Role of social enterprises in agricultural and rural community development in myanmar challenges and opportunities

VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY PHYO THIHA HTUN ROLE OF SOCIAL ENTERPRISES IN AGRICULTURAL AND RURAL COMMUNITY DEVELOPMENT IN MYANMAR: CHALLENGES AND OPPORTUNITIES MASTER'S THESIS VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY PHYO THIHA HTUN ROLE OF SOCIAL ENTERPRISES IN AGRICULTURAL AND RURAL COMMUNITY DEVELOPMENT IN MYANMAR: CHALLENGES AND OPPORTUNITIES MAJOR: PUBLIC POLICY CODE: 8340402.01 RESEARCH SUPERVISOR: Dr TRUONG THI THU TRANG Hanoi, 2023 STATEMENT OF COMMITTMENT I sincerely assure that the result of this study are solely my own and not contravene the regulations established to prevent plagiarism in academic and scientific research endeavors at Vietnam Japan University This study is submitted as a fulfillment of the requirements for the master's degree in Public Policy, with utmost personal integrity and in accordance with the guidelines set forth in Decision No 700/QĐ-ĐHVN, issued by the Rector of Vietnam Japan University on September 30, 2021 Signature Phyo Thiha Htun Date: June, 2023 ACKNOWLEDGE I would like to acknowledge the various individuals who provided invaluable support, without whom this study would not have been possible I am truly grateful to those who assisted and aided me in multiple ways throughout the completion of this thesis First and foremost, I would like to express my heartfelt appreciation to my supervisor, Dr Truong Thi Thu Trang, for her invaluable suggestions, guidance, and supervision I also want to extend my special thanks to Dr Nguyen Thuy Anh, the Program Director, and all the professors who provided encouragement, insightful comments, and inspiration during my two-year master's degree program Furthermore, I am grateful to the Japan ASEAN Integration Fund (JAIF) organization for granting me a full scholarship, as well as to my Master of Public Policy family and classmates for their continuous support during my time at Vietnam-Japan University (VJU) Additionally, I would like to convey my deep gratitude to the responsible individuals at Proximity Designs (PD) and Farmers' Bridge - Taungthutada (TTTD) for allowing me to collect data for my thesis I am also eternally thankful to all the participants who took part in the interview processes Lastly, I must acknowledge that none of my achievements would have been possible without the unconditional love, endless support, and encouragement from my family and friends I am sincerely grateful to all the individuals who have supported me throughout my academic journey i i ABSTRACT This thesis investigates the role of social enterprises (SEs) in supporting the agricultural and rural communities during a challenging period characterized by the Covid-19 pandemic and a military coup in Myanmar With farmers facing difficulties sustaining their farming practices, Social Enterprises have emerged as a suitable pathway for providing assistance and support to rural areas Consequently, Social Enterprises have become integral to the fabric of rural life in Myanmar The study explores the experiences of farmers with Social Enterprise, including the challenges and opportunities encountered, as well as strategies for improving Social Enterprises in agricultural and rural development By employing a qualitative research approach, the study conducts a case study of two Social Enterprises, Proximity Designs (PD) and Farmers’ Bridge - Taungthutada (TTTD), utilizing document analysis and indepth interviews to address the research questions Moreover, this thesis explores the contribution of social enterprises to the agricultural and rural community in Myanmar, specifically focusing on their role in supporting farmers The research question and conceptual framework center around understanding the current challenges and opportunities faced by social enterprises in Myanmar, and how they contribute to the development of the rural community and agriculture sector The data analysis reveals that inflation, funding availability, security concerns, electricity access, and volatile political and social conditions pose significant challenges for Social Enterprises, the agricultural sector, and