Agile and responsive in economic downturns

BDS can be agile, quickly responding in periods of crisis and economic downturn by adopting more short-term approaches, such as business grants and shifting programming towards business continuity. For example, in Lebanon and Uganda, during the currency crisis and pandemic lockdowns, the BDS approach pivoted from supporting business start-ups to focusing on business continuity and resilience. During these unforeseen crises, direct financial assistance in the form of grants and vouchers became necessary.

Builds on existing economic entities

The majority of businesses in PROSPECTS countries are MSMEs. These are characterized by low productivity and vulnerability to shocks. Support to strengthen BDS has a direct benefit by addressing such challenges and, given the size of the MSME sector in PROSPECTS countries, it can also translate into local economic development.

Supports refugees as employees and customers

While business registration procedures, documentation and capital requirements introduce challenges for refugee entrepreneurs in starting businesses in host countries, refugees are also customers and employees of MSMEs. In contexts where refugees were not able to register their businesses, PROSPECTS worked with MSMEs to generate employment and deliver services in refugee-hosting areas – as was done, for example, with the Jordan Chamber of Industry and agri-food MSMEs.