Voucher Scheme of Consultations and Trainings
A major objective of the project ”Institutional Support to the Ministry of Trade and Industry” during the years 2004-2006 has been the implementation of the pilot project “Voucher Scheme of Consultations and Trainings” in Kosova, which will help MTI to assist the access of potential developers and the existing SME-s at a higher quality service of trainings and consultations. The objective of the scheme is to stimulate the market for provision of business services development in Kosova.
In order to have a successfully and permanently operation, it will be necessary for a possible future of the Scheme to build a core of donors’ participation both private and public sector, whether local or international, as well as based on the pilot-project success, to proceed through deepening of main integration components of the Scheme, providers of the businesses-consultants and accredited trainers in the implementation and distribution of services for community’s benefits of SME-s in Kosova.
B. Voucher Scheme of Consultations and trainings
Introduction
The Ministry of Trade and Industry is dedicated to take over the leading key role in supporting the private sector development in Kosova, with the aim of creating the conditions for a long-term growth and sustainable development of the entrepreneurship sector.
“Voucher” Scheme of Consultations and Training (VSCT) is an instrument of Government policies that will be used by the MTI to fulfill the above mentioned objective.
The major objective of the “Institutional Support to the Ministry of Trade and Industry” project which is financed by EAR (managed by EAR and implemented by Gruppo Soges S.p.A.) is the MTI assistance in achieving of these goals.
What is “Voucher” Scheme of Consultations and Training?
“Voucher” scheme is a mechanism which enables the beneficiaries (in other words, anyone who is interested to start a business or who already is involved in business activities such as a developer, managing or employed) to have access in subsided services for business, usually a consultation or training.
The beneficiary is supplied with a voucher by the Scheme with which he can partially or completely pay services price. A key element of the Scheme is the freedom of choosing which the beneficiary is entitled from the viewpoint of choosing the training or consultation offered by any business service offerer (BSO) participant in the Scheme, which provides prevailing of market forces.
Justification for establishing a “Voucher” Scheme
“Voucher” Schemes are an innovatory way of over passing the shortcomings of the traditional way (led by the offer) of offering services for business development. The traditional approach, in general isolates the greatest part of the local service providers, including a large number from the private sector and NGO-s, and it can have an impeding effect on the development of a free market of business development services (BDS):
“Voucher” Scheme can over pass these problems by relocation of subsidies from governmental BSO or those established by the donors and putting them into the hands of the beneficiaries themselves in the form of convertible “vouchers”.
“Vouchers” enable the beneficiaries to choose the preferred BSO (including both the service providers from the private sector and NGO-s), thus starting up a process led by the demand which would stimulate the market of BDS (Business Development Services).
Objectives of “Voucher” Scheme in Kosovo
The Scheme aims to encourage individual developers and SME-s to make the most of the benefit from consultations and training in business skills, thus increasing the capacity and competition of the SME-s sector.
The Scheme is also designed to stimulate the service market businesses development services, by:
- Improving beneficiaries’ access to consultations and training;
- Encouraging the competition among BSO-s, in that case Availability and services quality would be improved;
- Establishing an information system which will inform (i) beneficiaries
about the availability of the providers and products, and (ii)
providers about the market needs.
Administration with “Voucher” Scheme
Ministry of Trade and Industry is in charge of executing the “Voucher” Scheme. The Scheme is managed by the Private Sector Development Department (PSDD) at the MTI, a Department which will be represented in the field by its five Regional Offices (RO-s).
A Consultative Committee follows the activities in the advising capacity, at the level of policies and strategy. A Supervising Group, which is also limited into an advising role, monitors operational activities and submits reports to the Consultative Committee and the Ministry.
During its elementary phase, the Scheme is jointly managed by:
The Department of PSD of the MTI;
The project of “Institutional Support to the Ministry of Trade and Industry”, financed by EAR.
After completion of the project of the “Institutional Support”, the Department of the Private sector will take full responsibility for the continuation of the “Voucher” scheme activities.
