The Loden Foundation - Loden Entrepreneurship Programme

Loden Entrepreneurship Programme

The Rationale

As thousands of educated young people leave school and college each year, Bhutan is facing an unprecedented problem of unemployment. The private sector is still a fledgling and the civil service is over-subscribed. With a money-oriented economy sweeping across the region, there is a need for a socially responsible and ethical entrepreneurial culture. LEP was launched in order to give a helping hand to hundreds of young people who are searching for guidance and support to create businesses and employment in the new economic climate.

The Intent

The aim of LEP is to train and supportyoung Bhutanese in entrepreneurial ventures. The programme aspires to help themrealize their dreams by providing them training, moral and technical support,and initial funds to start new entrepreneurial ventures. By helping youngpeople to be self-starters in business enterprises, LEP hopes to cultivateentrepreneurial skills, create employment, and promote a self-sufficienteconomy, while also promoting social volunteerism by involving successful entrepreneurs and business experts asvolunteers. We also aim to build an entrepreneurial knowledge and resource baseand a pool of Bhutanese and international experts, who will give voluntarysupport and guidance to the young entrepreneurs. For more information read the LEP charter and themost recent LEP Report.

The LEP Training Programme

Entrepreneurial education is at the heart of LEP. Since launchingLEP in early 2008, we have successfully conducted two training in April, 2008and April 2009. Participants from a wide range of background attended thetraining.

The training was given by a group of businesslecturers, local entrepreneurs and one international experts. The coursescovered entrepreneurial thinking, ethics and skills, conception of businessideas and structures, financial analysis, operations and management, marketingtechniques, drafting of business plans,etc.

The trainings were hugely successful with over 60% of theparticipants rating course content as excellent and about 75% the quality ofinstruction as very good. All candidates felt their time at the courses werehighly productive. There were 31 female and 44 male participants in the 2009session. The next major trainingsession will be in April 2010.

LEP Capital Fund Competition

The LEPtraining programme is followed by the competition for funds. LEP providesinterest free loan to successful entrepreneurs. Announcements for competition aremade in April or May and candidates are asked to submit a business proposal bythe end of August. The LEP Jury will then assess the proposal at two differentstages and call the shortlisted candidates for an interview in October. In2008, there were 59 applications out of which 19 were shortlisted. Sevencandidates were awarded funds. Similarly, in 2009, there were 85 applications out of which 25 were shortlisted. Nine candidates were awarded funds ranging from Nu. 150,000/ to 400,000. No collateral is required for the loans butcandidates who receive the awards are required to sign a contract. For moreinformation on the purpose, processes and conditions of the loans, read our LEP charter , model contract and LEP report .

LEP Beneficiaries 2009

Ms. Karma Dema Cultural Guest House	Ms. Kuenzang Lhaden Beauty Parlour	Mr. N.B. Gurung Global Logistical Servce	Ms. Nidup Zangmo Handloom Centre	Mr. Ratna Bdr. Tamang Mobile Fast Food Service

Mr. Singay Jamtsho Electrical House Wiring	Mr. Sonam Dorji Water Cleaning Service	Mr. Tshering D. Dorji Mushroom Centre	Ms. Tshewang Lhamo Health Spa

LEP Beneficiaries 2008

Ms. Bimla Rai Financial Services	Ms. Deki Wangmo Tyre Resoling Centre	Ms. Namgay Motor Paint Retail	Ms. Pem Agricultural Store	Mr. Tandin Dorji Music Industry	Mr. Yenten Jamtsho Online Classifieds	Mr. Sonam Jamtsho Incense Factory

The LEP Mentorshipand Supervision Scheme

Hans Keller, one of the mentors of LEP

Whatdistinguishes LEP from a micro-credit is our emphasis on providing technicaland moral support. After the projects were selected for financial support, weappoint two mentors for each project. One is an international expert and theother a local entrepreneur or expert. These mentors advise and guide theentrepreneur through the process of setting up the business and giveprofessional and emotional support. The local mentor meets the entrepreneur andvisits the business site on a monthly basis and the international mentor,either in person or through other means such as telephonesand emails, discusses the business with the candidate periodically. The twomentors shall also from time to time discuss the problems and prospects of theentrepreneur's business.

In addition to the mentors,the LEP board regularly supervises the project through the LEP administrator. Lodenhas already built a rich pool of local and international mentors, who givetheir time and knowledge for free. This has in turn helped us to achieve ourother objective of promoting social volunteerism in Bhutan. We will soon postthe profile of our chief mentors here.

The LodenKnowledge Base

To supplementand enhance the Loden Entrepreneurship Programme, we are developing a walk-inresource centre attached to our office. The Loden Knowledge Base includes alibrary of books, journals and CDs on entrepreneurship and higher education andwill offer free internet access to allow students and entrepreneurs to browsethe internet for information. We will also keep a catalogue of useful websites.See Loden Knowledge Base for more details.

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