UNIDO is scaling-up operations in Somalia: post-crisis support for SMEs development is the new flagship
Somewhere in SOMALIA, JUNE 1st 2020 — Somalia faced three decades of conflict causing completed destruction of key economic infrastructure, large scale migration and stunted economic growth. This resulted in the existing SMEs to stop their productive activities and gradually shift towards trading activities. Years of isolation and instability made the SME sector to be regressive and losing capacity to support the development of productive activities.
In recent months, UNIDO in Somalia is implementing a strategic project, funded by the government of Italy and implemented in cooperation with the Ministry of Commerce and Industry and the Somali Chamber of Commerce and Industry to establish a network of Enterprise Development Units (EDUs) in Mogadishu, Baidoa and Kismayo. Since March, and despite the outbreak of the COVID19 pandemic, the EDUs have been providing over 138 hours of Entrepreneurship Development training and over 80 hours of Business Counselling support including site-visit to SMEs to upgrade the business skills and understanding of 90 potential and existing Somali entrepreneurs.
The most surprising in engaging with the Somali entrepreneurs is the enthusiasm and eagerness to learn, in particular the openness in describing their weaknesses. Consequently, allowing the UNIDO trained Trainers and Counsellors to provide the right know-how and support to the entrepreneurs. As result, several potential entrepreneurs accelerated in realizing their ideas for business (Business Plan), while the existing changed their traditional way of doing business. It worth mentioning that Book-Keeping methods, Marketing Management, Inventory Management and Costing are implemented successfully. Over 85% participating entrepreneurs deemed the Training of Entrepreneurs and Business Counselling ‘useful’ while almost 80% indicated that it upgraded their skills and knowledge.
In the coming months, UNIDO Somalia will complement the upgraded skills through the EDUs with access to finance encouraging sustainable entrepreneurship and in turn realizing many entrepreneurs’ dreams, creating jobs and promoting inclusive economic growth.
