UNDP/AdTrade Project: Energy Efficiency and Labor Productivity for SMEs

The UNDP/AdTrade project assists micro, small and medium enterprises (MSMEs) in developing and increasing their export potential. As of 2020, 89 entrepreneurs have received support that helped them set up their own enterprises, as well as existing enterprises to expand their production capacity, carry out foreign trade activities and be competitive.

Program Overview

• The Business Support Programme, which runs under the Sweden-UK-funded UNDP AdTrade project, managed by the Agency for Innovation and Development, focuses on supporting promising businesses, especially those led by women and/or targeting innovation, re-engineering and productivity improvement, market expansion and exports, as well as on the efficient use of energy and renewable energy sources. Based on this open call, at least 5 business projects on the left bank of the Dniester River will be selected. Priority is given to those business projects that can prove their sustainability, innovative character, efficient use of energy and renewable energy sources, increased labor productivity and competitive advantage. Innovations in both management and production processes are encouraged. For 12 months, the beneficiaries will have access to free training courses and mentoring services offered by practitioners from different sectors, employees of local companies with successful experience on both banks of the Dniester. As a result, each of the beneficiary companies is expected to create at least 1 job.

Funding Information

• Selected projects will receive support of up to USD 30,000 each in the form of purchasing equipment (production machines, machinery, equipment, etc.) and providing services that will contribute to business development (business process optimization, marketing, branding, packaging etc.). The total budget allocated to at least 5 projects is USD 150,000.
• It is mandatory to co-finance at least 20% of the costs of equipment/services for the development of the business project. This contribution must be covered from sources other than those provided by the AdTrade project.

Ineligible Expenses

• Procurement of seedlings, animals, seeds, motor vehicles including motorcycles (the exception being agricultural machinery), pharmaceutical products, medical equipment, any equipment procured without the prior approval of the AdTrade Project;
• Expenses for ceremonies, parties, celebrations and the purchase or production of alcoholic beverages, tobacco products, weapons, luxury goods, other goods prohibited by UN Rules, including those related to the organization of gambling;
• Expenses for purchases or activities that were previously covered from other sources;
• Expenses for financial services, such as interest on loans, repayment of credit debts and loans;
• Expenses for taxes and fines: such expenses cannot be included in the project budget;
• Purchases or events that are not necessary to achieve the purposes of the Program;
• Obligations and/or debts, fines and penalties imposed on the beneficiary.

Eligibility Criteria

• Project ideas that meet the following eligibility criteria will be admitted to the competition:
  • Applications must be submitted by legal entities or individual entrepreneurs with a simplified taxation system;
  • Business projects must provide for a contribution of at least 20% of the amount requested in the project application. All funding sources must be clearly indicated in the application form. The contribution must be provided in cash.
  • At least one permanent job will be created.
  • Applications can be submitted by businesses that can prove their sustainability and that can provide financial statements for the last two years;
  • Priority will be given to applications that implement technologies aimed at increasing labor productivity, energy efficiency in the production process, the use of renewable energy sources
• Each entrepreneur will be able to benefit from a single grant, even if several applications will be submitted from the same company/natural person

Evaluation Criteria

• Applications are evaluated against the following criteria listed below.
  • The proposal promotes more efficient use of internal and external resources (money, materials, personnel and other assets), market expansion and exports (10 points)
  • The proposal focuses on the efficient use of energy and renewable energy, increasing labor productivity (10 points)
  • The proposal specifically targets and supports women-led businesses (10 points)
  • Innovation can include new processes, products or services that provide a competitive advantage and contribute to the long-term sustainability of the enterprise. (20 points)
  • The application of modern technology to solve existing problems and create new opportunities is clearly presented and justified (10 points)
  • The application includes the intended results and how the implementation of the project will improve the efficiency of the company’s products and the sector as a whole (20 points)
  • Cost reduction by at least 10% (10 points)
  • There is a clearly defined path for the activities to be implemented, with a clearly defined logic and clearly defined result indicators (10 points)
  • Risk assessment and mitigation measures are clearly defined (20 points)
  • The proposal includes a sustainability plan beyond the project period, including the potential for replicability (20 points)
  • The applicant is financially stable and can provide financial statements for the last two years (10 points)

For more information, visit United Nations Development Programme.