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Terms of Reference for Consultant to Design Business Incubation Centers for Enterprise Promotion in Pakistan(Support to Government of Pakistan ‘Kamyab Jawan’ Programme)

Background

In order to uplift the youth of the country by offering opportunities to utilize their entrepreneurial potential to the fullest, the Government of Pakistan has initiated a flagship programme titled “Kamyab Jawan” comprising various interventions. The Kamyab Jawan was born out of the realization that, while the youth of Pakistan currently makes up approximately 65% of the population of the country, it is critically under-represented at the national level. To this end the National Youth Development Framework was drafted, focusing on education, engagement and employment. Six thematic areas were identified and projects were created in all of these, under the umbrella of the Kamyab Jawan Program. This program is overseen directly by the Prime Minister’s office, while implementation takes place through various relevant ministries, organizations, associations and development sector stakeholders. These six initiatives are:

• The Youth Entrepreneurship Scheme (YES)
• Hunarmand Pakistan (Skills for All)
• Startup Pakistan under Kamyab Jawan
• Green Youth Movement
• National Internship Program
• Jawan Markaz

Business Incubation Centers (BIC)

A business incubator is a company that helps new and startup companies to develop by providing services such as management training or office space. Business incubators are catalyst tool for either regional or national economic development and fall in five categories: academic institutions; non-profit development corporations; for-profit property development ventures; venture capital firms, and combination of the above.

Business Incubation Centers in Pakistan

In Pakistan, the Higher Education Commission (HEC) supported the establishment of Business Incubation Centre's (BIC) in public sector universities to provide basic infrastructure and allied facilities for researchers and young entrepreneurs who are interested in developing early-stage business ventures. A business incubator's main goal is to produce successful firms that will leave the program financially viable and freestanding. Graduates of these business incubator programme create jobs, revitalize neighborhoods, commercialize new technologies, and strengthen local and national economies. ILO collaborated with HEC in this initiative and imparted ‘Start & Improve Your Business (SIYB)’ training to the managers of BICs from ten (10) public sector universities. These BICs further supported more than 6,000 university graduates and other potential business aspirants in starting-up their businesses.

For IT-related businesses, there are a number of business incubators including Plan-9 (by Government of Punjab), Microsoft Innovation Centre (software-related start-ups), Technology Incubation Centre – NUST.

Designing Business Incubation Centers under Kamyab Jawan Programme

Under ‘Kamyab Jawan Programme’ the Government of Pakistan is considering to establish fifty (50) new Business Incubation Centers (BIC) to promote entrepreneurship in country. For this purpose, under its ‘Hunarmand Pakistan (Skilled Pakistan)’ component, reasonable funding is allocated to NAVTTC for establishing BICs.

Before establishing new BICs, the Government of Pakistan would like to have a careful analysis of the previous experiences of BICs and to design new BICs on lessons learnt from the previous experiences. In addition, Government is also keen to look at the existing enabling environment for new start-ups (legislations, regulations, ease-of-doing-business, etc) and to align BICs’ scope of work to better advise new start-ups for successful business ventures. For this purpose, Government of Pakistan has requested ILO for technical support in designing BICs in Pakistan.

Strategic linkages

This study contributes to the Pakistan Decent Work Country Programme 2016-2020 (extended to 2022), Priority Area 2: “Promoting jobs creation for youth and vulnerable groups”, with international Labour Standards being a cross-cutting theme.

Globally, this work contributes to Outcome 4 “Sustainable enterprises as generators of employment and promoters of innovation and decent work” as envisaged in the ILO Programme and Budget for 2020–21. It also contributes to Outcome-3 on “Economic, social and environmental transitions for full, productive and freely chosen employment and decent work for all”.

In turn, the work would contribute to UN Strategic Development Framework 2018-2022 (Pakistan), Outcome-2 on “Decent Work’ and SDG 8 “Decent Work and Economic Growth”

This activity will also strengthen ILO’s ongoing support to the Government of Pakistan on designing and implementing ‘Livelihoods Protection and Youth Employment in response to COVID-19” and spearheaded by the Planning Commission of Pakistan and proposed support to returning-migrant workers thru Ministry of Overseas Pakistanis & HRD.

