Strengthening SME Business Membership Organizations

Report Cover Image
Evaluation Plan:
2018-2022, Ukraine
Evaluation Type:
Final Project
Planned End Date:
06/2018
Completion Date:
07/2018
Status:
Completed
Management Response:
Yes
Evaluation Budget(US $):
25,000

Share

Document Type Language Size Status Downloads
Download document ToR_BMO_ final project evaluation_fin_SECO_UNDP.docx tor English 106.69 KB Posted 260
Download document Final report_SME BMO Evaluation_UNDP-SECO_fin.docx report English 190.29 KB Posted 360
Title Strengthening SME Business Membership Organizations
Atlas Project Number: 00084268
Evaluation Plan: 2018-2022, Ukraine
Evaluation Type: Final Project
Status: Completed
Completion Date: 07/2018
Planned End Date: 06/2018
Management Response: Yes
UNDP Signature Solution:
  • 1. Governance
Corporate Outcome and Output (UNDP Strategic Plan 2018-2021)
  • 1. Output 1.2.2 Enabling environment strengthened to expand public and private financing for the achievement of the SDGs
SDG Goal
  • Goal 8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
SDG Target
  • 8.2 Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including through a focus on high-value added and labour-intensive sectors
  • 8.3 Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services
  • 8.5 By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value
Evaluation Budget(US $): 25,000
Source of Funding: Project budget
Evaluation Expenditure(US $): 19,259
Joint Programme: No
Joint Evaluation: No
Evaluation Team members:
Name Title Email Nationality
Antoine Mansour Consultant
GEF Evaluation: No
Key Stakeholders:
Countries: UKRAINE
Lessons
Findings
1.

IV. KEY FINDINGS OF THE EVALUATION

A. RELEVANCE

The project is consistent with SDGs and the priority needs of SMEs as expressed in the national priorities and in both UNDP Country Programme and the Swiss Cooperation strategy The Project falls, at the time of its formulation, under Country Programme (CP) outcome “Reduction of poverty in rural areas through socio-economic development activities”, which is pursued by UNDP in through “provision of technical advice to the Government; development of trade capacity of authorities, entrepreneurs and their associations” for the period of 2012-2016. The expected project?s output comes as “Strengthened capacities of Business Membership Organizations to represent interests of the private sector and contribute to the policy development leading to SMEs sector growth”. Particular emphasis is given by the project to increased capacity of BMOs to reach enterprises in rural areas and to IDPs entrepreneurs. The project is also related to the achievement of SDGs goals, particularly goal 5 on gender equality, goal 8 on decent work and economic growth and goal 10 on Reduction of inequality. The project is also in line with Sustainable economic development domain which is one of the four strategic orientations of the Swiss Cooperation Strategy for Ukraine 2015-2018. The UNDP project is closely related to two outcomes of Sustainable Economic Development: Outcome 4.1: The private sector benefits from new trade opportunities, better access to finance and increased business skills; and Outcome4.2: National authorities improve the regulatory framework for the financial market and financial institutions are enabled to offer a wider range of services to the private sector, in particular to SMEs. 

Though the development of the SME sector was never among the main priorities of the Ukrainian Government before 2012, the Government started realizing the untapped potential of the SME sector as a driver of sustainable economic growth by signing the 2012 Law of Ukraine on Development and State Support of Small and Medium Enterprises in Ukraine. The Law was not implemented due to absence of financial support from the state budget. In 2015, a new version of the law was proposed whereas the goals and principles of state policy in the sphere of SME were expanded to include the following priority areas: deregulation, reduction of regulatory costs of SME?s, simplification of the companies? registration and business activity. The Draft Law was accepted in the first reading in January 20153 , but apparently it didn't yet materialise. 


Tag: Vulnerable Relevance Gender Equality Gender Mainstreaming Women's Empowerment Ownership Private Sector Displaced People Advocacy SDG Integration

2.

A. RELEVANCE (continuation)

The outcomes of the project remained relevant throughout the period of implementation, as the new CPD (2018-2022) and SME 2020 strategy of the Government, adopted in 2017, came to confirm its high relevance  UNDP project is still relevant since it is still in line with the strategic objectives of the SME strategy 2020 of the Ministry of Economic Development and Trade (MEDT), and which consist, among other things, of: Improvement of the SME regulatory, institutional and business environment; Improvement on access to finance for SMEs; Simplifying of tax administration for SMEs; Promotion of entrepreneurial culture and development of competitive human capital and skills; Promotion of SME export/internationalisation in context of EU-Ukraine Association Agreement / Deep and Comprehensive Free Trade Area (DCFTA); and Facilitation of SMEs' competitiveness and Innovation . The project remained also relevant as it falls under UNDAF Outcome 4.1 of the new CPD (2018 – 2022): By 2022, all women and men, especially young people, equally benefit from an enabling environment that includes labour market, access to decent jobs and economic opportunities. It is also aligned with CPD Output 2.2: Public institutions and private entities effectively cooperate to improve the business environment.

The project has established appropriate management and coordination arrangements As part of the management arrangement to ensure the implementation of the Project, a Project Board consisting of the MEDT, SECO and UNDP was established to provide overall guidance and direction to the project, oversee the project performance, review progress reports and annual work plans, ensure that all project deliverables have been produced satisfactorily, review mid-term and final evaluation reports and make management recommendations.

Institutional arrangements for the long-term sustainability of the Project results are adequately described The project document describes how the project will achieve sustainability of the interventions. The focus of the project is on capacity development of the selected BMOs, and which aims to equip them with skills, competences and knowledge to enable them to continue operating sustainably and effectively without support after Project?s end. The project will focus on two core issues in capacity development to ensure sustainability: leadership of the BMOs? management; and promotion of accountability. It is assumed in the formulation document of the project that BMOs, through the training and coaching received in the three years of Project?s implementation, will improve their leadership, internal organizations, and will generate new memberships.


Tag: Relevance Sustainability Project and Programme management Results-Based Management Theory of Change Country Government Private Sector Coordination

3.

