Reports - United Nations Development Programme

COUNTRY EVALUATION: ASSESSMENT OF DEVELOPMENT RESULTS – TURKEY
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development services, which is parallel to the expectations
of the EU. In this second stage there is a more integrated
coordination of projects, stricter monitoring, and focus on
a smaller number of projects. GI˚DEMs conduct market
research, feasibility studies, SME analysis and project
profiles for their clients. A typical GI˚DEM centre offers
small investors ideas for business development, helps with
business start up or reorganisation, and gives advice on
how to access financing. They also help NGOs and
Government offices increase capacity through training
programmes. GI˚DEM consultants are encouraged to
actively search out clients by going to their offices, even
though this may be difficult due to the shortage of staff.
Each GI˚DEM has ‘opportunity windows’ for special
projects that are designed specifically for that province. 48
On average, GI˚DEM offices provide 130 case
services a month. According to detailed business reports
of the GI˚DEM centres, during the six months between
May 2003 and October 2003, 1851 businessmen, 362
NGO members and 252 civil servants benefited from
GI˚DEMs’ information services, and 207 businessmen
and 14 NGO members benefited from GI˚DEMs’
consultancy and advisory services. They also organised
2-3 training events a month, in each of which 20-150
businessmen took part. The training programmes range
from courses on “Creating and Employing Qualified
Manpower” to general information programmes such as
“Trading with Syria” or “Doing Business with UN
System”, specific training such as “Cotton Sowing and
Growth” or training in “Silver Craftsmanship”, besides
more general business information courses such as
“Starting up Business”, “Quality Assurance Systems”, or
“Project Preparation Techniques”. Such general business
courses are usually repeated on demand in various
GI˚DEMs. The GI˚DEM consultants themselves also
receive training periodically.
Assessment of the GI˚DEM Approach and Its Prospects
Despite internal variation between different offices in
different provinces, GAP/GI˚DEM is considered to be a
highly successful endeavour. 49 There seems to be great
demand for GI˚DEM services. All the stakeholders agree
that their services should continue, and they should be
supported by the state and international funds, by
Chambers of Commerce and Industry, by Small Businessmen
Associations and by local authorities. The GI˚DEM
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48. A number of projects are operating successfully, such as the Entrepreneurship
Center at the Dicle University. Adıyaman Textile Vocational Training Center is
ready to open very soon. There are already demands from 68 SME’s for training.
49. The GAP/GI˚DEM office located in the city of Diyarbakır received special praise
for visibility and effectiveness.
model has also been used elsewhere, including in the
LEAP project (see below). Provincial Governments in
other regions of Turkey, such as Siirt and Batman, have
also been reported as trying to establish business advisory
centres with their own resources, modelled on the
GI˚DEM approach.
While no hard numbers are available on new business
growth and employment creation, many GI˚DEM clients
have indicated that they improved their business and
increased their employment or started up business to
employ new people. This indicates that GI˚DEMs are
helping to reduce regional disparities and generate
income by improving business capacity in the region and
improving the visibility of the business community in
their provinces. However, despite their success, the
GI˚DEM approach faces a number of so far unanswered
questions for the future.
Although business clients have great praise for
GI˚DEM activities, many of them have complained that
they cannot in fact fully apply the advice they get from
GI˚DEM due to financial problems. GI˚DEMs can advise
on credit opportunities, but businessmen find it difficult
to produce collateral. There is low interest credit available
for SMEs from state resources, but they usually prove to
be too limited. GI˚DEMs are unlikely to reach their full
potential unless the centres are linked to effective credit
and finance schemes that can support new investments
and business restructuring in the regions. As a stopgap
measure, GI˚DEMs have managed to attract Euro 2.2
million of EU funds to be distributed as grants for
funding investments in the region. While these grants are
being disbursed, and based on the experience with this
scheme, it would be appropriate to develop a more
permanent approach to facilitate suitable financing for
firms in the less developed regions.
Aside from the issue of investment finance,
GI˚DEMs are facing other serious sustainability
problems. At present, the operating cost for the centres
are high because they are using highly qualified and
expensive national consultants and the centres do not
generate sufficient revenues to support themselves once
external grant support runs out upon completion of the
second project phase. The project management
contracted for international consultancy services in
September 2003 to advise on the issue of sustainability,
and 14 potential revenue streams were suggested (service
fees, subscription fees, donor programme delivery,
GI˚DEM programme delivery, consultancy provider
financial package, success fees, equity, rental income,
corporate sponsorship training programmes, specialist