SMEs Development – Outreach, Logistics & Management Services for ILO SIYB and FE Trainings, Coaching and Mentoring At International Labour Organization

The Promotion of the Development of SMEs Project in Iraq overview

Iraq, including the Kurdistan Region (KRI), has faced a series of challenges in recent years. These include armed conflict, the rise of ISIL, and economic shocks like the COVID-19 pandemic and oil price fluctuations. These factors have had a significant impact on the labour market, enterprise growth, and the financial sector. Despite efforts to promote small and medium-sized enterprises (SMEs) and financial inclusion, access to finance remains a major constraint for SMEs. Regulatory and operational hurdles create barriers, limiting the SMEs’ ability to secure loans and grow their businesses.

According to the International Finance Corporation (IFC), the severe financing gap faced by Iraqi SMEs is underscored by estimates suggesting a funding shortfall of around USD 6 billion. This is exacerbated by the fact that only 8% of SMEs currently have a business bank account. High unemployment rates are another consequence of this limited access to finance, particularly among women and youth. Regional disparities further exacerbate this issue of limited access to finance. These factors create a critical need for innovative solutions to unlock the potential of Iraq’s SME sector. A major obstacle hindering the growth of SMEs in Iraq is the imposition of stringent guarantee requirements, often reaching up to 125% of the loan value. These burdensome requirements deter SMEs from accessing finance and limit their ability to expand their businesses. Additionally, a lack of risk appetite among financial institutions and the ICBG has contributed to the limited outreach and uptake of credit guarantees.

To address these challenges, the International Labour Organization (ILO), funded by the Kreditanstalt für Wiederaufbau (KfW), is implementing The Promotion of the Development of SMEs Project in Iraq. The project aims to provide SMEs and start-ups in Iraq with sustainable access to financial services in order to improve job creation. This is to be achieved through credit guarantees for commercial banks that provide loans to SMEs. Capacity building of the national project partners, in particular the Iraqi Company for Bank Guarantees (ICBG) and the participating financial institutions, is a first step of the project, followed by an injection of funds into the ICBG. The overall objective is to contribute to the development of the Iraqi private sector by increasing the productivity of SMEs and thus their job creation potential. The project structure comprises three components that are considered necessary to make a significant contribution to the financial inclusion of SMEs in Iraq:

SME window established by selected private Participating Financial Institutions ( PFIs) through their own SME capital funds: PFIs will start lending to SMEs based on market conditions using their own capital funds. In addition, special sub-windows are planned targeting start-ups, women and/or other marginalized groups.
An effective loan guarantee scheme: This is crucial to overcome the obstacles faced by SMEs in obtaining acceptable collateral; a dedicated guarantee window will be established to enable ICBG to provide the necessary guarantees for the loans disbursed through the selected PFIs.
Technical assistance to strengthen the capacity of PFIs, ICBG and SMEs: The ILO will establish a comprehensive capacity building programme for its partners to ensure the improvement of their skills and capacity.

For ICBG: Based on the capacity analysis of ICBG, a technical assistance programme is being developed to improve the institution and capacity building for quality and efficient guarantee operations.
For the financial institutions: Strengthen the governance structure (board and management) to promote SME lending, improve staff capacity in SME assessment and cash flow analysis tools as well as customer service, debt collection, etc. Based on the analysis of each PFI’s capacity, the exact TA package will be determined.
For SMEs: Providing financial and business knowledge to better manage their businesses but also their relationships with banks.
1. Overview of ILO’s SIYB and FE trainings

Iraqi entrepreneurs face significant challenges in business management, financial literacy, and access to finance. Many seek to improve their business operations, but young Iraqis often lack quality training and coaching to develop comprehensive business plans. The widespread distrust in the formal banking system means that most micro, small, and medium enterprises (MSMEs) require basic financial literacy.

To address these challenges, the International Labour Organization (ILO) has developed globally recognized training tools, including the “Start and Improve Your Business (SIYB)” training package and the “Financial Education (FE)” curricula. These resources have been translated and adapted to the Iraqi context.

To date, the ILO has conducted several ToTs for these training programs, resulting in a pool of at least 100 certified trainers who have completed the SIYB and FE courses in Iraq. This comprehensive approach aims to empower Iraqi entrepreneurs with the knowledge and tools needed to create sustainable and environmentally responsible businesses.

The Start and Improve Your Business (SIYB) training programme is designed to support the development of MSMEs through comprehensive entrepreneurship training. It includes detailed Trainer Guides that provide trainers with essential background information on entrepreneurship training, the SIYB tools, participatory training techniques, and the necessary monitoring and evaluation tools to ensure proper implementation according to set standards.

The training packages within the SIYB programme are tailored to different stages of business development.

