Technical Assistance Consultant’s Report

Project Number: 44067 August 2013

ARMENIA: Active Women in Rural Communities in

Pilot Project Final Report Implemented from March 2012–May 2013

Prepared by

Armenian Young Women’s Association

For ADB RETA 7563: Promoting Gender Inclusive Growth in CWRD DMCs

This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents.

PILOT PROJECT FINAL REPORT Active Women in Rural Communities of Armenia March 2012–May 2013

Summary

The overall aim of the project was to contribute to poverty reduction among women in Armenia, facilitate sustainable rural economy development, thus, promote social and economic development in communities through empowering rural women and enabling them to play active role in their communities. The baseline survey showed that the low income in rural communities partly is due to not using the land effectively, not having enough knowledge and skills on agricultural business, not being able to create added value, not finding markets for their product, not being able to get financial resources for their business.

The project was aimed at individual rural women, rural CBOs, formal and informal women groups in Ararat, , and neighboring rural communities. The project participants were women from the mentioned areas who increased their capacities by participating in business trainings, discussions, consultations, and establishing strong networks with other partners and stakeholders. The project contributed to the empowerment of rural women through promotion and development of small and medium enterprises in Yerevan, Ashtarak, and Ararat and their neighboring communities.

The following activities were carried out during the project implementation:  Meetings/negotiations with relevant partner ministries, and regional and local authorities;  Presentations of the project in the beneficiary communities, identification of women groups and individuals as project beneficiaries;  Four business trainings with CEFE methodology (total number of participants: 60)—provided knowledge and skills on doing successful business and marketing;  Orientation seminars, group and individual consultations, and technical services provided to beneficiary women (total number of participants: more than 120);  Meetings and making linkages with the representatives of financial institutions and project beneficiaries;  Organizing two workshops on agricultural issues with participation of wide group of partners, beneficiaries, field actors, and media; and  Publishing informative Yellow Pages for the actors in the field: provided contacts of the project beneficiaries and different actors in the field—state bodies, INGOs, NGOs, financial institution, fruit processing companies, women entrepreneurs and project beneficiaries. The brochure was disseminated through project beneficiaries, partners and other interested organizations working in the field.

The achievements for the beneficiaries from the project itself were:  More empowered and business oriented women in agricultural field;  Strong networking skills and opportunities for cooperation;  Business plans—submitted and accepted for financing;  Easy and good access to other agricultural events;  Being acknowledged as successful women; and  Project total direct beneficiaries: 120; indirect beneficiaries: 1450–1500.

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FINAL REPORT

A. NARRATIVE REPORT

1. Project Background/Brief Description

The project “Women in Rural Communities of Armenia” was implemented by AYWA in Yerevan, Ashtarak, and Ararat and their neighboring communities, between the period 12 March 2012 to 15 May, 2013. The project covered all the three mentioned communities including their neighboring rural communities, totaling 20 communities.

The goal of the project was to achieve women’s equal participation and benefits from development, thus, contribute to poverty reduction among Armenian women and mainstreaming rural women issues into priority agenda.

Totally, 120 businesswomen, as direct beneficiaries, benefited from the trainings on SME (small and medium enterprise) which provided them with skills on running a business successfully, networking, easier approach to the state and its regulations, running non-profit, business and micro-credit organizations. The number of indirect beneficiaries of the project is 1450–1500.

The first outcome intended by the project was for 60% of businesswomen to increase their capital by 5% or more. Project results show that the beneficiaries increased their capital for more than 5% by having an access to financial institutions and new markets.

The second outcome intended by the project was for 20% of women beneficiaries to start their business. This target was accomplished as 23 of the 60 beneficiaries were able to start a business on fruit and vegetables growing and processing. 17 business plans were developed by 16 individuals and one women group (7 women). 60 businesswomen benefited from skills training on SME management (output 1), networking (output 2), and accessing credit (output 3). 17 business plans were developed, 11 from them were submitted to relevant micro-financing and credit organizations. Three business plans have already been financed, eight of them in process.

