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2. Content of Presentation. Role of Micro Hydro Power (MHP) SchemeExpanding the BusinessConcept of Business DevelopmentExpanding MHP Related BusinessesDeveloping New Business UnitsRecommended StepsAdditional Effects of Business DevelopmentProductive UseConcept of Productive UseConsideration
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1. Micro Hydro Power Management Business Development
2. 2 Content of Presentation Role of Micro Hydro Power (MHP) Scheme
Expanding the Business
Concept of Business Development
Expanding MHP Related Businesses
Developing New Business Units
Recommended Steps
Additional Effects of Business Development
Productive Use
Concept of Productive Use
Considerations
3. 3 Role of Micro Hydro Power (MHP) A Micro Hydro Power (MHP) scheme is not the final aim of a renewable energy/rural energy program
The final aim is the improved welfare of the communities - the MHP scheme represents a tool to help achieve this aim
Therefore the MHP management should consider all efforts to improve the welfare of the community
4. 4 Concept of Business Development Background
MHP management is essentially a small business entity (village utility) that must operate with a positive cash flow in order to ensure continued operation of the MHP scheme
Sustainability of MHP Scheme
Sustainability of MHP scheme is largely dependant on a healthy financial condition being maintained. The more funds the scheme can accumulate the more able it will be to cover periodic overhaul and equipment replacement costs
5. 5 Expanding MHP Related Business Core Business
In most cases the core business of MHP management is selling electricity to households for evening lighting
Expanding the Business
Expanding & strengthening the core business by widening the market to include small industrial end uses (productive end use). This includes opening new lines of business such small workshops, agro processing, cottage industries such as sewing etc
6. 6 Developing New Business Units Important Factors
Availability of adequate power. There must be sufficient power and a the means to access it for small businesses
Good Quality of Power. Quality of the power supply influences what type of appliances can be used
Capable Man Power. Skilful man power is needed for specific sectors
Market for products. There must be adequate demand demand for products / services
Available funding. To invest in new equipment / infrastructure adequate funding is required
Community agreement. Participation of community is important, they should be informed on potential for business creation (awareness building)
7. 7 Expanding Business - Recommended Steps Assessing the market potential
Assessing specific business forms / niches
Examining specific production processes and services which may be viable
Assessing the man power and natural resource requirements
Assessing the overall feasibility of the business
Assessing required investment
Assessing potential impacts on the environment
8. 8 Additional Impacts of Business Development The additional impacts are:
Improved skills of local man power
Improved entrepreneurial capacity of communities to identify potential business opportunities
Improved managerial skills of communities regarding small scale industry development (i.e. Financial, Production, Marketing)
9. 9 Concept of Productive Use Productive end use means any activity that utilizes energy (electrical or mechanical) for income generating activities. Through the expansion of income generating activities tangible impacts on the local economy and welfare of the community are achieved
Productive end use is a key strategy to improve the sustainability of MHP schemes in parallel with enhancing community welfare
10. 10 Considerations In promoting the development of productive end uses, one should consider:
Product and the market. The product should be marketable and access to markets must exist
Local resources. Should maximize the use of local resources and avoid over dependency on outside services. This includes local man power
Empower women. Productive end use promotion should target both men and women. Many small cottage industries are traditionally handled by women
Power Availability. Adequate power of a acceptable quality must be available and accessible