prijedor entrepreneurship and sme development strategy -...
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Southeast EuropeEnterprise Development
ENTREPRENEURSHIPAND SME DEVELOPMENT
STRATEGY INPRIJEDOR MUNICIPALITY
2003 - 20082003 - 20082003 - 20082003 - 2008
C O N T E N T
- Introduction 4
- Acknowledgements 5
- Vision 6
- Economic Situation of the Prijedor Municipality 6
- SWOT Analysis of the Prijedor Municipality 8
- Entrepreneurship Development Strategy in the Municipality of Prijedor 9
- Strategic Goal no. 1 12
- Strategic Goal no. 2 13
- Strategic Goal no. 3 14
- Strategic Goal no. 4 15
- Strategic Goal no. 5 16
- Matrix of Development Goals, Programs and Projects in the Prijedor Municipality 17
- Projects Matrix 20
- Proposals for Initial Projects 22
- Prijedor Local Economic Development Agency 22
- Entrepreneurship Incubator 23
- Agricultural Cluster 24
ENTREPRENEURSHIP AND SME DEVELOPMENT STRATEGY IN PRIJEDOR MUNICIPALITY
3
F O R E W A R D
The Municipality Prijedor is the second largest Municipality in Republic of Srpska, both population as well as the territory size vise. The Municipality is placed in the Northwest part of Bosnia and Herzegovina in the valley of the Sana river and surrounded by the mountains Kozara and Grmec. The Municipality has relatively well developed infrastructure and represents an urban environment with all preconditions for comfortable living and work of its population.
The earlier concept of development of Prijedor economy was based on development of capacities of the basic industry. Bearers of Prijedor economy were big systems of iron, cellulose and paper production that served as raw material base for development of processing capacities for final products in other parts of former Yugoslavia.
In the period of transition from state to market economy such economic structure in the Prijedor Municipality has become an obstacle to development of both the economy as well as development of the society itself. The exiting economy structure in not only incapable of creating new job opportunities, but it generates additional unemployment.
In order to change these negative trends in the economy, the Municipality of Prijedor has adopted a new Strategy with the main goal to develop a diversified economy supported by advanced service industry sector and strong focus on development of agriculture production.
The new Strategy is focused on entrepreneurship and SME development, which are expected to become the main element of economic development of Prijedor Municipality in future. The Strategy for entrepreneurship and SMEs development is based and developed on the concept and methodology of local economic development. This concept is creating conditions for improvement of business environment, creation of new enterprises, development and growth of existing enterprises and attraction of domestic and foreign investors. Implementation of this concept requires that Municipal authorities take different and new role in the economic development through creation of partnership relationship between local authorities and private sector in order to jointly define development goals and implement economic development projects.
Through the establishment of Info Center, One-Stop-Shop for business entities, creation of fund and credit line for fruit producers and support to establishment of Development Agency, Prijedor Municipality has made initial steps in its attempt to assist and support entrepreneurs. The Strategy was developed in cooperation between the Municipality and Southeast Europe Enterprise Development (SEED).
The final goal we want to achieve through implementation of this Strategy is creation of conditions for economic prosperity of Prijedor Municipality and, through that, creation of better living conditions for all citizens of this community.
In order to achieve the defined goals, Prijedor Municipality, with its modest resources, additionally burdened with social and other problems, will need support and assistance from all levels of BiH government as well as technical assistance, expertise and financial resources from international organizations.
Mayor of Prijedor MunicipalityProf. Nada Ševo Prijedor 25. 08. 2003.
ENTREPRENEURSHIP AND SME DEVELOPMENT STRATEGY IN PRIJEDOR MUNICIPALITY
4
ENTREPRENEURSHIP AND SME DEVELOPMENT STRATEGY IN PRIJEDOR MUNICIPALITY
ACKNOWLEDGEMENTS
From the very beginning of the project, the Mayor and her team have been showing great understanding, proactiveness and recognized the need to take a lead role in their community in the matters related to economic development.
Throughout this project, with strong support from Mayor and her staff, we have been initiating dialogue between the Municipality, entrepreneurs and other stakeholders about issues related to business environment, non-financial and financial support to private sector, human resources development, etc.
Without active involvement of all this professionals and their willingness to contribute towards the improvement of economic situation in their community, it would be almost impossible to implement this project and to bring it to the very successful end.
Beside the above mentioned participants in the project, I wish to address special gratitude to the members of the SEED consulting team, Ms. Gwen Swinburn, the World Bank Senior Urban Specialist, Prof. Dr. Miroslav Glas, Mr. Bogo Filipic, MSc and Prof. Dr. Darko Tipuric, who have invested a lot of efforts, time and energy into the activities and contributed a lot to the quality of the project itself.
This project sets a good foundation and designs a platform which can serve to all those who have possibility to help the Municipality and private sector in Prijedor in creation of the better business environment, establishment and initiation of the efficient organization and institutions for provision of different kinds of support to private sector as well as to enhance and develop human resources in accordance to the new needs arising from the economy of today.
Work of local organizations and institutions, resources and efforts they invested so far as well as their commitment to this project, represent a guarantee to all domestic and international organizations and institutions that they would be serious and sincere partners, ready for cooperation with all the parties interested in changing currently unfavorable economic situation in Prijedor and improvement of the quality of life and standard of Prijedor citizens.
