Start-up Business Support Program

Transcription

1 Start-up Business Support Program Lilit Apujanyan International Cooperation Programs Coordinator SME Development National Center of Armenia Enterprise Europe Network Correspondence Center in Armenia

2 Tools and Instruments Technical Information Consulting Training Start-up business support program Sells Promotion Local Economic Development Initiatives Development and Introduction of New Business Models

3 Tools and Instruments Financial Loan Guarantees for Operating Businesses Financial Support to Start-ups Interest Rate Subsidizing Equity Financing

4 Start-up Business Support Program Goals and Objectives: establishment of new SMEs and workplaces in the marzes of Armenia, Support in realization of new business initiatives, upgrading business knowledge and skills of start-ups, facilitating access to finance.

5 CEFE Competency based Economies through Formation of Enterprises

6 Introduced by Since 2005 CEFE training of trainers (ToT) courses for SME DNC s staff. Implementation of pilot CEFE training courses in selected regions of Armenia (learning by doing). Elaboration of CEFE manual

7 WHY CEFE OR WHAT IS CEFE? CEFE is a comprehensive set of training instruments using an action-oriented approach and experiential learning methods to develop and enhance the business management and personal competencies of a wide range of target groups, mostly in the context of income and employment generation and economic development. CEFE has proven to be a very successful approach for promotion of small and medium enterprises, employment, income and economic growth. It has been introduced in 150 countries during the last twenty years

8 WHY CEFE OR WHAT IS CEFE? Principle #1 - irrespective of educational background, knowledge and experience, entrepreneurs can obtain the necessary knowledge and develop their entrepreneurial skills. Principle #2 - the priority of action-oriented methods. Principle #3 - CEFE widely employs adult training methods and tools. Principle #4 - CEFE deliberately places the customer, as well as the idea that the whole business is built around the customer, in the center of entrepreneurial activity. Principle #5 - CEFE method encourages combination of entrepreneurial training course with delivery of consultancy and financial services

9 Program Phases Decision making on CEFE organization Financial Support Preparatory stage Presentation and evaluation of Business Plans Selection of participants and group formation Main training Coaching: Brain pools Monitoring and evaluation

10 1. DECISION ON CEFE ORGANIZATION Community analysis Identification of a local stakeholders Justification of feasibility of CEFE organization 2. PREPARATORY STAGE Dissemination of information Selection of venue for program organization Preparation of training materials and stationery required for program organization

11 3. SELECTION OF PARTICIPANTS AND GROUP FORMATION Study of applications and short-listing participants Motivational workshop Interviews Orientation workshop Final selection of participants

12 Main selection criteria for participation are the following: Existence of realistic and clear business idea; Strive for entrepreneurship and motivation; Work done for undertaking planned activity; Corresponding skills; Some knowledge in the sphere of interest; Availability of some material resources.

13 Orientation workshop Day 1 - Presentation of CEFE program structure, principles and methodology - Clarification of the participants expectations - Presentation of the training structure - Outlining the entrepreneurial characteristics - Test on the entrepreneurial characteristics Day 2 - Presentation of success tools (vision, goal-setting, strategy) -Game To be or not to be which enables the participants to demonstrate their entrepreneurial skills and assess their impact on the success Day 3 - Generation of business ideas through brainstorming - Selection of business ideas * macro selection * micro selection * SWOT

14 4. MAIN TRAINING Specification of the objectives/expected outcomes of the training Specification of the main training structure Methodology of the training Schedule of the main training

15 Main topics Business idea development Marketing Management Production planning & net cost calculation Financial planning & cash flows How to register a legal entity in Armenian Basic Accounting Tax Legislation Duration is 80 hours As a result of the training business ideas turn to realistic and sustainable business plans

16 5. PRESENTATION AND EVALUATION OF BUSINESS PLANS Presentation of business plans Program evaluation by participants Award of certificates

17 6. FINANCIAL SUPPORT Credit Amount Maximum 3 mln AMD, equivalent to 7500 USD Annual interest rate 10-12% Duration Maximum 3 years Collateral 100% Guarantee provided by SME DNC of Armenia Target group Start-up businessmen Participants presenting most realistic business plans get financial support and remain under the support umbrella of the SME DNC of Armenia on the way of their growth and development

18 7. COACHING: BRAIN POOLS Group discussions Individual consulting Needs Assessment 8. MONITORING AND EVALUATION Evaluation of the program outcomes Ongoing monitoring

19 Initial installment Revolving Fund USD Total SME DNC UNDP 13, , , , , Other Donors 19, , Total 33, , , , , , ,736.02

20 CEFE as an effective tool: Development of their entrepreneurial knowledge 91% Their personal growth 93% Development of their business 86% 98% of entrepreneurs with 1-2 employees and 100% of entrepreneurs with 6-10 employees said that their income and turnover increased by at least 30% after participation in CEFE program. Up today, CEFE is considered particularly effective and successful when applied to those with weak educational background and/or income. CEFE programs resulted in creation of new jobs.

21 Accomplishments Years * Number of participants Number of business plans Number of registered businesses Registered businesses, (%) Number of start-ups received financial support Number of registered businesses, currently active 2012* 6 months Total % 22% 27% 32% 28% 25% 27% 26% Survival rate 66% 68% 72% 79% 78% 79% 79% 74% Number of created new work places

22 Dental clinic in city Vanadzor, Lori region Ceramic ware in Village Vaghatin, Syunik region

23 "Wild Travel Eco and photo safari tourism agency in Yerevan Semi-finished meat products cinty Stepanavan, Lori marz Fast Cleaning Service, Yerevan

24 Implementation of Sector Specific Programs Combination of Business training with the technological Training Provision of support for purchasing an equipemt Cearfull selection Good vorking relations with local authorities and other local stakeholders Ongoing monitoring

25 CEFE method Possibility of ccombination of training component with delivery of consultancy and financial services

26 Fund Small and Medium Entrepreneurship Development National Center of Armenia Tel.: (374 10) Fax: (374 10) URL: