Call for Proposals – Implementation Agreement for the Provision of Technical and Financial support for SSE entities in Lebanon

In the face of Lebanon’s multiples crises, increased vulnerabilities, and unemployment among vulnerable groups, and in the absence of a government and recovery policies, a significant number of informal social and solidarity economy (SSE) initiatives, have emerged to respond to a wide range of urgent needs. These are mainly related but not limited to food security, provision of basic, medical, and social services, provision of renewable energy to address the high cost of electricity in the country and reduce dependency on diesel generators, and waste management to address the garbage crisis.

In 2020, the ILO supported selected SSE initiatives in the agriculture and agri-food sector to tackle unemployment and address one of the most pressing needs in the country, food security. A set of activities were designed and implemented to support SSE initiatives in the agriculture and agri-food sectors in selected villages in Akkar and North-Lebanon, while working with local committees in these villages. In parallel, support was extended to the newly established SSE initiatives through training and coaching on social entrepreneurship, business group formation and financial assistance. Outcomes of the intervention show that this model of community-driven SSE initiatives has proven to be successful where 8 SSE entities continue working in agriculture, generating profits, and serving local community needs.

Building on that model, the ILO rolled-out in 2022 a social entrepreneurship programme “EMDAD” in Lebanon in sectors with high potential of sustainable and decent job creation for Lebanese host communities and Syrian refugees and short-term response to local socio-economic needs. The programme targeted 17 new and existing social and solidarity economy (SSE) entities throughout a 6-month incubation program. The incubation included financial, technical and community support, in which the 17 SSE entities received grants in the total value of 319K (up to $20,000 per entity), tailored coaching sessions based on their needs, and opportunities to network with local communities and stakeholders during offline and online events. The programme supported direct job creation and retention for 194 Lebanese and Syrian workers, indirectly impacting 1123 jobs ( 46% refugees), as well as addressing important cross-cutting issues related to: a) enhancing inter- and intra- community social cohesion, b) creating and/or strengthening green social enterprises and green jobs, c) boosting women’s economic participation (45% females, and d) empowering people with disability.

Objective

ILO is looking for a local business development service (BDS) provider with experience designing and managing SSE programmes in Lebanon targeting enterprises with high growth potential and who can elevate their social, environmental and economic impact.

Scope of Work

Accordingly, the Implementing Partner (IP) is expected to undertake the following to achieve the program objectives:

• Call for applications from interested SSE entities that have the potential and are looking to expand and grow their operations.
• Conduct an in-depth capacity/needs assessment of the interested SSE enterprises to assess their needs and growth gaps (technical and financial) including governance issues, decent work deficits and gaps in realizing their intended social impact. Based on the assessment, the IP, in close consultation with ILO PROPSECTS team, will select between 10 to 15 SSE entities with highest growth potential and social/environmental/community impact.

Based on the selection, a capacity development work plan should be developed for each SSE individually with a clear growth trajectory over a set time frame, risk assumptions and required investment injection.  The latter should be linked to a clear set of measurement indicators and milestones to be achieved over the course of the technical assistance program. 

• Develop, jointly with the ILO technical team, the impact measurement framework for the entire program in line with the ILO guidelines on cooperative and SSE statistics, based on SSE sectors and thematic interventions. The framework should entail social, economic, and environmental indicators that should be established/monitored and updated regularly by the targeted SEs.
• Capacity Development: Coach/train the SSE entities individually and collectively for networking and collective learning. The capacity development programme should encompass topics such as human resource growth, asset/liability management, projected revenues and corresponding financial statements/ratios in addition to the agreed-upon social/economic/environmental indicators progress measurement; Additionally, the coaching will engage the board of the SSE ensuring good governance and transparency/collective decision-making process.
• Design and kick off, in close consultation with ILO PROSPECTS team, a sustainable and SSE responsive loan product tailored to the needs, structures, and mission-driven nature of the selected entities.
• Fund leverage and disbursement: ILO will allocate between USD 250,000 – USD 350,000 to the implementing partner to provide subsidized loans exclusively on a revolving basis to SSEs with growth potential, and it expects the partner to match these funds with at least equal amount (1:1 ratio) in lending to reach a loan portfolio capital in the range of 500 to 700K.
• Organize outside-country study tour/s for selected social entrepreneurs to learn from other well-established social enterprises, gain international experience and create linkages and network among ILO’s SSE graduates and others.
• Follow-up, documentation, communication, M&E and reporting.

Required Qualifications

Prerequisite for selection: A registered non-profit organization/entity in Lebanon that can provide a contribution that matches ILO’s requirement for earmarking fund for loans to SSEs at a leverage rate of 1:1 (a contribution from each organization at an amount that range between USD 250,000 and USD 350,000).

Eligibility Criteria:

• A Lebanese based registered NGO with proven experience in designing, implementing, and managing SSE programmes in Lebanon targeting larger Social and Solidarity Economy entities seeking to grow their operations.
• Proven experience in loan product design and management for larger enterprises coupled with close monitoring.
• A qualified pool of national experts in SSE support, international labour standards, business planning and financial management, governance, HR and risk management with a strong training/coaching experience for SSEs and accompanying them through their growth plans. A team matrix table along with their CVs should be provided,
• Senior team leader with minimum 10 years of professional experience including rigorous experience in project management and social and solidarity economy, knowledge of financial tools, along with strong communication skills.
• Knowledge of the local Lebanese context, culture and language.
• Previous experience or partnerships with UN agencies and INGOs is an advantage.