Background

Micro, Small and Medium-Scale Enterprises (MSMEs) - which play a very important role in communities, providing services, employment and tax revenues - tend to be disproportionately affected by disasters. They are directly exposed to losses in assets, decreases in demand and stock deterioration when disasters hit. However, there is very little body of knowledge documenting it, as well as the importance of managing disaster recovery and its high returns. A better understanding of the impact of disasters on MSMEs can support policy makers and the private sector to take the right decisions and to undertake the right actions in disaster prone areas to be better prepared, to better respond and recover from natural hazards induced disasters. Although there is a vast literature on the social impact of disasters, most of it remains focused on the impacts on households and individuals and much less has looked at the impacts on small and medium-sized businesses
 
The Global Assessment Report (GAR) for 2013 encourages more research on how public regulation and private investment shape disaster risk, in the context of broader changes in the global political economy. To date, the role of the private sector in disaster risk reduction has been limited primarily to business continuity planning, risk sharing, through insurance and on corporate social responsibility, particularly during emergencies. There has been insufficient discussion and analysis of how private investment is a driver of disaster risk, how the resulting disaster impacts negatively affect not only businesses themselves but also the economies and societies of which they form a part and how the private sector can itself contribute to disaster risk reduction and post-disaster recovery processes.
 
In line with the above and as a leading organization in disaster risk reduction and recovery, UNDP will undertake a specific research on how Micro, Small and Medium-scale Enterprises (MSMEs) are impacted by disasters and can play a role in disaster risk reduction and recovery. The study, which will also comprise a number of country specific case studies, will look at both successes and challenges and will try to draw some general conclusion as to: how MSMEs are impacted by disasters; what institutional, policy and market arrangements can make them more resilient; how MSMEs themselves can contribute to disaster risk reduction and how they can contribute to restore development in a post-disaster situation. The studies will look at both ex-ante conditions and ex-post policies to try and determine what conditions position MSMEs as agents of disaster risk mitigation and recovery.
 
The Disaster Risk Reduction and Recovery Team (DRRRT) within UNDP’s Bureau for Crisis Prevention and Recovery (BCPR) will take a leading role in driving this study in strong collaboration with the UNDP’s Bureau of Development Policy (BDP).
 
UNDP’s BCPR is the practice leader in UNDP and the UN system on prevention, mitigation and prevention of armed conflict and disasters, and related recovery work. BCPR’s Disaster Risk Reduction and Recovery Team (DRRRT) is the responsible Team within BCPR for practice development in DRRR. The goal of the Team is to provide support to UNDP country offices and UN Country Teams in their efforts to strengthen national capacities for disaster risk reduction, preparedness, recovery assessments, programmes and planning. The team provides high quality advice and programmatic support to UNDP country offices for the design, implementation, monitoring and evaluation of DRRR activities.
 
UNDP’s BDP is a group of leading development knowledge entrepreneurs dedicated to empowering UNDP Country Offices and UN Country Teams with knowledge, tools, solutions and resources for critical development challenges, supporting strong development coherence throughout the UN system, and informing and influencing the global policy debate.
 
This assignment covers consultancy services to support the preparation of a Case Study for UNDP’s study on how Micro, Small and Medium-scale Enterprises (MSMEs) are affected by disasters and their role in disaster risk reduction and recovery processes. The Consultant will be responsible for finalizing a country case study, under the coordination of the Lead Consultant.

The Global Assessment Report (GAR) is a major initiative coordinated by the United Nations International Strategy for Disaster Reduction (UNISDR). It contributes to the achievement of the Hyogo Framework for Action (HFA) through monitoring risk patterns and trends and progress in disaster risk reduction and through providing guidance, to governments and non-governmental actors alike, on why and how they can, together, reduce disaster risks.

Duties and Responsibilities

Scope of Work:

The aim of this consultancy is to produce a case study that illustrates the impact of disasters on Micro, Small and Medium-Scale Enterprises (MSMEs) and the role that MSMEs play in disaster risk reduction and recovery by adopting practices that do not increase disaster risk and by reactivating services, economic production, generating employment, etc. in their communities thus promoting speedy and sustainable post-disaster recovery. The case study will provide insights and strategic policy advice on the ex-ante and ex-post conditions and policies determining how MSMEs can act as agents of disaster risk mitigation and recovery in the specific country. This case study will be conducted through literature review and field work, including meeting with key informants.

