Start-up Business Support
Program
Lilit Apujanyan
International Cooperation Programs Coordinator SME Development National Center of Armenia Enterprise Europe Network Correspondence Center in Armenia
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Information
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Consulting
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Training
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Start-up business support
program
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Sells Promotion
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Local Economic Development
Initiatives
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Development and Introduction of
New Business Models
Technical
• Loan Guarantees for Operating
Businesses
• Financial Support to Start-ups
• Interest Rate Subsidizing
• Equity Financing
Tools and Instruments
establishment of new SMEs and workplaces in
the marzes of Armenia,
Support in realization of new business
initiatives,
upgrading business knowledge and skills of
start-ups,
facilitating access to finance.
Goals and Objectives:
CEFE
Competency based Economies
through Formation of Enterprises
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CEFE training of trainers (ToT)
courses for SME DNC’s staff.
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Implementation of pilot CEFE
training courses in selected
regions of Armenia (learning by
doing).
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Elaboration of CEFE manual
WHY CEFE OR WHAT IS CEFE?
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CEFE
is a comprehensive set of training instruments
using an action-oriented approach and experiential
learning methods to develop and enhance the business
management and personal competencies of a wide
range of target groups, mostly in the context of income
and employment generation and economic
development. CEFE has proven to be a very successful
approach for promotion of small and medium
enterprises, employment, income and economic growth.
It has been introduced in 150 countries during the last
twenty years
WHY CEFE OR WHAT IS CEFE?
Principle #1 -
irrespective of educational background,
knowledge and experience, entrepreneurs can obtain the
necessary knowledge and develop their entrepreneurial skills.
Principle #2 -
the priority of “action-oriented” methods.
Principle #3 -
CEFE widely employs adult training methods and
tools.
Principle #4 -
CEFE deliberately places the customer, as well as
the idea that the whole business is built around the customer, in
the center of entrepreneurial activity.
Principle #5 -
CEFE method encourages combination of
entrepreneurial training course with delivery of consultancy and
financial services
Program Phases
Decision making on CEFE organization Preparatory stage Selection of participants and group formation Main training Presentation and evaluation of Business Plans Financial Support Coaching: Brain pools Monitoring and evaluationN CEFE ORGANIZATION
1. DECISION ON CEFE ORGANIZATION
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Community analysis
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Identification of a local stakeholders
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Justification of feasibility of CEFE
organization
2. PREPARATORY STAGE
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Dissemination of information
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Selection of venue for program organization
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Preparation of training materials and
3. SELECTION OF PARTICIPANTS AND GROUP
FORMATION
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Study of applications and short-listing participants
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Motivational workshop
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Interviews
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Orientation workshop
Existence of realistic and clear business
idea;
Strive for entrepreneurship and
motivation;
Work done for undertaking planned
activity;
Corresponding skills;
Some knowledge in the sphere of
interest;
Availability of some material resources.
Main selection criteria for participation
are the following:
Orientation workshop
• Day 1
- Presentation of CEFE program structure, principles and methodology - Clarification of the participants’ expectations
- Presentation of the training structure
- Outlining the entrepreneurial characteristics - Test on the entrepreneurial characteristics
• Day 2
- Presentation of success tools (vision, goal-setting, strategy)
-Game “To be or not to be” which enables the participants to
demonstrate their entrepreneurial skills and assess their impact on the success
• Day 3
- Generation of business ideas through brainstorming - Selection of business ideas
* macro selection * micro selection * SWOT
4. MAIN TRAINING
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Specification of the objectives/expected outcomes of
the training
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Specification of the main training structure
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Methodology of the training
Main topics
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Business idea development
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Marketing
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Management
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Production planning & net cost calculation
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Financial planning & cash flows
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How to register a legal entity in Armenian
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Basic Accounting
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Tax Legislation
Duration is 80 hours
As a result of the training business ideas turn to realistic and sustainable business
5. PRESENTATION AND EVALUATION OF BUSINESS
PLANS
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Presentation of business plans
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Program evaluation by participants
6. FINANCIAL SUPPORT
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Credit Amount
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Maximum 3 mln AMD , equivalent to 7500 USD
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Annual interest rate
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10-12%
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Duration
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Maximum 3 years
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Collateral
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100% Guarantee provided by SME DNC of Armenia
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Target group
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Start-up businessmen
Participants presenting most realistic business
plans get financial support and remain under
the support umbrella of the SME DNC of
Armenia on the way of their growth and
7. COACHING: BRAIN POOLS
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Group discussions
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Individual consulting
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Needs Assessment
8. MONITORING AND EVALUATION
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Evaluation of the program outcomes
Revolving Fund
Initial installment 2006 2007 2008 2009 2010 2011 Total SME DNC 100222.74 143202.45 243425.19 UNDP 13,888.89 29,916.67 25,735.83 24,125.00 18,700.00 112366.39 Other Donors 19,444.44 37,500.00 56944.44 Total 33,333.33 67,416.67 125,958.58 143,202.45 24,125.00 18,700.00 412,736.02 USDCEFE as an effective tool:
Development of their entrepreneurial knowledge
91%
Their personal growth 93%
Development of their business 86%
98% of entrepreneurs with 1-2 employees and
100% of entrepreneurs with 6-10 employees said
that their income and turnover increased by at
least 30% after participation in CEFE program.
Up today, CEFE is considered particularly effective
and successful when applied to those with weak
educational background and/or income.
Accomplishments 2006-2012
Years 2006 2007 2008 2009 2010 2011* 2012* Total 6 months Number of participants 131 201 200 195 130 95 53 1005 Number of business plans 62 130 126 165 98 72 37 690 Number of registered businesses 32 44 53 62 36 24 14 256 Registered businesses, (%) 24% 22% 27% 32% 28% 25% 27% 26% Number of start-ups received financial support 20 28 41 63 30 17 10 209 Number of registered businesses, currently active 21 30 38 49 28 19 11 173 Survival rate 66% 68% 72% 79% 78% 79% 79% 74% Number of createdDental clinic in city Vanadzor,
Lori region
Ceramic ware in Village Vaghatin,
Syunik region
"Wild Travel“ Eco and photo safari
tourism agency in Yerevan
Semi-finished meat products
cinty Stepanavan, Lori marz
Fast Cleaning Service,
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Implementation of Sector Specific Programs
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Combination of Business training with the
technological Training
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Provision of support for purchasing an
equipemt
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Cearfull selection
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Good vorking relations with local authorities
and other local stakeholders
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CEFE method
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Possibility of ccombination of training
component with delivery of consultancy
and financial services
Fund “Small and Medium Entrepreneurship Development National Center of Armenia”
Tel.: (374 10) 54 16 45 Fax: (374 10) 54 16 42
E-mail:info@smednc.am