farmers Nevertheless, the study finds that a majority of Social Enterprise participants demonstrate a high level of motivation to contribute to rural community development despite these challenges The research also explores current and potential solutions and pathways for agricultural and rural development, taking into account the perspectives of key actors involved Keywords: Social Enterprise, Farmer, Challenges, Opportunities, Rural i ii TABLE OF CONTENTS ACKNOWLEDGE ii ABSTRACT iii TABLE OF CONTENTS iii LIST OF TABLES vii LIST OF FIGURES viii LIST OF ABBREVIATIONS ix CHAPTER 1: INTRODUCTION 1.1 Background of the study 1.1.1 Social Enterprise 1.1.2 Smallholder Farmer 1.1.3 Legal framework of Social Enterprise in Myanmar……………………………………5 1.2 Problem Statement………………………………………………………………………….8 1.3 Research Gap……………………………………………………………………………… 1.4 Research objectives 1.5 Research questions 1.6 Organization of the study 10 1.7 Scope of the Study 11 1.7.1 Context of Proximity Designs 11 1.7.2 Context of Taungthutada, TTTD - Farmers' Bridge 13 CHAPTER 2: LITERATURE REVIEW 16 2.1 Agriculture and Rural Community Development in Myanmar 16 2.2 Social Enterprise 17 2.3 Rural Community Development………………………………………………………… 18 2.4 Social Enterprise in Agricultural and rural community development 19 2.5 Social Enterprise in Myanmar 20 2.5.1 Challenges 23 2.5.2 Opportunities 24 2.6 Social Enterprise in Viet Nam 25 2.6.1 Challenges 25 2.6.2 Opportunities 26 CHAPTER 3: RESEARCH DESIGN AND METHODOLOGY 28 i v 3.1 Research Design 28 3.1.1 Conceptual Framework 28 3.1.2 Significance of the study 29 3.2 Research Methodology 29 3.2.1 Ethical Consideration.……………………………………………………………… 31 3.2.2 Reason for choosing the case studies 31 3.2.3 Data collection instruments and analysis procedure 32 3.3 Limitation of the Study 33 CHAPTER 4: FINDINGS AND DISCUSSION 34 4.1 The role of Proximity Designs and Taungthutada in the agricultural sector and rural community 31 4.1.1 Overall Assessment 34 4.1.2 Cost efficient and income generating 38 4.1.3 Community contribution 39 4.1.4 Booster for the rural small business 40 4.1.5 Environmental sustainability 41 4.1.6 Digital transformation 42 4.1.7 Problem Solving 43 4.1.8 Suggestion to improve the role of Social Enterprise 45 4.2 Challenges 46 4.2.1 External challenges 46 4.2.2 Internal challenges 48 4.3 Opportunities 49 CHAPTER 5: CONCLUSION AND RECOMMENDATION 52 5.1 Summary and Conclusion 52 5.2 Recommendations toward improving the role of social enterprises in agricultural and rural community development in Myanmar 53 5.2.1 Recommendation for SEs…………………………………………………………… 53 5.2.2 Recommendation for government…………………………………………………….54 5.2.3 Recommendation for Business and INGO……………………………………………55 5.3 Recommendations for further research 57 References: 58 APPENDIX: INTERVIEW GUIDE 62 v List of Interviewees………………………………………………………………………………65 v i LIST OF TABLES Table 1 Data of smallholder farmers in Myanmar Source: 2014 Myanmar Census…………3 Table 1.2 Legal framework adopted by SEs………………………………………………………8 Table 1.3 Profile of Proximity Designs Source: Proximity Designs………………………….11 Table 1.4 Profile of Taungthutada Source: Taungthutada……………………………… 13 Table 4.1 Total youth and women employed in Kayah Chili farming Source: TTTD 36 Table 4.2 Total farmers have been introduced with new technology (farmer meeting, demonstration event, other activities) (Source: TTTD) 36 Table 4.3 Total farmers engaged for solar Irrigation service (Source: TTTD) 37 Table 4.4 Total youth and women employed in Kayah Chili farming (Source: TTTD) 37 Table 4.5 Challenges of agricultural social enterprises in Myanmar to play their role 49 Table 4.6 Opportunities of agricultural social enterprises in Myanmar to play their role 51 v ii LIST OF FIGURES Figure Conceptual framework of the study 29 v iii linkage with market for mass volume of farm produce is needed.” Moreover, increasing soil fertility in corn cultivated farms is to be considered to grow alternative crops in the Hsi Hseng township in Shan State.” The interviewee S09, from the microfinance business unite shared: “We are negotiating with the private bank to invest in our organization Moreover, we have a plan to look for investment from international financial institutions as