The Generate Your Business Idea (GYB) course is aimed at individuals who want to start a business but are unsure of the business idea to pursue. This course lasts approximately 12 training hours over two to three days.
The Start Your Business (SYB) course targets potential entrepreneurs with a feasible business idea for their own small enterprise. The SYB course spans 40 training hours, typically delivered over six days, using the SYB manual and business plan booklet. For owners and managers of existing small enterprises.
The Improve Your Business (IYB) programme is designed to help sustain their businesses, increase sales, and reduce costs. The IYB programme is supported by six manuals covering marketing, costing, buying and stock control, record keeping, planning, and people and productivity, with each manual requiring 12 training hours over two to three days.

This structured approach equips entrepreneurs with the knowledge and skills needed to successfully start and grow their businesses, fostering a more robust MSME sector.

Financial Education (FE) is crucial for the development of SMEs, ensuring that individuals, regardless of their income or social status, can access and effectively use financial services. Since 2006, the ILO Global Programme on Financial Education has supported over 35 interventions worldwide, helping disadvantaged and underserved populations make informed financial decisions and improve their financial behavior. The programme operates at three levels: at the Macro Level, it provides technical assistance to national governments in developing financial education strategies and tailoring programmes to reach vulnerable groups; at the Meso Level, it assists national partners and multipliers in implementing and monitoring financial education plans, promoting the use of the ILO Financial Education curriculum in local training; and at the Micro Level, it supports local implementation of training, expanding outreach, and encourages ILO certified trainers to use innovative methods like mobile platforms, videos, SMS, and apps to share the curriculum.

This comprehensive approach aims to build capacity and foster informed financial choices across various levels of society, directly benefiting SMEs. By equipping entrepreneurs with the knowledge and tools needed to manage their finances effectively, the programme helps to create a more stable and sustainable business environment. This, in turn, enhances the potential for growth and success among MSMEs, contributing to broader economic development and improved livelihoods for communities.

Main objectives of the consultancy:

The work to be carried out under these terms of reference forms is part of the ILO’s support to promote the development of SMEs in Iraq and to increase the financial literacy for the MSMEs/startups, especially women and youth, to engage in the labour market force.

The main objective of the current term of reference is to procure a local consultancy entity/incubator to provide Outreach, Logistics & Management Services and Coaching & Mentoring for ILO SIYB and FE trainings. The SOW will take place in the period from September to December 2025 for the International Labour Organization “Promoting the Development of SMEs Project in Iraq” project with financial support from the German Federal Ministry for Economic Cooperation and Development (BMZ) and under the leadership of the Kreditanstalt für Wiederaufbau (KfW).

The overall objective is to improve the business management and financial literacy abilities for small and medium enterprises as well as startups in Iraq focusing on youth and women. This can be done through facilitating, in close coordination with the ILO project team and ILO certified trainers, one training on Start and Improve Your Business SIYB and another one training on Financial Education FE. The outcome of those trainings is qualifying end beneficiaries from SIYB and other beneficiaries from FE for Coaching and Counselling services that would eventually lead to developing bankable projects.

Scope of the work to be done

ILO is seeking for a competent local consultancy entity/incubator to provide outreach, logistical, coaching and mentoring, and managerial support for the training workshops on Start and Improve Your Business SIYB Package and Financial Education FE curricula for The Promotion of the Development of SMEs Project in Iraq.

Outreach, Marketing and Screening of Trainees/Beneficiaries

The local consulting entity, in close coordination with the ILO Project Team and ILO certified trainers (or under certification), shall facilitate the outreach promotion of the training applications, collection and revision of applications, and screening of the trainees/beneficiaries of SIYB and FE trainings according to ILO criteria. The announcement and promotion of the training shall target both PFIs’ beneficiaries and potential beneficiaries. Announcement and training promotion can be done through social media, fliers, social gatherings, individual meetings, etc. Selection shall be done jointly by the local consulting entity, in close coordination with the ILO Project Team and ILO certified trainers, by capturing basic information of the potential beneficiaries. The basic information captured about the potential beneficiaries shall include the type of business (existing or startup), location, gender, literacy level, bank account ownership or not, name of bank, etc. A detailed list or the required information will be discussed and approved by the ILO project team. This information can be captured either electronically by creating a link or physically by writing/recording. The Local Consulting Entity prepares biweekly reports that include the outreach process including the targeted groups, marketing tools used, geographical targeted areas and a database of the potential trainees/beneficiaries to be discussed and approved by the ILO Project Team and ILO certified trainers.

