Project Title

APEC International Symposium and Workshop: The Cooperative Business Model (CBM) as an Alternative Tool for Financing SMEs 

Project Year

2018   

Project Number

SME 03 2018A 

Project Session

Session 1   

Project Type

Standard 

Project Status

Project in Implementation   
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Project No.

SME 03 2018A 

Project Title

APEC International Symposium and Workshop: The Cooperative Business Model (CBM) as an Alternative Tool for Financing SMEs 

Project Status

Project in Implementation 

Publication (if any)

 

Fund Account

APEC Support Fund 

Sub-fund

ASF: Micro, Small and Medium Enterprises (MSME) 

Project Year

2018 

Project Session

Session 1 

APEC Funding

90,000 

Co-funding Amount

40,000 

Total Project Value

130,000 

Sponsoring Forum

Small and Medium Enterprises Working Group (SMEWG) 

Topics

Small and Medium Enterprises 

Committee

SOM Steering Committee on Economic and Technical Cooperation (SCE) 

Other Fora Involved

 

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

Peru 

Co-Sponsoring Economies

Chile; Korea; Malaysia; Chinese Taipei 

Expected Start Date

01/07/2018 

Expected Completion Date

31/05/2019 

Project Proponent Name 1

Heber Fundes 

Job Title 1

Director, Cooperatives and Institutionalization 

Organization 1

Vice Ministry of SME and Industry, Ministry of Production 

Postal Address 1

Calle No. 1-60, Piso 9, San isidro, Lima 27, Peru 

Telephone 1

51-1 6162222 Extension 3251 

Fax 1

Not Applicable 

Email 1

hfundes@produce.gob.pe 

Project Proponent Name 2

Cinthia Yinki 

Job Title 2

Specialist, Directorate of Cooperatives and Institutionalisation 

Organization 2

Vice Ministry of SME and Industry, Ministry of Production 

Postal Address 2

Calle No. 1-60, Piso 9, San isidro, Lima 27, Peru 

Telephone 2

51-1 6162222 Extension 3251 

Fax 2

Not Applicable 

Email 2

cyinki@produce.gob.pe 

Declaration

Heber Fundes and Cinthia Yinki 

Project Summary

The Project is aimed to strengthen the relationship between cooperatives and MSMEs in APEC economies, proposing the cooperative banking model and the credit and saving cooperatives as alternative tools to improve SMEs access to financing and thus the local businesses growth.

The project would collect recommendations to enhance the bond between MSMEs and cooperatives that were proposed in the project “Improving the competitiveness of SMEs across the innovative cooperative model” developed in June 2012.

Hence, this project would emphasize how the cooperative business model improves the common good of society, strengthens MSMEs competitiveness and resilience, raises the access to financing and creates unique relationships between members and customers. The methodology followed is the exchange of successful experiences between APEC economies.

In the framework of this project, there will be a one day Symposium and a Workshop on December 2018, in Lima, Peru. The target audiences are government officials, policy makers, researchers, cooperatives, MSMEs, women and young entrepreneurs. As a result, government officials would learn about new financial tools and will be able to boost public policies that generate a competitive environment in APEC economies.

Relevance

Relevance – Region: The economic role and the economic growth participation are the most important MSMEs’ contribution for APEC economies, since they account more than the 97% of all enterprises and employ 50% of the labor force. Nevertheless, MSMEs must handle issues such as resource constraints, limited capital investment, lack of financial opportunities, incapacity to attend large-scale orders and therefore, they still have a very small participation within supply chain for global markets. 

One of the useful techniques implemented in developed economies to overcome these barriers is the cooperative business model. Cooperatives are usually successful because they find the right balance between maximizing the current owners’ well-being and maintaining the long-term MSMEs’ sustainability, they also create equal opportunities in the entrepreneur ecosystem. An innovative cooperative model emerges as an alternative to strengthen the competitiveness, internationalization and resilience of the real economic agents: MSMEs and households. 

This APEC International Symposium and Workshop will allow the audiences to have more access to new information, study cases, regulation, best practices, statistics, public policies and lessons learned about the cooperative business model. At the same time, it will open the discussion among government officials, policy makers, and institutional representatives, about the role and the importance of cooperative banks, and credit and saving cooperatives as a tool to improve the financial aid for MSMEs in APEC economies. 

