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What is JOBS?

What is JOBS?. Joint MLSP/UNDP business support model promoting sustainable employment Viable network of 3 9 Business Centres (BCs), 10 Business Incubators (BIs) and 5 window offices across Bulgaria Timeframe: 2000 – 2006 Overall budget: US$ 20,669,520. Overall objective.

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What is JOBS?

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  1. THE BULGARIAN EXPERIENCE

  2. What is JOBS? • Joint MLSP/UNDP business support model promoting sustainable employment • Viable network of 39Business Centres (BCs), 10 Business Incubators (BIs) and 5 window offices across Bulgaria • Timeframe: 2000 – 2006 • Overall budget: US$ 20,669,520

  3. Overall objective To support the growth of micro and small businesses throughout Bulgaria in order to create long-term sustainable jobs and boost local economic development

  4. The key partners • UNDP: developed JOBS model, advocated for its adoption as national policy, supports and monitors implementation • The Bulgarian Government: serves as project implementation agency (MLSP), integrated JOBS model into national policy, provided 96% of project budget • 44 local municipalities: closely involved in BC/BI establishment and development, provide non-financial and financial contribution to project implementation • Over 200 local companies: closely involved in BC/BI establishment and development; actively participate in the BCs initiatives; closely involved in the process of financial and non-financial services delivered to the entrepreneurs

  5. The JOBS methodology • Establishment of BCs on the basis of public private partnerships • operating as locally-based NGO; • founding members: public and private sector partners; • facilitating the dialogue between the public and the private sector. • Local ownership: management of the NGO through the local partners • Broad partnership between public and private interests: guarantees that the BCs will adequately serve the entire community

  6. Main project phases • Inception: integration of successful UNDP business support models (2000) • Demonstration: JOBS project implementation (2001-2002) • Streamline with the ALM policy: project expansion as part of national policy and consolidation of new components (2003-2004) • Exit strategy: development of capacity to ensure BCs viability through a national association of the BCs (2003-2006)

  7. Lessons learnt: Carefully select target areas • Assess the assistance absorption capacity of the target communities • Initial approach to establish business service providers in remote and underdeveloped communities could not always ensure the desired impact • Selection methodology revised for project expansion based on lessons learnt • Criteria refocused to identify active communities committed to local development: places that have basic capacities in place and entrepreneurial potential to make full use of project intervention

  8. Lessons learnt: Viability vs. Sustainability • Major consideration since project outset, ingrained in project methodology • A variety of mechanisms put in place to prepare BCs to function independently within a timescale of three to four years • Emphasis on enhancing BC ability to generate revenues and attract external resources • Experience shows that 100% cost-recovery from services may be un unfeasible target, if it creates a conflict with BC developmental mission • Currently BCs organizationally and financially viable, combining a variety of income sources

  9. Challenges: Exit strategy • Exit strategy designed as early as second year of implementation • Development of adequate tools and capacity to ensure BC viability and implement exit strategy • Gradual reduction of project subsidy: • 100% in the first year, 70% in the second year, 40% in the third year, 20% in the fourth year • BC association established (2003) to take over key strategic functions long term and ensure continued impact • Government committed and willing to use BC capacity beyond project end

  10. Key success factors • Strategic long-term support from the central and local governments • Local ownership: reliance on local resources, development of human capital and capacity • Flexibility to adapt and stand up to new challenges • Networking between the BCs to maximize the strengths of scope • Partnerships with a broad range of players

  11. Key risks • Balance between mission and viability • Capacity of local stakeholders to adequately support and provide strategic guidance to BC development • Sustained impact: need to stay in touch with the local reality and respond to emerging new needs in the community • Capacity of the BC association to safeguard capacity, build on achievements and advocate for micro and small businesses on a policy level

  12. Things to remember • Start small and slow, adjust, show results and then fund raise for larger amounts of money • Hire the appropriate staff (risk takers, pro-active, committed, well respected in the community) • Provide hands-on assistance and the necessary mechanisms for business support • Establish strong local and national partnerships • Balance between servicing the original target group and surviving as an NGO

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