Entrepreneur Development
Micro, small, and medium enterprises (SMEs) are a vital segment of our economy – they make up 52% of GDP and 45% of national employment. In addition to providing sustainable markets for thousands of suppliers, vendors, and distributors who partner with us, Cargills supports local SMEs by providing them market access, technical guidance, and low-cost financing opportunities. Cargills Village to Home is a program which was launched in 2020, specifically with the purpose of supporting SMEs impacted by the pandemic. The company provides SMEs with a platform to engage a wider network of customers at selected premises within the Cargills retail network on a monthly basis.
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What is Village To Home?
With the onset of the Covid-19 pandemic and resulting lockdowns in 2020, many of the traditional markets of local small and medium entrepreneurs (SMEs) and the agricultural community were lost. Most were unable to get products to market. Realizing the challenges faced by small entrepreneurs and farmers in rural and sub-urban Sri Lanka, Cargills launched an initiative named ‘Village to Home’. Our immediate objective was to provide small businesses access to a larger market and to support them compensate for their lost markets. Our larger vision is to develop the country's budding SMEs and to take their products to markets outside Sri Lanka.
We hold monthly stalls outside Cargills Food City premises, where selected SMEs get an opportunity showcase their products to the Cargills customer base. The Company bears all expenses of the event. Through the program, local entrepreneurs get the opportunity to directly sell their products to the market. To date, we have seen an exciting array of traditional products including healthy, nutritious, Ayurveda herbal products, handloom and handicraft, cane and reed craft products, etc. We collaborate with several government and other organizations to ensure the success of this initiative. The Small Enterprises Development Division (SED) of the Ministry of Sports and Youth Affairs, the National Enterprise Development Authority (NEDA) of the Ministry of Industries and Commerce, the Ministry of Cane, Brass, Clay, Furniture, and Rural Industry Promotion, and the Provincial Department of Agriculture (Western Province) have all assisted us in identifying potential SMEs.
What we have done so far?
- Providing stalls and opportunities to local SMEs to showcase their products to the Cargills customer base. The Cargills team creates demarcated stalls outside the Food City premises. We provide stalls, water, electricity, and other required infrastructure at no cost to the SME.
- SMEs have an opportunity list their products at Cargills FoodCity outlets as established suppliers.
- 27 programs of Cargills Village to Home have been held to date introducing over 3000 products to the market
- We also held an SME training workshop in partnership with the Central Bank of Sri Lanka to improve financial literacy and technical awareness among SMEs. The training program focuses on the fundamentals of financial management and savings, market-oriented labeling, packaging, and provides a complete guide to financial services such as loans, credit cards, the process of creating long-term businesses, and so on.
- We also provide training and advice to help them reach their full potential. We assist with packaging, quality assurance, technical understanding, and in obtaining necessary certifications and standards.
- As of April 2024, over 1000 SMEs have received the opportunity to demonstrate their products.
- To promote SME products and increase income for them, Cargills launched the Gondola program which allows greater visibility and exposure at Cargills Food City outlets, for a minimal shelf cost.
- Another phase of the program is the collaboration with Hela Bojun, which is a Ministry of Agriculture project to introduce healthy breakfast meals. As an initial step towards providing a nutritious breakfast to the public, Cargills will provide the Food City premises to Hela Bojun to set up carts and sell their traditional, healthy, food items, while the Cargills QA team will audit the ongoing project to ensure a high level of quality.
- Cargills Bank provides financial assistance to SMEs by providing bank accounts, loan facilities, card facilities, and Lanka QR codes, which are accepted throughout the country.
What Do We Gain?
The program is another CSR initiative by Cargills, aligned to its mission statement of reducing regional disparities in Sri Lanka and empowering local smallholder farmers and businesses. It is also aligned with the Group’s continuous efforts to provide affordable nutrition to consumers, as most of the products on offer are traditional, healthy, food products. By encouraging small businesses to increase capacity and providing them with the necessary expertise to do so, the Group is also able to further promote its objectives of providing affordable nutrition to customers by increasing local production.
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Success Stories
The local SMEs who took part in this program are extremely grateful, not only for the additional income they were able to generate but also for the technical expertise they gained by working closely with the Cargills team. There have been many success stories to come out of the Village to Home program with some SMEs getting numerous other opportunities as a result.
Chamara Cane Products
Radha Lanka Natural Food Products
GSK Products
ENTREPRENEUR DEVELOPMENT ------
What is Cargills Lak Bojun?
Cargills Lak Bojun is an extension of the Cargills Village to Home, collaborating with the ‘Hela Bojun’ (Women's Agriculture Extension Program, Ministry of Agriculture) to provide support and strengthen women entrepreneurs. This initiative provides a platform for women who are interested in engaging in self-employment to sell traditional healthy foods.
To ensure the quality and standards of the food being sold, the Provincial Department of Agriculture in the Western Province conducts training programs and offers technical assistance. Additionally, Cargills supplies SMEs with carts, premises, and other necessary infrastructure free of charge to sell their healthy home-cooked meals.
The food items sold through the cart are all healthy, locally sourced, and authentic, with a high nutritional value. These include ‘Kola Kanda’ and ready-to-eat foods made from root crops and grains and a variety of healthy choices. Cargills conducts a weekly audit on all participants of the Lak Bojun program to ensure that the food being sold is of the highest standard and adheres to the guidelines set by Hela Bojun.
One of the key aspects of Lak Bojun is making the food affordable to customers. By offering reasonably priced meals, the initiative aims to ensure accessibility for a wider range of individuals. In line with sustainability efforts, the initiative encourages the use of eco-friendly packaging options such as paper cups, banana leaves, kanda leaves, and bio-compostable wraps.
Initially, the initiative started by providing healthy breakfast options and later expanded to include lunch and dinner options. Cargills Bank provides financial assistance to women entrepreneurs by providing them with assistance to open bank accounts and guidance on savings. All income generated through the Lak Bojun program goes directly to the women entrepreneurs. To identify and engage women SMEs, Cargills collaborates with various government organizations, including the Small Enterprises Development Division (SED), Vidatha, the Women & Child Development Department, and the National Enterprise Development Authority (NEDA).
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Highlights of Our Journey
01
On May 5, 2022, the first cart was launched at the Rajagiriya-01 Cargills FoodCity outlet. This cart was sponsored by Cargills Bank.
02
The Scaling up Nutrition Business Network (SBN) sponsored 5 newly designed carts with additional features.
03
The initiative expanded to a total of 8 carts with the participation of 14 SMEs.
04
6 training programs were conducted in collaboration with the Ministry of Agriculture at the Hela Bojun premises in Battaramulla.
05
Since its inception up until March 2023, the total income generated by all Cargills Lak Bojun carts have exceeded 7 million.
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Success Stories
The local SMEs who took part in this program are extremely grateful, not only for the additional income they were able to generate but also for the technical expertise they gained by working closely with the Cargills team. There have been many success stories to come out of the Village to Home program with some SMEs getting numerous other opportunities as a result.
Cargills Lak Bojun Cart- Kollupitiya 2- Cargills FoodCity
Eranga’s family relies solely on the income generated by their Cargills Lak Bojun cart, as the family members are currently unemployed. During the Covid-19 pandemic she lost her income as she was involved in a small-scale sewing business. With the success of the Cargills Lak Bojun, she is now able to spend for her family, save for the future, and create 4 indirect employment opportunities.