well.” but the interviewee did not want to explain about the plan and progress Opportunities ● Increased attention of INGO and Business ● Food safety for the IDPs ● Partnership with different stakeholders in the future ● Funding availability in the future after the crisis is over ● Extension to new crop and new region Table their role Opportunities of agricultural social enterprises in Myanmar to play CHAPTER 5: CONCLUSION AND RECOMMENDATION 5.1 Summary and Conclusion This study investigated the role of Social Enterprises within the agricultural and rural communities, as well as their problems and potential during a difficult period Farmers in Myanmar are currently battling to continue farming because to the effects of the Covid-19 outbreak and the military upheaval In this instance, Social Enterprises became an excellent means of aiding and supporting rural farmers In this way, Social Enterprises are becoming an important aspect of rural community life in Myanmar Consequently, this thesis also studied the experiences of farmers with Social Enterprises, as well as their problems and opportunities, as well as the best approaches to enhance Social Enterprises in agricultural and rural development This article highlighted the actual contribution of Social Enterprises to smallholders, according to its authors In addition, the case studies of Proximity Designs and Taungthutada were utilized to conduct exploratory research employing qualitative method analysis The research questions were answered by a combination of document analysis and in-depth interviews According to the findings of a data analysis, Inflation, the availability of money, security concerns, electricity, and an unanticipated political and social climate could be considered the greatest obstacles for Social Enterprises, the agricultural industry, and farmers In addition, as seen by the papers and responses from interviewees, the majority of Social Enterprises participants are highly motivated to work on a variety of rural community development concerns In addition, this study examined present and potential solutions and acceptable pathways for agricultural and rural development in light of the current situation and the perspectives of important actors Last but not least, it might be argued that the present is the ideal time to encourage Social Enterprises to assist rural farmers and agriculture in Myanmar because they are sustainable and efficient In conclusion, advancing the role of Social Enterprises in agricultural and rural development necessitates the joint efforts of numerous stakeholders We can create a more inclusive and sustainable future for rural communities in Myanmar by fostering collaboration, obtaining government backing, investing in technical and social training, and encouraging private businesses and INGOs to invest Recognizing Social Enterprises' potential and adopting the required laws and actions will pave the road for holistic development, economic empowerment, and improved livelihoods Therefore, agricultural and rural community partnership plays an important role in the economic growth of Myanmar 5.2 Recommendations toward improving the role of social enterprises in agricultural and rural community development in Myanmar The researcher would like to provide the recommendation to promote the role of Social Enterprises in the agricultural and rural community by reducing the current and potential challenges The recommendation would be useful for the different stakeholders, especially to the policy makers and government based on the findings, discussion and data from the interview and analysis 5.2.1 Recommendation for the Social Enterprise Collaboration with Partners Social Enterprises in agricultural and rural development depend on cooperation with local communities, NGOs, government agencies, and other key stakeholders By forming partnerships, social enterprises can access the knowledge, skills, and resources of these stakeholders Social Enterprises can take advantage of existing networks and infrastructure, draw on community members' knowledge and experiences, access funding opportunities, and jointly create more comprehensive solutions to the complex problems facing rural development Technical and Social