28.04.2015

Examples of GIZ’s work: economic development for 60,000 enterprises

28.04.2015 – Modern economies need dynamic and innovative enterprises in order to develop and hold their own against international competitors.

Strong and creative private enterprises drive economic growth, create jobs and boost innovation within a country. Consequently, the Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH sees them as having a key role in promoting economic development. As such, it supported 5,000 business start-ups around the world in 2012 and 2013, and also helped 60,000 enterprises during the same period to position themselves more effectively in relation to their competitors.

In one instance, GIZ is working on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the UK Department for International Development to implement a programme to strengthen private enterprises in Tajikistan. One aspect of the programme involves supporting business start-ups in rural areas. At the same time as advising micro-finance institutions on developing and expanding suitable services for small enterprises, GIZ is also training the advisors from these financial organisations in how to evaluate business plans. Many entrepreneurs lack the necessary financial resources and, frequently, the requisite trust in the banks to implement their promising business ideas. 'We intend to create a basis for financial institutions and business founders to work together in a spirit of trust,' explains Programme Director Hagen Ettner. Tajikistan's busy transit routes offer particular potential for business start-ups, with many new restaurants, hotels and truck-servicing garages opening along them, creating income opportunities for the population.

For Ettner, the strength of the programme is 'that we are not only working with the financial institutions, but also directly with potential business founders, as well as strengthening cooperation between enterprises and political actors.' This serves to promote interest groups and also represent private-sector interests at political level. Thus, by working with state authorities and all relevant actors, solutions are being developed for creating an enterprise-friendly business environment.

GIZ is also helping to make the private sector more robust in other countries such as India and Rwanda.