Supporting SMEs and local producers’ organization and business growth.

Informal workers often suffer from a lack of organization and representation and for this reason are more likely to have less advantages conditions in negotiating terms of exchange, selling their production and expand their businesses.

The project “Handicraft and business through regional integration and fair trade market” implemented by the CESVI Foundation in Tajikistan aimed at contribute to the development of the Tajik and Kyrgyz private sector, reinforcing the representative role, the sustainability and the competences on supporting SMES of Tajik and Kyrgyz Handicraft Business Intermediary Organisations (BIOs).

The project included various components, such as awareness and advocacy activities for legal recognition, but also capacity building for SMEs representative organization  and business advisory for marketing strategy development.

The project implementation revealed the following best practices in addressing craftsmen and local producer issues:

• Create structure, such as the Union of Craftsmen of Tajikistan (UCT), to foster craftsmen representation at the institutional level, enhance legal recognition and organize their activity.
• Ensure the ownership of beneficiaries through a participative approach that guarantees a larger commitment and a better sustainability.
• Implement a “learning by doing” approach to ensure the effectiveness of capacity building activities, such as interactive workshops or direct exchange of experiences.
• Focus on high value and low weigh products to reduce the costs of transportation.
• Take into consideration local and regional cultural elements to develop SMEs and products brands and marketing.
• Implement a fair-trade approach to foster a win-win business culture and promote ethic values among producers.
• Try to establish links between local markets and consumers form developed countries to facilitate SMEs internationalisation and fully exploit market potentialities.

More detailed information on this good practice is available at the page 62 of the volume 4.3 “Good Practices and Lessons Learned – Case studies of 15 EC-funded projects”