The FINANCIAL — LLC Savali, a small enterprise producing cookies in the town of Gori, is going to expand its business and sell its products in neighboring villages. After receiving a cash grant from CARE International in the Caucasus, the enterprise employed 12 more people and is reporting a 25 percent growth in profits.
CARE granted 10,000 USD to the enterprise in Gori as part of its project called Stabilization and Integration of IDPs into Mainstream Georgian Society (SIIMS). “SIIMS project is funded by Norwegian Ministry of Foreign Affaires and jointly implemented by CARE-Norway and CARE International in the Caucasus in partnership with “Civil Development Agency” (CiDA).
SIIMS’ “Grants for Job” scheme provides financial incentives to small businesses to foster their growth and creation of more jobs. The project seeks to create income-generating opportunities for IDPs displaced after the August War 2008 as they are struggling to put their life back on track.
Tamar Okropiridze from the Karaleti IDP Settlement is now working as a baker in Savali. Having lost her husband well before the war Tamar has to support her family of five all alone. But a stable monthly income which she earns after getting employed will relieve her plight. Okropiridze is paid a 300 GEL net monthly salary. “I earn enough to put food on the table or send my child to school and my grandchild to the kindergarten,” she notes.
According to a baseline survey conducted within the SIIMS project in December, 2009, the average income (excluding social programs) for IDPs living in Shida Kartli and Kvemo Kartli was GEL 78, and only 8% of IDPs and 12% of their host communities had formal employment. Therefore, 22% of unemployed IDPs say they have skills used before the war, but not used now.
Tamar’s story reflects the life of 19 new IDPs who now are employed in local businesses in Shida Kartli and Kvemo Kartli regions. All of them are sole breadwinners for their families. Four of the grants of 10,000 USD have been disbursed so far and about 10 more grants will be given out in the coming year to spur economic development in low-income communities and create more jobs.
Savali was a little enterprise processing wood, producing furniture and metal plastic windows. The grant allowed the enterprise to expand its profile and add a new production line. They purchased rotary baker for cakes, a waffle baking oven, a mixing equipment etc.
Khvicha Chkhikvadze, the owner now expects the profit will grow by another 50 percent in three months’ time.
“We are going to reinvest our returns to improve our sanitation standards. As Food Safety Regulations are coming into force, we have to be ready to meet new requirements,” he said.
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