Contributing the third output, about 20 of project beneficiaries have been involved in Network of Women Entrepreneurs of Armenia, established by AYWA and successfully cooperated with each other.

1.1. Final Report

1.1.1. Project Management, Partnership, Institutional Arrangements as Stated in Grant Proposal Form

The project had a staff consisting of a team leader, project implementation officer, accountant, and driver; at the same time, the project also engaged two trainers responsible for conducting business trainings with CEFE methodology and a consultant for consultations/seminars provided during the project.

Within the frames of the project, AYWA has collaborated with different organizations (USAID EDMC, USAID CEED, UMCOR, Rural Co-Op foundation, OXFAM, Center for Agrobusiness and Rural Development Foundation, “SEF International” credit organization, “Nor horizon” credit

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organization), Ministries (Ministry of Agriculture, Ministry of Economy, Ministry of Territorial Administration) and local authorities (LSGs). AYWA signed MOUs (Memorandum of Understanding) with local governments (regional government of [Marzpetaran]), SME DNC (Small and Medium Entrepreneurship Development National Center of Armenia and SEF International credit organization). In the signed MOUs, the parties expressed their willingness to support the project both during its implementation and later. Collaboration with different organizations made the project more open and informative for the beneficiaries: particularly, partner NGOs and state and international organizations such as “Mansur” NGO in Ashtarak, “Rural Woman” NGO in , Ararat Regional Center of Agricultural Support, SME DNC, UMCOR, Ministry of Agriculture, “Agricultural Association” cooperative, have shared information about the project and its cycles (CEFE (Competency–Based Economies, Formation of Enterprise) trainings, consultations, etc.) through their networks and supported popularization and better outreach to more women beneficiaries.

AYWA became a member of the Armenian Agricultural Alliance which gathers almost all actors in agricultural field (state, international, NGOs).

1.2. Status of the Implementation Plan

According to the project implementation plan, all the activities have been done.

1.2.1. Output 1: Increased Knowledge and Skills on SME Management of Rural Women

60 selected women from Ashtarak, Ararat, Yerevan and neighboring communities were provided with business trainings. They enriched their knowledge on doing business and better marketing. AYWA developed and disseminated special application form for the selection of potential business training participants during the visits to project beneficiary communities. As a result, 60 participants were selected for CEFE trainings after the analysis of fulfilled applications and conducting personal interviews. One of the main selection criteria was that women either had to be a businesswoman or were willing to establish a new business in agricultural production or other related sphere.

As a result, women in the mentioned communities got new business skills, expanded their business visions, developed their business plans, and started establishing links with other stakeholders, as well as found new markets and beneficiaries.

During the implementation of the project, three business plans were financed and eight business plans are in progress to be financed.

The trainings participants, having additional skills, started networking amongst different communities and regions, having more opportunities for partnership and accessing new markets, e.g., some participants from Ashtarak started to purchase agricultural products for making dried fruits from the project participants from Ararat.

During the project implementation, AYWA actively cooperated with the Ministries of Agriculture, Territorial Administration and local regional governments of Ararat and Aragatsotn regions, as well as with project beneficiary communities administrations, micro-credit, international organizations.

In addition, AYWA signed MOUs with the local communities; MOU was signed with SME DNC (Small and Medium Enterprises Development National Centre). As a result of this MOU, three

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business plans have been financed by SME DNC micro credit organization (“SME investment” universal credit organization), as well as eight more business plans are in process to be financed.

Some project beneficiaries have had an opportunity to meet with different partner organizations during meetings and introduce their business plans and discuss challenges in running business. During the project implementation, a group of project beneficiaries met with Mr. Jeremy Stickings, Ms. Ketevan Chkheidze, ADB representatives, in June 2012 in Oshakan. Another meeting was held with the project beneficiaries and ADB representatives, with Ms. Shanny Campbell, Ms. Wilma Rojas, in April 2013, in Nizami.