Relevance – Eligibility: This project is lined up with MSME Sub-Group funding priorities as it allows the promotion and acceleration of regional economic integration, encourage economic and technical cooperation, enhance human security, and facilitate a favorable and sustainable business environment. The stakeholders, involving the private sector, civil society, and academic institutions will exchange experiences and political guidelines to boost the building of institutional capacities. 

Relevance – Capacity Building: APEC developing member economies need to build capacities in the areas relevant to achieve the long term goals such as sustainable growth, equitable development, and financial inclusion, reduction of economic disparities and acceleration of regional economy liberalization.

Furthermore, the MSME’s development is a key input in the strategy that boost the improvement of the economic and social well-being of the people within APEC economies. Hence, this project benefit the APEC economies participant because it promotes the cooperatives business model as a tool that helps the business network and enhance the most representative value chains.

Objectives

1) To widen options on financing for MSMEs’ through new financial tools;

2) To increase the equal opportunities in the business environment powered by the cooperative business model;

3)  To boost the cooperatives’ empowerment in order to strengthen supply chains and market access; and

4) To design and adopt new measures to facilitate the access of cooperatives to legal procurements, taxation legislation, market opening and credit access.

Alignment

Alignment - APEC:  This project is lined up with the main areas of the SMEWG Work Plan 2018, such as “financing for business expansion and capability development” and “inclusive business ecosystem that supports SME growth”. Also, it is aligned with the 2017 APEC SME Ministerial Statements, “enhances the economies’ cooperation with MSMEs support organizations, local governments and others”. It is also related with the fifth action of the Boracay Action Agenda to Globalize MSMEs which establishes the support measures to widen options on financing for MSMEs and further develop the infrastructure to facilitate lending to them. 

Alignment – Forum: This project is aligned with the mission of the SMEWG Strategic Plan 2017-2020, oriented to promoting financing for business expansion and capability development, including improving SMEs’ access to financing and funding support for business growth and discussing emerging financing mechanisms and tools for SMEs.

TILF/ASF Justification

Not Applicable.

Beneficiaries and Outputs

Outputs: 

1) A one-day symposium where the participants could learn about the cooperative business model from international and national speakers; and will be able to identify the cooperatives’ purchasing power and the significant influence of cooperative in the market. This is an open session for approximately 200 participants. In general, the participants will get information about the role of banking cooperatives and saving and credit cooperatives to widen options on financing for MSMEs, and the best practices and lessons learned by financing MSMEs, business leaded by women and young entrepreneurs in APEC region. 

2) A one-day workshop where participants can share information and best practices in APEC economies in the topics indicated in the agenda. This is a close session with small working groups. The combined contributions from a wide range of organizations and actors involved (ministry of economics, ministry of foreign trade, cooperatives associations, financial institutions, regulatory entities, big companies) will provide to the session tools for capacity building (legislations, budget, communicational strategies) that will help to create a more competitive environment for cooperative and SMEs within regions.

3) Summary conclusions and recommendations of the forum will be written by the Project Overseer and included in the Final Report which includes the results and main indications).

4) Technical materials presented during the Symposium and Workshop will be stored in soft copies to all the participants in both sessions, SMEWG focal points, and other stakeholders.

5) Final Report and the Completion Report, will be written by the Project Overseer and widespread through APEC Secretariat. 

Outcomes: 

1) The Final Report will include recommendations to be implemented in order to encourage the cooperative business model in the developing APEC economies.

2) The audience will have information available about the presentations, and main conclusion of the Symposium.

3) A final video as a visual summary of the main topics, conclusions and successful cases about the cooperative business model.

4) In the long term, at least, is expected to create one new financing tool available to APEC MSME’s through the cooperatives. 

Beneficiaries: 

1) The main beneficiaries (primary) will be the government officials, policy makers, researchers and experts. They will have the opportunity to think and build new strategies to push cooperatives model and also improve the legislative system and the taxation regimen for them.

2) The secondary beneficiaries of the project will be the MSMEs, young and women entrepreneurs trying to empower themselves. They will have the opportunity to learn about cooperatives as a powerful mechanism for organizational alignment and employee motivation. On the other hand, the access to financial services under sustainable conditions through a cooperative model will improve the social and economic welfare of its members.

3) Finally, cooperatives members/owners will manage more and stronger relationships, increase the trade and business partners, get to know new global stakeholders and finally the workshop will allow them to have a networking area.

Dissemination

1) All presentations will be stored in USB drives to be distributed all participants.

2) Videos will be presented about the statistics and successful experiences of local cooperatives in the economy.

