LGU BUSINESS

PLAN:

A TOOL FOR OPENING

INVESTMENT OPPORTUNITIES
Ms. Virginia S. Clavel
DILG
September 9, 2015
Crown Regency Resort and
www.google.com.ph
Convention Center
Malay, Aklan
DILG PROGRAM FRAMEWORK

Societal
Poverty in multiple dimensions reduced and
Outcome massive quality employment created
Human
KRAs/
Development and Security, Climate Change Good
Sector Economic
Poverty Justice and Adaptation and Governance and
Outcomes Development
Reduction Peace Mitigation Anti-corruption

Environment-Protective,
Business-Friendly and Competitive
Climate Change Adaptive and Disaster
LGUs
Resilient LGUs
DILG State of Local Governance improved
Outcome
Areas Accountable,
Socially-Protective and Safe LGUs Transparent, Participative and
Effective Local Governance
INTERNAL GOVERNANCE

MFO LG Capacity Development, Performance Oversight and Awards/Incentives

PPAs DILG Programs/Projects/Activities (from Locally-funded and Regular funds)

Components of
Business-Friendly and Competitive LGUs
Enabling
Enabling Supporting Facilitating Access
Simplification of
Environmentfor
Environment for Workforce to Local
Regulatory
BFCL (AIM-BIZ)
BFCL (AIM-BIZ)) Development Infrastructure
System
Capacitating
LEIPO/LEDIP Team Streamlining
BPLS PRMF

Training for
Automating BPLS Better Access
(e-BPLS) to Job SLRF
Investment Code &
Opportunities
Local Revenue Code
(TraBAJO)
Streamlining
Building local Building
Information (SparkBiz) Permit/Occupancya KALSADA
nd others
Performance
Measurement
NCC & PCCI
BUSINESS-FRIENDLINESS
AND COMPETITIVENESS
This is a condition where LGUs spur sustainable economic and
inclusive growth by engaging the business sector in promoting local
trade/business and generating employment.

PROGRAM OBJECTIVES

Improve capacity of LGUs in engaging business sector, promoting

local trade / businesses and generating employment following reforms
in their business environment

Enhance LGU competitiveness towards increasing sustainable growth

and ensuring that growth is inclusive
Local Economic Development
defined…
 Local Economic Development (LED) involves added micro-
economic measures at the local level to complement macro-
economic measures at the national level. LED encompasses a
range of disciplines including physical planning, economics and
marketing, all with the goal of building up the economic
capacity of a local area to improve its economic future and the
quality of life for all (ILO)

 Local Economic Development (LED) offers local government,

the private sector, the civil society and the local community the
opportunity to work together to improve the local economy. It
aims to enhance competitiveness and thus encourage
sustainable growth that is inclusive. (WB)
 RATIONALE

Creating LGU mindset to a business friendly

and enabling environment enabled to
contribute for a sustainable economic and
inclusive growth

Improving LGU capacity to enhance

economic
situation through attracting more
businesses and
investment to generate job and bring
opportunities for livelihood
 Strengthening LGU capability by engaging
business or private sector in developing local
economy

Developing and improving LGU

structure, policies, programs to
boost business potential and
economic growth
tool that LGU can use to help itself identify critical
investments and business opportunities available in
the locality and maximize resources in pushing
forward economic activities.

guide for investors to

locate their investments that
will increase economic opportunity
and create jobs.
 USES
 Marketing Tool: to convince investors and business
to locate their ventures in the
Locality

 Management Tool: to operationalize the local

economic development strategic direction and
monitor performance

 Communication Tool: to engage

the whole LGU to rally stakeholders towards the
achievement of their shared aspiration and elicit
support from investors, partners, creditors and
shareholders for local economic development
NATIONAL POLICIES SUPPORTING THE
FORMULATION OF LGU BUSINESS PLAN
 ORGANIZING FOR LGU BUSINESS
PLANNING
1. Identify stakeholders that will be represented in
the LEDIP Business Planning Team.
 LGU Focal Person = LEIPO
 Stakeholders
2. Build awareness and commitment.
3. Legitimize a LEDIP Business Planning Team
through an Executive Order and/or Resolution.
4. The LEDIP Business Planning Team should agree on
and commit to the business planning processes,
group culture, key activities, timelines and key
milestones for the full completion of a business
plan for the LGU.
5. Identify and address capacity building
requirements of the Team.
IMPORTANCE/CONTRIBUTION of
ENABLING plans and policies in the
formulation of business plan
 CLUP AND DRRM PLAN
PROTECTED AREAS
•NIPAS, Non-NIPAS, Protected
Agricultural, Environmentally
Constrained, heritage sites
LIFE SUPPORT SYSTEM

