IDG utilizes a market-systems approach to achieve private sector development and economic growth. This approach lays emphasis on the 5Rs (resources, roles, relationships, rules, and results) and the ways they are connected. A market systems approach aims to grasp the ways in which markets operate by understanding the factors that hinder economic diversification in Regional Value Chains (RCVs) and Global Value Chains (GVCs). Our market-systems approach usually entails utilizing Revealed Comparative Advantage (RCA) and Theoretical RCA to determine economic growth and diversification priorities. Our activities can focus on the following factors affecting markets:
The Moldova Competitiveness Transition Activity (MCTA) focused on providing economic recovery and post-pandemic assistance to Moldova’s tourism sector. IDG offered technical assistance and support through a grants program totaling $1,213,815 to local tourism micro, small, and medium enterprises (MSMEs) and flagship organizations in the light industry and tourism sectors, and institutional capacity building support of these organizations. $554,967 was awarded for in-kind resiliency grants to 40 MSMEs, including guesthouses, tourism providers, and unique small businesses, in response to the Russia’s invasion of Ukraine.
Of the 83 enterprises and groups assisted by the USAID Project team, 45 were ICT firms and the remaining firms were 38 “ICT-enabled firms” operating in sectors such as apparel and textiles, specialty foods, and manufacturing. Technical assistance included strategic/business planning, market development, production planning, quality control, and financial management. Training covered soft skills and technical skills, mainly for newly recruiting staff.
The goal of the project was to increase employment and output through the development of small and medium enterprises. The purpose was to increase the number of new business start-ups and expand existing business in the SME sector. This was done through analyzing the Small and Medium Enterprise (SME) Program in Morocco and an established educational resource for SME development through franchising. Specifically, IDG assisted the CEM in identifying existing Moroccan businesses with the potential and the resources to be packaged as franchises; assisted the CEM and American Chamber of Commerce in Casablanca with identifying potential Moroccan licensees with interest in contracting with American franchisors; identified and negotiated contracts with US and South African franchises that were interested in expanding to Morocco; designed and implemented a franchising training program and one-day workshop for Moroccan businessmen; designed a curriculum for a follow-up training program.
The TROPRO project in the West Indies contributed to the development of three regional organizations: Organization of Eastern Caribbean, Caribbean Agricultural Research and Development Institute, and Caribbean Agricultural Trading Company.
The project addressed regulatory reform, by aiming to simplify procedures for entrepreneurs to establish and operate businesses, and by assisting ministries and government departments in the design of clear sets of regulations and guidelines. IDG managed the development of lower-cost business solutions that are useful and useable for small enterprises, specifically information on prices, quality of production, and market opportunities.
IDG developed and led a comprehensive training program on the internationally recognized Association of Chartered Certified Accountants syllabus for international and national certification and licensing. The ACCA model was used in order to reform the educational curriculum in the training of future accountants in Armenia.
IDG reviewed a franchise program sponsored by the Malaysian Government with the specific aim of increasing investment and SME ownership opportunities for ethnic Malays. IDG conducted a financial sector analysis and assessed the viability of Franchise Association as a self-regulatory body; trained trainers and consultants; and conducted workshops for the business community and the professional staff within the Ministry.
IDG provided experts who worked on franchise conversion opportunities, retention strategies, franchise guidelines, and other pertinent information to ensure franchise sustainability and effectiveness.
IDG worked on the ASMED project were establishing a trading market and building market linkages and strengthening the industry’s infrastructure.
Through a franchise development program managed by IDG, USAID South Africa succeeded in creating several hundred SME opportunities for formerly disadvantaged black entrepreneurs. Through standardization in training and operating systems, these firms upgraded financial controls, staff training, and marketing practices.
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