Auftragsänderung 1: 81301886-Improving framework conditions for sustainable business development of MSMEs in Kenya

The aim of the Programme for Promotion of Self Employment and Entrepreneurship is that the framework conditions for sustainable business development of MSMEs are improved. To this end, relevant public and private sector actors in the entrepreneurial ecosystem are supported in developing consulting, training and coaching services for MSMEs, increasing the entrepreneurial skills of MSMEs and improving access to financing. Of particular importance is promotion of approaches that enable economically and environmentally sustainable business models and female entrepreneurship. The capacity development strategy pursues a multi-level approach. At the macro level, the State Department for Micro, Small and Medium Enterprises (MSME) Development and its subordinate structures are advised on priority topics of MSME funding and policy. At the meso level, stakeholders in MSME promotion are strengthened in establishing and further developing offers for sustainable business development of MSMEs. At the micro level, MSMEs' competencies to develop,expand and become environmentally sustainable are strengthened. Additionally, the project aims to strengthen the cooperation and networking skills of the various public and private sector actors with regard to funding opportunities for MSMEs. The aim is to sustainably anchor the offers for a broad target group, including informal enterprises with formalisation potential. Environmental and climate aspects will be integrated into all relevant measures of the project in the sense of a "green recovery". The target group of the proposed TC module is enterprises up to 7 years after establishment and owned by youth (persons who are 18-35years old) with operations in the greater Nairobi area (Nairobi, Kiambu, Machakos and Kajiado counties). Women entrepreneurs and women-owned MSMEs are a particular focus of the funding approach as an important sub-target group. Two outputs have been defined for the project. Output 1 aims to strengthen the personnel and planning capacities of selected state funding institutions for the design of support measures for MSMEs. The project supports the political partner as well as subordinate authorities with consulting and training services in the implementation of MSME support policy as well as MSME promotion measures. In the field of MSME financing, public institutions are advised on the further development of state MSME financing funds. This is coupled with training of staff from government agencies with an intention of improving their skills to implement support measures aimed at improving the environmental sustainability of MSMEs. Output 2 aims to expand the range of services offered by selected service providers for MSMEs with regard to economically and ecologically sustainable business development. State funding institutions as well as private business service providers are supported in setting up, expanding and sustainably incorporating training, matching or coaching services to increase the business and financial capacities of MSMEs into their portfolio. The key implementing partner for the project is the State Department for MSMEs Development. This state department was initiated by the current Government of Kenya in September 2022 to spearhead the implementation of its development agenda referred to as the Bottom-up Economic Transformative Agenda (BETA). Its key roles include: Promoting and developing policies to facilitate growth of enterprises in all key aspects; Administration of government-initiated business catalytic funds; Capacity development for entrepreneurs; Support for upgrading and modernization of technology in established clusters; Establishment of integrated infrastructural facilities for MSMEs; Create enabling environment for business innovation and incubation; Champion subcontracting arrangements between SMEs and Large Enterprises; Market development; Support for product development; Promotion and development of the cottage industry.