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This report was prepared for the United States Agency for International Development (USAID)

pursuant to Contract No. AID-268-C-17-00001, Lebanon Enterprise Development Project.

Implemented by:

CHEMONICS INTERNATIONAL INC.


1717 H ST. NW
WASHINGTON, DC 20006
Telephone: (202) 955-3300

DISCLAIMER
This report is made possible with the support of the American People through the United States Agency for
International Development (USAID). The contents of this report are the sole responsibility of Chemonics
International, Inc. and do not necessarily reflect the view of USAID or the United States Government.

2 | LED 1st ANNUAL WORK PLAN (REVISED)


CONTENTS
CONTENTS ................................................................................................................................................... 3
ACRONYMS .................................................................................................................................................. 5
A. INTRODUCTION AND CONTEXT ................................................................................................................ 7
A1. THE IMPERATIVE OF EMPLOYMENT CREATION ............................................................................................ 7
A2. LED DEVELOPMENT HYPOTHESIS, PURPOSE, AND OBJECTIVES.................................................................... 7
A3. THE LED TEAM AND STAFFING PLAN ............................................................................................................ 8
A4. LINKAGE WITH USAID/LEBANON ECONOMIC GROWTH STRATEGY ........................................................... 10
B. INTRODUCTION TO LED TECHNICAL IMPLEMENTATION .......................................................................... 11
B1. LED OBJECTIVE DYNAMICS ......................................................................................................................... 11
B2. GUIDING PRINCIPLES FOR IMPLEMENTATION ............................................................................................ 11
B3. CRITICAL ASSUMPTIONS FOR SUCCESSFUL IMPLEMENTATION.................................................................. 12
C. DETAILED TECHNICAL IMPLEMENTATION APPROACH ............................................................................. 12
C1. OBJECTIVE 1: CREATE JOBS BY INCREASING THE COMPETITIVENESS AND ENHANCING GROWTH OF
LEBANESE CLIENT FIRMS .................................................................................................................................. 13
C1A. LED’S STRATEGY FOR JOB CREATION ........................................................................................................ 13
C1B. APPROACH FOR JOB CREATION: TRACK 1 ................................................................................................. 13
C1C. APPROACH FOR JOB CREATION: TRACK 2 ................................................................................................. 18
C1D. WORKING THROUGH BUSINESS PROMOTION PARTNERS ........................................................................ 19
C2. OBJECTIVE 2: IMPROVE LEBANON’S BUSINESS ENABLING ENVIRONMENT (BEE) ....................................... 20
C2A. STRATEGY FOR LAUNCHING LED’S BEE WORK .......................................................................................... 21
C2B. LED APPROACH TO ADDRESSING A BEE ISSUES ......................................................................................... 22
C3. OBJECTIVE 3: COMMUNICATE RESULTS THROUGH OUTREACH AND SHARE PROJECT KNOWLEDGE WITH
THE PUBLIC AND PRIVATE SECTOR ................................................................................................................... 23
C3A. PROJECT COMMUNICATIONS AND OUTREACH FOR OBJECTIVE 1 ............................................................ 24
C3B. PROJECT COMMUNICATIONS AND OUTREACH FOR OBJECTIVE 2 ............................................................ 25
C3C. COMMUNICATION AND OUTREACH PROTOCOL WITH USAID .................................................................. 25
C3D. BRANDING AND MARKING ....................................................................................................................... 26
D. RESOURCES AVAILABLE FOR TECHNICAL IMPLEMENTATION ................................................................... 26
E. OTHER CONSIDERATIONS ....................................................................................................................... 27
E1. SUSTAINABILITY .......................................................................................................................................... 27
E2. SCALABILITY ................................................................................................................................................ 27
E3. GENDER INTEGRATION ............................................................................................................................... 28
E3A. KEY FINDINGS OF GENDER ANALYSIS ........................................................................................................ 28
E3B. PLANNED ACTIONS BY LED OBJECTIVE ...................................................................................................... 28
E3C. ENVIRONMENT ......................................................................................................................................... 29
F. MONITORING, EVALUATION, AND LEARNING ......................................................................................... 30
F1. MONITORING .............................................................................................................................................. 30
F2. EVALUATION ............................................................................................................................................... 31
F3. LEARNING ................................................................................................................................................... 31
G. OPERATIONS AND FINANCE ................................................................................................................... 32
G1. ESTABLISHING LED’S OPERATIONS AND FINANCE SYSTEMS ...................................................................... 32
G2. PROVIDING EFFECTIVE SUPPORT FOR LED’S TECHNICAL IMPLEMENTATION ............................................. 32
G3. SETTING THE STANDARD FOR COMPLIANCE AND ETHICS .......................................................................... 32
G4. CORPORATE LIAISONS ................................................................................................................................ 33
ANNEX A .................................................................................................................................................... 35
LED STAFFING PLAN .......................................................................................................................................... 35
ANNEX B .................................................................................................................................................... 37
LED KEY MILESTONES AND TIMELINES ............................................................................................................. 37
ANNEX C .................................................................................................................................................... 39
LED COMMUNICATIONS AND OUTREACH MATRIX .......................................................................................... 39

LED 1st ANNUAL WORK PLAN (REVISED) | 3


ACRONYMS
ADS Automated Directives System
ALI Association of Lebanese Industrialists
AMEG Asia and Middle East Economic Growth Best Practices project
B2B Business-to-business
B2C Business-to-consumer
BA Business advisor
BDS Business development services
BEE Business enabling environment
BEO Bureau Environmental Officer
BIAT Business Incubation Association in Tripoli
BLA Buyer-led approach
BPP Business promotion partner
BSP Business service provider
CCN Cooperating country national
CDCS Country Development Cooperation Strategy
CFR Code of Federal Regulations
CLA Collaboration, learning, and adapting
COP Chief of Party
COR Contracting Officer’s Representative
DO Development Objective
EA Environmental Assessment
EG Economic Growth
EMMP Environmental Mitigation and Monitoring Plan
ERAC Environmental Review and Assessment Checklist
FAST Field Accounting Support Team
FTE Full-time-equivalent
GDP Gross domestic product
IEE Initial environmental examination
IQS Indefinite quantity subcontract
IR Intermediate result
LED Lebanon Enterprise Development project
LIFE Livelihoods and Inclusive Finance Expansion project
LIVCD Lebanon Industry Value Chain Development project
LOE Level of effort
ME Middle East
MEL Monitoring, evaluation, and learning
MENA Middle East and North Africa
MEO Mission Environment Officer
PIRS Performance indicator reference sheet
PMU Project management unit
SME Small and medium enterprises
TBD To be determined
TCN Third-country national
USAID U.S. Agency for International Development
USG U.S. Government

LED 1st ANNUAL WORK PLAN (REVISED) | 5


A. INTRODUCTION AND CONTEXT
Chemonics International is pleased to submit a revised version of its first-year work plan 1 to the U.S.
Agency for International Development (USAID) Mission in Lebanon for the Lebanon Enterprise
Development Project (hereinafter “the Project” or “LED”), Contract No. AID-268-C-17-00001,
which is designed to increase employment opportunities for Lebanese citizens. This plan covers the
14-month period from October 1, 2017 through November 30, 2018.

This work plan is based on the contract statement of work and it builds on ideas from Chemonics’
technical proposal; the AMEG technical guide, “Jobs Series #1: Enterprise Competitiveness”; and on
the book, We Do Know How – A Buyer-Led Approach to Creating Jobs for the Poor by James T. Riordan.
The revision relies upon discussions that occurred between Chemonics and USAID during April and
May 2018 and on written technical feedback and guidance received from USAID on May 30, 2018.

This plan details our current understanding of how we will implement the project. Since this is the
first work plan, parts of it outline our life-of-project approach, but with emphasis on Year 1.

During implementation, we will apply a robust monitoring, evaluation and learning (MEL) approach,
introduced in Section F and detailed in our MEL Plan, a contract deliverable that was submitted
separately. This will enable us to identify what is working, what is not working, and what
opportunities exist to adapt our approach to improve performance. Any significant changes to the
LED approach will be discussed and agreed with USAID before they are implemented.

A1. THE IMPERATIVE OF EMPLOYMENT CREATION

Lebanon is a country in transition, in a region with extremely complex geopolitical challenges. The
need for social and economic stability is high. USAID is committed to supporting both. Recent
events serve as a reminder of the fragility and vulnerability of these conditions.

Adding to this challenge is Lebanon’s high unemployment and under-employment, which puts added
stress on the country’s prospects for stability and economic growth. As noted in the LED contract,
“there is little doubt that employment generation constitutes a major development challenge for
Lebanon.” Therefore, employment creation activities such as LED are important and timely.

According to a recent report 2, the unemployment rate among Lebanese citizens rose from 11% in
2011 to 33% in 2016, representing 360,000 more unemployed people during the period. The conflict
in Syria and the resulting flow of refugees into Lebanon largely explains this increase, as thousands of
Lebanese workers have been substituted by Syrian workers in practically all economic activities,
exports have been challenged by a largely closed land border and tourism arrivals and receipts fell
due to a negative perception of the country’s safety and stability.

To contribute to Lebanon’s peace and stability, Lebanese citizens need wage-based employment,
especially the youth, university graduates, and women who experience chronic unemployment.

