Rural Small and Medium Enterprises Development in Georgia Phase 2
Rural Small and Medium Enterprises (SMEs) in Georgia face significant challenges that hinder their access to capital, technology adoption and entry into new markets. This project leverages Switzerland's expertise in finance and SMEs to address these issues. The aim is to strengthen the resilience and growth of SMEs by improving their access to a wider range of better business support services, ultimately increasing income and employment opportunities for rural women and men.
| Country/region | Topic | Period | Budget |
|---|---|---|---|
|
Georgia |
Employment & economic development nothemedefined
Business support & economic inclusion
SME development |
01.01.2025
- 31.12.2028 |
CHF 4’050’000
|
- Rural SMEs grow sustainably and become more resilient through Business Support Services (BSS) and Access to Finance (A2F).
- Market players provide sustainable BSS to improve financial management practices, market access and A2F of SMEs.
- Enhanced financial literacy and management capacities of rural SMEs
- Enhanced access to market for SMEs
- Improved investments in technology and productive assets
- Capacities of national agencies, lead firms, business associations, consultancies and other sector players are increased and aligned with rural SME needs and demand
- Communication and engagement mechanisms are improved to enhance awareness of rural SMEs of appropriate BSS and finance.
- Other international or foreign NGO North
-
Sector according to the OECD Developement Assistance Commitiee categorisation BUSINESS & OTHER SERVICES
INDUSTRY
Sub-Sector according to the OECD Developement Assistance Commitiee categorisation Business support services and institutions
Small and medium-sized enterprises (SME) development
Aid Type Mandate with fiduciary funds
Technical assistance inclusive experts
Project number 7F09463
| Background | At first glance, macroeconomic indicators suggest growth in Georgia's SME sector. However, deeper analysis and insights from Phase 1 reveal structural inefficiencies that hinder the sector’s overall performance and sustainability. Despite some improvements in access to finance, SMEs face persistent challenges in effectively deploying and managing accessed capital. These challenges are compounded by limited access to technology and markets, which are essential for sustainable SME growth. Particularly rural SMEs struggle with low formalization, workforce shortages, and difficulties in accessing export markets, further exacerbating their ability to compete and contribute to Georgia’s economic stability. |
| Objectives | The goal of the project is increased and more predictable income and jobs for SMEs and employees. |
| Target groups |
Direct beneficiaries will be national agencies, business associations, consultancies and other BSS providers. Their capacities will be enhanced to more efficiently and effectively facilitate SME access to finance, technologies and markets. End Beneficiaries will be rural SMEs: at least 1,750 SMEs will benefit from additional income, reduced costs and/or improved resilience to withstand challenges or disruptions such as market adaptability, operational continuity, technological adaptation. |
| Medium-term outcomes |
The project will pursue the following two outcomes: |
| Results |
Expected results: Results from previous phases: 2,110 people gained new or better employment (41% women, 18% ethnic minorities); 799 SMEs took up loans and grants (37% led by women, 10% - by ethnic minorities), 926 SMEs increased their income, reduced costs or improved resilience; 17 Business Support Services (BSS) providers offer better services to SMEs; SMEs generated CHF 4.8 million of net additional income. Phase 1 insights necessitate increased focus on helping rural SMEs strategically deploy accessed finance, helping them improve access to technology and access to markets for increased sustainability and resilience. Further, phase 1 indicates the importance of helping BSS providers to diversify service provision to rural SMEs, both in terms of variety of services/products offered, as well as in delivery methods. |
| Directorate/federal office responsible |
SDC |
| Project partners |
Contract partner International or foreign NGO Implementing partner
Swisscontact, along with Mercy Corps Europe and the Springfield Centre, was awarded this project through an open tender. Recently, Swisscontact purchased the Springfield Centre. Therefore, starting from Phase 2, the Springfield Centre’s expertise will now be integrated directly into Swisscontact's work.
|
| Coordination with other projects and actors | The project will continue exploring synergy opportunities with other donor-funded initiatives, such as SECO-funded project for development of national factoring platform, SDC-funded VET in Hospitality project, Women Economic Empowerment and USAID-funded Agriculture Trade Diversification Program. The project will also continue identifying and pursuing private sector engagement opportunities, based on lessons learned from Phase 1. |
| Budget | Current phase Swiss budget CHF 4’050’000 Swiss disbursement to date CHF 0 Total project since first phase Swiss budget CHF 4’559’650 Budget inclusive project partner CHF 11’659’650 |
| Project phases | Phase 2 01.01.2025 - 31.12.2028 (Current phase) Phase 1 01.07.2020 - 31.12.2024 (Completed) |
