table of contentspdf.usaid.gov/pdf_docs/pa00mk27.pdfpartnership for innovation activity final report...

PARTNERSHIP FOR INNOVATION ACTIVITY FINAL REPORT | 2

TABLE OF CONTENTS ACRONYMS .................................................................................................................................................. 31. INTRODUCTION ................................................................................................................................... 4

1.1. Development Challenges and How PI Addressed Them ........................................................................ 51.2. Key Achievements ........................................................................................................................................... 6

2. ACTIVITY RESULTS ................................................................................................................................ 72.1. Summary Results .............................................................................................................................................. 72.2. Progress on Achieving Activity Target Results ......................................................................................... 8

3. ANALYSIS BY AREA OF ASSISTANCE ............................................................................................. 93.1. Employable Bosnian Youth – PI’s Youth Training and Internship Programs ...................................... 9

3.1.1. Work Ready Now! .................................................................................................................................. 93.1.2. “Moja Praksa” ......................................................................................................................................... 113.1.3. Advanced ICT Trainings ....................................................................................................................... 153.1.4. Startup Assistance Program ................................................................................................................ 17

3.2. SME Competitiveness Support Programs ................................................................................................. 203.2.1. Advanced ICT Trainings and ICT Boot camps ................................................................................ 213.2.2. Product Development and Access to Markets Support ............................................................... 223.2.3. Support to ICT Associations ............................................................................................................... 243.2.4. ICT Fairs and Conferences .................................................................................................................. 26

3.3. Cross Cutting Initiatives ............................................................................................................................... 293.3.1. Support to ICT-related Activities and Events ................................................................................. 293.3.2. Gender Considerations ........................................................................................................................ 30

4. CAPACITY BUILDING TO PARTNER ORGANIZATIONS ...................................................... 335. LESSONS LEARNED AND RECOMMENDATIONS .................................................................... 34ANNEX 1: ACTIVITY TARGETS – PERFORMANCE INDICATOR WORKSHEET ................ 38


ACRONYMS

B2B Business to Business

BDM Business Development Manager

BIC Business Innovation Center

BiH Bosnia and Herzegovina

BAN Business Angels Network

BIP Business Innovation Programs

BIT Business Innovation and Technology Center in Tuzla

BWBB BW Business Bridge

CAD Computer-Aided Design

CAM Computer-Aided Manufacturing

COP Chief of Party

DCOP Deputy Chief of Party

EDC Education Development Center, Inc.

ERP Enterprise Resource Planning

EQUIP3 Educational Quality Improvement Program: Earning and Learning for Out-of-School Youth

EU European Union

ICBL Innovation Centre in Banja Luka

ICT Information and Communication Technology

INTERA INTERA Technology Park in Mostar

IUS International University of Sarajevo

PI Partnership for Innovation

REG Regional Economic Growth

PREDA Prijedor’s Development Agency

SEE IT South-East European Information Technology

SIBL Student Internship Program in Banja Luka

SME Small and Medium Enterprise

SQL Structured Query Language

TA Technical Assistance

YES Youth Employment Services

US United States


1. INTRODUCTION

Launched on August 23, 2011, the Partnership for Innovation Activity (PI) utilized the information and communication technology (ICT) as part of USAID’s efforts to address the skills gap, generate employment and promote the expansion and competitiveness of small and medium enterprises (SMEs) from Bosnia and Herzegovina’s (BiH) ICT sector.

PI primarily focused on achieving two critical objectives in BiH:

(a) Enhance employment among young market entrants (also referred to as ‘youth’) in BiH, by building their ICT and soft skills to enable them to exploit new employment opportunities; and

(b) Strengthen small and medium enterprise competitiveness and productivity by increasing SMEs’ effective use of value-added ICT and their ability to offer new, high value-added ICT products and services that respond to market demand.

The project achieved these objectives by supporting various training, internship, mentorship, private sector engagement and SME competitiveness strengthening initiatives. The project approach was based upon two critical principles: (1) it was demand-driven, as all programs were designed or modified based on market analysis and direct feedback from SMEs and educational partners; (2) it created valuable forums and processes that would ensure there were sufficient incentives for all stakeholders (youth, SMEs, training providers) to carry out these forums and processes long after the project has been completed.

The PI interventions targeted ICT sector SMEs and SMEs in other sectors that use ICT for their core operations. PI interventions were able to achieve nationwide impact by concentrating on four major geographic areas with flourishing business and university activities – Sarajevo, Banja Luka, Tuzla and Mostar. All PI activities responded effectively to two target markets: SMEs and young market entrants, particularly university students, out-of-work university graduates, and out-of-school secondary school graduates. A demand-driven approach underlined all PI activities and the project ensured that the youth receiving certification were trained in skills that are in demand by local businesses.

PI focused its activities in two areas:

• Supporting young market entrants to improve their work readiness and ICT skills and exploit new employment opportunities

• Supporting SMEs to adopt and better utilize latest ICT technologies and processes to improve their efficiency and competitiveness


The PI activities were located in four major geographic areas – Sarajevo, Banja Luka, Tuzla and Mostar – chosen because of the growing businesses, secondary schools and university activities in these areas.

In each area the project cooperated with four local partner organizations to provide these bridging activities for prospective young market entrants; particularly university students, out-of-work university graduates, and out-of-school secondary school graduates who had an interest or training in ICT. The partners included Business Innovation and Technology Center in Tuzla (BIT), Innovation Center Banja Luka in Banja Luka (ICBL), INTERA Technology Park in Mostar (INTERA), and the International University of Sarajevo in Sarajevo (IUS).

1.1. Development Challenges and How PI Addressed Them Prior to and during 2011, USAID identified the following economic development challenges including those particularly affecting the BiH ICT sector:

• The unemployment rate hovering at above 500,000 persons with women and youth being most affected

• Unemployment disproportionally affecting young people fresh out of school who have knowledge and skills that do not correspond to private sector needs

• The formal education system needs to be complemented by learning/training systems offering training standards and certifications that are recognized by employers

• BiH SMEs need to dramatically improve their efficiency in order to sustain market pressures and preserve jobs

• BiH SMEs suffer from inadequate use of ICT • Improvements in efficiency without significant capital investment can only come from better

application and optimization of existing ICT technologies and improved management processes

• Due to their small size ICT SMEs cannot afford to have in-house research and training services, while the existing education system does not provide the labor force with adequate skills, thus requiring firms to invest in training of staff upon hiring

• BiH ICT sector is fractured and dominated by small software and hardware developers/vendors, and companies need to acquire skills in managing large and complex projects

• Young people in BiH need to obtain relevant, competitive skills and also need encouragement and support to fully develop their potential for innovation and entrepreneurship

In order to address these challenges, PI developed several work force development activities focused on unemployed youth and technical staff from ICT SMEs. In line with its demand driven approach, PI designed and launched the student internship program, “Moja Praksa”, a 6-week training program based on EDC’s “Work Ready Now!” (WRN!) curriculum, as well as a series of topic specific advanced ICT trainings, product development, and access to markets events and conferences. All of those activities and their results are described in greater detail in later parts of this report.

The original PI project design was based on the premise of creating self-sustaining ‘Business Innovation Centers’ (BICs) run by local BiH organizations. The BICs were expected to provide training and internship services for youth, as well as to help SMEs identify new markets and adopt new ICTs. As the PI activity evolved over Year 2, it became apparent that this model was not likely to be sustainable for a variety of reasons. First and foremost, most of the host organizations were supported by either the government, donors, or both, and the idea of generating a substantial base of fees from youth and


SME clients to support a wide array of operating costs was increasingly seen as problematic and untenable. Furthermore, it also became apparent that it would be very difficult for BICs to develop a sound-market oriented approach that would clearly segregate USAID-funded assistance and services from other programs and make them noteworthy.

The alternative idea to create separate BIC units within existing host organizations was also dismissed as EDC and USAID agreed that eventually having one market-oriented and self-sustainable unit would not make a critical difference at the organizational level.

As a result, in early 2013, USAID and EDC agreed to redesign the original project description, with the resulting focus on direct development and execution of training and internships for BiH youth and SMEs, establishment of a Business Angels Network (BAN), strengthening ICT associations, assisting SMEs with product development and marketing, sponsoring ICT fairs and conferences, and organizing ICT boot camps.

