Post on 09-Mar-2018
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development (SEED) i
September 31, 2016
This publication was produced for review by the United States Agency for International
Development.
It was prepared by AECOM.
STRENGTHENING
ENTREPRENEURSHIP AND
ENTERPRISE DEVELOPMENT (SEED)
QUARTERLY REPORT (THIRD QUARTER)
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development (SEED) i
STRENGTHENING
ENTREPRENEURSHIP AND
ENTERPRISE DEVELOPMENT (SEED)
QUARTERLY REPORT (THIRD QUARTER)
Submitted to:
USAID Egypt
Prepared by:
AECOM International Development
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development (SEED) ii
DISCLAIMER:
The authors’ views expressed in this document do not necessarily reflect the views of the United
States
Agency for International Development or the United States Government.
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development (SEED) iii
TABLE OF CONTENTS
List of Acronyms and Abbreviations ............................................................................................... v
List of Acronyms and Abbreviations (Continued) ............................... Error! Bookmark not defined.
I. Executive Summary ................................................................................................................... 1
1.1 Summary of Results for the Reporting Period and Key Achievements............................... 1
1.2 Challenges and Other Critical Issues ................................................................................................. 3
II. Introduction............................................................................................................................... 3
2.1 Seed Quarter 3 Operating Environment .......................................................................................... 4
III. Component Activity Implementation ........................................................................................ 5
3.1 Component A: Entrepreneurship Skills and Opportunities....................................................... 5
3.1.1 Key Activities Accomplished Under Component A ............................................... 5
3.1.2 Key Activities Planned for the Next Reporting Period ...................................... 14
3.1.3 Lessons Learned for Future Implementation ........................................................ 15
3.2 Component B: Financial and Non-Financial Services ............................................................... 16
3.2.1 Key Activities Accomplished Under Component B............................................. 16
3.2.2 Key Activities Planned for Next Reporting Period .............................................. 24
3.2.3 Lessons Learned for Future Implementation ........................................................ 26
3.3 Component C Intergration of Msmes in Value Chains ............................................................ 26
3.3.1 Key Activities Accomplished Under Component C ............................................ 26
3.3.2 Key Activities Planned for Next Reporting Period .............................................. 32
3.3.3 Lessons Learned for Future Implementation ........................................................ 33
IV. Implementation of Grants Component ................................................................................... 33
4.1 Description of Grants ......................................................................................................................... 33
4.2 Key Activities Accomplished Under the Grants Component ............................................... 34
4.3 Key Activities Planned for the Next Reporting Period ........................................................... 35
V. Cross Cutting Activities Implemented ..................................................................................... 36
5.1 Gender and Youth ................................................................................................................................. 36
5.2 Communication and Marketing ....................................................................................................... 40
5.2.1 Key Activities Accomplished ....................................................................................... 40
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development (SEED) iv
5.3 Internet Communication Technology ............................................................................................ 43
VI. Management and Administrative Issues ................................................................................. 45
6.1 Personnel .................................................................................................................................................. 45
6.2 Operations ................................................................................................................................................ 47
6.3 SME Connect ........................................................................................................................................... 47
6.4 Onesource ................................................................................................................................................ 48
6.5 Environmental Compliance ................................................................................................................ 49
6.6 Safety and Security................................................................................................................................ 49
VII. Monitoring and Evaluation ...................................................................................................... 50
7.1 Development and Submission of the Seed M&E Plan ............................................................ 50
7.2 Indicators .................................................................................................................................................. 58
7.3 Development of Monitoring and Evaluation Tools .................................................................. 60
7.4 Development of the Seed Ict Platform .......................................................................................... 62
7.5 Baseline Survey ....................................................................................................................................... 63
7.6 M&E Activities Next Quarter ............................................................................................................. 63
Annex I: Seed in Action May-July 2016 ......................................................................................... 64
Annex II: List of Memoranda of Understanding (MOU) Signed .................................................... 67
Annex III: Summary Reports of Seed Events May-July 2016 ......................................................... 68
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development (SEED) v
LIST OF ACRONYMS AND ABBREVIATIONS
Arab Academy for Science, Technology & Maritime Transport (AASTMT)
American Chamber of Commerce in Egypt (AmCham)
American University of Cairo (AUC)
Business Development Services (BDS)
British University in Egypt (BUE)
Contracting Officer (CO)
Chief of Party (COP)
Contracting Officer’s Representative (COR)
Department for International Development (DFID)
Egyptian Banking Institute (EBI)
Egyptian Financing Supervisory Authority (EFSA)
Eitesal Business Nurturing Initiative (EBNI)
European Bank for Reconstruction and Development (EBRD)
Egyptian Center for Public Policy Studies (ECPPS)
Egyptian National Competitiveness Council (ENCC)
Environmental Monitoring and Mitigation Plan (EMMP)
Emergency Preparedness Plan (EPP)
Egyptian Regulatory Reform and Development Activity (ERRADA)
European Union (EU)
Federation of Chambers of Commerce (FEDCOC)
Federation of Egyptian Industries (FEI)
Gender Action Plan (GAP)
General Authority for Investment and Free Zones (GAFI)
Global Affairs Canada (GAC)
Gulf Cooperation Countries (GCC)
Deutsche Gesellscahft fur Internationale Zusammenarbeit (German Federal Enterprise for
International Cooperation) (GIZ)
Government of Egypt (GOE)
Industrial Development Authority (IDA)
Initial Environmental Examination (IEE)
Information, Communication, Technology (ICT)
International Labour Organization (ILO)
Industrial Modernization Centre (IMC)
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development (SEED) vi
Information Technology Industry Development Agency (ITIDA)
Knowledge Economy Foundation (KEF)
Key Performance Indicators (KPI)
Local Compensation Plan (LCP)
Long-Term Technical Assistance (LTTA)
Micro and Small Enterprises (MSE)
Micro, Small, and Medium Size Enterprises (MSME)
Monitoring and Evaluation (M&E)
Monthly Action Plans (MAP)
Memorandum of Understanding (MOU)
Ministry of Social Solidarity (MOSS)
Ministry of Trade and Industry (MTI)
Non-Governmental Organization (NGO)
National Council of Women (NCW)
National Supplier Development Program (NSDP)
Operational Security Plan (OSP)
One-Stop-Shop (OSS)
Program Management Unit (PMU)
Price Waterhouse Coopers (PWC)
Request for Proposals (RFP)
Strengthening Entrepreneurship and Enterprise Development (SEED)
Swedish International Development Cooperation Agency (SIDA)
Social Fund for Development (SFD)
Small and Medium Enterprises (SME)
Scope of Work (SOW)
Short-Term Technical Assistance (STTA)
Technology Innovation and Entrepreneurship Center (TIEC)
Training of Trainers (TOT)
Technology Innovation and Commercialization Offices (TICO)
Technology Transfer Offices (TTO)
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
1
I. EXECUTIVE SUMMARY
1.1 SUMMARY OF RESULTS FOR THE REPORTING PERIOD AND
KEY ACHIEVEMENTS
The following Quarterly Report provides a review of the activities, successes, and challenges for
the Strengthening Entrepreneurship and Enterprise Development (SEED) Project for the period of
May 1 - July 31, 2016. This period saw substantial progress for the SEED Project in advancing its
goals of improving the entrepreneurship ecosystem in Egypt, promoting a broad range of
business development services, and facilitating value chain linkages in the economy.
In order to establish the project as a principal actor in the entrepreneurship and SME development
community, SEED laid the foundations for significant and meaningful relationships with other key
players in the community. During the quarter, Memoranda of Understanding were completed with
a number of organizations with the intent of creating partnerships that encompass all of SEED’s
technical capacities with broad geographic reach across Egypt. For example, SEED signed an MOU
with Enpact, a not-for-profit organization that focuses on developing entrepreneurship skills and
opportunities for youth to create “Entrepreneurship Camps” in communities outside of Cairo.
SEED also signed MOUs with other key stakeholders including but not limited to the Federation
of Egyptian Industries (FEI) and the National Council of Women (NCW).
Through SEED’s Component A, focusing on developing entrepreneurship skills and opportunities,
the project launched a nationwide mentorship initiative, which began with a national mapping
exercise to pinpoint where entrepreneurship mentorship services exist, and where there is the
greatest need for additional support. SEED is also designing a twinning initiative between
incubators/accelerators and local best practice organizations in order to create a pilot program
for start-up incubators with innovative, effective, and cost-efficient models. Component A is
directing its efforts at improving critical skills, practices, and methodologies at
incubators/accelerators, including leadership, service delivery, long term sustainability,
replicability, and inclusion of women and youth.
Component B, with a mandate to improve financial and non-financial business development
services, has been successful in engaging with the BDS community in Egypt. The project has been
coordinating with both the Social Fund for Development and the General Authority for Investment
and Free Zones (GAFI) to create a nationwide network of high-functioning One-Stop-Shops (OSS)
to support the creation of new businesses and to promote economically efficient interactions
between the private and public sectors. SEED has built a productive relationship with the Egyptian
National Competitiveness Council (ENCC) to provide assistance in developing and implementing
its strategic plan. Our first interaction with ENCC resulted in a productive working session on
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
2
Egypt’s proposed new Value Added Tax (VAT) legislation, with a focus to help others advocate for
the law being designed in a way that does not inhibit MSMEs.1 SEED also developed strong
relationships with the Egyptian Banking Institute (EBI), the training arm of the Central Bank, and
the Financial Services Institute (FSI), the training arm of the Egyptian Financing Supervisory
Authority (EFSA). This resulted in the project sponsoring a series of workshops and seminars to
support innovative and SME-friendly financial services, including factoring, credit guarantees,
social performance monitoring, and innovative financial product development.
Component C, which is dedicated to the integration of MSMEs in select value chains (VC),
continued its value chain selection process, including shortlisting seven subsectors2, conducting
cost-benefit analyses for those subsectors, and developing an environmental mitigation
framework to be implemented for each subsector as needed. SEED completed an analysis of
Corporate Social Responsibility (CSR) activities being undertaken in Egypt, and has begun the
process of partnering with large firms in order to provide support services, mentorship, and VC
linkages to MSMEs. The project is also closely coordinating with the Federation of Egyptian
Industries (FEI) to develop that organization’s CSR Unit to provide more coherent and integrated
services to its members.
In terms of policy reform, SEED received approval to start working with ERRADA on a review of all
the articles in relevant laws that affect MSMEs. This is highly supported by the MTI and will result
in several recommendations to change the law itself. SEED also drafted a SOW for a STTA
consultant to develop a comprehensive Advocacy Manual for both private and public sector
stakeholders. This will be completed prior to the end of the year. As a follow-up to this
assignment, SEED has drafted a SOW and is in the process of hiring a STTA consultant to work
with the FEI’s Policy Unit to help them better understand, plan, and implement advocacy
campaigns on behalf of their members. Lastly, SEED met with the USAID WISE project to explore
areas where we can collaborate. One potential area of collaboration is with the ENCC in building
their capacity in terms of MSME policy reform advocacy.
During this period, SEED launched its grants program with an initial call for concept papers. The
response to this call has been immense, indicating the clear need for the types of support services
that SEED is offering. As of this writing, SEED’s grants unit had received over 100 concept notes.
The deadline for receipt of concept papers is scheduled for August 14th, 2016.
1 As of the writing of this report, the Egyptian Parliament has adopted the new VAT, which excludes all businesses
up to a revenue threshold of 500,000 LE. 2 Dairy production, fisheries, automotive parts and accessories, contract furniture, solid waste management, plastics,
and ready-made garments.
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
3
1.2 CHALLENGES AND OTHER CRITICAL ISSUES
II. INTRODUCTION
This quarter saw a number of exciting developments with new and potential stakeholders, the
strengthening of existing partnerships, and a predominant attitude of responsiveness on the part
of partners and stakeholders to the progressive strategies offered by SEED. The program
continues to present practical, professional, and innovative support to its stakeholders through
varied professional interventions. These interventions include in-depth pre and post intervention
assessments, workshop delivery, forum moderation, business consultancy, institutional support,
training, and technical assistance. These interventions empower beneficiaries and lead to realistic
goal setting and objective completion by institutions, thereby strengthening the MSME sector
throughout Egypt. Although the reporting period covers the traditionally slow days of summer,
Ramadan, and Eid al Fitr, SEED successfully increased cooperation with its stakeholders, achieved
several deliverables, and most importantly, set the stage for fulfilling its objectives related to
sustainable improvement of the entrepreneurial and MSME ecosystem in Egypt.
Nine months into SEED’s implementation, the program team has completed several
milestones, including:
General trainings and Training of Trainers (ToT) for financial institutions;
Forums to facilitate networking and collaboration with the ecosystem;
Presentations and technical assistance to women’s organizations;
Stakeholder mapping exercises;
Value Chain assessments before final VC identification;
Development of assessments and selection criteria for incubators;
Scope of Work drafting for key sector interventions (OSS, BDS, Policy Reform, etc.); and
Nine (9) Memoranda of Understanding signed.
These MOU were developed through collaborative processes that set out goals, strategies for
reaching these goals, required assistance in the form of expertise, training and capacity building,
and key benchmarks for marking progress. For example, cooperation between SEED and the
Federation of Egyptian Industries, the nation’s largest cluster of industry organizations,
commenced in earnest within 5 days of signing the MOU.
The FEI MOU covers the organization as a whole, and entails a broad reform plan under the
direction of its active chairman Mohamed El-Sewedy. Areas of SEED support to FEI and its
chambers and committees includes support to the newly formed Women in Business Unit, CSR
Unit, Policy Reform Unit, and stakeholder engagement units through internet and alternative
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
4
media platform outreach. The other MOU serve a similar purpose as a roadmap of SEED
interventions and impact. Additional MOU with other key stakeholders are in discussions and are
expected to be signed in the next quarter. The reporting period also witnessed the launch of
SEED’s first grants program, called the Entrepreneurship and Innovation Fund (EIF).
The SEED Project’s main event of the quarter was held on May 23, 2016. Branded “A Networked
Approach to Entrepreneurship and Enterprise Development”. The event laid out the groundwork
for a strong and interactive relationship with ecosystem stakeholders, and informed and
sharpened the USAID SEED project’s profile and objectives. Following the forum, the over 180
participants received an email containing a contact directory, with guidance for further networking
and information sharing. One of the unexpected, yet most significant outcomes of this event was
the establishment of a very close relationship with SEED’s primary point of contact at the Ministry
of Trade and Industry (MTI), Dr. Sherine El Sabagh. Dr. Sabagh is both the head of all international
donor coordination at the MTI and the head of MTI’s Policy Unit.
2.1 SEED QUARTER 3 OPERATING ENVIRONMENT
The reporting period has seen a series of interesting and encouraging developments in the
landscape in which SEED operates, notably the Egyptian government’s interest and eagerness in
pushing forward genuine economic reforms, much of which focus on the recognition and support
of SMEs. The MTI is in the process of drafting legislation which would task the Industrial
Development Authority (IDA) with managing and tendering land allocated to industrial projects.
This legislation, and others like it, grants the New Urban Communities Authority (NUCA) exclusive
rights to manage allocating land for housing and erode the powers of the General Authority for
Investment and Free Zones (GAFI) to tender land under the Investment Law. The new Industry
Permits Act is anticipated to limit excessive bureaucracy when obtaining industry permits, shorten
the time required to obtain such permits to 30 days, and name the IDA to be the sole permit
authorization and issuance party. Interestingly, the environmental and security codes will not be
enforced for industrial permits.
The House of Representatives is currently drafting a law governing SMEs, with the goal of forming
a single accredited body responsible for the domestic SME sector. The proposed agency would
be responsible for business formation, liquidation, and taxation in the SME sector. The move is
aimed at facilitating funding and decreasing the risk of SME credit default. This comes as the
Finance Ministry prepares to introduce legislation that establishes a new tax framework for SMEs,
to follow the introduction of the national Value Added Tax (VAT) law by the Parliament. The much
debated VAT law is part of a government reform program which hopes to inspire IMF investment
confidence, and is aimed at eventually approving an agreement between the government (Egypt)
and the global lender (IMF) on a $12 billion fund facility, to be disbursed over three years. The
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
5
new tax, which is scheduled to be implemented in September, was expected to be voted on in
Parliament before the end of this reporting period but was delayed due to ongoing debates in
connection with its rate. While the Parliament argued for a VAT rate of 12 percent, the Cabinet
insisted on a 14 percent rate. SEED is participating in this discussion in support of the MSME sector
by supporting the ENCC’s VAT forum with several Parliamentarians, as well as the in the drafting
and issuance of a position paper about the potential effects of VAT on MSMEs.
One hundred new factories are also planned to be constructed as part of the first phase
development of the new plastic industrial complex in Alexandria, named Plastic City. Older
factories will be upgraded as well. Plastic City is expected to attract investments worth EGP 100
million and generate production worth EGP 40 million per month, with 50% of the latter exported
to Arab and African markets.
MTI is also working on a new export subsidy program targeting a 10% annual growth rate of
exports by offering an additional subsidy of up to 15% for manufacturers who can grow their
exports by 25%, depending on their domestic component and targeted export market. The IDA is
also set to issue 350 feddans of infrastructure-ready land for SME projects in Port Said. The
projects are set to be in the food, engineering, textile, weaving, and chemical sectors. The
remaining land plots will be used for an integrated industrial complex for smaller investors. Only
25% of the land’s price will be paid up front, while the rest is slated for installments over five years,
with a two-year grace period.