The specific policy questions that the study will be addressing are:

How are MSMEs impacted by disasters and what are the trends?

Magnitude of the disaster and type of disaster risk (extensive or intensive)

  • Impact of extensive risk on the MSMEs
  • Impact of intensive risk on the MSMEs?

When MSMEs are impacted by disasters:

  • Do they absorb infrastructure damages and economic losses and return to normalcy?
  • Do they drag the economic losses but return to normalcy?
  • Are they not able to return to normalcy and close down?
  • How do MSMEs evolve before and after the disaster?
  • Do disasters become an opportunity for MSMEs to strengthen themselves and expand or there is a trend to be absorbed by bigger businesses?

What policies or institutional arrangements can be classified as “best practices” in protecting MSMEs during times of shocks?

Why MSMEs are affected at different levels?  

What are some of the determinants (both exogenous and endogenous) of the extent to which SMEs are impacted by disasters:

  • Exogenous: Are there legal frameworks and or public policies that reduce or minimize the affectation of disasters on MSMEs? (i.e. preventive land use planning codes, protecting mechanisms, alternatives for connectivity etc).
  • Endogenous: Is there any difference in the level of affectation related with the sector, size, infrastructure or goods involved, formal/informality, corporations, insurance coverage, etc.?

What is the role of MSMEs in disaster recovery?

  • What role do they play for the reactivation of the economy of the community/society?
  • To what extent does the government’s response to disasters determine the recovery of MSMEs?
  • Do MSMEs create secondary risk in their community? What practices should MSMEs adopt to ensure that they do not increase the risks in their community? And how can MSMEs be induced to do so? Through what policies and incentives?
  • Are there any particular models that are beneficial or detrimental to MSMEs recovery?
  • How can MSMEs become positive agents for the recovery of communities?
Specifically, the Consultant will undertake the following tasks through literature review, field work and key informant interviews as needed: 

Characterize the Micro, Small and Medium Enterprises (MSMEs) sector in Nigeria  including information for the last 7 years on:

  • Description of MSMEs sector (by number of employees, by annual turnover, by productive sector, by geographical location, including all that apply and by gender disaggregated data – where/if available);
  • Share of MSMEs output as percentage of total GDP and of sector output;
  • Share of MSMEs employment as percentage of total employment and of sector employment;
  • Share of MSMEs contribution to government’s revenues.

Characterize the informal sector (if/where relevant) in the country and its incidence in MSMEs’ operations, including information on:

  • Percentage of informal employment in total employment, in MSMEs employment and by SME sectors – including gender disaggregated data – where/if available;
  • Percentage of unregistered firms (informal MSMEs) in the MSMEs sector and in the private sector as a whole – possibly detailing the sector of operations of the MSMEs;
  • Percentage of women’s headed MSMEs – differencing the sector of operations;
  • Geographical location/concentration of informal MSMEs’ activity or formal MSMEs’ activity in unregulated or potentially hazardous locations (e.g. urban informal settlements are likely to include many home-based informal shops, identification of micro-industries operating in wetlands, etc.);

Identify disasters affecting Nigeria in the last 7 years and analyze their immediate and long-term impact on MSMEs (3-5 years), including:

