This document assesses the impact of microprojects funded by the "Remittances Developing Moldovan Communities" project. It finds that the 7 businesses supported created 20 new jobs, prevented some migration, and contributed to local budgets. Factors in their success included existing experience, modern equipment, and training. The businesses were economically viable but faced challenges expanding. The project succeeded in starting new businesses and jobs while providing examples for others. It is recommended to expand such support to more areas and women while helping businesses further ensure long-term sustainability.

1. ASSESSMENT OF FUNDED MICROPROJECTS
IMPACT ON COMMUNITY DEVELOPMENT
Diana CHEIANU-ANDREI,
Project Evaluator

2. PURPOSE OF ASSESSMENT
The impact of funded microprojects on the
community through their effectiveness,
efficiency, consequences on the environment,
gender aspects, and last but not least,
sustainability.
The assessment of results was conducted 6 months
after the microgrant beneficiaries have received the
equipment and machinery purchased within the
project.

3. ASSESSMENT METHODOLOGY
1. Analysis of documents.
2. Observation.
3. Individual in-depth interview. Interviews were conducted with:
(i) representatives of local public administration of levels I and II from localities
where projects are implemented;
(ii) a representative of a national association the microproject beneficiaries are
members of;
(iii) manager of the Orhei Resource Centre;
(iv) microproject beneficiaries;
(v) representatives of Hilfswerk Austria in Moldova, implementers of the
“Remittances Developing Moldovan Communities” Project and project partner the
National Assistance and Information Centre for NGOs in Moldova CONTACT.
4. Analysis of financial results collected from beneficiaries of microgrants for the
years 2012-2013.

4. GRANT COMPETITION
-
33 participants:
12 persons from the district of Orhei,
11 persons from the district of Telenesti,
6 persons from the district of Rezina,
4 persons from the district of Soldanesti.
- Gender: 8 women and 25 men;
- Age: 20-45 years;
Most of the business projects were related to the agricultural field:
growing mushrooms, vegetables, walnuts, breeding sheep, cattle,
rabbits, etc.

5. 7 BENEFICIARIES OF MICROGRANTS
Grant size: Euro 9,900 - 15,000
1. Acquisition of wrought iron processing equipment (LLC “Zmuvinadorvic –
Metal,” village of Negureni, district of Telenesti);
2. Acquisition of a honey extracting mobile laboratory (LLC “Fagurasii de
Aur”, village of Sipca, district of Soldanesti);
3. Construction, setup and outfit of an agricultural hardware repair
workshop (CS “MCN-Curchi” LLC, village of Mitoc, district of Orhei);
4. Setup of a rabbit farm (LLC “Casa Iepurilor,” village of Mandresti, district
of Telenesti);
5. Development of a corn flour milling and packing business (CS “Venera”
LLC, village of Tahnauti, district of Rezina);
6. Acquisition of a hail net for a curant and jostaberry plantation (PF “Gaina
Petru Dinu,” village of Chitcanii Vechi, district of Telenesti);
7. Acquisition of a mobile electrotechnical laboratory on ETL-10 cables (LLC
“Erstelab,” town of Orhei.

6. EFFECTIVENESS
• All enterprises recorded an increase in the amount
of sales for 2013, generating gross profits. Only one
business did not also register net profits.
• None of the microgrant beneficiaries did not reach
the indicators set up in their submitted business
plans, although most of them were very close. This
situation is due, on one hand, to some delays in the
project implementation, and on the other hand, to
the underestimation of some risks.

7. FACTORS SUPPORTING THE SUCCESS OF
THE INITIATED BUSINESSES
(i)
existence of the business before the grant competition (5 out of the 7
businesses);
(ii) beneficiaries’ professional experience in the field they have launched their
businesses;
(iii) modern machinery/equipment purchased within the “Remittances Developing
Moldovan Communities” Project, helping beneficiaries to increase the amount
and quality of work;
(iv) hard work by microproject beneficiaries, sometimes over the standard 8
hours per day;
(v) identification of potential clients among individuals and legal entities;
(vi) reasonable prices of the finished products, including prices for some
additional services (transportation, installation, etc.);
(vii) trainings delivered within the project;
(viii) implementation of new technologies, etc.