SETTLEMENT AREAS
•Urban (Town Centers)
•Rural (Upland, lowland, coastal)
•IP settlements
SPACE FOR LIVING
INFRASTRUCTURE AREAS
•Transport Network
•Social & economic infrastructures
•Administrative support
EXCHANGE
SPACE PRODUCTION AREAS
•Agricultural (Croplands, Livestock,
Poultry, Fishery)
•Industrial & Commercial
SPACE FOR MAKING A •Tourism
LIVING •Mining
COMPREHENSIVE DEVELOPMENT PLAN
Power to create
source of revenue Incentives in the form
of fiscal or non fiscal
measures

Regulatory role on
tourism concerns

Fastest delivery of business

permit and license to
operate
 SPARK Steps
 SCAN: Assessment of the readiness for investment
and job creation and organization of the LED
Team
 PLAN: Preparation of the LGU Business Plan for
investment and job creation
 ACT: Implementation of the LGU Business Plan
 REVIEW: Assessment and reporting of outcomes
of the LGU Business Plan to the stakeholders
 KNOW: Managing the results of the Business Plan
 1. SCAN

Key Key Activities Value Proposition Partnerships Clients/Beneficiaries

Implementing
Partners

5. KNOW Desribe the key Describe how you plan to 2. PLAN

activities that LGU establish and manage the
Lists of Key must do for the clients Describe the LGU relationship between the Describe the target
partners to projects to address clients and your projects clients or beneficiaries
perform the the need and problem
activities or Key Resources of the target clients Delivery Methods
provide
resources Identify the resources Describe 1) how you plan
that allow the LGU to to reach you clients, 2)
offer or reach the how you plan to
clients or establish or communicate with your
maintain relationships clients or beneficiaries

Budget Key Results

Describe the cost needed to perform the activities, and provide the List the key benefits that the LGU will derive from
4. REVIEW resources implementting or delivering the projects
3. ACT

BUSINESS MODEL CANVAS

P-1: LGU Business Plan Template

Requirements Description / Details

LGU Name: City /
Province / Municipality
Contacts Name LCE and LEIPO
Position
Email
Phone
Local Economy and LGU Describe the
Business-Friendliness • Economic Profile
Profile • Key Economic Sectors
• LGU Business-friendliness Profile
Show results of
• Problem Tree Analysis
• Objective Tree Analysis
• SWOT Analysis
Vision and Mission Describe the LED vision and mission formulated from the LGU plans
and aligned with the business plan
Project Description Value Proposition: Describe the LGU programs or projects to address
the needs and problem of the target clients
P-2: LGU Business Plan Template
Requirements Description / Details
Key Results List the key benefits that the LGU will derive from implementing or
delivering the project
Target Clients / Describe your target clients and beneficiaries
Beneficiaries
Delivery Methods Describe: a) how you plan to reach your clients, and b) how do you
plan to communicate with your clients and beneficiaries
Key Activities Describe the key action activities that LGU must do for their clients,
could be in terms of work breakdown structure and implementation
work plan
Key Partners List the key partners to perform the activities or provide the resources

Describe how you plan to establish and manage the relationships

between clients and your projects

Budget / Sources Describe the cost needed to perform the activities and provide the
resources
Monitoring and Evaluation Present the monitoring and evaluation framework and systems of
tracking and communicating the results
IMPACT OF LGU BUSINESS PLAN TO
LGUs….....
Maximize the use of
resources

Promote the natural

beauty or products of the
locality/tourist
destination areas

Increase number of
investors/private sectors in
the locality
 Create new development through establishment
of small, medium or large enterprises

Increase tax collection

through presence of more
businesses build in the
locality

open the gate for employment

opportunities
 More programs and projects development in
the community through collaboration with
private/business sector

Sufficient provision of
basic services to the
community

Create a happy
community; a “happy
Juan and Juana”
WHAT WE can DO.....
….AS LGU POLICY MAKERS ON
THE FORMULATION OF
BUSINESS PLAN
 Adopt measures that can create a business
friendly and competitive LGUs such as
designating a permanent LEIPO, creation of
LEDIP team and investment board, adopting e-
BPLS automation, establishment of one-stop-
shop and others
 Approve enabling policies that will strengthen
the business economic opportunities in the
locality such as Local Investment and Incentive
Code (LIIC), Local Revenue Code (LRC), Local
Tourism Code (LTC), Environmental Code and
others
 Ensure that there is an approved CDP, CLUP
and DRRMP
ROLEs OF LGU POLICY MAKERS
ON THE FORMULATION OF
BUSINESS PLAN
 Enact policies or regulations on the
formulation and implementation of
business plan and related laws
 Approved funds for conduct of activities
on the implementation of LGU Business
Plan
 Assist the LEIPO in searching any
business economic opportunities for the
locality.
 Attend forum/meetings related to
investment promotion/opportunities
LGU PARTICIPANTS ON THE TRAINING
ON THE FORMULATION OF BUSINESS
PLAN
 SB on Economic Affairs or related Committee
 LEIPO/Investment Officer
 LPDC
 Business Permit and Licensing Officer
 Tourism Officer
 Agriculture Officer
 Private Sector