Dadari, based in Tbilisi, is much more than just a toy company. Of the firm’s seven employees, three have learning disabilities. All of the firm’s products comply with EU standards.
The toys are made from solid wood and painted in organic colours. Dadari was able to expand its business after obtaining 25,000 Georgian Lari – just over €8,000 – from one of the banks.
The microfinance was made possible thanks to credit provided by the EU. This company’s experience is a great example of how microfinance can foster entrepreneurship.
In Georgia, the EU, through the European Investment Bank (EIB) and the EU4Business initiative, is working with local lenders to help very small businesses get the money they need to grow.
As part of its programme, the EIB made US$5 million (€4.4 million) available to one of the banks in Georgia.
Microfinance support to this Georgian toy producer was provided under the EU-funded Deep and Comprehensive Free Trade Area (DCFTA) Initiative East.
The loan guarantee programme is the centrepiece of the DCFTA Initiative East – funded by the EU under the EU4Business initiative – which aims to strengthen economic development in the countries which have signed an association agreement with the EU (Georgia, the Republic of Moldova and Ukraine) by providing targeted financial and technical support to SMEs in these three countries.