A2. LED DEVELOPMENT HYPOTHESIS, PURPOSE, AND OBJECTIVES

Most observers recognize that in Lebanon, small and medium sized enterprises 3 (SMEs) are a logical
place to look for economic dynamism and employment generation. They also recognize the many
problems—both firm-specific and others related to the business environment—that make business
expansion and employment creation difficult.

1 The initial version of the first-year work plan was approved by Contracting Officer Representative February 16, 218.
2 http://middleeasttransparent.com/en/lebanese-and-other-nationalities-in-lebanon-population-and-employment-2011-2016/
3 According to USAID small enterprises have 11-50 employees whereas medium sized enterprise have 51-100 employees.

LED 1st ANNUAL WORK PLAN (REVISED) | 7


LED’s development hypothesis is that increased private sector employment will contribute to
stability in Lebanon through job creation. The theory of change is that private sector jobs have not
kept pace with the growing numbers of Lebanese looking for work because of constraints to growth
for private enterprises. Firms will expand their workforce if they can grow the demand for their
products and services or identify new products, services, or markets.

Accordingly, LED’s purpose is to increase employment opportunities (jobs) for Lebanese citizens by
working per the project’s three objectives:

1. Create jobs by increasing the competitiveness and enhancing growth of Lebanese client firms
2. Improve Lebanon’s business enabling environment
3. Communicate results and share project knowledge with the public and private sectors

To achieve this, LED will apply a problem-solving market-led approach, rooted in the buyer-led
approach (BLA) as defined in the LED contract, to engage directly with private enterprises, private
sector organizations, associations and syndicates, and other stakeholders, to identify and solve
business related problems that are constraining enterprise- and sector-level sales (domestic and
export), investment, and employment growth. This will contribute to Lebanon’s economic growth.

As required, LED will assist enterprises or groups of enterprises to identify market/s or buyer/s and
understand their requirements; to diagnose the key constraints that stand in the way of boosting
sales to these market/s or buyer/s; and to find solutions to these problems using tailored solutions
delivered principally by Lebanese business service providers and consultants, or as needed, by
international consultants. LED-supported solutions may be enterprise specific or benefit a group of
firms that may share common challenges or business development opportunities. LED solutions may
also address constraints that are common to many firms, or a target sector or subsector, including
but not limited to deficiencies in the quality and quantity of the workforce, as well as improved
market access and promotion to catalyze demand to boost sales and exports.

LED will prioritize support for businesses that produce goods and services for a known buyer or
market. Market access and sales support will also be provided to firms or groups of firms or a sector
if they demonstrate credible likelihood of being able to meet prospective market expectations and
convert demand into sales leading to jobs. Most of LED’s work will be transactional—focused on
making deals happen, because sales growth leads to jobs. Over time, LED will also prioritize selected
business enabling environment problems and work with the private sector to analyze these issues
and propose solutions for them.

A3. THE LED TEAM AND STAFFING PLAN

Working to deliver these expected results is the LED team which is organized into four units:
competitiveness team; communications team; monitoring, evaluation, and learning (MEL) team; and
the operations and finance team. All teams work under the leadership of the LED Chief of Party.
Please refer to Annex A, Staffing Plan, for a visualization of the reporting structure.

Chief of Party (COP)/Managing Director will provide the project’s overall leadership,
technical direction, and management. will guide LED’s technical implementation,
management approach, and contractual compliance, and he will liaise regularly with USAID, USAID
counterparts, and project stakeholders. will be USAID’s primary point of contact and
will engage the Contracting Officer’s Representative (COR) on matters relating to LED’s strategy,
activities, and results. will serve as the link between the project’s work and USAID.

will directly supervise four individuals: Deputy Chief of Party/Director of Operations and
Finance , who will oversee the operations and finance team; Director of Business
Promotion , who will oversee the competitiveness team; Director of

8 | LED 1st ANNUAL WORK PLAN (REVISED)


Communications , who will oversee the communications team; and Director of
MEL , who will oversee the MEL team. (
are designated in the LED contract as key personnel.)

The operations and finance team will be led by Deputy Chief of Party/Director of Operations and
Finance , who will supervise Deputy Director of Operations and Finance
. will supervise Finance Manager , Grants
and Procurement Manager , and Office Manager .
Bookkeeper will report to , and Grants and Procurement
Assistant will report to . The project’s two drivers,
and , will report to . A TBD administrative assistant may also
report to .

The competitiveness team will be led by . will oversee LED’s eight


business advisors who will be hired by LED’s business promotion partners (BPPs), i.e. Berytech
Foundation and the Business Incubation Association of Tripoli (BIAT). Berytech will provide
coverage for Beirut/Mt. Lebanon, South Lebanon, and Bekaa. BIAT will cover Northern Lebanon.

The eight business advisors that will work in the four regions will be selected by the management of
the business promotion partners with substantial input from , , and
LED’s business promotion partners will only be authorized to hire LED-approved business
advisors. The business advisors will be trained in LED’s methodology and supported by short-term
experts (expatriate and national) to drive job creation and improve private sector competitiveness.

The communications team will be led by . Communications Specialist


will report to . Together they will develop outreach and communication
strategies to satisfy USAID’s reporting requirements and to raise awareness among the Lebanese
businesses, business leaders, private sector organizations, civil society, and the Lebanese government
about LED’s work. Success stories will promote LED’s impact and help to convince businesses to
work with LED. In addition, the communications team will support private sector organizations to
produce outreach and awareness-raising messages delivered through multiple communications
channels to build support for reforms that will improve the business enabling environment. The
communications team will design LED’s strategic communications plans and will coordinate with
firms and social media outlets to make sure LED messages raise awareness among target audiences.
As required, the team will also assist to organize technical workshops, trainings, etc.

The monitoring, evaluation and learning (MEL) team will be led by and supported
by two MEL Specialists, and a second MEL specialist (TBD). Together, they will
collect baseline data from LED’s client firms and regularly review and analyze the data that is being
provided by client enterprises as an integral part of LED’s monitoring efforts. In addition, and
together with , the MEL team will keep close watch on the output and outcomes of the
business advisors to hold them and LED’s regional business promotion partners accountable for
results. When the expected results are not being achieved, the MEL team will help to
understand why and to suggest corrective action. Likewise, if results are above expectations, the
MEL team will examine the situation to understand why this is the case. Where lessons can be
drawn and shared with the other business advisors, the MEL team will work with the
communications team to package and disseminate this information. MEL team will also put in place
and implement a process that embeds learning into LED’s work, continuously facilitating discussions
within the LED team about what is working, not working, or could be adapted for greater impact.

Project Management Unit. Chemonics will provide dedicated home-office project management support
through a three-tiered project management unit, comprised of Director , Manager
, and associate-level staff. These individuals will devote about half of their time
each year to backstopping the project at no direct cost to the contract. Chemonics will bill the
services of these staff members only when they are on USAID-approved billable assignments.

LED 1st ANNUAL WORK PLAN (REVISED) | 9


LED’s goal aligns fully with the PSD project goal, and LED is a principal mechanism for the
achievement of PSD Result 1. LED’s three contract-specified objectives can be easily aligned with the
three PSD project IRs. Achievement of LED Objective 1 can be realized by helping the private sector
to boost domestic and export sales (PSD IR 1.2) and through increased workforce development
(PSD IR 1.3), which will improve the quality and quantity of the labor force. For its part, LED
Objective 2 is already fully aligned with PSD IR 1.3—an improved business enabling environment.

B. INTRODUCTION TO LED TECHNICAL IMPLEMENTATION


In this section, we will outline three topics that have influenced our approach to technical
implementation: 1) the dynamic relationship among the three objectives; 2) our guiding principles for
implementation; and 3) several critical assumptions for successful project implementation.

B1. LED OBJECTIVE DYNAMICS

LED’s three objectives are interrelated. At LED’s core is Objective 1: Job Creation. LED’s work under
this objective will lead to the desired increase in jobs, the goal of the project, through increasing
sales and investment and improving the workforce. Through our engagement with the private sector
under LED’s first objective, LED will identify business enabling environment issues, some of which
will be prioritized for LED-supported interventions under Objective 2: An Improved Business Enabling
Environment (BEE). Successful BEE development or reforms will contribute to accelerated sales,
investment, and job growth. Support under this component may include policy reform interventions,
or improved access to finance, business development and market access support at the sector or
subsector levels. Objective 3: Outreach and communications will be a catalyst for the first and second
objectives. Communicating how LED is assisting the private sector and the impact of this assistance
on Lebanon will promote USAID impact on the Lebanese economy, while outreach activities will
contribute to driving non-client enterprises and other private sector organizations to seek out LED
support. Communication activities may also be used to help achieve the first objective by supporting
market access communication activities. Similarly, BEE-focused strategic communications will raise
awareness and understanding for LED-prioritized BEE issues that will build support and political will.
LED successes on BEE issues can also be packaged and fed back to the business community. Our
understanding of how the three LED objectives interrelated has influenced our approach and
informed our selection of LED’s indicators.