1.2.1.1. Project AYWA had close cooperation with different state bodies. AYWA had different meetings with the representatives of the Ministry of Agriculture, Ministry of Economy, Ministry of Territorial Administration, local regional governments (Marzpetaran) of Ararat and Aragatsotn regions, Ararat’s Regional Center of Agricultural Support, LSGs of several rural communities including Yerevan and neighboring communities from where it had project participants.

1.2.1.2. A total of 31 preparatory trips and meetings were arranged in Ashtarak (twice), Oshakan (twice), , , , Agarak, Karbi, , Bazmaghbyur, Ararat, Ararat vil., Ayntap, , Shahumyan, Khor‐Virap, Avshar, , , Pokr , Nor‐ Yerznka, Kasakh, Proshyan, Dzhrvezh, Geghanist, Nizami, , Andranikavan, Sayat‐ Nova, Arinj for the identification of women groups and individuals as project possible beneficiaries.

1.2.2. Output 2: Rural Business Women’s Network Established

In Ashtarak, Ararat, and Yerevan, with their neighboring rural communities, several active women, and women’s groups were identified as project beneficiaries

1.2.2.1. The Cooperative of “Gyughi Tatik ” (“Village Grandmother ”) in Oshakan with more than 10 members, an active women group in Nizami village headed by Laura Kocharyan with seven members, an agricultural cooperatives in Nizami, Dashtavan and Poqr‐Vedi villages.

1.2.2.2. About 20 beneficiaries (four from Ashtarak and neighboring, 12 Yerevan and neighboring and three from Ararat and neighborhood) have been involved in the Network of Women Entrepreneurs of Armenia, established by AYWA. The Network provides women entrepreneurs opportunity to find new partners, new markets, and new suppliers, to share their experience, to be a part of a big network which already joins women entrepreneurs throughout Armenia. About 15% of the Network members are women in agricultural sector. Some of the project beneficiaries as members of the Women Entrepreneurs Network participated in the seminars for women entrepreneurs held on 21–23 July and 29–31 August 2012, in . The seminars were organized by AYWA with support of the U.S. Embassy in Armenia. The three-day trainings concerned issues of networking, partnership, development of social networks. During the trainings meetings were also organized with the representatives of different state agencies (Ministry of Economy, SME DNC) and international organizations (EDMC, UNIDO, CEED, Eurasia partnership Foundation) as well as small expos have been organized where members of the Women Entrepreneurs Network displayed their products. Network members also participated in the exchange visits, both in national and regional (with Georgian partners) (http://www.aywa.am/hy/view/704 , http://www.aywa.am/hy/view/705).

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On 8–9 December 2012, AYWA organized Christmas Charity Fair in Yerevan, “Congress” hotel, where 12 members of the project participated and sold their products, as well as found new suppliers.

Project beneficiary Mrs. Nelli Avetisyan was awarded by the Prime Minister of the Republic of Armenia as “Best Woman Innovator” (http://www.aywa.am/en/view/727).

On 8 March 2013, “Female Food Hero” award was organized by AYWA and OXFAM and the project participant Mrs. Laura Kochayan from Nizami was one of the winners (http://www.aywa.am/hy/view/715).

1.2.2.3. Several beneficiaries (from Ararat region, Yerevan neighboring communities, and Ashtarak region), at the same time, had an opportunity to participate in the agricultural market which was organized in Yerevan on weekends from July to December 2012. The project beneficiaries will participate in the weekend agricultural market again.

1.2.3. Output 3: Improved Income-Generating Opportunities for Women

1.2.3.1. Within the scopes of the project, before starting business trainings (from May to November), 6 orientation seminars were held in Astarak, Oshakan, Nizami, Dashtavan, Ararat and Yerevan. More than 80 women participated in seminars.