Following the project redesign, PI moved to work directly with local technology centers, SMEs and ICT business associations on designing and executing the above listed activities in a collaborative way that ensured that all programs responded to identified skills gaps and prioritized current workforce and business development needs of local SMEs.

1.2. Key Achievements

EDC is pleased to report that the PI Activity achieved and/or exceeded all of its targets (please refer to the indicators table in section 2.2.). During the course of the program, PI achieved the following:

1. Conducted a series of market assessments in the first year of operation, through face-to-face interviews with companies and an online questionnaire to assess the needs of youth and of SMEs. As a result PI was able to identify the training needs of stakeholders, and design the beginnings of the Student Internship Program which formed the basis for future work.

2. Attained nationwide impact initially by concentrating on four major geographic areas with flourishing businesses and university activities: Sarajevo, Banja Luka, Tuzla and Mostar, but later expanding its support to include Prijedor, Tesanj and Bjeljina regions.

3. Designed, piloted and executed a series of unique internship programs titled “Moja Praksa”, totaling 29 semester cycles for 1,473 youth in four of BiH’s largest cities.

4. Adapted and executed the pilot soft skills program “Work Ready Now!” in BiH for 200 youth in the four largest cities.

5. Designed and executed 42 ICT trainings for youth for close to 733 unemployed participants. 6. Designed and executed 84 advanced ICT trainings and workshops for SMEs for more than

1,117 programmers and engineers from 351 local companies. 7. Introduced several “first ever” training programs in BiH such as SCRUM, the globally relevant

software project management methodology, and SWIFT, the programing language for Apple devices.

8. Conducted a number of capacity building activities for local partner organizations including consultancies, trainings, and training of trainers programs.

9. Facilitated the first EU market certification for BiH software development companies. 10. Executed 12 access to markets and business to business conferences with an aim of facilitating

regional cluster cooperation and expansion of local and international market opportunities for BiH ICT firms.


11. Provided support for a number of youth and industry relevant events, competitions and conferences including the Global Entrepreneurship Week 2013, Hackathon 2015, BH ICT Olympiad, and Geek Fest.

2. ACTIVITY RESULTS

2.1. Summary Results

The listing below represents a short summary of PI results achieved by December 31, 2016, and is summarized below in Figure 1.

Ø 2,406 youth completed PI supported internships and trainings programs Ø 1,047 (44%) women completed PI supported youth internships and trainings programs Ø 3591 youth obtained jobs shortly following completion of PI supported programs Ø 351 SMEs received business development assistance Ø 1,117 programmers and engineers completed PI supported advanced ICT training programs Ø 223 assisted SMEs reported improved profitability Ø An average of 5% increase in sales reported by assisted SMEs

1 Many interns were not in a position to look for a full-time employment immediately after the internship as some were underclassmen who had to return to university to complete their studies.

Figure 1. PI Activity Results


2.2. Progress on Achieving Activity Target Results

The table below provides a breakdown and percentage of completion for all expected results established at the beginning of the redesigned PI Activity program:

# PI Indicator Description

End Project Targets incl. Extension

Period

Completion Status at the End of the PI Activity

Result % of Completion

1 2.1 a Total number of direct jobs resulting from USAID assistance 340 359 106%

1a Female youth employed or better job position obtained 116 130 112%

1b Male youth employed or better job position obtained 224 229 102%

2

2.1 d Proportion of female participants in USAID assisted programs designed to increase assess to productive economic resources

37% 44% 116%

3 2.1.3.2.-1 Number of SMEs that reported improved profitability resulting from the use of value-added ICT

220 223 101%

4 2.1.1.-1 Annual percent change in sales of USAID assisted private enterprises 2 % 5% n/a

5 2.1 b Number of private enterprises improving management practices as a result of USAID assistance

330 351 106%

6 2.1.3.3.-1 Number of youth participating in PI Activity supported programs

2260 2406 106%

6a Female participants in PI Activity supported programs 836 1047 125%

As evidenced from the table above, there is quantitative evidence to show that the PI Activity reached or exceeded all of its planned results.

The detailed tables from PI’s M&E Plan with breakdowns for each project indicator, as well as information on data source and method of data collection, are provided in Annex 1: Activity Targets – Performance Indicator Worksheet.


3. ANALYSIS BY AREA OF ASSISTANCE

3.1. Employable Bosnian Youth – PI’s Youth Training and Internship Programs

One of the key obstacles for employment of youth with ICT skills and educational background was their lack of advanced skills and practical experience combined with the unwillingness or inability of most SMEs to devote resources for internal education and professional development of such young labor market entrants.

The Employable Bosnian Youth interventions were aimed at providing bridging activities for youth for the purpose of delivering an “Employable Bosnian Youth” (EBY) to the local job market. An EBY was defined as an ICT specialist with a set of skills and practical workplace experience that would allow him/her the shortest possible adaption time to the work setting at local SMEs. Hence, the PI-supported delivery of EBYs to the job market quickly addressed one of the key growth obstacles for BiH SMEs identified in the PI Activity Baseline Assessment Report.

The execution of most EBY programs was outsourced to local private training service providers and not-for-profit training centers. Positive effects from delivery of these programs created sufficient incentive for these organizations to continue with similar programs after the PI Activity ended. EDC appointed one Business Development Manager (BDM) who supervised the development and early implementation of these programs in each region.

The Employable Bosnian Youth ‘bridging youth to work’ interventions addressed both of these obstacles through three primary activities listed below. The targeted youth population participated in one or more of the EBY activities depending on their skill levels and deficiencies (i.e. lack of practical experience or knowledge of a specific advanced software program). The three activities were 1) Work Ready Now! work readiness training, 2) “Moja Praksa” internship program, and 3) Advanced ICT Trainings.

3.1.1. Work Ready Now!

The results of the market assessment surveys conducted during the first year of PI, in 2011, showed that in regards to business and soft skills, most companies miss skills related to innovation, teamwork, marketing and sales, and leadership.


Work Ready Now (WRN!) was not part of the original design on PI. However the redesign of 2012/13 recognized the value of providing young people and adults with specific work-related skills in order to be successful as entry-level workers in any formal sector business or industry or in any informal sector livelihood. Adaptation workshops took place in late 2013 to have the curriculum ready for 2014. Through local training provider partners, PI implemented a pilot series of Work Ready Now! (WRN!), EDC’s work readiness trainings during 2014 and 2015. EDC uses the term “work readiness” to refer to specific work-related skills that young people and adults need to be successful as entry-level workers in any formal sector business or industry or in any informal sector livelihood. These skills are generally thought of as life skills with a strong work focus, and include work habits and conduct, personal leadership, communicating with others, teamwork and collaboration at work, health and safety at work, rights and responsibilities of workers and employers, and customer service. The curriculum is comprised of eight modules and takes 44-100 hours to implement, depending on the modules selected for the project. The WRN! Curriculum has been implemented in 20 countries since 2008.

The WRN! Curriculum is always adapted to the local context. The curriculum had recently been tailored for USAID-funded activities in Southeastern Europe, and this version was further revised for use in the PI Activity. PI conducted a design workshop with key stakeholders from different BiH regions to ensure that the adapted curriculum included skill sets desired by local employers.

The workshop was attended by leading ICT sector employers (outsourcing firms and software development SMEs), local partner staff, trainers, and youth. The curriculum adaptation was managed by an international curriculum and training specialist in conjunction with local staff in December 2013. The full process of adaptation and translation took approximately two months. The final product covered six modules in 65 classroom hours. Following adaptation, the international curriculum and training specialist implemented a Training of Trainers to partner organizations (Innovation Center Banja Luka, Business Innovation and Technology Center, INTERA Technology Park, and International University of Sarajevo) in early April 2014. Upon completion of the Training of Trainers, the WRN! implementation by local partner organizations began in June and July 2014.


The first cycle of WRN!, EDC’s work readiness program, for 26 unemployed youth from Mostar region was completed in August 2014

Between June 2014 and August 2015, eight WRN! trainings were executed in the four target locations: Banja Luka, Sarajevo, Mostar and Tuzla. Two hundred young people successfully completed the program, passed the final tests, and received digital credentials and paper certificates.

Out of 200 participants that have completed the program, 33 have obtained employment shortly following participation in the WRN! program. The majority of new jobs were obtained at ICT SMEs including at firms who hosted our “Moja Praksa” internship program (discussed below).