B2. GUIDING PRINCIPLES FOR IMPLEMENTATION

The LED contract includes aggressive jobs targets, i.e. 9,800 new and 17,743 continuing full-time-
equivalent (FTE) jobs over five years—3,626 new and 5,012 continuing FTE jobs during the base
period. To achieve these targets, LED will be implemented in a focused, yet flexible manner to
support most promising private sector job creation opportunities. To that end, we will adhere to
four key principles as follows:

1. Adopt an inclusive definition of the buyer-led approach (BLA)—a market-led


approach. BLA is described in the book, We Do Know How – A Buyer-Led Approach to Creating
Jobs for the Poor, by James Riordan, as focused on assisting individual enterprises in a non-sectoral
manner. While focus on the firm-level is expressed in the LED contract, BLA does not preclude
supporting firms or groups of firms at the enterprise, sectoral or sub-sectoral levels. As USAID
clarified in its May 30, 2018 communication, “LED has a clear scope allowing for work with
enterprises, groups of enterprises, business associations, or any entity to be found suitable to
reach the objective of job creation through sales growth and competitiveness enhancement.”
This approach also allows LED to take advantage of targets of opportunity that may be achieved
by positively impacting suppliers that would lead to a cascade effect of helping other firms—
boosting demand for their good and services and stimulating additional employment.

LED 1st ANNUAL WORK PLAN (REVISED) | 11


2. Seek out and analyze other methods to create employment. Building upon our first
guiding principle, LED will look for other cost-effective means of increasing employment. LED
may group enterprises to address common constraint/s to sales and job growth or support
sector/subsector associations or syndicates to offer solutions for common problems—for
example, supporting export facilitation or promotion programs that would open new markets,
standing-up workforce development initiatives for sector/subsectors that can immediately
absorb skilled personnel, or working through large enterprises/organizations, e.g. cooperatives,
to create employment opportunities for many small-scale suppliers, including farmers.

3. Allocate resources to where there is the most opportunity. Given LED’s aggressive jobs
targets, the project must invest its resources to give the highest return. During implementation,
LED will be asking if resources are invested in the right place/s and at optimal levels to effectively
and efficiently facilitate job creation and maximize the project’s “return on investment”.

4. Create partnerships to leverage funds and expand access to finance. Relating to cost-
effectiveness, LED will look for ways to leverage resources through cost-sharing with the client
enterprises. LED will also seek partnerships with the private sector, other donor projects and/or
local and international organizations that share LED’s vision or objectives. In addition, LED will
seek partnerships with banks and other financial institutions as a source of leads for prospective
client enterprises, and to expand opportunities for client enterprises to better access finance.

5. CLA-anchored project agility. We will regularly test LED technical approaches as part of
our learning component to customize the model for the realities of Lebanon. To ensure the
project is nimble and agile for achieving results, we will maintain open communication with
USAID to collaboratively refine our approach, should such a need be identified.

B3. CRITICAL ASSUMPTIONS FOR SUCCESSFUL IMPLEMENTATION

To meet LED’s project results, our approach assumes that factors which are outside of the project’s
manageable interest do not hamper implementation. Key implementation assumptions include:

Lebanon’s political, economic, and social stability will remain at its current level or
improve. Stability and the prospect of a better future will create an environment for business
expansion. Without stability, international buyers and investors will fear doing business with
Lebanese firms, local entrepreneurs will delay expansion plans, and access to finance will become
tighter. If stability returns, local businesses may look to expand their operations. But if instability
remains or gets worse, it will likely damage investor confident and make expansion unlikely.

LED will be able to deploy its resources in a timely manner. The LED contract requires that
project staff, consultants, subcontractors, and grantee to receive various USAID approvals as well as
pass robust vetting rules. LED will ensure rapid processing of client enterprises support needs and
assumes timely approvals and vetting results from USAID.

USAID is supportive of CLA as LED progresses. A necessary criterion for LED’s success is
being responsive to evolving private sector needs and Lebanese economic realities. This may require
adaptive course corrections during implementation per CLA principles. Adaptations that shorten the
path to LED goals will be presented to USAID for discussion and approval.

C. DETAILED TECHNICAL IMPLEMENTATION APPROACH


In this section, we present LED’s technical implementation approach by project objective, discussing
how we will achieve the project purpose, objectives, and expected results. Annex B contains a table
of key milestones and timelines.

12 | LED 1st ANNUAL WORK PLAN (REVISED)


C1. OBJECTIVE 1: CREATE JOBS BY INCREASING THE COMPETITIVENESS AND
ENHANCING GROWTH OF LEBANESE CLIENT FIRMS

C1a. LED’S STRATEGY FOR JOB CREATION

To create private sector jobs in Lebanon, LED will work along two tracks.

1. Firm-Level Track. The first track, where LED will place most of the emphasis and invest most
of its resources, is enterprise focused. LED will use a non-sectoral, enterprise-focused, and
market-led approach to solve constraints and thereby enable companies to grow, hire people
and increase demand from suppliers. LED will directly engage individual enterprises or groups of
enterprises, as appropriate.
2. Sector-Level Track. Building on the first track, LED will seek to group enterprises and move
to promising sectors, sub-sectors, or niches when possible and efficient. Because the scope did
not pre-identify sectors, it gives flexibility and opportunity for LED to select and focus on
sectors or subsectors that demonstrate strong likelihood of growth and employment generation.
This approach allows a cascade effect of technical assistance and other support provided to
sectoral groupings. In this track, LED expects to mostly address constraints that are related to
market access, export promotion and work force development. LED will also engage and
partner with private sector associations, syndicates, or other non-government organizations to
diagnose and solve common constraints to enterprise growth and/or employment creation.
C1b. APPROACH FOR JOB CREATION: TRACK 1

LED will adopt an inclusive definition of the buyer-led


Inclusive and Flexible BLA Definition
approach (BLA), consistent with how it is defined in
the contract. Accordingly, LED will use a flexible “The essence of the buyer-led approach is taking
market-led approach to support enterprises and boost market demand as the starting point for all program
their competitiveness. Fundamentally, BLA is a activity and working backward to solve the problems
demand-driven approach to enterprise development that stand in the way of satisfying that demand.”
(see adjacent box) that focuses on helping enterprises — Dr. James Riordan
to produce what they can sell rather than sell what
they produce. Ideally, demand means a specific buyer—a person or company—with a name and
address. However, per this definition, demand may be identified as a firm having already identified a
specific buyer, or one or more enterprises having identified market opportunities that with LED
support can convert demand into sales by finding new buyers or expand sales to existing ones.

At the core of our approach to track one is a process whereby LED will identify, engage, and assist
enterprises to understand, or better understand, market or buyer requirements in terms of product
or service standards (quality), price, quantities, delivery terms, etc., and then to diagnose the key
constraints—often at the enterprise level—that stand in the way of concluding new deals or making
larger deals with these buyers. LED will then work with client enterprises to find tailored solutions
to the constraints that are impeding growth and employment creation. All things being equal, LED
will prioritize assistance to firms that produce goods and services for a known buyer or market.
LED’s work will be transactional—focused on making deals or better deals happen—because for
jobs to be created, enterprise sales must grow, so the focus must be on facilitating or catalyzing
deals. This approach is illustrated in Exhibit A on the next page.

Using the model outlined in Exhibit A, there are various deal combinations that LED may facilitate as
illustrated in Exhibit B. The primary deal combination under LED is expected to be when
large/medium sized company (B) sells to final buyer (A). A secondary deal combination will be when
supplier firm (C) sells to company B. However, as LED’s network grows, so will the possibility of
facilitating B to B or C to C deal combinations when the buyer-seller relationships make business
sense. Accordingly, during implementation, LED will look to play match-maker when it identifies two
firms for which a deal may be possible. In all cases, however, each deal will depend upon knowing
the buyer/s at the A-, B-, or C-levels because they will drive the deal, thus leading to sales and jobs.

LED 1st ANNUAL WORK PLAN (REVISED) | 13


accelerate this, LED will also prepare and disseminate in hardcopy and through social media—and its
subcontractors’ social media platforms—success stories and videos about its work. With time, LED
expects that referrals will become a major source of new enterprise leads for the project.

Enterprise Selecting and Engaging: Amassing a pool of potential clients is important, but only
half the story. LED must evaluate these prospects to identify those that it can and should assist—
firms who will yield a high return in terms of increased sales, investment, and most importantly new
jobs. To do this, LED will follow the process outlined below, responsibility for which is shared
between LED’s business advisors (BA), hired by BIAT and Berytech, and the LED team hired by
Chemonics, principally the Chief of Party, Director of Business Promotion, and Director of MEL.

To aid this process, LED will prepare an Enterprise Engagement Toolkit that describes the enterprise
selection and engagement process. The toolkit will breakdown the actions that are expected of the
BAs. It will also include copies of all forms and templates to be used to facilitate the BAs work.

Step 1 Profiling: After a prospective client POSSIBLE AREAS FOR LED ASSISTANCE
enterprise is identified, the LED team, but mainly
• Identifying new buyers/markets
the BAs who are located throughout the country,
• Improving sales and marketing
must gather essential information about the firm and • Improving transport, logistics and distribution
the potential impact of assisting it. LED must collect • Improving product packaging and branding
information about the enterprise; it’s market/s • Upgrading production techniques
and/or buyer/s; the product/s or service/s offered or • Enhancing quality control systems
potentially offered for sale; the nature of the • Improving/upgrading product design
transaction/s to identified market/s or buyer/s; • Identifying/organizing new suppliers
• Upgrading technological innovation
constraint/s diagnostic; solution/s assessment; the
• Accessing credit/finance
expected support from LED (see the box to the • Improving management practices
right for a list of possible technical assistance); and • Improving human resource development
the impact of this support in terms of increased • Improving knowledge management
sales, investment and new jobs. Then, the LED team
will use the following criteria to evaluate each prospective client enterprise.

