The project will directly target market players providing business advisory services to rural SMEs and start-ups (i. e. national agencies, business associations and consultancies). Their capacities will be enhanced for increasing the effectiveness of their services and thus facilitating SMEs’ access to finance.

The end beneficiaries of the project will be women and men in rural areas of Georgia, who are SME owners or employees. Enhanced access to finance will allow rural SMEs to upscale and diversify their business operations that stimulate job creation. 1’500 SMEs (of which 450 owned by women, 75 owned by ethnic minorities, 500 small-holder farmers) will increase their net additional income by CHF 5.5 million, creating 175 full time equivalent jobs. At least 30% of those having new or improved employment will be women and 5% will represent ethnic minorities.

Banks will benefit indirectly from the project (in Phase 1 Liberty Bank and Credo Bank), reaching out more effectively to their clients in rural areas.

The project will pursue the following two outcomes:

1. Rural SMEs sustainably grow through better access to finance. At least 1’800 SMEs will take up business support services and file 2’500 loan and grant applications with success rates of 80% and 30% respectively.
2. Market players have improved capacities to respond to the needs of rural SMEs for access to finance. At least 10 agencies will provide sustainable, including fee-based, services to rural SMEs resulting in total CHF 5.7 million net additional volume of loan/leasing grants approved for them.

Erwartete Resultate:  

• Enhanced awareness and access of rural SMEs to appropriate finance and BSS; 
• Enhanced financial literacy and management capacities of rural SMEs; 
• Capacities of national agencies, business associations, consultancies and other sector players increased and aligned with rural SME needs and demand; 
• Communication mechanisms are in place among market players to better understand and lobby for rural SME needs.

Resultate von früheren Phasen:  

• The implementing partner conducted studies including market and stakeholders’ analyses to obtain the necessary data on rural SME sector (in particular baselines and targets). 
• An intervention strategy was elaborated and target rural SME sectors were defined. 
• The entry points were clarified for the capacity building of the key stakeholders. 
• The Project Document package was developed for the Main Phase.
• Organization, steering and monitoring arrangements were established.