Davorin PavelicBusiness Development AnalystSoutheast Europe Enterprise Development - SEED
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ENTREPRENEURSHIP AND SME DEVELOPMENT STRATEGY IN PRIJEDOR MUNICIPALITY
ECONOMIC SITUATION OF THE PRIJEDOR MUNICIPALITY
The development document “Entrepreneurship and small and medium-sized enterprise deve lopment s t ra tegy fo r the Mun ic ipa l i t y o f P r i jedor, 2003-2008” pos i t ions the Municipality as an active center of entrepreneurial activities after almost ten years of economic stagnation, caused by war devastation and economic transition.
The Munic ipal i ty of Pr i jedor is the second largest munic ipal i ty, both by the area i t occupies, and by the populat ion (after Banja Luka), in the Republ ic of Srpska. I t comprises 24 local communities, three of which are part of the city itself. Just as the majority of other cities in B&H, Prijedor has significantly changed its own demographic p ic ture through, and s ince the B&H war. Accord ing to the 1991 census , 110,130 population resided in this area, and the number of population in Prijedor in 2000 was 95,502. According to some estimation, today some 37,000 refugees also reside in the Prijedor Municipality, who are both a social and economic challenge for the Municipality. Thus, in 2001, the workforce population was 17,829 persons, of which there were 7,608 employed (in 1988, there had been 21,555 employed) and 10,221 unemployed (even 7443 in 1996), so the unemployment rate that year was 57.33 % with an increasing trend. At the same t ime the unemployed workforce is a lso a generator of the gray economy at the large scale and it will be reduced only by job creation in large, medium and small enterprises.
In 2001, 1.653 entrepreneurs worked in the economy , and in addition to this, 359 more ent i t ies were reg istered in 39 d i f ferent areas of the economy, of which 55 (15.3) pertained to state-owned enterprises, and 304 (84.7%) pertained to private enterprises. The current state-owned enterprise privatization process changes both organizational forms of the majority of enterprises into shareholding companies, and the ownership relations (equity structure).
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ENTREPRENEURSHIP AND SME DEVELOPMENT STRATEGY IN PRIJEDOR MUNICIPALITY
The majority of the enterprises has been registered in trade (47%), business activities (6.10%), construction (6.10%) and wood processing (4.5%).
The Pr i jedor Municipal i ty did not base i ts development on the tradit ion of the SME development. Its mono-production orientation with a few large state owned enterprises was appropriate in the centralized economy regime characterizing the period until the most recent war. Because the former characteristics of the economy in the Municipality, which had a function of creating a base for raw materials for the industries outside the Prijedor area, there is a significant need for transition of the economy to enable Prijedor to become a center for SMEs and entrepreneurship activities in different industries. The Pr i jedor Munic ipal i ty has made decis ion to prepare the SME Development Strategy because of the need for major structural changes.
The preparation of this strategy began with creation of an organizational structure and at a LED strategy workshop in March 2002. Today the organizat ional structure involves the municipal authorities, local partners and foreign consultants, and therefore consists of the following:
o Forum of influential interested entities (stakeholders), headed by the Mayor;
o Project Board at the municipal level, led by the Mayor;
o Local Economic Development Team (LED Team)
o Fou r wo rk i ng g roups : f o r bus i nes s deve l opmen t ; f o r i n f ra s t ruc tu re and
env i r o nmen t a l p r o t e c t i o n ; f o r human r e s ou r c e s d e ve l o pmen t ; a nd f o r agricultural and rural development.
The joint work of this structure is ref lected in the “Entrepreneurship, Small and Medium-Sized Enterprise Development Strategy for the Prijedor Municipality, 2003-2008” which is presented here in the text below in its summarized version. The summarized version was prepared as an INVITATION TO DONORS AND PARTNERS to join in implementation of this strategy and to assist in improvement of the economic situation within the Municipality.
This initiative was funded by the Municipality itself and SEED. The SEED experts, the World Bank Local Economic Development expert and international consultants from Slovenia were engaged for the preparation of this strategy.
7
ENTREPRENEURSHIP AND SME DEVELOPMENT STRATEGY IN PRIJEDOR MUNICIPALITY
POSITIVE FACTORS
S – Strengths O – Opportunities
Ø Honest and diligent people, willing to make Ø Strengthening of the coalition between private and public sectors
W - Weaknesses
Ø Resistance to change Ø Few SMEs Ø Lack of entrepreneurship tradition, Ø Lack of integration in the structures of
private and public sectors Ø Poor organization of entrepreneurship
support, Ø Lack of infrastructure entities (agencies,
zones, incubators, clusters, etc.) Ø Lack of entrepreneurial skills Ø Underdeveloped banking sector in Prijedor Ø Lack of foreign investment; Ø Lack of qualitative information base Ø Obsolete technologies, Ø Farms of small size
T – Threats
NEGATIVE FACTORS
SWOT ANALYSIS OF THE PRIJEDOR MUNICIPALITY
Simultaneously with collecting statistical data on the economic situation, a survey was conduc ted among en t rep reneu r s i n P r i j edo r and i n te rv i ews were he ld w i th the representat ives of al l the economic development support organizat ions. The SWOT analysis of the Municipality Prijedor shows the picture of the economic situation from the aspect of entrepreneurship development.
