Small and Medium Enterprise Support Project
This project supports the growth of small and medium enterprises in the Republic of Georgia. By strengthening communjcaiton and cooperation between trengthenspublic-private dialogue to improve the business climate for SMEs in Georgia and jointly resolve the issues impeding robust economic growth. Services and Assistance Drawing on IESC’s knowledge of best practices and the business skills of its Volunteer Experts, the SME Support Project provides training and technical assistance to Georgia’s private sector, commercial banks and non-bank financial institutions to meet local demand for long-term financing for SMEs. The program has created an environment that will lead to stronger banking institutions in Georgia. Additionally, the program provides technical assistance to business associations to help develop self-certification programs for personnel, processes, and products in their industries. It also assists business associations’ efforts to engage various levels of the Georgian government on local and national development strategies, tax regimes, administrative reforms, and other points of interaction to create a more favorable business environment. Initiatives include:
Activities And Approaches
- Assistance to associations in developing self-certification and ISO standards for Georgian businesses;
- Developing the Business Consulting Network Georgia for SMEs in Tbilisi and the Georgian Regions as both a technical and informational resource for local businesses;
- Diversified assistance aimed at sustainable tourism development in Georgia;
- Promoting public-private dialogue. Results to Date SME Financial Services
- Bank Republic placed a US$119,403 loan to qualified agribusinesses borrowers.
- 24 loans have been issued through the DCA Loan Portfolio Guarantee
- The MFI Crystal signed an agreement with USAID to attract $1,000,000 in debt financing from a foreign investor.
- Supported the Georgian Banking Training Center (GBTC) to develop 3 new training courses, training 269 professionals.
- 52 potential borrowers have been trained
- DCA Loan Guarantee allowed Constanta Foundation to obtain a $1,500,000 revolving loan to on-lend to 578 MSMEs.
- Assisted in development and adoption of the new MFI Law;
- 10 MFIs joined the Association of Georgian Microfinance Organizations Business Consulting Network Georgia (BCNG)
- Established 6 BSOs under the Business Consulting Network Georgia to provide consultations, trainings and other assistance to MSMEs. To date: 4,247 clients served, 4,674 individuals trained; 707 jobs created with BCNG assistance;
- Assisted Samegrelo-Zemo Svaneti Regional Chamber of Commerce and Industry to develop the Printing and Advertising Facility, the first in the region, to address local needs and further strengthen the regional Chamber;
- Assisting Kakheti Regional Chamber of Commerce and Industry in establishing a regional exhibition-convention center
- Held the first expo fair called AgroKakheti 2009 (agriculture and agro tourism), representing over 25 companies, organizations and sole proprietors. Over 400 visitors attended the fair, which generated GEL 8200 in income. IDP (Internally Displaced People)-related Activities
- Established the Business Incubator in Gori for IDP women, training over 300 IDP women in vocational courses, providing space for five micro-businesses and assisting 100 IDP women in finding jobs.
- Financially supported 4 businesses employing 56 IDPs to provide IDPs with primary services and foodstuffs and to facilitate their employment.
- Established the IDPs database with 2,917 families (total number of individuals: 9,354)
- ~429 IDPs were trained;
- 64 IDPs received business consultations
- 19 IDPs were assisted in preparation of business plans
- 25 permanent and 22 seasonal jobs created for IDPs.
- Within the framework of an SME Support Project grant, the Tbilisi BSO conducted the Employment Demand Study and facilitated part-time employment of 80 IDPs
- 8 IDPs from Tserovani have been assisted in preparation of grant proposals for the SME Project grant competition. 3 out of 8 IDPs received grant from SME project.
Project Duration: 2005-2009
Award: $9.3 million