Terms of Reference to recruit a consultant/firm to provide technical assistance to the companies participating in the Business Plan Competition
I. Background and Rationale
The Rwanda Business Plan Competition (BPC) was a concept developed by the Private Sector Federation as one of the means to encourage the emergence, growth and development of Small and Medium Enterprises. It is based on the World Bank’s Development Marketplace program and the purpose of this program in Rwanda is to facilitate access to finances and to provide technical assistance to the promising Rwandan entrepreneurs through a competition. The process of Business Plan Competition that PSF started in 2009 has the particularity to target Technical and Vocational Education Training (TVET) Graduates and companies promoting the technical skills. PSF is conducting the process through the project supported by The Embassy of The Kingdom of The Netherlands.
The objectives of the project include promoting, stimulating and calling attention to entrepreneurship development in Rwanda by encouraging start-up and existing enterprises to prepare viable business plans that can attract external financing. This particular BPC also aims at building the capacity of the entrepreneurs to manage their businesses efficiently, to develop a spirit of networking and exchange of knowledge and skills amongst the entrepreneurs, and to work with development and commercial and development banks of Rwanda.
The actual situation shows that TVET Graduates are employed at a rate of approximately 20 %. The project has the ambition to improve the employability of this group by involving them in a business plan competition. The winners will be assisted in accessing the financial means and will benefit from the technical assistance to support their business take off and grow.
With the winning companies, PSF will arrange technical assistance for their businesses development.
To this purpose, PSF is looking for a reliable expertise to conduct this technical assistance.
II. Activities
Activities will consist generally in offering counseling and coaching for small businesses, both start-ups and existing who have won the Business Plan Competition. Services include assistance on business plan development, accountancy, taxes and legal issues, finance and banking, marketing and advertising, business management.
In more details technical assistance would focus on:
Accountancy:
– Methods of accounting
– Tax liability issues: income and payroll taxes
– Bank reconciliation
– Bookkeeping: balance sheet, income statement, cash flow
Taxes and legal issue
– Business structure: setting your business as a sole trader, in partnership, a limited company…
– Trading name
– Trading laws: restrictions on the way your trade with customers
– Terms of trading: dealing with your suppliers and other businesses
– Employing staff: their rights, expectations from them
– Insurance issues: what kind of insurance you need
– Taxes: income tax, value added tax, ….
Finance and banking
– Banking system: banking services, financial institutions, bank transactions
– Money and banking: functions of money as a medium of exchange while examining money supply and role of banks.
– Commercial and consumer lending: loan application, credit risk analysis, importance of collateral, calculation of interest charges
– Banking law: implementation of Government laws and regulations
Marketing and Advertising
– Use of Newspapers
– Use of magazines
– Radio and television
– Networking: business card, information brochure/pamphlet on your company, participation in workshops…
– Use of internet: creation of a website
Business management
– How to manage employees
– Market exploration and determination of prices
– Advocacy and information
– Use of technology
III. Expected outputs
– For every company trained, syllabus on subject’s mentioned at point II must be completed.
– A year report on training activities benefitting to the companies winners of BPC.
– Audit reports of a sample of companies drawn every year.
IV. Profile of the Firm/Consultant
The Consultant will have a solid track record in similar assignments with comprehensive experience in the business development. Specifically, the Consultant/Firm and the professionals it assigns to meet the outputs above will demonstrate:
– A strong knowledge of the local and regional private sector and the best practices related to that.
– Strong knowledge of the operations of local companies and the investment climate particularly in Rwanda.
– Local, regional or international consulting experience particularly in the field of business planning and strategy for financial institutions.
V. Tender Information
Interested consultants or firms must provide information indicating that they are qualified to perform the services (brochures, description of similar assignments, experience in similar conditions, availability of appropriate skills among staff, etc).
Interested consultants or firms may obtain further information and ToR at the PSF reception.
The expression of interest must be handed in the form of separated technical and financial proposals at PSF reception to the address below by 25th April 2011
NB: It is expected that the winning consulting firm will automatically use the PSF/BDS Consultants in all districts to provide services. PSF will negotiate with the winning company the terms on which they will be using the BDS consultants.
Private Sector Federation
Technical Assistance for the Business Plan Competition
Po Box 319
Kigali
Roger MUNYAMPENDA
CEO/ PSF