Baseline research and community consultations on the status of the community where you work will help you identify challenges facing businesses. Here are some of the key challenges that should be considered.
Capacity for business management - Most micro- and small-sized entrepreneurs and managers have some skills (e.g., harvesting seafood) but lack others (e.g., accounting, marketing, or people management). Other key capacity needs include the capacity to produce goods and services and to incorporate environmentally sustainable practices; and appropriate governance structures to allow for community management/ownership of business and to enable equitable distribution of benefits
Enabling environment – Micro- and small-sized businesses are often less likely to have the capacity needed to tackle barriers. For example, are they able to secure the necessary permits to operate, to secure use rights over natural resources, or to trade their products in local, national, or even international markets? Institutional barriers to establishing and growing business may be a key challenge.
Infrastructure- Does the business have access to an established marketplace, e.g., a public fish auction facility for local fishers? Does it have access to utilities such as electricity, gas, water, and telecommunications? Is there a sufficient transport infrastructure for deliveries? Is there a sound digital/telecoms infrastructure?
Access to markets -Accessing markets entails more than a facility for trading goods. It includes the ability to reach markets and sell products, e.g., enabling an overseas visitor to book at one’s local hotel. A critical component is also to have diversified and stable access to markets to enhance the resilience of businesses.
Access to finance -Developing business opportunities into successful and stable businesses requires investment. Many coastal communities do not have access to finance including access to the banking system or to networks of private investors or may not be able to use bank financing because of low capital.
Existing inequities - Within a given community, existing inequities may result in unequal access to education, business skills, financial capital, and other resources. Further, societal norms around gender, disability, class, or race may further exclude some groups from participating in formal and informal businesses. For example, women may not have access to banking institutions or may be responsible for caretaking tasks that leave little time for skills building and economic activities.
Sustainability -In particular, a business entrepreneur or manager may find it challenging to keep the business going – i.e., to make ends meet – and at the same time contribute to environmental and social objectives of the community. An entrepreneur might take short cuts by putting pressure on the marine environment or might fail to be inclusive and fair in hiring practices.
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