Business Service Provider for SME's and Cooperatives

Mennonite Economic Development Associates (MEDA) invites applications for a Business Service Provider for SME's and Cooperatives to support the Resilience and Inclusion through Investment for Sustainable Agrikultura (RIISA) initiative.

MEDA’s work is built on a foundation of Mennonite business roots and faith-based values, within the global context of the UN Sustainable Development Goals. We believe business solutions are effective interventions to address poverty. Through a market-systems approach and strategic partnerships, MEDA enables access to finance and provides business and technical expertise to build transformative agri-food market systems that create decent jobs, allowing traditionally excluded groups to become active participants in a sustainable economy. MEDA welcomes all who share our values and want to join us in our mission. To find out more about MEDA, please visit our website at www.meda.org.

Background

MEDA is an international economic development organization whose mission is to create business solutions to poverty. Founded in 1953 by a group of business professionals, MEDA partners with the poor to start or grow small and medium-sized businesses in developing regions around the world.

In the Philippines, MEDA is implementing a five-year initiative Resilience and Inclusion through Investment for Sustainable Agrikultura (RIISA). This initiative strives for more resilience and inclusive economic growth for both women and men cacao smallholder farmers (SHFs) in Mindanao focusing on the Davao Region. MEDA through RISSA project work partners such small and medium enterprises (SMEs), cooperatives, business service providers, government, and other stakeholder in the cacao sector. RIISA responds to multiple challenges in the cacao sector and draws on MEDA’s experience in market systems development, gender lens investing (GLI), gender equality and social inclusion (GESI), and environment and climate change (ECC).

To address the socio-economic challenges within the cacao sector, MEDA piloted an innovative market systems development approach. This include identifying gaps in the cacao market system; mobilizing investments that are focused on Gender, Environment, Social, and Governance (GESG) for SMEs and financial intermediaries (FIs); strengthening the capacity of local FIs and business service providers (BSPs) in areas such as GESI, Human rights (HR), and ECC ; strengthening the capacity of cacao cooperatives and smallholder farmers (SHFs) in environmentally sustainable and inclusive farming and business practices; and improving key enabling environment actors’ awareness of ESG practices in the cacao market system.

To strengthen the capacity of the RIISA partner SMEs and cooperatives, through this engagement with the selected BSPs and their technical assistance, MEDA through RIISA Project anticipate achievement of the following outcomes: i) Increased integration of gendered, environmental, social and governance (G-ESG) considerations into operations of businesses; ii) improved environmentally sustainable and inclusive business performance for SHFs and cooperatives in the cacao market system in Mindanao; and iii) Improved practice of relevant actors to promote best ESG practices in the cacao market system in the Philippines.

Scope of Work

MEDA seeks an experienced business service providers (BSPs) to develop and implement strategies that will strengthen the institutional capacity and business performance of RIISA cooperatives and SMEs in Davao region to contribute to the abovementioned target outcomes. One BSP will be selected and engaged to provide TA and non-financial support to 15 cooperatives and another BSP to cover 14 SMEs and 1 financial institution.

Key Responsibilities

• Conduct a thorough review of all data and information generated by the RIISA Project (G-ESG or E-GEM action plans of cooperatives and SMEs, Smart Incentive proposals and contracts, Financial and Admin due diligence results) as inputs and references for formulating strategies and prioritizing activities to be supported.

• Engage in discussion with RIISA team to gather further insights and information and refine intervention strategies and activities.

• Finalize the proposed strategies/methodologies for implementing the Technical Assistance (TA) and Non-financial support Plan.

• Execute the Technical Assistance (TA) strategies and plan to support 15 partner cooperatives and 14 SMEs and 1 financial institution (FI).

• Prepare and submit a progress report detailing the achievement of key milestones, such as the completion of the technical assistance provided to cooperatives and SMEs.

• Finalize and submit the final report based on the RIISA suggested reporting template upon concluding the engagement.

Deliverables

A. Inception report with the TA Intervention and Non-financial support Matrix and Work Plan

• Conduct desk review of existing data of RIISA Project
• Discuss with RIISA team to gather insights and
• Finalize the proposed strategies/methodologies. Strategies could include but not limited to outsourcing of expertise/services, facilitate building business relationship with existing service providers, coaching and mentoring, and deployment of expertise needed.
• Timeframe: 31-May-2024 (35%)

B. Progress report (for the first 7 cooperatives completed or 7 SMEs, with attendance records and photo documentation)

• Execute the Technical Assistance (TA) strategies and priority activities to support 15 cooperatives and 14 SMEs and 1 FI.
• Timeframe: 29-November-2024 (25%)

C. Progress report (for the remaining 8 cooperatives or 7 SMEs and 1 FI completed, with attendance records and photo documentation)

