A Tool for opening investment opportunities LGU BUSINESS PLAN: A Tool for opening investment opportunities Ms. Virginia S. Clavel DILG September 9, 2015 Crown Regency Resort and Convention Center Malay, Aklan www.google.com.ph

DILG PROGRAM FRAMEWORK Poverty in multiple dimensions reduced and massive quality employment created Societal Outcome Economic Development Human Development and Poverty Reduction Security, Justice and Peace Climate Change Adaptation and Mitigation Good Governance and Anti-corruption KRAs/ Sector Outcomes STRENGTHENED Business-Friendly and Competitive LGUs Environment-Protective, Climate Change Adaptive and Disaster Resilient LGUs CAPACITY State of Local Governance improved DILG Outcome Areas Socially-Protective and Safe LGUs Accountable, Transparent, Participative and Effective Local Governance INTERNAL GOVERNANCE MFO LG Capacity Development, Performance Oversight and Awards/Incentives DILG Programs/Projects/Activities (from Locally-funded and Regular funds) PPAs

Components of Business-Friendly and Competitive LGUs Enabling Environment for BFCL (AIM-BIZ) Enabling Environment for BFCL (AIM-BIZ) Enabling Environment for BFCL (AIM-BIZ)) Facilitating Access to Local Infrastructure Supporting Workforce Development Simplification of Regulatory System Capacitating LEIPO/LEDIP Team Streamlining BPLS Training for Better Access to Job Opportunities (TraBAJO) PRMF LGU Business Plan Automating BPLS (e-BPLS) SLRF Investment Code & Local Revenue Code Streamlining Building Permit/Occupancyand others Building local Information (SparkBiz) KALSADA Performance Measurement NCC & PCCI

BUSINESS-FRIENDLINESS AND COMPETITIVENESS This is a condition where LGUs spur sustainable economic and inclusive growth by engaging the business sector in promoting local trade/business and generating employment. PROGRAM OBJECTIVES Improve capacity of LGUs in engaging business sector, promoting local trade / businesses and generating employment following reforms in their business environment Enhance LGU competitiveness towards increasing sustainable growth and ensuring that growth is inclusive

Local Economic Development defined… Local Economic Development (LED) involves added micro-economic measures at the local level to complement macro-economic measures at the national level. LED encompasses a range of disciplines including physical planning, economics and marketing, all with the goal of building up the economic capacity of a local area to improve its economic future and the quality of life for all (ILO) Local Economic Development (LED) offers local government, the private sector, the civil society and the local community the opportunity to work together to improve the local economy. It aims to enhance competitiveness and thus encourage sustainable growth that is inclusive. (WB)

RATIONALE Creating LGU mindset to a business friendly and enabling environment enabled to contribute for a sustainable economic and inclusive growth Improving LGU capacity to enhance economic situation through attracting more businesses and investment to generate job and bring opportunities for livelihood

Strengthening LGU capability by engaging business or private sector in developing local economy Developing and improving LGU structure, policies, programs to boost business potential and economic growth

BUSINESS PLAN tool that LGU can use to help itself identify critical investments and business opportunities available in the locality and maximize resources in pushing forward economic activities. guide for investors to locate their investments that will increase economic opportunity and create jobs.

USES Marketing Tool: to convince investors and business to locate their ventures in the Locality Management Tool: to operationalize the local economic development strategic direction and monitor performance Communication Tool: to engage the whole LGU to rally stakeholders towards the achievement of their shared aspiration and elicit support from investors, partners, creditors and shareholders for local economic development

NATIONAL POLICIES SUPPORTING THE FORMULATION OF LGU BUSINESS PLAN

ORGANIZING FOR LGU BUSINESS PLANNING Identify stakeholders that will be represented in the LEDIP Business Planning Team. LGU Focal Person = LEIPO Stakeholders Build awareness and commitment. Legitimize a LEDIP Business Planning Team through an Executive Order and/or Resolution. The LEDIP Business Planning Team should agree on and commit to the business planning processes, group culture, key activities, timelines and key milestones for the full completion of a business plan for the LGU. Identify and address capacity building requirements of the Team.