B. EFFECTIVENESS 

1. Effectiveness of the project in strengthening governance and organizational capacity of targeted BMOs

UNDP project was effective in supporting BMOs to attract additional members and introduce changes in membership policy aimed to make the associations more effective, credible and efficient though it has resulted in the decrease of number of members in some of the BMOs at the time of evaluation According to UNDP draft report for 2015-2018 on achievements of the project results (based on available data as of June 2018), membership of seven partner BMOs has increased by 32% based on average for a group of BMOs6 . Four BMOs recorded a significant increase in their membership during the period 2015-2018 because of UNDP support, one of them, the Business Community Club (BCC), was able to double its membership. The decrease recorded in the membership of several BMOs is not necessarily a sign of lack of interest of members or bad performance of the BMOs. The BMOs which recorded such decrease in number of members include the Donetsk Chamber of Commerce and Industry (DCCI), Stina and the Union for Promotion of Rural Green Tourism in Ukraine (UPRGTU). While the decline in membership in Donetsk Chamber was mainly related to the 2014 events in Eastern Ukraine, that of the two other BMOs (a decrease of approximately 33%) was due to the fact that the two BMOs limited membership to those paying fees only. The League of Business and Professional Women (LBPW) has currently 132 members as compared to 90 members in 2015 (an increase of 47%). With the recent changes in the leadership, new members have joined recently. The Interregional Union of Poultry Farmers and Folder Producers of Ukraine (IUPFFPU) increased slightly its membership from 34 to 41 members. Membership is not increasing well because most small businesses in this sector operate informally and prefer not to join the Union. 

The project supported the BMOs in improving or establishing new membership policy. While some BMOs adapted the existing membership policy (DCCI, UAFM, BCC, Stina), the others developed it from scratch (LBPW, IUPFFPU, UPRGTU). However, issues remain across the board with respect to measuring performance and adapting the performance based on outcomes of regular monitoring and selfassessment (M&E)7 . Interest in membership was confirmed in the online survey whereas 95% of the sample indicated they will remain members of the BMOs and will also advise other entrepreneurs to become members. Income from membership fees increased by 35.26%; 17%8 more members pay the membership fee - sign of higher quality of relations of BMO with the members. With the exception of DCCI which was affected by the 2014 events, the other associations recorded higher income from fees (4 times more for BCC during the period 2015-2018), in view also of the design by several BMOs of package of services whereas fees are paid according to services obtained. In the Ukrainian Association of Furniture Manufacturers (UAFM), membership fees have increased, as 80% of members pay fees now. 

UNDP capacity development plan based on the organizational capacity assessment of 7 BMOs was implemented through the use of mix of interventions: a long term holistic training and coaching programme for BMO management teams in various areas: governance, membership, legal setting, service provision, advocacy. An in-depth organizational capacity assessment of seven BMOs was conducted by UNDP in 2016 to identify capacity gaps as well as priority areas of interventions. The assessment and the capacity development plans were carried out in a participatory approach through consultations and strategic planning sessions with each of the BMOs. UNDP used a mix of interventions to support the implementation of the capacity development plans: A long term holistic training and coaching programme for BMO management teams delivered in partnership with Kyiv-Mohyla Business School (KMBS), during nine-month period, consisting of nine classrooms modules, distant learning tools, coaching, training-of-trainers and final conference to present the programme and experience in training sessions at the Business School, expert review of organizational documents and legal setting of the BMOs, training and coaching on financial management, handbook/guide on legal aspects of BMO operation and governance, individual sets of practical recommendations on membership and service marketing, training and guide on fundraising for BMOs, HR needs and five webinars on HR policy. The project has also enhanced the capacity of BMOs in Monitoring and Evaluation through training and advisory support to develop individual M&E plans, and through the provision of an M&E handbook with generic tools. In addition to the KMBS training courses, UNDP supported BMOs through a number of consultants who provided training and coaching in various areas: marketing and communication, Public Private Dialogue and deregulation, services and membership development, legal aspects, policy analysis and advocacy, mediation, mentorship and Corporate Social Responsibility. The organization of training courses and other workshops that brought together all targeted BMOs enabled the project to mitigate any possible risk of mistrust among the BMOs which come from different regions in Ukraine and represent different sectors with unequal size. In view of the fact that BMOs usually depend on the leader's personality who drives all processes, the project concentrated its efforts on the institutionalization of the BMOs through enhancing their organization capacity by including key staff of BMOs in addition to the leaders in most of its activities with the view to reduce the risk of any negative change in BMOs? management.


Tag: Effectiveness Policies & Procedures Strategic Positioning Civil Societies and NGOs Country Government Private Sector Capacity Building Jobs and Livelihoods Advocacy

4.

B. EFFECTIVENESS (continuation)

The project was effective in enhancing more transparent communication between BMOs management and members, allowing thus members to participate in decision-making process All BMOs have developed a new website or improved the old one thanks to UNDP project. They are increasingly using social media such as Facebook to communicate with their members. Communicationbetween BMOs management and members became more transparent and there is increased participation of members in decision-making. BMOs discuss with members their needs while members participate more in decision making and take responsibilities. The management starts to respond to initiatives coming from members. The UAFM, for example, created now an open atmosphere. There is trust between members and sharing of information through social media, in particular Facebook. The major change in the UAFM is that the management understands now the problems of the members. Members start to ask questions and solutions are made between management and members. The online survey confirms that most of the members are aware of the reforms proposed by the BMOs and which are currently under review by the authorities: 42% are regularly informed while 36 % are somewhat informed. 

BMOs increased their influence through the linkages and networks established with other relevant organizations Practical cooperation with other organizations was achieved by all BMOs with other organizations, as 11 formal MOUs including with foreign partners were signed, while three BMOs expanded cooperation with foreign peer organizations to learn the best practices10 . DCCI is member of the National Board for Entrepreneurship, in which it is in charge of foreign trade activities. Some BMOs, such as BCC, have cooperation with the European Business Association and other international chambers. BMOs are also cooperating with other business associations and stakeholders at the regional level. 


Tag: Effectiveness Communication Knowledge management Partnership Policies & Procedures Results-Based Management Country Government Coordination

5.

B. EFFECTIVENESS (continuation)

2. Effectiveness of the project in increasing use by SMEs of up-to-date techniques, knowledge and services provided by targeted BMOs

Members’ needs surveys and sectoral surveys which are essential for the identification of services needed by members and non-SMEs members are rarely carried out systematically by BMOs Regular semi-annual members' satisfaction surveys of BMOs services are conducted by UNDP. The feedback received was used to diversify membership package and service offering on the demand-driven basis. Apart from the members' satisfaction surveys conducted by UNDP, there is absence of systematic and regular surveys conducted by BMOs on the needs of members as well as of the relevant SME sector to services; some have conducted small surveys (LBPW, IUPFFPU and DCCI) while all BMOs rely also on the consultation with their members to understand their needs and act accordingly. In view of their small size, BMOs face challenges in conducting surveys on the SME sector for which they intent to enhance their representation. A study conducted by the LBPW, with UNDP support, was confined to assess the participation of leaders? women in business in Ukraine, using the State registry. The study shows that 46% of individual businesses (self-employed) are owned by women. However, there is lack of assessment of the needs of women entrepreneurs. The assessment of needs of women entrepreneurs would allow BMOs to identify the demand of services as well as the means to increase membership.