3.1.2. “Moja Praksa”

Initially PI designed and implemented the Student Internship Program in Banja Luka (SIBL). This was supported by six companies and attended by 47 high school and university students in the summer of July 2012. The design of the SIBL took a tremendous amount of time and effort to design and implement. PI brought together schools, universities, public authorities, private companies and ICBL to work towards a common goal. This successfully provided the base for future internship programs.

During the redesign period in 2013 the internship program thinking was improved and became the highly successful ”Moja Praksa” Internship program (www.mojapraksa.ba) which was envisioned as an innovative, semester-long ICT-based internship program that included lectures, trainings, teamwork and individual work on real projects for clients. The internship was divided into two parts. The first part was theoretical and given in lecture format by a university professor or one of PI’s partner institutions. The theory covered the big picture of the ICT sector and included networking

opportunities where future interns met CEOs of various ICT companies and learned about the work these companies did in the industry. In addition the theoretical component, “Moja Praksa” also covered the soft skills necessary to thrive in an office environment. After the completion of part one of the internship, all interns filled out questionnaires to find out their opinions on different programming languages and therefore match them with the most appropriate ICT company.


The second part of the internship was purely practical. Interns were placed in a company and assigned a mentor from the company. For many interns, this was the first time they had the chance to apply the theories that they learned in the classroom.

As one intern explained, “In faculty, there is no practical part of lectures, which leads to a disconnect between the skills the students are learning in university and the skills that are needed once they graduate and enter the job market. The same intern went on to explain that, “The number one problem is the integration of our education to actual jobs.”

This was the rational behind the creation of the “Moja Praksa” program and the reason for its success. The objective was to offer training and practical experience to youth in technical and soft skills, and upon completion of the program, those youth would be able to offer these skills to BiH ICT and ICT-based industries. The work was defined by the employer and built on existing skills and knowledge. Participants had the opportunity to practice what they knew in theory, and to acquire the practical attributes required by employers in the workplace, which were relevant to specific jobs. Interns performed actual tasks under a supervisor thus making them more employable after the internship.

This demand-driven program was developed during early stages of the PI Activity and later executed in Sarajevo, Banja Luka, Tuzla and Mostar.

The PI Business Development Manager (BDM) in each region was tasked to work closely with local providers and SMEs to identify projects and project teams suitable for internships and to coach them through the process. Bosnian SMEs participated by providing projects and mentors for this program. Once the business had committed to participate in the “Moja Praksa” program, it was important to carefully plan the experience together. This required the participation of managers, as well as the operational personnel from both sides. BDMs conducted interviews with SMEs and visited the workplaces in advance of placing the internship participants in the workplace. PI established manuals and tools for SMEs absorbing students and for the partner organizations channeling students into the program. The manual provided guidelines to partner organizations on what documentation to use during the implementation, how to conduct the matchmaking between the companies and students, and how to effectively monitor the implementation of the program.

Presentation slides from the intern group at INOVA’s on Creating WEB-GIS maps for public use.


Following recommendations from a series of design roundtable forums and workshops, PI designed and implemented the initial pilot of the Student Internship Program in Banja Luka (SIBL) in July 2012 which, supported by six companies, was completed by 47 high school and university students.

The pilot program served as the blueprint for a successful launch of the nationwide internship program that started in Banja Luka, Tuzla and Mostar in late summer and early fall of 2013, following PI redesign. The program in Sarajevo started in the spring of 2014 following the selection of the International University of Sarajevo (IUS) as the project’s partner organization in Sarajevo.

Ceremony to mark the completion of the first cohort of the “Moja Praksa” internship program in Sarajevo region, IUS – June 2014

In order to increase interest in the program and increase the enrollment of skilled candidates, PI conducted successful presentations of the “Moja Praksa” internship program at several student job fairs and career events in Sarajevo, Banja Luka and Mostar in 2014 and 2015.

Job fair presentation of “Moja Praksa” in Sarajevo – November 2014

Since its inception, PI executed a total of 29 cycles of “Moja Praksa”, one in each target region during each spring and fall semester from fall 2013 to the end of 2016. A total of 1,473 youth completed internships during this period.

“I was lucky to have a knowledgeable and dedicated mentor and I believe that this experience was of great significance for our student team as the practical knowledge that we have acquired during the internship provided an excellent basis for our further professional and technical development.”

– Zagorka Starčević


Example of Interns’ Live Projects for Clients

Training bank customers to use information system “E-nova” GIS software used in spatial planning, geodesy, and infrastructure Testing and graphic redesign of application software Creating WEB-GIS maps for public use Designing WordPress themes Promotion and sales or social media campaigns Frontend and backend website and web portal development Graphic Design Information system development AutoCad mapping Customization of open source platforms Development of City Guides Database development Document management system using mobile devices Banking mobile application on an iOS platform File management system for mobile devices Configuration and installation of Cisco network equipment Cross-browser testing Automation testing for a web or mobile application using agile methodology Smartphone/cloud-based platform for quality assurance and control Professional development of IT webinars for teachers in BiH

Importantly, participation in the “Moja Praksa” internship program was accepted as valid coursework at five local faculties: Faculty of Information Technology at University Džemal Bijedić (located in Mostar), Faculty of Machine Engineering and Computer Science Faculty of Economics at the University of Mostar, Faculty of Economics at the University of Tuzla and the International University of Sarajevo.

Group photo following the certification award ceremony held in January 2015


Close to one in five interns were placed in full-time jobs after their internship program ended. It is important to note, however, that many interns were not in a position to look for full-time employment immediately after the internship, as some were underclassmen that had to return to university to complete their studies. However, the internship benefitted all youth regardless of whether they were offered full-time employment. The practical experience they gained and the transferrable skills they learned while working on real projects will stay with them as they continue their studies or look for employment with other companies. In addition to the practical experience and the certificate of completion, all interns started to develop a network within the local ICT industry and can utilize that network as they look for new and better employment opportunities in the future.

3.1.3. Advanced ICT Trainings

As a result of the market assessments conducted by PI in the first year of operation, PI was able to develop a prioritized menu of training needs of stakeholders, both SMEs and youth. These served as the basis for the definition of catalogue of trainings for the project.

The PI Activity supported and organized trainings for young market entrants in specialized ICT programs that were market demand driven. Over the course of the Activity, PI staff collected feedback from leading ICT sector employers (including outsourcing firms and software developing SMEs) and used that information as a basis for selecting the curricula for advanced ICT trainings. The programs were reviewed by PI and its SME stakeholders and adjusted on an annual basis to ensure their relevance in the constantly changing ICT industry.

The PI Activity worked closely with SMEs to select suitable curricula for the EBY participants. The trainings focused on skills including but not limited to programming, web design, management of software development projects, networking, and database and enterprise management software.

Following the PI Activity redesign in mid-2013, PI decided on the number of advanced ICT trainings to be delivered to Employable Bosnian Youth. One of the first activities started in Prijedor when an initial skills assessment was completed in collaboration with Prijedor’s Development Agency (PREDA) during November and December 2013. After determining the requirements for future staff of local ICT SMEs, PI developed and executed two training programs in 2014, one in programming language C for 20 unemployed youth, and the second in Adobe InDesign software for 11 unemployed youth.

Adobe InDesign software programming training graduates in Prijedor – June 2014


During Year 3, PI organized, supported and executed five youth ICT trainings in various regions of BiH. One hundred and nine young people successfully completed these training programs, learning more about development of web applications using HTML, Ruby, PHP, Android and iOS. In parallel, PI supported the execution of a series of lectures and trainings in advanced computer programming for ICT gifted youth through the “BiH Informatics Olympiad”. From April – June 2014, 143 high-school students completed trainings.

iOS development bootcamp in Sarajevo – August 2014

During the following year, PI executed six ICT training programs in Sarajevo, Banja Luka, Mostar, and Tuzla. Eighty-one skilled, unemployed youth completed ICT trainings in advanced software solutions such as ASP.NET, C++, Swift, WordPress, Android, and Visual Studio.

During Year 4, PI also continued to support the “BiH Informatics Olympiad” program. Forty-six students completed a series of lectures and trainings in advanced computer programming during the April – June 2015 period.

In Year 5, PI executed six ICT training programs for youth in all regions. Sixty-four skilled, unemployed youth participated in trainings that included HTML, CSS3, Android, Sound Design, and Ajax/jQuery programming methodologies and frameworks. One of the trainings in web development techniques was delivered to youth with disabilities.