Hiring ILO Certified, or Under Certification, Trainers for SIYB and FE Trainings in Close Coordination with the Project Team

The local consultancy entity/ incubator shall, in liaison with the ILO project team, hires 2 ILO certified trainers (or under certification) who will conduct and facilitate the trainings. There shall be a separate trainer for SIYB and another one for FE training. The trainers shall be selected in close coordination with the ILO Project Team following the below criteria:

The trainers must be an ILO certified trainer in SIYB/FE or candidate trainers for certification.
Be knowledgeable in the local languages where the training will be conducted.
The trainers will facilitate and lead the training followed by coaching and mentoring activities.
Be based in the area/region where the training will be conducted or willing to travel? (No Travel Compensation).
Trainers’ fees shall not exceed the threshold of $ 200 per day for every training facilitated.
1. Provide Logistical and Managerial Support for the Trainings

The local consultancy entity is expected to provide the below logistical and management support:

One training on Start and Improve Your Business (SIYB) in Baghdad
One training on Financial Education (FE) in Baghdad:

The logistical and management support includes:

Training venue for each training
Provide lunch and coffee break refreshment – for 26 participants (25 trainees and 1 trainer) for each training day.
Stationery and equipment – Provide the following for every training workshop:
1. Trainees’ notebooks, pens, flip charts, markers, projectors, presentation materials printouts, etc. The stationery and equipment shall be provided by the consulting agency (as part of the fees) and shall not be quoted in the BoQ – Annex 2.
Trainers’ facilitation – Every trainer shall be paid $200 for each training facilitated per day.
Printing and spiral binding of the following materials.
1. Trainer’s manual of 500 pages for FE and 500 pages for SIYB
2. Trainees’ booklet of 500 pages for FE and 500 pages for SIYB
Multimedia Coverage Production of professional videos:
- Photography coverage and production of a professional training coverage video for both SIYB & FE separately
The Consultancy entity to be present in all FE and SIYB trainings session.

Deliverables, Timeframe and Remuneration Weights

The consultancy entity shall be expected to fulfil the required tasks and execute the deliverables in the given timeframe, and payment shall be made in accordance with the given percentages:

Deliverable #

Description

Timeframe

Payment %

Drafting an Outreach and Marketing Campaign Plan, screen applications Plan to select 25 candidate beneficiaries for FE training and 25 for SIYB training. A comprehensive drafted plan and report to be submitted to the satisfaction of the ILO

September – October 2025

25% of the contract amount, to processed by 30 days after submission and clearance of the deliverable #1

Conducting the Outreach and Marketing Campaign, Screening, Selection candidate in close coordination with the ILO project team. A comprehensive report to be submitted to the satisfaction of the ILO.

October – November 2025

25% of the contract amount, to processed by 30 days after submission and clearance of the deliverable #2

Provide logistics and management support for 2 SIYB/FE Trainings in Baghdad. A comprehensive report to be submitted to the satisfaction of the ILO 5 days after the completion of each training.

November – December 2025

35% of the contract amount, to processed by 30 days after submission and clearance of the deliverable #3

Comprehensive final report including database for application and screening process, trainings attendances, challenges and opportunities.

December 2025 – February 2026

15% of the contract amount, to processed by 30 days after submission and clearance of the deliverable #4

Payment Notice: The payments will be disbursed upon completion of the delivery and submission of the corresponding documentation and invoices to the satisfaction and clearance of the ILO (International Labour Organization).

5. Qualifications and Requirements

The contract shall only be awarded to a qualified consultancy entity matching the following qualifications, experience and competencies

5.1 Institutional Qualifications

Be a legally registered entity in Iraq with a valid business license.
Demonstrated experience (minimum 3 years) in implementing entrepreneurship development programs, business incubation, or similar capacity-building initiatives.
Proven track record in managing outreach, training logistics, and coordination with international organizations or development agencies.
Capacity to operate in Baghdad and surrounding areas, with a functional office and staff presence.

5.2 Technical and Operational Capacity

Experience in organizing and managing training workshops, including outreach, participant screening, and logistical arrangements.
Ability to provide professional multimedia coverage, including photography and video production of training sessions.

5.3 Human Resources Requirements

A dedicated project coordinator with at least 3 years of experience in managing training or development projects.
Staff with strong communication skills in Arabic and/or Kurdish, and familiarity with the local context and target groups.

5.4 Financial and Administrative Requirements

Ability to manage project funds transparently and efficiently, with sound financial reporting systems.
Capacity to provide logistical support (e.g., stationery, venue, refreshments) as part of the service package.

5.5 Compliance and Reporting

Commitment to ILO’s principles of non-discrimination, gender equality, and decent work.
Ability to submit biweekly progress reports detailing outreach efforts, selection processes, and training implementation.
Willingness to coordinate closely with the ILO Project Team and respond to feedback in a timely and professional manner.