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ENTREPRENEURSHIP AND SME DEVELOPMENT STRATEGY IN PRIJEDOR MUNICIPALITY
Step 1. Organization of Activities
Step 2. Municipality competitiveness assessment & SWOT analysis
Step 3. Creating development strategy: vision, goals, projects
Step 4. Strategy implementation
Step 5. Strategy implementation analysis & supplemental measures
9
ENTREPRENEURSHIP AND SME DEVELOPMENT STRATEGY IN PRIJEDOR MUNICIPALITY
The Pri jedor Municipal i ty Vis ion acknowledges al l the advantages and development opportuni t ies , and i t means a descr ipt ion of economic future that a l l ent i t ies are interested in and that all the entities creating this future agree with: entrepreneurs, municipal administration, people from education, health system, and other services, residents of Prijedor and the whole municipality. The vision provides a clear direction as to the way further, meaning, the Pr i jedor development v is ion ant ic ipates that the Pr i jedor Munic ipa l i ty wi l l never again as before re ly on the i ron mine, and due to technological obsoleteness it can not expect much from revital ization of the former major enterprises. Therefore it will rely on the SMEs for its development, changing the economic structure into an interwoven network of micro-, smal l and medium-sized enterprises.
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ENTREPRENEURSHIP AND SME DEVELOPMENT STRATEGY IN PRIJEDOR MUNICIPALITY
BASIS FOR DEVELOPMENT VISION OF PRIJEDOR AS CENTERFOR DEVELOPMENT ACTIVITIES IN NORTHWEST BOSNIA
In five years, Prijedor Municipality will be a source of economic development and
a strong entrepreneurship center with a network of small and medium-sized -enterprises and a dynamic and versatile economy.
Entrepreneurship and SME development strategy
STRATEGIC GOALS
STRATEGIC GOAL 1 STRATEGIC GOAL 2
Creation of enabling businessenvironment
Creation of physical anddevelopment infrastructure
STRATEGIC GOAL 4
Production job creationwhile retaining versatility
STRATEGIC GOAL 3
Strengthening the SME sectorand their capacities
STRATEGIC GOAL 5
Human resource developmentfor economic growth and
restructuring
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ENTREPRENEURSHIP AND SME DEVELOPMENT STRATEGY IN PRIJEDOR MUNICIPALITY
Objective 1 Increasing the entrepreneurs'
satisfaction level with the performance of the Municipality
Objective 2 Active work of the Stakeholder
Forum (development coalitions)
Objective 3 Establishment of public -private sectors
partnership
Create business environment that will encourage the establishment of commercial
and industrial businesses that will be of benefit to the community, promote
stabile and diversified economy that is, at the same time, env ironmentally sound.
STRATEGIC GOAL NO. 1Creating enabling business environment
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ENTREPRENEURSHIP AND SME DEVELOPMENT STRATEGY IN PRIJEDOR MUNICIPALITY
Objective 1 Objective 2
STRATEGIC GOAL NO. 2
1. Establishment of the Prijedor Development Agency
2. Foundation of the SME Development Financial Fund (micro-credit, guarantees, subsidies)
3. Foundation of a One Stop Shop
4. Creation of Entrepreneurship Incubators
5. Creation of the Business Zone with improved utilities and infrastructure
6. Creation of the Development Center for Rural Areas
1. Program for development of support institutions
and mechanisms
2. Program for infrastructure development
P h y s i c a l i n f r a s t r u c t u r e i s a s u p p o r t instrument assisting new companies from the start to meet the spat ia l requirements for work and begin to operate and create new jobs as soon as poss ib le . For the ex is t ing SMEs, this infrastructure al lows expansion and growth (in terms of space too) and new job creation. Under the right conditions, this in f rast ructure a l lows for concentrat ion of exper t i se and deve lopment o f innovat i ve enterprises.
The bu s i ne s s i n f ra s t r u c t u r e c on s i s t s o f institutions and enterprises that may service development coalitions at the local level, that may represent the local environment with external, national or foreign partners, and that may provide high-quality services for the loca l par tners , fo re ign par tners , donors , investors and SMEs on development projects.
Creation of the business infrastructure forSME development
Development of necessary physical infrastructure
SMEs may be well developed in the environment offering them better conditions for growth, meaning, offering them the infrastructure, assisting in creation of new enterprises, and subsequently with growth and increase in volume of production of products or services. On the other hand, a developed business infrastructure increases favorableness of the environment and motivates both SMEs and new investors to come and creation new jobs.
Creation of physical (hard) and business (soft) infrastructure for SMEdevelopment
13
Objective 1
Objective 2
Objective 3
1. Simplification of registration procedures for new companies
2. Introduction of voucher and other support schemes for dynamical SMEs (consulting,
preparation of business plans for banks, consulting for internationalization of business)
3. Project of support for quality development and introduction of ISO and CE standards in
SMEs
4. Projects to group enterprises into networks and clusters
5. Organization of a number of meetings with SMEs from neighboring countries
6. Support to internationalization (organizational and financial) of SMEs to participate in fairs,
exhibitions and conferences
1. Program of support for new entrepreneurs
2. Program of support for growing enterprises
3. Program of including gray economy into the legal
economy
S t r u c t u ra l c h ange s and larger business dynamics a r e a c c o m p l i s h e d b y increase in SME number, reduction of gray economy and quicker job creation in S M E s . T h i s i n c r e a s e s employment and share of these enterprises in it, and due to the high unemplo-yment rate in the Prijedor M u n i c i p a l i t y t h i s i s a significant objective.