Frontend Ajax/jQuery development training in Sarajevo – March 2016


In spring 2016, PI collaborated on the design of a special ICT training program for youth with disabilities with the Prijedor-based United Way foundation. The market research conducted by United Way foundation and PREDA identified employment opportunities and constraints for youth from Prijedor with a specific focus on young people with disabilities (aged 15 to 35 years). Their feedback demonstrated a significant demand for website development for SMEs and other organizations in the region. The six-week training program focused on the application of Joomla Webpage Content Management System (CMS) for business purposes and was completed in May 2016. Twelve youth completed the program and mastered the basic techniques in the field of Joomla CMS for creating functional websites. Two people from this group have reported employment following the training while United Way continues to assist others in their job search. The inspiring story2 about one of the trainees was featured in “Dnevni Avaz”, the daily newspaper with the largest circulation in BiH.

USAID Mission Director Peter Duffy and Bojana Bojanic, Director of United Way foundation presenting the Certificate of Completion to Nina Banovic in Prijedor on May 19, 2016

During the project’s extension period (September – December 2016), PI designed and executed six ICT training programs for 75 unemployed youth in Sarajevo, Banja Luka, Mostar, Tuzla, and Prijedor on topics including mobile application development, “smart devices” programming and automation, 3D motion graphics, Lego robotics, and “Internet of Things”.

3.1.4. Startup Assistance Program

BIZOO Business Startup Accelerator and Business Angels Network

PI supported the establishment of a Business Angels Network (BAN) and ran an accompanying Business Startup Accelerator called BIZOO. Centar za zaposljavanje mladih (or Youth Employment Services, YES), the PI implementing partner for this activity, officially launched the BAN and the accelerator in July 2013.

2 Full story available here: http://www.avaz.ba/clanak/260558/najsretniji-dan-mi-je-bio-kada-sam-dobio-placu


The objective of BIZOO was to nurture and support innovative business and technology startups operated by young Bosnian entrepreneurs. Program participants had the opportunity to develop their business idea to the point that they were going to be ready to enter the accelerator.

Applicants who entered the accelerator were given two months to work on their idea while BIZOO provided them with office space, mentoring, and assistance with business strategy and prototyping, as well as $20,000 of in kind support in Google services for the best startup. After graduating from the accelerator, the young entrepreneurs participated in a Demo Day where they pitched their startups to potential angel investors.

For 15 months, YES delivered the startup accelerator program to a total of 27 early stage startups in three separate cycles and a total of 15 startups graduated. In order to graduate, the participants had to attend at least 60 percent of the programs and mentoring sessions. They also had to have a viable product by the end of the program, as well as a developed business model. YES signed up 13 investors for its Business Angels Network and delivered 600 hours of training to around 50 startup entrepreneurs with the help of 14 volunteer mentors. Four investments were offered to BIZOO graduate startups, and one investment was finalized in November 2014.

YES created and executed an Outreach Plan in order to reach a larger audience. YES also received funding from the US Embassy in Sarajevo and launched a brand awareness campaign in order to promote BIZOO. They conducted student outings called BIZOO Safari, which transported students to different towns and tech companies to see successful entrepreneurs at work. The Safaris connected students with the existing IT infrastructure such as technology parks, incubators, and established tech companies. PI’s outreach support resulted in YES receiving more than 150 applications for the second and third acceleration cycles.

The second cycle of the Business Startup Accelerator (March – May 2014) was fairly successful as two of the program’s graduates, LightDocs and YuTransfer, competed and finished in the top three at the international ICT entrepreneurship event, For the Win (#SarajevoFTW). For the Win was a high profile conference attended by influential people from the tech world, which was held in Sarajevo in May 2014. The two startups subsequently won exhibitor packages to TechCrunch Disrupt conference held in London in October 2014.


Winning duo, Light Docs, giving a speech after the #SarajevoFTW conference

Despite this promising successes, YES faced challenges in meeting its contractual targets with the PI Activity. PI provided additional technical support to YES to help remedy the situation and drew upon the expertise of two international consultants, Kingsley Aikins and Max Gurvits, with extensive experience supporting startups and Business Angel Networks in the region to support YES’ efforts to meet its investment targets. Kingsley Aikins taught YES staff how to effectively leverage diaspora networks for investment. The second consultant, Max Gurvits, provided a comprehensive assessment of BIZOO/BAN along with a clear roadmap for YES to follow in order to create a viable Business Angel Network.

For the accelerator program, BIZOO was advised to acquire more experienced entrepreneur mentors who understand the specifics of building startups in a challenging cultural and economic environment like BiH. For the BAN, BIZOO was advised to expand from targeting only IT company owners and executives to recruiting accomplished businesspeople and investors from other sectors. It was expected that these high net worth individuals would have the capital and incentives to invest in the start-ups and participate actively in BIZOO over the long-term.

BIZOO was advised to undergo a prioritization of tasks, the implementation of new operational goals, as well as rapid commitment level correction and improvement by BIZOO staff. The key issues to be resolved were the increase of project focus by the BIZOO CEO and the setup of a pipeline sales process to identify, validate, and attract up to 30 angel network members from among several hundred applicable candidates in BiH and among the Bosnian diaspora abroad. In the meantime, YES completed the third cycle of the Business Startup Accelerator (July – September 2014) supporting nine more early stage startups.

Creating a vibrant and effective BAN and investing in startups through the accelerator was considered at the time as innovative and nascent. YES worked for 15 months in an attempt to achieve goals established in the agreement, but unfortunately was not able to achieve results for two critical indicators, and EDC decided to terminate its subgrant to YES in November 2014.

ICT Conferences for Startups

In parallel, PI supported a number of startup events and conferences among which was the first Regional IT and Entrepreneurship Conference held in Banja Luka in December 2012. The regional


conference was co-organized by ICBL, USAID Regional Competitiveness Initiative, and PI, and it marked the first time that entrepreneurship was discussed in Banja Luka.

PI also provided support for startup organizations through Startup Weekends in Banja Luka and Sarajevo in November 2012. A Startup Weekend consists of an intensive training program where every participant is given 54 hours to prepare their ideas to pitch to judges. Throughout the 54 hours, participants receive finance, marketing, tech development, and business canvas model support from mentors. All participants vote for the top 10 ideas, and the winners get prizes such as free working space, discounted hosting services, mentoring support, or seed money. All students from technical faculties in the respective cities were invited to participate. PI continued its support to startup activities in 2013 with the first Startup Weekend in Tuzla held in May 2013.

The 2013 Global Entrepreneurship Week was marked in BiH by the organization of an all-day media event at BIZOO premises in Sarajevo on November 19, 2013, featuring lectures, youth entrepreneurship presentations and leaflet distributions.

3.2. SME Competitiveness Support Programs

SMEs in the BiH ICT sector can be categorized into three groups: 1) larger-size outsourcing programming providers, 2) medium size software developers focused on local and regional markets, and 3) small firms focused on web design and other lower complexity ICT services. All three types of SMEs share some challenges, but each group also faces unique challenges. The first group primarily needs skilled programmers, which are generally scarce in the BiH labor market, and they compete with each other for this scarce talent. The second group needs product development support and/or support to access international markets. The third group has a range of business development assistance needs, particularly technical, financial, and workplace and communications skills, which are needed to increase quality of

Figure 2: PI's five SME competitiveness support programs


services, expand services, broaden client base, and ultimately add new jobs.

More generally, SMEs in BiH from the ICT sector, and SMEs from other sectors that utilize ICT in their processes, lack skills in numerous areas including software development, web development, system engineering, and SQL server administration. In addition to technical skills, certain limitations and gaps have been identified by SMEs in terms of business skills – sales and marketing analysis and techniques, communication and presentation skills, teamwork and problem solving skills and planning.

To address these gaps, the PI Activity implemented five SME competitiveness support programs: 1) ICT boot camps, 2) advanced ICT trainings, 3) product development and access to market support, 4) support to local ICT associations, and 5) ICT fairs and conferences as illustrated in the figure seen here.

3.2.1. Advanced ICT Trainings and ICT Boot camps

PI’s baseline assessment showed that the key competitiveness constraint for BiH ICT SMEs is the technical skill gap and the resulting inability to quickly absorb and apply advanced technology in business operations.

During the course of the project, PI was able to address those constraints through the delivery of 84 trainings and workshops for 1,117 developers, engineers and managers from 351 local firms. Several of the programs were the first of their kind in BiH including SCRUM, the ICT project management methodology, and SWIFT programming for Apple devices.

