The Loden Foundation is thrilled to announce the bi-annual call for business proposals in collaboration with Boiling Point and Society Switzerland Bhutan. We invite aspiring and established Bhutanese entrepreneurs to submit innovative, viable, and scalable proposals. This program aims to support a diverse range of entrepreneurial ventures aligned with national priorities such as employment creation, import substitution, retaining overseas Bhutanese, and enhancing economic resilience. As we celebrate our 25th anniversary, we are particularly excited to promote creative sectors. In an effort to encourage creative businesses, this year we extend a special invitation for proposals from the creative industry alongside the open call for all businesses. We look forward to receiving your inspiring and impactful proposals.
Please read thoroughly, as all the instructions on applying have been mentioned in detail below.
Standard Selection Process: The business proposals and applicants will be evaluated by an independent panel of judges composed of both national and international business specialists. Shortlisted candidates will be invited to an interview in April 2024 at the Loden office in Thimphu or virtually. Changes in schedule will be announced on the website in advance.
Standard Loan Scheme and Repayment Procedure: Selected applicants will be given a four-year, interest-free loan of up to Nu.1.5 million. The loan will be disbursed within two months of the final results being announced and all necessary prerequisites being fulfilled. The Loden Foundation will require the selected applicants to sign a loan agreement along with a guarantor. The loan is divided into two instalments. The second tranche of the loan will be made following verification of the proper use of the funds received in the first tranche and a favourable recommendation from Loden’s project monitoring team.
Mentoring Support: Mentoring support will be provided to the selected entrepreneurs to help them advance their businesses and provide guidance in business-related areas. Once the business is up and running, the entrepreneurs must send a detailed bi-annual written report to the Loden office. Entrepreneurs are usually granted a grace period of up to six months before being required to repay the entire loan amount within four years.
What types of business ideas are eligible to apply?
The Loden Entrepreneurship Programme (LEP) was established to assist young Bhutanese with the vision, drive, and idea to start or grow an economically beneficial, socially responsible, culturally sensitive, and environmentally friendly company.
The proposal will be evaluated based on the following priority criteria:
- Financial viability (able to repay the loan)
- Cultural, social and ecological sensitivity (e.g. not a slaughterhouse, fishery, logging, bar etc.)
- Clear and realistic
- Social impact such as employment generation, community benefit, etc.
- Geographic suitability or regional balance
- Non-duplication of LEP funded project or projects (should not be something which is already in the market and where there is no requirement for such projects)
- Entrepreneurial drive and motivation (good business is not sufficient; we need real entrepreneurs)
- Personal commitment (teamwork and personal investment are a plus)
- Skills (understanding competition and key business indicators)
In this Spring Call for Business Proposals 2024, we also introduce a special Creative Funding Window to promote entrepreneurship in the creative sector. Part of the funding in this spring call will be allocated to creative industries, with the following conditions:
- Alignment with the ITC Categorization of Creative Industry: Business proposals must fall within the parameters outlined by the International Trade Center’s categorization of the creative industry, encompassing:
- Arts: a. Performing Arts: Choreography, Festivals, Live Music, Plays, Opera, etc. b. Visual Arts: Painting, Photography, Sculpture, etc.
- Audiovisuals: Animated Film, Fiction Film, Documentary Video, etc.
- Creative Writing: Essays, Music Lyrics, Novels, Play Scripts, Poems, Short Stories, TV/Movie Scripts, etc.
- Design: Advertising, Architecture, Crafts, Fashion, Games, Graphic Design, Industrial Design, Interior Design, Software, etc.
- Music: Advertising Music, Composition, Game/Movie Soundtracks, Songs, etc.
- Ethical and Legal Compliance: Businesses must adhere to ethical standards and legal requirements in their operations, ensuring compliance with relevant laws and regulations.
The Loden Foundation recognizes the immense potential of creative businesses and aims to provide the necessary support to help them thrive in the evolving economic landscape of Bhutan.
Application Process:
There are TWO application processes; please choose any ONE of the following:
Process A: Applicants must submit the business proposal template developed by Loden Foundation, which is available (HERE). If you are following process A, you do not have to submit the documents listed in process B because those documents need to be attached to the same template.
Process B: Applicants who are submitting their own business proposal must submit the following documents:
- Business proposal (not exceeding 15 pages) GUIDELINE
- Curriculum Vitae (CV)
- Personal statement explaining why you are interested in the chosen business
- Duly filled ‘Business Plan Submission form available HERE
- Latest CIB report of the applicant. If you are married, you also need to submit your spouse’s CIB report from the Credit Information Bureau of Bhutan. For further details, you may visit: https://www.cib.bt/ProductAndServices/Downloads.aspx
- CID or Permit Card copy
Note 1: We also encourage you to submit supporting documents (if applicable) such as lease approvals for land, proforma invoices of machinery & equipment and relevant recommendation letters proving proficiency or recognitions etc.
NOTE 2: If you are a returning applicant applying with the same idea, you must explicitly mention what is new in your business plan. You must also indicate if you have received or applied for funding for the same business from other funding sources.
Interested applicants must submit the complete set of documents in a single PDF file to Google Forms.
Submissions of applicants through email and hardcopy will not be accepted.
Applications submitted after 5 pm, 12th April 2024, will not be considered. Only shortlisted candidates will be contacted for the interview rounds. For any further information, you may contact Mr. Karma Losel Yangnyen, Programme Officer, at office phone 77195599 or email at klosel@loden.org during office hours.
Click Frequently Asked Questions for additional information.
Documents to Download