United Nations Development Programme Ministry of Labour and Social Policy Local Public Private...
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![Page 1: United Nations Development Programme Ministry of Labour and Social Policy Local Public Private Partnerships THE BULGARIAN EXPERIENCE.](https://reader035.fdocuments.us/reader035/viewer/2022062423/5697bff91a28abf838cbf833/html5/thumbnails/1.jpg)
THE BULGARIAN EXPERIENCE
United Nations Development
Programme
Ministry of Labour and Social Policy
Local Public Private Partnerships
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What is JOBS?
• Joint MLSP/UNDP business support model promoting sustainable employment
• Viable network of 39 Business Centres (BCs), 10 Business Incubators (BIs) and 5 window offices across Bulgaria
• Timeframe: 2000 – 2006
• Overall budget: US$ 20,669,520
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Overall objective
To support the growth of micro and small businesses throughout Bulgaria in order to
create long-term sustainable jobs and boost local economic development
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The key partners
• UNDP: developed JOBS model, advocated for its adoption as national policy, supports and monitors implementation
• The Bulgarian Government: serves as project implementation agency (MLSP), integrated JOBS model into national policy, provided 96% of project budget
• 44 local municipalities: closely involved in BC/BI establishment and development, provide non-financial and financial contribution to project implementation
• Over 200 local companies: closely involved in BC/BI establishment and development; actively participate in the BCs initiatives; closely involved in the process of financial and non-financial services delivered to the entrepreneurs
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The JOBS methodology
• Establishment of BCs on the basis of public private partnerships
operating as locally-based NGO; founding members: public and private sector partners; facilitating the dialogue between the public and the private
sector.
• Local ownership: management of the NGO through the local partners
• Broad partnership between public and private interests: guarantees that the BCs will adequately serve the entire community
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Main project phases
• Inception: integration of successful UNDP business
support models (2000) • Demonstration: JOBS project implementation (2001-
2002)
• Streamline with the ALM policy: project expansion as part of national policy and consolidation of new components (2003-2004)
• Exit strategy: development of capacity to ensure BCs viability through a national association of the BCs (2003-2006)
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Lessons learnt: Carefully select target areas
• Assess the assistance absorption capacity of the target communities
• Initial approach to establish business service providers in remote and underdeveloped communities could not always ensure the desired impact
• Selection methodology revised for project expansion based on lessons learnt
• Criteria refocused to identify active communities committed to local development: places that have basic capacities in place and entrepreneurial potential to make full use of project intervention
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Lessons learnt: Viability vs. Sustainability
• Major consideration since project outset, ingrained in project methodology
• A variety of mechanisms put in place to prepare BCs to function independently within a timescale of three to four years
• Emphasis on enhancing BC ability to generate revenues and attract external resources
• Experience shows that 100% cost-recovery from services may be un unfeasible target, if it creates a conflict with BC developmental mission
• Currently BCs organizationally and financially viable, combining a variety of income sources
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Challenges: Exit strategy
• Exit strategy designed as early as second year of implementation
• Development of adequate tools and capacity to ensure BC viability and implement exit strategy
• Gradual reduction of project subsidy: – 100% in the first year, 70% in the second year, 40% in the
third year, 20% in the fourth year• BC association established (2003) to take over key strategic
functions long term and ensure continued impact• Government committed and willing to use BC capacity
beyond project end
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Key success factors
• Strategic long-term support from the central and local governments
• Local ownership: reliance on local resources, development of human capital and capacity
• Flexibility to adapt and stand up to new challenges• Networking between the BCs to maximize the
strengths of scope• Partnerships with a broad range of players
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Key risks
• Balance between mission and viability• Capacity of local stakeholders to adequately
support and provide strategic guidance to BC development
• Sustained impact: need to stay in touch with the local reality and respond to emerging new needs in the community
• Capacity of the BC association to safeguard capacity, build on achievements and advocate for micro and small businesses on a policy level
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Things to remember
1. Start small and slow, adjust, show results and then fund raise for larger amounts of money
2. Hire the appropriate staff (risk takers, pro-active, committed, well respected in the community)
3. Provide hands-on assistance and the necessary mechanisms for business support
4. Establish strong local and national partnerships
5. Balance between servicing the original target group and surviving as an NGO