SWIFT programming training session in Tuzla – August 2016

PI-supported programs provided opportunities for upgrading advanced technical skills, methodological skills to improve efficiency, and skills in technology screening, including advanced equipment and applications.

PI designed and implemented a series of advanced ICT trainings and boot camps for SME staff. ICT boot camps were workshop-style events held during the course of five to seven days in a classroom setting with a limited number of attendees (10-15 people), while PI trainings often included a larger number of attendees in trainings that were delivered in shorter periods of time over several weeks.


Training topics were selected following the feedback from SMEs as PI ensured that its SME assistance program was “demand driven” and responding to current needs of beneficiaries and, especially, that they were able to address specific skills deficiencies that were impeding SME growth and their ability to respond to the current market demand from EU and US based clients for software development services. SME trainings in agile methodology, Java, iOS programming for Apple devices and trainings that enabled “SCRUM Master” certifications were specifically cited by SMEs as the most useful in their quest to expand client base and lend long term services contracts.

3.2.2. Product Development and Access to Markets Support

PI’s post redesign survey and analysis showed that the majority of ICT SMEs that focus on software development mostly cater to local corporate or government clients. Nevertheless, managers from leading ICT firms expressed the belief that some of their flagship software products could be competitive in regional and international markets as well.

PI supported their efforts to improve and market those products internationally by providing continuous technical assistance and expert consultants for different stages of that process. This included, for example, assisting SMEs to identify key customer segments, rapidly respond to evolving trends and customer demands, optimize software development, strengthen production and distribution processes, and improve the SMEs’ business processes and marketing strategies. PI organized Business-to-Business (B2B) matchmaking events with potential clients from the EU and USA for BiH SMEs focused on software development as well as for those that provide services to outsourcing clients. Support for presentations at key industry fairs was given in collaboration with the BIT Alliance and newly emerging industry association(s). As such, PI helped identify potential clients for SMEs as part of the effort to improve product development and access to markets for BiH SMEs.

Some notable activities included:

DVC Solutions is a prime example of a SME that benefitted from PI’s advanced ICT trainings. The company, based in Banja Luka, specializes in creating advanced software solutions and providing services in web development, mobile applications, intelligence management, and marketing. DVC Solutions’ founder, Bojan Vuković, appreciated the opportunity to gain additional knowledge and skills through these trainings and was enthusiastic for the prospect of improving his company through networking, knowledge sharing and discussions with other trainees. He says that the company recognizes the importance of creating a system in BiH to improve cooperation between different cities and regions and different professionals and companies, as well as to connecting young graduates to the ICT industry and sharing and transferring knowledge and experiences.

In addition to receiving training through the PI Activity, DVC Solutions hosted five cycles of youth through the “Moja Praksa” internship program, including 25 young people. Bojan highly praised PI, including the platform it provided for youth to work on software solution projects for customers in different sectors, including local community businesses, telecom operators, mobile technology, local government and public safety.

“This program gave us a chance to find better people who want to be [the] best in industry,” Bojan says. “This cooperative with USAID gave us credibility with our clients who knew about the PI project. This project gave young people the opportunity to find a way into the industry; it opened doors.”


Ø PI organized and executed an international market certification training for 11 BiH ICT SMEs in May 2015. As a result, several PI-supported SMEs pursued the critical BW Business Bridge (BWBB) Certification for entering Germany’s ICT services market with two firms, Infonet Tuzla and Ping Sarajevo, managing to complete the lengthy process by early 2016.

Training for Germany’s BWBB Certification in Sarajevo – May 2015

Infonet and Ping worked closely with PI’s international consultant on developing their individual approach towards completing steps in satisfying numerous requirements for the German market certification process.

Ø PI completed a series of product development trainings in September 2015 and March 2016 in Tuzla, Sarajevo, Banja Luka, and Mostar. A total of 51 programmers from 42 SMES attended the four trainings that were designed and executed for both newly established and mature companies seeking to generate growth from existing and new products and services in domestic and targeted foreign markets.


SME sales and marketing staff during the product development training in Tuzla – September 2015

Participants learned how to develop and test their new and existing products with an emphasis on creating products that fit market needs. They gained more knowledge about different processes and stages, competitors and market research, and the importance of an innovative mind set and business and people skills.

From 2014 to early 2016, PI supported the organization of 10 B2B and access to markets events and conferences with more than 600 participants from more than 150 local and international SMEs, ICT clusters, and business associations. These conferences and events served as platforms for facilitation of business linkages between local and international firms and clusters and especially the promotion of the use of ICT-based solutions for business processes in BiH traditional industry sectors. More detailed information on those events is provided in section 3.2.4.

3.2.3. Support to ICT Associations

The 2013 redesigned program description for the PI Activity envisioned that the project would provide technical advisory support to relevant industry association(s) and to newly emergent ones with a focus on developing the associations’ internal capacity for outreach to new members and conceptualizing and developing policy-related initiatives, organizing learning programs, and executing access to market activities on behalf of their member SMEs.

By early 2014, two associations emerged; Bosnia Agile Association and the initiative committee for the BIT Alliance Association, which was formed with six leading Sarajevo-based firms.

Bosnia Agile Association Bosnia Agile Association was interested in developing a technical collaboration with the PI Activity and requested that PI provide technical and on-site support for preparations and delivery of various training programs and conferences for BiH SMEs and developers. PI recognized Bosnia Agile’s potential to positively impact the development of BiH’s IT sector and decided to collaborate with and assist it in the execution of a number of trainings, events and conferences that provided learning and networking platforms for hundreds of programmers, engineers and managers from several dozen local companies.

Following the inception of Bosnia Agile and the decision to provide technical support, PI provided the following:


Ø PI supported the organization of the “Bosnia Agile Day” conference held in October 2014 in Sarajevo. Seven well-known lecturers from the EU and US and more than 150 developers and ICT managers from BiH participated in a series of parallel lectures and interactive workshops focused on the utilization of Agile approaches and techniques used for product and team management in ICT industry processes.

Ø PI supported the organization of a two-day, “Scrum Master” course in Banja Luka on February 18-19, 2015 for 22 participants that included unemployed youth and developers from 11 local firms. “Scrum” is the framework for managing software development activities and “Scrum Master” certifications are quickly becoming a global ICT industry standard and a necessity for all BiH SMEs that compete for software development contracts from international clients.

Ø PI supported the organization of “Bosnia Agile Day 2015” conference held in Sarajevo in October 2015. The conference brought together leading international and local experts, practitioners and innovators to share their expertise and experiences in applying Agile methodologies and management practices in software development with BiH companies. Fourteen speakers held lectures and interactive workshops for more than 140 representatives of leading IT companies in BiH. Complementary to the conference, PI also supported a two-day, “Lean and Agile” methodology training in Sarajevo aimed at decision makers, line managers, project managers and senior developers from Sarajevo-based ICT SMEs. Sixteen participants from 10 ICT companies learned about the new and innovative IT project management methodology and used examples and case studies on how to introduce new methods and principles in the business organization setting.

“Bosnia Agile Day” conference in Sarajevo – October 2015

“Bosnia Agile Day” conference in Sarajevo – October 2014


BIT Alliance Association Following the redesign of the PI Activity, the newly formed BIT Alliance Association appeared to have the capacity and willingness to make strides in the BiH ICT sector. In early 2014, the six leading, Sarajevo-based ICT firms decided to establish an association, and they expressed ambition to set up a training platform for the work development programs for their member firms, as well as to address key policy and industry relevant issues.

PI provided the following technical assistance and capacity building support to BIT Alliance during the two years following the creation of the BIT Alliance association in August 2014:

Ø In November 2014, PI supported the organization of the training for 30 mentors from local IT firms that were selected for participation in BIT Alliance’s program “BIT Camp”. BIT Alliance started the BIT Camp as a comprehensive, six-month, work force development program that thoroughly prepares unskilled youth for software development jobs.

Ø In early 2016, PI engaged an external expert to strengthen BIT Alliance management capacities, organizational capacities, strategic documents and internal policies. The consultant designed and delivered the internal legal acts for BIT Alliance and these legal acts enabled the BIT Alliance Association to be more effective and to conduct its functions in accordance to best practices.

Ø In February 2016, BIT Alliance’s management participated in PI-supported training on strengthening capacity of partner organizations in conceptualizing and creating proposals for funding of ICT projects under Horizon 2020, the biggest to date EU Research and Innovation program.