Scope of Work for Consultant

ILO intends to engage a Technical Consultant to Design Business Incubation Centers (BIC) by reviewing existing legislations, regulations and institutional infrastructure for new business start-ups and after getting inputs all important stakeholders – to better support new start-ups in their business ventures.

The Consultant will be required to have a detailed review of existing legislations related to business start-ups, regulations, taxation regime, ease-of-doing-business, and existing BICs at various institutions (Universities, Chambers of Commerce & Industries, etc) to draw good practices and lessons learnt. The Consultant will also consult tripartite partners (particularly existing businesses and new business start-ups); existing institutions, and other stakeholders (e.g., Academia, Civil Society Organizations, etc) and identify key areas to be improved. The Technical Consultant will be required to study/examine following important measures which could be taken in to consideration while designing new BICs:

• Review literature to identify success factors of a successful BIC initiatives in Pakistan and in other countries;
• Review existing laws, policies and regulations related to new business start-ups and existing programmes to support business start-ups – to assess ease-of-doing business in Pakistan and to identify areas of support of new start-ups;
• Meeting with key stakeholders to seek their inputs about existing BIC initiatives, good practices and lessons learnt;
• Discuss with employers and workers – particularly existing entrepreneurs and new start-ups – to assess current level ease-of-doing-business and identify areas to be improved for new start-ups;
• Discuss with academia and civil society organizations – particularly the ones working on the subject of Entrepreneurship development / new business start-ups – to identify areas to be improved for promoting entrepreneurship in Pakistan;
• Design BICs to effectively address all challenges for new start-ups – i.e., by providing effective guidance, mentorship and advice to design, implement and sustain their business start-ups;
• Develop an effective Business Model for BICs to ensure its sustainability;
• Identify possible partnerships with private sector, academia and other institutions to multiply benefits of BICs and set-up more BICs through collaborative efforts;

Terms of Reference for Technical Consultant

The Consultant will be required to undertake following assignments:

Review Business enabling environment in Pakistan

• Review existing legislations, policies, regulations and other institutional factors contributing towards ease-of-doing-business;
• Identify areas where new business start-ups require support in shape of counselling, mentorship and advice.

Literature Review / Physical Observation

• Review existing BICs/ORICs in universities and other institutions – to determine their success factors and lessons learnt;
• Review existing BIC models in other countries and identify their success elements
• Review relevant literature to identify value-addition in BICs

Meetings with stakeholders

• Develop key questions regarding scope of work, menu of services, effectiveness, and sustainability of BICs/ORICs
• Identify key stakeholders for information collection and getting first-hand knowledge about these institutions
• Meeting with stakeholders (individually or in groups) to get their feedback and get data

Analysis and Design of BIC

• Analyse information received from literature review and data-collection and identify core functions for BICs and core elements of success for effective service delivery
• Develop blue-print of BIC services model to ensure effective services delivery to new entrepreneurs in starting-up their new business initiatives
• Develop a management system to ensure transparent and objective performance management of BICs and to support its operations
• Develop a criteria for selection of geographic locations to establish BICs and criteria for beneficiaries to be supported;

Business model for BIC

• Identify core services of BICs and possibility of charging fees from the beneficiaries for some services. Develop a skeletal financial management system for BICs to meet its needs.
• Develop a ‘Business Model’ to ensure financial sustainability of BICs after first 3 years of support from Government

Partnerships and collaboration

• Prepare guidelines for BICs to establish partnership with different institutions for multiplication of benefits;
• Prepare guidelines for Kamyab Jawan Programme to collaborate with different institutions to replicate BICs in other areas through resource-sharing and other means;

Sharing and feedback from stakeholders

• Convene a meeting of all relevant stakeholders (either physical or virtual) to present BIC model including success-factors, lessons learnt from past, design of BIC, service menu, and business model.
• Include feedback from stakeholders in the BIC Design

Finalizing BIC Designing and submission

• Share draft BIC Design and Business model with Government of Pakistan and ILO (Technical Unit on Entrepreneurship), for review and inputs
• Finalize BIC Design and business model in line with inputs provided by Government and ILO

The Consultant is required to provide number of workdays for completing this assignment.