Finally, the MTI, through the offices of Dr. Sherine El Sabagh, is taking proactive measures to better
manage, align, and coordinate the various types of donor assistance being provided. Several
synergy meetings have taken place, with all the counterparts slowly beginning to understand each
other’s role. SEED sees significant potential to contribute to this and to leverage its support with
other USAID projects, as well as those funded by the Government of Egypt (GOE), European Union
(EU), German Gesellschaft fur Internationale Zusammenarbeit (GIZ), and International Labour
Organization (ILO).
III. COMPONENT ACTIVITY IMPLEMENTATION
3.1 COMPONENT A: ENTREPRENEURSHIP SKILLS AND OPPORTUNITIES
3.1.1 KEY ACTIVITIES ACCOMPLISHED UNDER COMPONENT A
During this quarter, Component A hired three STTA consultants:
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
6
One Mentorship STTA who is working to map all of the existing mentorship services and service
providers. The consultant is drafting and will submit a report with recommendations on the actions
needed to establish a broader, better, and more sustainable mentorship network for the
entrepreneurial community.
One International Incubator Expert and one Local Incubator Expert who works hand in hand
to assess and select pilot incubators/accelerators. They are also identifying existing skills, service
gaps, and capacity building needs. With set criteria for pilot incubators, they will also conduct
multiple trainings during the month of August.
Meanwhile, SEED is finalizing an agreement with the principal authors of the 2016 Egypt
Global Entrepreneurship Monitor or “GEM” report. GEM is the world's foremost study on
entrepreneurship, and provides high quality information, comprehensive reports, and impact
stories, which, in turn will greatly enhance the understanding of the entrepreneurial landscape in
Egypt. GEM reports are being conducted in over 100 countries, further adding to their value as a
basis of comparison. SEED will be the main partner in delivering and publishing this report in
Egypt.
RESULT A.1: STIMULATED ENTREPRENEURSHIP AMONG WOMEN AND YOUTH
The team continues to play an active role in the Entrepreneurship & Innovation Committee (EIC) of
the American Chamber of Commerce in Egypt (AmCham). SEED has been involved in a series of
meetings with the EIC, which has led to several introductions and potential partnerships with key
players within the ecosystem.
In this quarter, the team received and reviewed proposals and concept notes, as summarized
below, from the following potential partners:
Technisummit to partner on networking events in the Delta and Upper Egypt;
EYouth to support nationwide business plan competitions reaching over 1,000 Egyptian
youth in over 10 governorates;
Innovety to sponsor a business plan competition in Mansoura that will provide intensive
capacity building and high level training to participants, with an aim to empower youth and
women and prepare them to become future business owners;
Arab Academy for Science & Technology and Maritime Transport (AAST) to provide
implementation support to an entrepreneurship pilot program for the university;
Ahead of the Curve to promote an awareness campaign promoting entrepreneurship among
youth and women, and establish a sustainable network of trainers who will work to deliver
the program’s content in various universities;
Enpact to develop a national camp focused on creating a mentorship network;
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
7
Heliopolis University to establish a sector-focused incubator, an entrepreneurship center, and
an entrepreneurship curriculum in the university; and
Flat6labs to provide technical assistance to increase institutional capacity, and provide boot
camps for early-stage entrepreneurs.
SUB-RESULT A.1.1: IMPROVED ACCESS TO MENTORING AND ENTREPRENEURSHIP
SERVICES FOR WOMEN AND YOUTH
With the assistance of the Mentorship Consultant, SEED was able to conduct a mapping exercise
of current mentoring services being offered across the country, including women and youth-
focused programs. The mapping exercise also identified where geographical and gender-based
gaps exist. To further assist Component A, the Consultant met with existing mentorship programs
such as Enpact, Sharek, and AWTAD. Subsequently, SEED conducted surveys to assess the best
tools and develop approaches that improve the capacity, quality, and coverage of mentorship
programs for entrepreneurs and startups. These approaches also emphasized broad accessibility
and efficacy for women and youth. The Consultant is currently drafting a report comprising all of
the results, findings, conclusions, and recommended next steps to bolster the effectiveness of
mentorship in Egypt. Finally, the Consultant will be highlighting potential partners for SEED in the
area of mentorship.
Moreover, SEED signed an MOU with Enpact, a non-profit organization, founded in August 2013
with the aim of strengthening economic relations between young entrepreneurs from the startup
arenas in the Middle East, North Africa, and Europe. Our intention is to collaborate to form a
“National Mentorship Camp” to empower entrepreneurs from marginalized regions, build a
mentoring network of young Egyptian startups exclusively focused outside of Cairo, and provide
policy recommendations in order to enhance the entrepreneurial ecosystem in Egypt. The value
added through mentoring will give the incentive for long-term involvement. The objective of this
effort is to create a new cadre of mentors, through the training of entrepreneurs, to become future
mentors.
In order to develop a high-quality and readily accessible online platform, the team worked closely
with SEED’s subcontractor, Souktel, to better understand the Egyptian entrepreneurial ecosystem,
and to develop relevant online intervention tools. With that purpose in mind, an RFP was issued
for a market research company to conduct a mapping and assessment exercise of existing and
planned platforms, similar to SEED’s envisioned platform. It is anticipated that the market research
will provide in-depth understanding of the Egyptian market, including information about other
organizations that provide or are planning to provide similar services in the future. An analysis of
usage trends and the level of engagement of various content types and channels will be
highlighted and incorporated into the feature and service recommendations. Additionally, the
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
8
research is expected to provide a comprehensive analysis of the feasibility and efficacy of both
online and mobile platforms in urban and rural areas (while illustrating the distinction between
these).
As part of Component A’s deliverables of creating entrepreneurship networking workshops, a one-
day event entitled “A Networked Approach to Entrepreneurship and Enterprise Development” was
held on May 23, 2016. The event highlighted the importance of collaboration and networking among
mezzanine organizations which support the growth and expansion of entrepreneurship and enterprise
development in Egypt. The event also formally introduced the SEED Project to the Egyptian ecosystem.
The event format included:
Opening speeches by USAID and other stakeholders;
Three interactive and concurrent panel discussions, each led by well recognized champions
addressing a high-priority issue of relevance;
A closing session featuring wrap-up summaries of the panel sessions and “next steps” for the
entrepreneurship and MSME ecosystem; and
A closing keynote address by a dynamic ecosystem thought leader.
Actual attendance exceeded expectations, with 181 registered participants, composed of 98 males
and 83 females. Participants expressed high satisfaction with the event, both verbally and in the
post-event survey. Participants gave the event an overall satisfaction rating of 4.1 (out of 5) and
indicated their appreciation for the opportunity to network and share ideas stimulated by the
event. They also commented that the panel discussions were very fruitful; noting that bringing
together Egyptian government representatives, the private sector, and NGOs to discuss the
challenges to and path forward for the entrepreneurship and MSME ecosystem was highly
beneficial. The selection of the venue and format of the event produced an ideal environment for
networking. Based on the success of this event, SEED will build on the momentum, created by
holding additional events, with similar formats, for project beneficiaries in and outside of Cairo.
Participant recommendations for future events will be incorporated, as will the results of SEED’s
lessons-learned meetings, which took place after the event.
SUB-RESULT A1.2: INCREASED INTEREST AND SKILL AMONG WOMEN AND YOUTH TO
PURSUE ENTREPRENEURIAL CAREERS
In keeping with the project’s commitment to local partnerships, SEED signed an MOU with Injaz, to
implement a school program that introduces business and financial literacy to students, focusing on
schools in 5 different governorates. To account for the anticipated slow implementation of the Injaz
MOU, due to the requirement for GOE approvals, SEED has also worked on exploring additional
partners, with the goal of creating a pilot to introduce entrepreneurship into school programs. Given
that the approval process, managed by the Ministry of Social Solidarity (MOSS), can take from 3 to12
months before an approval decision is made. To overcome this hurdle, SEED has explored potential
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
9
cooperation with the AAST. This partnership will establish entrepreneurship-based school programs
in Cairo and Alexandria. SEED also initiated discussions with Ahead of the Curve, to capitalize on that
organization’s agreement with the Ministry of Education to introduce entrepreneurship programs.
Additionally, SEED is currently exploring areas of potential cooperation with the USAID Science
technology Engineering and Math (STEM) school program.
Looking ahead, the Entrepreneurship University Program Consultant, is scheduled to begin a
consultancy during the next quarter, and will focus on designing and augmenting
entrepreneurship educational programs for universities. The program(s) will incorporate both an
overview of what entrepreneurship is and what being an entrepreneur means. The program will
also cover specific business-related aspects that are integral to entrepreneurship, including but
not limited to:
Market and competitive analysis,
Business planning,
Risk management,
Product innovation,
Service differentiation,
Marketing,
Fundraising,
Financial management, and
Human resources.
To further enhance university-based entrepreneurship education, an RFP was prepared for 3
different business plan competitions for university students, with a focus on business and financial
literacy. The business plan competition will take place in different governorates around Egypt. A
number of organizations and universities have been shortlisted and are pending final review and
approval from the COP and AECOM’s Home Office.
RESULT A2: IMPROVED AVAILABILITY AND ACCESSIBILITY OF ENTREPRENEURSHIP
SERVICES, WITH A FOCUS ON BUSINESS INCUBATORS AND ACCELERATORS
SUB-RESULT A2.1: INCREASED NUMBER OF INCUBATORS MANAGED ACCORDING TO
INTERNATIONAL BEST PRACTICE
During this quarter, SEED conducted a second round of field assessments of incubators and
accelerators in Egypt. Together with the International Incubator Consultant, SEED completed an
in-depth assessment. The team also developed comprehensive selection criteria, a mapping of
international best practices and laid the groundwork for twinning with local best practice
organizations. As a result of the assessment, the team was able to determine the organizations'
primary needs as well as their potentials. Such determination will be integral to designing a future
development plan, in accordance with international best practices.
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
10
The International Incubator Consultant is also designing assessment tools, to guide SEED in
selecting better pilot incubators, mapping and assessing incubators in Egypt, and determining the
needs and replication potential of select international best practices across Egypt. These tools are
as follows:
Best Practice Framework Assessment,
Pilot Incubator Selection Criteria Matrix,
Incubator Fact Sheet and Baseline Data Form, and
Mapping the Egyptian Entrepreneurial Eco-System, including Incubators & Accelerators.
The team has narrowed down the selection of the pilots to 6 incubators/accelerators. This shortlist
is undergoing a thorough selection process. The potential pilot incubators are:
Heliopolis University for Sustainable Development as a sector-focused incubator;
Eitesal Business Nurturing Initiative (EBNI) as an Internet-of-Things pilot accelerator;
Startology as a Construction/Real Estate and Facilities Management incubator/accelerator;
INJAZ as a potential accelerator model;
Baladini as a Kitchen Incubator sector specific model; and
Egyptian Chefs Association as a sector specific incubator model.
SUB-RESULT A2.2: IMPROVED SERVICES OFFERED BY INCUBATORS AND
ACCELERATORS
It is noteworthy to point out that the assessment tools established will help SEED in selecting the
adequate pilots to implement international best practices for greater impact, assist in the design of
the 5 training modules, and contribute to determining capacity building and technical assistance
needs of pilot incubators. Thus, instead of designing traditional classroom training, we intend to
apply a mix of theoretical and practical training workshops to emphasize international and local best
practices, as well as couple the day-to-day needs with the local organizations. Subsequently, SEED
plans to develop 3-4 local best practice case studies that excel in their respective areas, and
consequently create on-the-job trainings and twinning programs for longer and more sustainable
relationships within the entrepreneurial ecosystem in Egypt.
Selected local best practice case studies are as follows:
American University in Cairo (AUC) Venture Lab Incubator;
Flat6 Labs Accelerator; and
Endeavor Cluster for High Impact Entrepreneurs.
Training modules that are being designed by the STTA incubators experts and are planned to be
conducted in August 2016 are as follows:
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
11
Client Selection Criteria,
Outreach & Marketing Strategies,
Lean Startup,
Market Assessment, and
Financial Sustainability.
Our main targets when selecting the pilots relate to their operating structures, services offered,
and/or business model. Replication may include adding new incubators to the same organization
in different locations, or establishing new standalone incubators using one of the business models
of the pilots. The key ingredient in either of these approaches is sustainability. The pilot incubator
selection criteria have similarly gone through several stages of development and, as a result, have
evolved into the following:
Leadership,
Services delivery,
Potential for sustainability,
Complete and coherent business model,
Inclusion of women and youth,
Outreach to less advantaged communities,
Commitment to Monitoring and Evaluation (M&E),
Replication potential, and
Development Potential.
Part of the International Incubator expert's task is to develop a Scope of Work (SOW) for an
international expert to work on Technology Transfer Offices (TTOs) and Technology Innovation and
Commercialization Offices (TICOs) across Egypt. The SEED team has identified the Academy of
Scientific Research & Technology (ASRT) as an excellent partner and stakeholder in this effort. ASRT
has 34 TTO GOE-funded offices in its network, and within the next quarter, six will be selected to
receive SEED assistance for the improvement of their quality, outreach, and overall operational
efficiency.
SUB-RESULT A2.3: INCREASED ACCESS, ESPECIALLY IN DISADVANTAGED
COMMUNITIES, TO INCUBATORS AND ACCELERATORS
In partnership with our subcontractor, Souktel, SEED attended a design and planning forum for the
Information and Communications Technology (ICT) Platform and arranged 3 focus groups in several
areas (Entrepreneurs, VC’s, Private Sector, NGOs, etc.) for Souktel representatives to attend during
their visit to Cairo. Given the potential impact of such a platform and the complexity involved, not to
mention the need to coordinate with several other MSME platform-related initiatives in Egypt, SEED
has decided to (a) hire a Senior Advisor to manage this intervention, and (b) hire a company to
conduct preliminary research on how to increase awareness and access financial and non-financial
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
12
services outside of Cairo. The RFP for the research has been drafted and will be issued at the
beginning of the next quarter.
SEED has also met with, and preliminarily agreed to support existing and new stakeholders who
seek to focus their entrepreneurial efforts outside of Cairo. For example, Technisummit in
Alexandria and Mansoura; the Arab Academy for Science, Technology, and Maritime Transport
(AAST) in Alexandria, Aswan and Port Said; ASRT who will soon join the national incubator initiative
“ENTLAQ” (meaning kickoff or set and go) in Assuit, Sohag, Port Said, Cairo and Suez; and the
Technology, Innovation, and Entrepreneurship Center (TIEC) in Assuit and Alexandria.
During this quarter, SEED received specific requests for assistance, which included:
The Social Fund for Development (SFD) support to:
Provide technical assistance to their malfunctioning incubators across Egypt, in continuation
to the work previously performed by the USAID-funded Egypt Competitiveness Project (ECP);
Support in equipping and converting some outbound (virtual) incubators to inbound
(physical) incubators;
Organize internal (Egypt-based) incubator study tours to help facilitate twinning programs
between local best practices and less sophisticated, or new incubators; and
Participate in an international study tour that SEED will conduct during Year 2 of the project,
for local incubators to visit counterpart organizations and stakeholders in the US.
Technology Innovation and Entrepreneurship Center (TIEC) support to:
Provide training and technical assistance to three technology parks scheduled to open
between 2016 - 2018;
Increase efficiency in running incubators programs in Upper Egypt;
Provide technical assistance to improve TIEC's competence and capability to conduct
entrepreneurial summer activities and curricula in high schools across Egypt; and
Enable further private sector involvement in providing access to finance for incubators.
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
13
SUB-RESULT A2.4: INCREASED GOE CAPACITY TO UNDERSTAND AND RESPOND TO
ENABLING ENVIRONMENT CONSTRAINTS
SEED has been very careful in working with GOE entities in terms of determining the exact points
of potential cooperation as well as in identifying champions who can facilitate our interventions
to be best aligned with their mandate. Several meetings were conducted with institutions such as
the ENCC, SFD, TIEC, IMC, ITC, and the MTI. SEED is being very cautious in its approach to GOE
entities and once selected, will complete specific work plans with one or more of these
organizations in the coming quarter. SEED also plans on restructuring the GOE capacity and
advocacy aspects of the SEED project such that one Senior Advisor, reporting directly to the COP,
will coordinate all relevant policy reform and advocacy related activities across all project
components.
Relevant Activities:
During this quarter, SEED continued to build its network and deepen relationships with other key
players in the ecosystem. In that context, the team participated in the following events:
American University in Cairo’s Venture Lab Demo Day: The V-Lab incubator held its
Demo Day, featuring a round of incubation assessments, and invited investors and
entrepreneurship ecosystem players to learn more about the incubated projects.
The Future of the Sharing Economy in the Middle East - The Case of Careem: A forum
focused on the ride-hailing service Careem was held at AUC. The panel discussed the
sharing economy and how it affects entrepreneurship in the Middle East, capturing how
Careem became one of the fastest growing businesses in the region.
Launch of 1864 Accelerator - A Partnership between Flat6Labs & Barclays: This event
launched a new initiative to foster the FinTech space in Egypt by transforming innovative
ideas to practical projects, by providing the necessary financial and technical support to
develop the next wave of brilliant entrepreneurs in Egypt. Flat6 Labs has approached SEED
for technical assistance with their boot camp and for additional plans on future twinning
collaborations.