1.2.3.2. Business training with CEFE methodology in Ashtarak has been implemented from 29 June to 31 July, in Nizamy from 15 October to 16 November, in Ararat on 1–30 November, and Yerevan from 26 November to 25 December. One of the main principles of the CEFE methodology was to provide necessary business and entrepreneurial skills and knowledge despite one’s educational background and experience (for more details see Appendix 3: CEFE methodology). The training consisted of two parts: seminars and consultations. The 60 participants attended 12 seminars and 15 individual consultations on their business plans. Each seminar session lasted for 4 hours and individual trainings for 1 hour. The training included the following parts: i) orientation part (generation of business idea), ii) marketing, iii) production, iv) management, v) financial analysis. After the trainings, most of the participants developed their business plans and a presentation of business plans was organized. After completion of the training course, the participants evaluated the program. The program was rated using 5-point system. The distribution of scores is as follows: content of the program– 4.8, methodology – 5, trainers qualifications – 4.9, ratio of the theoretical and practical – 4.4, group discussions/practical work – 4.7, received materials – 4.5, meeting participants expectations – 4.7, relevance of participant’s work – 4.6, applicability of the obtained knowledge and skills to participant’s future work, and finally the overall rating of the program – 4.8.

1.2.3.3. 17 business plans were developed by project beneficiaries. On 30 July 2012 was the presentation of business plans developed by Ashtarak training participants, 6 December 2012 by Ararat and Nizamy, and 14 January 2013 by Yerevan training participants. Some of partner organizations representatives participated as selection committee members (USAID CEED, USAID EDMC, SME DNC Armenia, “SEF International” credit organization, “Nor horizon” credit organization).

Consultation meetings were held in Ashtarak, Ararat, Nizami and Yerevan for the further development of business projects. Both CEFE training participants and other beneficiaries of the project participated in the consultations. Three developed business plans were accepted by

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credit organizations for financing. Other eight business plans are in the negotiation process for funding.

1.2.3.4. AYWA hired an expert, Vera Zakaryan, who specialized in fruit processing, particularly in fruit drying, and she conducted trainings in agricultural production and associating for rural women groups from Ashtarak, Ararat, and Yerevan neighboring rural communities. Along with individual consultations, AYWA also organized different kinds of trainings/seminars on fruit drying, associating, and plant protection (struggle against plant pests and diseases, the means of struggle, plant nutrition) in Yerevan, Nizami, Ashtarak, Ararat, Poqr Vedi village, Oshakan village. The topics of the trainings/seminars have been selected upon the needs assessment of the project beneficiaries, in the phase of the CEFE trainings and meetings/discussions.

Two roundtable discussions were conducted on 7 May 2013 (subject: “Agricultural farms development trends and prospects”) and 8 May 2013 (“Contemporary Issues in the Agricultural Sector”). In both roundtable, representatives from state structures (deputy minister and other representatives of the Ministry of Agriculture), international, private, public organizations, educational institutions (Armenian National Agrarian University), individual farmers, agricultural cooperatives members, networks members, project beneficiaries, micro-credit providing organizations and other relevant stakeholders took part. In each roundtable discussion, more than 40 people participated. Both roundtable discussions were highlighted in the media. After the roundtable discussions, AYWA summarized the results of the discussions, prepared a short document with the suggestions, and submitted it to the Ministry of Agriculture and other relevant stakeholders for consideration.

1.2.3.5. AYWA developed, printed, and disseminated informative brochure "Yellow Pages" to the project beneficiaries. Yellow Pages provide them information and relevant contacts of the actors of agricultural field (state, international, private, public organizations, project beneficiaries, financial institutions, fruit processing companies, women entrepreneurs). The official presentation of the Yellow Pages was held on 8 May during the roundtable discussion.

2. Project Implementation Challenges and How They Were Addressed

The training in Ashtarak was organized and successfully finished in June 2012, and the remaining trainings in Ararat, Yerevan, and one additional training in Nizami community conducted from October to December 2012. Because of agricultural high season, many potential training participants were not able to come and participate in the trainings in the period from June to August, as it was initially planned in the project. Taking into consideration this fact, the project implementation staff postponed the rest of trainings for later period until October 2012, with ADB approval.

In general, the project was very successful as revealed from the feedback of beneficiaries. Considering the positive feedback from the project participants and the partners (Ministry of Agriculture, women groups, etc.), AYWA is recommending to continue and expand the project and involve also other communities along the ADB funded North-South Road Corridor program.

