Page 21 - Sustainability and entrepreneurship for CSO's and CSO networks Cambodia 1 November 2018

Stakeholders at private sector
The business sector has been largely disconnected from the CSO sector till today. However, the private sector, together with government, foreign investors, regional bilateral and business relations have gained power and influence in Cambodia, while the CSO sector is losing power, influence and contributions to society. This trend may continue in the coming 5 – 10 years.
How can you connect to the private sector? This is not difficult, in Cambodia the private sector is everywhere. People next to you know how to make business.
(strategic planning)
• Tips
• Business language, orientation and operations differ from the CSO sector. Get to know how businesses operate, how business people speak and think, where they gather, what they read. Be aware that outside your sector nobody will understand or speak your CSO language.
• Businesses want the end user to pay for their products, while the CSO sector seeks third parties to pay for services rendered to the end user. This creates confusion on client orientation. As a rule: the payer decides. Donors claim decision power, CSOs implement and the end users (beneficiaries) follow.
• Todays’ CSO sector has developed systems that include high risk-avoidance mechanisms: M&E, reporting, log frames, rigid structures. Businesses are in general more risk taking, informal and oriented to make profits.
• Businesses are looking for opportunities while CSOs are looking for problems, to the extend that problems and solutions have become the main “reason to be” for CSOs.
• The CSO value chain is long (from taxpayer/contributor to ultimate beneficiary), creating high overhead costs and extensive (expensive) production time. Businesses try to shorten value chains, reduce overhead and rapidly respond to market circumstances.
• Businesses are profit oriented, CSO sector is not.
• Businesses don’t like to throw money away. CSOs tend to spend money as
planned and scheduled even it is counter productive or has no impact.
• Build up your relations. Find out what’s in for both of you.
• Don’t ask for money at the start of your business relation.
• Seek for common issues, such as climate change, food security, employment,
seek for collaboration and if possible: exchange networks and expertise.
See also Chapter 10: Business - CSO Partnerships for more information.
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