The Road to GES: The day-long summit, which took place at the AUC campus in
downtown Cairo, was packed with sessions featuring international and Egyptian speakers,
entrepreneurs, investors, and policy makers, making for an exceptional networking
opportunity. The forum discussed the state of entrepreneurship in Egypt and the region,
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
14
celebrated several Egyptian success stories, and generated a great deal of energy and
excitement around the entrepreneurship ecosystem.
Information Technology Industry Development Agency (ITIDA), TIEC, and the
Innovation Cluster Initiative (iCi) Workshop: ITIDA and its innovation affiliate, TIEC,
introduced the recently launched iCi fund, supporting the creation of innovation clusters
in targeted cities in which new technology parks are currently under development by
Silicon Waha (Oasis). The iCi fund will disburse up to EGP 40 million per cluster.
EBNI Pitching Event: The EBNI Incubator is the first Internet-of-Things (IoT) incubator in
Egypt. It is sponsored by the Etiesal Foundation, an IT foundation comprised of around
150 IT companies and individual members, with the purpose of improving the IT
environment in Egypt. During the event, 4 teams from Cycle 1 completed 10 minute
pitches of ideas, business models, and team building strategies. SEED’s COP conducted a
couple of short sessions on “How to Pitch in 5 Minutes” and “Sales Strategies”, in addition
to providing feedback and recommendations after every pitch to the startups on how to
gear their business model towards the planned goal.
The team also went on a field visit to Alexandria to meet with potential partners including:
- AAST for cooperation in schools, universities, and a sector-focused Supply Chain and Logistics
Accelerator;
- Alexandria Business Women Association (ABWA) for cooperation on a gender sensitive
MSME network; and
- Technisummit for entrepreneurship ecosystem networking in different governorates around
Egypt with a model similar to Rise-Up.
3.1.2 KEY ACTIVITIES PLANNED FOR THE NEXT REPORTING PERIOD
- Complete hiring of all Component A LTTA staff;
- Conduct two workshops, one in Cairo and another in Upper Egypt, on Financial Sustainability
to Incubators and Accelerators;
- Design 2 training modules to increase the capacity of pilot incubators selected by SEED;
- Hire STTA consultants to work on designing and implementing strategies (and write up a
manual) to develop Entrepreneurship Centers in universities across Egypt;
- Hire STTA consultants to work on increasing the operational efficiency of TTOs in Egypt;
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
15
- Sign MOU for planned activities with key stakeholders (e.g. ASRT, AAST, Nahdet El
Mahroussa, Rise-Up, Baladini, TIEC, AUC, Endeavor) and start working on developing and/or
enhancing entrepreneurship curricula for schools and universities;
- Conduct one TTO workshop on increasing operational efficiency and identifying means of
linking academia with industry needs;
- Conduct one Mentorship workshop;
- Conduct one women-focused Startup Weekend workshop & business plan competition; and
- Work closely with the different stakeholders and international donor projects on developing
SEED’s entrepreneurship and enterprise SMEConnect ICT Platform.
3.1.3 LESSONS LEARNED FOR FUTURE IMPLEMENTATION
SEED has discovered the importance of determining the legal framework of the entities that
the project may establish partnerships with. Based on discussions with the project’s lawyers, it
might take more time than expected to ensure that recipient entities, whether public, private,
local or international, can obtain the necessary authorization from the GOE to receive financial
and/or non-financial resource assistance from SEED. SEED will continue to work closely with
its lawyers in developing a check-list for the selection of recipients, as well as adequate
contractual language to better accommodate this very real legal hurdle with respect to foreign
entities (e.g. SEED) delivering donor-funded assistance to Egyptian entities.
Based on an extensive, in-depth assessment of the entrepreneurial ecosystem and the myriad
incubators and accelerators across Egypt, SEED has determined that there are very few true
incubators in Egypt that focus on start-up, early stage enterprise development, and which
provide tailored services to meet entrepreneur’s needs. Rather, most of the efforts are in the
‘acceleration’ arena, characterized by a specified start and end date and admittance of a cohort
of clients, which are at a similar stage of enterprise development (idea/pre-enterprise, formal
start-up, growth, etc.). Also well recognized is the fact that most of these provide a
standardized sequence of assistance for all of the participants rather than offer an
individualized or customized approach that would lead to better funding and long term
success upon graduation.
Identifying local best practice case studies for mezzanine entities to adopt is extremely
important. International best practices, while valuable, are not always applicable to the local
context. The SEED team has discovered that it is better to facilitate on-the-job training and
twinning agreements with industry champions that are well respected by sector stakeholders.
Mentorship and consultancy are often used interchangeably in the entrepreneurial ecosystem
in Egypt. It is extremely important to raise awareness, among our partners, of the importance
of developing their network of consultants (subject matter experts) to better serve their clients
in their respective fields. Based on this information, sector specific needs and concerns are
likely to represent the highest demand on SEED’s anticipated SMEConnect ICT portal.
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
16
SEED will complete MAP (Monthly Action Plan) for Year 2, as it proved to be a very useful tool
in guiding programming throughout Year 1 of the project.
Penetration of the entrepreneurship environment in areas outside of Cairo continues to be a
substantial challenge. Significant lack of information, awareness, knowledge, maturity, and
resources are the biggest challenges that SEED has faced. In order to reach the maximum
number of target audiences, SEED hopes to develop a customized strategy of partnering with
existing champions in areas such as Sohag, Assuit, Alexandria, Aswan, and Mansoura.
SEED will continue to coordinate with existing international donors working on similar
projects in order to avoid duplication, leverage resources, and ultimately ensure the
greatest possible impact of USAID’s SEED Project.
3.2 COMPONENT B: FINANCIAL AND NON-FINANCIAL SERVICES
3.2.1 KEY ACTIVITIES ACCOMPLISHED UNDER COMPONENT B:
RESULT B.1: IMPROVED AVAILABILITY AND ACCESSIBILITY OF EFFECTIVE AND EFFICIENT
BDS
SUB-RESULT B.1.1: INCREASED NUMBER OF EFFECTIVE ONE-STOP SHOPS
SEED recruited a One Stop Shop (OSS) Consultant and is currently finalizing the onboarding
process, with an anticipated start date of August 21, 2016. Additionally, SEED met with the Head
of the SFD non-financial services sector, Dr. Rafaat Abbas, who informed the SEED team of SFD’s
collaboration with the European Bank for Reconstruction and Development (EBRD) on a study
conducted on OSS best practices. While the intent is for SEED to assist the SFD in implementing
the recommendations of the study, the project team is still awaiting copies of the report, despite
several reminders to SFD. Throughout this quarter, SEED has completed the following:
o SEED translated a summary brief of EBRDs study, provided by SFD, from Arabic to English.
o SFD is currently reviewing a draft SOW for a SEED consultant, whose main tasks will include
supporting the SFDs goal of concluding a more broad–based and demand-driven approach to
their OSS offerings. The OSS Consultant, scheduled to begin the consultancy this month, will
also contribute to this goal, although the SOW will not be limited to the SFD.
o SEED developed an MOU with FEI, to assist the latter in developing a plan for the formatting of
FEI’s OSS unit. The MOU states that the SEED OSS Consultant will conduct onsite visits to FEI
and subsequently author the plan to guide FEI’s implementation. SEED also agreed to meet with
GAFI to discuss the potential for collaboration to support GAFI’s OSS and BDS center.
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
17
o SEED drafted an MOU with FEDCOC and met with FEDCOC’s Chairman, Mr. Ahmed El Wakil;
Secretary General, Dr. Alaa Ezz; and Tamayouz’s newly appointed Coordinator, Mr. Mohamed
Sallam, to discuss the following:
o Information relevant to the upcoming Consultant’s work;
o Clarification on FEDCOC’s plans to create a Tamayouz Academy;
o Strategic understanding of FEDCOC’s plans for establishing new Tamayouz centers and
satellite offices;
o Finalization of the MOU and Consultant’s SOW.
SUB-RESULT B.1.2: INCREASED EFFECTIVENESS OF BDS PROVIDERS
During this quarter, SEED received several concept notes for potential collaboration and initiative
support including:
o Alashanek ya Balady (AYB) sent a concept note to enhance the socio-economic inclusion of
young people and women through entrepreneurship and BDS support.
o The National Council of Women (NCW) signed a Letter of Intent to establish a women’s
business development center, which will serve as a hub for all the women BDS providers in
the country.
o Beit El Karma Consulting group (host of DARPE), sent a concept note seeking support to
improve their BDS quality and outreach.
Moreover, SEED contributed to the mentoring component of the Swedish Institute, upon delivery
of the Women SME’s Leadership Program. SEED also sponsored a BWE21 BDS capacity building
workshop for its members where SEED’s COP, Dr. Adam Saffer, presented.
SEED recruited and contracted a Consultant to conduct a cross-Egypt BDS market assessment.
The Consultant will start work towards the end of August. Using secondary source documents
from the ECP and other donor funded projects and studies, the Consultant will develop a database
of BDS providers, assess the current services, and recommend improvement and development of
new services based on market needs.
SEED developed a SOW to improve the performance of SFD’s BDS unit, using the BDS strategy
developed by the USAID-funded ECP, for SFD, in 2013. SFD has requested SEED support in
implementing the strategy, including capacity building for SFD staff. Currently, SFD is reviewing
the SOW. Recruitment of the Consultant will be initiated once feedback is received from SFD.
SUB-RESULT B.1.3: IMPROVED MSME ACCESS TO EFFECTIVE BDS TOOLS AND SERVICES
Component B discussed the options for using ICT tools to help MSMEs gain access to business
development services with Microsoft, ILO, DARPE, and others. Based on this discussion, SEED
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
18
launched an RFP to develop an ICT Platform aimed at supporting the needs of entrepreneurs and
MSMEs through a wide range of BDS services. These services include access to finance, business
planning, program management, marketing, business information, and tendering. The main focus
of this RFP will be to identify and assess existing platforms, and collaborate with other platforms
where possible, in order to minimize market confusion and unnecessary repetition. SEED is also
working with existing BDS providers to help improve their management skills, services, and
outreach capacity, with a particular emphasis on women and youth in disadvantaged areas.
SUB-RESULT B.1.4: INCREASED CAPACITY AMONG BDS PROVIDERS AND ASSOCIATIONS
TO ADVOCATE FOR POLICY CHANGE AND GOE TO ENACT REFORMS
SEED reached an agreement with the ENCC to provide support in developing ENCC’s strategic
plan, guidelines for an advocacy campaign, website development, and general capacity building
for ENCC’s staff. More specifically:
The STTA SOW for ENCC’s Strategic Planning and Capacity Building was finalized and
announced.
SEED began recruiting a consultant who will work with ENCC during the 3rd week of
September.
SEED sponsored and provided the guest speaker and moderator for an ENCC conference on
VAT, with a specific emphasis on the potential implications of such a law on MSMEs. The
conference was hosted by the ENCC and included parliamentary members, businessmen,
consultants, and tax experts from the Ministry of Finance. The event was attended by 100
participants and included a speech by the Assistant Minister of Finance during the conference
plenary session. A position paper on the impact of VAT on SMEs was developed by the
moderator of the conference, which will be used in the ENCC’s advocacy campaign to relevant
committees within the Parliament.
Several meetings were conducted with Dr. Sherine El Sabagh, the Head of the Policy Unit and
Coordinator of all donor funded activities at the Ministry of Trade and Industry. Both parties
share a goal of improving the enabling environment for all MSMEs. As a result, conversations
naturally centered on the coordination of efforts between the Ministry and SEED to reforming
laws and regulations concerning entrepreneurship and MSMEs.
Meanwhile, SEED developed a SOW for a team of 3 consultants to support ERRADA in conducting
an inventory of the key laws and regulations affecting MSMEs. This will be followed with another
project for the Ministry, funded by the British Council, to analyze the impact of these laws and
regulations, deliver recommendations for changes to existing laws, and suggest new laws and
regulations to better support the enabling environment for MSMEs. SEED’s team of Consultants
will also support developing ERRADA’s existing website to make it more interactive and service
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
19
oriented towards MSMEs.
Finally, SEED developed a SOW to hire a reputable firm dealing with survey techniques and
statistical analyses to review the methodology of the first publication of the SME Performance
Indicator Report authored by the Egyptian Center for Public Policy Studies (ECPPS). The main task
of the firm will be to review the statistical methodologies used, and make recommendations to
improve the quality of the forthcoming reports, planned as a comparative analysis in each
governorate. The selected firm will also be responsible for building the capacity and capability of
ECPPS to conduct research in accordance with international best practices.
B.2. IMPROVED AVAILABILITY AND ACCESSIBILITY OF FINANCIAL PRODUCTS AND
SERVICES
B.2.1: INCREASED CAPACITY OF PUBLIC AND PRIVATE INSTITUTIONS TO DEVELOP, USE,
AND MARKET FINANCIAL PRODUCTS AND FUNDING MECHANISMS FOR MSMES
B.2.1.1: FINANCIAL INSTITUTIONS AND MFI CAPACITY TO ADAPT/DEVELOP, USE, AND
MARKET FINANCIAL PRODUCTS FOR MSMES STRENGTHENED.
SEED conducted its first workshop for microfinance institutions, focusing on Social Performance
Management (SPM) with the Coptic Evangelical Organization for Social Services (CEOSS). The
overall objective of the workshop was to support CEOSS in increasing its outreach and accessibility
to its target markets. The workshop was conducted at the CEOSS premises from May 18-20, 2016.
Mr. Ahmed Abdel Wahab, SEED’s Financial Products Senior Advisor, delivered the training to 18
participants (14 males and 4 females). The workshop was designed to address the social aspects
of the work, and performance within the management and operational structures of financial and
non-financial service providers. After completing the workshop, participants were better able to:
Translate the MFI’s mission into social, business, or financial goals;
Develop social objectives, and various approaches to achieve them;
Collect social performance information from internal and external stakeholders;
Design tools to analyze diverse sources of information, to monitor and assess their social
performance; and
Align their operational systems with their social goals.
A pre and post assessment was conducted to measure the improvement in the participants’
knowledge and skills. The mean score for the pre-workshop assessment was 56.1 percent, with
individual scores ranging from 40 to 80 percent. The mean score for the post-workshop
assessment was 76.6 percent, with individual scores ranging from 40 to 100 percent. The average
improvement in the participants’ individual scores was over 20 percent as presented in the graph
below.
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
20
Following the workshop, SEED’s Financial Products Senior Advisor further discussed CEOSS’ needs
and the forms of assistance SEED could provide. Subsequently, SEED and CEOSS reached an
agreement, in which SEED would support CEOSS in improving their risk management, customer
service management, financial product development, and establishment of a new BDS unit. The
MOU was developed and signed by CEOSS management and SEED’s COP, Dr. Adam Saffer.
In collaboration with the Egyptian Banking Institute (EBI), SEED conducted a workshop for financial
institutions focused on product development for SMEs. Representatives from three banks
attended and completed the workshop, including the Housing and Development Bank, Industrial
Development and Workers Bank, and Qatari National Bank. The workshop was conducted at the
EBI premises from June 2-5, 2016, with a total of 21 participants (17 males and 4 females). The
workshop was designed to address the first stage of the product development cycle for individuals
working in SME retail and credit departments. After completing the workshop, participants were
better able to:
Define project management;
Describe the market segmentation methods as an introduction to SME market segmentation;
Explain the product design and development process;
Describe a competitive product and service range for SME banking; and
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
21
Apply the key success factors of the SME product development process.
The results of the pre and post assessment indicated that the mean score for the pre-workshop
assessment was 61 percent, with individual scores ranging from 40 to 70 percent. The mean score
for the post-workshop assessment was 92 percent, with individual scores ranging from 75 to 100
percent. The average improvement in the participants’ individual scores was over 31 percent, as
shown in the graph below.
To build the capacity of the Credit Guarantee Company (CGC), based on the World Bank needs
assessment report of March 2015, SEED developed a SOW and recruited a well-respected CGC
Consultant, to conduct this assignment. The CGC Consultant updated the findings and
recommendations of the World Bank report, developed a capacity building plan, and began
implementing top priority activities with a special focus on the needs of SMEs. A final presentation
of all of the deliverables will be completed by mid-August.
SEED also started the process of an institutional assessment for AYB, to improve the financial
performance of their microcredit program. The assessment process will cover portfolio analysis,
risk analysis, financial analysis, governance, and management needs.
B.2.1.2: USE OF AVAILABLE NON-TRADITIONAL FINANCIAL PRODUCTS INCREASED
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
22
SEED supported the Egyptian Factoring Association (EFA) to increase MSME awareness of
factoring as a non-traditional financial product, by sponsoring the 2nd Factoring Summit. The
Summit, held in May, was focused around the theme of “Factoring’s Role in Financing SME’s,
Locally and Globally.” Over 50 representatives of MSMEs, banks, factoring companies and EFSA
attended. Most notably, SEED’s Value Chain Consultant was a featured speaker at the Summit.
SEED Financial Products Senior Advisor, Ahmed Abdel Wahab, also conducted a workshop on
effective collection techniques for six field staff members of TAMWEEL’s collection company in
June 2016. TAMWEEL is a holding company that owns factoring, leasing, mortgage, and insurance
companies.
