Good advice is worth gold - BAS program in Serbia implemented 214 projects in Serbia in just four years

(Bojana Vukosavljevic)

BAS program of the EBRD, which backs the SME development in transition countries by providing business advice and services, implemented 214 projects in Serbia in the period June 2006-November 2010, it was said today at the presentation of the work of BAS program.

BAS program's database includes 236 consulting companies. So far, 114 firms have been engaged in the implementation of projects. Additional 100 companies applied now for joining BAS program in 2011.

- In 2011 we plan to implement some of the 100 submitted projects on the basis of the criterion of success. We will do our best to help, primarily, companies in the provinces. We will organize an event next year, which should be aimed at raising the awareness of the needs for energy efficiency. After that we hope to receive more applications from companies for the field of ecology because only 1% of the projects implemented to date are focused on environment protection – Bojana Vukosavljevic, the Director of BAS program in Serbia, told eKapija.

During these four years, companies were mainly applying for introduction of a quality management system (42%), improvement of the organizational structure and business efficiency (32%), enhancement of the market appearance (13%), reduction of business costs (7%).

As people at BAS program explain, that program has been stimulating the development of women entrepreneurship since the beginning of work. Out of 214 projects backed by BAS, 34% are the companies owned or ran by women.

- Of all the projects we decided to implement, 11% have been abandoned. Usual reasons for this are complicated procedures or the time someone from the company has to devote to an adviser. This rarely happens in the companies ran by women. When a female company owner decides for a project, she does her best to implement it completely regardless of possible difficulties. Women entrepreneurs are often connected and recommend to each others the consulting companies with which they have cooperated well – says Ms. Vukosavljevic.

Ninety five percent of the companies have achieved a significant success thanks to the effects of application of the projects that have been approved and implemented. During the evaluation, BAS program takes in consideration the sales increase, turnover, scope of export activities, reduction of costs, improvement of organizational structure, all that in regard to the type of the aid granted.

- These results point to the fact that growing number of small and mid-sized enterprises are moving in the direction of contemporary entrepreneurship and improving their operations with the assistance of local advisers. At the same time, they show that BAS program is accomplishing its mission, which is the exertion of influence on entrepreneurs to get the habit to use the aid of local advisers in coping with the challenges – said Bojana Vukosavljevic.

Out of 214 projects implemented so far, 144 projects concern small and mid-sized enterprises in the production business, while 70 projects have been implemented within catering companies.

When it comes to production, most projects were implemented in food industry - 33%, metal industry, mechanical engineering and equipment - 22%, and chemical and pharmaceutical industry - 12%, followed by textile, clothing, footwear - 10%, wood-processing, furniture, lumber and glass, rubber, plastic - 6%.

As far as services are concerned, most projects have been implemented in the fields of wholesale and retail trade - 29%, media and communications - 17%, closely followed by construction and engineering - 16%, and electronics and IT - 14%.

BAS program supports a balanced regional development by approving and implementing projects on the whole territory of Serbia. So far, 66 projects have been implemented for small and mid-sized enterprises in Belgrade (29%), 65 in central Serbia (28%), 48 in Vojvodina (21%), 29 in south Serbia (13%). Companies from west and east Serbia have, so far, been the least interested in the aid granted by BAS program.

BAS program

Business Advisory Service (BAS) is the program of the European Bank for Reconstruction and Development (EBRD), which has already successfully implemented 6,600 projects in 22 countries. The program backs the development of small and mid-sized enterprises in transition countries by providing business advice and services, as well as the development of domestic consulting market.

The Government of the Kingdom of Netherlands will be a donor of BAS program in Serbia prior to November 2011 and it will provide a total of 3 million euros worth of donations in that period.

BAS supports domestic private companies in all industrial branches, except for military and tobacco industries, banking and games of chance, in various spheres of management and business consulting.

An approved project is supported with a grant amounting up to 50% of the net costs of the project, that is, up to 10,000 euros.