Description of project:
A value chain represents all the processes involved in an enterprise. It shows the steps from getting the raw materials for the products and/or services to sale to the final consumer. Analysing the value chain is one way that helps the entrepreneur to deliver goods and services at the lowest possible cost. Because it maps all the processes in the enterprise, it can also help to identify vulnerabilities to climate change. This was the premise of the 12 month-exercise that CANARI undertook with the Brasso Seco Paria Tourism Action Committee (BSTAC) and the Brasso Seco Morne La Croix Farmers’ Association (BSMLCFA) in north Trinidad. The two groups analysed their nature-based enterprises’ value chains to determine vulnerabilities to climate change. With a business expert as a mentor, they determined cost-effective solutions to build resilience in those enterprises so that they can adapt to climate change. They each implemented at least one of those solutions using a micro grant and assessed the results of their actions. The project was funded by the United Nations Development Programme (UNDP) Global Environment Facility Small Grants Programme (GEF-SGP) in Trinidad and Tobago and was worth US$50,000.
What are the advantages of the process?
Value chains provide a logical structure by which the community entrepreneurs could identify climate change vulnerabilities at each stage of the enterprises. At the same time, they can assess what is usually of immediate interest to them – adding value to their enterprise – and this provides an incentive for them to undergo the vulnerabilities assessment. Value is added for example, by reducing production costs, increasing efficiency of production, improving quality of goods and services, and/ or improving markets. These increase income to the enterprise. While finding ways to add value to the enterprise, the enterprises can identify actions to address the climate vulnerabilities identified through climate change resilience-building strategies.