Deliverables

Consultant will be required to deliver the following (see Annex-1):

1. After literature review, share draft Literature Review and Plan for Stakeholders Consultations’ for technical review and inputs by ILO and Kamyab Jawan Secretariat;

2. After completing stakeholders consultations, share draft ‘BIC Design’ for technical review and inputs by ILO and Kamyab Jawan Programme;

3. Provide a final BIC Design Report after incorporating all inputs by stakeholders, Kamyab Jawan Programme and ILO.

Responsibility Framework

1. Consultant will be responsible to:

a. Bring/procure required technical expertise for all elements of the study;

b. Identify most relevant and recent literature and tools related to the subject;

c. Develop mechanisms to effectively consult relevant stakeholders and get adequate benefits in a respondent-friendly manner;

d. In view of travel restrictions and other SOPs due to COVID-19 pandemic, make sure to use appropriate technologies and means of communication that suits the requirements of relevant stakeholders;

e. Make a presentation on proposed BIC Design for validation workshop;

f. Ensure timely submission of deliverables;

g. Ensure full compliance with ILO and stakeholder inputs in the Final Report;

h. Share all important legislations, regulations, documents and information obtained during consultancy assignment, which are not available online, with ILO;

i. Take all necessary measures to complete the assignment within given resources and timeframe;

2. ILO will be responsible for;

a. Prepare a contract for the Consultant and making necessary payments on different intervals – based on deliverables;

b. Provide an introductory letter to Consultant – which will help him/her to introduce to relevant stakeholders;

c. Provide contact details of various relevant stakeholders;

d. Where possible, extend support in facilitating meetings with relevant stakeholders;

e. Provide technical inputs on outline, and draft BIC Design within a reasonable time;

f. ILO will manage the ‘Validation Workshop’. If, due to COVID-19 lockdown situation, the workshop has to be online, ILO will provide IT platform for meeting. In case of face-to-face meeting, ILO will manage the entire event including content, venue, and logistics etc.

Special Provisions

• COVID-19: Consultant will be required to fully comply with applicable UN and Government regulations and SOPs for prevention against spread of COVID-19 and organize work in such a way to ensure safety of self and other stakeholders.

• Security: As per new UN regulations, if the assignment includes traveling to any city other than Islamabad, Lahore or Karachi, the Consultant will have to complete a special Security Training Course (SSAFE) preferably before starting the assignment. ILO will facilitate enrollment of Consultant to the course (and will pay for the course) – but these training days will not be paid by ILO.

• Reporting: Consultant will be required to report only to ILO. All materials produced by Consultant will be reviewed by ILO for technical quality assurance and will be shared with Government as ILO product.

Required Qualification and Experience

The Consultant should have the following qualification and experience:

1. Post-graduation in Business Education, social sciences or subjects related to Labour Laws, or Entrepreneurship, etc;

2. Minimum 10 year experience of dealing with matters related to Business and Entrepreneurship - either in Pakistan or abroad;

3. Must be well aware of institutional and organizational situations of business support organizations and business start-up issues, legislation and regulation, and institutional system in Pakistan;

4. Previous work experience with UN System in general and with ILO in particular, will be added advantage;

5. Strong competence to use computer and office-related software;

How to submit:

Interested individuals are requested to submit the Expressions of Interest, along with following supporting documents (duly dated and signed) through email to: islamabad@ilo.org, cc: shahnila@ilo.org by Friday, 18 December 2020 with the reference ISB/ILO/2020/002 in the email subject line:

• Provide CV or profile of the individual
• Provide brief methodology to carry out the assignment (not more than 1 page);
• Number of workdays required to complete this assignment
• Fee per day (in PKR) – exclusive of all taxes and other expenses

Any offer received after the official closing time and date will not be accepted.

Questions and replies:

Should you have any questions, please contact us at the latest by date only by email (islamabad@ilo.org; cc shahnila@ilo.org) quoting the RFQ reference.