Kickstart – Business mentoring and access to finance for young micro-entrepreneurs

The Project

As part of the project, sustainable improvements in the management capacities of young, marginalized entrepreneurs were introduced through business mentoring, e-learning on financial and business literacy and access to loan products.

Together with local partner organisations, a local network of dedicated business mentors for young, marginalised micro-entrepreneurs was established. These mentors shared their practical experience in founding successful businesses. Learning groups were set up to facilitate peer exchange among the micro-entrepreneurs. In addition, 
(e-)learning and advisory services on financial literacy and business development were provided and made accessible to the micro-entrepreneurs via a platform. The project also supported partner microfinance institutions (MFIs) partner micro-finance institutions (MFIs) to establish and pilot functional models for access to formal financial products and services for marginalized (start-up) micro-entrepreneurs.

Project Goals

1. Micro-business mentoring
   Through local partner organisations, the project supports the establishment of a micro-business mentor network. Marginalized start-up micro-entrepreneurs are assisted by these mentors in improving their business competencies and performance and generate the required capital to grow. In this mentoring process, young entrepreneurs are supported in reflecting on and improving their micro-businesses, especially where it comes to finances, positioning, marketing and sales, business linkages, client relations, supplier relations, logistics, personnel, and taxes.
2. (E-)Learning for financial literacy and business management
   On the one hand, start-up microentrepreneurs have access to in-person training on financial literacy, loan products, wise borrowing, smart marketing and good business management. They are complemented with the “ten things” every start-up entrepreneur should know about micro-business management, especially regarding marketing, finances, tax regulations, dealing with personnel, distinguishing themselves and being in control of the business. On the other hand, simple and short e-learning modules (accessible by smartphone) are developed and made available free of charge on a platform to all Albanians, who wish to start or have already started their micro-business.
3. Loans for start-ups and marginalised micro-entrepreneurs
   The specific loan products of partner microfinance institutions (MFIs) will be adapted, and new products will be developed that are tailored to the needs and situation of the target group. The e-learning certificates and references of the mentors are used as evaluation criteria. The MFIs are assisted in promoting the loan product and in securing the required guarantee funds. The entrepreneurs are actively stimulated to also consider private loans and mobilize their savings

Financing partners

This project was financed by the Medicor Foundation, Stiftung Fürstlicher Kommerzienrat Guido Feger und der Enabling Microfinance Foundation. It is part of the Swisscontact Development Programme, which is co-financed by the Swiss Agency for Development and Cooperation (SDC), Federal Department of Foreign Affairs FDFA.