The project was effective in enhancing the capacity of BMOs in the provision of improved and new services to members and particularly to women entrepreneurs and IDPs The project built the capacity of the BMOs in business planning and entrepreneurship, on how to reach the target audience and use the social media to communicate better with their members. It also supported them on the identification of services they can provide them to members and the others that can be referred to other business development services. The project has thus helped them to provide improved and new business services to SMEs. Members of the BMOs are well aware of the services provided by BMOs. 66.6 % are active users of a range of BDS and 54.6% of Micro, Small and Medium Enterprises (MSME) members of seven BMO positively assess the quality of the provided services. This is also confirmed by the nation-wide survey on the Demand for Business Development Services among MSMEs, conducted in May 2017. Five BMOs received tailored coaching and advisory support on designing/improving services. Seven BMOs underwent training in joint procurement for SMEs delivered in cooperation with a Polish-funded Project KupuimoRazom. Among the 13 participants of the BMOs, four participants (including three women) were certified as experts. Five BMOs received IFC training on „Governance system in Small and Medium Enterprises? which aimed to equip the BMOs with necessary expertise to be able to provide relevant advisory and consulting services to their members.


Tag: Effectiveness Gender Equality Gender Mainstreaming Women's Empowerment Knowledge management Project and Programme management Service delivery Private Sector Displaced People Capacity Building Jobs and Livelihoods Micro-credit Poverty Reduction Technology

6.

B. EFFECTIVENESS (continuation)

3. Effectiveness of the project in enhancing the benefits for SMEs from advocacy activities and policy interventions of BMOs

The project was effective in providing the tools and approach to the targeted BMOs for the preparation of proposals for advocacy purposes, but less effective in enabling most BMOs in formulating by themselves the proposals With the exception of DCCI, most targeted BMOs were not aware of the meaning of advocacy. The targeted BMOs benefitted from the capacity-building of the project in advocacy, in terms of the tools in advocacy strategy and an understanding of the approach in the preparation of proposals for advocacy purposes. In addition to the courses provided by KMBS to BMOs, UNDP consultants supported BMOs in developing their capacity in advocacy: how to change their structure to respond to advocacy functions and how to use part-time staff and volunteers as well as committees for advocacy purposes in the absence of resources. The capacity of BMOs was also developed in the preparation of a stakeholders? mapping and in the formulation of an advocacy strategy and preparation of proposals. A series of training courses were also provided to BMOs on public policy issues, particularly on how to analyze a legislation, influence a policy and work with central government, parliament and regional authorities.

BMOs, however, need more practical exposure, as they did formulate one proposal in the advocacy training. Since the size of most BMOs is very small with limited number of staff, it is obviously difficult for them to prepare proposals without external assistance. Notwithstanding, BMOs face serious difficulties in the actual formulation of proposals. Indicators on effectiveness of the project in advocacy activities, in fact, are ambitious in view of the current capacity of most BMOs.


Tag: Effectiveness Local Governance Parliament Policies & Procedures Jobs and Livelihoods Micro-credit Poverty Reduction Advocacy

7.

B. EFFECTIVENESS (continuation)

4. Effectiveness of the project in enhancing the engagement of authorities at the national and local levels in the dialogue with the private sector

The project was effective in putting in place the mechanisms for the engagement of national and regional authorities in the dialogue with the private sector, as evidenced in the regular consultations and dialogue conducted in targeted regions Mechanisms for involvement of regional authorities were put in place in some regions targeted by the project. DCCI heads the Working group to address issues and problems faced by the private sector in East Ukraine with the view to introduce changes in regulations and ease the operations of businesses. The departments of Civil-Military Administration and several other stakeholders (private sector institutions, public authorities, Business development services institutions participate in the working group which meets every month. Recently, Stina, with the support of UNDP, created a platform to improve local regulations in the city where all stakeholders are participating. A working group is meeting regularly to discuss issues related to business environment in the region with the purpose to support change in regulations. The working group consists of representatives of business associations, chamber of commerce, State Regulatory Service, Anti-Monopoly committee, Consulting bodies (Council of Entrepreneurs) to the City Mayor, local authorities and universities. There are in Vinitsa 38 regulations of which only 11 are within the standards. The working group is supported by UNDP consultant who provides also training to the members of the working group on how to make business climate more favourable to businesses. A special commission from members of the above group will be responsible for deregulation. Then, the commission will provide the recommendations to the City Hall for review and adoption. 


Tag: Effectiveness Local Governance Policies & Procedures Strategic Positioning Country Government Private Sector Capacity Building Coordination

8.

C. EFFICIENCY

The assessment of efficiency looks at the extent to which the various activities of the project transformed the available resources into the intended results, in terms of quantity, quality, and timeliness, and the extent to which the desired effects are achieved with the available resources/inputs. 

Cost-effectiveness: all activities of the project were implemented according to the planned budget, though the VAT which consists of 2.4% of the total budget was not returned to the project by the Government. Necessary consultations and negotiation have been taking place between UNDP and the Government which, at the moment of reporting, have not resulted in an acceptable solution. Services have been procured by UNDP according to UND rules ensuring the „best value for money' approach. 


Tag: Efficiency Monitoring and Evaluation Project and Programme management Results-Based Management

9.

D. SUSTAINABILITY

The sustainability of the project is not homogeneous in all its components, as follows:

1. There is no doubt that the culture of targeted BMOs has evolved from a “club” to a business association that started to care about members, consult with them on the problems faced and provide them with the needed services. The culture of democratic behaviour is predominant in the targeted BMOs, and members have now a say in decision-making. The changes made by the BMOs in their governance, structure, internal policies and processes can be considered as sustainable.

2. Most of BMOs have not yet been able to translate the vision, mission and strategic objectives into an action plan, and the development of a business agenda together with policies. There is a risk BMOs may lose the gains that resulted from project interventions if the strategic framework is not completed and operationalised. UNDP is to support the BMOs in this area to ensure sustainability.

3. BMOs have been able to improve current services and provide new ones to members. Sustainability of service provision would depend to the extent to which BMOs become “entrepreneurial” in the sense to continuously introduce changes in the services and innovate with new services, otherwise they may become obsolete in view of the competition from other service providers. To do so, they would need to regularly conduct assessment of members' needs, and also assessment of the needs of the whole business sector. Support to BMOs in this area is needed to ensure sustainability of the services.