New and existing SMEs need various support instruments in order to be able to develop quicker, to invest and create new jobs. Supporting growth means leading a dynamica l po l i c y o f s uppo r t t h r ough d e v e l o p m e n t a n d imp lementa t i on o f va r i ous support instruments that can be used in SME growth.
Opening SMEs towards outer markets requires the SMEs to l e a r n , t o c o o p e r a t e , t o introduce standards and new methods of work, to introduce new technologies, to network, t o u s e n e w I T a n d n e w d i s t r i b u t i o n c h a n n e l s ; therefore the implementation o f t h i s g o a l i s c r u c i a l f o r survival of SMEs.
Increase in number of small and medium-sized enterprises
Encouragement to growth of dynamical small and medium-
sized enterprises
Opening SMEs towards broader markets of B&H and
the neighboring countries
The number of SMEs in Prijedor is below the standards of the developed countries, and what is particularly lagging behind is the dynamics of creation of new enterprises, introducing new products, services and technologies. Quicker development requires improvement of the existing companies to invest into growth and development of support instruments to create new enterprises and thus effecting a change in the structure of industries.
STRATEGIC GOAL NO. 3
Strengthening the small and medium-sized enterprise (SME) sector
ENTREPRENEURSHIP AND SME DEVELOPMENT STRATEGY IN PRIJEDOR MUNICIPALITY
14
ENTREPRENEURSHIP AND SME DEVELOPMENT STRATEGY IN PRIJEDOR MUNICIPALITY
Objective 1
Objective 2
Objective 3
STRATEGIC GOAL NO. 4
Increase of job creation in SMEs
Increase of shares of new industries in BDP
Increase of actual wages and salaries
Encouragement to job creation for various target groups and in varying industries provides a long-term solution to many issues related to employment for »difficult to employ« persons or to employment in industries where there is normally a lack of skilled workers. Through programs focused on removal of these obstacles, we can achieve job creation appropriated for the needs of the economy.
Creation of productive jobs with variety of activities
15
1. Analysis of human resources and needs of SMEs, and larger enterprises, by numbers and types of skilled workforce
2. Analysis of the existing training and education programs 3. Development of new training programs and change/adjustment of the existing ones to the
SME needs 4. Development of financial action plan subsidies for new job creation 5. Entrepreneurship training for youth 6. Support to employment of young graduates 7. Support to development of supplementary rural activities 8. Support to association and entrepreneurship initiative for women9. Support to employment of disabled persons and persons with limited working ability
1. Program of active employment policy
2. Program of entrepreneurship initiatives for women
3. Program of rural entrepreneurship
4. Program of youth entrepreneurship
By encouraging training and retraining of the unemployed, we open the opportunity for both new and existing SMEs to find the workforce skilled a p p r o p r i a t e l y f o r t h e i r production programs.
As the SME sector in Prijedor is st i l l largely underdeveloped, there is also an underdeveloped supply of services and products needed by the local and broader markets . Encouragement for employment in underdeveloped industries improves supply on the market and changes the situation in the economy.
The low personal standard d e p e n d s o n w a g e s a n d salaries. Through training and profess ional development, and fu r the r t h rough se l f -employment, conditions are bu i l t a l l ow ing h i ghe r and additional wages and salaries in urban and rural areas as well.
ENTREPRENEURSHIP AND SME DEVELOPMENT STRATEGY IN PRIJEDOR MUNICIPALITY
Objective 1
Objective 2
Objective 3
Education system for entrepreneurs
Education system for workers in SMEs
Education system for other population groups
Human resources allow for transformation of expertise and skills into products and services sellable on the market. Due to the war, failed enterprises, difficult economic situation, technological obsoleteness, isolation and brain drain it is necessity today to have additional education and training of entrepreneurs, entrepreneur candidates, workers, the unemployed, students and other population and it is a precondition for quicker development of SMEs and Prijedor as a whole.
STRATEGIC GOAL NO. 5
Human resource development for economic growth and restructure
1. Development of special education programs for entrepreneurs and workers from various sectors
2. Development of comprehensive education programs for starter entrepreneurs and for students
3. Development of public vocational training programs for adults
1.Training (educational) program for competitiveness
The time of quick changes in all areas of work requires b u s i n e s s p e o p l e t o p e r m a n e n t l y l e a r n a n d study, so they can promptly respond to changes in the business environment and in the municipality of their res idence. In addit ion to this, the business world is b e c o m i n g i n c r e a s i n g l y global, requir ing broader a n d c o m p l e t e l y n e w expertise.
Competitiveness of work depends on technology and worker skills. Use of IT t e c h n o l o g i e s i n a l l industries requires people to attain new skills and expertise, as well as a different approach in work and organizational sense. Education of workers is becoming a precondition for e n c o u r a g e m e n t o f competitiveness.
S M E d e v e l o p m e n t a l s o d e p e n d s o n h o w w e motivate pupi ls, students, the unemployed, and others, t o b e c o m e i n v o l v e d i n various education programs thus raising levels of their expertise and possibilities to a c c o m p l i s h t h e i r entrepreneurial ideas or to be employed by SMEs where such knowledge is needed.
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ENTREPRENEURSHIP AND SME DEVELOPMENT STRATEGY IN PRIJEDOR MUNICIPALITYM
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Ob
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ve
1:
In
cre
as
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ntre
pre
ne
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' s
atis
fac
tio
n l
ev
el
wit
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Munic
ipality
perf
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ance
Ob
jecti
ve
2:
Acti
ve w
ork
of
the S
takeh
old
er
Foru
m (
develo
pm
ent
coalition)
Ob
jecti
ve
3:
E
sta
blish
men
t of
pu
blic-p
rivate
se
ctors
part
ners
hip
1. Pro
gra
m t
o c
reate
deve
lopm
ent
coalit
ions
2.