B. FINANCIAL REPORT

1. Financial Report, based on the budget structure submitted (see attached).

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C. APPENDICES

1. Table on Project Implementation Status 2. Publications/Mass Media Coverage of the Project: 3. CEFE Methodology 4. Photos

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A. Appendix 1: Table on Project Implementation Status

Project: Active Women in Rural Communities of Armenia Country: Armenia

B. Project Dates: 12.03.2012- 15.05.2013

Based on approved Implementation Plan Report on Actual Status Remarks if target dates Outputs Activities Activity Success Indicator Completion and success indicators (Planned) Date were not achieved as planned N1 Coordination with Active participation in project 15.05.13 Completed. line ministries at activities the representatives the national and from relevant state bodies. local levels N1 Preparatory trips Totally 31 preparatory trips to 25.12.12 Completed. to the Ashtarak, Ashtarak, Ararat and Yerevan Ararat and to rural residential areas to Yerevan rural present the goals and residential areas to objectives of the project. present the project goals and objectives N1 Signing MOUs with 11 MOUs signed with local 25.12.12 Completed. local authorities of authorities. the selected communities N2 Identification of 15 CBOs, women groups and 25.12.12 Completed. CBO, women individuals were identified groups or individuals as project beneficiaries N2 Forming and During the implementation of 25.12.12 Completed. facilitating the self- the project more than 10 self- help women help groups were formed. groups

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N2 Integration of Training curricula was 25.12.12 Completed. identified developed taking into . beneficiaries in consideration the local needs of identification of each region. training needs N2 Organizing More than 80 women 25.12.12 Completed. orientation participated in organized 6 seminars for orientation seminars. women as potential trainings participants Provision of SME 60 selected beneficiaries (20 25.12.12 Completed. N1 trainings for 60 participants in 3 trainings in N3 beneficiaries (3 each) participated in business training for 20 trainings. As shown the participants in feedback reports the knowledge each project area) of participants in doing business increased more than 60%. Most of them do not have any significant business knowledge. N2 Development of In support with AYWA 25.12.12 Completed. business plans by consultant were developed 17 the formed women business plans by project groups in beneficiaries (13 of them on collaboration with fruit processing). AYWA consultant N2 Organizing 3 presentations of business 14.01.2013 Completed. presentations of plans were organized to developed present the developed 17 business plan to business plans. interested stakeholders (micro-credit bank representatives etc.) N2 Submission of the 11 business plans were 15.05.13 Completed. developed submitted to relevant financial business plans to institutions. 3 business plans relevant financial were accepted for financing. 8 10

institutions business plans are in discussion process N1 Consultation Totally were organized 17 15.05.13 Completed. N2 meetings consultation meetings, N3 particularly: 3 meetings in Ashtarak; 5 meetings in Nizami; 6 meetings in Yerevan 3 meetings in Ararat N2 Provision of 50 beneficiaries participated in Completed. N3 trainings/workshop conducted trainings and 15.05.13 s of rural women workshops and increased their groups in knowledge in harvesting agricultural production and associating N2 Provision of More than 30 beneficiaries has 15.05.13 Completed. N3 workshops/discus participated in different sions of rural trainings, seminars and women groups in discussions on social economic and networking and social social participation partnership an 20 of them have been involved in Network of Women Entrepreneurs of Armenia, established by AYWA. Development and 25.12.12 Completed. submission of the Progress Report to ADB

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N1 Organization of More than 40 people Completed. N2 Round Table participated in Round Table N3 Discussions Discussion which opened an 15.05.13 involving all access to microfinance for relevant some project beneficiaries. institutions providing micro credits and small grants for rural development and agro-business N1 Organization of More than 40 people Completed. N2 Round Table participated in Round Table N3 Discussions to Discussion which provided 15.05.13 provide project beneficiaries with participants with relevant business and other appropriate contacts. business contacts of profile big plants, successful individual farmers and existing networks N1 Development and An Informative Brochure Completed. N2 printing of "Yellow Pages" was developed, brochure as a printed and disseminated by 15.05.13 Yellow Pages Book AWAY in 500 examples. The with contacts of number of the Brochure was Women increased from 100 to 500 due Entrepreneurs and to expressed relevant interest contacts of micro- and need of beneficiaries. credit organizations