4. Additional support is needed to enable the BMOs to understand better the advocacy strategy and communication with the national and regional authorities. The capacity of the BMOs is to be enhanced on how to identify the issues through consultations with members, then to cooperate with other business associations to achieve consensus on the issue that needs to be advocated and partnering with research institutions for the formulation of the proposals. While some success was achieved by a number of BMOs, there is lot to do to sustain the advocacy operation.


Tag: Impact Sustainability Communication Partnership Policies & Procedures Service delivery Advocacy

10.

F. EFFECTIVENESS OF UNDP COORDINATION OF THE PROJECT WITH COMPLEMENTARY INTERVENTIONS OF DONORS AND INTERNATIONAL ORGANIZATIONS

UNDP coordination with donors and international organizations (EU Forbiz, IFC, Embassy of Poland, EBRD and CIPE) helped in maximizing the benefits of the project in view of regular coordination and cooperation in joint activities and exchange of information and experience 

UNDP project management participate in the Donor coordination thematic working group on Private Sector Development (chaired and supported by EU). The working group, which meets regularly (on a quarterly basis), presents an opportunity for UNDP to exchange experience and coordinate interventions. UNDP project coordinates effectively with several donors/ international organizations with whom it developed partnership. Regular bilateral expert consultations are conducted with the EU Forbiz project on BMO development and self-regulation, in addition to the cooperation in the preparation of the SME development strategy and the related action plan. The EU project praised the excellent relations and cooperation with UNDP, and which resulted into benefits for both parties. 

UNDP cooperated in the area of training with the International Financial Corporation (IFC) and the Poland funded project - Kupuimo Razom. The project cooperated with IFC to train partner business associations on SME Corporate Governance methodology as a potential service for member SMEs. UNDP cooperation with Kupuimo Razom project consisted of capacity-building of seven BMOs in providing the services of joint procurement for SMEs.17 . UNDP has also close cooperation with the European Bank for Reconstruction and Development (EBRD). Consultations are held with EBRD team on organizational development of BMOs in Ukraine and business development services. Two of the targeted BMOs (DCCI and BCC) were selected by EBRD to run regional Business Support Centres (among 15 regional centres)18. UNDP shared with EBRD the results of the MSME survey of the demand for BDS. UNDP project involved the Centre for International Private Enterprise (CIPE) and Better Regulation Delivery Office (BRDO) into the advocacy campaign with LBPW on self-regulation. 


Tag: Effectiveness Partnership Project and Programme management Results-Based Management Strategic Positioning Donor Coordination

Recommendations
1

Evaluation recommendation 1. Periodic revision of the LogFrame should become a practice in future UNDP projects on support to SMEs and longer-term duration of future project should be envisaged.

Periodic revision of the LogFrame should become a practise in future UNDP projects on support to SMEs in view of possible changing context and emergence of priority needs that were not foreseen at the time of the formulation of the project document. Longer term duration of future project should be envisaged (at least 5-year project) in view of the fact that changes in the business environment may take several years to materialise: from the identification of the issues to be addressed to consultations with SMEs, to the development of proposals and completion of the advocacy process with the concerned authorities.

2

Evaluation recommendation 2. Support the legal conversion of BMOs from the current NGO status to business associations;

Despite the legal advice provided by UNDP to the BMOs in various legal aspects: governance compliance, amendment of their statutes and internal structure, there is need to advocate with the government for the development of a separate legislation for business associations which are still considered as NGOs by the Ukrainian law with no specific mandate and status. BMOs need to have the legal mandate to defend businesses while the government will have to consult them as part of the private sector when preparing draft laws and regulations related to the business environment. 

3

Evaluation recommendation 3. Support the completion of the strategic framework of the BMOs that includes goals, strategic objectives and related indicators, action plan and budget. The strategic plan is to be based on the current strengths and weaknesses of the BMOs than on the capacity assessment conducted at the earlier stages of the project, as well as on the findings of members’ needs survey. The engagement of internal and external stakeholders in the development of the strategy is a pre-requisite for its success.

BMOs have not yet developed a complete strategic framework during the time frame of the project. Though such shortages can be attributed partly to the weak capacity of most BMOs, nevertheless the approach used by the project in supporting the BMOs in strategic planning had also its weaknesses. The project relied on two kinds of support: the courses of KMBS, the mentors who were provided by the Business School to support the BMOs and finally the UNDP consultants. While there was consultation with the members, the strategy should also engage external stakeholders such as the Entrepreneurship Department at the Ministry of Economic Development, the Ukraine Chamber of Commerce and Industry, and other relevant business associations. In case there will be a second phase of the project, it would be necessary to continue the support to the targeted BMOs as part of the larger project for the business sector. 

There are two main pre-requisites for the preparation of the strategy in future interventions of UNDP with business associations: a capacity assessment of BMOs and members needs survey. ?- BMOs - organizational capacity assessment: the strategic framework should be based on the findings of organizational capacity assessment which will look at the strengths and weaknesses of BMOs and at the impact, effectiveness and efficiency of the work of the association and on the way the work is being carried out, in addition to the external environment in which they operate - Members- needs survey as well needs of the relevant SME sector: this will provide an assessment of the quality of services and identify the services needed by BMOs- members and the relevant SME sector

4

Evaluation recommendation 4. UNDP should support targeted BMOs and other business associations in future projects to develop platform for inter-firm cooperation through clusters or networks of firms, as a means to enhance competitiveness of SMEs in the local and export market

Small business associations should not be seen only as service associations but also as a platform that would promote inter-firm cooperation through cluster or network. Small firms have difficulty to compete individually in the local and export market and to meet the outsourcing requirements of foreign companies in terms of minimum order quantities (MOQ) and delivery logistics, unless they cooperate together in one or more of the following areas: design of product, joint purchase of raw materials and equipment, joint marketing. UNDP project should continue in future projects to promote the transformation of other business associations as a concept and model that provides the platform for interfirm cooperation. 

5

Evaluation recommendation 5. The scaling up of the current UNDP project to cover the meso level in selected regions of Ukraine would require an understanding of the whole business associations infrastructure as well as knowledge of the available business development services

The improvement of business development services to SMEs would require that UNDP undertakes the two following: (1) A diagnostic of business associations in selected regions or at the national level; and (2) A database on available business development services (BDS) in selected regions where future UNDP interventions are expected. The diagnostic of BMOs would enable UNDP to select the associations that can be considered as real business associations with significant representation. The database on BDS would allow the BMOs to refer SMEs to the appropriate BDS organization when the service is unavailable in the BMO. 

