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  • EBRD Small Business

    Support (SBS)Support (SBS)

    Natalia Meylunas

    SBS Head of Regional

    Programme, Western Balkans

  • Small Business Support (SBS) overview

    EBRD fosters entrepreneurship not only through capital funding but also by providing business expertise

    Small Business Support (SBS) has been helping MSMEs to adapt to the demands of a market economy since 1993

    At a glance

    Number of projects to date (EGP and BAS combined): 12,000+

    EGP projects: 1,870


    economy since 1993

    2 instruments of the SBS, the Enterprise Growth Programme (EGP) and Business Advisory Services (BAS) are essential components of the EBRD transition toolkit

    Run on a not-for-profit basis in over 20 EBRD countries of operations

    Over 200m in funding utilised to date from bilateral and multilateral donors

    BAS projects: 10,200

    Market development activities:595

    Total investments secured by client companies: 1.45 billion

  • EGP and BAS

    Complementary technical assistance programmes, Donor funded, Not-for-profit

    Combine direct assistance at the enterprise level with systemic market development interventions

    Business Advisory Services (BAS): Business Advisory Services (BAS):

    o Use of local consultants by giving grants to MSMEs to obtain a diverse array of consulting services

    o Systemic Market Development Activities to develop a sustainable infrastructure of advisory services and SME support

    Enterprise Growth Programme (EGP):

    o Substantial managerial and structural improvements in SMEs by engaging experienced senior executives and industry experts as advisors

    o Sector Development Activities to disseminate best practices and lessons learnt

  • Enterprise Growth Programme(EGP)

    Entrepreneurial Professional

    More structured

    Board governance with

    Involved in everything

    Taking all decisions (no

    Transition from Entrepreneurial to a Professional Company

    Challenge is to maintain entrepreneurial culture in a more structured environment

    Board governance with

    records of decisions

    Delegated authority to

    specialists (e.g. CFO)

    Systems + culture

    *Equipped for growth*


    Taking all decisions (no

    delegation, no records)



    *Limit on growth potential*

  • EGP Methodology

    Project lasts 12-18 months, visits every 6-8 weeks

    Experienced senior executives work with CEOs and management teams

    Project team consists of Senior Industrial Advisor (SIA), Project team consists of Senior Industrial Advisor (SIA), Specialist(s) and Team Coordinator / Local Manager

    Scope tailored to the needs of the individual enterprise

    Typical areas: General management, Sales and marketing, Financial and strategic planning, Attract finance, Organisational restructuring, Production and design, Export opportunities, International standards

  • EGP Project Cycle

    Identification and screening of candidate enterprises (referrals

    from EBRD teams, local institutions, chambers etc)

    Selection and approval by EGP management team (HQ)

    Senior Advisor selected and appointed to the project

    First visit, Project work plan & Objectives agreed

    Team visits, actions followed on

    Mid term review, Final project review


  • EGP Enterprise criteria

    Medium size enterprises, normally >100 employed, >1 million t/o

    All sectors, except banking and financial services, military

    products/services, gambling, tobacco and hard liquors

    Private, majority locally owned businesses with significant

    importance for the local economyimportance for the local economy

    Acceptable debt structure, potential to be commercially viable in the

    longer term

    Strong commitment to undergo restructuring / development

    programme agreed

    Willing to co-share minimum 10% of total project cost (~ 5,000)

  • EGP in the Western Balkans

    Until present, EGP has implemented around 500 projects, of which 38 were in Bosnia and Herzegovina, 35 in Croatia and 184 in Serbia

    Project Impact:

    Bosnia and Herzegovina (since 1997)

    Croatia (since 1999)

    Serbia (since 2001)

    No. of assisted 71% 47% 67%

    25.7 million of donor funding from the European Union, Austria, Canada, Denmark, Finland, Greece, Ireland, Italy, Japan, Korea, Luxembourg, Netherlands, Portugal, Sweden, Switzerland, TaipeiChina and the UK.

    No. of assisted

    enterprises to report an

    increase in turnover

    71% 47% 67%

    No. of assisted

    enterprises to report an

    increase in pre-tax profit

    75% 29% 48%

    No. of assisted

    enterprises to report an

    increase in employment

    38% 20% 29%

  • Business Advisory Services (BAS)


    Achieve enterprise change in potentially viable MSMEs

    Develop sustainable infrastructures of local business advisory services

    BAS operates on both the demand and supply side:

    Stimulates demand by raising the understanding of MSMEs of the potential benefits of using external consultants

    Increases supply and quality of local advisory services

    BAS projects:

    MSMEs provided with a grant to cover 25-75% of consultants costs or max. 10,000 (Grant only paid on successful completion of project)

    Market development activities including MSME and consultancy training; support to relevant institutions; visibility and dissemination activities

  • BAS Project types

    Market performance: Market analysis Business planning Feasibility studies

    Management effectiveness: Financial management / MIS Reorganisation / restructuring Reorganisation / restructuring

    Cost reduction: Computerised manufacturing systems Engineering studies Product management

    Quality management: ISO certification Product management

    Environmental management: Energy efficiency Environmental impact assessments

  • BAS Project cycle

    1. Project screening and selection

    2. Consultant selection (Enterprise)

    3. Project TOR development, grant agreement with enterprise3. Project TOR development, grant agreement with enterprise

    4. Project implementation, monitored by BAS team

    5. Project completion and grant disbursement upon successful

    project completion

    6. Project Evaluation 12 months after disbursement

  • BAS in Serbia


    Inception 2006

    Number of projects 290, of

    which 36 On-going,

    66 Completed and 188

    Feasibility Studies





    66 Completed and 188


    Over 150 Consultants engaged

    Number of Market Development

    Activities (MDA) 11

    35% of enterprises secured an

    external investment


    To Introduce Quality

    Management &



    Energy efficiency




    Information System


    Development Planning


    Market Analysis &



  • BAS Serbia funding




    EBRD Shareholder Special

    Fund (ESSF) EBSF-2011-07-


    EU Private Sector Support







    EU Private Sector Support

    Facility for the Western

    Balkans ECWB-2011-06-14F

    Netherlands NEBS-2007-12-


    Taipei China TWTC-2011-08-


  • Established in 2002, Knjazevac

    Activity:Wood industry -Pressed plywood chair seats production


    BAS Project case study SCS Plus KnjazevacImplementation of Computerised Management and Financial System


    Difficulties in monitoring the production easily, accepting the orders, follow the stocks, plan the future production, submit the salaries and work orders

    Difficulties in financial and operational management of all business activities

    BAS Support

    BAS support in the project was crucial in providing financial support and facilitating the consultancy project for the implementation of a Computerised Management and Financial System


  • BAS Project case study SCS PlusImplementation of Computerised Management and Financial System

    Project outcome

    Improved management procedures and decision making process

    Generation in real time of company financial reports such as on orders, sales, production flow etc for each of the business activities

    Information on costs and profitability for each of products

    Increased staff efficiency and performance quality

    Significant decrease of costs



    Serbian Association of Management Consultants (UPKS) have initiated introduction of CMC (Certified Management Consultant) programme in Serbia in 2010 and Croatian Association of Management Consultants HUPS was chosen as a partner in this process.

    BAS supported second part of this project - building of internal capacities of UPKS that will enable UPKS to maintain CMC programme in the future and consequently lead to UPKS sustainability.

    Participants: 14 CMC certified consultants

    Project included: Project included:

    1. Establishing UPKS procedures for CMC certification procedure according to the ICMCI Competence Framework and Body of Knowledge

    2. Preparation a

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