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Appendix 2: Publications/Mass media coverage of the project: http://businesswoman.am/en/news/view/521 http://businesswoman.am/hy/news/view/519 http://businesswoman.am/hy/news/view/522 http://businesswoman.am/hy/news/view/529 http://www.aywa.am/hy/view/675 http://www.aywa.am/hy/view/711 http://armenpress.am/arm/news/717981/gyuxatntes-kananc-neruzhy-knerdrvi-tntesutyan- zargacman.html http://www.aravot.am/2013/05/07/240976/ http://www.armnewstv.am/hy/1367927408 (includes success story of one of the participants) http://arka.am/am/news/business http://www.shirak.agro.am/index.php?id=560&tx_ttnews%5Btt_news%5D=8363&cHash=77f961 a62b145e71aa7e8f5ba8aa2264 http://www.nt.am/am/events/10870/ http://www.radiovan.fm http://ahpc.am/?p=11101&l=am http://www.panarmenian.net/arm/news/157398/ http://agro.am/index.php

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Appendix 3: CEFE Methodology

CEFE Course: Brief Description

CEFE is a long-term counseling and educational program for entrepreneurs.

In our trainings the orientation will be made on women involved in agricultural field.

The program is made up of a number of tests based on the main task was to train adults to be literate in the business environment.

One of the main principles of the CEFE methodology is to make possibility to provide necessary knowledge, information and develop entrepreneurial skills to an entrepreneur despite of her/his educational background, experience and knowledge baggage.

To achieve this goal, different methods were tested before, during the time, by different actors: lectures, case studies, professional consultancy, law and financial assistance. However, none of them widely brought a significant success to an entrepreneur. Lack of entrepreneurs’ entrepreneurial spirit, vision, and experience in presenting herself/himself as an entrepreneur, lack of information of market situation, guidance and skills to operate, ability to build a business aimed at the consumption, ability of orientation in business field etc. – the reasons of it.. In order to achieve all these values at the same time, there was a need to combine all the methods together, underlining “learning by doing” approach through carefully designed exercises. Through these exercises the training participants have an opportunity to feel themselves in real business environment, as its actors, who makes benefit or lose. “Learning by doing” is one of the main approaches for CEFE methodology.

CEFE methodology also relies on theory of andragogy which states special methods for adult teaching.

Considering the fact that an entrepreneur may have long term benefit through satisfying the consumers' needs, CEFE methodology makes a specific place for the consumer – in the centre of the business, and provides the training participants ability to develop a business around the consumer.

As well as, CEFE methodology combines both entrepreneurial training with consultations and financial assistance. As a result, an entrepreneur receives a full package of knowledge and skills for the implementation her business idea.

Course Outline The CEFE methodology training part consists of:

- Orientational Course

 The structure, principles and methodology of the course;  The participants’ expectations specification;  The Retrieval of entrepreneurial characteristics;  The tools of Success (vision, goals, strategies);  The Business ideas generation;  The Business idea selection (macro selection, micro selection, SWOT).

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- Marketing plan

 Exercise “Investor”;  Introduction to Marketing;  Exercise “Mini market”;  Segmentation;  Competition profile;  Market share and capacity;  Sales volume forecast;  Marketing strategy (7P);  Marketing budget.

- Production plan

 Introduction to production plan;  Cost price;  Production design;  The exercise “production of crowns”.

- Management plan

 Introduction to Management;  Management;  Communication;  The legal and organizational types of firms;  Gantt chart (project, action plan).

- Financial plan

 Introduction to Financial plan;  The project cost;  Profit/loss;  Cash flow statement;  Balance;  Profitability.

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Appendix 4: Photos

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