Presentation on community-based business models, drawing on the experience of INBAR projects and activities. Presented by Oliver Frith, INBAR Global Programme Director, at a meeting on small and medium-sized bamboo enterprises.

1. Promoting Community-based Business
Models: INBAR Case studies
Dr. I.V. Ramunaja Rao & Oliver Frith, INBAR

2. A
C
B|
INTRO:
Bamboos’ potential
|
EXAMPLES
Product innovations
|
Model
How to deliver SME Development

3. The Green School
Bali, Indonesia
• Over 1250 species, 100 commercial
• Easier to cultivate than trees for
smallholders
• Can be cut & transported by one person
• Easier to process than trees – splits linearly
• Significant income addition to farm income
• International trade approx. US$2 billion
• Domestic markets much larger – China
US$20 billion
• Innovation and global market potential
exceptionally large
Bamboo

4. Global Distribution of Bamboo

5. Bamboo approx. 0.01% wood market
Alternative to Timber

6. Major Potential Markets
• Wood-products
• Energy
• Construction
• Institutional
• Local
• Subsistence

7. • INBAR has a network of field based
Action Research Sites (ARS) across
Asia, Africa and Latin America
• Used for research, awareness
raising, demonstration, capacity
building, and development of
scalable and replicable models
• If you do not have one, invest in
one! Seeing is Believing
Action Research for SME Development

8. • Policy change in the Philippines–
25% school desks procured bamboo
• 1.16 million bamboo desks and
armchairs per year market
• 5 year effort – to change policy
• Technology developed at INBAR ARS
in Abra
Product Innovation –School Desk

9. • Choose the right product
• Volume not value often important
• INBAR ARS in rural Tripura helped to create 150,000 new jobs
with higher value addition
• Mainly women, who are now engaged in incense stick rolling,
branding and marketing
SME Examples– Incense sticks

12. Public private partnerships/Alianzas público privadas
Product Innovation – Pichincha, Ecuador

13. Product Innovation – Construction
• 2,000 people now employed in construction value chains in
Northern Peru and coastal Ecuador
• Improved, earthquake/flood-resistant housing helping to
transform cities

14. Ownership
Current: 100% CIBART NGO
Future (indicative):
30% CIBART
30% Women
30% Professionals
10% Technical support
Cash benefit (US$)
biomass : power
1 day: 12 : 80
1 month: 360 : 2400
1 year: 4380 : 29200
Charcoal produced:
5%: $ 4,380
25%: $ 21,900
Unit cost: $ 21,942
Broad usage of power
(indicative)
0500-0900: HH power
0900-1700: Enterprises
1700-2100: HH power
2100-0500: Water pumping
Other benefits
• Value added production
from enterprises e.g. HHC,
flour-mill, etc.
• Quality of life – power to
160-320 HH (8h basis)
• Water supply – farms,
homes
Product Innovation – Biomass gasification

15. 0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
10 20 30 40
Yield in tons/ha
UD$/day
Biomass rate $16.67/ton
Biomass rate $25.00/ton
Biomass rate $33.33/ton
Biomass rate $41.67/ton
Domestic power rate ($0.08/kWh)
Charcoal at $333/ton
Industrial power rate ($0.14/kWh)
Not difficult to earn above poverty line from agri-residues & growing bamboo on
uncultivated land
Biomass gasification – India Scenario

16. Community-Professional Partnership
Model
community social private
enterprises
communities
(mostly rural)
professionals
(mostly urban)
100% 0%
100%0%
proportionalpartnership
increasingtechnology,
productioncomplexity&value-

17. public social private
institutions enterprises enterprises
SOCIAL INTRAPRENUERS
public people working in the social-to-private
domain
SOCIAL EXTRAPRENUERS
private people working in the social-to-
public domain
PublicInstitutions
PrivateEnterprises
Social Enterprises
Public-to-Private Enterprise Gradient

18. • ARS sites started with seed money as grants, sometime as low
as US$10,000
• Tripura ARS Company TRIBAC – started with revenue US$15K
in 2005 – reached US$271K in 2009 – 60% sales
• NATIVE KONBAC company with initial capitalization of
US$250K– linked to ARS and NGO in Konkan, India –
confirmed sale orders now over US$500K
From Grants to Sales/Credit

19. • Huge Potential for innovation with bamboo
• INBAR has developed a set of ARS that have validated SME
models
• Consists of providing institutional linkages between
communities, civil society, private sector and government
• Critical to engage the entire value chain
• Move away from subsistence and grant-based approaches to
markets
Summary

20. Contents
Thank You! ¡Gracias!
For more Information/Encuentre más información en:
www.inbar.int
Mr. Alvaro Cabrera - acabrera@inbar.int
Regional Coordinator for Latin America and the Caribbean
Mr. Oliver Frith - obfrith@inbar.int
Acting Director of Global Programme
INBAR Contacts/Contactos
Dr. I.V. Ramanuja Rao - rrao@inbar.int
Senior Advisor