Business Development Services Unit

1. Business Development Services Unit Joint Initiative of the Ministry of Labour, Commerce & Industry (MLCI) & Tonga Chamber of Commerce

2. Chamber BDS Unit • Outline of Proposal: • Utilise the BDS to provide incubator type services targeting MSMEs. • Why is it the best proposal: • BDS already exists & broadly has the same goals as business incubators . • Joint initiative of government and the private sector (PS). • Utilise expertise of PS and work in collaboration with government. • Aimed at growing MSME at villages & outer islands. • Use ICT as a primary tool to train, operate businesses, disseminate & research information, verify business opportunities, etc for clients and stakeholders.

3. Key Activities of BDS Unit • Act as an information conduit, and facilitator, between businesses – new and existing – and BDS suppliers, including banks, schools, government agencies, and NGOs. • Maintain and update a database of BDS suppliers, government resources, and funding sources. • Support a BDS website to provide relevant news and information to Tongan businesses. • Consolidate & update disjoint information required to start-up and run a business in Tonga. • Provide basic BDS, to micro-entrepreneurs and start-up businesses. • Demonstrate ICT application as essential everyday business and personal development tools. • Hold informal business awareness/training meetings in villages and outer islands groups. Meetings will be grassroot-level talanoa meetings, versus formal organized workshops. BDS unit will utilize Peace Corps, other NGO volunteers and Village Youth Reps living in villages, and outer islands to eventually extend these meetings throughout Tonga. Successful clients used as examples. • Research, identify and apply for external funding for training workshops, funding facilities, and other business development activities, events, and projects. • Participate in government & NGO workgroups and other activities to promote and facilitate business development.

4. What needs will it address, target: • Train young interns to provide relevant BDS at the village & outer islands. • Retain & maintain young interns: How? Organisation structure is designed for ongoing training of interns and poaching of experienced interns by larger organisations. Have a experienced business background Peace Corp as Director to train young Tongans graduating with business related diplomas. • BDS model will provide basic BDS to support micro-enterprise and small business development in Tonga. • Supply trained & experienced BDS staff for employment in larger businesses. • Grow existing MSME to operate at next higher level. • Increase new businesses and employment, at grass root levels. • Likely Clients: • Micro-enterprise and small business from the villages or outer islands of Tonga. • Initial target clients - proven & existing MSME eg handicraft producers. • May not be computer literate & do not have personal access to ICT. • Budding entrepreneurs.

5. Interaction with existing development programmes: • Will utilise the work of other partners – to minimise replication & cost. • Develop a mentoring programme using Chamber members. • Use of ICT to monitor & adapt international best practice. • Leverage ideas & knowledge from other domestic programmes & partners. • Initial partner listing: · Langafonua Association · Tonga National Youth Congress (TNYC) · Outer Islands & Village Development Councils · TONGO · Tonga Development Bank (TDB) · Australian Youth Ambassadors · Japan International Cooperation Agency (JICA) · Ministry of Training, Employment, Youth and Sports (MoTEYS) · Asian Development Bank (ADB) · World Bank (WB) · European Commonwealth (EU) · Commonwealth Secretariat (CS) · Pacific Islands Forum Secretariat (PIFS) · Asia and Pacific Incubator networks

6. Governance & Administration: • Day to day running of BDS supervised by the BDS Supervisory Board, which comprise of the Deputy Secretary for Industries (MLCI), the Vice President (TCCI); and the Program Manager for Business Education & Development (Peace Corps Tonga); or their appointed representatives. • The Supervisory Board will meet on a monthly, or bi-monthly, basis, as is deemed necessary and productive. The members of the Supervisory Board should be readily available to the Project Director, outside of the meetings, to provide direction, consultation, and advice. • A BDS Advisory Committee will be established to act as a discussion/networking mechanism for parties involved in, or having an interest in, or which are able to contribute to BDS activities in Tonga. The Advisory Committee will primarily communicate via email, on topics of interest raised by the Project Director and the Supervisory Board. Selected members of the Advisory Committee may be solicited to participate in or assist with BDS activities. A quarterly or semi-annual meeting of the Advisory Committee members may be held, if feasible and desirable. • MLCI will establish a bank account for the BDS unit. The account needs two (2) signatures – a designated MLCI officer and the Project Director - to authorize a payment or withdrawal. A petty cash box, containing no more than TOP$100 at any given time, will be maintained by the Project Director to pay for small incidental items, such as stationary goods.