Youth Economic Empowerment in COVID-19 Study

TERMS OF REFERENCE

[YEE in COVID-19 Study]

Location:Home based
Application Deadline:8 June 2020
Contract Type:Professional Service Contract
Working Language:                                                  Bahasa Indonesia and English
Expected Starting Date:

15 June 2020
Contract Periood:15 June 2020 – 15 August 2020
  1. Background

Young people situation is highly at risk from economic perspective during COVID–19 pandemic. National statistics data shown that there was an increase on young people Labor Force Participation Rate (LFPR/TPAK) from 2018 to 2019 meaning there are more young people now in the workforce. While data in March 2020, shown that Indonesia displayed decrease occupancy at 23% rate due to COVID–19. Data from Ministry of Manpower initial survey on COVID–19 impact showed more than 500,000 worker was laid off and more than 1 million worker is being placed at home with no paid salary or cut off. Majority of the young people are involved in services industry (55%), compared with manufacture (26%) and agriculture is the lowest (18%). Based on gender, more young women involve in service industries (66%) than men (49%), while men involvement in manufacture is slightly higher (M:30%, F: 21%), and for agriculture is the opposite (M: 23%, F: 13%). Sectoral analysis becomes highly necessary in addressing youth situation in the economy in COVID–19 era, since some sectors are heavily impacted negatively, while others might experience a spikes. Analysis from various sources shown sectors that heavily and immediately impacted is hospitalities & travel also offline retail industry, with health, personal hygiene and ICT is the ones that the most positively impacted. Manufacture and agriculture is lay in between. This put our young people, especially young women is more at risk, since almost 10 million of the young people involve in Hospitality and Retail sectors. Adding to that, sector as food and accommodation, educational institutions and any recreational business also predicted to be the last to recover since it has high risk of transmission. This situation need to be addressed since period of the economic impact of COVID-19 ranging from 8 months until 2 years based on lesson learn from previous pandemic that impacted much lower number of people globally, and not to mention the new normal situation that will be created post-pandemic based on change of habits during the pandemic period.

As for young women, adding to the situation is the restrictions of social activities and gathering led business and schools to put workers and children at home. Working from home and school from home is the way business and educational institutions to facilitate the prohibition of social gatherings and activities. For young women who work or having a business, this potentially escalate the double burden situation that usually experienced by young women due to lack of support of child rearing and household  responsibilities. Taking care of sick person, situation that might increase during this pandemic also often percepts as women responsibilities compared to men. Loss of income or financial pressures within the families can lead to domestic violence that most likely to put women in higher risk. Continuing the potential impact on women, women also in the position of higher risk of transmission, considering the fulfillment of basic necessities that often executed by women which require women (especially the ones that have low digital literacy) to go outside and shop groceries with an addition on the responsibilities of taking care of families member that is sick.

As for the involvement of formal and informal job, since majority of the young people was high school graduates; 60% of the young people working in formal work, while around 40% working in informal work with no significant changes in the proportion of young men and women. This proportion might change if the impact of COVID-19 persist, causing major lay-off from the formal employers to adjust on the economic impact of the business. Despite the situation, MSMEs in Indonesia is the major force of the economy; absorbed 107,6 million worker and contribute 60,6 persen for Indonesia GDP. Projection on the impact of COVID-19 that might sustain is also the rise of Gig economy post COVID-19 due to the possibilities of remote working that had been increased during COVID-19, also the dynamic shift of the labor market in the pandemic era. Compared to large corporations, MSMEs also have the advantage of flexibility for business pivot, yet they have more limited resources for business pivot and continuity. MSMEs (which rely heavily on direct market selling as schools and offices with no online presence) is the one who is most impacted, and based on lesson from China it has the lowest return and slower come back post social restrictions. Anxiety over the uncertainty of the economy, business downturn as well as the risk of health of oneself and loved ones might also become considerations for continuing or starting the business for aspire and existing enterpreneurs. Adding specific context on social enterpreneurs landscape in Indonesia, majority of the social enterprises have impact lean towards women and concentrated more heavility in urban areas where in majority of cases more impacted by COVID-19 than rural areas.

As in the context of COVID-19 situation in Indonesia, the number is still growing with coverage in all 34 provinces with variation in the level of emergencies. Jakarta as the capital of Indonesia is still the epicentrum of the pandemic. Nielsen published Six Consumer Behavior Threshold in relation with COVID-19; (1) Proactive Health Minded Buying, (2) Reactive Health Management, (3) Pantry Preparation, (4) Quarantined Living Preparation, (5) Restricted Living, (6) Living a New Normal. Referring to Nielsen six consumer threshold, from March to April 2020, situation in Indonesia move rapidly from stage 2 (reactive health management) to stage 5 (Restricted Living) in areas where heavily impacted. The impact of the situation projected to persist in between 8 months to 2 years before economy living to the new normal, with potential of relapses in between if health and social measure did not taken place appropriately.

