SME Training and Coaching Loop
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SME-Loop Logo
GIZ
Small and medium-sized enterprises (SMEs) are considered an engine for economic and social development. However, framework conditions for their development are often unfavorable and support is not tailored to the context and situation of the individual enterprise. Responding to this need, the SME Loop approach was developed, refined and scaled up by different projects implemented by GIZ and financed by BMZ. The SME Loop is a combined training and coaching approach. It aims at increasing competitiveness, generating income and boosting the demand for labour. The SME Loop is implemented over a six to nine month time span. It consists of seven phases of alternating individual coaching sessions and class-room business training. Service providers, financial institutions, political partners and other relevant actors have been associated during different stages of implementation to insure the sustainability of the achieved impacts.
Last update: 25 Feb 2025
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Contexto
Défis à relever
One key strategy to combat poverty is to support sustainable growth of small and medium-sized enterprises (SMEs). SMEs form the majority of all enterprises in almost all countries worldwide, they employ more than two thirds of the global workforce, and they contribute significantly to economic growth. Nonetheless unfavorable business environments impede the survival of small businesses, as well as investment and growth. On the individual level entrepreneurial skills are often lacking. Promotional measures run by the state or by chambers and associations frequently take insufficient account of the specific needs of SMEs. Even though various approaches for the support of entrepreneurs already exist, the SME Loop is unique due to its combination of training, coaching and other components such as business linkages that lead to fast visible results for the benefit of the entrepreneur, its employees, and the society the enterprise is acting in.
Ubicación
Benin
Burkina Faso
Ivory Coast
The Gambia
Ghana
Cameroon
Mali
Malawi
Niger
Mozambique
Nigeria
Togo
Tunisia
Kenya
Senegal
Sierra Leone
West and Central Africa
North Africa
East and South Africa
Procesar
Summary of the process
These bulding blocks lead to a successful and effective training, which responds to the needs of the participants and a sustainable anchoring of what has been learned.
Impacts
- Implementation of the approach via GIZ and numerous partner organisations in 16 countries and 23 projects and training of 398 SME Loop Coaches in total
- More than 7.500 entrepreneurs completed the SME Loop including 60% female and 36% young entrepreneurs
- More than 8.000 new full-time jobs have been created
- More than 3.600 businesses were formalized and officially registered
- Almost ¼ of all trained entrepreneurs accessed a loan to expand their businesses
- ¾ of the enterprises improved their annual turnover
Beneficiaries
Entrepreneurs, Small and medium-sized enterprises
Sustainable Development Goals
SDG 1 – No poverty
SDG 2 – Zero hunger
SDG 5 – Gender equality
Story
Annielle Houngbo from Porto-Novo, Benin tells us how the SME-Loop coaching and training program helped her with her business of processing agricultural produce: “Thanks to the SME Loop Coaching and Training Program, I improved the performance of my business. I now have a trade register that allows me to operate in the formal sector, I have taken out operating loans thanks to which I have increased my production capacity
and I expanded my store. In addition to this I improved the visibility of my business and started networking with other entrepreneurs. “
