Chuuk, Kosrae and Yap States; Federated States of Micronesia

United Nations Industrial Development Organization (UNIDO), with UNDP funds

The project aims at replicating the Micronesian Entrepreneur Development Centre (MEDC) project piloted for two years in Pohnpei State by creating similar institutions in Chuuk, Kosrae and Yap States for the promotion of private micro-, small and medium enterprises.
The MEDCs were created within the State Departments of Commerce and Industry. The staff received specialized training to organize business-training courses for island entrepreneurs and advise them on how to start and improve their businesses. Policy proposals conducive to small and medium enterprise development were formulated and submitted to the legislatures of Chuuk, Kosrae and Yap. The ultimate aim is to promote productive activities that can help people to sustain
and expand their sources of livelihood.

Human resource development (Chapter XIV of the Barbados Programme of Action)

• More than 80 small-scale business trainers and advisers from the MEDCs and other organizations, including banks and Chambers of Commerce, were instructed.
• More than 350 new businesses were started or expanded.
• After MEDC advised entrepreneurs on how to formulate business plans, banks granted them a total of 283 loans.
• The tax base has increased through the enterprise creation and expansion efforts of MEDC.
• A large number of potential and existing entrepreneurs benefited from MEDC training and advisory services in the three States.
• Policy proposals to create environments conducive for small and medium enterprises are being considered by the legislatures of the States.

In spite of problems and constraints that have been identified and continue to exist, small business development in all the States of the FSM continues to progress satisfactorily, although not yet at the desired pace and effectiveness required to address the development challenges of the country. The project and the Government seek to increase the participation of the private sector in development efforts.
Strategies to create sustainable national and local capacities have to be developed at an early stage.

Ms. Gabriele Ott
UNIDO
E-mail: gott@unido.org