  1. Objectives of the Assignment

Based on the above considerations, YPII together with relevant partners will conduct quick study focusing on opportunities despite of challenges of COVID-19 for Youth-Led MSMEs, focusing on young women-led MSMEs (include in social enterprise context). The focus on Youth-Led MSMEs (in particular young women) is considered, due to several factors; (1) the large contribution of MSMEs on the Indonesia Economy in terms of labor absorptions and GDP, (2) projection of the rising of Gig economy that more focusing on enterpreneurial skills rather than empoyment skills, (3) employment opportunity scarcity during the pandemic, and (4) higher risk of MSMEs on the impact of pandemic (5) Gender situation that might differently experienced by both young women and men. Focusing on MSMEs might create trifold-effects in creating opportunities in the midst of crisis despite the scarcity of employment opportunities in the area, supporting MSMEs as the backbone of Indonesia economy, quick win in sustaining and improving labor absorption for young people. Adding to that, other surveys had also been conducted by other organizations in scanning the overall industries and labor market situation in Indonesia. Main question and sub-questions to be answered in the completion of this study will be as below. This questions need to be answered by strong gender focus and based on local context of the pandemic, and should document the changed dynamic pre COVID- and COVID-19 situation.

MAIN QUESTION: How youth-led MSMEs win out in the midst of COVID-19 pandemic?

Sub Questions:

  1. What are the impact of COVID-19 to the business, specifically in MSMEs context?
  2. What market opportunities that exist in the midst and persist post pandemic?
  3. What are the value chain of the products? And how it different between market? And also before, in the middle and projection post pandemic?
  4. What market opportunities, and in which part of the value chain that can be tapped by youth-led MSMEs? And how it different between young men and women?
  5. What are the personal challenges experience by youth-led MSMEs in starting or sustaining their business during pandemic (in personal and business context)? And how it different between young men and women?
  6. How these youth-led business survive or triumph the challenge of COVID- 19 in their business? What are the push and pull factors as well as key success factors that determined the survival and triumphant of the business?
  7. What are resources needed for the business to survive or benefitting from the situation of COVID- 19? What are the existing? Should it be sustained, leveraged or changed? Who is stakeholder involve and how it different between young women and men?
  8. Is there any possibilities for youth-led businesses for additional labor absoption or facilitate income generating activities for young people (especially young women) within the labor force? If YES, what type of skills necessary and how to access the employment opportunities?
  9. What are elements necessary to increase resiliency in Youth-led MSMEs post-pandemic, with gender-lens perspective?
  1. Scope of Work/Duties and Responsibilities

As this study focuses on opportunities, despite on challenges, study need to be redirected towards sectors that had emerging markets, or at least sustain during the pandemic such as industries around basic necessities (food, healthcare products, health supplements), industries that support the stay at home culture (food processing as frozen food or cooking ingredients, online entertainment, online virtual interaction), e-commerce, and logistics. Other sectors options can be added based on rigorous desk review. Further analysis or the projections on economic trends post pandemic, or businesses that has fastest come back could also become considerations. Some initial information on the analysis of business situation in COVID-19 era is as follow. B2C business (more specifically that has online presence) is more resilience within this pandemic due to many large business get impacted operationally by COVID-19. Business that focusing more on the fulfillment of health and basic needs is on the rise, rather than complementary needs. Even though early data shown the behavior of buying clothes and electronic remain the same, yet along with the expansion of the period, society might more cautious in spending within this period. On Food business; business that focus on cooking incredients, frozen food and fresh products experience increased. For ready to eat food, people more often buy main course rather than snacks or drinks with price ranging from IDR 20,000 to IDR 100,000. Health-related products as vitamin or herbal (ingredients or ready made as mpon mpon) might also still have some demand if pandemic persist. Caution on health and hygiene highlight the importance of business practice strict hygiene habits, include potential for business with unique selling points that relate with the risk reduction of the virus transmission. Business in relation with facilitation of live virtual interaction (especially involve multiple participants) in social, educational and work settings had a raising demand. Online entertainment subscription also on the rise during the pandemic. Mapping of local context will be needed since the situation might varied from region to others, and due to limited mobility and resources, focusing on local market context might be a better options for the small business. Some trends will stay, such as the utilization of online culture, health & hygiene conscious consumers and also potentially the expansion of gig economy and flexible working arrangement. Clear Criteria need to be established prior to the data collection process (even not necessarily become limitation during data collection process) to support data segregation and data analysis process further along the process.

Mixed-method using literature review, qualitative and quantitative method will be applied for this study. Literature review will provide broader contextual analysis of the economic situation. Online Survey will be used to gather quantitative data to analyze market opportunities, as well as COVID- 19 impact, challenges and business performance before and in the middle of pandemic. Challenges will include highlight on division of domestic works and changes in power balance within the household for the young women. Business performance will include topic on employment rate, and capacity as an off-takers for young people (in particular young women) business. While to futher investigate the process of the successful business champion during the pandemic, case study need to be developed from 5 to 10 youth-led MSMEs (focusing on young women) to provide more contextual analysis on the gender aspects and also the process of findings and executing the business strategy during pandemic.

