SMEs and women entrepreneurs receive welcome boost

Small and medium sized businesses (SMEs) and women entrepreneurs in the Eastern Partnership countries (which includes Armenia, Georgia and Ukraine) have both received a boost this week as the European Bank for Reconstruction and Development (EBRD) and the European Union (EU) announce increased support in the months ahead. The EBRD set up the Small Business Initiative back in 2014 and this news comes as a part of this programme.

No less than €8 million is being made available in order to provide SMEs with business advice in the countries named previously along with Azerbaijan, Belarus and Moldova. The main aim of the funds is to provide SMEs with sufficient support to allow them to grow through increased marketing, IT support, energy efficiency and more. Nearly half of the projects in Georgia, Moldova and Ukraine will be providing SMEs with opportunities via the Deep and Comprehensive Free Trade Area (DCFTA). Both the EBRD and the EU hope that the funding will be used to increase companies’ ability to compete by easing their finances and providing them with new opportunities. It is believed that over 500 SMEs will see the benefit of this movement and even more will see the benefit from the resulting opportunities and increased awareness. In addition to this, over 2,500 jobs will be created providing all six economies with a fantastic boost.

Furthermore, over €5 million will be given to the EBRD’s Women in Business Programme from the EU in the same six countries. Credit lines, support, training, mentoring and advice are all provided to those SMEs led by women by the programme already with the extra financing from the EU set to support risk management and assistance. The EBRD’s Early Transition Fund and the Government of Sweden will also be providing support with the project. The Early Transition Fund has taken off in recent years and has really caught the imagination thus receiving help from the United Kingdom, the Netherlands, Switzerland and a number of other countries.

EBRD Managing Director for SME Finance and Development, Claudio Viezzoli, has said “SMEs in these six countries account for over 95% of all enterprises but contribute an average of only 30% to GDP. We believe that a vibrant SME sector is vital for a well-functioning economy and that, with the right support, the strong entrepreneurial spirit we see in this region can reach its full potential. I am very pleased that we can continue to partner with the European Union in this work.”

The EU is well known for supporting the private sector with a particular focus on SMEs and they show no signs of slowing down after this recent agreement. Having been involved in a number of projects before this one, the EU have been leaders in supporting SMEs via finance, advice and more with the main aim of stimulating economic growth. In addition to this, the EU and the EBRD also work together on a number of projects especially when it comes to the countries that have signed Associate Agreements. Georgia, Moldova and Ukraine have all benefitted from previous involvements with the EU and the EBRD mainly from financial support and advice.

Nearly €9 billion has been invested by the EBRD in the Eastern Partnership countries since its first project a number of years ago. As a result, thousands of small SMEs, some of which are women-led, have been able to use the help to grow and in turn, help the economy to grow through profit and jobs being made available.

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