Ø In November 2016, PI supported the organization of a two-day workshop that was focused on BIT Alliance’s strategic development in the next five-year period.

The BIT Alliance underwent a number of changes in its management team, which resulted in time loss and focus issues related to the handover processes. Since PI’s initial meetings with the BIT Alliance in mid-2014 through the end of 2016, the BIT Alliance has had two presidents and three different executive directors. PI’s assistance related to member outreach and advocacy programs effectively ended when the BIT Alliance’s management informed the project in mid 2016 that they would not be keen on aggressively expanding the association’s membership to include firms from other regions of BiH.

3.2.4. ICT Fairs and Conferences

PI supported ICT Fairs and Conferences to provide a supplementary set of support activities to SMEs in addition to the trainings for programmers and engineers. Additionally, this provided an opportunity for IT SMEs in BiH to tap into foreign markets.

The first conference PI participated in was in September 2012 at ITEO. This conference on technology in education was organized by Apeiron University in Banja Luka. PI conducted a presentation about SIBL accomplishments and future internship plans, which was very well received.


PI also supported the first Regional IT and Entrepreneurship Conference held in Banja Luka in December 2012 and co-organized by ICBL, USAID RCI and PI.

Between 2014 and 2015, PI supported the organization of 10 Business to Business (B2B) and access to markets events and conferences with more than 600 participants from local and international SMEs, ICT clusters, and business associations.

PI together with USAID Regional Economic Growth (REG) Activity and GIZ Open Regional Fund for Foreign Trade Promotion successfully organized a South-East European Information Technology Conference (SEE IT) (http://seeit.ba/) that was held in Sarajevo on May 21-22, 2015. The 2015 SEE IT Conference gathered representatives from IT firms, clusters, and associations from 12 EU and Balkan countries including Albania, Austria, Bosnia and Herzegovina, Bulgaria, Germany, Greece, Kosovo, Macedonia, Romania, Serbia and Sweden. The conference served as a platform for national and international ICT industry leaders, academics, researchers and policy makers to interact and discuss various issues related to ICT education in BiH, discuss opportunities for BiH ICT SMEs to develop product portfolios, as well as effectively present their products and services in the international markets. The conference gathered managers from PI targeted ICT sector SMEs, guests from South-East Europe’s ICT Clusters, and representatives from developed markets in the EU such as Germany, Austria and Sweden. Other conferences served as access to market platforms helping BiH ICT firms to promote their services to local and international clients.

“South-East European Information Technology - SEE IT” Conference in Sarajevo – May 2015

PI also supported the cross-entity collaboration between Prijedor’s and Una Sana Canton’s development agencies in successful organization of the regional Business to Business Conference held in Prijedor on March 12, 2015. The conference’s main goal was to facilitate business linkages and promote the use of ICT-based solutions for business processes in traditional industry sectors. Nine BiH firms presented leading edge ICT solutions for production, inventory, and distribution processes to more than 30 potential client firms from Northwest BiH.


“Business to Business Conference” in Prijedor – March 2015

In fall 2015, PI began collaboration with the Business Club Banja Luka, a private sector business association, on co-organization of a major B2B conference that was designed to serve as the platform for promoting the use of ICT solutions in traditional industry sectors and facilitate linkages between ICT firms and companies from other sectors.

“IT&Mi” was a conference held on December 1, 2015, that featured keynote technology presentations, roundtable panel sessions, and a separate fair section for one-on-one business meetings and product presentations. Leading BiH ICT firms presented advanced ICT solutions for production, inventory, and distribution processes to more than 80 potential client firms from Northwest BiH.

USAID Mission Director Peter Duffy addressing media at the “IT&Mi” conference in Banja Luka

USAID Mission Director, Peter Duffy, opened the conference that gathered more than 170 participants from 95 SMEs as well as representatives from local government agencies and business chambers.

Director Duffy stated that young people are the ones who are most connected with the world, and USAID was proud to participate in building the skills of young programmers and connecting them with companies around the world.


The conference drew strong interest from SMEs from traditional industries and media, and an array of positive stories and interviews were aired on TV and published in local print and online media in the days and weeks following the conference. The conference created a positive buzz and several noticeable outputs including encouraging dozens of local companies from traditional industry sectors to consider prompt integration of advanced ICT into their business processes. In the several months following the conference, major firms from agriculture and security sectors hired local ICT firms to implement the Enterprise Resource Planning (ERP) management software in their operations.

As a result of all the conferences and fairs PI has arranged, the IT sector in BiH is much more collaborative. These events served as a valuable platform for promoting cooperation among local ICT firms in business development and in access to new markets. Companies were encouraged to consider joint collaboration in accessing foreign markets, achieving greater competitiveness of their products and achieving synergistic effects for the benefit of all members. As a result, shortly following the “IT&Mi” conference, 14 Banja Luka-based ICT companies agreed to form a business association titled IT Klaster Banja Luka.

3.3. Cross Cutting Initiatives

The PI Activity supported a number of cross cutting initiatives throughout the life of the project. The following initiatives have over-lapping objectives and supported both of PI’s target audiences, youth and SMEs.

3.3.1. Support to ICT-related Activities and Events

PI supported ICT-related events such as Olympiads, Geek Fests, and Hackathons in order to provide a supplementary set of support to both youth and IT SMEs. For example, PI provided support for the organization of trainings for youth under the “BiH Informatics Olympiad” programs. Between April and June 2014, 143 gifted youth in six BiH cities participated in the Olympiad. A team of young programmers from BiH then competed at the Balkan Olympiad in Informatics in Turkey in August 2014. There were both silver and bronze medal winners on the BiH team.

Team of young programmers from BiH at the Balkan Olympiad in Informatics, Turkey, August 2014

PI supported the organization of a major regional “WordUp” conference in Banja Luka on April 24-25, 2015. More than 200 industry practitioners and lecturers attended the conference that was focused


on the application of WordPress platform tools in web development. This was the first conference of its kind held in BiH.

In November 2015, PI provided support to the local student organization and the US Embassy team during preparations and execution of the 72-hour Hackathon titled “Zajedno postizemo vise” in Sarajevo. PI recruited a number of IT experts and business leaders that served as panelists, team mentors, and keynote speakers during the three-day event, which focused on the creation of Android-based software applications for socially responsible projects and activities.

“Zajedno postizemo vise” Hackathon in Sarajevo – November 2015

PI also provided partial support to a three-day camp for technically gifted high school youth in Banja Luka in April 2016. The “I Ask How To” camp focused on helping youth improve their technical knowledge and skills in applying advanced software solutions as part of their transition to college and workforce environment. More than 100 youth participated in various camp programs that included lectures, presentations, workshops, roundtable discussions, and application competitions. The camp was organized by the Gaudeamus Association from Banja Luka in collaboration with Banja Luka’s Faculty of Electrical Engineering and several prominent local ICT companies.

3.3.2. Gender Considerations

As part of the 2013 project redesign, EDC developed the PI Activity’s Gender Strategy. In doing so, the project identified broad sociocultural, economic and political factors that influence young women’s and young men’s lives in BiH. In the education sector, men often select careers in industry, communications, and construction, while women tend to choose service careers such as healthcare and teaching. Additionally, women have access to fewer economic opportunities in sectors typically dominated by men; these include higher paying jobs in the private sector. Women are also more likely than men to work in the informal sector, to have part-time employment, or to be self-employed, thereby increasing their economic vulnerability. Women in BiH do not often have access to the same business networks and associations as their male counterparts, and, based on cultural norms, may lack the confidence to expand their small business. Furthermore, women are underrepresented in top management positions for a variety of reasons, including unequal obligations in terms of raising a family. Discrimination is common in recruitment, especially for young women, and there is an absence of women in leadership roles and decision-making positions at various levels in BiH society.

During the redesign, the project conducted an assessment of the BiH ICT sector in order to determine gaps in skills development and the labor market. The assessment also analyzed workforce


characteristics related to gender. According to a survey of the eight largest engineering faculties at four universities, 413 out of 1,251 (approximately 33%) of graduates were women. Additionally, PI surveyed 62 SMEs and found that 36% of employees were women and approximately 26% occupied technical positions (programmers and engineers).