Training Social enterprises should make investments in the social and professional growth of its employees By providing skilled people, notably young people, with opportunities to contribute to rural communities and the agricultural sector, this investment helps to reduce brain drain Social Enterprises may provide its staff with the skills required to promote good change by providing training programs with an emphasis on sustainable farming techniques, entrepreneurship, marketing, and community engagement Technical training ensures the use of sustainable farming practices, effective resource management, and acceptance of best practices Social training simultaneously improves staff members' capacity to interact with local populations, foster trust, and promote community participation, leading to more successful and inclusive treatments 5.2.2 Recommendation for the Government Support and Policy Implementation In order to realize their full potential, social enterprises require significant support from local, regional, and national governments It is crucial to acknowledge and value the crucial role social enterprises play in promoting rural and agricultural development It is crucial that the government create and put into effect particular policies to support the expansion and sustainability of these businesses These policies ought to include a range of elements, including encouraging rural entrepreneurship, streamlining administrative processes, and implementing programs for capacity building that are tailored to the particular needs of social enterprises operating in Myanmar For a number of reasons, governments programs and specialized policies must support social enterprises Driving Rural and Agricultural Development: Social enterprises have the potential to make a substantial impact on the growth of rural communities and the agriculture industry The government may use their creative solutions and long-lasting business models to address rural issues, generate employment opportunities, and boost agricultural output by recognizing and respecting their position in the sector Growth and Sustainability: A supportive environment for social enterprises can be created with the help of certain legislation intended to promote their expansion The government can create an environment where social enterprises can flourish and increase their effect in a sustainable way by providing financial incentives, technical support, and access to resources Encouraging Rural Entrepreneurship: The government can enable people in rural communities to start and run Social Enterprises through supporting rural entrepreneurship This not only creates economic opportunities but also helps communities grow, reduce poverty, and enhance society's socioeconomic status Streamlined Regulatory Processes: Reducing bureaucratic barriers and improving the ease of doing business for Social Enterprises can be accomplished by streamlining regulatory procedures Social Enterprises may operate successfully, attract investment, and maintain compliance without undue constraints thanks to clear and effective legislation Tailored Capacity-Building Programs: Social enterprises frequently confront particular difficulties that call for specialist assistance The government can deliver specialized training, mentoring, and technical assistance by establishing capacitybuilding programs catered to their unique requirements This gives social enterprises the knowledge and abilities required to solve challenges and boost operational effectiveness In conclusion, in order to fully realize the potential of social enterprises in Myanmar, government assistance and the adoption of certain legislation are crucial The government may create an environment where Social Enterprises can thrive and have a beneficial social, economic, and environmental impact by acknowledging their contribution to rural and agricultural development and putting forth targeted measures 5.2.3 Recommendation for Businesses and International Non-Governmental Organizations Investments made by private businesses and INGOs in social enterprises working in the agricultural and rural development sectors can have a substantial positive impact on Myanmar's social and economic development It