8. EFFICIENCY
• Performance obtained over the short period of activity and
comparative assessment of financial results for 2012 and
2013, including data set up in the 2013 business plan and
the achieved results, point out to an efficient management
in 5 businesses, while in the case of the other 2 – there are
possibilities to enhance the management efficiency.
• Starting up and development of these businesses created 20
new jobs (13 permanent and 7 seasonal jobs), giving the
possibility to employees’ families to have a stable income
while working in Moldova.

9. IMPORTANCE OF FUNDED
MICROPROJECTS FOR THE
COMMUNITY
(i) Creation of new jobs and stable incomes in employees’ families;
(ii) Prevention of migration in some families, hence husbands can be
together with their wives, while parents can be together with their
children, including elimination of some eventual negative consequences
of migration (divorce, children without parental care due to
migration);
(iii) Contributions to the local budget, through the paid taxes and fees;
(iv) Examples of successful business persons influencing other members of
the community to invest their remittances and develop a business;
(v) Provision of consultation in the business field and to other interested
persons.

10. EFFECTS ON THE ENVIRONMENT
In developing their businesses, entrepreneurs
considered the particularities of the environment.
The started-up businesses do not cause any negative
consequences on the environment.
Moreover, some of them have rather beneficial effects
on the regional flora (e.g., SRL “Fagurasii de Aur”
provide pollination services for annual and multiannual
plantations, determining an increase in the productivity
of farming land).

11. GENDER ASPECTS
All businesses funded within the “Remittances
Developing Moldovan Communities” Project
are managed by men.
Moreover, even the majority of employees
are men, and the number of women working
in the 7 businesses is extremely low.

12. SUSTAINABILITY (I)
• The initiated/developed businesses are viable. The review of
financial data of beneficiary enterprises shows that all of them
recorded gross profits in 2013, which indicates to a stable financial
situation in terms of profit level growing indices.
• To initiate and develop these businesses, beneficiaries used their
own financial resources, benefited from resources provided by the
project, or applied for grants from local institutions and contracted
loans.
• Trainings provided within the project contributed to the
development of knowledge and abilities of beneficiaries and
enhanced the level of sustainability in short and medium term.

13. SUSTAINABILITY (II)
• The started-up businesses are welcome in Moldovan
communities and serve as a positive example at the locality
level for the initiation and development of new businesses.
• Results show that in terms of economic activity, part of
enterprises have increased their amount of activity, also
contributing to:
- creating the public resources fund at the local budget level,
- creating new jobs,
- increasing local consumption level.

14. DIFFICULTIES IN THE SUSTAINABILITY
OF BUSINESSES IN MEDIUM AND LONG
TERM
(i) reduced capacity to expand the activity;
(ii) high costs of financial sources available on the loan
market;
(iii) reduced profits and high fixed costs due to the
capacity of fixed assets engaged in the operational
activity that is not fully used;
(iv) insignificant production amounts, which is limiting
the competitiveness of products on the market from
the price perspective;
(v) limited financial possibilities for making own
investments.

15. CONCLUSIONS
•
•
•
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The Project “Remittances Developing Moldovan Communities,” at
the microgrant chapter, has succeded to:
initiate 2 businesses and further develop 5 existing businesses;
create 20 new jobs (13 permanent and 7 seasonal jobs at the
community level);
ensure stable incomes in 20 families and prevent migration in a
significant part of these families;
provide good practices on investing remittances to community
members and Moldovan society;
contributions through taxes and fees paid to the LPA budget;
provide consultations on starting up and developing similar
businesses.

16. RECOMENDATIONS
• To expand similar projects in all districts of Moldova, as
this will contribute to enhancing competitiveness;
• To also provide support to businesses managed by women;
• To support beneficiaries to enhance the sustainability of
their businesses in medium and long terms, by developing a
detailed strategy ensuring their medium- and long-term
profitability.