B2.2: INCREASED FINANCIAL LITERACY, INCLUDING CAPACITY TO USE FINANCIAL
PRODUCTS, AMONG MSMES AND FINANCIAL INSTITUTIONS
B.2.2.2: FINANCIAL LITERACY CAMPAIGN TARGETING MSMES UNDERTAKEN
In collaboration with EBI, SEED conducted a workshop for microfinance institutions focusing on
Financial Literacy. Representatives from three NGOs attended and completed the workshop:
Dakahlia Businessmen's Association for Community Development (DBACD), Sharkia Businessmen
Association for Community Development (SBACD), and the First Microfinance Foundation-Egypt
(FMF-E). The workshop was conducted at EBI’s premises in Nasr City from June 4-5, 2016, with a
total of 15 participants (12 males and 3 females). The workshop was designed to address the
importance of financial literacy and deliver basic training skills to NGOs that provide microfinance
services. After completing the workshop, participants were better able to:
Facilitate a financial awareness session;
Define savings as a concept;
Understand several different saving methods;
Define the concept of entrepreneurship; and
Understand the entrepreneurial process.
The graph below represents the results of the pre and post assessments for all fifteen participants. The
mean score for the pre-workshop assessment was 71 percent, with individual scores ranging from 50
to 80 percent. The mean score for the post-workshop assessment was 95 percent, with individual
scores ranging from 90 to 100 percent. The average improvement in the participants’ individual scores
was over 24 percent.
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
23
The Capacity Building Senior Advisor, Dr. Mohamed Zakaria, developed a SOW for a consultant to
design and deliver 3 modules on financial literacy, targeting both banking and non-banking financial
institutions. SEED began the hiring process for the potential consultant. The Egyptian Banking Institute
(EBI) and Financial Services Institute (FSI) are the main partners in the delivery of this financial literacy
training.
B.2.3: INCREASED GOE CAPACITY TO UNDERSTAND AND RESPOND TO
CONSTRAINTS IN THE ENABLING ENVIRONMENT FOR MSME ACCESS TO
FINANCE
B.2.3.1: CAPACITY OF EFSA AND THE CBE TO REGULATE FINANCIAL INSTITUTIONS
STRENGTHENED
SEED developed a capacity building plan for FSI which was accepted by them and they
subsequently signed an MOU with SEED. This plan includes the following activities:
o Conduct a comprehensive assessment for FSI’s organizational and functional structure,
objectives, and activities;
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
24
o Design a promising strategy for FSI (2017/2019);
o Set a capacity building plan to enable the targeted strategy;
o Organize awareness events around non-banking financial instruments, including but not
limited to leasing and factoring, to the targeted stakeholders;
o Assist in conducting a series of workshops and trainings for judges of economic courts;
and
o Design a Nationwide Financial Inclusion Awareness campaign.
3.2.2 KEY ACTIVITIES PLANNED FOR NEXT REPORTING PERIOD
B.1: NON-FINANCIAL SERVICES
The OSS Consultant will assess the existing models of OSSs at SFD, FEDCOC, MSAD/CSC and GAFI.
The consultant will then make recommendations on a standard best practice model to be applied
in these institutions. The Consultant will also supervise the change process of these OSSs and
provide advice, guidance, and assistance when needed. The Consultant will also meet with FEI to
assist them in establishing their own OSS offering, as applicable.
SEED will sign an MOU with FEDCOC to improve the performance of Tamayouz Centers and
help replicate the best practice model for application in various governorates. SEED will
support FEDCOC by providing training and technical assistance to the Tamayouz team, and
indirect support to Tamayouz clients.
The project team will solicit concept notes from the following organizations, describing the support
requested from SEED regarding BDS services:
Maan Association (Minya), to establish a BDS unit; and
The Egyptian Junior Businessmen Association (EJB), to develop demand driven business
development services.
SEED will sign an MOU with AYB to assist them in developing their financial and non-financial
programs.
SEED will sign an MOU with the Alexandria Businesswomen’ Association (ABWA) to establish a BDS
unit.
SEED will sign an MOU with the National Council of Women (NCW) to build the capacity of women
in the business unit, to work as a BDS hub for all the services provided for women in order to
support them in starting or developing their businesses.
SEED will conduct a mentoring skills workshop for AYB to improve their capacity to provide
services for MSMEs.
SEED will conduct a Business Development Management workshop for AYB to ensure quality and
sustainability of their business development services.
SEED will assess the needs of the Maan Association, EJB, and the Egyptian Businessmen’s
Association (EBA) to identify the role of SEED in supporting these organizations to provide effective
and efficient business development services for MSMEs.
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
25
SEED will develop a SOW for a gender focused BDS Consultant, to review the existing services from
a gender perspective and recommend methods to ensure the integration of gender concepts in all
the BDS activities with these organizations. The SOW is being finalized and the consultant will be
hired and begin the assignment in the next quarter.
SEED will investigate the best way of developing a scorecard tool to measure the performance
of BDS providers.
SEED will analyze alternative certifications for BDS providers, courses, or individual
trainers/consultants to improve their skills and establish their credibility with potential MSME
clients.
The project team will continue discussions with the FEI, and develop a SOW as applicable, to
help them establish a BDS unit.
SEED will meet with Vodafone, Orange, and Etisalat to explore potential collaboration in the
formation of mobile applications and tools, as part of the SEED SME Connect ICT platform.
SEED Consultants will assist staff in developing a database of BDS providers.
The project will investigate potential of entities such as the Accrediting Council for Continuing
Education and Training (ACCET), International Organization for Standardization (ISO), and the AUC
Institute of Management to act as certifying bodies to BDS providers.
The ICT team, Souktel, and consultants will continue developing tools and gathering data for
the SME Connect ICT Platform.
SEED will publish the SOW for developing a 3-year strategic business plan for ENCC, with a special
focus on MSME related activities. One such activity will focus on enhancing the ENCC website, which
will be used as an advocacy tool for business issues in general, and SMEs in particular. The
consultant(s) for these missions will be recruited and hired in the next quarter. Another SOW
will be developed to design a training manual on evidence based policy analysis whereby
ENCC and other targeted institutions will be offered this training.
Three consultants will be hired to assist ERRADA to conduct an inventory of the laws related to
MSMEs. They will also help identify the laws and regulations that need reform to improve the
enabling environment for MSMEs.
A SOW will be published to support ECPPS develop the 2016 SME Competitiveness Index for
the governorates.
SEED will set up subsequent meetings with GAFI to finalize areas of SEED cooperation and
assistance.
B.2: FINANCIAL SERVICES
SEED will develop and implement SOWs to support banks and NGOs/MFIs in various sectors
including product developments, risk management, and internal audit.
The project will finalize the assessment of the AYB and develop an action plan to assist them in
better serving the MSME community.
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
26
The Component B team will conduct 2 investment linkage forums for matchmaking between
investors and MSMEs.
The Component B team will conduct 2 TOT sessions using financial literacy modules designed
for specific audiences.
The Component B team will conduct a workshop for FSI, on setting strategies and developing a
business plan. This workshop will help FSI determine strategic directions of the institute as well
as the services they should provide, and how to reach financial sustainability.
The SEED team will identify the needs of other MFIs and take the proper action to support them
in improving their performance and increasing their outreach. These efforts should lead to
improved access to finance for MSMEs owned and managed by women and youth in
marginalized areas of Egypt.
SEED is considering to organize a forum with the Union of Banks, CBE, and other relevant
organizations in which Egypt’s leading banks share their experience and success stories on SME
lending with other banking institutions. An international speaker might also participate to share
lessons learned from around the world.
SEED will coordinate a meeting with the CIB to discuss their interest in mobile money, and
establish an E-wallet functionality with ABA and other microfinance institutions.
3.2.3 LESSONS LEARNED FOR FUTURE IMPLEMENTATION
There is no shortage of demand from ecosystem stakeholders to obtain SEED assistance to
enhance the capability of their businesses. It is critical that SEED carefully selects its partners,
based on interest, capacity to absorb programming, and sustainable utilization of SEED
assistance.
Coordinating with other projects that work with the same partners is essential to avoid
duplication of efforts and the inefficient use of scarce resources.
3.3 COMPONENT C: INTERGRATION OF MSMES IN VALUE CHAINS
During this quarter, two new team members joined the Component C team: Mr. Ahmed Hussein,
the Component Team Leader, and Ms. Amira Shoukry, the Enabling Environment Senior Advisor.
DCode, one of AECOM’s resource firms, continues to work on the Value Chain Assessment and
analysis document, with an expected delivery date near the end of August.
3.3.1 KEY ACTIVITIES ACCOMPLISHED UNDER COMPONENT C
RESULT C.1. INTEGRATED MSMES TO PROGRESSIVE VALUE-CHAINS
The Component C team was able to initiate contact with several potential partners and assess
their needs and expectations for training and technical assistance. A MOU was signed with FEI,
and an action plan was developed to implement support activities in a wide range of areas. Overall,
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
27
SEED believes that FEI will ultimately be one of, if not the most important and productive partner
for SEED over the coming months and years.
SUB-RESULT C.1.1: IMPROVED UNDERSTANDING OF MARKET AND OPPORTUNITIES FOR
MSMES IN VALUE CHAINS
Based on the analysis and weighted criteria-based assessment of economic subsectors conducted
by SEED subcontractor DCode in Phase 3 of the value chain assessment process, the following list
of 7 subsectors were identified and agreed-upon with USAID: dairy production, fisheries,
automotive parts and accessories, contract furniture, solid waste management, plastics, and
ready-made garments.
DCode continued working on Phase 4 of the value chain assessment process and delivered a draft
report on July 25th, 2016 addressing constraints perceived by stakeholders within the selected
subsectors. The report also touched upon potential interventions that SEED could support to
overcome those constraints. The report will be presented and discussed with USAID in the following
quarter.
In parallel with the DCode value chain assessment, Component C identified strong potential to
work in the horticulture value chain through partnering with the Knowledge Economy Foundation
(KEF), which is developing and operating an active information portal called “Bashaier”. This ICT
portal disseminates market information and provides market place opportunities for horticultural
buyers and sellers. In addition to serving the horticulture subsector, KEF is currently formulating
plans to expand into the dairy and fisheries subsectors, which are also two sectors of interest and
consideration for SEED.
SEED shared this information with and received consent from USAID to pursue this partnership.
SEED has now concluded a non-binding MOU with KEF outlining areas of potential collaboration
and technical assistance to be provided by SEED in the above-mentioned three value chains. The
MOU was signed by the KEF Chair Person and SEED COP on July 31.
AECOM’s Environmental Science Consultant, traveled to Egypt to conduct an assessment of
potential environmental risks and proposed mitigation measures for each of the subsectors
identified above (7 subsectors covered in the DCode assessment, plus horticulture). The
assessment was based on a review of relevant reports and presentations, stakeholder interviews
(including the Egypt National Cleaner Production Center, ENCPC), and site visits to manufacturing
and waste management facilities. The Consultant also provided a training session to SEED staff,
attended by representatives of DCode, and presented relevant findings and recommendations to
USAID. The Consultant’s final report will be finalized in the next quarter.
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
28
C.1.2 SUB-RESULT: IMPROVED SKILLS AND TOOLS TO TAKE ADVANTAGE OF
OPPORTUNITIES IN VALUE CHAINS
Component C team organized the SEED Ecosystem event on May 23, 2016 at the Marriott Hotel
in Zamalek. As part of the event, Component C led a panel discussion on “Creating Commercially
Viable Business Linkages between Buyers and MSME Suppliers”. The panel included:
Moderator: Mr. Mostafa El Halwagy, Director, Corporate Projects, Americana;
Panelist 1: Ms. Dorra Fiani, President, Knowledge Economy Foundation (KEF),
Bashaier.com;
Panelist 2: Dr. Alaa Fahmy, National Program Officer, UNIDO;
Panelist 3: Mr. Wael Refaat, Ecosystem Manager, Danone; and
Panelist 4: Mr. Samir Sedky, ANR Program Director, CARE-Egypt.
The panel tackled live linkage scenarios between buyers and suppliers and discussed how big
buyers can contribute to the creation of a healthy linkages ecosystem, while improving quality
and helping integrate new suppliers into their value chains. The success stories presented included
Bashaier and value chain projects from CARE, Danone, and UNIDO.
The Bashaier Agriculture Marketing Network uses its ICT Platform to provide farmers with
information via the web and mobile messaging. They also offer value chain training to small
farmers, in topics such as crop cycle management. It is well known that smaller scale farmers
find it more difficult to enter a value chain than wholesale buyers, due to obstacles such as
not having current marketing information, inability to secure financing for inputs, and difficulty
in obtaining pre-season supply contracts with larger factories. Bashaier has helped farmers
bridge this gap in the value chain, and sell directly to processors. One example is the renowned
linkage project for tomato paste where farmers sell their produce directly to Heinz.
Dr. Fahmy, UNIDO Country Manager, briefed the audience on UNIDO’s efforts in Egypt, especially
in Upper Egypt, and the importance of linking MSMEs to value chains, a practice which benefits
both society and big businesses. Dr. Fahmy described how small suppliers and large companies
can obtain more competitive prices for their products, and how large companies can benefit further
by selling inputs directly to the suppliers, partaking in better trainings, and standardizing quality
throughout the value chain.
Mr. Refaat from Danone and Mr. Samir Sedky from CARE-Egypt screened a short movie
showing the benefit of their partnership in assisting small enterprises in rural areas to produce
and supply milk to the Danone factory. Danone provides technical expertise, while CARE works
with the communities and the small enterprises. This model showed the importance of
partnerships between private-sector business and communities, where activities are
sustainably created for the benefit of both parties. As a result of their hard work, the Danone-
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
29
CARE project is now supplying approximately 15 percent of Danone’s dairy needs. During the
event, Danone-CARE proposed a partnership with SEED to share logistics and collaborate to
improve the value chain. This potential partnership will continue to be reviewed in the next
quarter.
C.1.3 SUB-RESULT: INCREASED ACCESS TO FINANCE TO TAKE ADVANTAGE OF MARKET
OPPORTUNITIES
Once the value chains have been selected, Component C will work closely with Component B in
assessing the current availability and future needs for traditional and non-traditional financial
products and services. One of the key areas that Component C is interested in developing is
subsector specific supplier financing, as this is often a constraint for MSMEs when bidding on and
performing supply contracts. Component C plans to leverage Component B’s network of public
and private bank and non-bank financial institutions and to building capacity in these
organizations, as well as develop demand-driven alternative financial products.
C.1.4 SUB-RESULT: STRENGTHENED LINKAGES BETWEEN MSMES AND BUYERS
Component C has assessed and identified good potential for all SEED Components for working
with the Federation of Egyptian Industries (FEI). FEI is actively engaged in several relevant activities
and initiatives including but not limited to:
SMEs cluster development;
CSR awareness and development;
Supporting “Women in Business”;
Advocacy for policy reform;
BDS and OSS services; and
Developing an ITC platform serving FEI chambers and members (90% SMEs).
SEED concluded an MOU with FEI outlining the main areas of collaboration. The MOU was signed
on July 27th by FEI’s Deputy Chairman and the SEED COP. The MOU signing meeting was also
attended by USAID’s SEED COR.
In addition to the MOU with FEI, SEED drafted two SOWs for an expatriate and an Egyptian CSR
advisor to support and coach FEI in developing its CSR strategy for the coming three years, and
action plan for the coming 12 months. As a next step, SEED and FEI will jointly organize a CSR
forum on business-focused CSR initiatives.
During the quarter, SEED assessed two linkages programs implemented by IMC:
The National Supplier Development Program (NSDP), which closed in 2015; and
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
30
The Value Chains Development Program (VCDP), which is currently operating as a successor to
NSDP.
NSDP’s assessment was very informative, and while a few of the stakeholders had negative views
as to its standard of performance, most estimated that it filled a critical gap in establishing
commercially viable linkages with MSME suppliers. This led to discussions with the Industrial
Training Council (ITC) about developing a similar program. One of the early results of these
discussions is the need for SEED to address the following lessons learned from NSDP:
To survey, assess, and carefully select committed mother companies which are interested in
developing and upgrading their suppliers;
To survey, assess, and select committed suppliers who are willing to invest in their operations
and systems so as to upgrade their technical and managerial capacities to meet the relevant
international standards; and
To support ITC through building the capacity of an operational unit to manage the program,
including the need for training in project management and value chain development.
SEED further explored opportunities for cooperation with the leading automotive manufacturer,
GM Egypt, in developing an automotive value chain effort based on GM Egypt’s significant
contribution and engagement in the NSDP. The manufacturer showed initial interest, and
suggested a partnership, contingent upon selection of the automotive parts and accessories value
chain. Simultaneously, SEED is working on concluding an MOU with the ITC as they appear to be
competent, dynamic, and committed to collaborating with SEED.
The assessment of IMC’s VCDP concluded that the VCDP staff and service providers need further
capacity building to effectively manage and implement programs across different subsectors (e.g.
fisheries, dairy, textiles, plastics, automotive parts and accessories, etc.). SEED will continue to work
with the VCDP staff to define their specific needs and discuss potential areas of support with
USAID.
SEED also concluded an assessment and mapping exercise of CSR activities in Egypt with a
particular focus on those that support entrepreneurship and MSME development. The assessment,
conducted by the Value Chain Consultant, identified and compiled information on eight CSR
initiatives and activities. The assessment identified three key lesson learned:
1) Management support is a key for successful CSR programs;
2) There is a lack of awareness of business-related CSR activities; and
3) There is limited expertise and professionals available to advise and manage business-related
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
31
CSR activities.