is crucial to encourage these organizations to fund social enterprises for the following reasons: Enhanced Corporate Social Responsibility: Private businesses show their dedication to corporate social responsibility by investing in social enterprises Companies contribute to the general well-being of the communities in which they operate by directing their investments toward projects that have a good social and environmental impact This can involve programs aimed at reducing poverty, protecting the environment, and empowering disadvantaged people Companies can better their corporate brand and generate goodwill among customers and stakeholders by investing in social enterprises and aligning their commercial objectives with their social and environmental principles Improved Supply Chain Resilience: Private corporations' supply chains can be made more resilient by investing in social enterprises working in the agricultural and rural development sectors Companies can build dependable and sustainable sources of raw materials, lessen reliance on external suppliers, and maintain the integrity of their supply chains by assisting these businesses In the context of agricultural production, where supply chain interruptions may have large negative economic and societal effects, resilience is especially important By reducing risks and assuring company continuity, investing in social enterprises can help diversify and ensure the supply of agricultural products Increased Access to Markets: Working together with social enterprises gives private companies access to fresh markets and clientele Social enterprises frequently target underprivileged neighborhoods and take on certain social or environmental problems Private businesses can access these niche markets, grow their clientele, and diversify their product offerings by collaborating with social enterprises By tackling social and environmental challenges through their activities, this can result in more revenue streams and business expansion Long-Term Sustainable Impact: INGOs can be a key component in assisting social enterprises thanks to their resources and social development knowledge INGOs can create a lasting, sustainable impact by committing resources to these businesses Social enterprises with a rural and agricultural development focus are well positioned to solve systemic problems including poverty, food security, and environmental degradation INGOs may help these businesses develop sustainable models that give long-term social, economic, and environmental benefits by providing finance, technical assistance, and capacity-building support 5.3 Recommendations for further research The primary objective of this study was to examine the challenges and opportunities faced by Agricultural Social Enterprises and their impact on the development of agriculture and rural communities through support to smallholder farmers The study specifically focused on Agricultural Social Enterprises and farmers as key actors in this context Furthermore, the analysis was conducted by considering employees at various levels within two specific Social Enterprises that currently offer products and services, as well as the farmers associated with these enterprises However, it is important for future researchers to investigate the perspectives of other significant stakeholders such as government personnel, international and nongovernmental organizations (INGO/NGO) representatives, experts, and others This broader perspective would provide a more comprehensive understanding of the subject matter Additionally, future research endeavors could delve into the current policy landscape related to agriculture and rural environments in Myanmar, enabling a deeper comprehension of the existing policy affairs in this field REFERENCES: Barraket, J., & Anderson, H (2010) Developing strong social enterprises: A documentary approach Queensland University of Technology Borzaga, C., Depedri, S., & Galera, G (2012) 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How you deliver your products and services to rural communities? အ ပ ို ါ တ ို ကိုေမ ော်းနှင ့် ၀ေထ ောငမှုမ ော်းကို ထက ်းလကထေသသို ထေောက ရှေေ မညသို ့် ့် ဖဖေဖဖ ့် ်း လိုပပါသလ? How many farmers did you serve by your organization last