  • History of disasters - including number and type of disasters, distinction between extensive and intensive risk, affected areas, life losses, direct economic losses and potential/actual long-term impact of the disasters in the affected areas;
  • disaster risk reduction and recovery policies and/or strategies in place at national/institutional level(legislative framework; early warning systems, participatory land planning, insurance and risk-transfer mechanisms, business associations with mutual support mechanisms or disaster reduction initiatives, and corporate social responsibility), particularly those with relevance for to the private sector and MSMEs if explicit and measures put in place by the private sector itself;
  • Government’s response to MSMEs, including that of institutions in charge of disaster risk reduction and recovery, and specific initiatives put in place in the post-disaster phase to enhance recovery of affected areas;
  • Impact of disasters on the MSMEs sector (when possible differentiating the impact on formal/informal MSMEs) and highlighting the consequences of disasters on MSMEs fabric (ex: whether they continue to operate, whether they close down, relocations, the characteristics of MSMESs continuing to operate after a disaster or closing down etc.); Impact of the disasters on MSMEs that have or have not adopted mitigation and risk-management mechanisms (e.g. insurance, business continuity plans) and MSMEs in risk-prone locations vs. those in other locations. Impact will be measured with indicators such as number of MSMEs, output and employment variations between pre and post-disaster contexts, revenue changes, MSMEs birth and survival rates, and other indicators of entrepreneurial activity[5].

Examples of successful recovery experiences [6] where the MSMEs had a role as agent in the economic revitalization of their community during the recovery process, as well as others where the government and/or private sector had contributed to effective recovery of MSMEs , including:

  • What role do they play for the reactivation of the economy of the community/society?
  • To what extent does the government’s response to disasters determine the recovery of MSMEs?
  • Do MSMEs create secondary risk in their community? What practices should MSMEs adopt to ensure that they do not increase the risks in their community? And how can MSMEs be induced to do so? Through what policies and incentives?
  • Are there any particular models that are beneficial or detrimental to MSMEs recovery?
  • How can MSMEs become positive agents for the recovery of communities?

Main Expected Outputs and Deliverables

  • Outputs #0: Annotated Outline of the report structure, identifying the main elements of the case study (disasters to be analyzed, geographical areas, main industries/sectors involved, expected importance of the informal sector, issues to be discussed regarding exogenous and endogenous variables, institutional and economic elements to be discussed and potential institutions and programs to be included in the analysis). Target due date: 11th November 2012.
    Outputs #1&2:Characterization of MSMEs and Informal sector. Target due date: 16th November 2012
  • Outputs #3: Analysis of disasters’ impact. Target due date: 30th November 2012
  • Outputs #4: Additional analysis of particular programs. Target due date: 10th December 2012
  • Outputs #1,2,3,4: Final Document with comments from Lead consultant, UNDP Country Office focal point and BCPR and BDP Incorporated. Target due date: 17th December 2012

Institutional Arrangement

The Consultant will operate under the overall guidance of the Lead Consultant, both the DRRRT Recovery Advisor and BDP focal point at Head Quarters and – as necessary - the UNDP Country Office focal point.

The progress of the work will be monitored by the Lead Consultant and the UNDP CO focal point. The work will be subject to final approval from the DRRRT Recovery Advisor and the BDP focal point. The Lead Consultant will coordinate, provide inputs on conceptual framework and potential indicators, and review and provide feedback during production of each of the deliverables/services progressively.

The Consultant will interact with officials from the UNDP country office, the UNDP’s Regional Disaster Advisors and other national stakeholders (business associations, government, and academia) if/when required.

The Consultant is expected to cover all logistical support and necessary facilities to perform his/her tasks.

Duration of the Work:

The consultant is expected to perform this task during the period as mentioned above. The urgency in the commencement of this consultancy is given by the amount and high-quality work to be completed against very tight deadlines.

Scope of Price Proposal and Schedule of Payments:

The applicants to this consultancy are required to submit a financial proposal together with their expression of interest. The financial proposal will consist of an “all inclusive” fee that indicates the total consultancy fee for the full preparation and completion of the product. The payment is subject to delivery of the agreed product/s as approved by the Supervisors and payments will be made in one installment at the end of the consultancy. The payment will be based only upon the certification and acceptance of the outputs by the relevant approval officer as stated in above section.

