For more than two years, the Charity Fund “Believe in Yourself”, Astarta-Kyiv, with the financial support of the Federal Ministry for Economic Cooperation and Development of Germany (BMZ) and the German Development Bank DEG, has been implementing the educational grant project “Course to Independence” in Ukraine. It aims to help regional entrepreneurs to develop their agricultural production through grants for equipment and educational programs. As well the project has a fundamental social goal. Each winner must not only create new jobs and pay taxes but also contribute to the community’s food bank in which he works.
Viktor Ivanchyk, founder and CEO of Astarta, explained how exactly the project affected the development of communities and what else, except equipment, the winners received.
About the development of the communities’ economic ability in partnership
Astarta has always actively supported local communities, systematically implementing social impact projects. After all, our team is aware that strong and sustainable communities mean a more favourable environment for doing business. “We are linked to the villages and towns where our employees, their families and landlords live. And that is why we understood: there can be no successful business in an economically inactive community,” emphasizes Viktor Ivanchyk. Therefore, the Company focuses on developing and supporting community residents’ economic ability.
“Wings” became one of the first projects implemented by Astarta with the international organization Pact Ukraine and with the support of the Canadian government. It helped women in rural areas master and develop their own businesses. Already in 2022, Astarta, together with the Federal Ministry for Economic Cooperation and Development of Germany (BMZ), the German Development Bank DEG, and the Charity Fund “Believe in Yourself” launched the first wave of the project “Course to Independence,” which enables regional entrepreneurs to scale their agribusiness.
Within the project, in addition to equipment financing, entrepreneurs could gain knowledge in business management from MIM Business School and develop through networking and additional marketing opportunities. Due to current challenges, the final part of the second wave was the complex program “Mental health” for entrepreneurs, their family members and employees – working in full-scale war conditions requires financial and psychological resilience. It helped internally displaced entrepreneurs reopen their businesses and local entrepreneurs expand their production.
“We conducted business training for the competition winners and almost everyone who submitted applications. It helped to prepare more entrepreneurs for participating in future tenders and grant programs. We did the same during the “Mental health” program, which involved family members and teams,” said Viktor Ivanchyk. Within the project’s first wave, 60 businesses received funds to purchase equipment. One hundred ten winners were this year during the second wave.
In terms of the project, up to EUR20k grant was provided for equipment, determined by the entrepreneurs. The two project waves required at least three new jobs, conscientious tax payment, and food transfer to community food banks in the equivalent of 10% of the received grant.
“Being a responsible business, we adhere to the principles of sustainability, which include overcoming poverty and hunger, creating equal conditions for men’s and women’s development, and access to quality education,”- notes the CEO of Astarta. “However, it is important that the entrepreneurs we support or cooperate with also strictly follow these principles. And on this basis, we develop a trusting partnership with communities.” The partnership is a key resource for implementing large-scale projects, says Viktor Ivanchyk.
“Without partners, a successful project is impossible,” – he adds. “For us, the experience of cooperation with German partners is very valuable because everyone is focused on maximum results and efficiency. The highly professional DEG Impulse team ensures constant communication with the German GovernmentGovernment and administers the project. We constantly keep in touch. Everything is transparent and structured. We are extremely grateful to our German partners for such valuable cooperation.”
About the impact on community development
Several years ago, E&Y conducted a comprehensive assessment of the impact of Astarta on Ukraine’s economic development. Considering investments, tax payments, employment, production, and social projects, the Company’s contribution to the economy of Ukraine reached USD2.2bn (today it is almost USD3bn).
“The figures impressed us so much that implementing the project “Course to Independence” we also asked ourselves: what economic impact does it have on communities?” – explains Viktor Ivanchyk. We invited The Ruban Litvinova Social Impact Advisory agency, which specializes in developing social impact strategies and measuring social value to assess the project’s effectiveness. So, the specialists calculated that the social return of EUR1 during the first wave was EUR4.66, and during the second, it was EUR6.34. This index shows how the project improved the economic well-being of the entrepreneurs’ families, the community in general, and the educational and cultural environment.
“The entrepreneurs of the second wave communicated more openly with society. On their example, they proved to their fellow citizens that they could repeat their own successful story and strengthen the communities where they live and work,” says the CEO of Astarta. “Thus, by investing EUR 4 million in the project, we received a social return of over EUR 23 million.” As the study demonstrates, tangible resources are not the only incentive for project participants. Instead, they also value the feeling of success, the confidence from the gained knowledge, and the motivation from their contribution to the development of the community when positive changes in the environment are happening in their own eyes.
Based on Forbes Ukraine materials
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