PAL Involvement in Business Development Activities

PAL Involvement in Business Development Activities

Introduction

Afghan communities are up against some tough challenges such as low capital, lack of technical skills, marketing management skills and business operating skills.  On the other side there exist the potential to develop natural resources and the communities show remarkable interest to utilize their resources and make best use of their skills to improve their livelihood especially in eastern zone of Afghanistan. Since however the constraints and limitations are not or only partly addressed by governmental and/or private sector, these are basic factors for slow business development or stagnation in eastern Afghanistan.

The speed of globalization faces all countries to new challenges and new competitions but offer also new opportunities. Afghanistan is poor country and has to face strong competition from their neighbors in business sector. Efforts are being made from part of international community and Afghan Government to improve the economical conditions of Afghans by rehabilitating the infrastructure and promote small scale businesses for income generation. One of limited opportunities in this field for people in rural areas of Afghanistan is to generate income from fruit production, honey production, fish production, rose production (distillery products), carpet waving, tailoring and embroidery for women as well.

The PAL

PAL is a 6 year EC funded project (2004-2009) in Eastern Afghanistan, partnered with the MRRD and managed by GTZ International Services.

PAL assisted and facilitated the process of participatory development planning on CDC, Cluster CDC (CDCC) at district level.More than 15 % of the proposals submitted to small by CCDCS from 20 districts of Nangarhar, Laghman and Kunar provinces in the field community development.PAL supports those who try to help themselves and are committed for the development of their communities. It needs community contribution and ownership concept to come up the communities to it full potential.

Proper guidance and training along with input provision as a start up tool kit for business development activities, including poor farmers is thought to be able to strengthen and expand the businesses. This approach is provided by PAL and will help the beneficiaries to lead their lives as successful professional business men and women and responsible citizens.

A network of professional working groups such as producer associations has been assisted by PAL and set up to a help to overcome the bad economic condition and help farmers to share their experiences and knowledge on production techniques and marketing. In addition it also enables them to access with their products larger markets. They can venture into businesses when investing commonly. They will be stronger investor and financer and make best use of the economy to develop their businesses.

The business association members can avoid the minor weaknesses and constraints in promotion of their business. They become capable to take risks and adopt new approaches in conflict resolution and problem solving.

PAL is committed to providing business development training to all producer groups that PAL has assisted to start SME such as local fruit producers, fish producers, rose oil producers, bee keepers and embroidery as professional and profitable business men and women. The mission of PAL is to develop the capacities of small and medium entrepreneurs and to demonstrate the potential business opportunities and growths. As such PAL is assisting in marketing training and support to demonstrate professional business opportunities even in remote rural areas.

Business Development Trainings

GTZ IS PAL conducted training need assessment of various producers associations in eastern zone of Afghanistan. Based on the close interaction with producer associations several areas of immediate priority and several areas of mid- term interest have been identified. Business development trainings were conducted according to the standards and are addressing immediate needs of a common farmer. The trainings are tailor-made, addressing the demand and needs of the beneficiaries.

Business Associations on national and sub-national level are confronted with some tough challenges such as low level of business management skills, poor marketing information, no marketing strategy, lack of communication, low capacity, low capital and insecure legal frame conditions and tax requirements. All these factors lead to unfavorable frame conditions for entrepreneurs.

Objectives of Business Development Trainings

PAL support and train the local and regional producer associations to strengthen their business development skills and operate a sustainable business. Three days BD trainings are designed to enhance the skills of the regional producer association members and to create awareness in regional associations to liaison with rural businesses and interfere in potential sub-sectors.

According to course design it is expected to achieve the following objectives, active participation of the participants provided:

·         Improvement of business skills and develop the talent to management quality of local rural producers to help them lead their lives as a successful professional business men and responsible citizen.

·         Provide knowledge of fundamentals of Marketing Management

·         Sketch importance and access to market information, channels and linkages

·         Explain ways and potentials to penetrate into new markets.

·         Manage their businesses in a sustainable manner.

Achievements

GTZ IS PAL is committed to develop the business skills of local producers. The local producers associations have shown remarkable interest by attending the business development trainings. So far, as of October 2009, twenty seven associations in the eastern Afghanistan provinces have been successfully trained by GTZ IS PAL. Each association was trained in Introduction to business, marketing and accounting respectively. In total 58 trainings have been conducted. The below listed associations received ITB and Marketing trainings respectively.

DISCLAIMER

This article has been produced with the assistance of the European Union and the GTZ IS. The content of this article is the sole responsibility of the author and can in no way be taken to reflect the views of the European Union or the GTZ IS.

The Project for Alternative Livelihoods in Eastern Afghanistan (PAL) is located at Jalalabad and funded by the European Union (EU) and implemented by GTZ IS