» Projects: Europe / Central Asia

SME Equity Fund: Strategic Outsourcing as a Mechanism for SME Development

The financial market in Kazakhstan’s Karaganda Oblast faced a void for meeting the capital requirements of SMEs for projects requiring $250,000 - $1,000,000 in investment capital. Concurrently, a major steel producer faced the challenge of reducing its production cost structure. In this context, Global Development Solutions designed and successfully implemented an SME development fund targeted towards stimulating SME sector growth in Karaganda Oblast, with a special focus on developing and improving local sourcing by the steel producer. The fund resulted in the formation of a commercially sustainable market opportunity for SMEs and stimulated the creation of new job opportunities, as well as fostering a culture of entrepreneurship.