1. Readiness: Is the company ready to receive LED support? Does the enterprise have growth
potential, a desire to grow, and plan/s for growth (even an informal plan)? Is the firm self-
aware—does management understand or purport to understand the firm’s strengths,
weaknesses, opportunities and threats? Do they understand—more or less—the constraints that
are inhibiting their growth? Does the enterprise need assistance from LED?

2. Market clarity: Does the firm know its market, preferably its buyer/s? Does the enterprise
understand what the buyer/s or market wants to buy, and will they purchase it from the
enterprise? Can the business supply what the market or buyer/s require? Will supplying the
buyer/s or market result in enterprise growth—in increased sales? If a specific buyer is not
known, does the firm know in what market/s it can be competitive? Are there cost effective and
efficient way/s for the enterprise, or a cluster of similar enterprises, to access the market/s with
LED support (also see points 4 and 5 below).

3. New job potential: If assisted by LED to reach the market/s or buyer/s identified, will the firm or
its directly linked suppliers preferably create a minimum of five (5) new full time equivalent jobs for
Lebanese citizens within the base period? All things equal, we will give preference to enterprises
that will create jobs more rapidly—preferably within one year—and/or for women and/or youth.

4. Cost effectiveness: During year 1, the approximate cost to LED per new job created should be
roughly . Cost refers to only the direct costs of LED assistance, i.e. the monetized value
of any consultant salaries, consulting firm fees, and grants, etc. and the direct costs of providing
this assistance, e.g. travel and per diem (as applicable). LED views this target in the aggregate
sense over the life of the project and may differ from deal to deal.

16 | LED 1st ANNUAL WORK PLAN (REVISED)


5. Cost share potential refers to the extent to which the enterprise is willing and able to cost-share
with LED for the assistance it requires. A higher cost share is preferred.

In addition to the above-mention criteria, LED will consider other factors when evaluating whether
it will assist enterprises or cluster of enterprises. LED will look to support opportunities:

• Where LED will add real value (where there is additionality).


• Where the company has expressed interest in LED support (where the firm has self-selected).
• Where LED can help to link firms with new buyers/markets.
• Where LED’s assistance helps to meet the needs of a specific buyer.
• Where LED’s technical assistance can be delivered in less than 6 months.
• Where the enterprise plays a key role in a value chain or can serve as an example to other firms.
• That enable LED to build a diverse portfolio of firms, sectors, and activities throughout Lebanon.
• That do not create perceptions of favoritism or that help to create monopolies.

Information about enterprise prospects that meet these criteria will be shared with LED
management—the Chief of Party, Director of Business Promotion, and Director of MEL—who will
decide whether an enterprise is pre-selected for assistance and passed to the next step.

Step 2: STOP/GO (1): For pre-selected firms, LED will summarize the relevant details about the
enterprise, the envisioned assistance, and expected results and submit it to the USAID COR for
concurrence to proceed. If COR concurrence its granted, then the deal passes to the next step.

Step 3: Documentation: At this stage, LED works to compile all the information that will be
required to support to the prospective client enterprise. Information and documentation is required
for three things: i) vetting prospective enterprises and technical assistance providers, e.g. consultants
or consulting firms, in USAID’s Partner Vetting System (PVS), ii) hiring or subcontracting technical
consultants or consulting firms, which includes scopes of work, CVs, biodatas, proposals from
consulting firms, and subcontracts and associated documents; and iii) preparing the client growth
plan (CGP)/Memorandum of Understanding (MOU) that will be signed by the enterprise and LED.

Step 4: STOP/GO (2): Once all the information and documentation has been collected, and the
final terms and conditions of the assistance from LED are documented in the CGP/MOU, LED will
send the draft CGP/MOU to the USAID COR for final concurrence. If concurrence its granted, then
the deal passes to the next step.

Step 5: Signing: After the USAID COR has given final concurrence, an authorized representative
of the client enterprise and the LED COP will sign the CGP/MOU making it effective and triggering
all actions that are necessary for LED to provide the assistance as agreed.

Step 6: Assisting: Once the CGP/MOU is signed, LED and the client enterprise will begin to
implement it. LED’s MEL team will meet the client enterprise to collect the required baseline data
for activity monitoring. They will also ask for information on what the enterprise sees as its key
policy constraints and reform priorities. In parallel, if consultant/s, technical subcontractors (BSPs),
in-kind grants or grants to third-party organizations are required, LED will finalize any outstanding
details, as applicable. As resources are deployed, LED’s Director of Business Promotion and the
relevant BA will oversee the delivery of any LED-provided/financed services.

Step 7: Tracking: After LED’s assistance has been delivered as outlined in the CGP/MOU, LED’s
MEL team will periodically monitor the results of the client enterprise, comparing the results with
what was envisaged. When there are deviations, the MEL team will endeavor to understand why,
and then use this information to enrich LED learning events, which will be critical for LED to adapt
its process and approach so that it works smoother, faster, and results in greater impact.

Throughout project implementation, LED will follow the status of each enterprise from profiling to
tracking using Pipedrive, a mobile- and web-enabled sales and data management system, with a user-

LED 1st ANNUAL WORK PLAN (REVISED) | 17


friendly interface. Pipedrive will also allow BAs to manage their portfolio of enterprises, and permit
staff from LED’s Beirut office to monitor the BA/s activities and progress.

C1c. APPROACH FOR JOB CREATION: TRACK 2

In track two, LED will also apply a flexible market-led approach, but the emphasis will be on assisting
enterprises—directly or indirectly—through collective action/s, implemented through or in
partnership with private sector associations, syndicates, or other non-government organizations, to
solve common constraints to enterprise growth and/or employment creation.

LED will mostly intervene on general sector or subsector constraints or opportunities related to
market access, export promotion, and/or work force development where solutions can be scaled
across multiple firms. These opportunities will be identified through LED’s enterprise assistance in
track one, discussions with private sector organizations, or through occasional assessments that are
focused on some promising sectors, subsectors or niches. LED will support a variety of sectoral
opportunities demonstrating likelihood of growth and job creation. LED will also look for other
targets of opportunities that present credible job creation potential. There are various initiatives that
may be supported that could enable firms to identify domestic or international buyers to achieve
growth, leading to increased sales and employment. Below are specific examples of promising
sectors and market growth initiatives already identified.

Promising sectors and market


Two Promising Sectors: Agro-food and Tourism
growth initiatives
Agro-food contributes roughly 20% of Lebanon’s exports and accounts
Promising sectors for most of the firm-specific assistance opportunities identified by LED
so far. Many more enterprises are in LED’s pipeline. With time,
common constraints will likely emerge; but for now, LED support is
As LED’s portfolio of assisted
tailored to the needs of each company. That said, export market access
enterprises grows, LED will likely is a known challenge that LED may be able to address. However, there
focus on the following sectors 4: agro- is an ongoing effort, funded by USAID’s LIVCD project, to assist a
food; tourism and hospitality; group of Lebanese food companies to access the U.S. market through
pharmaceutical; information and participation in the 2018 Fancy Foods Show, taking place June 30-July
2, in New York City. It would be prudent to wait for the outcome of
communications technology; and this event before deciding whether there is an opportunity for LED to
manufacturing. To-date, through provide follow-up support for this group of companies or for individual
private sector consultations and firms who are part of this group.
engagement with business For its part, tourism and hospitality, historically an important sector in
associations, the key opportunities Lebanon, has shown signs of recovery and in 2017 inbound tourism
identified exist in agro-food and into Lebanon stood at a five-year high. Visitor interest in Lebanon is
tourism and hospitality sectors. also on the rise according to TripAdvisor reports. While encouraging,
Lebanon’s recent performance falls below the year 2010 when visits
peaked. Also, the 2017 World Economic Forum Travel & Tourism
LED will explore the opportunities in
Competitiveness Index ranks Lebanon 96th out of 136 destinations
the tourism and hospitality further assessed. This points to the need for collective action to unlock
during a rapid sector assessment and impediments to growth that a single firm alone may not be able to
action planning assignment that will surmount. Building on the positive trends, an opportunity exists to
be carried out before the end of the return to Lebanon to its original levels, and ensure the arrival of higher-
yielding visitors. But all members of the tourism value chain must to
fiscal year by , LED work together in a mutually-supportive and complementary way to
home office director and former generate arrivals and maximize local economic gain through visitor
COP for consecutive USAID tourism high-value visitor spending.
projects in Jordan. This assignment

4 The focus on these sectors is largely consistent with the preliminary conclusions drawn by U.S.-based consultancy firm

McKinsey & Company, which on Wednesday, July 4, 2018 presented the Lebanese Government with a wide-ranging, long-
term plan to diversify and modernize the productive sectors of Lebanon’s economy. McKinsey recommended that Lebanon
focus on five sectors: i) agriculture, ii) industry, iii) tourism, iv) financial services, and v) the knowledge economy. As part of
its recommendations for industry, Lebanon was encouraged focus on a) agro-food, b) cosmetics, c) pharmaceuticals, and d)
building materials. As concerns tourism, McKinsey recommended efforts to increase the number of visitors from 16
specific countries in Europe and other Arab countries; promote and develop tourism services in three main tourism
centers in Lebanon (TBD); promote leisure tourism; and develop specialized tourism, e.g. ecotourism and medical tourism.