In response to the gender issues and constraints noted above, particularly in terms of labor market and entrepreneurship, the PI Activity supported young women’s participation in SMEs through training, internships, mentoring and peer-to-peer support. Specific interventions included:

Curriculum and Training

EDC’s Work Ready Now! (WRN!) Curriculum was implemented in four towns in BiH. The project sought to attract young women to the trainings and increase their confidence in work readiness skills by employing an equal number of female trainers as male trainers. The WRN! training was adapted to the local context, and trainers took care to present the content in a gender sensitive and inclusive manner.

In addition, the PI Activity conceptualized and executed specialized trainings in product development, project management and marketing for women in senior technical and management positions from ICT SMEs. To prepare for these trainings, the project facilitated six ICT training design workshops in six regional centers (Mostar, Tuzla, Banja Luka, Sarajevo, Bihac and Tesanj), which focused on identifying SMEs needs, specifically those of women in senior management and technical lead positions. A total of 46 managers and staff from 44 SMEs participated in these sessions. Based on the feedback from the design workshops, the PI Activity designed and executed trainings in March and June 2014 in Mostar and Banja Luka addressing the usage of ICT tools in digital marketing.

Mentoring/Coaching PI Activity staff presented the project during several events aimed at encouraging women to pursue a career in the ICT sector and/or as an entrepreneur. In May 2014, PI supported the international conference, “The Power of Women”, co-organized by One, the only women’s association in Sarajevo. The main topic of the conference was female entrepreneurship, and the conference provided a platform for successful women entrepreneurs to share their work with young women ready to enter the labor market.

Why IT?

“IT is hype. Everyone wants to program. It's the most desirable position in Bosnia. It's good work and you get paid well.”

– Sabina Muminovic

Graduation ceremony for the 6th cycle of “Moja Praksa” internship program in Banja Luka (May 18, 2016) Intern Dragana Stankovic receives her completion certificate by Ms. Dobrila Vukmanovic, USAID EDO Project Manager


“Utilization of advanced ICT applications for enhancing sales and marketing” training in Mostar

at INTERA Technology Park for 25 women entrepreneurs and managers

PI also supported organization of a workshop, which explored possibilities for women participating in state level programs and projects that was co-organized by Life PLUS and Center for promotion of civil society organizations in Mostar in February 2014. This workshop presented project opportunities open to women entrepreneurs with registered companies from the Herzegovina region, female students, and well as individuals interested in running their own businesses or acquiring adequate business skills.

In 2015, the PI Activity supported the organization of the “Ladies Hackathon” training in .NET programming language for 20 female participants, students, and employees of local ICT companies from Sarajevo.

Tracking Gender Results According to PI’s baseline report, only 33% of recent technical school graduates are young women. PI encouraged its partners to promote the “Moja Praksa” internship programs across technical schools and urge female students to apply.

Following the redesign in 2013, PI added an indicator to train 75 women in senior technical and managerial positions from SMEs. However, in 2015, per guidance from USAID Measure Activity, this indicator was removed from the PI Activity Description and remaining project data and indicators were reported on a quarterly basis with selected indicators and results disaggregated by sex.

PI Activity surpassed its gender target for female youth participants, which was set at 34% to 37%, from 2014 to 2016. From 2013 to 2016, the project served 1,047 young women, which was close to 44% of the total youth trained and a significantly higher percentage than planned. See table below.

Category Female Male Total Female %

Total youth trained 1047 1359 2406 43.52%


4. CAPACITY BUILDING TO PARTNER ORGANIZATIONS

The foundation for developing partner organizations for PI commence during 2011 as PI embarked on discussions with different organizations in BiH. Initially PI engaged with the Business Innovation and Technology Center (BIT) in Tuzla, the Innovation Center in Banja Luka (ICBL) in Banja Luka, and the School of Economics and Business (SEBS) in Sarajevo.

As discussed, the original PI project design was based on the premise of creating self-sustaining ‘Business Innovation Centers’ (BICs) run by local BiH organizations. The BICs were expected to provide training and internship services for youth, as well as to help SMEs identify new markets and adopt new ICTs. As the PI activity evolved over Year 2, it became apparent that this model was not likely to be sustainable as previously discussed.

As a result, in early 2013, USAID and EDC agreed to redesign the original project description, with the resulting focus on direct development and execution of training and internships for BiH youth and SMEs, establishment of a Business Angels Network (BAN), strengthening ICT associations, assisting SMEs with product development and marketing, sponsoring ICT fairs and conferences, and organizing ICT boot camps.

However the discussions in 2011 formed the basis for future partner work.

Based on the findings of the “Capacity Building Needs Assessment Report” completed in October 2014, PI identified several potential programs to be implemented, including a capacity building program for partner organizations.

The capacity building program focused on monitoring and evaluation (M&E) processes and the training for three partner organizations (INTERA, IUS and BIT) and was executed in March 2015. An identical training for ICBL management and staff was delivered in April 2015. These trainings were organized as two-day sessions with a combination of trainer’s presentations, examples from M&E practices, and practical exercises in both group and individual work. The training covered M&E theory, application of M&E to reporting and planning in implementation of activities, USAID guidelines, and application of M&E in Activity management cycle.

Additionally, all partner organizations (ICBL, IUS, BIT, and INTERA) were invited to participate in the SEE IT Conference in May 2015, following recommendations from the assessment report. IUS and ICBL used the opportunity to promote “Moja Praksa” and WRN! at the conference to organizations and companies in charge of recruitment and to give feedback on the progress of youth participating in the programs.

All four partners also completed EDC’s extensive training of trainers program for the implementation of the WRN! soft skills trainings for youth during late 2013 and early 2014.

One of the conclusions from the assessment report included the four PI partner organizations’ lack of capacity to conceptualize projects and create proposals for application for funding of ICT projects under Horizon 2020 –


the largest to date EU Research and Innovation program. PI partner organizations expressed strong interest to improve their capacity to write grant proposals, and particularly to develop competitive grant applications for Horizon 2020 funding for innovative projects. In response to this interest, PI organized an intensive training on grant writing in February 2016. The training was held in Sarajevo and executed in collaboration with USAID’s Regional Economic Growth (REG) project and BIT Alliance.

As a general practice, all partner organization personnel were continuously encouraged to participate in various PI supported technical trainings for SMEs in their respective regions.

5. LESSONS LEARNED AND RECOMMENDATIONS

PI conducted a number of workshops, discussion forums, and panels throughout the duration of the project in order to solicit feedback on SMEs’ needs related to skills needed to train programmers and unemployed youth. Additionally, to collect feedback on ongoing and completed trainings and internship programs so they could be adjusted and improved. A “Lessons learned” panel discussion was also held during the PI closing day event with participation from youth, SMEs, academia and partner organizations.

The main lessons learned from working with youth include:

• Work-based learning bridging activities for youth improve the transition from studying to work. The results of the market assessment surveys conducted during 2011 showed that in regards to business and soft skills, most companies miss skills related to innovation, teamwork, marketing and sales, and leadership. The provision of these activities (WRN! training, “Moja Praksa” internship program and advanced ICT training) resulted in better prepared youth. As a result significant numbers of youth obtained employment during the duration of the project.

• The provision of work readiness training provides an important grounding for youth looking to enter the labor market. PI provided Work Ready Now! (WRN!) training for youth through local training provider partners. The youth came from a schooling system that does not equip them to ask critical questions. The participative training methodology of WRN! provided them with an opportunity to practice and improve these new work readiness skills and gain the self-confidence necessary to find and keep a job. A high percentage of youth who completed the program gained employment before the end of the project. More cycles of WRN! training should have been provided for more youth.

• The opportunity for youth to participate in structured experiential work-based learning opportunities linked to real workplaces is very beneficial in assisting youth to gain employment. The “Moja Praksa” internship program where youth worked on real IT projects designed by real workplaces taught youth about the realities of working in an office and completing work for a customer. “Moja Praksa” was very valuable in changing mindsets of youth about opportunities to work. According to participating youth and industry, “Moja Praksa” was a very successful method for preparing youth.

• The “Moja Praksa” internship program should have been offered for a longer period of time. Youth participated in two-month, work-based internships. These resulted in many youth obtaining employment or identifying ideas to start their own initiatives. However, youth and industry have suggested that a four- to six-month internship would be


more mutually beneficial. Youth would learn more about work related skills and behavior and be better equipped to make career decisions. Workplaces would be better able to assess youth ability, provide training to improve them, and make decisions regarding offering employment.