6. Reporting and Monitoring & Evaluation

The consultancy entity is responsible for establishing and implementing a robust reporting mechanism, as well as a comprehensive monitoring and evaluation (M&E) system (following ILO’s standards), to effectively capture all necessary documentation and information related to the training workshops from both trainees and trainers.

To ensure consistency and facilitate ILO oversight, the consultant shall develop templates for all forms and data collection instruments to be utilized throughout this assignment and must obtain prior written approval from the ILO for these templates before their implementation.

This includes, but is not limited to, attendance sheets, evaluation forms, and any other data collection tools. The collected data needs to be properly matrixed and analysed based on, yet not limited to, demographics, training type (FE or SIYB), number of trainers, and pre/post-tests (if applicable, this should be explicitly mentioned elsewhere in the TOR). Additionally, all collected data and documents will be submitted to the project team for approval according to the schedule outlined below.

Documents

Time for submission

Excel List of final selected/enrolled trainees

Immediately after SMEs selection

List of all trainers selected to conduct trainings per month and copy of training agenda of each course

one week before course kick off date

Signed daily attendance sheet for trainees/trainers using the template provided by the ILO

one week after course completion

Copies of ID for each training course participant that are aligned with the signed attendance sheet

one week after course completion

Excel List of each final course participants who completed the training –aligned with signed attendance sheet

one week after course completion

Professional Photos taken of training courses and trainees

one week after course completion

Excel List of selected case studies by trainers for coaching and follow up

2 weeks after course completion

Copies of training evaluation forms and reports prepared by the trainers

2 weeks after course completion

7. Selection and Evaluation Criteria

Only proposals received from Consultancy entities including Incubators, Logistics and Management companies operating registered in Iraq will be considered.
The ILO invites technical and financial proposals from qualified entities who have relevant experience in delivering similar services as mentioned in this Terms of Reference (TOR). Technically responsive and financially viable entity will be chosen following ILO’s procurement rules/procedures on evaluation by ILO team of professionals.
Cumulative Evaluation Method will be used for this procurement exercise and contract will be awarded to highest scorer(s) in cumulative analysis considering Technical and Financial Evaluation:
1. Technical Proposal (60%)

The Technical proposal will contain 60% weight, whereas Technical Evaluation passing score is 40%. Any applying entity that scores less than 40% in Technical Evaluation shall not be considered for financial evaluation. The technical proposal is expected to be submitted by the bidders in the following structure:

Executive Summary: Entity’s profile demonstrating the history and the required capacity and local presence/activities in summarizing past experience and works undertaken in providing trainings. (Max 3 pages)
Detailed description of relevant past works and assignments related to start-up development, financial education, if any. (Max 3 pages)
Summary of the proposed methodology, implementation plan and M&E. (Max 5 pages)
Detailed work plan with a timetable related to the different activities. (Max 5 pages)
Detailed team matrix table including CVs of Team leader and staff involved in the project implementation demonstrating their capacity to conduct the assignment and Arabic and English Proficiency. (Max 3 pages)
At least three past projects references

The Technical proposals will be evaluated in accordance with the criteria stated below:

Description of Technical Evaluation

Score

An entity’s profile highlights its expertise, local presence, and history of successfully delivering training programs.

15%

An overview of past works and assignments showcasing expertise in SMEs, start-up development and financial education.

Proposed methodology, implementation and M&E plans

15%

Work plan and a timetable

10%

Human Resources proposed for the assignment (qualification and experience) + detailed CV

10%

Previous projects references

60%

Clarity of the proposal, provision of all required documentation, and innovative delivery are considered as a cross-cutting measurement criterion.

Financial Proposal (40%)

The financial proposal will contain 40% weight. The bidders shall complete the financial proposal template using (circulated with the announcement for bidding Annex – A) an excel sheet and submit both the Excel version and the PDF version signed and stamped. The financial proposal shall demonstrate:

Logistics costs (workshops venue, catering …)
Outreach Campaign costs (social media outreach, compiling lists and drafting reports …)
Activities costs (trainers fees, video production, stationery …)

8. Reporting and Supervision

The Consulting entity that will be carrying out all activities within the scope of this Terms of Reference will be reporting to and supervised by the project CTA (Chief Technical Advisor), including Environmental and Social Safeguards (ESG) Coordinator of the Promotion of the Development of the SMEs Project in Iraq.

Deliverables shall be submitted in line with the requirements explained in this TOR within the deadlines. The deliverables are subject to the approval of the ILO.

UNGM Link: https://www.ungm.org/Public/Notice/275708

How to apply

Dear Applicant if you want to apply for the ToR, please follow the below link, as follow:

Link: https://www.ungm.org/Public/Notice/275708