MITOS Tool 6 Idea Generation for Investment Opportunities

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1 MITOS Tool 6 Idea Generation for Investment Opportunities Published by:

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3 MITOS Tool 6 Idea Generation for Investment Opportunities Think differently invest successfully 1 Tool: Idea generation for investment opportunities enhances the creativity of participants to find the best-suitable business ideas for their special context as migrants. The goal is to foster entrepreneurial competencies and use remittances for productive investments. 2 Objectives: This tool will enable migrants and their families to: Identify promising opportunities to invest remittances and savings Learn how to select a suitable idea, taking into account the comparative advantages of the migrants situation (e.g. specific know-how, access to market technology) and special preferences of the migrant as business partner Include risk analysis into their decision process, referring to aspects as: stability of partnership projects, possible irregularity of remittances Familiarize with the business environment and assess their competencies Have better access to banks and other support service institutions 3 Target group: Migrants Family members, existing and potential business partners of migrants Participants in the awareness raising workshop and cash flow management training Ideally, the programme can be offered in a season during which migrants usually tend to visit their CoO. 4 Problems and potentials of migrants addressed by this tool: A considerable percentage of the population of many developing countries works abroad while their families stay in the CoO and receive financial assistance by the migrants (remittances). In general, remittances are used to cover day-to-day household expenses, constructing houses or for instance for buying household equipment. Even after many years, families often depend on constant remittances inflow because of not having used the cash for income-generating investments. It has been proposed through the MITOS Tool 05: Cash Flow Management to raise awareness among the target groups about the need and importance of savings and to utilize remittances for income-generating activity in order to ensure their sustainability. Some migrants are interested in using their savings or special know-how for investments in the CoO. In most cases this is closely related to the family, but it can involve other business partners in the origin country as well. The migrant does not necessarily wish to get personally involved in the day-to-day management of such an investment. Very often, migrants have lost close contact with the market situation in the CoO or are very much exposed to their context in the CoD. Additionally, family members or potential business partners are not familiar with the potential arising from the migrant s background or expertise. Both sides lack 1

4 the tools to generate ideas and then select the most suitable ones; hence facing the risk of not carrying out their intentions or of failure. This tool provides helpful steps to overcome the obstacle and to find a feasible idea for productive investments. 5 Description: This tool consists of the following items: a. Understanding the business environment b. Scanning the present business environment in the region and country and identify market trends c. Describing and understanding own strengths and opportunities arising from their special situation as migrants d. Generating ideas on investment opportunities based on remittances or migration-related advantages (know how, market access) e. Participants (in small groups) will be trained to generate ideas on investment opportunities with brainstorming tools such as Focused Brainstorming, Value Addition etc. f Selection of potential investment opportunities based on personal preferences, assets and competencies, as well as specific risks, e.g. instability of remittances or partner relations g. Discussion and assessment of the selected ideas with other participants (peer check). 6 Prerequisites: 6.1 Implementing organization: For example: a. Foreign employment service organizations (public and private) b. Training organizations c. Business development service providers 6.2 Participants: It would be an asset if the participants in such courses had attended the cash flow management for migrants course, which would substantiate their decision to develop business ideas. However, such previous attendance is not a precondition. It is preferable to have migrants and potential partners attending the seminar together. The training can also be executed in the migrants CoD. 7 Particularities and/or difficulties: Existing idea generation exercises in the CEFE trainer manual will be adapted and used. Additional ones will be added (e.g. risk analysis). It will be an advantage to use existing CEFE trainers because they can easily understand and use the proposed tool box. If the potential trainers are not familiar with CEFE Training, they must be trained on action-oriented training to implement this programme. Such capacity building is not a part of this tool. If migrants are invited to participate, their availability must be taken into consideration. Very often, certain parts of the year are preferred by migrants to visit their countries of origin. 2

5 8 Costs: Costs vary from country to country based on rates of resource persons and other cost items. A table of estimated average costs for different activities is given as follows: Activity Organizing migrant s family group (per group of 25) Training on idea generation on investment opportunities (2 3 days training course) Approximate cost in US$ Venue and material Total budget 1,500 1, Links to other MITOS tools: MITOS Tool 04: Migrant Innovation Treasury MITOS Tool 05: Cash Flow Management MITOS Tool 07: Business Creation (Start-up) MITOS Tool 09: Import and Export Service Training MITOS Tool 13: Mentoring Prepared by: Piyatissa Tennakoon, CEFE International coordination@cefe.net 9 Dissemination: There are many training and coaching services for business start-ups, management and expansion in any country. But it is difficult to find such services for migrant-specific remittance management. The seminar offer can be disseminated by government agencies and/or programmes working in private sector development. In migrants CoD, there are often formal and informal social and community groups. These groups can be used as a means to introduce this tool (in brief), at least to raise awareness for the idea. Eventually, they can organize their local partners and link with this project. 3

6 Annex Training on idea generation for investment opportunities Course contents of the workshop Title Objectives Target group Duration Methodology Contents Trainers Expected outcome Training on idea generation for investment opportunities Participants will be enabled to Understand the business environment and market trends Identify potential investment opportunities (direct business and other investments) Select suitable income-generating ideas according to their specific competitive advantages (level of remittance, specific know how, market access etc) To analyze the risk of the reliability of partners and also of irregular remittances Have access to resources and support services Migrants Family members, existing and potential business partners of migrants Those who participated in the awareness raising workshop and cash flow management training Ideally, the programme can be offered in a season during which migrants usually visit their CoO 2 3 days CEFE style activity-based training methods will be used. This will be a specific version of the regular CEFE course. Introducing participants and trainers Exercise on Investment climate Creativity training Brainstorming session on idea generation for investment opportunities Focused Brainstorming, Value Addition, Market Alternative Exercise Introducing investment opportunities other than own business (Treasury Bills, Buying Shares, etc) How to assess the reliability of partners (potential business partners in CoO) SWOT analysis of own particular situation (migrant plus family) including the SWOT of migrant business partner Macro and Micro screening (specific criteria related to remittances) Selection of most promising investment opportunity for remittances Identifying risks and optional solutions on irregular remittances Introduction to business support service institutions CEFE Lead Trainer & Assistant Trainer This workshop requires both training and coaching to support the individuals. Participants have their own investment idea Participants use their assets for feasible business investments Participants have better access to support services Some participants are interested in follow-up training 4

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8 Published by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Sector Project Migration and Development Registered offices Bonn and Eschborn, Germany Friedrich-Ebert-Allee 40 Dag-Hammarskjöld-Weg Bonn/Germany Eschborn/Germany Phone: Phone: Fax: Fax: migration@giz.de Authors CEFE International and the global network of CEFE trainers Design andreas korn visuelle kommunikation, Bad Homburg Printed by Aksoy Print & Projektmanagement, Eppelheim Printed on FSC-certified paper Photographs Front cover: GIZ As at July 2012 GIZ is responsible for the content of this publication. On behalf of Federal Ministry for Economic Cooperation and Development, Division Federal government/states/local authorities; migration and employment; returning experts; export credit and investment guarantees Addresses of the BMZ offices BMZ Bonn BMZ Berlin Dahlmannstraße 4 Stresemannstraße Bonn/Germany Berlin/Germany Phone: Phone: Fax: Fax: poststelle@bmz.bund.de