SMALL-SCALE ENTERPRISE PRODUCT

Established in the West Bank and Gaza Strip in 1991, the revolving loan fund providing credit to small-scale enterprises is the oldest of the Agency's microenterprise funds.

As of 31 May 2002, the SSE products had supported 1,147 businesses with loans valued at US$16.83 million. The loans ranged from US$1,000 to US$75,000, with an average loan of just under US$15,000.

Since the start of the product, over 2,842 loan applications valued at more than US$53.8 million were submitted. SSE loans were extended to 33 percent of the applicants.

The businesses supported are in a variety of fields: medical and domestic services, printing and publishing, automotive repair, agricultural services, fishing, the manufacture of wood, plastic, rubber and metal products, electrical and electronic equipment, construction, textiles, leather and clothing. Approximately 59 percent of the loans awarded went to businesses in the small industry sector, 40 percent to businesses in the service sector and one percent to the agricultural sector.

In assisting the development of small-scale enterprises, UNRWA's Microfinance and Microenterprise programme aims to:

  • Promote sustainable job-creation. One new, sustainable job can be created for approximately every US$8,000 invested.

  • Ensure that the value created in the local economy stimulates further business activity.

  • Encourage import-substitution. The main competitors of local businesses are Israeli firms, which in the past enjoyed unhindered access to the Palestinian market. In order to encourage economic development and growth in the Palestinian economy, assistance must be given to those businesses which can successfully compete with Israeli producers, despite the absence of government supports, inadequate infrastructure and limited access to foreign markets.

  • Encourage export-oriented manufacturing and services with foreign income-earning capacity.

  • Make credit available to entrepreneurs among both the refugee and resident populations of the West Bank and Gaza Strip.