3) All event will be delivered in real time by Live streaming. This is very important to expand the forum to local regions of the APEC economies and, particularly, to the focal points of the SMEWG.

4) A website will be available 15 days before the workshop to distribute information about the speakers, dates, place, program and presentations. The Ministry of Production will host the website inside the institutional website and will be responsible of its maintenance.

5) The main local leaders of the APEC economies, covering local development issues, are those who will disseminate experiences learned within their regions.

6) Final report on conclusions and recommendations about the cooperative business model as an alternative tool for financing MSMEs. This report will be written by the PO and will be posted in the created website for the workshop, APEC Secretariat web page and other relevant institutions related to this issue. Also, this final report could be translated to Spanish version (previous approving of the APEC Secretariat), so more people can learn these experiences.

Gender

1) The symposium and the workshop involve the participation of both gender, so that they can discuss and express their opportunities and difficulties of the cooperatives sector, such as access to finance, legislation, development of partnerships, and other topics.

2) The project will make the respective invitation to women entrepreneurs who lead cooperatives (30% of the total cooperatives in the economy) so they can share experiences of the efforts and challenge they manage.

3)  Encourage to have at least one recognized and well-known woman international speaker (20%) and at least two national women speakers (50%).

4)  Encourage to have al least 40% of women in the APEC Delegates Group.

Work Plan

The project will be scheduled according to the following timetable: 

Time

Task

Deliverables

September 2018

P.O. informs APEC Secretariat the beginning of the project, and establishes advisory committee and team work.

Email to APEC Secretariat

September 2018

Selection of the locations for the symposium and workshop, hire the equipment provider, prepare data base of potential stakeholders.

List of stakeholders and Terms of References

October 2018

Selection of the speakers, defining topics, gathering literature review and statistics, planning the program, website design and agenda for symposium and workshop.

First Draft of the Agenda

October 2018

Launch the website for the event at local and international levels. Promoting the Symposium among the APEC economies and potential stakeholders. Send invitations, confirm participation, and organize, organize material for the Symposium, organize the arrival of speakers and special guest, coordination of participation of Peruvian government officials.

Website available

December 2018

DAY 1: Symposium
The role of banking cooperatives, and saving and credit cooperatives to widen options on financing for MSMEs. And the best practices and lessons learned by financing MSMEs, business leaded by women and young entrepreneurs in APEC region.

Symposium and workshop

DAY 2: Workshop
Panel Discussion governmental official, speakers, APEC members, experts, researchers and policy makers, private and public partnership: Public policies to improve the access to credit throughout the cooperative business model.

February 2019

Redaction of the drafting, endorsement and submission of the Final Report

Final Report

February 2019

Redaction of the drafting, endorsement and submission of the Completion Report and supporting documents to the Secretariat

Completion Report

March 2019

Dissemination of the Final Report and the Video

Video promotion

May 2019

Participation in the Long Term Evaluation of APEC Projects conducted by the Secretariat, as required by all the APEC funded projects

Long Term Evaluation of APEC Projects

Risks

1) The no confirmation of participants, delegates and main speakers on time. Therefore, the project overseer and the project team will have a backup plan for each item in the implementation process. Invitation letters will be circulated in advance.

2)  The speakers do not reach their presentations at least one week before the workshop. Thus, the project overseer and the project team will collect all the presentations ahead or visit the speakers, when they arrive to Lima, in order to get the presentation before the event.

3)  Absence of any speaker for some reason. The backup plan in this case is the presentation of an authority from the Ministry of Production able to talk about the topic established in the program.

Monitoring and Evaluation

1) We expect to receive around 200 participants for the Symposium (open session) and 60 participant for the Workshop (close session). At least 10 attendees will come from eligible APEC economies.

2) We will collect information from participants about the satisfaction with the workshop program, speakers and logistic through a survey created by the PO.

3) The main indicator of the symposium will be the number of cooperatives’ members that participate, this is the main indicator because the cooperatives’ members need to increase their capacity and knowledge about the cooperative business model. And for the workshop will be the financial tool suggested by the participants.

4) We collect the most important issues of each topic through an institutional video to promote this ideas in the APEC economies.

Linkages

This project is aimed to follow the recommendations of APEC Project SME 0312 – Enhancing Competitiveness of SME through the Cooperative Business Model (CBM). The dissemination of the final report of APEC Project SME 03 12, had contributed to increase the interest for the cooperative business model. The report has been downloaded more than 39,100 times from the APEC Publication website, reflecting a deep interest for the topic and mainly for strengthening relationship between MSMEs and cooperatives. Therefore, APEC is the best source to implement this new project because it will complement the information and the results obtained with the last project. 

