News: CSF introduces matching grants facility for micro-enterprises
URL of the Website:http://www.dailytimes.com.pk/default.asp?page=2008\07\04\story_4-7-2008_pg5_13
Date of publication: Friday, July 04 , 2008

ISLAMABAD: The Competitiveness Support Fund (CSF), a joint initiative of the United States Agency for International Development (USAID) and Ministry of Finance, Government of Pakistan, has launched a brochure on its Business Incubator-Matching Grants facility to promote co-financing initiatives for micro enterprises in Pakistan.

CSF is, through one of its three operational windows, supporting Pakistan’s goal of a more competitive economy by providing a Business Incubator/Matching Grants facility, which focuses on developing grant-based projects for up-gradation of economic competitiveness at a micro level. This is done through providing financial assistance through a grant to support developing a knowledge-based enterprise sector in Pakistan.

CSF has estimated that more than $10.5 million (Rs 630 million) of new investment will result from these projects for a total project cost of $2.8 million (Rs168 million). More than 90 new business and enterprises are expected to emerge from this initiative, creating more than 11,500 jobs in Pakistan.

The CSF matching grant and business incubator facility is open to all sectors of Pakistan’s economy with a focus on becoming competitive in products or services they are offering. CSF grant projects are selected on the basis of a fair and objective set of criteria that match international best practices and benchmarks; however main focus of selection is carried out on the basis of the project’s potential to generate jobs, increase income, improve quality of products and services and promote trade and investment. The engagement of women employment is also a strong focal area in the selection of sponsoring projects, as CSF emphasizes on women development as a crucial element in contributing to a sustainable economic growth. CSF also requires, if possible, that a triple Helix model of Public-Private-Academic sector partnership is part of the proposed project.

Arthur Bayhan, Chief Executive Officer CSF stated that the CSF Board has already approved 10 innovative projects for implementation under its matching grants window. “These projects are focused on providing the necessary finance for innovation, technology transfer, skill development, vocational training and women’s development”.

The matching grant projects are mainly focused on agricultural and industrial clusters and associations and are being reached with projects from the Mohmand Agency in FATA to Quetta, Karachi and Lahore. Many of them will introduce new machinery and innovative techniques not currently found in Pakistan while others are directed at improving quality, the work environment and the quality of products.

The matching grants facility carries the objectives of supporting projects from across the country to showcase innovation and enhance the competitiveness of the economic sectors through pilot initiatives and to support linkages between academia/R&D institutions and the private sector aimed at creating a knowledge-based economy, thus upgrading Pakistan’s economic competitiveness.

In addition to this facility, the matching grants window also covers the business incubator project. This project seeks to provide space for business-minded individuals with a workable idea, to start up their project. The space goes hand-in-hand with other business support services provided in-house, such as business support at events and a dedicated business enterprise network.

As part of the business incubator project, CSF and the Higher Education Commission will jointly invest time and money in developing a framework for setting up the business incubators at leading academic institutes. These business incubators, by providing timely help and support to new ventures, will hold the potential to create and develop entrepreneurial talent at the micro-level and foster an environment for entrepreneurship at the macro level.

Support for CSF is part of the $1.5 billion in aid that the US Government is providing through USAID to Pakistan over five years to improve economic growth, education, health, governance and for earthquake reconstruction.