6

Evaluation recommendation 6. UNDP should not confine its support to few BMOs, rather it needs to support in future projects a network of business associations at the regional level that would improve business service provision to the whole SME sector. Single business associations, particularly the small ones, are unable to meet the needs of SMEs for services unless they join and coordinate efforts in the provision of selected services

BMOs should be able to address the challenges faced by the relevant SME sector and meet their needs and not confine their outreach to the membership. While service provision to members can be within the capacity of most of the targeted BMOs which have small number of members, a single business association, particularly the small ones, is unable to meet the needs of SMEs for services unless they join and coordinate efforts in the provision of selected services, such as training of SMEs in specific areas, exchange of experience through joint events, participation in fairs and exhibitions. UNDP needs to support a network of business associations at the regional level through training and coaching.

7

Evaluation recommendation 7. UNDP is to enhance the capacity of BMOs in understanding advocacy strategy and partnering with universities and research centres for the preparation of evidence-based proposals

In view of the small size of most business associations, training on advocacy should focus on helping them understand advocacy strategy and communication rather than enable them to formulate proposals. Small BMOs do not have the human and financial resources to prepare the proposals. Since proposals should be evidence-based and require extensive research, BMOs should partner with universities, think tanks, research centres which can help them in the formulation of proposals. 

8

Evaluation recommendation 8. UNDP is to enhance cooperation between business associations in the adoption of common position when advocating for a change in reform or regulation in the business environment

In view of the small size of the BMOs, it is difficult for them to succeed in advocacy activities and in changing laws and regulations in the business environment without achieving consensus on issues related to the needed reforms. UNDP future interventions should enhance networking and cooperation between business associations in order to reach a consensus on major issues to be presented to the national or regional authorities for change in laws and regulations. The same platform proposed in the abovementioned recommendation on service provision can be used for the purpose of advocacy. 

9

Evaluation recommendation 9. The success of advocacy efforts at the national level would require from the business associations to partner with influential private sector organizations such as the Ukraine Chamber of Commerce and Industry, as well as with the regional chambers. UNDP should consider the possibility of supporting the Ukraine Chamber in the restructuring of the organization and supporting capacity-building activities for regional chambers.

Advocacy at the national level would need partnering with more influential organizations such as the Ukraine Chamber of Commerce and Industry, as well as with the newly established Ukrainian Entrepreneurs Union (SUP) which represents the interests of SMEs and large businesses. UNDP should support the Ukraine Chamber in reforms: creation of SME department and creation of a research unit for advocacy purposes. In this connection, it is worth mentioning that the Ukraine Chamber expressed its interest to cooperate with UNDP, since such “cooperation will promote and strengthen the “image” of the Chamber”. The Chamber wishes to get involved in future UNDP project interventions. One of the area of interest of the Chamber where it needs support is the creation of a research centre that would help in advocacy activities. Joint activities between chambers of commerce and other associations in the regions will enhance the relationship between chambers and agree on common issues, which can be presented to the national chamber. By doing so, the regional chambers can in turn have influence on the national chamber for advocacy purposes. The involvement of the Ukraine Chamber of Commerce and Industry in advocacy activities would contribute significantly to the success of the proposals presented by the BMOs. 

10

Evaluation recommendation 10. The success of public-private sector dialogue would depend primarily on the capacity of BMOs to jointly advocate for deregulation and on the capacity of the public sector to get a better understanding of the required reforms and in the application of Regulatory Impact Assessment (RIA) as a methodology for assessing the impact of draft legislations on the various sectors of the economy, before its adoption by the government.

The success of public-private sector dialogue would depend primarily on the capacity of private sector representatives to achieve consensus among themselves on the issues that need to be addressed and on the joint presentation of evidence-based proposals. Such mechanism would make easy for the public sector to assess the proposals instead of dealing with big number of proposals originating from many BMOs. The role of the public sector will be that of a facilitator to translate the proposals into legislations. In addition to building the capacity of the private sector (as discussed in the part related to advocacy), the role of UNDP would be to build the capacity of the national and regional authorities in understanding issues related to macro-economic conditions and reforms needed to improve the business climate based on international experience. UNDP is to further increase ability of the Ministry of Economic Development and Trade as well as other authorities for the application of the Regulatory Impact Assessment (RIA) as a methodology for assessing the impact of draft legislations on the various sectors of the economy before its adoption by the Parliament or the Government (for the sub-laws).

11

Evaluation recommendation 11. SECO should consider a longer-term duration of the next phase of the project and allow for more flexibility in project revision.

In view of the fact that capacity development of BMOs and adoption of reforms in the business environment are a long process, SECO should consider increase its funding to UNDP and extend the duration of the next phase of the project to at least five-year duration. More flexibility is to be provided to UNDP to introduce changes to the project design and revision to the budget with the view to allow UNDP to adapt to changing conditions in the political and socio-economic environment. 

12

Evaluation recommendation 12. SECO should also consider the provision of funding to UNDP to widen the scope of the next phase of the project to include private sector development.

UNDP support to BMOs and reforms would need to be complemented by support to private sector development at: (1) the policy level particularly direct support to the government in developing the relevant policy framework with particular attention to the promotion of public-private sector dialogue; and (2) firm level with the view to enhance firm competitiveness in the local and export market.

1. Recommendation:

Evaluation recommendation 1. Periodic revision of the LogFrame should become a practice in future UNDP projects on support to SMEs and longer-term duration of future project should be envisaged.

Periodic revision of the LogFrame should become a practise in future UNDP projects on support to SMEs in view of possible changing context and emergence of priority needs that were not foreseen at the time of the formulation of the project document. Longer term duration of future project should be envisaged (at least 5-year project) in view of the fact that changes in the business environment may take several years to materialise: from the identification of the issues to be addressed to consultations with SMEs, to the development of proposals and completion of the advocacy process with the concerned authorities.

Management Response: [Added: 2018/08/13] [Last Updated: 2020/12/14]

Recommendation accepted given that the ability of projects/programmes to adapt to the changing and dynamic environment in Ukraine is critical for overall programme success. Ability of the projects/ programmes to adapt will be strengthened through dedicated training on RBM and project management.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
1.1 Deliver training on RBM and project cycle
[Added: 2018/08/13] [Last Updated: 2019/04/16]
CO 2019/03 Completed As the the project has become a part of the Energy and Environment portfolio, all teams within the portfolio have successfully completed an RBM and M&E training in December 2018. More training resources will be available after the updated policy on monitoring in line with the new UNDP POPP will be released. History
2. Recommendation:

Evaluation recommendation 2. Support the legal conversion of BMOs from the current NGO status to business associations;

Despite the legal advice provided by UNDP to the BMOs in various legal aspects: governance compliance, amendment of their statutes and internal structure, there is need to advocate with the government for the development of a separate legislation for business associations which are still considered as NGOs by the Ukrainian law with no specific mandate and status. BMOs need to have the legal mandate to defend businesses while the government will have to consult them as part of the private sector when preparing draft laws and regulations related to the business environment. 