• Hands-on Mentorship by identified workplace mentors contributed to the success of “Moja Praksa”. Each workplace was required to identify a mentor to provide hands on practical guidance and support to the youth working on the IT projects. Participant could ask for guidance and clarity on a daily basis from someone knowledgeable and available. This proved to be very useful and contributed towards the successful completion of the projects.

• Mentorship takes time and is costly to the host workplace. Remuneration of the mentor should be considered. All the mentorship was provided at the expense of the workplace. As part of the final review, there were suggestions to explore how mentors could be remunerated. PI did provide some training, but it would be useful to consider other incentives.

• Focused Technical Skills Training is essential to provide youth with relevant up to date advanced skills required by industry. The provision of focused intensive technical training on demand driven skills (as requested by industry during the market assessments in 2011) is necessary as schools and training institutions do not always provide the most modern training. PI consulted with the IT sector and developed the training based on their needs. The constantly changing IT sector requires annual updates to curricula that an academic institution cannot accommodate. The PI supported Advanced ICT Trainings were very popular and relevant.

• Work-based learning bridging activities including technical skills training would be more effective if they were integrated into the regular classroom teaching of the training institutions. The PI activities were extra-curricular. They took place on holidays and over weekends and did not connect directly to what the youth were learning at their schools. If these activities were integrated into the school curriculum and coordinated in partnership with the classroom teachers, they would be more effective.

Lessons Learnt regarding working to improve ICT SME Competitiveness.

• Conducting initial baseline assessments result in the design of appropriate interventions being designed. The baseline assessment conducted in 2011 at the commencement of PI showed that the key competitiveness constraint for BiH ICT SMEs were technical skills gaps of the staff. PI was able to use these findings to successfully develop a series of trainings that addressed these needs. As a result the ICT SMEs (developers, engineers, and managers) participated in PI training programs. The results included improved ability to absorb and apply advanced technology in business operations, ability to rapidly respond to evolving trends and customer demands, optimized software development, strengthened production and distribution processes, and improved business processes and marketing strategies.

• Partnerships with SMEs and Industry Bodies enabled PI to understand the current trends in ICT and to design training programs that were up to date. PI continually engaged with the managers of participating SMEs and ICT Associations


about the kinds of training they required. As a result PI was able to arrange for the most up to date trainings (i.e. the first training in BiH on SCRUM, the ICT project management methodology, and SWIFT programming for Apple devices).

• Focused ICT Training for SME staff is an important method for upgrading advanced technical skills. The Advanced ICT Trainings and ICT Boot camps that developed the capacity of SME staff were well received and enabled the participant to learn about current technology and skills. The methodology of providing intensive training (focused 5-7 day boot camps, intensive technical trainings) works well as staff need to learn quickly so that they are not out of the workplace for long periods.

• Support to ICT Associations provides a basis for sustainability beyond the program. PI provided technical advisory support to industry associations in order to help strengthen their internal operations and their capacity to execute trainings for their members. The intention was that these associations can continue to provide this support after the end of PI.

• Business Start Up programs are complex, require dedicated resources and take a long time to yield results. In the early years PI initiated an ICT Business Startup Accelerator program to nurture and support innovative business and technology startups run by young Bosnian entrepreneurs. However, it is a challenging cultural and economic environment and despite adaptations and improvements to the program, the program resulted in limited success. Future programs of this nature would require a redesign, an increase in time to support and incubate emerging businesses, more experienced mentors, and greater structure and programmatic discipline.

• ICT Fairs and Conferences that bring together local and international ICT SMEs and participants, are valuable networking opportunities. PI worked in partnership with other stakeholders to support a number of ICT fairs and conferences that brought together representatives from IT firms, clusters, and associations from EU and Balkan countries. These gave BiH SMEs the opportunity to develop international networking opportunities to expand their market, gave educators and policy makers the chance to interact and discuss issues related to ICT education, and provided exposure to new trends for SME owners and managers.

Lessons Learnt regarding other areas.

• Youth Focused activities are fun and create an interest in ICT as a career. PI arranged a number of high school youth focused events such as Olympiads, Geek Fests, and Hackathons that were very successful. These assisted in improving the technical knowledge and advanced software solutions for youth. This contributed to their transition to college and work.

• It is important to have an active focus on the inclusion of young women and women in management. PI initiated a numbers of activities that focused on the inclusion, development, and tracking of women in the programs. PI recognized the importance and value of this, and would increase this focus in future programs.

• Building Capacity of Partner Organizations for sustainability is important. PI initially engaged with possible partner organization in 2011. However it was only after PI initiated a partner capacity building program in 2014 that these partnerships became really


successful. The result of this was encouraging as a number of partners expressed interest in continuing some of the initiatives (WRN! and “Moja Praksa”) after the end of PI. Training on monitoring and evaluation, management and staff, grant proposal writing as well as participation in different conferences were well received by the partners. It will be important to conduct a basic assessment of potential partners during the design of future programs, and to plan in Partner capacity building that should commence from the beginning of the program.


ANNEX 1: ACTIVITY TARGETS – PERFORMANCE INDICATOR WORKSHEET Table 1. Performance Indicators Summary Worksheet including targets for NCE period

Indicator Description LoP Target/

Unit of Measurement

Disaggregation Data Source Baseline Target for Fiscal Year

2014

Target for Fiscal Year

2015

Target for Fiscal Year 2016

Target for NCE Period

Sep-Dec 2016*

Activity Goal: 2.1 Improved capacity of private sector to compete in market economy

2.1 a Total number of direct jobs resulting from USAID assistance

340 youth Region, Municipality, Gender, person with

disability

Internal Activity documentation

0 90 105 105 40

2.1 d Proportion of female participants in USAID-assisted programs designed to increase access to productive economic resources

1% annually Region, Municipality,

employed, non-employed Internal Activity documentation

33%** 34% 35% 36% 37%

Activity Purpose: 2.1.3 Smart Growth Enhanced entrepreneurship and adoption of new technologies/knowledge

2.1.3.2-I Number of SMEs that report improved profitability resulting from the use of value-added ICT

220 SMEs Region, Municipality, size

and type of SME

AFIP/APIF income statements and survey conducted by PI

0 60 70 70 20

Activity Sub-Purpose I : SMEs competitiveness strengthen based on better ability to use ICT knowledge

2.1.1.-I Annual percent change in sales of USAID assisted private enterprises

2% annually None


0 2% 2% 2% 2%


Indicator Description LoP Target/

Unit of Measurement

Disaggregation Data Source Baseline Target for Fiscal Year

2014

Target for Fiscal Year

2015

Target for Fiscal Year 2016

Target for NCE Period

Sep-Dec 2016*

Activity Outcome/Output: SMEs trained in ICT

2.1 b Number of private enterprises improving management practices as a result of USAID assistance

330 SMEs Region, Municipality, size

and type of SME


0 90 105 105 30

Activity Sub-Purpose II: Relevant ICT, business management, and soft skills acquired by the youth seeking employment or entrepreneurship opportunities

2.1.3.3.-I Number of youth participating in PI-supported programs

2260 youth Region, Municipality, Gender, person with disability

Internal Activity documentation

0 700 660 640 260

* Comparing this table with the original table from PI Activity M&E Plan, revised in September 2016, the Indicator targets were increased due to the additional months of PI Activity Implementation under the “No-cost extension period-NCE”.

** As part of PI Baseline Survey a separate survey of engineering and technical faculties from various BiH regions was conducted in order to assess the percentage of women graduates. The survey showed that 413 out of 1,251 or 33% were women graduates.


Table 2. Data sources for Performance Indicators

Performance Indicator Disaggregation Source of Data Method of Data Collection

Total number of direct jobs created with the USAID assistance

Gender, location, education background, person with disability, type of skills training

received

APIF/AFIP and/or direct survey of all

Activity beneficiaries

Baseline and endline survey

Proportion of female participants in USAID-assisted programs designed to increase access to productive

economic resources

Gender, location, type of skills training

received

Activity internal records

Review of registration forms/ attendance sheets

Number of SMEs that report improved profitabisility resulting from the use of value-added ICT

Region, size and type of SME




Annual percent change in sales of USAID assisted private enterprises





Number of private enterprises improving management practices as

a result of USAID assistance



Review of registration forms/ attendance sheets

Number of youth participating in PI-supported programs

Gender, location, person with disability, type of skills training

received


Entry survey

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