SME Challenge Fund Scaling Support

Original lot title

10012159-Scaling for Impact - SME Challenge Fund

Original TED description

The contractor is responsible for providing the following work packages and for achieving the corresponding milestones. The overall Objective is the strengthen gender-equitable and climate-resilient economic development in Nepal. Work package 1: Design and Launch of the Challenge Fund The objective of Work Package 1 is to identify high-potential SMEs to scale agricultural products and services (based on the themes outlined below) through a competitive process. Under this work package, the contractor will design and launch a competitive SME Challenge Fund to select promising SMEs across Nepal. This work package includes the establishment of a clear eligibility and evaluation criteria, the setting up a robust application management system, and the promotion of the Call in both English and Nepali languages to reach SMEs in different provinces and relevant sectors. This will result in a well-documented selection process and shortlist of enterprises to join the bootcamps (WP2). Work package 2: Bootcamps and assessment of the shortlisted SMEs The objective of Work Package 2 is to strengthen the communication and pitching skills of the 100 shortlisted SMEs through provincial bootcamps. The bootcamps also serve as first point of contact with the shortlisted SMEs to understand what their needs, interests and capacity gaps are. SMEs can develop their business and pitching skills to articulate their business value, explain the market opportunity and their business model better, and outline their contribution to climate resilience and women economic empowerment. Each SME will have a chance to pitch to an expert panel at the end of the bootcamp. The panel will select the top 40 SMEs by the end of the bootcamp. Work package 3: Pitching Competition and contracting of SMEs The objective of Work Package 3 is to organise a pitching event for the 40 selected SMEs. The SMEs will have a chance to present their business plans to scale access to products and services to an expert jury. The jury will evaluate the pitches on a competitive basis and select the strongest proposals. Subject to a due diligence process, the top 25 SMEs will be eligible to access milestone-based disbursements through subcontracts of work to support the development and scaling of their businesses, along with customized business development and investment readiness support. The contractor is expected to organise a national-level pitching competition, whereby an expert jury selects 25 SMEs that will have the chance to access milestone-based disbursements through contracts of work and technical assistance. Work package 4: Business Development Services for the selected SMEs The objective of Work Package 4 is to provide tailored business development services, networking opportunities and guidance to the 25 selected SMEs over an 18-month period. The aim is to support the SMEs in reaching their scaling goals and growth as outlined in the contracts of work, and to ensure the smooth implementation of their plans. Moreover, the contractor is expected to design and organise networking and learning events for the SMEs to exchange experiences and lessons learned among themselves, and to engage with external experts, particularly on topics related to climate resilience and women"s and youth economic empowerment. Business Development Services refers to a range of services that aim to improve the performance, competitiveness, and growth potential of businesses, especially small and medium-sized enterprises (SMEs). BDS can include 1) business advisory, including strategic planning, business model reviews, legal and regulatory compliance, financial management advice, HR policy development, use of ICT and communication tools, peer networks; 2) access to finance, such as investment readiness support, pitching, and linkages with financial institutions; 3) market access, including market research and information, branding and marketing, participation in trade fairs, 4) supply chain management, like finding suppliers and assuring quality, 5) training, coaching and mentoring, for instance, on leadership or public speaking skills. Ultimately, the aim is to support SMEs to grow and expand their customer base, increasing access to agricultural products and services that enable customers to adapt to climate change and increase income and job opportunities, particularly for women and youth. Work package 5: Monitoring, evaluation, communication and knowledge management The objective of Work Package 5 is to establish and implement a robust Monitoring, Evaluation, Communication, and Knowledge Management system to track results and impacts from the assignment. The Monitoring and Evaluation system shall be two-fold. First, the contractor shall ensure timely monitoring, verification, and reporting on the achievement of milestones agreed under the milestone-based contracts of work. Second, the contractor shall design and implement a system to track and report on outcome and impact indicators, including climate adaptation, income increases, job creation, scalability of solutions and improvements in revenue and business competitiveness. Timelines for monitoring, verification, and reporting activities shall be agreed in close coordination with GIZ and aligned with GIZ"s reporting requirements and operational needs.