Management Response: [Added: 2018/08/13] [Last Updated: 2020/12/14]

BMOs do not have a separate legal status in Ukraine which implies that they are governed by the general law for non-profits, while some types of associations fall under the provisions of the Economic Code. Hence, there is a variety of governance and management arrangements in different BMOs depending on their scale and nature. Also, there are no adequate provision in the law for quality assurance of BMOs operation and provisions clearly identifying BMOs as primary interlocutors and private sector representatives in public-private dialogue (PPD). The recommendation is accepted partially, given that there are pro and cons as to establishing separate legal status for BMOs (or developing a separate law). The follow-up phase of the project will look into existing gaps and analyze opportunities to improve legislation on BMOs and consultations/dialogue with the private sector, where needed, and will provide relevant recommendations to the Government and private sector.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
2.1. Conduct research and preliminary legal analysis of the legislation governing the operation of BMOs, identify gaps and needs for improvement of relevant legislation.
[Added: 2018/08/13] [Last Updated: 2020/08/07]
Country Office, Portfolio Manager 2020/03 Completed The law of Ukraine “On civic associations” analyzed. Findings integrated in the Project Document of the Phase II of the Project. History
2.2 Develop concept note for the follow-up phase of the project integrating the need for feasibility analysis of developing a law outlining special legal status for business membership organizations
[Added: 2018/08/13] [Last Updated: 2018/10/23]
Country Office, Portfolio Manager 2018/10 Completed Draft concept note has been developed and is under review History
2.2 Finalize project document and negotiate cost-sharing agreement with SECO
[Added: 2018/08/13] [Last Updated: 2020/08/07]
Country Office, Portfolio Manager 2020/02 Completed New CSA signed in November 2019. History
3. Recommendation:

Evaluation recommendation 3. Support the completion of the strategic framework of the BMOs that includes goals, strategic objectives and related indicators, action plan and budget. The strategic plan is to be based on the current strengths and weaknesses of the BMOs than on the capacity assessment conducted at the earlier stages of the project, as well as on the findings of members’ needs survey. The engagement of internal and external stakeholders in the development of the strategy is a pre-requisite for its success.

BMOs have not yet developed a complete strategic framework during the time frame of the project. Though such shortages can be attributed partly to the weak capacity of most BMOs, nevertheless the approach used by the project in supporting the BMOs in strategic planning had also its weaknesses. The project relied on two kinds of support: the courses of KMBS, the mentors who were provided by the Business School to support the BMOs and finally the UNDP consultants. While there was consultation with the members, the strategy should also engage external stakeholders such as the Entrepreneurship Department at the Ministry of Economic Development, the Ukraine Chamber of Commerce and Industry, and other relevant business associations. In case there will be a second phase of the project, it would be necessary to continue the support to the targeted BMOs as part of the larger project for the business sector. 

There are two main pre-requisites for the preparation of the strategy in future interventions of UNDP with business associations: a capacity assessment of BMOs and members needs survey. ?- BMOs - organizational capacity assessment: the strategic framework should be based on the findings of organizational capacity assessment which will look at the strengths and weaknesses of BMOs and at the impact, effectiveness and efficiency of the work of the association and on the way the work is being carried out, in addition to the external environment in which they operate - Members- needs survey as well needs of the relevant SME sector: this will provide an assessment of the quality of services and identify the services needed by BMOs- members and the relevant SME sector

Management Response: [Added: 2018/08/13] [Last Updated: 2020/12/14]

The recommendation is acceptable and will be integrated into future UNDP private sector development project/programme based on availability of resources and solutions negotiated with the donors. In particular, future programme will be designed:

  • Deliver follow-up support to recipient BMOs in 2015-2018 to strengthen sustainability or results of the previous phase;
  • Conduct additional research on BMOs and business development services (both demand and supply sides);
  • Promote networking, collaboration and platform thinking among different BMOs, including the Chamber of Commerce, in order to strengthen their synergies and therefore the impact on the private sector development;
  • Supporting public-private dialogue based on regulatory impact assessment etc.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Integrate the recommendation into Project Document for the Phase II of the Project
[Added: 2018/08/13] [Last Updated: 2020/08/07]
Country Office, Portfolio Manager, Business Development Unit 2020/02 Completed 7 BMOs of the Phase-I will become the project’s participants of the BMO-Phase II in order to strengthen sustainability of the results; Networking and public -private dialogue are embedded in BMO-II. History
4. Recommendation:

Evaluation recommendation 4. UNDP should support targeted BMOs and other business associations in future projects to develop platform for inter-firm cooperation through clusters or networks of firms, as a means to enhance competitiveness of SMEs in the local and export market

Small business associations should not be seen only as service associations but also as a platform that would promote inter-firm cooperation through cluster or network. Small firms have difficulty to compete individually in the local and export market and to meet the outsourcing requirements of foreign companies in terms of minimum order quantities (MOQ) and delivery logistics, unless they cooperate together in one or more of the following areas: design of product, joint purchase of raw materials and equipment, joint marketing. UNDP project should continue in future projects to promote the transformation of other business associations as a concept and model that provides the platform for interfirm cooperation. 

Management Response: [Added: 2018/08/13] [Last Updated: 2020/12/14]

The recommendation is acceptable and will be integrated into future UNDP private sector development project/programme based on availability of resources and solutions negotiated with the donors. In particular, future programme will be designed:

  • Deliver follow-up support to recipient BMOs in 2015-2018 to strengthen sustainability or results of the previous phase;
  • Conduct additional research on BMOs and business development services (both demand and supply sides);
  • Promote networking, collaboration and platform thinking among different BMOs, including the Chamber of Commerce, in order to strengthen their synergies and therefore the impact on the private sector development;
  • Supporting public-private dialogue based on regulatory impact assessment etc.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Integrate the recommendation into Project Document for the Phase II of the Project
[Added: 2018/08/13] [Last Updated: 2020/08/07]
Country Office, Portfolio Manager, Business Development Unit 2020/02 Completed 7 BMOs of the Phase-I will become the project’s participants of the BMO-Phase II in order to strengthen sustainability of the results; Networking and public -private dialogue are embedded in BMO-II. History
5. Recommendation:

Evaluation recommendation 5. The scaling up of the current UNDP project to cover the meso level in selected regions of Ukraine would require an understanding of the whole business associations infrastructure as well as knowledge of the available business development services

The improvement of business development services to SMEs would require that UNDP undertakes the two following: (1) A diagnostic of business associations in selected regions or at the national level; and (2) A database on available business development services (BDS) in selected regions where future UNDP interventions are expected. The diagnostic of BMOs would enable UNDP to select the associations that can be considered as real business associations with significant representation. The database on BDS would allow the BMOs to refer SMEs to the appropriate BDS organization when the service is unavailable in the BMO. 

