UNIDO, 2015, Productive work for youth in Armenia – supporting young entrepreneurs, Midterm or interim evaluation, UNIDO, Vienna.

2.2 DECENT WORK AND ENTERPRISE GROWTH

2.2.1 Promotion and implementation of decent work

Recommendation: 4. Ensure that efforts on employment creation in the IE include focus on the creation of quality jobs and not poor or temporary jobs. Ensure and monitor whether employment created with the support of projects meets specific requirements, e.g.:

• Employment is in line with the aim of the worker to work full or part-time, seasonal or ad-hoc demand
• Work corresponds to decent work conditions.

References: UNIDO, 2015, Productive work for youth in Armenia – supporting young entrepreneurs, Midterm or interim evaluation, UNIDO, Vienna.

Evidence sample: The evaluation determined that jobs were created in some of the established youth-led businesses, but it remains to be ascertained to what extent the jobs created are full-time jobs, part-time jobs, seasonal jobs or even jobs on 'ad-hoc demand'. It is recommended to add this dimension (disaggregate jobs created) in the project database to strengthen performance monitoring. One important aspect of the inclusive and sustainable development agenda is to create decent work opportunities which can be assessed through analysis of data base information provided the distinction between types of jobs created. 

The analysis found that several evaluation reports provided examples of projects, especially in the informal sector, which led to poor and temporary jobs, or where there was no attention to or monitoring of the quality of the jobs.

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2.3 DIRECT ACTIONS IN COMMUNITIES

2.3.2 Entrepreneurship: Capacity strengthening on economic activities

Recommendation: 12. Ensure that communications about available project services are well formulated and disseminated. Communication should focus on raising the trust and confidence of youth or other community members who may have limited or discouraging prior experience of accessing loans or other services. Ensure that communications on available services include a gender perspective to ensure females also access the services.

Reference: UNIDO, 2015, Productive work for youth in Armenia – supporting young entrepreneurs, Midterm or interim evaluation, UNIDO, Vienna.

Evidence sample: The evaluation noted that information about the opportunity to access affordable loans and technical coaching and counselling need to be better formulated and disseminated. Communication should focus on raising trust and confidence youth entrepreneurs who may have limited or discouraging prior experience of accessing loans from Government. It is also recommended to review the information presented and communicated in the messages from a gender perspective.

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2.3 DIRECT ACTIONS IN COMMUNITIES

2.3.5 Micro finance

Recommendation: 8. Design easy credit facilities supporting entrepreneurs to start/expand their business. Interest free loans can work better than grants, since they break the dependency of micro-finance institutions upon international donors, besides bringing accountability for beneficiaries themselves.

Reference: UNIDO, 2015, Productive work for youth in Armenia – supporting young entrepreneurs, Midterm or interim evaluation, UNIDO, Vienna.

Evidence sample: The evaluation concludes that the presence of a credit facility to support trained entrepreneurs to start/expand or diversify their business was a valuable tool to complement the technical assistance provided by UNIDO. The inclusion of a loan facility within the EDIP (Enterprise Development and Investment Promotion) served not only to finance the expansion of the existing client’s businesses but helped ease the transition of EDIP clients from small businesses to mid-size enterprises beyond the life of the EDIP program. Beyond the EDIP program the establishment of the facility was the first in Iraq to partner a UN technical assistance program with an Iraqi lending institution.

Then, UNIDO’s decision to adopt an interest free loan as opposed to a grant to the implementing institution was a timely move towards breaking the dependency of micro-finance institutions upon international donors and also brings in accountability. Interest free loans are an interim solution between grants that are often provided during start up years and accessing financing on the international markets, which still remains difficult considering the high perceived risks associated with Iraq and the on-going credit shortage as a result of the international financial crisis.

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2.3 DIRECT ACTIONS IN COMMUNITIES

2.3.5 Micro finance

Recommendation: 21. Make long-term repeated application for loans accessible to everyone with reasonable pre-condition criteria. Giving the opportunity to re-apply for a loan only to those entrepreneurs who have showed high growth in a short time is not conducive to strengthening. New firms may actually need more time to develop and become eligible for new loan facilities.

Reference: UNIDO, 2015, Productive work for youth in Armenia – supporting young entrepreneurs, Midterm or interim evaluation, UNIDO, Vienna.

Evidence sample: The evaluation draws attention to the rules for lending to Armenian young entrepreneurs. In accordance with the regulations of the Government of Armenia, an individual youth entrepreneur can access a start-up loan only once, irrespective of the amount granted. This implies that certain segments of the youth entrepreneurs are likely to face difficulties to realize their growth potential. In fact, youth entrepreneurs showing potential for strong and comparatively quick growth will be supported to further develop their business plan to apply for an additional loan from another loan facility, the SME Development National Centre. Most youth entrepreneurs will show potential for moderate but stable growth which is not sufficient for approval of additional loans from the loan facility. The evaluation states it is highly recommended to look into the possibility of revising laws and regulations (possibly on a pilot basis) to allow all approved youth entrepreneurs to apply for loans in several steps.