As part of Georgia’s ‘Year of Financial Literacy’, the National Bank of Georgia (NBG) has developed a financial education programme for micro and small enterprises together with the Development Facility of the European Fund for Southeast Europe (EFSE DF), and with the involvement of the Export Development Association (EDA).
Implementation began in July 2018, with experts from the EDA training entrepreneurs in the regions of Samtskhe-Javakheti and Kvemo Kartli in Akhaltsikhe and Tbilisi.
The programme aims to equip both current and future micro and small business owners with essential knowledge and skills for making sound financial decisions based on their own business needs and capacities. A brochure and training model were created to specifically address the needs of this target group.
Programme beneficiaries will learn about the sources of business finance, relevant financial services, and approaches and indicators used for business assessment. The programme will also help beneficiaries understand their own rights and responsibilities, independently evaluate short and long-term business needs and creditworthiness, and choose the most appropriate financial products and services. In addition, they gain insight into financial reporting and how to effectively plan future steps to avoid financial pitfalls.
The programme was developed in an easy and user-friendly approach that includes case studies, tips, and examples to help beneficiaries apply theoretical knowledge in practice. Although the programme primarily targets micro and small enterprises, the practical advice that it offers can be relevant and useful for larger enterprises, as well.
Markus Aschendorf, Chairman of the EFSE Development Facility, stated: “Helping entrepreneurs thrive is one of the pillars of our mission, and the NBG is an important partner in this endeavour. Georgia is a country burgeoning with ideas and business potential; the EFSE DF is committed to providing entrepreneurs with the tools and skills they need not only to establish and enhance their own businesses, but in so doing, to support the positive development of the economy as a whole.”
“Financial education for entrepreneurs is very important for the sustainable development of the business sector,”added Koba Gvenetadze, Governor of National Bank of Georgia. “Considering that financial products and services offered on the market are quite diverse and complex, in the absence of relevant knowledge or expert advice, making sound financial decisions is quite challenging for all consumers – all the more so for entrepreneurs. Therefore, improving access to financial education for different target groups is an important objective for NBG.”
The brochure and accompanying practical templates are available for free for all interested parties on NBG website.
About the European Fund for Southeast Europe
The European Fund for Southeast Europe (EFSE) was initiated by KfW Development Bank (KfW) with the financial support of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission under the EU4Business initiative.
EFSE focuses on assisting local financial sectors in strengthening their ability to ensure adequate and sustainable financing. The funding the EFSE provides as finance primarily for micro and small enterprises (MSEs) – but also for private households in the form of home improvement loans – is channelled to these loan customers through local partner lending institutions.
The EFSE Development Facility was created in 2006 to support the fund’s development finance mandate. It deploys effective, targeted and innovative technical assistance to maximise the impact and extent of the fund’s development finance mandate in target countries.