Pro
gra
m o
f non-f
inanci
al fo
rms
of
support
to S
ME d
eve
lopm
ent
3.
Pro
gra
m t
o p
rom
ote
entr
epre
neurs
hip
4.P
rogra
m t
o im
pro
ve loca
lbusi
ness
envi
ronm
ent
1.E
sta
blish S
takehold
er
Foru
m a
nd
oth
er
develo
pm
ent
coaliti
ons
2.D
evelo
p a
join
t overa
ll P
rije
dor
Munic
ipality
Develo
pm
ent
Str
ate
gy
3.S
taff
tra
inin
g i
n M
unic
ipality
and
insti
tuti
ons
for
support
to S
MEs
for
bett
er
perf
orm
ance a
nd b
arr
ier
rem
oval
4.E
sta
blish O
ne S
top S
hop i
n t
he
Munic
ipality
5.E
sta
blish m
unic
ipal non-f
inancia
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rms
of
support
to e
ntr
epre
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hip
develo
pm
ent
6.P
rom
ote
entr
epre
neurs
hip
and
opport
unit
ies
it o
ffers
7.P
rom
ote
entr
epre
neurs
hip
success
and s
uccessfu
l entr
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neurs
8.P
rom
ote
join
t pro
jects
and
coopera
tion
9.C
o-f
inance p
rom
oti
on m
ate
rials
, busin
ess
meeti
ngs
and b
usin
ess
netw
ork
ing
17
ENTREPRENEURSHIP AND SME DEVELOPMENT STRATEGY IN PRIJEDOR MUNICIPALITY
Str
ate
gic
goals
Opera
tional O
bje
ctiv
es
Pro
gra
ms
Pro
ject
sVis
ion
Pri
jedor
will
becom
e a
ce
nte
r o
f d
eve
lop
me
nt
ac
tiv
it
ie
s in t
he
No
rth
we
st
pa
rt o
f B
iH.
It w
ill
encoura
ge,
cre
ate
a
nd c
on
ce
nt
ra
te
bu
sin
ess
init
iati
ve
s in
th
e f
orm
of
a n
etw
ork
of
sm
all
an
d m
ed
iu
m
en
terp
ris
es,
dir
ecte
d
to
wa
rd
s b
ro
ad
er
regio
nal m
ark
ets
.
Th
e d
ev
elo
pm
en
t -
ori
en
ted c
lim
ate
in t
he
ar
ea w
ill
en
su
re
div
ers
ity
in p
rod
ucti
on
st
ru
ct
ur
e,
qu
ic
k a
cce
pti
ng o
f n
ew
skil
ls
an
d q
uic
k im
ple
me
-nta
tion o
f good b
usin
ess
ide
as
. T
he e
co
no
mic
m
ott
o w
ill
be o
pen
ness
an
d r
em
ov
al
of
all
ba
rrie
rs,
foll
ow
ed b
y b
ett
er
qu
ali
ty o
f li
vin
g
of
all
pe
op
le a
nd
ma
in
te
na
nc
e o
f h
isto
rica
l a
nd c
ult
ura
l v
alu
es
. P
ro
ac
tiv
e
ap
pro
ac
h w
ill
giv
e
Pri
jedor
advan
tage o
ver
ne
igh
bo
rin
g a
rea
s a
nd
en
co
ura
ge e
xce
lle
nce
, f
le
xib
le b
us
in
es
s in
fra
stru
ctu
re a
s a
so
ur
ce o
f f
ut
ur
e
eco
no
mic
de
ve
lop
me
nt
an
d g
en
era
l w
elf
are
of
the P
rije
dor
people
G2
: C
re
at
ion
of
ph
ysic
al
an
d b
usi-
ne
ss i
nfr
astr
uctu
re
fo
r S
ME
de
ve
lo-
pm
en
t
G 3
: S
tre
ng
the
nin
g
of
SM
E s
ecto
r
Ob
jecti
ve
1:
Develo
pm
en
t o
f th
e n
ecessary
physi
cal in
frast
ruct
ure
Ob
jecti
ve
2:
Cre
ate
busi
ness
infr
ast
ruct
ure
for
SM
E d
evelo
pm
ent
Ob
jecti
ve
1:
Cre
ate t
he m
ost
imp
orta
nt
in
stitu
tio
ns
of
ph
ys
ic
al
infr
ast
ruct
ure
Ob
jecti
ve
2:
Cre
ate
busi
ness
infr
ast
ruct
ure
for
SM
E d
evelo
pm
ent
1.
Pro
gra
m t
o d
evelo
p s
up
po
rt
inst
itutions
and m
ech
anis
ms
1.
Pro
gra
m t
o s
up
po
rt
ne
w
entr
epre
neurs
2.
Pro
gra
m t
o s
up
po
rt g
row
ing
ente
rpri
ses
3.
Pro
gra
m t
o i
nte
gra
te g
ray
eco
nom
y in
to l
egal eco
nom
y
1. Est
ablis
h P
rije
dor
Deve
lopm
ent
Agency
2. Est
ablis
h F
inanci
al Fund (
mic
ro-c
redit
schem
es,
guara
nte
e s
chem
es,
su
bsi
die
s)
3.
