for the provision of business incubation services to promote business innovation and private sector development. Such business incubation services should be planned through the integration and more effective use of information and communication technologies (ICT) into the business and small enterprise development process.

The ultimate goal is to build local capacity in the target business communities, raise awareness and promote the appropriation and utilization of ICT by local entrepreneurs and small businesses as tools to address their short- and long-term development goals, and facilitating the creation of a global incubator network for exchanging ideas and formulating best practices and lessons learned for designing and implementing business incubators in developing countries. The aim is to mobilize resources and build capacity within organizations in developing countries based on the available experience and best practices from across the world, catalyzing further investment and support from domestic and international organizations, and to document experiences in utilizing ICT to help infoDev and the Recipient better understand the impact of ICT on establishing business incubators in developing countries.

All activities will be conducted in accordance with a detailed Inception Report and work plan agreed upon between the ITPF and infoDev.

Target Activities

Assist organizations in planning for the provision of business incubation services to local entrepreneurs and small businesses.
Assess and address business support needs of small enterprises and emerging entrepreneurs, especially among groups that are underrepresented in the business community.
Facilitate multi-stakeholder consensus, collaboration, and decision-making: to mobilize resources and increase access to ICT infrastructure and better service delivery to small businesses.
Promote networking and knowledge dissemination regarding the effective application of ICT skills and related services for achieving business competitiveness in particular and for socioeconomic development at large.
Foster new alliances and partnerships to expand opportunities for ICT-enabled business incubators and small businesses from developing countries.
Generate and disseminate lessons learned and successful practices on the use of ICT for business incubation, enterprise innovation and business competitiveness.
Seek to develop human and institutional capacity for promoting and enabling the appropriation of ICT for small enterprise and e-business development.
Provide a strong demonstration effect leading to improved ICT policies that encourage investments and growth of the local small business community.
Raise awareness and promote closer cooperation and integration between national, regional and global activities for the promotion of ICT-enhanced business incubation as an effective engine for sustainable development.
Participate in activities coordinated by infoDev and the infoDev Incubator Support Center (iDISC), particularly those promoting the networking and knowledge dissemination components regarding applications of ICT for small business innovation and socioeconomic development at the local and international levels.
Document and share experiences by providing infoDev with detailed descriptions of efforts to utilize ICT in planning and establishing a business incubator, to design, market and provide business incubation services that attract potential clients, and to garner additional financial support from private and/or public resources.

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ITPF is expected to partner with other private or public institutions, SME development and innovation programs, venture capital investors, financial institutions, universities, enterprise clusters, business associations and NGOs, and:

Participate in activities promoted by iDISC and infoDev and contribute to knowledge sharing activities at the local and international level, particularly with other incubators and emerging enterprises.
Establish strategic partnerships with other key institutions locally and in other countries, aiming at providing complementary and cost-effective products and services, knowledge, networking, market integration, innovation, community outreach and financial support.
Establish a long-term, dynamic, and easily accessed source of knowledge on best practices in ICT- enabled business incubation that supports entrepreneurship development and innovation with a special emphasis on poverty alleviation and social and educational advancement.
Create a repository of business practices and needs, drawing from the experience in the country and elsewhere.
Network and establish partnerships to support the analysis, planning and testing of new incubator approaches within challenging private sector environments.
Document experiences and best practices in planning and establishing an ICT-enabled business incubator, creating strategic partnerships and attracting additional financial resources from both private and public resources.

Deliverables during Business Incubation Initiative

The following reports will be submitted as deliverables under the proposed grant project.

1. Project Inception Report
The inception report will serve as an extended form of this proposal for planning the incubator initiative in Nepal. The report will detail the terms of reference and a complete project implementation plan. It will provide a description of the specific objectives and will further outline the activities to be carried out. It will shed further light on the project management aspect while outlining the team structure, the job descriptions and biographies of key staff, milestones and timelines, a detailed budget, the evaluation plan and targeted outcomes. The report will also include a brief desk study for better utilization of the planning grant.

2. Incubation Environment and Needs Assessment Report
This report will be a thorough assessment of the current situation of the regulatory, policy, institutional, infrastructural, business environment and human resources issues in the implementation of the business incubation system and the use of ICT for the development of MEs & SMEs in Nepal. Prospective stakeholders will be identified and consultations will be conducted with them in order to prepare this report. The report is conceived to serve as an assessment report on Nepal's readiness for ICT-enabled business incubation. The report will evaluate critically the needs of the prospective client businesses that are to be incubated.

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3. Stakeholders Consultation Report
This report will provide a summary of the activities and results of the meetings and consultations with the various partners and stakeholders at various stages of the planning process.

4. Reports on the Workshops/ Seminars on the Incubator System
These reports will be submitted upon completion of the consultative workshops as well as the introductory, mid-term, and final seminars on the incubator system. Each of these should contain (i) the objectives, agenda, and the list of participants of the workshop/seminar, (ii) the seminar/workshop materials, and (iii) a summary of the evaluation of the workshop/seminar.

5. Quarterly Reports
Brief progress reports will be submitted at the end of every quarter. These reports will contain the quarterly financial statements of the project, and will describe the progress achieved during that quarter as well as the lessons learned. Project evaluation by the ITPF Executive Committee will also be included in these reports.

6. Final Incubator Planning Report / Business Plan
The final planning report will outline all the activities carried out during the project. The report will also outline the incubator business vision and strategy, the business model, and business lines and services. It will present an analysis of the target companies, their market positions, available facilities and infrastructure, and the value chain. It will detail the marketing and financial plans for setting up the incubator in Nepal. The final report will also include the criteria for selection of the candidates, besides containing a brochure and publication materials needed for starting the business incubator system in Nepal.

The final report consolidates the key achievements, lessons learned, best practices, the operational and business models, the summary of findings, the final evaluation and a long-term strategy for the development of a sustainable incubation program for Nepal. The final report will be submitted after completion of the planning phase.

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Business Incubator Planning Project Timeline

The human resources required for the project on full time basis is estimated and presented below.

Planning Project Milestones and Timeline

The project deliverables will be as given in the table.

Deliverable No	Deliverable title	Delivery Date	Nature	Dissemination Level
D 1	Inception Report	7th Sep 2004	Report	Public
D 2	Environment and Needs Assessment Report	30th April 2005	Report	Public
D 3A	Seminar / Workshop Report	Events	Report	Public
D 3B	Stakeholders Consultation Report	31st July 2005	Report	Public
D 3C	Training Report	Events	Report	Public
D 4	Business Plan	31st Aug 2005	Report	Public
D 5	Final Planning Report	31st Oct 2005	Report	Public
D 6	Quarterly Reports	As specified	Report	InfoDev level
D 7	Knowledge Dissemination	On going	Web Site	Public
D 8	CD ROM and Book	Oct 2005	CD ROM & Printed Book	Public Distribution

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