Rural Small and Medium Enterprises Development in Georgia Phase 2

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. 

The project will pursue  the  following two outcomes:  

1. Rural SMEs grow sustainably and become more resilient through Business  Support Services (BSS) and Access to Finance (A2F).  
2. Market players provide sustainable BSS to improve financial management practices, market access and A2F of SMEs.  

Resultados previstos:  

• 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. 

Resultados de las fases anteriores:  

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.