18 | LED 1st ANNUAL WORK PLAN (REVISED)


will lay the ground work for a more comprehensive and systematic approach to supporting the
sector in Year 2 in ways that will lead to increased employment for Lebanese citizens.

Franchising: A Lebanese Strength

Although not a sector per se, LED has uncovered a strong interest in franchising as a business
growth strategy by different Lebanese firms in various sectors. The growth potential of franchising
presents significant job creation opportunities as well as new business startups and expansion.
Building on this, in July, in partnership with LFA and chambers of commerce, LED will begin a series
of four awareness workshops about franchising in Beirut, Saida, Zahle, and Tripoli, capped off by a
one-day training in Beirut, tentatively planned for September. This will help to set firms that are
interested in franchising on the right path, and will likely generate new clients for LED.

Expanding Lebanese Exports

The is seeking LED support to create an export help


desk to assist its members to access foreign markets and increase export sales. This private sector
initiative is both timely and necessary, since Lebanon does not have an effective national export
promotion organization to assist firms in opening markets or to provide advice on market access.
During work planning, several firms identified exports as a key path to success, given domestic
market growth limitations. Pending further affirmation of commitment for an inclusive and
practical export help desk, LED may provide a grant, subject to USAID approval, on a cost-share
basis to support to stand up this new service. The help desk is envisioned to help firms research
foreign markets, identify growth importing industries, their geographies and support identification of
specific buyers. LED support may also include improved expert support services and coordination
provided by to firms in such areas as trade show preparedness and sales effectiveness.

C1d. WORKING THROUGH BUSINESS PROMOTION PARTNERS

To provide nationwide coverage and support for new jobs through Lebanon, LED will have two
regional BPPs: BIAT covering Northern Lebanon, selected by Chemonics during its LED proposal,
and Berytech, selected in early 2018 following an open tender, covering Beirut/Mount Lebanon,
Bekaa, and South Lebanon. Between them, they will hire eight business advisors for LED—see the
box below. This will give LED a regional presence without having to stand up a separate office.

DESIRED BUSINESS ADVISOR QUALIFICATIONS

• Business sense and experience. BAs must have hands-on experience in the private sector so that they can
communicate effectively with entrepreneurs and business managers. BAs should understand a businessperson’s point
of view and be able to assess if a business proposition is worth pursuing. They should know what questions to ask
to identify an enterprise’s buyer or end-market, the source of business problems and to develop solutions.

• Analytical skills. BAs must have the capacity to quantify the impact of assistance provided to a client, estimate the
profitability of an activity, and work closely with clients to close transactions.

• Problem-solving ability. BAs must possess a demonstrated capability for effective ad hoc problem solving because
program support will likely run into unexpected obstacles that require fast creative problem solving.

• People skills. One of the most important roles of the business advisor is to bring people together and cultivate
trust along the market chain so that the commercial relationships in question do not require the continuing presence
of the advisor in the future. This is a key element of the buyer-led approach to transaction sustainability.

• Commitment to making the transaction work. Most cases of program support will require persistence and
extra effort from time to time to keep things moving forward. A high level of energy and professional commitment
is essential for a business advisor to achieve sales targets.

• A robust professional network. This is a significant asset for developing new opportunities, evaluating potential
clients, and making the business community aware of program capabilities and services.

• Integrity and trustworthiness. These traits enable the BA to gain the confidence of clients to overcome mistrust
and their reluctance to enter difficult business transactions with potentially high returns on investment.

LED 1st ANNUAL WORK PLAN (REVISED) | 19


During implementation LED will support the BPPs to develop their capacity to support Lebanese
enterprises using LED’s market-led approach. Through frequent hands-on engagement with the
BPP’s management and BAs, the LED team will assist our partners to excel in their duties. LED will
supplement its hands-on support by creating tools and templates, such as the Enterprise Engagement
Toolkit mentioned above, and by organizing periodic all team workshops to share experiences and
lessons learned and discuss how the enterprise engagement process can be improved. In addition,
the LED finance and administration team will support the BPPs on matters related to compliance
with USAID and Chemonics rules and regulations and on subcontract administration matters.

Business promotion partner rationale. The principle of working through local organizations in
the targeted geographic regions is consist with best practice for how a BLA project is organized.
There are several reasons for this. First, working through known and trusted entities in each region
allows LED to trade on the good name of its BPP; this will lend credibility to LED. Second, BPPs will
have an established network of business contacts—they will know the industries/sectors in the
region and the major enterprises driving economic activity there. The BPP will also have connections
with local business service providers and specialists who could be engaged as LED consultants.

Business advisor distribution. Chemonics proposed an equal distribution of two BAs in each
region. However, after considering the different economic opportunities and job creation prospects
in each region, and after taking into consideration USAID’s geographic preferences, LED now plans
to place two BAs in Northern Lebanon through BIAT and six BAs in the other regions through
Berytech. Specifically, three BAs will cover Beirut/Mount Lebanon with one of these located in
Amchit; two BAs will be in Bekaa; and one BA will cover the South. LED hopes to have identified
and secured USAID technical approval for all the BAs by the end of July 2018.

Aligning BPP interests with LED. LED will use incentive payments to help align the interests of
the BPP and their BA/s to those of the project. LED has assigned responsibility for a proportional
share of project targets—based upon the number of BAs working for the BPP—for number of FTE
jobs created. If the BPP reach the targets, LED will pay bonuses to the BPPs who will pay their BAs.

C2. OBJECTIVE 2: IMPROVE LEBANON’S BUSINESS ENABLING ENVIRONMENT (BEE)

LED’s work under Objective 2 will promote policy, legal, regulatory, administrative, budgetary or
institutional reforms for selected business environment problems that will reduce the cost of doing
business, increase new investments, or have other beneficial impacts that will ultimately lead to
impact at the enterprise-level, thereby accelerating sales growth and job creation.

LED may also engage in activities that help to identify or clarify reform targets, including but not
limited to hosting or sponsoring issue-focused dialogue, commissioning studies or assessments, etc.
For example, the planned rapid sector assessment and action planning assignment for the tourism
and hospitality sector will likely uncover promising opportunities in the BEE space that if addressed
would lead to increase enterprise growth and new jobs. Likewise, LED has initiated a discussion with
the Syndicate of Pharmaceutical Industries in Lebanon (SPIL) about preparing a paper that would
provide policymakers with recommendations on how they could support this important local
industry to boost domestic sales and thereby facilitate the creation of hundreds of new jobs.

LED will prioritize reforms where evidence exists that the problem is common to all or most
businesses in a sector or geographic area; where a constraint cuts across sectors or geographic area;
or when an issue has been prioritized for action by a local organization. LED’s targeted reform
priorities may be issues that require action/s by government entities at the national or sub-national
levels or could be issues that relate to private sector or non-governmental “rules” that affect the
business environment such as standards, certifications, qualifications, or other business norms, etc.

Additionally, LED will invest in BEE issues for which there is a high likelihood of success. This
depends upon the existence of three conditions, as shown in the illustration below.

20 | LED 1st ANNUAL WORK PLAN (REVISED)


First, there must be a problem. Second, a solution to
the problem must exist. And lastly, political will by the
approving authority, whether this is a public or private
entity, must be present for them to approve and
implement the reform. (Approval of a reform alone is
insufficient to create impact on the ground. The reform
must be implemented.) If one condition is missing, as
shown in the graphic, there will be no change. We will
consider all three as we prioritize our investment.

1. Is there evidence to support the existence of the


problem and to allow its impact to be qualified and
quantified? What is the economic cost of the
problem? We will be evidence-based.
2. Does a solution exist? Can LED help to create awareness and support for one or to find a
solution where one does not exist? Do we have the time, resources, and space to effect change?
3. Is there political will to adopt and implement the solution? Is there country ownership?

When the answers to these questions are positive, LED will consider how best to intervene. While
the nature of the BEE problem/s will define the specific intervention/s that are needed it is likely that
LED will work through local organizations, such as business associations, syndicates, and/or
chambers of commerce to advance a BEE agenda. Additionally, we expect that LED will work
through the existing institutional architecture rather than try to change it, as might be possible on a
dedicated, long-term policy project. On LED, our interventions will be limited and focused.

C2a. STRATEGY FOR LAUNCHING LED’S BEE WORK

LED will give priority to Objective 1 during the first year. Since employment creation is the main
objective of the project, LED staff will focus on getting this part of the project up and running as
detailed above. Once we sign a growth plan with a client enterprise, as the MEL team is collecting
baseline data, they will also collect information about the key policy issues affecting the business and
industry. The MEL team will maintain this information as a list, an inventory of BEE problems, issues,
or impediments, that they will add to as LED begins working with more client enterprises
throughout the year. The LED BEE reform inventory will capture the following type of information.

• Summary of the problems/issues/impediments


• Description of the harm caused by the issue/s with an estimate of the economic cost if possible
• Details of the affected sector/s—is it sector-specific or does it cut across sectors
• Details of the affected enterprises—does it affect only one enterprise type or impact all firms
• Details of the affected geographic area/s—is it area-specific or does it cut cross areas
• Identification of the main antagonists—the “owner” or source of the problem/s
• Identification of the main protagonists—the individual/s or entities trying to address the problem
• Description of what, if anything, has been done to-date to address the problem

In parallel, as the Director of Business Promotion, Director of MEL, and the LED COP meet key
associations and syndicates, etc. during the first quarter of 2018 to introduce the project, we will
also ask about what these organizations have identified as the key BEE constraints for their sector or
membership and about what reform priorities they have prioritized themselves, e.g. reforms that
they are already championing or that they have decided to address beginning in 2018. These
meetings will be coordinated with USAID in case a representative of the agency wishes to attend
and to provide an opportunity for USAID to advise on the meeting/s, as appropriate.