We also learned that there is significant potential for SEED to align and work with FEI’s newly
established CSR Unit. The assessment’s main recommendations were for SEED to support the
following:
1) Strategic planning for FEI CSR Unit;
2) Developing a CSR Manager Certification Program; and
3) Organizing, jointly with FEI, a CSR forum to present the findings of a survey conducted by
Ahead of the Curve and the American University in Beirut (AUB) and AUC Gerhart Center of
Philanthropy and Civil Engagement on the “Trends in Responsible Business Practice and Social
Entrepreneurship in the Arab Region”. This will showcase CSR interventions that advance
MSME suppliers, and in turn lead to the development of next steps to encourage and enhance
CSR activities in Egypt.
SEED is also exploring areas of potential cooperation with the AUC CSR Committee.
C.1.5: SUB-RESULT: INCREASED GOVERNMENT CAPACITY TO UNDERSTAND AND
RESPOND TO POLICY CONSTRAINTS TO MARKET MSMES INTO VALUE CHAINS
SEED is reviewing constraints, further analysis required, and ongoing activities related to increasing
the GOE capacity to understand and respond to constrains in the enabling environment for MSMEs.
The Project also determined that our approach to evidence-based policy analysis and reform (e.g.
advocacy training) should be a shared activity serving targeted groups for both Components B and
C, as it presents the same methodology to different audiences who could tailor the methodology to
their needs afterwards.
The Enabling Environment Senior Advisor immediately started compiling and contacting an initial
list of entities that are actively engaged in policy reform advocacy, research, and analysis:
SEED met with Mr. Abdel Aziz Abdel Nabi, a member of AmCham’s Subcommittee on Policy
Reform, who is a director of investment banking at “Catalyst Partners”. The AmCham
subcommittee is advocating for changing Nilex Rules to facilitate SMEs access to equity
financing. The subcommittee will conduct an awareness campaign for SMEs listing and trading
on Nilex. The subcommittee will later work on advocating for the revision of the Capital Market
Law, in order that it may provide adequate legal and regulatory framework for using Sukuk, an
internationally well-established Islamic Finance methodology, as a financing tool.
Additional communications started with various research centers, think tanks, and NGO’s
including the Economic Research Forum (ERF), Egyptian Center for Economic Studies (ECES), and
Egyptian Junior Businessmen Association (EJB).
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
32
SEED is preparing to develop a database of private and public entities involved in policy reform
focusing on MSMEs. These could be organizations that research and identify the key legal and
regulatory constraints faced by MSMEs. They could also be firms that conduct socioeconomic
analyses, including but not limited to cost-benefit analyses, and that develop sets of
recommendations and policy papers for consideration; and/or entities that use the previous two
sets of data to advocate to GOE and Parliamentary decision makers to implement needed reforms
on behalf of the MSMEs, and possibly to other relevant communities.
SEED also met with the FEI Executive Director and the Policy Unit team to discuss FEI’s capacity
building needs in the areas of policy advocacy. FEI needs to develop a methodology for its policy
reform functions that can be developed into a manual for the Policy Unit and for FEI’s thematic
committees, which are engaged in advocacy for policy, legal, and regulatory issues affecting FEI
members (90% SMEs). Moreover, FEI needs SEED support in the provision of training based on
this manual; such training would include FEI staff as well as members of its Industrial Chambers.
Accordingly, SEED has begun drafting a SOW for the delivery of evidence-based policy advocacy
training and a manual to FEI. There will also be a separate SOW drafted to develop an advocacy
manual that will be used more generally by all organizations active in this arena.
3.3.2 KEY ACTIVITIES PLANNED FOR NEXT REPORTING PERIOD
Complete the value chain sub-sector selection process.
Hire the three remaining LTTA positions for Component C (Sector Advisors) based on the above
mentioned value chain sub-sector selection.
Work closely with the chosen subcontractor on the market survey and analysis for the ICT
“SMEConnect” platform.
Finalize the assessment of the IMC’s VCDP capacity building needs, sign an MOU, and begin
providing assistance to the IMC.
Develop and implement an actions plan(s) to support the FEI.
Develop and implement an action plan(s) to support the KEF.
Explore the role of SEED supporting KEF in organizing a market linkages forum within the activities
of the Sahara Expo in October 2016.
Develop and conclude an MOU with ITC for designing and implementing an NSDP-like program.
Develop and deliver training to industry associations as well as MSMEs in fostering and managing
commercially viable business linkages with large scale buyers in selected value chains.
Work with the FEI’s CSR Unit on developing a strategic plan for the coming three years and action
plan for the coming 12 months.
Work with the FEI’s CSR Unit and leading Egyptian and multinational firms (e.g. Humana,
Americana, Danone, and Microsoft) with robust CSR programs to hold a CSR Forum to present
the findings of a survey on the “Trends in Responsible Business Practice and Social
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
33
Entrepreneurship in the Arab Region”, showcasing CSR interventions that develop MSME
suppliers, and collaboratively develop next steps to accelerate such CSR activity in Egypt.
Engage an STTA advisor to develop a database of enabling environment private and public entities
involved in policy reform focusing on MSMEs.
Identify key private and public entities involved in policy reform focusing on MSMEs which are in
need for and can participate in SEED policy advocacy trainings.
Design, draft, and implement a training program and manual for entities involved in MSME policy
reform.
Engage an expatriate STTA advisor to develop and deliver a customized evidence-based policy
advocacy manual for FEI.
Explore opportunities for interventions related to waste management and energy saving with
ENCPC.
Explore opportunities for working with the Engineering Industries Export Council and the Egyptian
Network of Automotive Feeding Industries on interventions related to automotive value chains.
3.3.3 LESSONS LEARNED FOR FUTURE IMPLEMENTATION
Potential value chain partner organizations to receive technical assistance from SEED are
mainly focusing on SMEs rather than on micro businesses. Hence, SEED will have better
chances to integrate micro businesses into value chains through SEED grant recipients who
have better accessibility to micro businesses.
Supporting and upgrading existing market information platforms such as Bashaier and DARPE
could be more effective than creating a new one from scratch.
Finding the right champion remains a key success factor for SEED. An important factor during
the course of the search is to ensure that potential partner organizations, not only have the
desire and determination, but also the capacity to absorb the training and/or technical
assistance provided by SEED. This applies to all organizations we plan to work with such as
the ITC (in developing a similar program to the NSDP), KEF, ENCC, etc.
IV. IMPLEMENTATION OF GRANTS COMPONENT
4.1 DESCRIPTION OF GRANTS
The USAID-funded SEED project includes a US$1M grants program entitled the Entrepreneurship
and Innovation Fund or “EIF.”
The role of the grants program is to assist business associations, private companies, and non-
governmental organizations to systematically, strategically, and effectively advance the objectives
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
34
of increasing their services, accessibility, and responsiveness to MSMEs such that they can better
capitalize on market opportunities and promote entrepreneurship among youth and women.
The EIF will support grants that will be used for a variety of investments including the provision of
equipment and commodities through in-kind grants to local community development
organizations; grants to establish women and youth business association networks; and grants to
businesses or industry associations for activities that clearly support SEED objectives. Funding
from SEED can also be used to assist service providers meet international quality standards and
promote collaboration on product marketing and promotion. In all cases, SEED will attempt to
maximize the impact of the EIF to as large an audience as possible.
EIF Objectives
Promote innovated ideas to expand organizational capacity of institutions to provide financial
and non-financial services to MSMEs;
Support precedent-setting, sustainable, commercially viable business linkages within high
potential value chains;
Improve the ability of business associations and other groups to conduct evidence-based
policy analysis, research, and advocate for reform;
Maximize opportunities to engage youth and women’s entrepreneurship associations and
expand access to services in disadvantaged communities; and
Foster the inclusion of women and youth entrepreneurs throughout the SEED project.
4.2 KEY ACTIVITIES ACCOMPLISHED UNDER THE GRANTS COMPONENT
Following USAID’s approval of the EIF Grants Manual and its Annexes on June 2nd, 2016, SEED
shared with USAID a draft RFA and Annexes and obtained USAID’s approval on July 8th, 2016.
EIF issued its first Request for Application (RFA) on July 22nd through multiple
platforms/websites and shared the RFA with all SEED partners to ensure wide dissemination
to potential applicants.
The RFA’s covered the following topics which are key to SEED’s objectives:
a. Organizational development for institutions that provide services to entrepreneurs and
MSMEs such as Federations, Businessmen and Businesswomen’s Associations, Women and
Youth Associations, Financial Institutions, Business Development Services providers (BDS),
Industry Chambers, etc.
b. Research, surveys and studies that provide accurate data and information with significant
insights on the status of MSMEs at the governorate and national levels, to assist planners
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
35
and policy makers in designing policies and programs to support entrepreneurship and
MSMEs.
c. Increasing the capacity of high schools and public and private universities to promote
greater interest, awareness, and understanding of entrepreneurship among women and
youth.
d. Providing overall management, product/service development, and/or market outreach
capacity building services for various intermediary organizations providing services to
entrepreneurs and MSMEs such as innovative incubators and best practice.
e. Capacity building in evidence based policy analysis and/or in developing actionable
recommendations for policy reforms related to improving the enabling environment for
entrepreneurship and enterprise development, with an emphasis on women and youth in
disadvantaged areas.
f. Creating commercially viable business linkages between MSME suppliers across a variety
of industrial sectors and larger scale buyers.
The RFA’s Annexes are comprehensive and consist of instructions and templates for a detailed
concept paper; activity timeline plan; budget; and for the full proposal.
The RFA documents and all its annexes were translated into Arabic to be accessible to all
potential applicants, and to facilitate the process of application.
A special email address was dedicated for requests from applicants interested in receiving a
copy the RFA documents (grants@seedegypt.org). SEED has received 148 requests, to date.
All the necessary arrangements were made to hold a Bidders’ Conference planned for August
2nd, 2016. This forum is planned to provide an orientation on the grants cycle, topics,
development of concept papers and submission procedures.
4.3 Key Activities Planned for the Next Reporting Period
Hold the Bidders’ Conference on August 2nd for potential applicants to better understand the
grants themes, cycle and procedures.
Maintain a list of institutions which requested to obtain the RFA documents and will attend
the Bidders’ Conference, to build a SEED database and ensure good outreach to potential
partners for eventual future RFAs.
Receive and register all the concept papers submitted by applicants that meet the RFA
deadline for submission of August 14th, 2016.
Conduct screening of concept papers to determine eligible concept papers which meet the
RFA requirements, include all attachments and address the topics which relate to the grants’
themes.
Form the Internal Review Committee (IRC) to conduct concept paper review and evaluation
according to the selection criteria included in the Grants Manual. The IRC will include relevant
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
36
representatives from the SEED Technical Team including M&E, Gender, Communication,
Finance, and Grants.
Prepare a short list of the highest scoring concept papers and present them to the Grants
Evaluation Committee (GEC) for review and approval. The GEC will include the USAID COR,
SEED COP, and SEED Grants Manager.
Notify those potential grantees whose concept papers are approved by the GEC for them to
start developing their full proposal in accordance with the Grants Manual, and send regrets to
applicants who were not selected.
Conduct capacity assessments (technical and financial) of all the applicants whose concept
papers were accepted to determine their capability of managing the grant funds and proposed
activities. Organizations that do not pass the assessment will be notified of the results and
those which passed pass the assessment will continue with the preparation and submission of
their full proposals.
The GEC will review, evaluate and approve the best proposals and will begin to draft Grant
Agreements for those selected.
V. CROSS CUTTING ACTIVITIES IMPLEMENTED
5.1 GENDER AND YOUTH
5.1.1 KEY ACTIVITIES ACCOMPLISHED
Gender and Youth Specific Activities:
During the past quarter, the SEED team provided technical and financial support to the Business
Women of Egypt 21 (BWE21) organization to conduct an E-Commerce, digital marketing
workshop for women MSMEs business owners. The workshop aimed to develop an elaborative
market understanding of what business development services on Digital Marketing and E-
commerce offers.
SEED’s COP, Dr. Adam Saffer, also made a presentation about SEED’s approach for supporting
women- owned and/or managed businesses in Egypt. This led to an interactive session with the
participants about the types of BDS services most in demand. The purpose was to obtain first-
hand the views of women- owned and/or managed businesses as to the major challenges that
they face, and critical areas of need for financial and/or non-financial assistance.
The key needs expressed by the participants included; improvement of women’s working conditions
in the private sector; elimination of the gender-gap in entrepreneurship; support in branding,
marketing and quality control; improvement in access to legal information/advisory services; greater
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
37
networking opportunities within the ecosystem; financial training and support; training and assistance
in how to work with banks; and help with implementing digital marketing and E-commerce
applications. Participants also expressed the need to obtain advice, tools and information on how to
promote women in management.
During this quarter, the SEED G&Y Manger participated in Leadership training provided by
Swedish Institute in Alexandria for empowering 30 young female leaders, from 10 different
countries, to ‘start breaking the glass ceiling’. The training was for two days focused on business
leadership, the importance of networking, and Inner Leadership Challenges to Entrepreneurship
(running a sustainable business). The workshop offered the opportunity for SEED team to better
understand the business development services required for women leaders. The workshop also
provided clearer understanding of the need for sustainability of business women’s networks, and
on the methods of designing preliminary criteria for selecting and screening for a Leadership
Program. During the interactive group session, participants have gained better understand of
what key building blocks they seek to address in this program, and how each type of support can
assist in the advancement and improvement of their work. Also addressed was how to assess
market readiness and identify potential key partners and players who can collaborate on
delivering the Leadership Program.
Summary findings about the needs of Women Entrepreneurs in light of the challenges stated
by participants:
Utilizing connections; building and maintaining strong networks.
Being decisive; mastering the decision-making process with determination.
Identifying and obtaining access to funding from various sources.
Being inspired by female role models to gain more confidence.
More platforms and training in the areas of leadership, decision-making, and time
management.
SEED conducted three working sessions with BWE21 and with the Alexandria Business Women’s
Association (ABWA) to assess their capacities and understanding of women entrepreneurs’ issues
as well as of the challenges unique to women operating in the MSME sector. Both organizations
developed Concept Notes that address the need to support MSME business women through
establishing BDS centers that will assist business women in developing the management and
operating skills required, as well as facilitate networking skills and opportunities for women
entrepreneurs.
SEED also conducted two working sessions with the National Council of Women (NCW) and with
the Women in Business Development Center (WBDC), with the purpose of supporting WBDC to
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
38
become a national hub. The hub is designed to develop a network of Women Business
Development Centers to serve the needs of women entrepreneurs throughout Egypt and equip
them with the capabilities to enhance their contribution to the national economy. SEED received
a letter of interest signed by the NCW president, Dr. Maya Morsy, along with a Concept Note.
Additionally, an MOU between SEED and the NCW was drafted and is expected to be signed
shortly.
Gender and Youth Mainstreaming Activities:
The Gender and Youth (G&Y) Manager worked with the SEED component teams by providing
guidance to ensure that Gender and Youth are integrated in as many STTA SOWs as is appropriate.
As always, the Project’s goal is to improve understanding of women and youth socioeconomic
issues and best practices. The G&Y Manager also met with all SEED STTAs to sensitize them with
SEED methodology and approach to gender issues and how these can be integrated in their
assignments.
The G&Y Manager held a Gender and Youth training session for the SEED project team to instill a
better understanding of youth and women’s issues, and the need to maximize their economic
empowerment. The G&Y Manager also shared best practices for gender mainstreaming in the
design phase of program activities.
Component A:
The G&Y Manager worked with the SEED Mentorship STTA on mapping and assessing the
gender and youth aspects of mentorship programs in Egypt. Together with the STTA, the G&Y
Manager met with AWTAD to discuss the mentorship model which they use to support female
entrepreneurs. SEED is in the process of evaluating the mentorship model, and is preparing
recommendations for its modification and scaling up. This will be provided to AWTAD once in
final form.
SEED provided the AUC technical team, working on the development of Egypt's 2016 Global
Entrepreneurship Monitor (GEM) Report, with a list of gender-sensitive questions, in order that
the team may incorporate them in their report. The purpose of the questions is to get a better
understanding of gender differences in entrepreneurship in Egypt. The AUC team is going to
use 10 gender-related questions out of the key questions provided to them by SEED.
Questions focus on key characteristics and motivations of women entrepreneurs, societal
attitudes about entrepreneurship, and their influence on women’s entrepreneurship behavior.
The G&Y Manager worked with the International Incubator’s STTA to ensure that the criteria
for selecting incubators includes sensitivity to the needs of female and youth entrepreneurs,
and to provided her with material and case studies of best practices of incubators models for
supporting women and youth. The assessment questionnaire includes specific questions
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
39
addressing gender and youth needs, in order to come up with gender and youth gap analyses.
The G&Y Manager also worked with the STTA on identifying players and activities focused on
women's entrepreneurship, as part of the eco-system mapping that she is conducting.
Component B:
The G&Y Manager drafted an orientation session on mainstream gender in BDS providers. The
session will be delivered in September to key BDS providers, namely Alashanek ya Balady, ABWA
and WBDC.
The team developed an initial plan to support and empower the capacity of gender-focused
BDS providers, across key strategic, specialized, and selected SEED BDS providers and
stakeholders. This includes the NCW, BWE21, ABWA, and Assuit Business Women Association.
SEED studied the model of ITC’s business coaching model for MSMEs women entrepreneurs,
delivered by World Business Fitness, and studying the possibility of replication of the coaching
model with business women organizations to be part of the BDS provided to women.