• Prepare and submit progress report
• Timeframe: 16-May-2025 (25%)

D. Final report (consolidated progress reports including attendance records and photo documentations) with the signed release form after the feedback survey)

• Finalize and submit the final report
• Timeframe: 30-May-2025 (15%)

Qualifications & Selection Criteria

A. Generic and Mandatory:

• Legally registered in the Philippines and been providing business services to cooperatives or other organization for at least three years. To provide a copy of the SEC or DTI registration or CDA registration, Business Permit, and BIR registration.
• Preferrably BSPs that have business presence or providing business services in Davao Region.
• Can partner with MEDA, and willing to work closely with MEDA staff.
• Committed to the development and progress of cacao cooperatives and SMEs in the Philippines.
• Committed to contribute to the development of cacao sector in Mindanao.
• Fulfill MEDA’s due diligence requirements:
  • BSP and staff are not involved in terrorist, illegal or criminal activities, including but not limited to drug, arms or sex trafficking, money laundering, violation of women’s rights and human rights.
  • BSP does not appear on the US, UK, UN, or EU lists of terrorist organizations.
• Local and financially stable organization/company. Need to provide 2-3 years audited FS.
• Has a contingency plan and mechanism in place to adapt to any health or travel restrictions.

B. Specific Expertise:

• Demonstrated expertise and experience in delivering business development services to cooperatives and SMEs in partnership with market system actors who have commercial interest to support the smallholder farmers.
• Experience in providing technical assistance to cooperatives and SMEs in achieving business growth and objectives, and meeting environmental, social, and governance considerations and standards.
• With technical knowledge on either of the following: cooperative and MSME governance; gender equality, social inclusion, and human rights; social entrepreneurship; cacao market system development; environmentally sustainable agriculture practices; improving investment readiness and business performance.
• Preference is given to the proponent that can provide technical assistance and non-financial support to cacao cooperatives, micro-small and medium and large companies on integrating environmental, social and governance (ESG) considerations into their business operations, and to financial intermediaries serving micro and small and medium enterprises (SMEs) and cooperatives.

Funding

• Funding will be discussed once an applicant is identified successful in the initial stage of assessment and selection.

Application Procedure

Interested BSPs to send application to MEDA via email at RIISA_Submissions@meda.org and cc: darceo@meda.org, with the PROPOSAL as attachment, by 5:00pm on April 19, 2024. Please indicate “BSP TA for Cooperatives or SMEs” in the subject line of your email.

Applications will be reviewed by a committee of MEDA staff. Qualified BSPs will be selected and announced by April 30, 2024. Upon selection of BSPs, MEDA will enter a contract for the engagement.

Proponent shall follow the prescribed proposal format below and submit in electronic copy with the following information.

A. Contact Information

1. Organization’s Legal Name:
2. Mailing Address:
3. Main Contact Person and Title:
4. Telephone:
5. Email address:
6. Website, if available (Facebook, twitter):
7. SEC/CDA/DTI Registration Number:

B. Proposal Outline

1. Introduction (maximum half page): provide understanding of the ToR and how your organization or company can respond to the ToR’s requirements. Proponent to add a brief explanation on their motivation to partner with MEDA.
2. Capability Statement (maximum of one page):

• Briefly describe your organization or company’s business services provided, in relation to the expertise required by this ToR, in the last three years with specific information on the beneficiaries, contracting company/organization, and results of your engagements.
• Briefly describe the financial position of the organization/company.
• Briefly discuss the organization/company’s contingency plan and mechanism in place to adapt to any travel restrictions.
• Please include the contact details (contact person, phone, and email) of at least three (3) organizations/companies/cooperatives who can speak to the capability and credibility of your organization.
• Describe the qualifications of the personnel who will possibly be involved in the engagement.

1. Proposed Methodology (maximum of one page).

• Describe how the proponent will implement the identified and agreed TA strategies in support of the action plan of target cooperatives and SMEs and ensure the deliverables in Section 3 are achieved within 1 year given any restrictions.
• Discuss the strategy to ensure participation of women, youth, and Indigenous peoples in the implementation of TA strategies and work plan.

1. Proposed Work Plan (maximum of one page). Outline the activities, timeline, expected outputs, resources and the expertise needed.
2. Estimated Cost of the Engagement (in matrix format): Itemized cost and unit, and total cost.
3. Annex:

• SEC Certificate of Incorporation or DTI Certificate of Registration or CDA Registration, 2024 Business Permit, and BIR Certificate of Registration
• Audited Financial Statement for the past two to three years.
• Resume or CV of BSP staff who will work on this engagement.
• Work sample/s of BSP and the assigned staff