Activity of the “Voucher” Scheme?
“Vouchers” for consultations and/or training are issued by the Regional Offices (RO-s) of those applicants that will be qualified for participation in VSCT.
For certain categories of beneficiaries, “vouchers” cover all training expenses; whereas from other categories of beneficiaries a small contribution is required to be paid (which will go to the BSO-s).
Concerning the training, applicants for training can be individuals interested in gaining business skills, or they can be directors interested for their employees to attend the training. In the second case, the owner or the director can apply on behalf of his/her certain employees who would be supplied with “vouchers”. Furthermore, the beneficiary can choose any of the approved courses, which are offered to the participants by the BSO-s.
For consultation, the applicants may also be individuals or business owners/directors. Successful applicants will sign a contract with some of the participating BSO-s, to obtain a package of the approved consultation, which will be offered by an accredited advisor and preferred by them.
Upon the beginning of using the training and consultation services, the beneficiary submits the respective “vouchers” to the BSO, together with all other money contributions, which he is obliged to pay. The BSO further down will cash the “voucher” from the Scheme Administrators.
Geographical spread
The “Voucher” Advisory Scheme covers the whole geographical area of Kosovo administered by UNMIK.
Beneficiaries and Targeted Markets
The “Voucher” Advisory Scheme is open to all those who are interested to make a start in business as well as for those who already are involved in some business activity, with the exception of given categories below. The following sectors will be given priority by the Scheme whenever it is possible:
- production
- processing
- services
- construction
- agriculture (including farms)
- exporting companies
- undertaking women
- minority enclaves
These sectors are going to be particularly targeted during the Scheme promotional campaign and will always be considered for a preferred treatment.
Categories that are normally exempted from VSCT-s are:
- socially owned enterprises
- financial institutions (e.g. banks)
- company branches owned by foreigners
Offered services in the “Voucher” Scheme
Within the frame of the Scheme services are offered such as consultation as well as training. Training courses and consultation packages should be approved in advance by the Accreditation Panel.
Topics discussed should be in connection with starting and/or development of businesses and should be designed in that way so that they can improve business skills and to enable knowledge transfer to clients.
Monitoring
The monitoring role is triple– maintenance of quality standards, surveillance of performance and the prevention of abusing the Scheme. Supervising Group is responsible for the provision of a high monitoring standard.
Applied measures include regular auditions. The “vouchers” that can be tracked, clients’ questionnaires, attendance evidence and unexpected controlling visits.
Data provision
Scheme Administrators are creating a database, which contains information about the advisors and accredited trainers, consultation packages and training courses that have been approved, as well as gathered data during the monitoring process.
The public can have access into these data through Regional Offices and internet site, where they can learn about the BSO and different available products, whereas at the same place the BSO-s will have access into the data regarding the market needs.
How can business service providers be participants in the “Voucher” Scheme?
Any of the BSO-s who is registered as a juristic person can apply to be registered for participation in the Scheme, provided that for offering of services to use trainers and accredited advisors.
Registration forms for BSO-s (which can be obtained through electronic mail or from Regional Offices of MTI – see below) must be filled out and sent back again. It is required from the registered BSO-s to sign contracts with the Scheme Administrators.
How can advisors and trainers be accredited?
Application forms for accreditation (which can be obtained through electronic mail or from Regional Offices – see below) should be filled out and submitted to an Accrediting Panel.
A trainer or individual advisor, who is accredited, can directly sign an agreement with Administrators such as BSO-s (if he/she is registered as a juristic person, for example “individual business”), or can be hired or sub-contracted by a BSO, which has already signed the contract with the Administrators.
How will beneficiaries apply for “vouchers”?
The beneficiaries can obtain “vouchers” for consultation and/or training by applying at the Regional Office (see below the contact information). Applicants for consultations will have an interview which will define their qualification to benefit from the consultation, and will identify concrete fields about which they are seeking consultations.