The use of case research is to fulfill its purpose in:

  1. discover causal relationships in the forms of business dynamic for adapting in COVID- 19 situation
  2. understand how and why business can success and thrive in the midst of pandemic
  3. create thick, interesting, and easily readable descriptions and rich understandings of phenomena in their natural settings 
MethodologyMeasured Variable
Desk ReviewFocus on macroeconomics or global perspective that will enrich contextual analysis in responding to the questions
Online SurveyOnline Survey will focus on gathering informations on; Market; Market Opportunities & Value Chain ProductsOrganization Level; Business Performance, Business Challenge & Business StrategiesPersonal Level; Personal Challenges & Perception on Resources Needed
Case StudyCase study will focus on; (1) Gender situation analysis for Young Women Leaders in MSMEs Business, include; division of Work and Power Relation   (2) Business Process & Strategy for youth-led MSMEs in winning the challenge of the Pandemic with Gender perspective

Different methodology can be provided by the candidate based on the suitability of the objectives.

  1. Key Deliverables and Level of Effort
ObjectivesActivitiesDeliverablesEstimated level of effort
STUDY PROPOSAL DEVELOPEDMethodology finalisationFinalised methodology4 days
Develop toolsFinalised tools including the Cost and Benefit Analysis formula and dummy.5 days
Ethics approvalEthical approval sheet.5 days
Field pilotingFinal tools1 days
DATA COLLECTION & ANALYSIS  Data Collection (Survey & Case Study in Paralel)Data Collected10 days
Data Entry and CleaningData Cleaned5 days
Data AnalysisData Analyzed3 days
REPORT WRITINGPreliminary Report WritingPreliminary Report Submitted2 days
Final Report WritingFinal Report Submitted5 days
  • Duration of the Assignment

The duration of assignment is two months, starting from 15 June 2020 to 15 August 2020.

  • Inputs

The appointed consultant is expected to provide/arrange their own internet connection, travel fare, laptops, and any software or hardware needed to conduct this assignment.

  • Key Principles, Approach and Ethical Consideration

Plan Indonesia Staff and consultant must adhere to Plan International Child and Youth Safeguarding and Protection. In this context, Plan Indonesia shall request for the Consultant, during the contract period, to conduct risk analysis for any activities involving children and young people. Mitigation plan to ensure children and young people participating in the activities during the contract period safe and protected. Liaising with Plan Indonesia’s Safeguarding Focal Point for consultation is expected for developing the risk analysis and mitigation. Plan Indonesia is committed to also provide training for the consultant in this issue.

The consultant must follow Ethical Principles for involving human subjects in a research and obtain written/ verbal consent from the human subjects. Permission from elder must be sought if the children under 18 years are involved as subjects. Signed informed consent of each child and his/her parents need to take after explaining purpose of the study and its usage.

All the projects managed by Plan Indonesia and is partners, should also aligned with Plan International global ambition to reach 100 million girls, using gender transformative approach in delivering its tasks.  In this assignment, the Consultant is expected to apply gender transformative approach through addressing gender norms, strengthening girls’ and young women’s agency, advancing girls’ and women’s condition and position, working with boys and men to embrace gender equality, responding to the needs and interest of girls and boys in all their diversity, and fostering an environment that enables gender equality and girls’ rights.

  • Required experience and qualifications

Mandatory

  1. Possess Master’s degree in any of the following: development economics, public policy, feminist economics.
  2. Minimum 10 (five) years of experience of writing or developing research and study reports in development projects in relation with economic empowerment, more specifically on MSMEs.
  3. Possess knowledge and experience related to any of the following: women’s rights in Indonesia, employment, or gender norms. Having the combination of those field of experience is an advantage.
  4. Relevant experience working for or with the private sector in similar projects, using cost benefit methodology
  5. Relevant experience in the implementation of projects related to women empowerment

Desirable:

  1. Experience in gender studies, women economic leadership/empowerment and enterpreneurship development
  2. Understanding of government policies related to MSMEs development and promotion.
  3. Proven track record in developing tools for gender-lens analysis in economic studies.

c.   Experience working with the private sector

  1. Application Procedure

Yayasan Plan International Indonesia (Plan Indonesia) invites firms/teams of consultant with relevant expertise and portfolio to apply for the assignment by sending:

  1. A letter of intent
  2. Proposal of the assignment with the following content:

(a) background; (b) approach and methodology of the assignment outlining key activities, case study approach and key deliverables produced; (c) workplan; (d) personnel involved

  1. Examples of Research Portfolio relates with the assignment
  2. Proposed budget, to include travel and perdiem of personnel involved, workshop/meeting package related to proposed activities based on the Scope of Work.
  3. Organization Profile with the information on: (a) current and previous relevant works and clients/users; (b) CV of the personnel involved in the assignment and their key responsibilities/roles in the assignment.

The above documents can be sent electronically through the email: yayasan.procurement@plan-international.org; mentioning the code [YEE in COVID-19] in the email subject.

Procurement Unit

Yayasan Plan International Indonesia – Country Office

Menara Duta Building 2nd Floor Wing D

Jl. H.R. Rasuna Said Kav. B-9 Kuningan

Jakarta Selatan 12910, Indonesia

Tel: +6221 522 9566 | Fax: +6221 522 9571

Email:yayasan.procurement@plan-international.org

www.plan-international.org