What is JOBS

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What is JOBS?

• Joint MLSP/UNDP business support model promoting
  sustainable employment
• Viable network of 39 Business Centres (BCs), 10
  Business Incubators (BIs) and 5 window offices
  across Bulgaria
• Timeframe 2000 2006
• Overall budget US 20,669,520

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Overall objective

• To support the growth of micro and small
  businesses throughout Bulgaria in order to create
  long-term sustainable jobs and boost local
  economic development

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The key partners

• UNDP developed JOBS model, advocated for its
  adoption as national policy, supports and
  monitors implementation
• The Bulgarian Government serves as project
  implementation agency (MLSP), integrated JOBS
  model into national policy, provided 96 of
  project budget
• 44 local municipalities closely involved in
  BC/BI establishment and development, provide
  non-financial and financial contribution to
  project implementation
• Over 200 local companies closely involved in
  BC/BI establishment and development actively
  participate in the BCs initiatives closely
  involved in the process of financial and
  non-financial services delivered to the
  entrepreneurs

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The JOBS methodology

• Establishment of BCs on the basis of public
  private partnerships
• operating as locally-based NGO
• founding members public and private sector
  partners
• facilitating the dialogue between the public and
  the private sector.
• Local ownership management of the NGO through
  the local partners
• Broad partnership between public and private
  interests guarantees that the BCs will
  adequately serve the entire community

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Main project phases

• Inception integration of successful UNDP
  business support models (2000)
• Demonstration JOBS project implementation
  (2001-2002)
• Streamline with the ALM policy project expansion
  as part of national policy and consolidation of
  new components (2003-2004)
• Exit strategy development of capacity to ensure
  BCs viability through a national association of
  the BCs (2003-2006)

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Lessons learnt Carefully select target areas

• Assess the assistance absorption capacity of the
  target communities
• Initial approach to establish business service
  providers in remote and underdeveloped
  communities could not always ensure the desired
  impact
• Selection methodology revised for project
  expansion based on lessons learnt
• Criteria refocused to identify active communities
  committed to local development places that have
  basic capacities in place and entrepreneurial
  potential to make full use of project
  intervention

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Lessons learnt Viability vs. Sustainability

• Major consideration since project outset,
  ingrained in project methodology
• A variety of mechanisms put in place to prepare
  BCs to function independently within a timescale
  of three to four years
• Emphasis on enhancing BC ability to generate
  revenues and attract external resources
• Experience shows that 100 cost-recovery from
  services may be un unfeasible target, if it
  creates a conflict with BC developmental mission
• Currently BCs organizationally and financially
  viable, combining a variety of income sources

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Challenges Exit strategy

• Exit strategy designed as early as second year of
  implementation
• Development of adequate tools and capacity to
  ensure BC viability and implement exit strategy
• Gradual reduction of project subsidy
• 100 in the first year, 70 in the second year,
  40 in the third year, 20 in the fourth year
• BC association established (2003) to take over
  key strategic functions long term and ensure
  continued impact
• Government committed and willing to use BC
  capacity beyond project end

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Key success factors

• Strategic long-term support from the central and
  local governments
• Local ownership reliance on local resources,
  development of human capital and capacity
• Flexibility to adapt and stand up to new
  challenges
• Networking between the BCs to maximize the
  strengths of scope
• Partnerships with a broad range of players

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Key risks

• Balance between mission and viability
• Capacity of local stakeholders to adequately
  support and provide strategic guidance to BC
  development
• Sustained impact need to stay in touch with the
  local reality and respond to emerging new needs
  in the community
• Capacity of the BC association to safeguard
  capacity, build on achievements and advocate for
  micro and small businesses on a policy level

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Things to remember

• Start small and slow, adjust, show results and
  then fund raise for larger amounts of money
• Hire the appropriate staff (risk takers,
  pro-active, committed, well respected in the
  community)
• Provide hands-on assistance and the necessary
  mechanisms for business support
• Establish strong local and national partnerships
• Balance between servicing the original target
  group and surviving as an NGO