Small and Micro-Enterprise Development Unit (SMED):

 

The Small and Micro Enterprise Development Unit is the unit concerned with the implementation SFD's program in the field of small and micro-enterprises development by providing indirect financial and technical assistance to micro entrepreneurs through implementer intermediary agencies.

The Small and Micro-Enterprise Development Unit working on building the capacity of local intermediary organizations, such as, NGO’s, foundations, companies to allow them to provide financial services (loans and savings) that help increase the income of poor families and improve their standard of living.

 In order to accomplish its goal, SMED adopted the following approaches and methodologies:-

 

·        Establishment and support of microfinance institutions that provide financial services in a sustainable manner by using the best experiments and practices known worldwide.  Such support includes the provision of loans to the partner programs and institutions that in turn, grant loans to the targeted groups. In addition, grants to cover operation costs, establishment costs, and fixed assets necessary to run the activities of the partner programs and institutions are being provided.

 

·        Provision of training courses and programs that are addressed to various groups employed in the small and microfinance programs and institutions through two types of training (Basic and Advanced Training)

 

·        Design and development of the rules and systems governing the activities of small and microfinance programs and institutions.  These include Mae'en Loan Tracking System, Computerized Accounting System and  Human Resources System.

 

·        Dissemination of small and microfinance culture among the general public and officials as an efficient tool in promoting the small and microfinance industry, and in the mitigation poverty and decreasing unemployment by organizing orientation and promotional conferences, seminars, workshops and sessions.

 

·        SMED is devoting efforts for the creation of an adequate environment to secure continuity for the provision of financial and non-financial services to micro entrepreneurs, and to insure their continuous growth and absorption of more manpower.  Thus, the SMED unit operates as an expert powerhouse at the national level for provision of the technical assistance needed for the creation of such an environment.

 

·         After the establishment and financing microfinance programs and institutions in different regions of the governorates in the country, SMED is currently in the process of consolidating some programs of limited geographical scope and similar working methodology into stronger programs and institutions capable to grow and expand, and consequently, deliver financial services to the targeted groups at a lower cost and more efficiently.

·        The unit plays a significant role in encouraging and facilitating new initiatives aimed at increasing the number of microfinance service providers capable of reaching the greatest number of owners of such enterprises in the different regions of the country. This role stems from the fact that SMED is aware of the great need of micro entrepreneurs to financial and non-financial services.

 

·        SMED works continuously on performance assessment of the small and micro finance programs and institutions in Yemen in conformity with the with acknowledged international standards in order to maintain their relevant points of strength and address points of weakness.

 

As part of its efforts aimed at facilitating the provision of non-financial services to micro and small entrepreneurs, and in addition to the preparation of surveys and experimental projects that are necessary for the development of such enterprises,  SMED established the "Small and Micro-Enterprise Promotion Agency", in accordance with the framework of the National Small and Micro Enterprises Development Strategy.

 

Unit Functions

Financial Services

Non-financial Services

Dissemination of Microfinance cultural

Operating as an Expert  House at the National Level in the filed of Microfinance

Facilitating new initiatives

Support transformation to a strong and Sustainability Foundation.