UN Supports Micro, Small, and Medium Enterprises in Lebanon: A Matchmaker by excellence!

“Supporting small businesses in Lebanon is the only way to help Lebanon recover from its crisis. It will help the country be self-sufficient, more productive, and retain its qualified workforce; a compelling need to stop the excessive brain drain” says Joanna Gerges, 32, in a voice filled with enthusiasm and hope for a brighter future in Lebanon.

Over the past four years, Joanna has been spending most of her time in her winery “Chateau Cana” in Ras El Harf, Mount Lebanon, founded by her father 22 years ago.

For Joanna, “Chateau Cana” is not only a family business that she runs for profit. The winery is a purposeful project for which she left her rewarding full-time job in order to rescue it from bankruptcy. “When I realized that my family business was not doing well, I resigned from my job and devoted my time to the winery. I strongly believed in the potential this business can have in adding a name to Lebanon’s winemaking history and creating job opportunities for hundreds of people in neighboring villages” Joanna said. In fact, her family has been supporting 50 families in the 30 Lebanese villages by providing farmers with vine seedlings, then buying from them the crops to protect them from incurring any losses.

Despite Joanna’s persistence and fervent hope for growth, she struggled to find international buyers for her local wine. “It’s very hard to sustain a business when you don’t have opportunities to connect and meet with international importers,” she explained. Joanna’s challenges were compounded by the country’s severe financial crisis resulting in a dramatic devaluation of the local currency, making access to finance strenuous and the import of raw materials exorbitant for her and other entrepreneurs.

During the time when Joanna was searching for gainful opportunities to sustain her business, the United Nations Development Programme (UNDP) and the UN Industrial Development Organization (UNIDO) in Lebanon organized in partnership with Berytech, the “Business-To-Business (B2B) Matchmaking” event on the Agri-Food Innovation Day (AFID) that spanned over three consecutive days (22-24 March 2022).

The event aimed to create business opportunities for Micro, Small and Medium Enterprises (MSMEs) in Lebanon by creating conducive platforms that connect Lebanese entrepreneurs with international buyers and help them reach international markets.

The B2B Matchmaking event falls under the MESO level, one of three intertwined levels of a three-year joint UN initiative titled “Productive Sector Development Programme” (PSDP). The programme which is worth USD 7.4 million, is funded by the Lebanon Recovery Fund through the generous contribution of the Government of Canada, and implemented by six UN agencies, namely UNIDO, FAO, UNDP, ILO, UN Women, and UNICEF and led by the UN Resident Coordinator Office (RCO).

“The Productive Sectors Development Programme came at a crucial moment in Lebanon’s history. Canada’s development programme is driven by four key principles: being people-centered, reform-oriented, collaboration-driven, and results-focused. This initiative is a great demonstration of those principles in action,” said Mr. Jamie Schnurr, Head of Cooperation at the Government of Canada in Lebanon. “Today’s event [B2B Matchmaking Event] is an example of the results expected,” he added at the event.

 Accessing international markets and diversifying clients base are nowadays every agri-food company’s top priority in Lebanon, and their last lifeline to remain afloat amid the unfolding economic crisis. This is exactly what the PSDP has offered so far under its MESO component, which mainly aims at improving access of women and men-led MSMEs to international markets.

For Rose Bechara, founder of Darmmess, a local producer of extra virgin olive oil, the event was “a grace from heaven, sparing us time, energy and money.”

Watch Rose’s testimonial video and learn how she was able to meet her ‘dream’ buyer from Lafayette Gourmet.

Ramshad Hassan Pandi, import Manager at Lulu Saudi Hypermarkets in Saudi Arabia, was one of the international buyers present at the B2B Matchmaking event, searching for new untapped entrepreneurs and looking into innovative ways to scale up his collaboration with Lebanese businesses. “We see a lot of export potential in Lebanon’s agri-food businesses. They offer new products that we want to add to our portfolios such as goat cheese, garlic sauces, and honey.” Ramshad was eventually able to strike a deal with one of the young entrepreneurs at the UN-Berytech co-organized event.

BOOSTING LEBANESE BUSINESSES’ EXPORT SKILLS

The “B2B Matchmaking” event is not the only activity under the PSDP. Maha, a producer, and manufacturer of naturally-made local nut spreads called “Spreadly”, has registered at the Lebanon Export Academy.

The Academy aims at equipping women and men-led MSMEs and cooperatives in Lebanon with the required know-how and export skills to scale up their operational work and foster their export capacities. Through the Academy, a total of 70 MSMEs in Lebanon were trained on a myriad of export-related topics, from business plan development to product pitching, marketing and branding, pricing, and eligibility criteria.

ACHIEVING THE SDGs

The PSDP is also one of the UN initiatives in Lebanon that contributes to the achievement of the Global Goals and the Agenda 2030 for Sustainable Development. Maha explains this in her own words, showing great pride in her business: “By recycling our waste and encouraging our customers to return the jars in exchange for a discount, we are encouraging sustainable production and consumption habits.” She adds: “We are also partnering with young talents and forging partnerships with local businesses, hence contributing to Goals 8 and 17 on decent work and partnerships respectively.”

 Despite doing well, Maha believes that her business can become even better with the guidance and training she will receive at the Academy. “I am eager to acquire the knowledge and skills offered by the UN through this Academy, which will undoubtedly open up new opportunities to export my products.”

AN ONLINE EXPORT PORTAL: A ONE-STOP SHOP

Lebanon’s entrepreneurs need further support to survive the multi-faceted crisis and help Lebanon recover fast and build forward better. As such, and under the PSDP project, the UN partnered with the Investment Development Authority of Lebanon (IDAL) to create an Export portal that acts as a ‘One Stop Shop’ for international buyers wishing to import Lebanese products and connect with local Lebanese producers.

Local companies also benefit from the portal’s market intelligence reports that highlight important information crucial to boosting export to promising markets. This portal is expected to increase access to information in export and import procedures and promote Lebanon’s export capacities, especially for women-led businesses to enable them to sell their products internationally.

“Sometimes all you need is a small push to reach the potential success you have always envisioned” says Joanna with a wide smile on her face.