In addition, we will meet with leaders of private sector focused development projects and other
individuals with a deep understanding of Lebanon’s private sector environment to learn what they
believe are Lebanon’s main BEE challenges. We will also review existing reports, etc.

LED 1st ANNUAL WORK PLAN (REVISED) | 21


These findings will offer a broad perspective from which to evaluate the issues on LED’s BEE reform
inventory and help us to decide which issues LED will address over the life of project.

We expect that the first structured review of the LED BEE reform inventory will before the second
work plan is due when we hope to have enough evidence to inform a thoughtful selection of issues
for attention in Year 2. This is because it will not be until LED is engaging with client enterprises that
BEE issues can be effectively identified in the bottom-up manner that is called for in the contract.

That said, LED’s BEE activities could begin sooner. If LED identifies opportunities to engage earlier
on BEE issues or if issues of extreme urgency and importance emerge during the first year, LED will
quickly examine these opportunities to determine if LED is positioned to take them in collaboration
with others. When LED is positioned to provide an appropriate level of support, we will endeavor
to engage in BEE-related interventions as soon as possible, noting the importance of this work and
recognizing that the impact of BEE activities can sometimes take time before it is felt on the ground.

When selecting BEE issues to be addressed by LED, we will prioritize issues that are common to all
or most businesses in a sector/industry or geographic area; where an identified constraint cuts
across sectors or regions; or when an issue has been prioritized for action by a local organization. In
addition, we will evaluate the prospective BEE reform targets from the perspective of the three
prerequisite conditions outlined above—problem, solution, and political will. Our intent will be to
pick issues where these conditions exist. Lastly, LED will gauge the severity of the problem. Serious
problems that enjoy strong political will, would be ideal candidates for LED support. However, LED
will not rule out providing support for an acute BEE problem that lacks political will if we believe
that because of LED’s support we can help create the will for reform.

In all cases, LED will look to engage on issues that have strong non-government champions—
individuals, organizations, or companies—that are already advocating for the BEE reform. LED’s key
counterparts when addressing BEE problems will be non-government actors, e.g. associations,
syndicates, orders, business organizations, etc., that LED will support and assist to lobby and
advocate for policy reform/s. In doing so, LED will also help to build the analytical, advocacy, and
communications and outreach capacity of these organizations.

Lastly, notwithstanding the process and approach outlined above, given LED’s focus on employment
creation, we will launch a policy (and learning) work stream that will run the life of project and that
will focus on answering the following question/s: What are the best ways to create sustainable
waged-based employment opportunities in Lebanon, and what rules and supporting functions, which
together constitute the enabling environment, must be in place to catalyze and sustain job growth?

C2b. LED APPROACH TO ADDRESSING A BEE ISSUES

Before LED commits itself to addressing any policy issue, the LED COP, with other senior staff as
appropriate, will discuss the issue with the USAID COR. However, for policy issues that LED does
prioritize and chose to address, we will organize our intervention/s to follow the typical steps or
processes of policy reform as outlined below: analysis, public debate and/or consultation, drafting
and/or revisions, approval, implementation (early-stage), and implementation (full and effective).

• Step1: Analysis. The first step that LED will support is analysis of the issue to fully understand
the problem, its scope, scale, and severity, and, when applicable, to estimate the economic cost/s
of the problem and the benefit/s of solving it. We will rely on available data and key informant
interviews as the basis for analysis. The analysis will be as evidence-based as possible given data
limitations. It will be carried out by LED consultant/s or grantee/s as appropriate.

• Step 2: Public debate/consultations. Once the analysis is done, LED will support public
debate or consultations on the issue by affected or potential affected stakeholders. The partner
who analyzed the issue will present his/her findings to stakeholders for validation or refinement.
In addition, these discussions will be critical for identifying and debating possible solution/s and

22 | LED 1st ANNUAL WORK PLAN (REVISED)


for defining advocacy strategies and tactics that are appropriate for the institutional architecture
surrounding the targeted policy issue.

If the issue lacks sufficient political will by the approving authority/body to advance, then LED
interventions would likely remain at this stage until there is enough political will to move the
issue forward to the next stage. During this time, LED will likely support strategic
communications efforts by its local partner/s that are funded by LED’s grant/s.

A possible half-measure between this stage and the next that LED may support is the drafting of
a policy white paper. Production of such a paper could be done through a grant to the leading
local champion organization, e.g. an industry association, etc. Such an action would also qualify as
a strategic communications instrument. In Section C3, we discuss LED’s approach to strategic
communications and outreach in more detail.

• Step 3: Drafting and/or revisions. When an issue enjoys support from the approving
authority, i.e. when political will exists, if requested, LED will assist with drafting the text and
supporting documents for a specific policy reform, e.g. draft policy, draft regulatory reform,
proposed changes to a standard, etc. These drafts, depending on the institutional architecture
surrounding the issue, may need to be reviewed by stakeholders, whose feedback may trigger
revisions to the drafts. Resources permitting, LED could also support these efforts primarily
through grants and led by local business associations.

• Step 4: Approval. When a reform proposal reaches this step, it is unlikely that LED will play
an active role except for possibly supporting local entities to advocate for adoption of the
reform. However, given the possible sensitivities of LED engagement at this level, we will discuss
and agree with USAID the appropriate role for LED before committing any resources.

• Step 5: Implementation (early-stage). If a LED-supported reform is approved, LED will


consider if the entity responsible for implementing it need assistance. The COP, with advice
from other members of the technical team, will consider whether LED has the time, space and
resources to intervene. But, as above, given the possible sensitivities of LED engagement at this
level, we will discuss with USAID the appropriate role for LED before committing resources.

• Step 6: Implementation (full and effective). Once a policy reform reaches this stage, no
further assistance should be required. As such, we do not anticipate that LED will engage at this
level. However, we will track the reform until it reaches this point so that we can report to
USAID the full impact of its assistance, through LED, on the policy reform.

C3. OBJECTIVE 3: COMMUNICATE RESULTS THROUGH OUTREACH AND SHARE


PROJECT KNOWLEDGE WITH THE PUBLIC AND PRIVATE SECTOR

Objective 3 will act as a catalyst, helping to meet the first and second LED objectives. Here we
present a summary of the LED communication and outreach plan for the first-year project. More
information and details are contained in the Communications and Outreach Plan, a contract
deliverable, that was approved by USAID on February 12, 2018.

LED’s communication approach will use best practices for communicating with Lebanese audiences.
LED will communicate project performance, promote its benefits, disseminate successes, challenges,
and achievements to local and foreign audiences, and highlight high-level accomplishments and
impact. Producing and disseminating individual business success stories will drive other firms to
reach out to LED because business owners typically pay more attention to what they see their peers
accomplishing than to advice they receive from outside experts. As such, LED prioritize sharing
success stories with the business community at-large as a way of interesting them in LED to work
the project and in replicating what successful assisted-firms are doing to increase sales and jobs.

LED 1st ANNUAL WORK PLAN (REVISED) | 23


we expect that local media will wish to cover this story. Sustained communication and outreach
activities will follow to accompany and promote the project successes and achievements.

Social media emerged as and continues to be a cultural phenomenon. It is also becoming an effective
channel for businesses to engage their customers and community. Accordingly, LED plans to launch
social media pages on Facebook, LinkedIn and Instagram by June 2018. This page will allow for
greater outreach to and engagement with prospective client firms, stakeholders, and Lebanese
citizens. LED’s Facebook page will contain information about the project (“About”/Page Info), a
timeline for posting events and sharing progress, photos and videos, and interesting information and
articles about business and job creation. The team will update this Facebook page regularly.

C3b. PROJECT COMMUNICATIONS AND OUTREACH FOR OBJECTIVE 2

Overall strategy: LED will advance priority policy, legal, regulatory, administrative, budgetary or
institutional reforms by supporting local “champions”, i.e. individuals, organizations, or companies—
that are already advocating for these reforms or are ready to do so. Accordingly, the team will
support these champions to conduct advocacy and information campaigns that will increase decision
makers’ and the public’s understanding of business-friendly policy reform proposals. Improving
Lebanon’s business enabling environment will require putting pressure on decision-makers to act.

Proposed action: The team will support reform champions to conduct advocacy campaigns to
lobby for the most pressing reforms to alleviate constraints inhibiting firms’ ability to grow and
create jobs, as identified through our firm-level intervention. Depending upon the policy issue, a
combination of mass communication methods and community-based approaches would be beneficial
to yield optimal results. When mass media communications are required, various materials and tools
could be used such as press conferences, televisions and radio appearances, interviews, Facebook,
articles in newspapers and magazines, etc. It is worth noting, however, that media advocacy relies on
the goodwill of media gatekeepers to ensure coverage and provide reliable content to shed light on
important issues and put pressure on decision makers to act. LED will support the abovementioned
actions, as required, through grants to policy champions, as appropriate, or by directly funding some
strategic communications actions. Additionally, as needed, LED will provide technical assistance and
training to strengthen associations’ ability to conduct outreach to constituents, the media, and the
general public on the importance of identifying enabling environment reforms.