Management Response: [Added: 2018/08/13] [Last Updated: 2020/12/14]

The recommendation is acceptable and will be integrated into future UNDP private sector development project/programme based on availability of resources and solutions negotiated with the donors. In particular, future programme will be designed:

  • Deliver follow-up support to recipient BMOs in 2015-2018 to strengthen sustainability or results of the previous phase;
  • Conduct additional research on BMOs and business development services (both demand and supply sides);
  • Promote networking, collaboration and platform thinking among different BMOs, including the Chamber of Commerce, in order to strengthen their synergies and therefore the impact on the private sector development;
  • Supporting public-private dialogue based on regulatory impact assessment etc.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Integrate the recommendation into Project Document for the Phase II of the Project
[Added: 2018/08/13] [Last Updated: 2020/08/07]
Country Office, Portfolio Manager, Business Development Unit 2020/02 Completed Recommendations integrated in the Phase II of the Project, specifically Component 2: Better MSMEs’ access to Business Development Services through BMOs History
6. Recommendation:

Evaluation recommendation 6. UNDP should not confine its support to few BMOs, rather it needs to support in future projects a network of business associations at the regional level that would improve business service provision to the whole SME sector. Single business associations, particularly the small ones, are unable to meet the needs of SMEs for services unless they join and coordinate efforts in the provision of selected services

BMOs should be able to address the challenges faced by the relevant SME sector and meet their needs and not confine their outreach to the membership. While service provision to members can be within the capacity of most of the targeted BMOs which have small number of members, a single business association, particularly the small ones, is unable to meet the needs of SMEs for services unless they join and coordinate efforts in the provision of selected services, such as training of SMEs in specific areas, exchange of experience through joint events, participation in fairs and exhibitions. UNDP needs to support a network of business associations at the regional level through training and coaching.

Management Response: [Added: 2018/08/13] [Last Updated: 2020/12/14]

The recommendation is acceptable and will be integrated into future UNDP private sector development project/programme based on availability of resources and solutions negotiated with the donors. In particular, future programme will be designed:

  • Deliver follow-up support to recipient BMOs in 2015-2018 to strengthen sustainability or results of the previous phase;
  • Conduct additional research on BMOs and business development services (both demand and supply sides);
  • Promote networking, collaboration and platform thinking among different BMOs, including the Chamber of Commerce, in order to strengthen their synergies and therefore the impact on the private sector development;
  • Supporting public-private dialogue based on regulatory impact assessment etc.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Integrate the recommendation into Project Document for the Phase II of the Project
[Added: 2018/08/13] [Last Updated: 2020/08/07]
Country Office, Portfolio Manager, Business Development Unit 2020/02 Completed In its Phase II, the Project will support creation of BMO networks and coalitions and facilitate their cooperation with the Ukrainian Chamber of Commerce and Industry, relevant regional Chambers, and other bigger organizations in as much as such cooperation benefits the MSME sector. History
7. Recommendation:

Evaluation recommendation 7. UNDP is to enhance the capacity of BMOs in understanding advocacy strategy and partnering with universities and research centres for the preparation of evidence-based proposals

In view of the small size of most business associations, training on advocacy should focus on helping them understand advocacy strategy and communication rather than enable them to formulate proposals. Small BMOs do not have the human and financial resources to prepare the proposals. Since proposals should be evidence-based and require extensive research, BMOs should partner with universities, think tanks, research centres which can help them in the formulation of proposals. 

Management Response: [Added: 2018/08/13] [Last Updated: 2020/12/14]

The recommendation is acceptable and will be integrated into future UNDP private sector development project/programme based on availability of resources and solutions negotiated with the donors. In particular, future programme will be designed:

  • Deliver follow-up support to recipient BMOs in 2015-2018 to strengthen sustainability or results of the previous phase;
  • Conduct additional research on BMOs and business development services (both demand and supply sides);
  • Promote networking, collaboration and platform thinking among different BMOs, including the Chamber of Commerce, in order to strengthen their synergies and therefore the impact on the private sector development;
  • Supporting public-private dialogue based on regulatory impact assessment etc.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Integrate the recommendation into Project Document for the Phase II of the Project
[Added: 2018/08/13] [Last Updated: 2020/08/07]
Country Office, Portfolio Manager, Business Development Unit 2020/02 Completed In its Phase II, the Project will support creation of BMO networks and coalitions and facilitate their cooperation with the Ukrainian Chamber of Commerce and Industry, relevant regional Chambers, and other bigger organizations in as much as such cooperation benefits the MSME sector. History
8. Recommendation:

Evaluation recommendation 8. UNDP is to enhance cooperation between business associations in the adoption of common position when advocating for a change in reform or regulation in the business environment

In view of the small size of the BMOs, it is difficult for them to succeed in advocacy activities and in changing laws and regulations in the business environment without achieving consensus on issues related to the needed reforms. UNDP future interventions should enhance networking and cooperation between business associations in order to reach a consensus on major issues to be presented to the national or regional authorities for change in laws and regulations. The same platform proposed in the abovementioned recommendation on service provision can be used for the purpose of advocacy. 

Management Response: [Added: 2018/08/13] [Last Updated: 2020/12/14]

The recommendation is acceptable and will be integrated into future UNDP private sector development project/programme based on availability of resources and solutions negotiated with the donors. In particular, future programme will be designed:

  • Deliver follow-up support to recipient BMOs in 2015-2018 to strengthen sustainability or results of the previous phase;
  • Conduct additional research on BMOs and business development services (both demand and supply sides);
  • Promote networking, collaboration and platform thinking among different BMOs, including the Chamber of Commerce, in order to strengthen their synergies and therefore the impact on the private sector development;
  • Supporting public-private dialogue based on regulatory impact assessment etc.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Integrate the recommendation into Project Document for the Phase II of the Project
[Added: 2018/08/13] [Last Updated: 2020/08/07]
Country Office, Portfolio Manager, Business Development Unit 2020/02 Completed Integrated in the Phase-II of the Project. Thematic trainings will be provided to BMOs at the meso-level to build specialist capacity of BMO teams (e.g. service provision, advocacy etc History
9. Recommendation:

Evaluation recommendation 9. The success of advocacy efforts at the national level would require from the business associations to partner with influential private sector organizations such as the Ukraine Chamber of Commerce and Industry, as well as with the regional chambers. UNDP should consider the possibility of supporting the Ukraine Chamber in the restructuring of the organization and supporting capacity-building activities for regional chambers.

