2Nd Danube Financing Dialogue
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2nd Danube Financing Dialogue
Thursday, 24th and 25th January 2013, Belgrade
National Bank of Serbia
“What support do SMEs need”
Croatia Case in SMEs development to be shared with Danube region countries
Despite the progress demonstrated in the SME sector over last years, there are a number of challenges in terms of SMEs performance which need to be overcome in order to reap the full benefits from, and being able to respond effectively to EU and global market.
The fact that over two thirds of enterprises are micro businesses with no ambition to grow, hinders the further development of the SME sector, and from that point of view, SMEs are not still developed at satisfactory levels.
More specific:
-Selected indicators of global competitiveness show that the economy is lacking of access to finances, despite relatively solvent and stable banking systems.
-Capital market is not developed, especially if we measure liquidity of share market. The forms of private investment into entrepreneurial projects are not developed, while micro and small size enterprises are not even present on the financial markets.
-Despite relatively good IT literacy per capita, development in online use of payment operations and goods and services trade is very low.
-Sectors with substantial sources for growth, including technological and academic entrepreneurship, prove to create insufficient business activities.
-There is a lack of connection between entrepreneurship and R&D, not only in business relations with science institutions but also with companies which deal with new technologies, research and development.
- The infrastructure fostering interactions and cooperation of research organizations, universities and industry partners in order to pool their resources and expertise to enhance technology transfer and technology-based companies in different regions is insufficient.
-Small productivity is present in SMEs, the technological content of products and components is limited and there is also a lack of innovation and export orientation.
-Large number of enterprises is located in big cities and their vicinity, a fact that puts a dent in the attempt to have balanced entrepreneurship among the regions.
-There is a lack of entrepreneurial lifelong learning schemes and vocational education in conformity with the requirements of the economy.
Above identified gaps are met with different projects financed through IPA III C component funds – Examples of good practice for dissemination over pre-accession region and a solid platform for future Structural Funds use
- Promotion and Direct Delivery of Advisory Services for SMEs
The project envisages direct consultancy services to SMEs on topics essential to international competitiveness as well as on topics essential to the awareness and good use of EU funding intended for enhanced national and regional competitiveness.This project resulted with 200 of SMEs received advisory services.
II: Capacity Building of Business Support Professionals and
Business Support Institutions
The main objective was increase of the competitiveness of Croatian SMEs by the provision of high quality business support services.
The purpose was to improve the quality and availability of business support servicesto SMEs, by developing the professional expertise and enhancing the capacities of business service providers, and local business support institutions and preparing them for future Structural Funds
III: SMEs development grant scheme
What needs of SMEs are we learnt from a Survey on SMEs needs fully reflecting current and future SMEs demands. Also, recent years were whole range of grant schemes for SMEs which resulted in 3 to 4 times more demand than money available from national budget. Through the GS implementation we have learned about different activities that SMEs were seeking financing for.
The biggest demand was for project “Enhancing SMEs Competitiveness”. Thus, we have concentrated on three major areas: new technologies, innovations, and marketing utilizing ICT within the first strand “SMEs competitiveness”. The second strand
“SMEs in Tourism”with major goal to reposition of tourism sector in more sustainable system.
Target SMEs:
-Innovative SMEs and Crafts
-Young entrepreneurs in business
-Start-up SMEs and Crafts
-Enterprises operating internationally
-SMEs in harmonization with EU standards
-SME supporting institutions (business centers, incubators, technological parks, regional development agencies, entrepreneurial zones)
-Encourage more women in small business and increase the number of women entrepreneurs, especially those whose operations are based on innovative solutions