Partnerships:
SEED, in partnership with UN Women will be supporting the first Startup Weekend Women's
Edition, in Alexandria, with the purpose of encouraging and inspiring more female leaders in
StartUp teams, and to connect more women to the vast number of resources and mentors
available within the StartUp community. The event will be conducted during the last week of
September 2016.
SEED signed MOU with BWE21 and ABWA and agreed to support BWE21 and ABWA with training
and technical assistance in organization development, increasing outreach capacity for young
women entrepreneurs and business women, capacity building and in building and/or expanding
an effective network for women entrepreneurs.
SEED is also planning to collaborate with the Microsoft CSR team in key ideas for interventions
targeting women and youth.
5.1.2 KEY ACTIVITIES PLANNED FOR THE NEXT REPORTING PERIOD
Conduct the first ever StartUp Weekend’s Women’s Edition, which will focus on engaging
women and youth entrepreneurs. The event is scheduled for the last week of September 2016.
In coordination with ABWA, conduct a Business Women Networking conference on November
19th, 2016, in Alexandria.
Conduct the first round of Business Plan Competitions (Business Innovation Hub), targeting
female students or graduates form Computer Science and Technology faculties, to start Cloud
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
40
Business or web- based businesses. The Concept Note for this Competition is currently in the
design phase.
During the Global Entrepreneurship Week of November 14-20, 2016, organize entrepreneurial
awareness and outreach activities for women and youth, in high schools and universities, as
well as youth centers in 4 governorates.
Work with women and youth organizations (e.g. BWE21, ABWA and Etijah), to build their
capacity to identify the best channels to reach their target audiences.
Develop guidelines for OSSs to conduct outreach with Women’s Skills Development Centers
established by the NCW in 2001 and currently existing in 16 of the 27 governorates.
Conduct gender sensitive BDS training sessions to be delivered to providers, to tailor services
that attract larger numbers of women.
Continue to develop comprehensive material for component teams to better mainstream
gender and youth into components activities.
5.1.3 LESSONS LEARNED FOR FUTURE IMPLEMENTATION
While working on gender mainstreaming, it may be best to take the approach of sharing
previous national or international similar models and/or established best practices, e.g. of
gender sensitive incubators, mentorship programs tailored to youth and women, etc.
5.2 COMMUNICATION AND MARKETING
5.2.1 KEY ACTIVITIES ACCOMPLISHED
USAID’s SEED Networking Event:
On May 23, USAID’s Strengthening
Entrepreneurship and Enterprise Development
(SEED) project held a one-day event “A
Networked Approach to Entrepreneurship and
Enterprise Development” at the Marriott Hotel
in Zamalek. The event, which proved
remarkably successful, highlighted the
importance of collaboration and networking
among mezzanine organizations to support
the growth and expansion of entrepreneurship and enterprise development in Egypt. It also served
to formally introduce the SEED Project to the Egyptian entrepreneurship and MSME support
ecosystem.
MTI’s Shereen el Sabagh, USAID/Egypt Agricultural Office Team Lead
Annie Steed, USAID’S SEED COR Ingi Lotfi, SEED’S COP Dr. Adam Saffer
and SEED Component B Team Lead Hamed Ali
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
41
The event format included opening speeches by key stakeholders; three concurrent interactive
panel discussions - each addressing a high-priority issue of relevance to USAID’s SEED Project and
the ecosystem - and a closing session featuring a summary of each panel discussion and a “next
steps” perspective for the entrepreneurship and MSME ecosystem, as well as final addresses by a
dynamic ecosystem champion and the SEED COP. Actual attendance exceeded expectations, with
181 registered participants – 98 males and 83 females.
Visibility Products:
SEED further developed the project’s visibility kit with six roll-up
banners (three in Arabic and three in English). A SEED info-pack
was also produced to include a folder to hold SEED, USAID, and
other factsheets as applicable. The info-pack will be customized by
event (e.g. the May 23rd SEED Networking Event info-pack
included the day’s ‘Agenda’ as well as speakers’ bios). All visibility
materials developed by SEED are prepared in strict conformance
with the USAID-approved Branding Implementation and Marking
Plan (BIM).
USAID’s SEED Project’s Website:
The prospective USAID SEED website template was developed in
mid May 2016, in coordination between SEED’s Communications
and Outreach and ICT Manager. A request for approval of the
website was submitted to USAID/Egypt DOC Office on May 17th,
but was rejected. Following USAID’s initial rejection of the request,
SEED submitted an additional justification indicating the extent to which the sought-after
interactively of the SEED website would provide enrichment to the program. As of this writing, the
USAID Website Governance Board has provided its approval for SEED to move ahead with its own
website, and the Project is in the process of developing website content.
Preparations for the SEED Grant RFA Bidders’ Conference:
THE SAME BASIC DESIGN THAT WAS USED
FOR THE FOLDERS AND NOTEBOOKS WAS
ALSO USED FOR THE ENGLISH AND ARABIC.
LANGUAGE ROLL-UPS.
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
42
SEED’s Grant RFA Bidders Conference is planned to take place on August 2nd 2016 in Cairo. The
conference targets all the profit and non-profit entities who registered and requested the Request
for Applications (RFA) documents to apply for an EIF grant from SEED. The grants advertisements,
in both Arabic and English, were posted on a number of well-known online platforms, among which
are DARPE, Devex and the NGO’s Forum FB page. The entire SEED Team also cooperated to make
sure that the grants advertisements were widely circulated within the ecosystem.
Other Deliverables:
All photography taken during the SEED Networking Event was added to SEED’s Photo
Database.
SEED established an effective tracking system for the documentation of events attended by
SEED team members.
SEED’s Infographic video was approved by USAID’s SEED COR on July 24th, 2016 and is
currently being used in presentations to stakeholders. This Infograph has been very well
received and helps differentiate SEED from other donor projects.
We are currently is discussions about the next SEED event, tentatively scheduled for early
Oct 2016 in Mansoura (Delta region).
5.2.2 KEY ACTIVITIES PLANNED FOR THE NEXT REPORTING PERIOD
Support the SEED Project’s Grant RFA Bidders Conference.
Develop the SEED gender outreach plan in coordination with the SEED Gender and Youth
Manager.
Submit and obtain approval for the SEED Outreach and Communications Plan, which includes
the SEED social media strategy.
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
43
Provide necessary support regarding branding for all SEED component activities.
5.2.3 LESSONS LEARNED FOR FUTURE IMPLEMENTATION
Early planning of events with a generous timeline is a pre-requisite to success.
Hiring a local STTA, knowledgeable of the local market place, to assist with the preparation
and implementation of events.
5.3 INTERNET COMMUNICATION TECHNOLOGY
SEED’s approach emphasizes innovation and sustainability at every step, and its initiatives
endeavor to allow Egyptians to fully develop, execute, and monetize novel products and business
models – especially through new ICT/mobile applications. Under Component B (Financial and
Non-Financial Services), SEED’s approach is to use mobile ICT tools to increase access to BDS for
women and youth, in an effort to overcome cultural and spatial constraints to services and to work
through existing provider networks. This will additionally expand access to OSS centers and other
services in disadvantaged communities. The SEED ICT Integration Team will have a significant role
in the design and development of the ICT architecture for these necessary communications tools
(SMS, WhatsApp, etc.).
The project also works with partner organizations to develop and publish a BDS directory by
means of improving data collection, procuring ICT services to develop and manage the portal,
and training staff responsible for uploading and managing data. The ICT Team will help develop
a mobile version of the database as well, and will provide technical support in marketing the portal
among BDS providers, associations, and women’s and youth networks.
Under Component C (Integration of MSMEs into Value Chains), ICT expertise will also be vital in the
improvement of MSMEs’ access to market information. One of SEED’s objectives is the strengthening
or establishment of market information systems (MIS) working through and improving existing
infrastructure, whenever possible. This too will necessitate substantial ICT support in the development
of MIS by facilitating data collection, assistance in the procurement of ICT services, and training staff
on managing data. Such support will help MSMEs take advantage of value chain opportunities and
will play an essential role in connecting large-scale buyers with credible MSME suppliers. In each case,
the ICT Team will endeavor to develop a complementary mobile SMS system that is simple and easy
to maintain after SEED ends.
Internally, the main focus of the ICT Team was to continue settling in and setting up the SEED
office. This included installing Wi-Fi communication devices to the new renovated SEED office
expansion and procuring the SEED office main heavy-duty multifunction printer/copier. The ICT
Team also procured, installed, and configured an automated access control system for the SEED
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
44
office. Other work included the creation of the SEED Pilot YouTube Channel, hiring a new ICT
Network administrator, and enhancing the SEED internet connection.
Externally, the ICT Team drafted a SOW for a STTA Web Developer to provide support to the ENCC
to improve their online portal functionality and introducing new capabilities to the Portal. This
intervention is still pending USAID approval.
5.3.1 KEY ACTIVITIES ACCOMPLISHED
Installed and configured Wi-Fi communication devices to cover the SEED office expansion.
Created a Pilot YouTube Channel for SEED.
Procurement, installation and configuration of the SEED Office main Heavy-Duty Printer/Copier.
Procurement, installation and configuration of the SEED Access Control Security System.
Initiated the procurement process of the SEED office leased line internet connection.
Enhanced the SEED office internet connection by configuring the main connection and the
backup connection to work simultaneously.
Provided ongoing ICT technical support for the SEED staff.
Maintained and enhanced the SEED office ICT infrastructure.
Continued working closely with the SEED component and cross cutting teams in discussing how
best to incorporate ICT solutions into their efforts
5.3.2 KEY ACTIVITIES PLANNED FOR THE NEXT REPORTING PERIOD
Complete the installation and configuration of the SEED office leased line internet connection.
Procurement of the SEED office main server and all requisite accessories.
Procurement of the SEED office network communication devices.
Procurement, installation and configuration of the SEED office network cabling, switches, ICT
Rack cabinet, and patch panels.
Procurement, installation and configuration of the SEED office Firewall security device.
Procurement of the Uninterruptible Power Supply (UPS) for the SEED Server and
communication devices.
Procurement of four new laptops, replacing the four that were stolen.
Lead the ICT technical implementation of Souktel activities.
Potential ICT support for ERRADA to establish a MSME unit.
Potential ICT support for ENCC to enhance their existing website.
Potential ITC support to FEDCOC to connect and allow information sharing between Tamayouz
Centers.
Obtain approval from USAID and launch the SEED Website.
Obtain approval from USAID and launch the SEED YouTube Channel.
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
45
Assist the HO in installing and configuring the OneSource platform for both SEED and USAID
users.
5.3.3 LESSON LEARNED FOR FUTURE IMPLEMENTATION
Due to an incident of theft of project property, a restricted security system has to be implemented
to better secure staff, information, and assets. The ICT team worked in implementing, installing
and configuring an automated Access Control System that better controls the access to the SEED
office.
VI. MANAGEMENT AND ADMINISTRATIVE ISSUES
6.1 PERSONNEL
During this quarter, SEED hired three additional staff members. On June 1st, Ahmed Hussein
joined the project in the capacity of Team Lead for Component C. Having worked with, among
other notable entities in Egypt, the General Authority for Investment and Free Zones (GAFI), the
Egyptian Financial Supervisory Authority (EFSA), and the former USAID-funded Egypt’s
Competitiveness Program (ECP), Ahmed comes with twenty-five years of wide-ranging experience
in the fields of MSMEs development, financing, and value-chain development, in addition to his
hand-on experience in corporate finance and investment training. Component C Enabling
Environment Senior Advisor position was filled on July 3rd by Amira Shoukry. In addition to her
prior experience on USAID-funded projects, Amira comes with 15 years of solid experience in
technical assistance, development of frameworks, grant-making and hands-on experience in
securing a number of partnerships with Egyptian private and public sector stakeholders. Following
the screening of 26 CVs received in response to vacancy announcement postings, shortlisting and
interviewing of 6 potential candidates, on July 24th, SEED hired Mostafa Abdel Fattah, in the
capacity of ICT Network Administrator. This was a replacement recruitment for Kareem Ezz-El-
Din, who left SEED in mid-May for a substantially higher-paid job opportunity with the UN.
Additionally, first-class candidates for the LTTA positions of Marketing Manager, ICT Platform
Project Manager, and Incubator Advisor were identified and SEED expects to bring all on board
by the end of August.
SEED also utilized a significant number of national and international STTAs during this reporting
period. The Mentorship Consultant position was filled on July 10th by May Badawy. Her assignment
includes conducting an assessment of existing mentorship programs in Egypt, and assisting SEED
in the development of tools and approaches to improve the capacity, quality, and coverage of
mentorship programs for entrepreneurs and startups, with an emphasis on accessibility and efficacy
for women and youth.
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
46
June Lavelle, an international expert on business incubation started her assignment with SEED on
July 17th. The main objective of her task is to support the project in the development of efficient,
effective, and sustainable interventions to improve the quality, capacity, outreach, and accessibility
of incubator services across Egypt, with an emphasis on women and youth. June’s rich experience
in the field of business incubation in more than a dozen developing country settings, including
Egypt, as well as prior work with disadvantaged women and youth, is an extremely valuable asset
for SEED. She will also be developing training programs and conducting training session in Cairo
and Upper Egypt in August.
Requests for USAID approval are currently pending with SEED to on-board consultants for additional
STTA assignments including a Local Incubator expert to work with June Lavelle and another for a
mapping and set of recommendations exercise focused on university Entrepreneurship programs.
Additional STTA positions currently at the stages of public posting of SOWs, screening and
shortlisting of CVs, interviews, selection and reference checking are for One Stop Shops (OSSs), BDS
access and availability, Government procurement and Value Chain Database Development. SEED is
also presently working on developing STTA SOWs for fulfilling the following requirements: Building
the ECPPS capacity to develop the SMEs Governorate Index; Updating SFD’s Microfinance
Department Business Plan; Assessing the needs of selected NGO/MFIs partners of the Social Fund
for Development (SFD) and developing a capacity building plan “4 NGOs/MFIs”; Assessing the old
version of the Microfinance Map and recommending the outline of the new one; Conducting an
organizational needs assessment and the development of a capacity building plan for FSI;
Developing 3 curricula for Financial Literacy; Developing a Financial Literacy campaign and leading
the implementation process; Developing and implementing a BDS program for Alashanek Ya Balady
Association; Market Research and baseline data for BDS providers “Demand and Supply Study”;
Assessing the needs of Egypt Business Women Associations, ABWA and NCW and develop capacity
building plan; Developing ENCC’s strategy and improving their website; Training ERRADA IT team
on system development; and developing the FEI’s CSR Unit Strategic Planner; and MSME Linkages.
AECOM provided SEED with STTA support by sending John Willsea in June 2016, to work with
SEED on developing visual charts of designed OneSource workflows in conformance with the SEED
manuals. See more below.
Given the importance that AECOM gives for the operation of OneSource, their proprietary web-
based platform, Head Office also provided SEED with additional support by sending Drako Reyes
to the Field Office, in June 2016, to offer technical assistance for the necessary set-up and training
of staff on OneSource. See more below.
In July 2016, AECOM Environmental Scientist, Pavel Terselich, started his approximately one month
STTA assignment at SEED, with the objective to enable the prioritization of environmentally
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
47
sustainable value chain activities through environmental analysis and activity review. See more
below.
In furtherance to a Request for Proposals (RFP) and subsequent evaluation of proposals and
award, a contract was signed on June 1st with DMS for the medical insurance coverage of SEED
staff members.
6.2 OPERATIONS
In May 2016, SEED successfully finalized opening a file with the Tax Department as well as with
Social Insurance. All necessary documentation was submitted to the Ministry of Finance, through
the Ministry of Trade and Industry, to obtain the tax exemption authorization letter, which has yet
to be received. SEED COP also obtained a work permit visa for 6 months from the Egyptian
Authorities, and is anticipating the receipt of security clearance.
With the growing number of SEED LTTAs and STTAs, the project sought additional office space,
and managed to lease an additional 200 square meters of space next to the current office.
Removal of the wall between the current and new office, and painting of the new space was taken
care of by the landlord. SEED, in the meantime initiated and completed the procurement of the
necessary carpeting, window blinds and additional office furniture, in preparation for moving a
portion of the staff to the new extension on August 1st.
Three project vehicles are being procured in the US by AECOM Head Office. As of the latest
estimate, they are all expected to reach the Port of Alexandria by December 2016. As soon as the
necessary authorizations, customs exemptions and clearances as well as registration requirements
are completed, the vehicles will need to be driven to Cairo. SEED has therefore started the process
of hiring three project drivers.
The SEED Finance Manager, Accountant and Operations Manager attended the USAID FAST
Training from May 22nd - 26th, 2016, and most of the SEED staff attended the USAID Fraud
Awareness Training, on June 9th at the SEED office. Those who were unable to attend the latter
training, caught up by attending the same session which was also delivered by the
USAID/RIG/I/Cairo at the USAID-funded Effective Planning and Services Project (EPSP) office in
Maadi, on June 13th.
6.3 SME CONNECT
During this reporting period, our ICT design subcontractor Souktel, responsible for designing and
developing SEED’s ICT solutions platform submitted a scoping document which outlines the
proposed organizational and functional structure for what we are calling SMEConnect. This name is
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
48
a place holder only. The primary focus of the platform is to connect entrepreneurs and MSMEs with
a variety of data, information, linkages, and services that will aid them in growing their businesses.
