Venezuelan biodiversity firms strengthen business plans

The Andean Development Corporation (CAF), the new Ventures Program of the World Resources Institute (WRI), and the Biotrade Initiative of the United Nations Conference on Trade and Development (UNCTAD) today opened in Caracas the Business Plan Strengthening Workshop for the six Venezuelan firms selected to participate in the Investors Forum for Biodiversity Businesses in the Andean-Amazonian region to take place in May 2004 in Lima, Peru.

CAF Sustainable Development Director María Teresa Szauer said that these companies were selected in a first round on the basis of their efforts to conserve and use biodiversity in a sustainable way, and because of their innovative business models aimed at generating economic development and jobs in the regions where they do business.

These companies operate in sectors related to the sustainable use of biodiversity, including organic agriculture, wildlife, medicinal plants, and natural ingredients for the pharmaceutical, cosmetic and food industries. The Andean Development Corporation (CAF), the new Ventures Program of the World Resources Institute (WRI), and the Biotrade Initiative of the United Nations Conference on Trade and Development (UNCTAD) today opened in Caracas the Business Plan Strengthening Workshop for the six Venezuelan firms selected to participate in the Investors Forum for Biodiversity Businesses in the Andean-Amazonian region to take place in May 2004 in Lima, Peru.

CAF Sustainable Development Director María Teresa Szauer said that these companies were selected in a first round on the basis of their efforts to conserve and use biodiversity in a sustainable way, and because of their innovative business models aimed at generating economic development and jobs in the regions where they do business.

These companies operate in sectors related to the sustainable use of biodiversity, including organic agriculture, wildlife, medicinal plants, and natural ingredients for the pharmaceutical, cosmetic and food industries.

In the workshop, talks were given by Gustavo Adolfo Núñez, expert on the business area; María Henrika Caraballo, on the legal aspects of biodiversity; and Patricia Londoño, regional coordinator of the Investors Forum.

Doing business the sustainable way

The Investors Forum to be held in Lima has been programmed to promote a new way of doing business that favors the sustainable conservation or management of biodiversity, for the direct benefit of communities. The Forum is sponsored by the Peruvian National Biodiversity Fund (PROFONANPE).

The programming of the Forum takes into account the fact that the national biotrade programs in the Andean countries and the Bolsa Amazonia program in Brazil are leading the support for a group of businesses interested in presenting their business plans in the Forum, in which small- and medium-sized enterprises (SMEs) from the Andean countries and the Amazon region of Brazil will take part.

As is well known, the small producers and SMEs that work with biodiversity-related goods and services frequently face difficulties in attracting long-term finance. These obstacles are even greater for companies that need finance through loans or capital investment, as well as the problems involved in feasibility studies, purchase of machinery and equipment, processing of patents and legal rights, development of new products, expansion of production, restructuring to more sustainable processes, and generation of higher value-added.

Although initiatives to facilitate access to financing for biodiversity companies have already been created, experience shows that most SMEs do not participate in these programs because of the low amount of capital they require, the type of products they manage, or their business structure. Also, many businesses lack the managerial capacity needed to introduce their products into new markets, develop strategic alliances and expand their businesses without affecting their environmental and social commitment.

In the past, the investors´ forums held by New Ventures focused on environmental SMEs in general and did not require the link with biodiversity and communities. Inspired by the winning companies in these forums in previous years, which have successfully developed "new forms of business" that protect the interests of communities and promote conservation of biodiversity, the organizers adapted their model to the sector of sustainable use of biodiversity.

In the workshop, talks were given by Gustavo Adolfo Núñez, expert on the business area; María Henrika Caraballo, on the legal aspects of biodiversity; and Patricia Londoño, regional coordinator of the Investors Forum.

Doing business the sustainable way

The Investors Forum to be held in Lima has been programmed to promote a new way of doing business that favors the sustainable conservation or management of biodiversity, for the direct benefit of communities. The Forum is sponsored by the Peruvian National Biodiversity Fund (PROFONANPE).

The programming of the Forum takes into account the fact that the national biotrade programs in the Andean countries and the Bolsa Amazonia program in Brazil are leading the support for a group of businesses interested in presenting their business plans in the Forum, in which small- and medium-sized enterprises (SMEs) from the Andean countries and the Amazon region of Brazil will take part.

As is well known, the small producers and SMEs that work with biodiversity-related goods and services frequently face difficulties in attracting long-term finance. These obstacles are even greater for companies that need finance through loans or capital investment, as well as the problems involved in feasibility studies, purchase of machinery and equipment, processing of patents and legal rights, development of new products, expansion of production, restructuring to more sustainable processes, and generation of higher value-added.

Although initiatives to facilitate access to financing for biodiversity companies have already been created, experience shows that most SMEs do not participate in these programs because of the low amount of capital they require, the type of products they manage, or their business structure. Also, many businesses lack the managerial capacity needed to introduce their products into new markets, develop strategic alliances and expand their businesses without affecting their environmental and social commitment.

In the past, the investors´ forums held by New Ventures focused on environmental SMEs in general and did not require the link with biodiversity and communities. Inspired by the winning companies in these forums in previous years, which have successfully developed "new forms of business" that protect the interests of communities and promote conservation of biodiversity, the organizers adapted their model to the sector of sustainable use of biodiversity.