Innovative practices in Bulgaria
Sharing innovations for improving local self-government
Assistance to Small and Medium Businesses for Women
Devin Business Center
Background
The concept to set up a Business Center in Devin was authored by the UNDP and was supported by the Bulgarian Women s Union in the town of Devin, Devin Municipality and the National Employment Service. The Devin region was chosen because of high unemployment rates (24.6%), of which more than 50 per cent are women. No jobs are being offered to women on the territory of Devin Municipality, therefore starting their own businesses is generally their only option.
The concept to set up a Business Center in Devin was authored by the UNDP and was supported by the Bulgarian Women s Union in the town of Devin, Devin Municipality and the National Employment Service. The Devin region was chosen because of high unemployment rates (24.6%), of which more than 50 per cent are women. No jobs are being offered to women on the territory of Devin Municipality, therefore starting their own businesses is generally their only option.
Practice
The Devin Business Center has been in operation since June 1998 and is currently accomplishing an UNDP pilot project, aimed at providing greater business opportunities for women in the region. The Center thus created offers advice, information and technical assistance, orgaizes and holds zed training sessions and workshops on various topics related to business, supports small and medium businesses in their search for sources of finance and finalization of loan documents.
The Small and Medium Business Assistance Scheme is part of the project and offers access to financing for women who do not possess collateral sufficient for banks. Under the Scheme, the Business Center shall act as third party guarantor by providing guaranties in the form of hard currency or Bulgarian Lev on loan, disbursed to the client within an amount not exceeding 80 per cent of the total investment. The Devin Business Center does the selection of clients in accordance with the following selection procedure:
The key criteria are that the borrowers should be women, should have a company registered on the territory of Devin Municipality and operate on the said territory.
The proposal that is submitted must provide jobs for women, must not be in the commercial sector, must not constitute securities transactions on the stock exchange, must not be environmentally hazardous; must not constitute operations or events of a political, religious or ethnic nature and must not represent bad debt repayment to other financial institutions.
Following a mandatory five-day training in Marketing, Finance and Business Planning, the candidates will take two tests and, having answered more than 80 % of questions correctly, will qualify for financial support.
The successful candidates shall draft a business plan on their own or with the assistance of the Business Center financial consultant. They shall submit documents specifically relevant to the business proposal and a financing application.
The consultant shall be under obligation to conduct the necessary research, make an on-site inspection and prepare a statement of opinion on the approval of the collateral request by the Expert Financial Council.
Anyone interested may attend the courses organized by the Center, they are not limited only to applicants for financing. Applications have already been submitted by three villages in the Devin Municipality to hold such as a training course locally. There is no requirement that all successful course participants should submit a project upon completion of the course. Under the Scheme, one may apply for financing when they wish and once the necessary documents have been drawn up.
The Devin Business Center has been in operation since June 1998 and is currently accomplishing an UNDP pilot project, aimed at providing greater business opportunities for women in the region. The Center thus created offers advice, information and technical assistance, orgaizes and holds zed training sessions and workshops on various topics related to business, supports small and medium businesses in their search for sources of finance and finalization of loan documents.
The Small and Medium Business Assistance Scheme is part of the project and offers access to financing for women who do not possess collateral sufficient for banks. Under the Scheme, the Business Center shall act as third party guarantor by providing guaranties in the form of hard currency or Bulgarian Lev on loan, disbursed to the client within an amount not exceeding 80 per cent of the total investment. The Devin Business Center does the selection of clients in accordance with the following selection procedure:
The key criteria are that the borrowers should be women, should have a company registered on the territory of Devin Municipality and operate on the said territory.
The proposal that is submitted must provide jobs for women, must not be in the commercial sector, must not constitute securities transactions on the stock exchange, must not be environmentally hazardous; must not constitute operations or events of a political, religious or ethnic nature and must not represent bad debt repayment to other financial institutions.
Following a mandatory five-day training in Marketing, Finance and Business Planning, the candidates will take two tests and, having answered more than 80 % of questions correctly, will qualify for financial support.
The successful candidates shall draft a business plan on their own or with the assistance of the Business Center financial consultant. They shall submit documents specifically relevant to the business proposal and a financing application.
The consultant shall be under obligation to conduct the necessary research, make an on-site inspection and prepare a statement of opinion on the approval of the collateral request by the Expert Financial Council.
Anyone interested may attend the courses organized by the Center, they are not limited only to applicants for financing. Applications have already been submitted by three villages in the Devin Municipality to hold such as a training course locally. There is no requirement that all successful course participants should submit a project upon completion of the course. Under the Scheme, one may apply for financing when they wish and once the necessary documents have been drawn up.
Results
So far, thirty people, of which 24 women and 6 men, have been trained in the Marketing, Finance and Business Planning obligatory course for finance applicants. Of these, 22 passed the tests successfully (18 women and 3 men). To date, 8 people have stated their need for finance and concrete ideas, the rest are in the process of formulating their concepts. Expectations are that by the end of March, 1999 the first project shall receive financing. The Center is launching computer literacy, English language and typing courses and plans to run courses in accounting, family hostelry, rural tourism, advertising and others.
So far, thirty people, of which 24 women and 6 men, have been trained in the Marketing, Finance and Business Planning obligatory course for finance applicants. Of these, 22 passed the tests successfully (18 women and 3 men). To date, 8 people have stated their need for finance and concrete ideas, the rest are in the process of formulating their concepts. Expectations are that by the end of March, 1999 the first project shall receive financing. The Center is launching computer literacy, English language and typing courses and plans to run courses in accounting, family hostelry, rural tourism, advertising and others.
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