Fall 2019: Call for Business Proposals

As a part of Loden Entrepreneurship Programme (LEP), the Loden Foundation is pleased to announce ‘Call for Business Proposals’ from aspiring Bhutanese entrepreneurs for interest-free and collateral-free loan up to Nu. 1.5 million. The programme shall support a wide range of entrepreneurial ventures that are innovative, viable and has the capacity to scale-up and generate employment in Bhutan.

Standard selection process: An independent panel of judges comprising of international business experts, local business experts and relevant stakeholders will evaluate the business proposals. The proposals will go through preliminary round of shortlisting by beginning of September and the final interview for the shortlisted applicants will take place at the Loden office in Thimphu between September and October this year. Only shortlisted proposals will be informed and contacted individually for the interview round.

Standard loan scheme and repayment procedure: Selected ventures will be offered an interest-free and collateral free loan of up to Nu. 1.5 million repayable within three years time after the grace period. The selected applicants will be required to sign a contract agreement with the Loden Foundation and also present a guarantor who fits Loden’s criteria. The first tranche of the approved loan amount will be disbursed within two months after the final results are announced upon fulfilling necessary pre-requisites. The second tranche of the loan amount shall be only disbursed upon receiving original receipts of expenditure from first tranche, reports and after physical site verification conducted by Loden team.

Mentoring Support: Mentoring support shall be provided to the selected entrepreneurs to support the progress of the business and provide guidance in necessary areas related to business. The selected entrepreneurs may request the Loden Foundation to assign an international or a local mentor.

Application Process:

Loden Entrepreneurship Programme (LEP):

The Loden Entrepreneurship Programme exists to help young Bhutanese men and women who have the vision, drive and idea to set up or scale-up a business, which is economically beneficial, socially responsible, culturally sensitive and environment friendly.

The proposal will be evaluated based on the following priority criteria:

  1. Financial viability, able to repay the loan.
  2. Cultural, social and ecological sensitivity (e.g. not a slaughter house, fishery, logging, bar etc.)
  3. Clear and realistic (having started on a small scale is a plus).
  4. Social impact: employment generation, community benefit, etc.
  5. Geographic suitability or regional balance: Out of Thimphu is advantageous.
  6. Dependability: Loden should make a difference.
  7. Non-duplication of LEP funded projects or project should not be something, which is already in the market and where there is no requirement for such projects.
  8. Entrepreneurial drive and motivation. Good business is not sufficient; we need real entrepreneurs.
  9. Personal commitment: Teamwork and personal investment are plus.
  10. Skills: understanding competition and key business figures.

 

Please read this section very carefully

This year, in addition to the existing Loden Entrepreneurship Programme’s call for business proposals, we are happy to announce two new funding windows – Loden-UNDP Bhutan window and Loden-UNCEF Bhutan window.

  1. Loden-UNDP Bhutan window: The Royal Government of Bhutan (RGoB) with support from UNDP Bhutan is implementing the project “Gender Responsive Nationally Determined Contributions (NDC)” implementation in Bhutan (2019-2021). The project reiterates RGoB’s commitment to remain carbon neutral and aims to develop climate change actions to deliver sustainable and low-carbon development. The project is implemented through the National Environment Commission (NEC) and the National Commission for Women and Children (NCWC) with funding support from European Union and the Governments of Germany and Spain, and technical support from the United Nations Development Programme (UNDP).

As part of the project initiative, UNDP Bhutan in collaboration with Loden Foundation is pleased to invite innovative business proposals, which will make a social environment impact and contribute to Bhutan’s Nationally Determined Contributions. Applicants can access up to Nu 1.5 millions interest and collateral free loan as seed money. Through this funding window, we are happy to support 2-3 businesses this call.

Eligible applicants: Private Individuals and Youth groups for start-ups

The proposal will be evaluated based on the following priority criteria:

  1. Address environment related problems
  2. Innovative business ideas
  3. Application of improved technologies
  4. Create employment opportunities and participation of women and youth in its implementation
  5. Support ongoing projects that can demonstrate innovation and scale up ideas
  6. Project Impact, sustainability and potential to scale up
  7. More supporting information, click.

Loden Foundation and UNDP Bhutan reserves the right to evaluate business proposals submitted in the other two windows for consideration if they fall under the Loden-UNDP Bhutan funding window eligibility criteria.

  1. Loden-UNICEF Bhutan window: Loden Foundation in collaboration with UNICEF Bhutan and the Youth Centre Division of Department of Youth and Sports under Education Ministry, led entrepreneurship training at the 4 integrated youth centers based in Samdrup Jongkhar, Gelephu, Phuntsholing and Thimphu.

 

ONLY the Top 3 businesses selected from each of these centers are now eligible to apply and compete for this funding window with maximum Nu. 1000,000/-

Through this funding window, we are happy to support 1 business this call.

Standard required documents for all THREE windows:

A simple business proposal (not exceeding 15 pages) GUIDELINE here.

  1. A simple business proposal
  2. Curriculum Vitae (CV)
  3. A 500 word personal statement explaining why you are interested in the chosen business and what skills and knowledge you possess
  4. Duly filled ‘Business Plan Submission’ form available HERE:
  5. CIB report of the applicant and spouse, if married, from the Credit Information Bureau of Bhutan. For further details, you may visit www.cib.bt

Interested applicants must submit the complete set of documents in printed copies at the Loden Foundation office in Thimphu as well as email an electronic copy of complete set of documents in a single PDF file to application@loden.org. If you are outside of Thimphu, the documents may also be send via post to the Loden Foundation, Post box 131, Thimphu.

Applications that do not reach the Loden Foundation office or the Loden Foundation post box before 5:00 pm on 30th August 2019 will not be considered for selection. Only shortlisted candidates will be contacted for the interview rounds. Please note that if you are re-applying with the same idea, you must explicitly mention what is new in your business plan.

For any further information, you may contact Mr. Lhakpa, Programme Officer, at office phone 7719-5599 or email at lhakpa@loden.org during office hours.

If you need immediate assistance, or your question visit our FAQs page.