Est
ablis
h O
ne S
top S
hop
eve
ryth
ing a
t one p
lace
4.
Est
ablis
h E
ntr
epre
neurs
hip
incu
bato
r
5.
Est
ablis
h B
usi
ness
Zones
with a
rranged
utilit
ies
6.
Est
ablis
h R
ura
l Are
a D
eve
lopm
ent
Cente
r
1.S
implif
y re
gis
tration p
roce
dure
s fo
r new
com
panie
s
2.
Intr
oduce
vouch
er
and o
ther
schem
es
of
support
to d
ynam
ical SM
Es
(consu
ltin
g,
pre
para
tion o
f busi
ness
pla
ns
for
banks
, co
nsu
ltin
g f
or
inte
rnationaliz
ation o
f busi
ness
)
3.P
roje
cts
support
ing q
ualit
y deve
lopm
ent
and intr
oduct
ion o
f IS
O
and C
E s
tandard
s in
SM
Es
4.P
roje
cts
to g
roup e
nte
rprise
s in
to
netw
ork
s and c
lust
ers
5.O
rganiz
e a
num
ber
of
meetings
with
SM
Es
from
neig
hboring c
ountr
ies
6.S
upport
inte
rnationaliz
ation
(org
aniz
ational and f
inanci
al) o
f SM
Es
for
part
icip
ation in f
airs,
exp
osi
tions
and c
onfe
rence
s
18
ENTREPRENEURSHIP AND SME DEVELOPMENT STRATEGY IN PRIJEDOR MUNICIPALITY
Str
ate
gic
goals
Opera
tional O
bje
ctiv
es
Pro
gra
ms
Pro
ject
sVis
ion
Pri
jedor
will
becom
e a
ce
nte
r o
f d
eve
lop
me
nt
ac
tiv
it
ie
s in t
he
No
rth
we
st
pa
rt o
f B
iH.
It w
ill
encoura
ge,
cre
ate
a
nd c
on
ce
nt
ra
te
bu
sin
ess
init
iati
ve
s in
th
e f
orm
of
a n
etw
ork
of
sm
all
an
d m
ed
iu
m
en
terp
ris
es,
dir
ecte
d
to
wa
rd
s b
ro
ad
er
regio
nal m
ark
ets
.
Th
e d
ev
elo
pm
en
t -
ori
en
ted c
lim
ate
in t
he
ar
ea w
ill
en
su
re
div
ers
ity
in p
rod
ucti
on
st
ru
ct
ur
e,
qu
ic
k a
cce
pti
ng o
f n
ew
skil
ls
an
d q
uic
k im
ple
me
-nta
tion o
f good b
usin
ess
ide
as
. T
he e
co
no
mic
m
ott
o w
ill
be o
pen
ness
an
d r
em
ov
al
of
all
ba
rrie
rs,
foll
ow
ed b
y b
ett
er
qu
ali
ty o
f li
vin
g
of
all
pe
op
le a
nd
ma
in
te
na
nc
e o
f h
isto
rica
l a
nd c
ult
ura
l v
alu
es
. P
ro
ac
tiv
e
ap
pro
ac
h w
ill
giv
e
Pri
jedor
advan
tage o
ver
ne
igh
bo
rin
g a
rea
s a
nd
en
co
ura
ge e
xce
lle
nce
, f
le
xib
le b
us
in
es
s in
fra
stru
ctu
re a
s a
so
ur
ce o
f f
ut
ur
e
eco
no
mic
de
ve
lop
me
nt
an
d g
en
era
l w
elf
are
of
the P
rije
dor
people
G 4
. P
rod
uc
tiv
e
job
cre
ati
on
wit
h
ind
ustr
y
div
ers
ific
ati
on
G 5
:Hu
ma
n
Re
so
urc
e
De
ve
lop
me
nts
fo
r e
co
no
mic
gro
wth
a
nd
re
str
uctu
rin
g
Ob
jecti
ve
1:
Incre
ase e
mplo
ym
ent
in S
MEs
Ob
jecti
ve
2:
Incr
ease
share
of
new
indust
ries
in G
DP
Ob
jecti
ve
3:
Incr
ease
in a
ctual sa
lari
es
Ob
jecti
ve
1:
Entr
epre
neur
educa
tion s
yst
em
Ob
jecti
ve
2:
Educa
tion f
or
SM
E w
ork
ers
Ob
jecti
ve
3:
Syste
m f
or
ed
ucati
on o
f o
ther
popula
tion
1.
Pro
gra
m o
f act
ive e
mplo
yment
polic
y
2.P
rogra
m o
f entr
epre
neurial
initia
tive
s fo
r w
om
en
3.P
rogra
m o
f ru
ral
entr
epre
neurs
hip
4.P
rogra
m o
f yo
uth
entr
epre
neurs
hip
1.
Educa
tion P
rogra
m f
or
com
petitive
ness
1.
Analy
sis
of
hum
an r
eso
urc
es
and n
eeds
of
SM
Es
an
d m
ajo
r e
nte
rp
ris
es,
by
num
bers
and t
ypes
of
skille
d w
ork
forc
e
2.
An
aly
sis
of
exis
tin
g e
du
cati
on a
nd
train
ing p
rogra
ms
3.
Develo
p n
ew
tra
inin
g p
rog
ram
s an
d
change/a
dju
st t
o e
xis
ting S
ME n
eeds
4.