IMPORTANCE/CONTRIBUTION of ENABLING plans and policies in the formulation of business plan

SPACE FOR MAKING A LIVING CLUP AND DRRM PLAN PROTECTED AREAS NIPAS, Non-NIPAS, Protected Agricultural, Environmentally Constrained, heritage sites LIFE SUPPORT SYSTEM SETTLEMENT AREAS Urban (Town Centers) Rural (Upland, lowland, coastal) IP settlements SPACE FOR LIVING INFRASTRUCTURE AREAS Transport Network Social & economic infrastructures Administrative support EXCHANGE SPACE PRODUCTION AREAS Agricultural (Croplands, Livestock, Poultry, Fishery) Industrial & Commercial Tourism Mining SPACE FOR MAKING A LIVING

COMPREHENSIVE DEVELOPMENT PLAN

Power to create source of revenue Incentives in the form of fiscal or non fiscal measures Regulatory role on tourism concerns Fastest delivery of business permit and license to operate

SPARK Steps SCAN: Assessment of the readiness for investment and job creation and organization of the LED Team PLAN: Preparation of the LGU Business Plan for investment and job creation ACT: Implementation of the LGU Business Plan REVIEW: Assessment and reporting of outcomes of the LGU Business Plan to the stakeholders KNOW: Managing the results of the Business Plan

BUSINESS MODEL CANVAS 1. SCAN 5. KNOW 2. PLAN 4. REVIEW 3. ACT In the figure above the nine elements are numbered according to the SPARK steps where data, information, activities and tools are mostly from in developing ideas and content therein and where their data and information will be most relevant too. The elements are also presented in two distinct colors to establish where each element leads to and converge. Notably, elements in gold builds up from the identification of client/beneficiary segment and LGU offering and eventually sum up to the benefit that LGU will derive from the clients/beneficiaries buy-in of the offering. Those in lilac color are the cost centers from which budget can be based on to support the realization of the LGU offering. 4. REVIEW 3. ACT BUSINESS MODEL CANVAS

P-1: LGU Business Plan Template Requirements Description / Details LGU Name: City / Province / Municipality Contacts Name LCE and LEIPO Position Email Phone Local Economy and LGU Business-Friendliness Profile Describe the • Economic Profile • Key Economic Sectors • LGU Business-friendliness Profile Show results of • Problem Tree Analysis • Objective Tree Analysis • SWOT Analysis Vision and Mission Describe the LED vision and mission formulated from the LGU plans and aligned with the business plan Project Description Value Proposition: Describe the LGU programs or projects to address the needs and problem of the target clients P-2: LGU Business Plan Template Sample format of a Business Plan derived form P-2 (Business Model Generation Framework). The LGU may revise this outline according to their needs and offerings to investors.

P-2: LGU Business Plan Template Requirements Description / Details Key Results List the key benefits that the LGU will derive from implementing or delivering the project Target Clients / Beneficiaries Describe your target clients and beneficiaries Delivery Methods Describe: a) how you plan to reach your clients, and b) how do you plan to communicate with your clients and beneficiaries Key Activities Describe the key action activities that LGU must do for their clients, could be in terms of work breakdown structure and implementation work plan Key Partners List the key partners to perform the activities or provide the resources Describe how you plan to establish and manage the relationships between clients and your projects Budget / Sources Describe the cost needed to perform the activities and provide the resources Monitoring and Evaluation Present the monitoring and evaluation framework and systems of tracking and communicating the results P-2: LGU Business Plan Template Sample format of a Business Plan derived form P-2 (Business Model Generation Framework). The LGU may revise this outline according to their needs and offerings to investors.

IMPACT OF LGU BUSINESS PLAN TO LGUs….....

Maximize the use of resources Promote the natural beauty or products of the locality/tourist destination areas Increase number of investors/private sectors in the locality

open the gate for employment opportunities Create new development through establishment of small, medium or large enterprises Increase tax collection through presence of more businesses build in the locality open the gate for employment opportunities

More programs and projects development in the community through collaboration with private/business sector Sufficient provision of basic services to the community Create a happy community; a “happy Juan and Juana”

WHAT WE can DO.....

….AS LGU POLICY MAKERS ON THE FORMULATION OF BUSINESS PLAN Adopt measures that can create a business friendly and competitive LGUs such as designating a permanent LEIPO, creation of LEDIP team and investment board, adopting e-BPLS automation, establishment of one-stop-shop and others Approve enabling policies that will strengthen the business economic opportunities in the locality such as Local Investment and Incentive Code (LIIC), Local Revenue Code (LRC), Local Tourism Code (LTC), Environmental Code and others Ensure that there is an approved CDP, CLUP and DRRMP

ROLEs OF LGU POLICY MAKERS ON THE FORMULATION OF BUSINESS PLAN Enact policies or regulations on the formulation and implementation of business plan and related laws Approved funds for conduct of activities on the implementation of LGU Business Plan Assist the LEIPO in searching any business economic opportunities for the locality. Attend forum/meetings related to investment promotion/opportunities

LGU PARTICIPANTS ON THE TRAINING ON THE FORMULATION OF BUSINESS PLAN SB on Economic Affairs or related Committee LEIPO/Investment Officer LPDC Business Permit and Licensing Officer Tourism Officer Agriculture Officer Private Sector