“Mashro3ak” Your project comes realistic.

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“Mashro3ak” Your project comes realistic.

Egypt
Project Summary
Elevator Pitch

Concise Summary: Help us pitch this solution! Provide an explanation within 3-4 short sentences.

The project is to attract CSR budgets of well established organizations to form a revolving fund to entrepreneurial projects with no or low interest without the complications found in standard financial channels. Access to finance is supported by strong mentorship program to ensure high success rates.

About Project

Solution: What is the proposed solution? Please be specific!

The solution is unique to the Egyptian market based on 3 facts; • The simple and effective structure developed to issue the fund in contrast to the complex procedures found in the financial institutions • Advantage of providing no-interest funds • Mentoring is a main component of the solution to help entrepreneurs succeed in their projects. Mentoring includes training on the basics of running small business as Finance, marketing, management…etc. .The program also assigns each group of entrepreneurs to an expert in their field to enhance their business practices and skills in real life.
Impact: How does it Work

Example: Walk us through a specific example(s) of how this solution makes a difference; include its primary activities.

The social impact is great as entrepreneurs have impact on their immediate surroundings, which helps in creating new jobs, sustaining small businesses and supporting ongoing innovations and converting informal business to formal business. The 9 projects that we funded employed new 46 workers and 4 of the projects purchased new machines to enhance productivity. One of our entrepreneurs used to work from home to prepare food recipes to children suffering from diabetes, allergies and other diseases that need special care in ingredients used without losing the good taste and look. After joining our program, we helped her to have an equipped firm to facilitate production of packaged food to facilitate delivery to customers and connected her to some of the hotels in the area to use her special recipes.
About You
Organization:
Egyptian Junior Business Association, EJB
About You
First Name

Ahmed

Last Name

Nafie

Website
Your Organization
Country

, QHR

About Your Organization
Organization Name

Egyptian Junior Business Association, EJB

Organization Phone

+202 252 840 94

Organization Address

Al Salam Tower Beside Al Salam Int Hospital, Courniche El Nile St., Maadi, Cairo, Egypt

Organization Country

, QHR

Organization Type

Non-profit/NGO/Citizen-sector Organization

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Your solution
Country your work focuses on

, QHR

If multiple countries, please list them here. If your solution targets an entire region, please select it below
Region(s) your solution focuses on:

Range of turnover in your target firms, in USD

Less than $1 Million.

Average turnover in USD of your target firm

$50000

Number of employees in your target firms

5-24.

Average number of employees of your target firm

8

Specify the size, average and range of expected loans or investments in each target firm

The size of investment ranges from $30000 to $100000 per project

What stage is your solution in?

Operating for less than a year

Innovation
How does your proposed innovation leverage public intervention in catalyzing private SME finance?

The project will provide finance to help the entrepreneur start the business and close mentoring to ensure that the business will pass the startup period of the first 2 years in addition to providing access to trainings, economic activities, public exhibitions and that will help to promote more investment programs, corporations and NGOs that target entrepreneurs and small business to participate in financing SMEs. Participating in entrepreneurial events as Global Entrepreneurship Week and other local activities with success stories from our program will also encourage the public authorities to provide more facilities and services to enhance the entrepreneurial environment.

What barriers does your proposed solution address?

Lack of collateral, Lack of SME access to skills / knowledge / markets, Unavailability of financial products tailored to SME needs.

If you checked any of these barriers, describe how your solution addresses them

• Lack of collateral; the entrepreneur is not required to offer collaterals in contrast to all other programs and institutions providing finance.
• Lack of SME access to skills/knowledge/markets; our project provides mentoring and uses the network of EJB members to provide access to knowledge and markets. Agreements and MOUs with other NGOs, public and private entities facilitate the process of providing our entrepreneurs with needed trainings and exposure to market. The result is our entrepreneurs are well trained on practical running of their real life business, which will facilitate their access to other rounds of finance to expand and grow their business.
• Unavailability of financial products tailored to SME needs; by providing real SME needs as no collaterals and no-interest loans along with close mentorship, which is not available in available financial products addressing SMEs in Egypt

Impact
Provide empirical evidence of your proposed solution's success/impact at present. If your project is in the idea phase, please provide evidence that speaks to its potential impact

The project has started for few months ago and we have already funded 9 entrepreneurs and there are 30 in the process of getting their funds and the pipeline is growing. Attracting that number of entrepreneurs and building trust and confidence in helping them start and run their new businesses in a few months is an indication that we are on the right way to success. On the other hand, companies are easily addressed to participate by their CSR budgets in the fund after the successful results of the starting period. The key is we have covered the gap between theoretical trainings and real life implementation.

How many firms do you expect to reach?

We’re expecting to reach 60 to 80 firms/year

What is the volume of private SME finance you aim to catalyze?

We aim to catalyze a volume of $5 million

What time frame will be required to reach these targets?

3 years

Does your solution seek to have an impact on public policy?

Yes

What would prevent your solution from being a success?

Access to new funding might prevent the solution from succeeding to grow but the revolving funds will keep it on for a while.

Sustainability
List all the funding sources that are required for the sustainability of this solution

Our project was launched this year with a fund from one of Egypt’s leader companies CSR budget and sustainability will be maintained by marketing the idea and attracting more funds from other companies and international and regional AID organizations

Demonstrate how your proposed solution has the capacity to graduate from dependence on public finance. What is the time frame?

Our solution doesn’t depend on public finance

Demonstrate how your proposed solution will survive a potential loss of its largest private funding source

Our solution will survive based on the revolving funds from beneficiaries that will be used to fund new projects but that will limit the growth rate.

Please tell us what kind of partnerships, if any, could be critical to the greater success and sustainability of your innovation

Partnering with large corporations would help in the sustainability of our solution if those corporations were encouraged to help smaller SMEs as part of their social responsibility. Partnering with professional service companies will help us in mentoring the projects and connecting them to real markets and external markets.

Are there non-financial issues that could threaten the sustainability of your proposed solution?

No

Please tell us if your proposed solution aims to scale up through a high growth sector, expand immediately to multiple sectors, and/or scale up geographically

Our project has started in multiple sectors within the 2 main cities in Egypt and our aim is to be able to cover all Egypt. On the other hand, our aim is to raise the ceiling of funds to be able to help firms with higher capitals. That will help us to have real impact on a larger economical scale.

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