year? လေခထ ့် သောနှစက ထတောငသူအထေအတကမညမျှကို သငအ ့် ဖွဲ့အစည်းက ၀ေထ ောငမှုထပ်းခပ ့် ါသလ? What kind of knowledge you provide to farmers? How you deliver to farmers? မညသထသော ို ့် အသပညော၊ ဗဟိုသတ ို မ ောကို ထတောငသူမ ော်းသို ၀ေ ့် ထ ၄င်းတက ို ့် ို ထတောငသူမ ော်း ောငမှုထပ်းထေပါသလ? သို မည သ ့် ည့် ပစ ို ဖဖင ့် ဖဖေဖဖ ့် ့် ်းပါသလ? What kind of resources your organization provide to farmers? မညသထသော ို ့် သင်းအော်းစို အေင်းအဖမစမ ော်းကို သငအ ့် ဖွဲ့အစည်းက ထတောငသူမ ော်းကို ထ ောကပထ ့် ပ်းထေပါသလ? How does your organization provide for farmers financially? How much your organization provide to one farmer? သငအ ့် ဖွဲ့အစည်းက ထတောငသူမ ော်းကို ထငထ က်းအော်းဖဖင ့် မညသို ထ ့် ထတောငသူတစဥ်းလျှင ပမောဏ မညမျှထ ောကပ့်ထပ်းပါသလ? ောကပပ ့် ါသလ? Does your organization collaborate with local communities and stakeholders, and Are there any opportunities by collaborating with a partner? သင၏ အဖွဲ့အစည်းက ထေသခအသင ို ်းအ၀ိုင်း နှငအ ့် ဖခော်းသက ပါ၀ငပတသကသူမ ော်းနှင ့် ပူထပါင်းထ ောငေကပါသလော်း? ိုငေော သ ို ့် ို ထ ့် ောငေကေကဖခင်းအော်းဖဖင ့် မညသထသော ို ့် အခငအ ို ပါသလ? ့် လမ်းမ ော်း ရှနင How you measure your organization’s impact/achievement? သငအ ို ့် တ ထအောငဖမငမှုမ ော်းကို မညသို ့် ့် ဖွဲ့အစည်း၏ အက ်းသကထေောကမှု သမဟို တင ို ်းတောပါသလ? Could you please share with me your experience of your organization's impact or success story? သငအ ို ့် တ ထအောငဖမငမှု ဇောတလမ်းကို ့် ဖွဲ့အစည်း၏ အက ်းသကထေောကမှု သမဟို မျှထ၀ထပ်းလေမလော်း? ို ့် What are the current and potential challenges faced by social enterprises in Myanmar's agriculture and rural development sector? ဖမေမောနင ို င၏ စက ို ပ ်းထေ်းနှင ့် ထက ်းလကဖွဲ့ ဖဖ ်းတ်းို တကထေ်းအတက လကရှကောလ သမဟို ို ့် တ အလော်းအလောရှတ့် စေထခေါ်မမ ှု ော်းက ဘောထတမ ော်းဖဖစမလ? How your organization address the current challenges? သငအ ့် ဖွဲ့အစည်းအထေဖဖင ့် အ ပ ို ါ စေထခေါ်မှုမ ော်းကို မညသို က ့် ိုငတယထဖဖရှင်းပါသလ? Do you have any suggestions to promote Social Enterprise in the agricultural sector and rural development? စက ို ပ ်းထေ်း နှင ့် ထက ်းလကထေသဖွဲ့ ဖဖ ်းတ်းို တကထေ်းမှော SEs ထတကို ဖမြှငတ ို ့် က ့် ငဖအတ ထပ်းခ ငတ့် အ ကဖပ ခ ကမ ော်းရှပါသလော်း? Farmer Which Social Enterprise’s product and service did you receive? and What are they? ဘယ Social Enterprises ေ ့် တ ို ကိုေ သမဟို ို ့် တ ၀ေထ ောငမှုကို အသ်းို ဖပ ခပ ့် ါသလ? ၄င်းတို ့် အမညမ ော်းကို ထဖပောဖပထပ်းပါ? What kind of training and knowledge did you receive from the Social Enterprise? Social Enterprises မ ော်း မှ မညသထ ို ့် သော training သမဟို ို ့် တ ဗဟိုသတ ို မ ော်းမ ော်း လကခေရှခ့်ပါသလ? What kind of financial support did you receive from Proximity? PD မှ မညသထသော ို ့် ထငထ က်း၀ေထ ောငမှု မ ော်းကို ေရှခပါသလ? What kind of agricultural input you receive from the Social Enterprise for your farm? သငလ ို ့် သော စိုကပ ်းထေ်း င ို ေော သင်းအော်းစိုထတကို Social ့် ယယောအတက မညသထ Enterprises ထတ က လကခေရှခပ ့် ါသလ? How you use these financial, knowledge and input for your business that you received from the Social Enterprise? Social Enterprises ထတ က လကခေရှတ့် ထငထ က်း၊ ဗဟိုသတ ို ေ သ ့် င်းအော်းစိုထတကို ဘယလအ ို သ်းို ဖပ ပါသလ? How these agricultural input, training and finance support affect your business? အေ သင်းအော်းစို အထ ောကအပထ ့် တက သငလ ့် ိုပငေ်းကို မညသို ့် အက ်းသကထေောကမှုရှပါသလ? How you use the income, knowledge and food security increment due to the Social Enterprise? Social Enterprises ထတထ ကောင ့် ေရှလောတ့် ၀ငထင၊ ဗဟိုသတ ို ေ ့် အစော်းအထသောကလိုဖခ မှု င ို ေော တ်းို တကမှုထတကို ဘယလအ ို သ်းို ဖပ ပါသလ? Do you think Social Enterprises are effective/supportive for the agricultural sector and rural community and why? Social Enterprises ထတဟော စက ို ပ ်းထေ်းေ ထက ်းလကထေသ အတက ့် အက ်းဖပ /အက ်းရှတယလို ့် ငပါသလော်း? ဘောထ ကောငပ ့် ါလ? Do you have any suggestions to promote the role of Social Enterprise in agricultural and rural community development? စက ို ပ ်းထေ်းေ ထက ်းလကထေသဖွဲ့ ဖဖ ်းတ်းို တကထေ်းအတက Social Enterprises ထတေ ့် ့် အခေ်းကဏ္ဍ တ်းို တကဖအတ ို ့် က အ ကဖပ ခ ကမ ော်းရှပါသလော်း? List of Interviewees Code F01 F02 F03 F04 F05 F06 F07 F08 F09 F10 Gender Male Male Male Male Male Male Male Male Male Male Representative Farmer Farmer Farmer Farmer Farmer Farmer Farmer Farmer Farmer Farmer Age 44 50 36 61 49 59 57 50 48 60 S01 S02 S03 S04 S05 S06 S07 S08 S09 S10 Male Male Female Female Male Male Female Female Female Female TTTD PD TTTD TTTD PD PD PD PD PD PD 26 31 44 28 29 26 33 34 48 35