The engaged participants will be able to save the speakers’ presentations through the website created for the Symposium and workshop. A final report containing agreements and conclusions would be elaborated and submitted to the APEC Secretariat for publication and dissemination in the APEC website.  At the same time, Ministry of Production of Peru will also publish the report in its website, in order to share the conclusions with Peruvian government officials and institutions linked with the sector.

Sustainability

The Ministry of Production of Peru through its Directorate of Cooperatives and Institutionalization will continue working to boost the cooperative business model. The results obtained from the symposium and the workshop will help to design, manage and implement programs, projects or tools to promote the MSMEs’ institutional competitiveness. The first steps obtained as a result of this project will be written in the Final Report. 

Furthermore, the most important result of this project will be the dissemination of the cooperative business model and policy makers will understand this model can be used as an innovate alternative to improve MSMEs productivity through new financial tools.

After the forum, the project overseers will collect information about stakeholders’ participation, international speakers and delegate which will be shared to APEC economies.  A large number of public and private actors are involved in the cooperative business model, and in the same way, are interested in the funding facilities for MSMEs. 

The cases and experiences presented at the symposium and workshop will include general guidelines about cooperative business models, and the items will be combined with technical issues, as well as successful study cases. Moreover, international experience from APEC economies will be shown.

Project Overseers

Heber Fundes – Director, Directorate of Cooperatives and Institutionalization. He has an International Business Administration Degree at the National University of San Marcos, specialized in business associativity; cooperatives development and commercial articulation. He has 13 years of experience working with the public, private sector and international technical cooperation. He has formulated, managed and developed projects with public, private and international funds. He has formulated strategic alliances between cooperatives, private companies, financial institutions and the government.

Cinthia Yinki – Specialist, Office of Technical Cooperation and International Affairs. Global Business Management Degree at Ricardo Palma University, with a Diploma in International Cooperation for Development. She has 5 years of experience in international technical cooperation, foreign affairs and donor-funded project management.

Cost Efficiency

Not Applicable.

Drawdown Timetable

Not Applicable.

Direct Labour

The required assistant for the project is needed for logistics support, previous duties and post event activities. Must be bilingual (English). This assistant will be financed by APEC. The PO will provide the Terms of Reference/Scope of Services, hourly rate and number of hours/days expected to complete the job for the approval of the Program Director prior to entering into any financial commitment with the Contractor.  In addition, PO will take into account: 

-  The process to engage the Contractor must be in line with APEC’s procurement principles;

-  The contract will be issued to one organization/person and not split into different contracts; and

-  The contract must be signed between APEC Secretariat and the contractor before commencement of work.

Waivers

An Advance Payment will be requested for one delegate from 10 (ten) eligible economies for their travel expenses and Per Diem; also, will be required for international speakers.

Are there any supporting document attached?

No 
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Version HistoryVersion History

Project No.

Project Title

Project Status

Publication (if any)

Fund Account

Sub-fund

Project Year

Project Session

APEC Funding

Co-funding Amount

Total Project Value

Sponsoring Forum

Topics

Committee

Other Fora Involved

Other Non-APEC Stakeholders Involved

Proposing Economy(ies)

Co-Sponsoring Economies

Expected Start Date

Expected Completion Date

Project Proponent Name 1

Job Title 1

Organization 1

Postal Address 1

Telephone 1

Fax 1

Email 1

Project Proponent Name 2

Job Title 2

Organization 2

Postal Address 2

Telephone 2

Fax 2

Email 2

Declaration

Project Summary

Relevance

Objectives

Alignment

TILF/ASF Justification

Beneficiaries and Outputs

Dissemination

Gender

Work Plan

Risks

Monitoring and Evaluation

Linkages

Sustainability

Project Overseers

Cost Efficiency

Drawdown Timetable

Direct Labour

Waivers

Are there any supporting document attached?

hdFldAdmin

Project Number

Previous Fora

Secretariat Comments

Reprogramming Notes

Consolidated QAF

Endorsement By Fora

PD Sign Off

Batch

Forum Priority

Committee Ranking Category

Committee Priority

PDM Priority

Priority Within Funding Category

Monitoring Report Received

Completion Report Received

PMU Field 1

PMU Field 2

PMU Field 3

On Behalf Of

Proposal Status

Originating Sub-Forum

Approval Status
Attachments
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