1. 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

2. 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

3. 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

4. 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

5. 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)

7. 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

8. 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

9. 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.

10. 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

11. NATIONAL POLICIES SUPPORTING THE FORMULATION OF LGU BUSINESS PLAN

12. 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.

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

14. 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

15. COMPREHENSIVE DEVELOPMENT PLAN

16. 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

17. 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

18. 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

19. P-1: LGU Business Plan Template
Requirements
Description / Details
LGU Name: City / Province / Municipality
Contacts
Name LCE and LEIPO
Position
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.

20. 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.

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

22. 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

23. 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

24. 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”

25. WHAT WE can DO.....

26. ….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

27. 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

28. 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