Advocacy at the national level would need partnering with more influential organizations such as the Ukraine Chamber of Commerce and Industry, as well as with the newly established Ukrainian Entrepreneurs Union (SUP) which represents the interests of SMEs and large businesses. UNDP should support the Ukraine Chamber in reforms: creation of SME department and creation of a research unit for advocacy purposes. In this connection, it is worth mentioning that the Ukraine Chamber expressed its interest to cooperate with UNDP, since such “cooperation will promote and strengthen the “image” of the Chamber”. The Chamber wishes to get involved in future UNDP project interventions. One of the area of interest of the Chamber where it needs support is the creation of a research centre that would help in advocacy activities. Joint activities between chambers of commerce and other associations in the regions will enhance the relationship between chambers and agree on common issues, which can be presented to the national chamber. By doing so, the regional chambers can in turn have influence on the national chamber for advocacy purposes. The involvement of the Ukraine Chamber of Commerce and Industry in advocacy activities would contribute significantly to the success of the proposals presented by the BMOs. 

Management Response: [Added: 2018/08/13] [Last Updated: 2020/12/14]

The recommendation is acceptable and will be integrated into future UNDP private sector development project/programme based on availability of resources and solutions negotiated with the donors. In particular, future programme will be designed:

  • Deliver follow-up support to recipient BMOs in 2015-2018 to strengthen sustainability or results of the previous phase;
  • Conduct additional research on BMOs and business development services (both demand and supply sides);
  • Promote networking, collaboration and platform thinking among different BMOs, including the Chamber of Commerce, in order to strengthen their synergies and therefore the impact on the private sector development;
  • Supporting public-private dialogue based on regulatory impact assessment etc.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Integrate the recommendation into Project Document for the Phase II of the Project
[Added: 2018/08/13] [Last Updated: 2020/08/07]
Country Office, Portfolio Manager, Business Development Unit 2020/02 Completed The Phase II of the Project envisages cooperation with the Ukrainian Chamber of Commerce and Industry and up to 5 regional Chambers of Commerce as newly selected BMOs members. In addition, Activity 3.1. envisages support to the Chamber in its organizational reform directed at the creation of SME department and a research unit for advocacy purposes. History
10. Recommendation:

Evaluation recommendation 10. The success of public-private sector dialogue would depend primarily on the capacity of BMOs to jointly advocate for deregulation and on the capacity of the public sector to get a better understanding of the required reforms and in the application of Regulatory Impact Assessment (RIA) as a methodology for assessing the impact of draft legislations on the various sectors of the economy, before its adoption by the government.

The success of public-private sector dialogue would depend primarily on the capacity of private sector representatives to achieve consensus among themselves on the issues that need to be addressed and on the joint presentation of evidence-based proposals. Such mechanism would make easy for the public sector to assess the proposals instead of dealing with big number of proposals originating from many BMOs. The role of the public sector will be that of a facilitator to translate the proposals into legislations. In addition to building the capacity of the private sector (as discussed in the part related to advocacy), the role of UNDP would be to build the capacity of the national and regional authorities in understanding issues related to macro-economic conditions and reforms needed to improve the business climate based on international experience. UNDP is to further increase ability of the Ministry of Economic Development and Trade as well as other authorities for the application of the Regulatory Impact Assessment (RIA) as a methodology for assessing the impact of draft legislations on the various sectors of the economy before its adoption by the Parliament or the Government (for the sub-laws).

Management Response: [Added: 2018/08/13] [Last Updated: 2020/12/14]

The recommendation is acceptable and will be integrated into future UNDP private sector development project/programme based on availability of resources and solutions negotiated with the donors. In particular, future programme will be designed:

  • Deliver follow-up support to recipient BMOs in 2015-2018 to strengthen sustainability or results of the previous phase;
  • Conduct additional research on BMOs and business development services (both demand and supply sides);
  • Promote networking, collaboration and platform thinking among different BMOs, including the Chamber of Commerce, in order to strengthen their synergies and therefore the impact on the private sector development;
  • Supporting public-private dialogue based on regulatory impact assessment etc.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Integrate the recommendation into Project Document for the Phase II of the Project
[Added: 2018/08/13] [Last Updated: 2020/08/07]
Country Office, Portfolio Manager, Business Development Unit 2020/02 Completed Strengthening capacity of BMOs to advocate for deregulation is included in the Phase-II of the Project as Activity 3.2. Support partnerships for advocacy and dialogue History
11. Recommendation:

Evaluation recommendation 11. SECO should consider a longer-term duration of the next phase of the project and allow for more flexibility in project revision.

In view of the fact that capacity development of BMOs and adoption of reforms in the business environment are a long process, SECO should consider increase its funding to UNDP and extend the duration of the next phase of the project to at least five-year duration. More flexibility is to be provided to UNDP to introduce changes to the project design and revision to the budget with the view to allow UNDP to adapt to changing conditions in the political and socio-economic environment. 

Management Response: [Added: 2018/08/13] [Last Updated: 2020/12/14]

The above recommendation will be discussed with the donor for the Phase II and its implementation will depend on the conditions of the new cost-sharing agreement .

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Hold a meeting with SECO on the results of the final evaluation
[Added: 2018/08/13]
Country Office, Portfolio Manager, Business Development Unit 2018/08 Completed Final Board held on 30 June 2018, the recommendations were presented.
12. Recommendation:

Evaluation recommendation 12. SECO should also consider the provision of funding to UNDP to widen the scope of the next phase of the project to include private sector development.

UNDP support to BMOs and reforms would need to be complemented by support to private sector development at: (1) the policy level particularly direct support to the government in developing the relevant policy framework with particular attention to the promotion of public-private sector dialogue; and (2) firm level with the view to enhance firm competitiveness in the local and export market.

Management Response: [Added: 2018/08/13] [Last Updated: 2020/12/14]

The above recommendation will be discussed with the donor for the Phase II and its implementation will depend on the conditions of the new cost-sharing agreement.  

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Hold a meeting with SECO on the results of the final evaluation
[Added: 2018/08/13]
Country Office, Portfolio Manager, Business Development Unit 2018/08 Completed Final Board held on 30 June 2018, the recommendations were presented.

Latest Evaluations

Contact us

1 UN Plaza
DC1-20th Floor
New York, NY 10017
Tel. +1 646 781 4200
Fax. +1 646 781 4213
erc.support@undp.org