C3c. COMMUNICATION AND OUTREACH PROTOCOL WITH USAID

The primary audience for the LED’s internal communications is USAID. The team will provide
regular formal programmatic and financial reporting to USAID. The objective is to communicate
project performance, disseminate successes, and highlight higher level achievements. The team will
also communicate project challenges, proposed solutions, and lessons learned.

To increase the visibility of USAID’s assistance to Lebanon’s economic growth and stability, LED will
identify key events, activities, and results to publicize to external audiences.

A variety of tools and materials will be used for both internal and external project communications,
including but not limited to meetings, weekly updates, quarterly reports, annual reports, success
stories, learning updates, case studies, photos and captions, and videos.

The LED COP will be LED’s primary point of contact for USAID’s COR. Understanding USAID’s
restrictions on movements, the COP will keep the COR informed of project activities through
regular emails, phone calls, and visits to USAID’ office at the U.S. Embassy in Awkar per USAID’s
preferences. If the project needs to liaise with government officials, the COP will first confer with
USAID and plan communications accordingly.

LED 1st ANNUAL WORK PLAN (REVISED) | 25


C3d. BRANDING AND MARKING

In accordance with the contract, as authorized by Automated Directive Systems (ADS) 320, we will
ensure that LED is properly branded to convey the message that “this assistance is from the
American People.” The main message about LED is that USAID/Lebanon seeks to help Lebanese
firms expand their activities and sales, thus creating new jobs and increasing incomes of Lebanese
unemployed youth, thereby contributing to a growing, inclusive economy. LED will also be
positioned as a partnership between USAID and private entities, and all materials will reflect this
partnership. The primary audience includes the private enterprises with which LED will work. The
secondary audience includes other segments of the local community, media, and opinion leaders.

Accordingly, the USAID identity shall be prominently displayed on all commodities or equipment;
audio, visual, or electronic communications; studies, reports, publications, websites, and all
promotional and informational products; and events. Any plans for exceptions to the marketing
requirements such as on communications products such as on documents relating to BEE activities
where marking with the USAID identity might diminish the credibility of the product or undercut
host-country ownership shall be discussed in advance with the COR.

D. RESOURCES AVAILABLE FOR TECHNICAL


IMPLEMENTATION
During Year 1, LED will open and staff its central office in Beirut, which will be in the Qubic Business
Center in Sin el Fil, and will subcontract with local organizations (BIAT and Berytech) to serve as
LED’s regional BPPs and collectively hire eight BAs. These personnel and structures will lead,
manage, and support LED’s technical implementation. In addition to resources necessary to sustain
these core elements of the project, LED has three resource pools from which to draw to fund
program activities: short-term technical specialists (Expatriate/TCN/CCN), subcontracts, and grants.

Short-term technical specialists. Short-term specialists will be used for activities supporting the
three LED objectives, but especially to help client businesses solve specific business problems. The
specific scope of work for these individuals will be identified once LED begins working with client
enterprises and knows what type/s of assistance they required and after prioritizing and selecting the
policy reforms that LED will address, thus being able to determine the nature of the support needed.

Subcontracts. Local, regional, or international subcontractors with specialized expertise will be


hired, as needed, to help client businesses solve specific business problems; research or advance a
policy reform priority; or to develop and implement strategic communications campaigns associated
with policy reforms. All subcontracts will be awarded to respond to specific project needs, which,
like for short-term specialists, will be identified once LED begins engaging with client enterprises and
after prioritizing and selecting the policy reforms that it will address. As noted previously, LED may
award a limited number of Indefinite Quantity Subcontracts (IQS) to a several local BSPs that offer a
range of business services so that these services could be accessed quickly in response to client
firm’s needs. More information about LED’s expected use of subcontractor is presented in the
Subcontractor Management Plan, a contract deliverable that was submitted separately.

Grants. The grants program will be used to support LED’s objectives in two areas. First, it is
envisioned the grants will be used to support associations on employment creation activities. For
example, LED may provide grants a private sector associations or other entities for buyer-
identification activities or to provide export promotion assistance. Second, it is envisioned that
grants will be used to strengthen the capacity of private sector associations to advocate for business-
friendly policies and raise awareness among the public of the importance of a favorable business
regulatory environment. For example, LED may provide grants to private sector associations in
different regions to host periodic regional forums on trade, investment, and sector-specific
impediments to exports/imports, bringing together local businesses, women’s associations,
educational institutions, and influential business associations to build cohesion around a set of

26 | LED 1st ANNUAL WORK PLAN (REVISED)


priority reform issues. All grants will be awarded to respond to specific project needs. More
information about LED’s expected use of grants is presented in the Grants Manual, a contract
deliverable that was submitted separately and approved on February 15, 2018.

E. OTHER CONSIDERATIONS
E1. SUSTAINABILITY

On LED, we will be concerned with two types of sustainability: the durability of the business
relationship between LED-assisted client firms and their buyer/s and the strength of local business
promotion partners and other providers of services to SMEs after LED ends.

First, we will primarily focus on the sustainability of the relationships between LED-assisted client
firms and their buyer/s, since continued and growing sales volumes will be necessary pre-conditions
for enterprises to sustain and grow their labor force. As such, LED will emphasize the need for
Lebanese private enterprises to view any successful deal as a step towards a long-term mutually-
beneficial relationship. Each deal should add to the trust that exists between the firm and its buyer
to hopefully lead to a sustained business relationship that grows with time. Likewise, to the extent
the client enterprise has had to rely more upon its suppliers, the firm must also cultivate these
backwards relationships, which will be crucial for the firm to continue its business. Much like a
personal relationship, the durability of any business relationship depends a lot on trust, which is hard
to earn, but easy to lose; trust must be carefully tended all the time, and never taken for granted.

Second, LED will aim to address the strength of local business promotion partners and other
providers of services to SMEs such that they continue to support SMEs after LED ends. Accordingly,
LED will train, coach and mentor its regional business promotion partners throughout the project
lifespan so that they fully learn the buyer-led approach and can continue to deliver firm-focused
assistance after LED. As a first step, LED expects to partner with European Bank for Reconstruction
and Development’s (EBRD) Advice for Small Businesses (ASB) project, whose objectives and
methodology are similar to LED’s, to implement 1-2 workshops, beginning in September 2018,
targeting local business service providers (local business consultants) following EBRD’s “Grow You
Consulting Business” curriculum. These workshops will help both projects to identify and grow their
local consulting networks, while also building the capacity of these service providers. In addition,
through the project learning component, we will coordinate with client firms to assess the
performance of local business service providers (BSP). Where weaknesses are noted, especially
those that are common to many BSPs, LED will seek to organize trainings or workshops to address
these problems so that BSPs are able to better serve the business community.

E2. SCALABILITY

On LED, we will focus on both short- and long-term scalability of our actions. In the short-term,
LED will seek to broaden our reach and the impact of the BLA methodology through formal and
informal partnerships with local organizations. In addition, we will use well-organized and targeted
outreach and communications to generate interest in the model and promote its adoption. As part
of this, LED will collect, package, and distribute learnings from our experience with BLA in Lebanon.

In the longer-term, LED will be guided by the practitioners’ guide, “Scaling Up—From Vision to
Large-Scale Change 5”, to consider what aspect/s of LED should be scaled, how we will do this, who
will be involved, and where scaling up should occur. This topic will be a focus area of LED’s learning
agenda since it relates closely to LED’s lines of inquiry related to employment creation practices.

5 Management Systems International, 2016. Scaling Up—From Vision to Large-Scale Change: A Management Framework for

Practitioners, Third Edition.

LED 1st ANNUAL WORK PLAN (REVISED) | 27


E3. GENDER INTEGRATION

LED will strive to ensure that Lebanese men and women will equally participate in project activities
and benefit from job creation opportunities. In November 2017, LED conducted a gender analysis to
explore key gender-related needs, issues, opportunities, and constraints that will be addressed by
the project. (The complete gender analysis, a contract deliverable, was finalized in January 2018.) The
analysis included a desk review of existing information on the social and economic conditions of
Lebanese women and was supplemented with in-person interviews of key informants from the public
and private sectors. In the LED work plan, we discuss below the key finding of the gender analysis
and the planned actions for gender integration.

E3a. KEY FINDINGS OF GENDER ANALYSIS

Objective 1: The findings revealed that there are educated, skilled women in Lebanon seeking
work throughout the country. Many women want to enter the formal economy, through a
traditional job or entrepreneurship, but traditional gender roles and the expectation of women to
serve as primary caregivers is a significant constraint facing women seeking to enter the workforce.
This impacts what types of jobs women feel comfortable seeking out, the time and space they have
to devote to paid labor among their competing priorities, and the decision-making power that
women have in deciding to become active members in the economy. This constraint is supplemented
by a lack of safe spaces for working women, which inhibits women from feeling safe commuting to
and from work or, for female entrepreneurs, finding workspaces that they can utilize alone. These
considerations are critical for Objective 1 of LED, as it will be imperative for the project to target
women-owned businesses and businesses that readily hire women. These businesses will be those in
which women are interested in and comfortable seeking out, per the above constraints.

