- Value Proposition
BIC-Uttaron will provide/coordinate technical assistance to the MSME. The content will be defined after an assessment of the MSME and the market they operate in. In addition, BIC-Uttaron will provide the MSMEs in the program a smart card. This smart card provides the MSME some credit that can be used for working capital and/or small investment.
The value proposition must lead to a situation in which the MSME qualifies to apply for bank financing.
- Clients
BIC-Uttaron will focus on early stage existing MSMEs. These MSMEs should be in business for at least 2 years (in some cases 1 year but only for MSME with an innovated concept/product/service). Interested MSMEs will be assessed.
Initial focus will be on MSME in identified industries/districts.
- Key activities
The key activities will be performed partly by BIC Uttaron and partly by the partners. In this section the activities (high level) are discussed based on the primary process. The split between BIC Uttaron and the partners will be decided in due course.
3.1 Contacting and selecting MSMEs
MSMEs that are eligible for support from BIC Uttaron and its partners will be contacted digitally or physically. Existing databases and contacts will be used. It is also a possibility to send out a ‘call for participation’ but this invitation should focus on a specific and limited group (e.g., MSMEs in a specific region). Together with the invitation, a short description is provided of the intentions of BIC Uttaron, the process (assessment, selection, technical assistance and smart card) and the intended outcome. It will also be emphasized that commitment from the MSME is essential.
Selection of the MSMEs to be contacted can be based on years in business (at least 1 or 2 years), gender, industry and/or district in which they operate, criteria derived from the criteria used by the bank and other criteria as defined by BIC Uttaron.
3.2 Assessment
MSMEs that respond positively do this by completing a form that includes the relevant information that will be used, among other things, in the assessment.
The assessment is initially based on the information on the form followed by interviews (digital or face to face).
During the interviews focus is on intention (what is the entrepreneur trying to achieve), motivation, commitment, track record (what has the entrepreneur tried in the past and what were the results).
MSMEs that are positively assessed will receive a message together with a description and planning of the upcoming activities. The MSMEs will be asked to sign a contract.
3.3 Technical Assistance (TA)
The selected MSMEs will be provided with TA in groups (25 MSMEs per group) and a cohort will be 10 groups. The total lead time of the TA is 24 months.
The TA is provided by BIC Uttaron and its partners. The content is determined by the results of the assessment and the ultimate goal: readiness for access to bank finance.
It will be monitored what the participating MSMEs have done with the knowledge and support provided by BIC Uttaron and its partners. This will be done in two ways: some time after each workshop, the MSMEs will be asked how they have put what they have learned into practice. In addition, a formal assessment will take place per MSME halfway through the process (after 12 months) and at the end.
3.4 Smart Card
The participating MSMEs will get a smart card. With this card they have a credit line for working capital and/or small investments. The use of the smart card will be monitored by BIC Uttaron. At any time but at least at the end of the 3 months, the MSMEs should be able to explain what they have done with the money and what the intended and realized result was.