1 / 14

JOBS Project Overview

JOBS Project Overview. Joint project of the Ministry of Labor and Social Policy (MLSP) and UNDP Aims at supporting micro and small business development in order to create long-term sustainable jobs Established a network of 40 business centers (BC) and 10 business incubators (BI) across Bulgaria

early
Download Presentation

JOBS Project Overview

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Job Opportunities through Business Support – JOBS Project

  2. JOBS Project Overview • Joint project of the Ministry of Labor and Social Policy (MLSP) and UNDP • Aims at supporting micro and small business development in order to create long-term sustainable jobs • Established a network of 40 business centers (BC) and 10 business incubators (BI) across Bulgaria • BCs/BIs are local NGOs and provide an integrated package of non-financial and financial business support services • Operates a Financial Leasing Scheme

  3. Financial Leasing Scheme Overview • Designed by UNDP on the basis of a pilot microfinance project in Bulgaria • Targeted at start-ups, micro and small enterprises without access to bank financing • Managed locally by the business centers • Utilized for purchase of productive machinery and equipment leased to local companies by the BCs • Targets regions with long-term unemployment • Total fund of $5.150 million

  4. Why choose leasing? • Solves the main problem faced by the target group: lack of collateral. The leased asset serves as the only collateral required • Lowers the risk of misuse of funds – no cash provided • Financially more secure – the BC keeps ownership of the equipment until the full repayment of the lease • Allows the BC to legally manage the fund under the existing Bulgarian legislation

  5. Financial Leasing Scheme Terms for Existing Micro and Small Companies • Repayment period – up to 36 months • Grace period – up to 6 months • Equal monthly installments • Market interest rate – national base interest rate plus 10 percentage points • Maximum amount financed – $15,000 • Mandatory client contribution – minimum 20%

  6. Financial Leasing Scheme Terms for Unemployed: Start with Leasing • Repayment period – up to 48 months • Grace period – up to 6 months • Equal monthly installments • Market interest rate – national base interest rate plus 10 percentage points • Maximum amount financed – $3,000 • Mandatory client contribution – minimum 10%

  7. Client Eligibility Criteria • The business must be registered and/or operate in the BC region • Only micro and small companies are eligible: • Less than $600,000 annual revenues from sales • Less than $500,000 fixed assets • Less than 50 employees at the time of application • Only production/service companies are eligible • The company must create new long-term jobs after accessing the scheme

  8. Eligible Assets under the Scheme • Machinery and equipment for production or provision of services • No leases allowed for consumer use • The candidate must present three offers from suppliers about the requested machinery/equipment • Purchase of second-hand equipment allowed

  9. Application Process • Mandatory training in business planning provided by the BC • Preparation of business plan for start-up businesses and financial analysis of existing companies • Review of application by local leasing committee composed of key stakeholders: municipality, labour office, bank, business representative • Final approval by JOBS Project financial leasing experts

  10. Lease Monitoring and Evaluation • Monthly data collection and analysis to measure the performance of the FLS • Monthly visits during the first three months after disbursement of the lease • Quarterly visits after the first three months of the lease • External in-depth evaluations to assess FLS market relevance and effectiveness and to validate results

  11. Financial Leasing Scheme Results • $4.96 million disbursed in leases • 847 micro and small companies served – sewing and wood-processing companies, food producers, farmers, service companies • 27% of clients are start-up businesses • Over 2,650 jobs created (42% for women) • Portfolio at risk (over 30 days past due) – 2,98%

  12. Key Success Factors • The scheme is set up and operated with the close involvement of key community actors, ensuring local ownership, accountability and transparency • The FLS product is designed in such a way as to minimize the risk of misuse of funds and increase financial security: the NGO keeps ownership of the equipment until the full repayment of the lease • Human resource development and ongoing capacity building at all FLS levels • Strict delinquency control by regularly monitoring lease utilization

  13. LessonsLearned • Continuous work with clients is crucial in order to build their capacity and to integrate feedback into improved FLS service • The leasing scheme leads to better impact if combined with non-financial business support services • Close partnership between BCs and local banks is essential for meeting the needs of financing of the local business community

  14. JOBS Project Contacts tel.: (+359 2) 9696 170/174 fax: (+359 2) 974 30 89 e-mail: office@jobs-bg.org address: Bulgaria, Sofia 1784 7th kmTsarigradsko Chaussee Blvd. www.jobs-bg.org

More Related