Recommended Presentation of Offer:

The following minimum documents will be required when submitting an offer:

  • Letter of interest using the template provided by UNDP;
  • Personal CV or P11, indicating all past experience from similar projects, as well as the contact details (email and telephone number) of the Candidate and at least three (3) professional references;
  • Brief description of why the Candidate considers him/herself as the most suitable for the assignment;
  • “All inclusive” consultancy fee

Criteria for Selection of the Best Offer

The following main criteria will serve as basis for evaluating offers:

  • Extensive experience in development issues – particularly on the role of private sector in promoting development and on disaster risk reduction and recovery (25 maximum score);
  • Experience in working on (and managing) processes where timelines are established and coordination with practitioners and partners are required for the stipulated products/goals (25 maximum score);
  • Experience in conducting research and/or analytical studies (25 maximum score);
  • Past relevant experience with well-recognized International Organisations and/or Research Institutes (15 maximum score);
  • Master degree or equivalent in Sociology, Economics, Public Policy, Political Science, Development Studies, or equivalent;(10 maximum score).

The selection panel will evaluate the candidates against the above criteria and the candidate with highest score will be selected (maximum score is 100).

Extensive Risk: the widespread risk associated with the exposure of dispersed populations to repeated or persistent hazard conditions of low or moderate intensity, often of a highly localized nature, which can lead to debilitating cumulative disaster impacts. Extensive risk is mainly a characteristic of rural areas and urban margins where communities are exposed to, and vulnerable to, recurring localised floods, landslides storms or drought. Extensive risk is often associated with poverty, urbanization and environmental degradation (UN ISDR definition).

 Intensive Risk: the risk associated with the exposure of large concentrations of people and economic activities to intense hazard events, which can lead to potentially catastrophic disaster impacts involving high mortality and asset loss. Intensive risk is mainly a characteristic of large cities or densely populated areas that are not only exposed to intense hazards such as strong earthquakes, active volcanoes, heavy floods, tsunamis, or major storms but also have high levels of vulnerability to these hazards (UN ISDR definition).

Definition of these indicators will depend on availability of data and the relevance of the indicator in the particular, and will be agreed with the Lead Consultant, the UNDP Country Office focal point and the BCPR team.

To be defined with the Lead Consultant and the BCPR team

Competencies

Corporate Competencies:
  • Demonstrates integrity by modeling the UN’s values and ethical standards (human rights, peace, understanding between peoples and nations, tolerance, integrity, respect, results orientation (UNDP core ethics) impartiality;
  • Promotes the vision, mission, and strategic goals of UNDP;
  • Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability.
Functional Competencies:
  • Consistently approaches work with energy and a positive, constructive attitude;
  • Demonstrates good oral and written communication skills;
  • Meeting timelines and demonstrate ability to work harder;
  • Demonstrate fruitful consultation skills;
  • Demonstrates openness to ideas, feedback, inputs and comments.
Knowledge Management and Learning:
  • Promotes a knowledge sharing and learning culture in the office;
  • In-depth knowledge on parliament/policy issues;
  • Ability to advocate and provide policy advice;
  • Actively works towards continuing personal learning and development in one or more Practice Areas, acts on learning plan and applies newly acquired skills.
  • Development and Operational Effectiveness:
  • Ability to lead strategic planning, results-based management and reporting;
  • Ability to lead formulation, implementation, monitoring and evaluation of development;
  • Programmes and projects, mobilize resources;
  • Good knowledge of the Results Management Guide and Toolkit;
  • Strong IT skills;
  • Ability to lead implementation of new systems (business side), and affect staff behavioral/attitudinal change.
Management and Leadership:
  • Focuses on impact and result for the client and responds positively to feedback;
  • Leads teams effectively and shows conflict resolution skills;
  • Consistently approaches work with energy and a positive, constructive attitude;
  • Demonstrates strong oral and written communication skills;
  • Builds strong relationships with clients and external actors;
  • Remains calm, in control and good humored even under pressure;
  • Demonstrates openness to change and ability to manage complexities.

Required Skills and Experience

Education:

  • Master degree or equivalent in Sociology, Economics, Public Policy, Political Science, Development Studies, or equivalent.

Experience:

  • At least 5 years of relevant working experience in the area of private sector development – ideally with focus on MSMEs, disaster risk reduction, and/or public policy;
  • Experience with research and/or preparation of policy documents;
  • Ability to work under pressure and to meet tight deadlines.

Language:

  • Fluency in English (speaking and writing).