CSI drives job creation and product innovation

Thukten Zangpo

The flagship Startup, Small Business and Industry (CSI) development programme, launched in 2019, has achieved all its objectives and has been deemed a success, according to the Department of Industry, Ministry of Industry, Trade and Employment.

The government launched the flagship programme in 2019 with a budget of Nu 1.2 billion to provide comprehensive support and build a vibrant entrepreneurship ecosystem.

The flagship program aimed to add value to 21 products, support 746 CSIs (both new and existing) and create 2,000 jobs – 1,200 in the CSI sector and around 800 in start-ups – by 2023.

The flagship programme also involved replacing 10 products by the end of 2020, with a focus on items such as sanitary napkins and pasta.

From 2020 to 2023, the focus was on the production of items such as pasteurized butter, cheese, yogurt, pencil, potato products, bricks and blocks, vegetables and fruit juices, cooking oil, herbal tea products, and honey by-products. Over the next four years, the program aimed to impact 3,320 young people.

The official confirmed that all these goals have been achieved, leading to significant development in the CSI sector.

Officials said the progress is visible in the increased visibility of local CSI products in the market, which is characterised by better quality and packaging, as well as in the establishment of dedicated CSI sales outlets both domestically and abroad.

The flagship program also addressed infrastructure challenges by creating facilities like Fab Labs, CSI Estate and two startup centers. The standardization and certification of 21 products not only improved domestic quality but also made CSI products exportable.

Bhutan can now boast of two CSI markets in Perth, Australia and New York, United States.

Under the flagship programme, the government has provided technology to over 400 CSIs and startups to set up or scale their businesses. To support rural artisans, a common facilities centre has been set up at Radhi, Trashigang, to support over 200 weavers in skill development, product marketing and access to raw materials.

Under the programme, 2,000 people took part in entrepreneurship development training, which led to the creation of 61 startups and 254 jobs.

It also provided essential capacity building support to over 700 CSIs in areas such as accounting, marketing, packaging, labeling, food processing and digital marketing.

To strengthen the National Food Research Laboratory, the government purchased specialized laboratory equipment, expanding the scope of research to include mycotoxins, vitamins in cereals and juices, and aflatoxin M1 in milk.

More than 60 startups were offered business development services, including business health reviews, product development training, and one-on-one mentoring.

A total of 1,340 members from 62 registered and unregistered groups were trained in post-harvest handling techniques, food processing and equipment operation in various gewogs and dzongkhags.

The official also informed that an integrated entrepreneurship curriculum has been introduced in school education for grades 11 and 12 of the commerce major.

The programme also supported 90 artisans and craftsmen to develop new products by establishing a cluster outlet at the Craft Market to sell their products. Through the Cooperative Business Development Scheme, 97 farmer groups and cooperatives received value-added equipment.

One of the officials informed that the flagship programme was implemented with the participation of key stakeholders and the established Project Management Unit.

There were no major coordination issues, but he said the outbreak of the Covid-19 pandemic, although not specific to the CSI sector, had disrupted the implementation of activities as planned.

“Some activities had to be delayed or completely curtailed. For example, fairs and exhibitions planned both within and outside the country to boost the CSI market could not be held due to the pandemic,” the official added.

He added that on the supply side, production increased as the programme supported both the expansion of existing enterprises and the establishment of new ones.

This initiative created a vibrant ecosystem to nurture new CSIs and startups, supporting priority industries to increase the competitiveness of their products and services. Support also included modern technology, capacity building training and assistance in obtaining certifications.

On the demand side, the programme has offered local consumers a wider choice of locally produced products at prices competitive with imported ones, the official said.

The management of the flagship programme was entrusted to the then Department of Rural and Small-Scale Industry of the Ministry of Economy, in cooperation with various partner agencies.