Agroforestry-based Enterprises: A framework for evaluating the enabling factors for Enterprise

Development

Siddharth M. Vishwanathan*, Stepha McMullin*, Joseph Tanui* *World Agroforestry Centre (ICRAF), Nairobi, Kenya

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Background

Smallholder farming systems in sub-Saharan Africa undergoing rapid changes

A number of reasons for poor investments in sustainable solutions : Weak institutional support, Gaps in technology adoption and extension services

models, Weak and inappropriate governance and regulatory

processes Low market integration.

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Strengthening Rural Institutions

Funded by IFAD and implemented by ICRAF and partners

Focusing on Capacity assessment and

building Platform development Enterprise development

6 sites in 3 countries in EA Participatory action-

research with emphasis on grassroots mobilization

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Strengthening Rural Institutions

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The need for enterprise development

Revenue generating activities beyond the subsistence level, leading to diversified incomes and additional employment opportunities

Enhance the sectorial links between agriculture, agribusiness, and non-agricultural economic activities

AF-based entrepreneurs and private sector can be important drivers of sustainable rural development

Important to create an enabling environment for market-oriented activities

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The first steps

Q: What are the key factors that enable development of rural enterprises? How do we know which of those do we focus on?

Based on literature and initial findings 8 key factors identified for consideration Can be broadly classified into three groups:

A. Increase capacity at the grassroots level B. Link to markets and servicesC. Create a conducive environment

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A. Strong Households

The 8 factors for enterprise development

A. Group capacity

B. Markets

B. Support services and resources

B. Private sector engagement

C. Hard and soft

infrastructure

C. Enabling environmen

t and policies

C. Knowledge sharing devices

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Surveying rural groups

Primary enterprise to be developed (existing or new) Purpose behind the enterprise Current status (planning, already implemented, etc.) Current physical and financial assets Sources of income for the group Challenges the group faces Support and training required Long term vision of the group

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Important challenges and support

Based on responses from 10 groups in Kapchorwa, Uganda

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Criteria for evaluating the factors

The eight factors may all be relevant Degree to which a project or program may aim to

address deficiencies in each of those factors will vary Based on three broad criteria

Importance Resourceintensity Influence

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Mapping the factors based on the 3 criteria

Based on responses from 10 groups in Kapchorwa, Uganda

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Next steps

Currently being piloted in three countries in East Africa

Create effective intervention strategies for each factor

Empirical data will further support its proof of application

Additional products will be developed From data collection tools to analytical tools

Be published with the finalized framework at the end of the pilot period

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Thank you