Develo
p F
inancia
l Schem
e
subsid
ies
for
new
job c
reation
5.
Entr
epre
neurs
hip
tra
inin
g f
or
youth
6.
Su
pp
ort
em
plo
ym
en
t o
f y
ou
ng
gra
duate
s
7.
Support
develo
pm
ent
of
supple
menta
ry
indust
ries
in r
ura
l are
as
8.
Su
pp
or
t n
et
wo
rk
in
g a
nd
entr
epre
neurs
hip
init
iatives
for
wom
en
9.
Su
pp
ort
em
plo
ym
en
t o
f d
isa
ble
d
pers
ons
and p
eople
wit
h l
imit
ed w
ork
ing
ability
1.
Develo
p s
peci
al educa
tion p
rogra
ms
for
entr
epre
neurs
and w
ork
ers
fro
m v
ari
ous
sect
ors
2.
Develo
p g
enera
l educa
tion p
rogra
m f
or
start
-up e
ntr
epre
neurs
and s
tudents
3.
Develo
p v
ocati
onal
train
ing p
rogra
ms
for
adult
s
19
ENTREPRENEURSHIP AND SME DEVELOPMENT STRATEGY IN PRIJEDOR MUNICIPALITY
GO
ALS
VALU
E
SO
UR
CES
OF F
UN
DIN
G in %
PR
OJE
CT
LIS
T
Part
ners
hip
In
frastr
uctu
re
SM
E
Str
ength
en
ing
Job
Cre
ati
on
H
RD
in
EU
RO
D
onors
S
tate
M
unic
ipality
S
ME
IMP
LEM
E
NTE
R
STA
RT
D
UR
A
TIO
N
1.F
oundation
of th
e S
take
hold
er
Foru
ms
and o
ther
deve
lopm
ent
coalit
ions
X
x
4.0
00
100
M
unic
ipalit
y
Febru
ary
3, 2003
Continuo
us
2.C
om
ple
tion o
f th
e J
oin
t C
om
pre
hensi
ve D
eve
lopm
ent
Str
ate
gy for
the P
rije
dor
Munic
ipalit
y
X
x
x x
50.0
00
80
20
Age
ncy
M
arc
h 0
3,
2003
April 06,
2004
3.S
taff t
rain
ing
in t
he M
unic
ipalit
y and inst
itutions
enco
ura
ging
SM
E d
eve
lopm
ent
for
impro
ved
perform
ance
and r
em
ova
l of obst
acl
es
X
X
x
10.0
00
50
50
M
unic
ipalit
y
Marc
h 0
9,
2003
Marc
h
12, 2004
4.F
oundation o
f O
ne S
top S
hop in t
he M
unic
ipalit
y
X
X
6.0
00
50
50
M
unic
ipalit
y
Marc
h 0
9,
2003
Marc
h
12, 2004
5.C
reation o
f m
unic
ipal non
-fin
anci
al fo
rms
of su
pport
to
entr
epre
neurs
hip
deve
lopm
ent
X
X
X
x
200.0
00
100
M
unic
ipalit
y
Marc
h 1
0,
2003
continuo
us
6.P
rom
otion o
f entr
epreneurs
hip
and o
pport
unitie
s offere
d b
y entr
epre
neurs
hip
X
X
X
30.0
00
40
40
20
Age
ncy
O
ctober
2003
Continuo
us
7.P
rom
otion o
f entr
epre
neurs
hip
and s
ucc
ess
ful
entr
epre
neurs
X
X
X
30.0
00
40
20
40
Age
ncy
O
ctober
2003
Continuo
us
8.P
rom
otion o
f jo
int
pro
ject
s and c
oopera
tion
X
X
X
10.0
00
50
20
30
A
Febru
ary
2004
Continuo
us
9.C
o-f
inanci
ng
of pro
motion m
ate
rials
, busi
ness
ga
therings
and b
usi
ness
netw
ork
ing
X
X
40.0
00
50
50
C
ham
ber
July
2003
C
ontinuo
us
10. Fo
undation o
f th
e P
rije
dor
Deve
lopm
ent
Age
ncy
X
X
X
X
X
250.0
00
60
20
20
M
unic
ipalit
y
Febru
ary
2004
Continuo
us
11. Fo
undation o
f th
e S
ME D
eve
lopm
ent
Fin
anci
al Fu
nd
(mic
ro-c
redit, gu
ara
nte
es,
subve
ntions)
X
X
X
X
300.0
00
70
30
Age
ncy
N
ove
mber
2003
April
2004
12. Fo
undation o
f th
e O
ne S
top S
hop –
eve
ryth
ing
ava
ilable
at
a s
ingl
e p
lace
X
X
X
30.0
00
50
30
20
Age
ncy
O
ctober
2003
July
2005
13. C
reation o
f Entr
epre
neurs
hip
Incu
bato
rs
X
X
X
X
X
220.0
00
50
30
20
Age
ncy
D
ece
mber
2003
Oct
ober
2004
14. C
reation o
f th
e B
usi
ness
Zone w
ith im
pro
ved u
tilit
ies
and infrast
ruct
ure
X
X
X
X
100.0
00
50
30
20
Age
ncy
O
ctober
2003
Oct
ober
2005
16. C
reation o
f R
ura
l Are
a D
eve
lopm
ent
Cente
r
X
X
X
X
X
200.0
00
70
20
10
Age
ncy
D
ece
mber
2003
Continuo
us
17. S
implif
ication o
f re
gist
