Investing in small businesses, building big economies

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Investing in small businesses, building big
economies

• EBRD support to small and medium-sized
  enterprises in Western Balkans

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SMEs are an important part of the EBRDs business

• Total SME portfolio
• 6.5 billion

• The EBRD dedicates a significant share of its
  resources to supporting SMEs
• SMEs represent a very significant share of
  enterprises, employment and value added in the
  countries where the EBRD invests
• SMEs face high constraints in accessing the
  finance and the know-how they need to grow
• SMEs are disproportionately affected by
  challenges in the business environment

• Share of Annual Business Volume
• 1/3

• Annual investments
• 1.4 billion

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Russia
Russia
Belarus
Ukraine
Kazakhstan
Moldova
Mongolia
Croatia
Romania
Serbia
Bosnia and Herzegovina
Kosovo
Montenegro
Georgia
Kyrgyz Republic
Albania
Armenia
FYR Macedonia
Turkey
Tajikistan
Azerbaijan
Turkmenistan
Tunisia
Cyprus
Morocco
Jordan
Egypt
www.ebrd.com
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The Small Business Initiative

• Main objective is maximising impact through an
  integrated approach
• An increase in SME support activities
• Country-focused
• Centred on comprehensive products
• Leaner processes
• High donor engagement
• Creation of a new group within EBRD the SME
  Finance and Development Group

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Small Business Initiative an integrated toolbox
Financing through financial institutions
Co-financing with financial institutions
Direct financing for small businesses
Business Advice
Policy Dialogue
Financing of financial intermediaries for
on-lending to SMEs plus equity funds
Co-financing or risk sharing with local partners
Tailor-made debt and equity financing with strong
value creation potential
Access to know-how delivered by local consultants
and/or international industry experts
Policy dialogue through Investment Council and
Legal Transition Team to improve business
environment
Tailor-made debt and equity financing with strong
value creation potential
Access to know-how delivered by local consultants
and/or international industry experts
Policy dialogue through Investment Council and
Legal Transition Team to improve business
environment
Description
SME lending capacity building at intermediary
level
SME lending capacity building at intermediary
level
Demonstration of new products or standards at
company level
Demonstration effect at company level plus
creation of market of consulting skills at
intermediary level
Economy-wide business environment / legal
frameworks
Impact
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Finance and Advice for Small Businesses,
alongside targeted policy actions
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So that small businesses can be competitive and
thrive
Impact Vibrant SME sectors
Outcomes Sustainable access to finance and
advice for SMEs
Outputs Finance and advice, alongside targeted
policy actions
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EBRD support to SMEs in Western Balkans

• The EBRD has reached over to more than 8,000 SMEs
  in the region with different financial and
  non-financial tools, helping them grow and thrive
• In 2011 2015 alone the EBRD has provided over
  660 million in dedicated credit lines to
  partner financial institutions for on-lending to
  SMEs
• Over 30 companies received a total of over 150
  million in direct financing
• Western Balkan Enterprise Development and
  Innovation Facility (WB EDIF) - a set of
  measures to promote the emergence and growth of
  innovative and high-potential companies, as well
  as the creation of a regional venture capital
  market
• ENEF a dedicated fund for equity and
  quasi-equity financing, financed jointly by the
  EBRD, EU, EIF, DEG, OeEB and the Italian
  Government
• ENIF - a venture capital fund focusing on an
  investment portfolio consisting of innovative
  SMEs, where the EBRD is one of the co-founders

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Business Advice
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Advice for Small Business a comprehensive
approach
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Advice for Small Business how it works
International industry expertise Local business advice
SMEs with potential of becoming future leaders in their market SMEs with growth potential
Strategic review of every aspect of an enterprise Narrowly-based, specific projects with a rapid payback
Working with international experts, typically from the same industry Advice ranges from strategy and general management to energy efficiency and ICT
Network of over 1,500 advisers, from 65 countries Databases of 100 local consultants in each country
Cost sharing from 10 to 50 Cost sharing from 25 to 75
Project duration up to 18 months Project duration - 2 to 8 months
Projects are custom-tailored to individual enterprise needs, higher impact is achieved by combining different types of assistance Projects are custom-tailored to individual enterprise needs, higher impact is achieved by combining different types of assistance
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Types of advice
Strategy From business and strategic planning to feasibility studies and partner search. Engineering Solutions From production design to optimisation and deployment.
Marketing From market research to branding and e-commerce. Quality Management From the ISO series to food safety to health and safety at work.
Organisation From organisational development to human resources management. Energy/Resource Efficiency From energy audits to energy management and renewable energy.
Operations From business process re-engineering to supply chain management. Environmental Management From environmental impact assessment to management and control. 
ICT From management information systems to computerised manufacturing systems and enterprise resource planning. Accounting and Financial Reporting From financial management to reporting and IFRS conversion.
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Our results in Western Balkans

• Active since 2000, with more than 4,300 projects
• Network of 700 local consultants and 1,500
  international experts
• Our clients created 9,000 net new jobs
• Focus on delivering international best practice
  to achieve tangible results
• 25 of our clients accessed external financing in
  the amount of 800 million

• Clients assisted

• Total donor contribution

• 4,300

• 55 million

• Average turnover increase

• Total client contribution

• 20

• 16 million

• Average productivity increase

• Average employee increase

• 30

• 20

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Our clients regional SMEs
Case study Mljekara Padjeni

• Annual growth rate
• 20

• Compliant with EU SME definition
• Majority privately owned, majority local owned
• Any business area except Banking/financial
  services, military products/services, gambling,
  tobacco, hard liquor
• Ready and able to share project costs
• High level of management commitment
• Project additionality and contribution to growth

• Founded 1999
• Vision to become a leader in milk and yogurt
  production

• Advisory project
• HACCP

• Turnover after project
• 60

• Access to finance
• 300,000

• Productivity
• 40

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Women in Business programmes
Women dedicated credit lines
First loss cover for partner banks
Technical assistance for partner banks
Business advice for women-led SMEs
Policy dialogue
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for women-led SMEs

• Small and medium-sized enterprises (max. 50
  million turnover and up to 250 employees)
• Overall managerial responsibility is held by a
  woman
• Majority privately owned
• Registered and located locally in Albania, Bosnia
  and Herzegovina, FYR Macedonia, Kosovo,
  Montenegro and Serbia

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for more than 1000 women entrepreneurs

• Estimated 800 sub-loans disbursed for women
  entrepreneurs
• 600 women entrepreneurs provided with business
  diagnostic assessments identifying their
  businesses financing and advisory needs
• 240 women entrepreneurs trained through
  entrepreneurial skills courses
• 204 women entrepreneurs provided with tailored
  business advice
• 49 women entrepreneurs provided with medium term
  business coaching
• 45 women entrepreneurs provided with a regional
  or international mentor

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Thank you

• Natalia Meylunas, Associate Director, Advice for
  Small Business, Serbia