As a result of two visits by the Souktel team, it became evident that the depth and breadth, scale and
scope of this initiative needed a full time Cairo-based manager. As such, SEED developed a job
description for a long-term ICT Platform Manager. The field-based ICT Platform Project Manager will
be responsible for liaison between SEED and Souktel as well as between SEED and any subcontractors
and service providers hired to support the design, development, launch, operation, and/or
maintenance of the ICT Platform, core and node managers, and the variety of end users, including
but not limited to entrepreneurs, MSMEs, service providers, and buyers. Following meetings with
numerous ecosystem stakeholders, it appears that several platforms similar to the SEED planned
platform either already exist or are in the development phase. To avoid duplication, inadvertent
competition, and to maximize any leverage, where applicable, SEED issued a Request for Proposals
(RFP) for Market Research on the current state of affairs with respect to ICT platforms and portals in
Egypt. Bids are due on August 28th. More specifically, the focus of the research is to develop a map
and assessment of the online platform market serving entrepreneurs and MSMEs in Egypt. The
second objective of the research is to assess to as great a degree as possible, the demand for such a
portal. The assignment’s final report will include a comprehensive list of findings, conclusions and
recommendations in developing a high impact, demand-driven, and sustainable ICT platform linking
Egyptian entrepreneurs and MSMEs with mezzanine/intermediary financial and non-financial service
providers, as well as with potential buyers and information sources, with an emphasis on women and
youth in disadvantaged areas.
6.4 ONESOURCE
The OneSource System is a web-based project management tool, the function of which is to
facilitate better, faster, and easier coordination between AECOM’s Head Office, the SEED Field
Office, and USAID/Egypt. OneSource has many features but initially will focus on three areas:
procurement, short and long term staff recruitment, and as a repository of project documents. In
the future, we may expand our use of OneSource to include financial matters, inventory and asset
registers, etc.
In June 2016, STTA John Willsea worked with the SEED operational staff (Finance, Operations and
Human Resources) on gathering information on current workflow processes in the Field Office.
John checked these against both USAID and AECOM policies and procedures as well as with our
field-based Procurement and Recruitment Manuals. He then worked with the team to design and
draw up visual charts of designed OneSource workflows in conformance with those manuals, in
preparation for uploading onto the OneSource web-based platform.
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
49
Given the priority that AECOM has for the operation of the web-based platform, Head Office
provided SEED with additional support by sending Reyes Drako, the AECOM OneSource Director
of Operations and Performance Management to the Field Office, to provide further technical
assistance needed for the set-up and training of staff. Drako also established accounts and
conducted training for SEED personnel. He also made a presentation, including a demo of the
system, to USAID on June 22nd. The presentation was attended by Ingi Lotfi, COR and Zeb
Simpson, CO.
6.5 ENVIRONMENTAL COMPLIANCE
An AECOM STTA Environmental Scientist, Pavel Terselich, spent close to a month in the Field
Office, reviewing the EMMP as well as project activities to identify potential environmental risks
and develop proposed mitigation measures. He also delivered guidelines and training to SEED
project staff and several stakeholders, to facilitate compliance with local and USAID environmental
regulations. His goal, which he accomplished, was to build the capacity of SEED staff to monitor
and report on EMMP implementation throughout the life of the project, with a specific focus on
Component C’s work in yet to be identified sub-sector value chains. Pavel worked closely with
relevant stakeholders in order to develop a training plan to help stakeholders engaged in value
chain and other project activities to meet both USAID and local environmental requirements.
Additionally, he developed guidelines on environmental best practices for selected project
activities, such as proper waste disposal methods for specific value chains. He concluded his
assignment by giving a presentation at USAID on July 23th, which was attended by Ingi Lotfi, COR;
Soad Saada, Development Program Specialist, Gender Advisor, and Mission Environmental Officer;
Jacinto Fabiosa, Team Leader of Trade and Investment Team; and Brinton Bohling, Economic
Growth Office Director.
6.6 SAFETY AND SECURITY
The dynamic environment within Egypt presents events and situations that require innovations
and contingency actions. As such, SEED staff, supported by AECOM’s Regional Security Manager
and SEED’s Arlington, Virginia-based Program Management Unit (PMU), conducted a review and
update of the SEED Security Plan and annexes, to ensure applicability to the current Egyptian
context. This will be reviewed periodically and updated to fit the evolving Egyptian context.
AECOM Home Office, in coordination with the Field Office, have recently finalized the Operation
Security Plan (OSP) which goes provides detailed instructions of actions to be completed during
various security situations (e.g. in case of fire, meeting points, phone trees, etc.). The OSP compiles
and harmonizes the various elements currently contained in two separate documents: the Security
Plan and the Emergency Preparedness Plan (EPP). Following the document’s completion and
review by the AECOM Regional Security Manager, the OSP was distributed to all SEED staff and
Field Office Consultants.
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
50
Unfortunately, during this reporting period, the SEED Office had a theft. At around 5:00pm on the
evening of Thursday, July 14th, a to-date unidentified person, unknown to staff, entered the SEED
office and walked out with 4 laptop computers and 1 laptop bag. His entrance and exit was
captured by SEED’s security camera. His entrance and exit from the building was also captured on
several of the landlord’s security cameras positioned by the front door and in the lobby. SEED, in
addition to filing a police report, has taken vigilant risk mitigation measures, including planning
to have a full time receptionist placed by the door, drafting a policy about locking up laptops, and
procuring and installing a magnetic lock and security access control system for the office entrance
door. The SEED COP and DCOP held a meeting with the landlord, who also owns the building, and
asked him to augment the building security. The landlord immediately complied by adding an
extra security guard to the building reception area, began requiring all visitors to register before
entering the elevators, and installing two additional cameras to the building entrance. SEED feels
that it has adequately responded to the threat, and set up systems to prevent similar incidents
from occurring again.
VII. MONITORING AND EVALUATION
7.1 DEVELOPMENT AND SUBMISSION OF THE SEED M&E PLAN
Following the resubmission of the M&E plan on May 5, which incorporated replies to USAID’s
comments as well as justification and a rational for the set targets as requested, USAID approved
the plan on July 11, 2016.
Following the approval of the M&E plan, the M&E Senior Advisor conducted a training session for
SEED staff to introduce them to the main pillars of the SEED M&E plan. This included a presentation
and discussion about project deliverables, indicators, results, tasks, and activities. The M&E Senior
Advisor also briefed the staff on how SEED is planning to monitor the organizations receiving SEED
support (e.g. training, technical assistance, grants) in order to track their performance and
improvements in capacity, quality, outreach, etc.
Below, see Table 1 which highlights the current status of all of the Start-Up deliverables as per the
contract. To date, only the EMMP’s final approval remains outstanding, given that an updated
Initial Environmental Examination (IEE) was issued during this quarter, with new guidance which
affected the Project’s EMMP. The updated EMMP was resubmitted to USAID on August 19.
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
51
Table 1: Startup Deliverables and Reports Submitted to USAID
Deliverables Status
1 First Year Work Plan Submitted and approved
2 Monitoring and Evaluation Plan Submitted and approved
3 Bi-Weekly updates On-going
4 Gender Assessment Submitted and approved
5 Training plan Submitted and approved
6 Security Plan Submitted and approved
7 Staffing Plan Submitted and approved
8 Grants Manual Submitted and approved
9 Sustainability Plan Submitted and approved
10 Environmental Mitigation and Monitoring
Plan Submitted and waiting for approval
11 Branding and marking Plan Submitted and approved
Table 2, presents the status of SEED’s Year 1 deliverables. In the third quarter SEED was not able to
conclude as many of the deliverables as planned. There are many reasons for this including, but not
limited to, Ramadan, Eid el-Fitr, summer vacations for staff as well as counterparts, and a very slow
response from public and private organizations to implement activities. SEED was able to sign nine
MOUs with governmental and private institutions with envisioned cooperation activities to
commence during the fourth quarter of the year. Also, SEED was able to finalize selection, approval
and contracting processes with a number of international and local consultants who have either
completed their work, are currently working on their assignments, or are about to begin.
Furthermore, there are some deliverables that are projected not to be completed as planned
before the end of the year. These include mobile applications, the online BDS directory and the
entrepreneur’s network. All of these are directly related to the ICT platform, currently called “SME
Connect”, which is delayed due to our determination that a full market study of current practices
and similarly planned interventions is necessary before hard coding and programming begins.
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
52
Table (2): Achievement of Deliverables
Performance
Standard
Delivery
Measurement
Achieved Quarter
4
Planned
Year I
Deliverables3
Comments Q1
and
Q2
Q3 Annual
Plan Forecast
Result A1: Stimulated entrepreneurship among women and youth
Women and
youth
entrepreneurship
networks
established and
strengthened to
coordinate the
efforts of existing
women and youth
organizations in
Egypt
Workshops
Networks
2
0
1
0
2
1
5
1
4
0
Many of our
workshops have dual
purposes but they
only count for one
deliverable.
The Network is part of
the ICT platform
described above.
New
entrepreneurship
and financial
literacy program
delivered in high
schools across
Egypt
High Schools
0
0
5
5
0
Given that SEED does
not deal directly with
schools, two channels
were identified to
conduct this
intervention: Injaz and
STEM schools. The
STEM schools initiative
will not be
implemented until the
second semester of
the coming school
year, according to the
STEM unit at the MOE.
Meanwhile, Injaz
needs to obtain MOSS
approval to work with
SEED, which has
delayed our planned
interventions.
3 The “Annual Plan” refers to the deliverables originally envisioned in the workplan. The “Forecast” presents SEED’s best current
expectation for what will be achieved by the end of Project Year 1.
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
53
Performance
Standard
Delivery
Measurement
Achieved Quarter
4
Planned
Year I
Deliverables3
Comments Q1
and
Q2
Q3 Annual
Plan Forecast
University
entrepreneurship
program
designed and
implemented
Certificate
program
piloted
Universities
certificate
developed
0
0
0
0
1
2
1
2
0
0
This activity was
delayed due to the
difficulty of identifying
a consultant with the
required skills, and
due to the lengthy
hiring/ contracting
process. We expect
program design to
commence in mid-
September and to be
finalized by the end of
the year.
Outreach
campaign to raise
awareness of
available services
and programs for
female and youth
entrepreneurs
Business plans 1 0 2 3 3
SEED is organizing two
business plan
competitions outside
Cairo to take place in
Q4.
Startup
weekends 1 0
1 2 2
The next startup
weekend will be
implemented in Upper
Egypt on September
21.
Career Fairs 0 0
0
1 0
A meeting is
scheduled with WISE
on August 25 to
discuss collaboration
on a WISE-SEED career
fair. This also needs to
be discussed with the
COR as this does not
quite fit the SEED
SOW.
Result A2: Improved availability and accessibility of entrepreneurship services, with focus on business
incubators and accelerators
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
54
Performance
Standard
Delivery
Measurement
Achieved Quarter
4
Planned
Year I
Deliverables3
Comments Q1
and
Q2
Q3 Annual
Plan Forecast
Incubators
strengthened and
managed
according to
international best
practices
Workshops
Pilot
incubators
designed
Training
modules
designed
0
0
0
0
0
0
2
3
1
2
3
1
2
3
1
SEED hired 2 STTA
consultants who
started work in July.
Workshops, training
modules, and pilot
incubator selection is
all underway with
events planned in
August and
September. SEED
expects to complete
all Year 1 deliverables
before the end of the
year.
Support
incubators and
accelerators with
technology
commercialization
Capacity
building
workshops
delivered to
TTOs
0
0
2
2
2
SEED held meetings
with TTO
organizations and we
are currently
developing a SOW to
assist them. SEED
anticipates this work
to commence in Q4.
Build the capacity
of MTISME to
fulfill its
expanded
mandate
Workshops
0
0
2
2
2
Several staff members
from the MTI, SFD,
and GAFI are
confirmed to attend
the SEED incubator
workshops in August.
Work is also underway
with the new Head of
the Donor
Coordination Unit at
the MTI (Sherine El
Sabagh). STTA for
ERRADA is also
planned to commence
in August.
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
55
Performance
Standard
Delivery
Measurement
Achieved Quarter
4
Planned
Year I
Deliverables3
Comments Q1
and
Q2
Q3 Annual
Plan Forecast
Result B1: Improved availability and accessibility of effective and efficient BDS
Increase and
replicate
Tamayouz
centers/OSS
through twining
Tamayouz
Centers/OSS 0 0
4
4 4
After months of
attempts, SEED
expects to sign an
MOU with FEDCOC in
August. This will pave
the way to commence
supporting and/or
replicating Tamayouz
Centers.
Assist BDS in
improving their
services
Training
Delivered to
BDS providers
Online BDS
directory
0
0
1
0
1
1
2
1
2
0
The second BDS
workshop will be
delivered on Sept. 21-
23 in Minya
governorate.
All the required data
for the BDS directory
will be collected by
end of the year but
will not be available
online until the launch
of the SEED ICT
platform.
New tools
introduced for
expanded BDS
services to
disadvantages
areas
Mobile
technology
tools
0
0
1
1
0
As per the above, this
is directly tied to the
development of the
ICT Platform,
“SMEConnect”.
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
56
Performance
Standard
Delivery
Measurement
Achieved Quarter
4
Planned
Year I
Deliverables3
Comments Q1
and
Q2
Q3 Annual
Plan Forecast
Increase capacity
among BDS
providers and
associations to
advocate for
policy change
Evidence-
based policy
module
designed
0
0
1
1
2
SEED has drafted the
SOW and identified
high caliber
consultants to
commence this work in
Q4. We expect to
complete 2-3 training
modules by the end of
other year.
Result B2: Improved availability and accessibility of financial products and services
Broker
relationships
between MSMEs
and
crowdfunding
organizations,
angel investment,
and venture
capital
Investment
linkage forums 0 0
2 2 2
Two linkages forums
are scheduled for Sep
28 and Oct 11-12.
Increase financial
literacy including
capacity building
to use financial
products among
MSMEs
ToT sessions
delivered
Financial
literacy
modules
0
0
1
0
0
2
0
2
1
2
SEED conducted one
financial literacy ToT
course and is in the
process of hiring a
consultant to develop
additional modules
targeted to specific
stakeholder audiences.
This work will begin in
September.
Build capacity of
Egyptian
regulators to
respond to policy
constraints
EFSA
workshops
delivered
0 0
1 1 0
The first workshop will
be conducted by the
end of October.
Result C1: MSMEs integrated to larger value chain
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
57
Performance
Standard
Delivery
Measurement
Achieved Quarter
4
Planned
Year I
Deliverables3
Comments Q1
and
Q2
Q3 Annual
Plan Forecast
Selection of value
chains for MSME
integration
Analysis of at
least 3 value
chains
conducted
0 0
1 1 1
The final report will be
delivered and
submitted by the end
of August.
Market
information
system(s)
strengthened to
improve MSME
access to
information in
selected value
chains
Information
technology
system
developed or
strengthened
0 0
1
1 0
As above, this
deliverable is tied to
the development of
the ICT Platform which
is underway. We
expect to launch
“SMEConnect” in Q2 of
Year 2.
Improved MSME
understanding of
market and
opportunities for
MSMEs in value
chains
MSME buyer
conferences
delivered
sector/industry
member
directory
0
0
0
0
1
1
1
1
0
1
A Buyers Conference
in collaboration with
KEF is planned for
August and is pending
approval from USAID’s
Agriculture Office.
Sector/Industry
membership
directories will be
developed in Q4 upon
final selection of sub-
sector value chains.
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
58
Performance
Standard
Delivery
Measurement
Achieved Quarter
4
Planned
Year I
Deliverables3
Comments Q1
and
Q2
Q3 Annual
Plan Forecast
Strengthen
sector/industry
associations on
backward and
forward linkages
Training
sessions
delivered
0 0 2 2 2
Once the value chains
are selected, work will
begin in building the
capacity of their
representative
associations. In
addition, SEED is
planning to deliver
training to ITC staff
working in the
“National Productivity
Enhancement
Program” (NPEP) in
October.
Increased GOE
and industry
capacity to
respond to policy
constraints
Modules
developed 0 0 1 1 2
SEED drafted SOWs
and identified
qualified consultants
to start developing
and implementing
training manuals by
the end of the year.
7.2 INDICATORS
To maintain the flow of data that feeds SEED indicators, SEED continues to collect data on
training/events attendees and attendees’ details including age, gender and occupation, as
required, for reporting on SEED indicators. Other indicators are broken out by geographic location
or economic subsector, as appropriate. Table 3 provides updates of SEED performance indicators
accomplished in the third quarter of year one.