Objective 2: The key constraint facing women, in particular women entrepreneurs and business-
owners, under this objective is access to finance. BLC Bank’s Women Entrepreneurship (WE)
Initiative and an International Finance Corporation (IFC) analysis reported that women own more
than 30 percent of micro and small businesses in Lebanon, but only 3 percent of bank loans go to
female entrepreneurs.1Excessive regulations around bank loans make financing from banks difficult
to obtain, to the point where many female entrepreneurs seek out other ways to finance their
projects, such as loans from family members. This barrier continues to impact the amount of
women-owned businesses in Lebanon.

Objective 3: The key consideration of this component is ensuring that communications and
outreach efforts are tailored to reach female business owners and female job-seekers. While men
and women in Lebanon largely have access to and use the same communications platforms, including
local news outlets, Facebook, and WhatsApp, there are opportunities to further target women and
increase their chances of participation. There are also important MEL considerations captured under
this objective, but which address cross-cutting constraints throughout all objectives of the project.

E3b. PLANNED ACTIONS BY LED OBJECTIVE

Objective 1
• LED will target women-owned and women-employed firms through direct business advisor outreach.
Women-owned businesses are firms that are at least 51% owned, operated, and controlled by
one or more women. Women-employed firms are those in which the conditions and scope of
work of the required jobs are desirable by women in Lebanon, and/or match existing skills of the
female labor force, and therefore naturally attract female employees. While women-owned
businesses are often women-employed, this distinction between women-owned and women-
employed is critical to not overlook male-owned businesses that readily hire women.
• LED will engage local women’s business groups to expand the pipeline of women-owned businesses.
Local organizations such as BIAT, Lebanese League of Women in Business, and BLC Bank’s
Women Entrepreneurship Initiative have large databases of women-owned business and
businesses that readily employ women, especially in areas outside of Beirut.

28 | LED 1st ANNUAL WORK PLAN (REVISED)


• LED may pursue partner opportunities with local vocational training programs for women, to facilitate
connections between expanding businesses and qualified female job-seekers if it proves to be a
high target of opportunity for LED.

Objective 2
• LED will look for and give preference to (all other things being equal) policy issues that face female
entrepreneurs. LED will give extra time and attention to women-owned or women-employed
client enterprises when trying to identify policy issues that may disadvantage women. In addition,
we will carefully analyze all issues included on the LED policy inventory to determine which ones
are the most relevant for women business-owners and/or women in general, whether working
women or women wanting to enter the formal economy.
• LED will ensure that policy issues are analyzed through a gender lens. As the LED team cultivates its
policy reform inventory and prioritizes issues for LED interventions, the LED team, championed
by the project Gender Focal Point (see below) will ensure that prioritized policy issues are
analyzed so that they address the needs of women business-owners and women job seekers.

Objective 3
• LED will tailor outreach efforts to reach women entrepreneurs and job seekers. By accessing networks
of women entrepreneurs and businesses that readily hire women, per the Objective 1
recommendation, business advisors will use these networks to ensure information regarding the
support LED has to offer reaches women-owned and women-employed businesses.
• LED will identify a staff member to serve as the Gender Focal Point, who will be responsible for
understanding the Gender Analysis, monitoring LED’s adoption of recommended actions,
providing gender mainstreaming training to business advisors and other staff, and monitoring and
analyzing any gender-related or gender-disaggregated data in the LED MEL system. Periodically,
the Gender Focal Point will work with the MEL team to organize a learning event aimed at
examining what is working or not working related to LED’s approach to gender integration, or
to embed a gender component into a broader learning event.
• LED will provide gender mainstreaming training to all business advisors. LED will incorporate a gender
mainstreaming component into the BLA orientation for business advisors that will address the
following topics: key gender mainstreaming terms and concepts, such as gender identity, equality
vs. equity, explicit vs. implicit inclusion, the six-domain framework; activity review and design;
review of the LED gender analysis, and identifying next steps.

E3c. ENVIRONMENT

LED is committed to complying with the 22 Code of Federal Regulations (CFR) 216 Environmental
Procedures and USAID’s Automated Directives System (ADS) Parts 201.3.11.2.b and 204. We will
comply with the LED Initial Environmental Examination (IEE), FY17 – FY22.

After reviewing the IEE, LED notes that the following recommended actions have been assigned to
the project objectives: Objective 1—Categorical Exclusion and Negative Determination with
Conditions and for Objectives 2-3—Categorical Exclusion.

Specifically, LED’s transaction support work to identify firms and then diagnose their binding
constraints and develop growth plans for them is recommended for Categorical Exclusion as per 22
CFR 216.2(c) (2) (i) as “education, technical assistance, or training programs”. These activities are
not expected to have any adverse environmental impact.

In cases where LED will be involved in activities such as upgrading production techniques and quality
control systems of businesses in the agriculture, industry, health, tourism, or other related sectors,
these might have an adverse effect on the natural or physical environment depending upon the
nature of the technical assistance provided. Therefore, the activities are recommended for Negative
Determination with Conditions as per 22 CFR 216.2(d)(2).

LED 1st ANNUAL WORK PLAN (REVISED) | 29


initiatives to create jobs, and to firms outside of Lebanon that operate under similar socio-economic
circumstances that might benefit from LED’s experience. led can also organize roundtables and
workshops with stakeholders to disseminate information and finetune the technical notes.

Details of the proposed learning component are included in the MEL plan.

G. OPERATIONS AND FINANCE


G1. ESTABLISHING LED’S OPERATIONS AND FINANCE SYSTEMS

Strong operations and finance systems, policies, and procedures are critical for efficient project
management. LED will have well developed administrative policies and procedures; rigorous
accounting, compliance, and auditing standards; and systems for managing the BDS Fund and Grants
Fund. These back-office systems will be designed and managed to create a service-oriented and
transparent culture to support technical implementation and to provide quality and timely service to
client enterprises, partners, and USAID. Key activities during the first year are to:

• Establish financial accounting and reporting systems to accurately account for project expenditure
and enable reporting on VAT and other matters in accordance with the prime contract. This will
include one on-site short-term support visit from Chemonics’ home office financial accounting
support team (FAST) to ensure all systems are running correctly.
• Develop the LED Field Office Policy and Procedures Manual. The manual will address personnel
policies and procedures, such recruitment policies; employee and consultant hiring and
termination procedures; acceptable and unacceptable behaviors; office hours; timekeeping;
vacation and sick leave; travel procedures, including clearing travel advances and submitting
expense reports; and more.
• Develop the LED Grants Manual. The manual will outline the purpose for grants and the policies
and procedures for awarding grants according to USAID and Chemonics policies.
• Orient LED staff on office policies. LED will ensure that all staff members have been oriented on
safety and security procedures; personnel policies and procedures as outlined above; basic
USAID and U.S. Government federal contracting procurement rules, Chemonics’ procurement
and grants procedures and standards, and Chemonics’ standards of business conduct.
• Administer periodic internal audits to ensure compliance with financial, personnel, procurement, and
inventory control standards. During Year 1, this will be done by the Director of Finance and
Operations, supported by the Deputy Director of Finance and Operations.

G2. PROVIDING EFFECTIVE SUPPORT FOR LED’S TECHNICAL IMPLEMENTATION

The operations and finance team understands its core function as service delivery to the technical
team to enable effective, efficient, compliant, and systematic implementation of the work plan. This
support includes careful and strategic management of project funds; compliant procurement that
fairly encourages Lebanese vendors and businesses to provide goods and services to our activity; and
thoughtful administration and management of long- and short-term personnel that allows LED to
hire and retain highly skilled and dedicated talent. Throughout the year, once the initial systems are
established, the operations and finance team will continue to seek out and encourage smarter, faster,
and fairer ways of doing our work and will be active contributors to LED’s CLA initiative.

G3. SETTING THE STANDARD FOR COMPLIANCE AND ETHICS

The operations and finance team will lead an ongoing and rigorous ethics training program
throughout the year based on the Chemonics Standards of Business Conduct and USAID Integrity
and Fraud Awareness principles. Our internal insistence on zero tolerance and full compliance is
critical to ensuring that we extend these values to our partners, grantees, and ultimately our
beneficiaries. Ensuring that staff comply with policies and procedures is built into the reviews and
approvals functions and authorities of the LED Field Office Policy and Procedures Manual. The
operations and finance team maintains this manual in close collaboration with the Chemonics home

32 | LED 1st ANNUAL WORK PLAN (REVISED)


office and our local legal counsel. The Manual and its amendments are shared with the team and
discussed to ensure understanding of the principles underlying the policies.

G4. CORPORATE LIAISONS

The operations and finance team is in direct and regular contact with the home office and ably
serves as liaisons to ensure the in-country team is informed, trained, and supported. Upgrading
systems and processes in coordination with the home office is a critical and ongoing responsibility of
the team. During the year, the team will liaise regularly with home office specialists in procurement,
finance and accounting, ethics and compliance, and grants, among others, to ensure that LED benefits
from the breadth and depth of technical and functional knowledge Chemonics offers its field office
teams. Regular finance, procurement, and compliance reviews by the home office improve the
operations and finance team’s ability to work, and the recommendations from these corporate
reviews will inform refresher courses and trainings that the operations and finance team will lead.

LED 1st ANNUAL WORK PLAN (REVISED) | 33


DISCLAIMER

This report is made possible with the support of the American People through the United States Agency for
International Development (USAID). The contents of this report are the sole responsibility of Chemonics
International, Inc. and do not necessarily reflect the view of USAID or the United States Government.

LED 1st ANNUAL WORK PLAN (REVISED) | 41

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