Forest Connect: Supporting Small and Medium Forest Enterprises (toolkit)

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Activity Type: 
Activities Related to Financing SFM

CHALLENGE

 

Small and medium forest enterprises (SMFEs) are the norm in most developing countries. They often represent 80-90% of all forest enterprises and more than 50% of formal forest jobs -- plus many more of an informal and seasonal nature. They accrue wealth locally, empower local entrepreneurship, strengthen social networks and engender local social and environmental accountability.

But in least developed countries, structures that connect with and support SMFEs and their associations are weak. They face problems such as excessive bureaucracy, unstable policies or regulations biased toward large-scale operators, insecure tenure, inaccessible credit, poor market information, inadequate technology and advice, poor infrastructure, insufficient business know-how, etc. All too frequently, the result is social breakdown, economic failure and degradation of the forest resource on which SMFEs are based. 

APPROACH

With PROFOR financing, IIED, FAO and other partners developed an approach to help increase the social, economic and environmental sustainability of SMFEs and their associations by connecting them:

  • to emerging markets - by strengthening associations and enhancing market links;
  • to service providers – by strengthening information about, and markets for, financial service and business development service providers – based around sustainable practices; and,
  • to national forest programme (nfp) processes – by empowering them to shape policy processes that control the broader business environment.

The backbone of the "Forest Connect" project is based on ongoing work to support small forest enterprises in 6 partner countries (Burkina Faso, Ghana, Guatemala, Guyana, Mozambique and Nepal) plus linked work through separate PROFOR projects in India (through CEFI) and Central America (through the Rainforest Alliance)

In addition, IIED and FAO separately support Forest Connect partners in China, Ethiopia, Lao PDR and Mali.

A second phase of the project, launched in 2010, aims to test and enrich guidance modules for the facilitation of small and medium forest enterprises in Burkina Faso, Ghana, Guatemala, Guyana, Mozambique and Nepal. In-country activities will strengthen awareness and ownership of the toolkit and increase national capacity to make discerning investments in the SFME sector. 

RESULTS

An international networking website has been launched with material on small forest enterprise support, and has so far more than 400 members from 48 countries (http://forestconnect.ning.com). Bimonthly email newsletters from this website have helped to encourage feedback on a range of issues – including the most appropriate training materials for supporters of small forest enterprises.

An international workshop held in Edinburgh in July 2008  brought together Forest Connect members from 12 countries with a range of expert resource persons to begin to develop a demand-driven toolkit framework (see the workshop report here).

The second phase of this activity -- testing and enriching the toolkit-- will take place in 2010-2011.

Results will be shared on this page when they become available. You can also follow us on twitter (www.twitter.com/forestideas) or subscribe to our mailing list for regular updates.

Last updated 06/17/2010