Scope of Work and Required Services

The Service Provider will be responsible for the following:

1. Field Visits and SME Assessments

• Conduct field visits to targeted SMEs in Damascus and Rural Damascus.
• Conduct structured interviews with SME owners or managers.
• Explain the purpose of the assessment and collect the required information.

2. SME Operational and Financial Assessment

Assess the current status of each SME in terms of:

• Level of formalization/informality.
• Bookkeeping and financial records.
• Financial management practices.
• Cash-flow management capacity.
• Digital readiness.
• Capacity and readiness to access finance.

3. Compliance and Documentation Assessment

• Identify gaps related to business registration and licensing.
• Assess the SME's status regarding taxation, reporting, and required documentation.
• Identify the documents and procedures that each SME needs to complete to move toward greater formalization.

4. Application of the SME Readiness Assessment Tool

• Apply the project's approved SME readiness assessment framework consistently across all assessed enterprises.
• Calculate and document the readiness score for each SME based on the approved criteria.

5. SME Classification

Classify SMEs according to:

• Sector.
• Size.
• Level of formalization.
• Financial capacity.
• Digital readiness.
• Readiness to access finance.

6. Assessment of Financing Eligibility

• Assess the extent to which SMEs meet relevant government requirements.
• Conduct an initial assessment of their alignment with Microfinance Institution (MFI) financing criteria.
• Identify gaps that may prevent SMEs from accessing finance.

7. Baseline Database Management

• Enter all collected information into the project's baseline database.
• Update SME profiles and ensure that all required information is complete.
• Conduct data quality checks and verification.
• Follow up on incomplete, unclear, or inconsistent information.

8. Follow-up and Coordination

• Document non-responsive SMEs or cases where the assessment cannot be completed.
• Coordinate with the Project Manager regarding replacement of non-responsive cases, where necessary.
• Coordinate regularly with the Project Manager and relevant technical staff.
• Contribute to the preparation of the SME baseline assessment report.

Coordination with Government Authorities and Microfinance Institutions

In coordination with the Project Manager, the Consultant will communicate and meet with relevant government authorities and financial institutions to understand current requirements for SME formalization, compliance, and access to finance, including:

• Government and regulatory authorities: The Small and Medium Enterprise Development Authority, Ministry of Economy and Industry, Ministry of Finance and relevant tax authorities, Ministry of Social Affairs and Labour, Chambers of Commerce and Industry, and relevant local authorities in Damascus and Rural Damascus.
• Microfinance and financial institutions: Microfinance institutions and banks providing financing to micro and small enterprises, including institutions affiliated with the Aga Khan network and other relevant financial service providers.

The Consultant will prepare two concise reports:

1. Government Requirements Report: Outlining requirements for SME registration, licensing, compliance, taxation, and the key documents and procedures required for businesses to move toward greater formalization.
2. Microfinance Requirements Report: Outlining financing eligibility criteria, required documentation, available financing products, application requirements, and key gaps that may prevent SMEs from accessing finance.

Required Deliverables