Keren Shemesh ("Sunbeam")
A project for young businessmen (YBI) established by the Edmund J. Safra Foundation and the Rashi Fund in order to assist young entrepreneurs to reach financial independence.
Project's aim: encouraging young entrepreneurs to establish new businesses and thus help reducing the unemployment rates among the young population.
Target Audience: Young people aged 20 through 33 outside the labor market or those interested in opening their own business but lack experience and funding.
Process: the applicant will go through a comprehensive training program following milestones that include the following:
- 1) Introductory meeting: a primary meeting, coordination of expectations, and first impressions of the business idea. If the entrepreneur is willing to go on with the process, he/she will have to go through the primary assessment at Bank Otsar Hahayal through the Koret Fund (KIEDF). The cost of the meeting: 50 NIS.
- 2) Meeting with the Keren Shemesh Chief Executive Officer to analyze the business idea and adjust the entrepreneur to the fund's requirements. The cost of the meeting: free
- 3) Feasibility study: assessment of the business idea from the point of view of production, management, marketing and finances. Primary analysis of the needed formal certifications. The cost: 200 NIS.
- 4) Preparation of the business plan: a business plan is then prepared by a business adviser. The plan includes a deeper analysis of the idea and is divided into several parts: a general description, description of the product/service, the business opportunity, business goals, status, kernels of the financial implications, required capital. The cost: 350 NIS.
- 5) Discussion of the plan at the Keren Shemesh committee: the committee will discuss the business plan and the entrepreneurs behind it and decide whether to approve the plan and to grant the loan.
- 6) Business Accompaniment: the entrepreneur is provided with a business adviser who assists him/her to acquire administrative, marketing and financial tools which will permit the entrepreneur to open and establish his/her business. The accompaniment's duration is 28 hours. The cost: 1400 NIS for the whole accompaniment.
- 7) Business management course: the course's goal is to provide the entrepreneur with primary tools in entrepreneurship, marketing, sales, finances, taxation institutes, legal aspects, business plan. Studies take place at the Mati classroom. The cost of the course: 200 NIS
- 8) Monitoring: There is also a possibility to get assistance from a manager in the relevant business field. The cost: free
Terms of the loan:
Loan total: | Up to 50,000 NIS. Possibility for an exception till 90,000 NIS. |
Period: | 36 months (above 50,000 NIS - possible up to 60 months) |
Grace period: | Possibility for lowered payments during the first 6 months |
Interest: | The loan is granted in NIS with no interest |
Guarantees: | 2 guarantors who have worked at their current job for more than a year, salary above 3,000 NIS a month. |
Equity: | 15% of the investment |
Restrictions: | Client with a limited bank account will not be able to participate in the project. |
IDBelieve - Opens May 2008
The vision: to help ameliorate the employment strength of the state by assisting young entrepreneurs to establish and manage their businesses. Under the IDBelieve program senior managers from the IDB Team will train voluntarily every one of the selected entrepreneurs and in addition loans will be granted on favorable terms.
Target Audience for the program: Young people aged 20-35 who have the will and come with a definite idea for their business, in any field. Graduates of the Business Management course at Mati during the last year or those who have opened a business in the last year or two and still need guiding.
The process:
1) Introductory meeting, coordination of expectations, first impressions of the business idea, interview with Mati's general manager. The cost: 50 NIS.
2) Evaluation workshops at the Adam Milo Institute: in order to assess the entrepreneur and match him/her with a suitable business activity. Takes a full day at the evaluation center. The cost: free.
3) Entrepreneurship workshop and preparation of the business plan: the workshop provides the entrepreneur with the primary tools in entrepreneurship, marketing, sales, finances, taxation institutions, legal aspects. In addition, the students are asked to prepare the business plan for the project they want to realize. Duration: 60 hours, in the form of two weekly meetings, 4 academic hours each. The cost: 250 NIS.
4) Feasibility Study: assessment of the business idea from the point of view of production, management, marketing and finances. Primary analysis of the needed formal certifications. The cost: 200 NIS.
5) Preparation of the business plan: a business plan is then prepared by a business adviser. The plan includes a deeper analysis of the idea and is divided into several parts: a general description, description of the product/service, the business opportunity, business goals, status, kernels of the financial implications, required capital. The cost: 350 NIS.
- 6) Discussion of the plan at the foundation committee: the committee will discuss the business plan and the entrepreneurs behind it and decide whether to approve the plan and to grant the loan.
- 7) Business Accompaniment: the entrepreneur is provided with a business adviser - a senior manager from the IDB group - to assist him/her in acquiring administrative, marketing and financial tools which will permit the entrepreneur to establish his/her business. The accompaniment lasts up to 3 years. The cost: free.