ration p
roce
dure
s fo
r ne
w
com
panie
s
X
X
X
10.0
00
100
M
unic
ipalit
y
Oct
ober
2003
Continuo
us
18.C
onsu
ltin
g se
rvic
es
for
inte
rnationaliz
ation o
f busi
ness
X
X
50.0
00
60
20
20
Age
ncy
Fe
bru
ary
2004
Continuo
us
19.Intr
oduct
ion o
f vo
uch
ers
and o
ther
tools
for
support
for
dyn
am
ical S
MEs
(consu
ltin
g, p
repara
tion o
f PN
)
X
X
X
150.0
00
50
30
20
Age
ncy
Fe
bru
ary
2004
Continuo
us
20. S
upport
pro
ject
s fo
r qualit
y deve
lopm
ent
and
intr
oduct
ion o
f IS
O a
nd C
E s
tandard
s w
ith S
MEs
X
X
120.0
00
50
30
10
10
Cham
ber
Febru
ary
2004
Continu
ous
20
ENTREPRENEURSHIP AND SME DEVELOPMENT STRATEGY IN PRIJEDOR MUNICIPALITY
21. Pro
ject
s gr
oupin
g ente
rprise
s in
to n
etw
ork
s and
clust
ers
X
X
X
X
X
200.0
00
70
20
10
Age
ncy
April 2004
Continuo
us
22.O
rganiz
ation o
f a n
um
ber
of m
eetings
with S
MEs
from
neig
hboring
countr
ies
X
X
40.0
00
50
20
20
10
Cham
ber
April 2004
Continu
ous
23.S
upport
tow
ard
s in
tern
ationaliz
ation o
f S
MEs
to
part
icip
ate
in fairs,
exp
osi
tions,
confe
rence
s
X
X
100.0
00
20
20
10
50
Age
ncy
Fe
bru
ary
2003
Continuo
us
24.A
naly
sis
of hum
an r
eso
urc
es
and n
eeds
of S
MEs
and
larg
er
ente
rprise
s by
work
er
skill
s
X
X
50.0
00
80
20
Age
ncy
N
ove
mber
2003
May
2004
25.A
naly
sis
of th
e e
xist
ing
train
ing
and e
duca
tion
pro
gram
s
X
X
10.0
00
80
20
Age
ncy
N
ove
mber
2003
May
2004
26.D
eve
lopm
ent
of new
tra
inin
g pro
gram
s and
change
/adju
stm
ent
of th
e e
xist
ing
ones
to t
he n
eeds
of
SM
Es
X
X
X
X
X
50.0
00
80
20
Age
ncy
April 2004
January
2005
27.D
eve
lopm
ent
of fin
anci
al sc
hem
es
– s
ubsi
die
s fo
r jo
b
creation
X
X
X
X
100.0
00
60
30
10
Age
ncy
Fe
bru
ary
2004
June
2004
28.E
ntr
epre
neush
ip t
rain
ing
for
youth
X
X
X
X
50.0
00
70
20
10
Age
ncy
N
ove
mber
2003
June
2004
29.S
upport
to e
mplo
yment
of yo
ung
graduate
s
X
X
X
X
X
150.0
00
50
40
10
Age
ncy
M
arc
h
2004
Continuo
us
30. S
upport
to d
eve
lopm
ent
of su
pple
menta
ry r
ura
l act
ivitie
s
X
X
X
X
X
200.0
00
60
30
10
Age
ncy
April 2
004 C
ontin
uo
us
31.S
upport
to g
roupin
g and e
ntr
epre
neurs
hip
initia
tive
s fo
r w
om
en
X
X
X
X
X
50.0
00
50
25
25
Age
ncy
M
arc
h
2004
Continuo
us
32. S
upport
to e
mplo
yment
of dis
able
d p
ers
ons
and
pers
ons
with lim
ited w
ork
ing
abili
ty
X
X
X
X
200.0
00
50
40
10
Age
ncy
Fe
bru
ary
2004
Marc
h
2004
33. D
eve
lopm
ent
of sp
eci
al tr
ain
ing
pro
gram
s fo
r entr
epre
neurs
and w
ork
ers
fro
m v
arious
sect
ors
X
X
X
X
X
100.0
00
70
30
Age
ncy
D
ece
mber
2003
Marc
h
2004
34.D
eve
lopm
ent
of co
mpre
hensi
ve e
duca
tion p
rogr
am
s fo
r st
art
up e
ntr
epre
neurs
and for
schools
X
X
X
X
40.0
00
70
30
Age
ncy
D
ece
mber
2003
January
2005
35. D
eve
lopm
ent
of vo
cational tr
ain
ing
pro
gram
s fo
r adults
X
X
X
X
X
200.0
00
70
30
Age
ncy
Fe
bru
ary
2004
January
2005
21
ENTREPRENEURSHIP AND SME DEVELOPMENT STRATEGY IN PRIJEDOR MUNICIPALITY
Proposals for initial projectsPrijedor Local Economic Development Agency
22
ENTREPRENEURSHIP AND SME DEVELOPMENT STRATEGY IN PRIJEDOR MUNICIPALITY
Entrepreneurship Incubator Project
23
ENTREPRENEURSHIP AND SME DEVELOPMENT STRATEGY IN PRIJEDOR MUNICIPALITY
Agriculture Cluster Project
24