Table (3): Accomplishment of the Relevant Indicators in the two Quarters
No. Indicators Q1and 2 Q3 Year 1 Total Target
Planned Achieved Planned Achieved Planned Achieved
R1: ENTREPRENEURSHIP SKILLS AND OPPORTUNITIES EXPANDED
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
59
No. Indicators Q1and 2 Q3 Year 1 Total Target
Planned Achieved Planned Achieved Planned Achieved
1.1
Number of USG supported
entrepreneurs who launch
and grew their business
models
0 0 0 0 400 0
1.2
Number of start-up
enterprises supported that
are able to introduce new
products to market
0 0 0 0 10 0
1.3
Number of
entrepreneurship events
provided by USG
assistance
3 2 2 1 6 3
1.4
Number of entrepreneurs
attending events and
programs provided
through USG assistance
500 466 300 181 1000 647
IR1.1: Stimulated Entrepreneurship among Women and Youth
1.1.1
Number of people
accessing mentorship
programs
150 110 150 0 500 110
1.1.2
Proportion of female
participants in USG
assisted programs
designed to increase
access to productive
economic resources
35% 33% 35% 34% 35% 33%
IR1.2: Improved Availability and Accessibility of Entrepreneurship Services
1.2.1
Number of incubators
established as a result of
USG assistance
0 0 0 0 2 0
1.2.2
Number of entrepreneurs
who benefitted from
incubators established or
assisted through USG
activities
0 0 0 0 50 0
R2: FINANCIAL AND NON-FINANCIAL SERVICES EXPANDED
2.1
Number of private sector
firms that have improved
management practices as
a result of USG assistance
0 0 0 6 0 6
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
60
No. Indicators Q1and 2 Q3 Year 1 Total Target
Planned Achieved Planned Achieved Planned Achieved
IR2.1: Improved availability and accessibility of effective and efficient Business Development Services
(BDS)
IR2.2 Improved availability and accessibility of financial products and services
2.2.1
Total number of clients
benefiting from financial
services provided through
USG-assisted financial
intermediaries, including
non-financial institutions
or actors.
200 0 200 0 400 0
2.2.3
Number of days of USG
funded technical
assistance in financial
sector capacity provided
to counterparts or
stakeholders
0 0 20 20 50 20
2.2.4
Number of MSMEs
managers and
entrepreneurs benefitting
from the financial literacy
programs
0 0 0 0 40 0
R3: INTEGRATED MSMEs TO PROGRESSIVE VALUE CHAINS
IR3.1: Integrated MSMEs to Progressive Value Chain
Number of USG supported
enterprises integrated with
larger supply chains
0 0 0 0 20 0
3.1.2
Number of days of USG
funded technical
assistance provided to
MSMEs to integrate in
selected value chains
20 24.5 30 49.5 100 74
7.3 DEVELOPMENT OF MONITORING AND EVALUATION TOOLS
SEED continued to administer the evaluation form to assess the participants’ satisfaction and
obtain their feedback on the organizational and functional structure of the event,
trainers/speakers, content, etc. The results of the participant satisfaction surveys are presented in
Figures 1, 2, 3 and 4.
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
61
4.2 4.2 4.2 4.1
0
1
2
3
4
5
Figure (1): Evaluation Results of
"A Networked Approach to
Entrepreneurship and Enterprise
Development" May 23, 2016
Rating of Satisfaction
4.3
4.6
4.3
4.5
4.1
4.2
4.3
4.4
4.5
4.6
4.7
Objectives
and Content
Instructors Logistics
and Material
Overall
Figure (4): Product Development for
SME Banking Egyptian Banking
Institute June 2- 5, 2016
4.6
4.4
4.5 4.5
4
4.1
4.2
4.3
4.4
4.5
4.6
4.7
Objectives and
Content
Instructors Logistics and
Materials
Overall
Figure (3): Financial Literacy
ToT Training Egyptian
Banking Institute June 4-5, 2016
SEED will collect quarterly performance from all organizations receiving SEED assistance. During
the next quarter, the first round of quarterly data collection will be conducted.
4.54.7 4.6
4.4
1
2
3
4
5
Objectivesand
Relevance
Trainer andContent
Organizationand Facilities
OverallSatisfaction
Figure (2): Social Performance
Management Workshop
May 19-21, 2016
Participants' Rating
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
62
7.4 DEVELOPMENT OF THE SEED ICT PLATFORM
During the past quarter, SEED issued a questionnaire on Internet and Mobile Technology Usage
and as a result, collected and analyzed data from six governorates (three in Upper Egypt and three
in the Delta). The survey was completed by 307 MSMEs who are clients of the following four
financial organizations:
1. Alexandria Businessmen Association (ABA)
2. Dakahlia Businessmen Association (DBA)
3. Coptic Evangelical Organization for Social Services (CEOSS)
4. Assuit Businessmen Association (ASBA)
Gender was almost equally represented in Lower Egypt (91 males and 92 female), while only 31
females completed the questionnaire in Upper Egypt against 93 males.4 Approximately 50% of
those completing the survey were youth under 30 years old. Below are some of the results that
indicated their access to and usage of the internet to obtain information, which in turn would
assist them in better managing or improving their businesses.
4 The difference in responses between males and females in Upper and Lower Egypt represents the substantial differences in female
participation in the economy in those regions.
66% 66%
59%62%
36%
50%
0%
10%
20%
30%
40%
50%
60%
70%
15-20 21-25 26-30 31-50 51-70 Total
Figure (6): Percentage of those ever
used internet to find information for
business
70%
82%
70%
57%
35%
64%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
15-20 21-25 26-30 31-50 51-70 Total
Figure (5): Percentage of
those have internet service
on their mobiles
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
63
7.5 BASELINE SURVEY
Based on the approved M&E Plan, SEED started to collect baseline data. Baseline data collection
is customized in accordance with the type of indicators. An assessment tool was developed to
assess organizations that have potential to develop BDS centers, while an incubator assessment
tool was developed in collaboration with the SEED Incubator International Consultant, to measure
those organizations’ KPIs.
The M&E Senior Advisor also developed and implemented a tool to measure pre- and post-
training session knowledge to assess the impact and efficacy of the training course and delivery.
7.6 M&E ACTIVITIES NEXT QUARTER
During the next quarter, the M&E Team will conduct an assessment of entrepreneurship
incubators in order to determine which have the commitment and capacity to be SEED
recipients. The Team will conduct a baseline assessment for indicators related to BDS providers,
based on the BDS mapping and capacity exercise that will commence in August. Finally, the
M&E Department will begin collecting data on KPIs for organizations receiving SEED assistance.
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
64
USAID’S SEED PROJECT’S WORKSHOP ON “SOCIAL PERFORMANCE MANAGEMENT” IN COOPERATION WITH CEOSS, MAY 18TH - 20TH 2016
DR. ADAM SAFFER, COP OF USAID'S SEED PROJECT DELIVERING A
SPEECH, EBNI INCUBATOR, MAY 18TH 2016.
USAID’S SEED PARTICIPATES IN E.COMMERCE WORKSHOP FOR BUSINESS WOMEN LEADERS, MAY 2016
USAID’S SEED PARTICIPATES IN BREAKING THE GLASS CEILING
WORKSHOP FOR BUSINESS WOMEN LEADERS, ALEXANDRIA, MAY 2016.
ANNEX I: SEED IN ACTION MAY-JULY 2016
May 2016
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
65
USAID’S SEED PROJECT’S TRAINING ON FINANCIAL LITERACY, IN COOPERATION WITH EGYPTIAN BANK INSTITUTE EBI; JUNE 2016.
USAID’S SEED PROJECT’S TRAINING ON “PRODUCT DEVELOPMENT FOR SME BANKING”. JUNE 2ND- 5TH 2016
USAID’S SEED WORKSHOP ON “EFFECTIVE COLLECTION TECHNIQUES” IN COOPERATION WITH TAMWEEL HOLDING CO. JUNE 20TH 2016
June 2016
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
66
USAID’S SEED SIGNS MOU WITH FEI, JULY 2016
July 2016
USAID’S SEED PROJECT SIGNS AN MOU WITH HELIOPOLIS
UNIVERSITY, JULY 30TH 2016
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
67
ANNEX II: LIST OF MEMORANDA OF UNDERSTANDING
(MOU) SIGNED
Alexandria Business Women’s Association (ABWA)
Business Women of Egypt (BWE21)
Coptic Evangelical Organization for Social Services (CEOSS)
ENPACT
EYOUTH
Federation of Egyptian Industries (FEI)
Financial Services Institute (FSI)
Heliopolis University (HU)
Markade (Technisummit)
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
68
ANNEX III: SUMMARY REPORTS OF SEED EVENTS MAY-JULY 2016
E COMMERCE WORKSHOP
17 MAY 2016 – ZAMALEK MARRIOTT HOTEL. BWE21
Event Type Workshop
Event
Gender
Focus
Women MSMEs (Entrepreneurs) and Women leaders in business
(55 of BWE21 members)
Attached list of attendees
Event
Content
Major focus:
1) Introducing SEEDS and how it can support Women Entrepreneurs and
Businesswomen MSME’s. -Mr. Adam P. Saffer, PH.D, Chief of Party (SEED).
2) E Commerce, Digital Marketing for Export Growth
Prof. Dr. Hesham Dinana, Organizing Development Consultant
Event
Organizer BWE21.
Event
Financial
Support
BWE21 and SEED
Event
Objectives
- Develop an understanding of
SEED project and how can
support Women MSMEs
(Entrepreneurs)
- Develop an elaborative market
understanding of what business
development services on Digital
Marketing and E-commerce?
What worked for them and
what did not? What can help more?
- Gain a clear understanding of women in business needs
- Presentation attached
Event
Outcomes
for SEED
- Gaining information on types of BDS services required with a women focus
from a demand driven approach, which enrich our experience when talking to
providers
- Building entry relationship with the BWE21, re-enforcing the spirit of
collaboration with BWE21
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
69
- Working with women
participants to conclude major
challenges and areas in need for
empowerment with their
businesses from a BDS
perspective
- Key challenges/needs of MSMEs
women participants:
1. Improving the working conditions of women in the private sector,
eliminate the gender-gap in entrepreneurship.
2. Support in branding and marketing.
3. More access to legal information /advisory services.
4. Networking, Training and Financial support.
5. Support on Branding and Quality Control.
6. Digital Marketing and E-commerce advisory services.
7. On job training for employees.
8. Provide advice, tools and good practices on why and how to promote
women in management.
9. Support in dealing with banks.
10. Support in operations and financial management.
Follow-up
Action for
SEED
Gender +
Component
B (non-
financial
services)
- Support BWE21 to
develop questionnaire
for BWE21 members
- Arrange meeting with
BWE21 to assess
further collaboration
within SEED context
and support conclude
an aspired
collaboration between
BWE21 and SEED.
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
70
CLOSING PITCHING CEREMONY
18 MAY 2016 – EBNY INCUBATOR
Event type Workshop
Event Closing Pitching Ceremony for EBNY Incubator- Cycle 1
Event
content
SEED COP provided his feedback after every pitch, and highlighted some key
notes for every team to take into consideration moving forward with their
businesses.
Event
organizer Ebny Incubators Etisal NGO Foundation
Event
activities
- EBNY Incubator is the first Internet-of-things incubator in Egypt- Sponsored
by Etisal foundation (an IT foundation comprised of around 150 IT
companies and members with the purpose of bettering the IT environment
in Egypt).
- During the event 4 teams from cycle 1 did a 10 minutes pitch of their idea,
business model and teams.
- 3 teams from the new cycle (cycle 2) did a 5 minutes pitch of their idea.
- Dr. Adam Saffer, COP of USAID's SEED project gave his feedback after every
pitch, and highlighted some key notes for every team to take into
consideration moving forward with their businesses.
- Based on Ebny Incubator manager request, Dr. Adam spoke for 20 minutes
of his own experience as an entrepreneur during the past 25 years. Going
through the reasons for his successes and failures and how it links to each
and every idea presented that day.
Event
Outcomes
for SEED
- Include EBNY Incubator as one of the 3 pilot incubators which SEED will
implement the international best practice on.
- Work with EBNY on increasing the capacity of their staff in order to present
better service to startups.
- Work with EBNY on providing them with technical assistance to the above
mentioned subjects. Working with women participants to conclude major
challenges and areas in need for empowerment with their businesses from a
BDS perspective
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
71
A NETWORKED APPROACH TO ENTREPRENEURSHIP AND
ENTERPRISE DEVELOPMENT
MAY 23, 2016
On May 23, 2016, USAID’s Strengthening Entrepreneurship and Enterprise Development (SEED)
project held the one-day event “A Networked Approach to Entrepreneurship and Enterprise
Development” in Marriott Hotel, Zamalek. The successful event highlighted the importance of
collaboration and networking among mezzanine organizations supporting the growth and
expansion of entrepreneurship and enterprise development in Egypt, as well formally introducing
the SEED Project.
The event format included opening speeches from key stakeholders, three interactive panel
discussions, each addressing a high-priority issue of relevance to USAID’s SEED Project and the
ecosystem, and a closing session featuring the “next steps” for the entrepreneurship and MSME
ecosystem and an address by a dynamic ecosystem thought leader. Actual attendance exceeded
expectations, with 181 registered participants – 98 males and 83 females.
Participants expressed high satisfaction with the event, both verbally and as reflected in event
surveys completed by the attendees. Participants gave the event an overall satisfaction rating of
4.1. They indicated their appreciation for the opportunity to network and share their ideas created
by the event, and that the panel discussions were very fruitful, noting that collecting government
representatives, the private sector, and NGOs together to discuss the challenges to and path
forward for the entrepreneurship and MSME ecosystem was extremely useful. The selection of
venue and format of the event produced an ideal environment for networking.
Based on the success of “A Networked Approach to Entrepreneurship and Enterprise
Development,” SEED is determined to build upon the momentum created and hold further similar
events for project beneficiaries inside and outside of Cairo. Participant recommendations for
future events will be incorporated into SEED’s design process.
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
72
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
73
SOCIAL PERFORMANCE MANAGEMENT WORKSHOP
COPTIC EVANGELICAL ORGANIZATION FOR SOCIAL SERVICES, CAIRO
MAY 18 - 20, 2016
Apart of Component B’s activities and in response to the needs of the Coptic Evangelical
Organization for Social Services (CEOSS) - BDS provider, SEED conducted its first workshop for
microfinance institutions focusing on Social Performance Management (SPM). The overall
objective of the workshop was to support CEOSS in increasing its outreach and accessibility to its
target markets.
The workshop was conducted at the CEOSS premises from 18th to 20th May 2016. The total
number of participants was 18 including 14 males and 4 females. All of them were credit field
workers within the Greater Cairo Governorate.
The workshop was designed to address the social aspects of the work and performance within the
management and operation structures of financial and non-financial services providers.
After completing the workshop, participants were better able to:
Translate their MFI’s mission into social as well as business or financial goals.
Develop social objectives and approaches needed to achieve them.
Collect social performance information from internal and external stakeholders.
Design tools to analyze diverse sources of information to monitor and assess their social
performance.
Align their operational systems with their social goals.
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
74
SEED utilized a participatory approach during the workshop, which provided participants the
opportunity to interact with each other and complete practical exercises applying the skills and
knowledge they learned. The trainer provided key information to all participants through
presentations, group discussions, and working group sessions. Key skills and knowledge obtained
through the training workshop includes but is not limited to differentiating between the social
and financial performance of their organization and how to deal with clients from a social
perspective. Also addressed was the importance of the organization’s mission statement and how
social performance contributes to and aligns with it. The trainer also stressed the quality of
collected data and how it should be used efficiently in decision making and planning.
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
75
FINANCIAL LITERACY TOT WORKSHOP
EGYPTIAN BANKING INSTITUTE, CAIRO
JUNE 4-5, 2016
Apart of Component B’s activities and in collaboration with Egyptian Banking Institute (EBI), SEED
conducted a workshop for microfinance institutions focusing on Financial Literacy.
Representatives from three NGOs attended and completed the workshop; Dakahlia Businessmen's
Association for Community Development (DBACD), Sharkia Businessmen Association for
Community Development (SBACD) and First Microfinance Foundation-Egypt (FMF-E).
The workshop was conducted at EBI premises in Nasr City from 4th to 5th June 2016, to a total
number of 15 participants including 12 males and 3 females.
The workshop was designed to address the basics of financial literacy as well as training skills to
the NGOs that provide microfinance services.
After completing the workshop, participants are better able to:
Facilitate a financial awareness session
Define saving concept
Understand the different ways for saving
Define Entrepreneurship concept
understand Entrepreneurial process
EBI utilized a participatory approach during the workshop, which provided participants the
opportunity to interact with each other and complete practical exercises applying the skills and
knowledge they learned. The trainers provided key information to all participants through
presentations, group discussions, and working group sessions. Key skills and knowledge
obtained through the training workshop includes but is not limited to training delivery
techniques, differentiate between saving and investment concepts, and intruding the
entrepreneurship process.
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
76
PRODUCT DEVELOPMENT FOR SME BANKING WORKSHOP
EGYPTIAN BANKING INSTITUTE, CAIRO
JUNE 2-5, 2016
Apart of Component B’s activities and in collaboration with Egyptian Banking Institute (EBI), SEED
conducted a workshop for financial institutions - banks focusing on product development for SME
banking. Representatives from three banks attended and completed the workshop; Housing and
Development bank, Industrial Development and Workers Bank and Qatari National.
The workshop was conducted at EBI premises 2th to 5th June 2016, to a total number of 21
participants including 17 males and 4 females.
The workshop was designed to address the product development process cycle to those who
are working in SME retail and credit departments at banks.
After completing the workshop, participants are better able to:
Define project management
Describe the market segmentation methods as an introduction to SME market segmentation.
Explain the product design and development process
Describe a competitive product and service range for SME banking
Apply the key success factors of SME product development process
EBI utilized a participatory approach during the workshop, applying several training techniques
such as working groups, open discussions and brainstorming using training aids such as data
show, hand-outs and flipchart. Key skills and knowledge obtained through the training workshop
includes but is not limited to introduction to project management, product segmentation and
targeting, new product development and design for SME banking, building a competitive product
for SME banking; and success factors for SME product development.
Quarterly Report / Strengthening Entrepreneurship and Enterprise Development
(SEED)
77
U.S. Agency for International Development | Egypt
www.usaid.gov