Investing in small businesses, building big economies EBRD support to small and medium-sized enterprises in Western Balkans OFFICIAL USE

SMEs are an important part of the EBRD’s business 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 Total SME portfolio €6.5 billion Share of Annual Business Volume 1/3 Annual investments €1.4 billion OFFICIAL USE

Russia Kazakhstan Mongolia —Kyrgyz Republic —Tajikistan —Moldova —Jordan Azerbaijan Egypt —Morocco Russia— Belarus Ukraine —Romania —Serbia —Kosovo Turkey Georgia— Armenia— Tunisia— Croatia— Bosnia and Herzegovina— Montenegro— Albania— FYR Macedonia —Turkmenistan Cyprus— OFFICIAL USE

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 The Small Business Initiative OFFICIAL USE

Small Business Initiative: an integrated toolbox Financing through financial institutions Co-financing with financial institutions Direct financing for small businesses Business AdvicePolicy 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 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 Description Impact 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 OFFICIAL USE

Small Business Initiative ‘Finance and Advice for Small Businesses’, alongside targeted policy actions Overall, we provide over €1.5 billion to finance and develop over 200,000 SMEs each year. OFFICIAL USE

Small Business Initiative 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 OFFICIAL USE

EBRD support to SMEs in Western Balkans OFFICIAL USE – 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

Business Advice OFFICIAL USE

Advice for Small Business – a comprehensive approach Advisory projects with local consultants and international advisers - Organization and management - Operations - Sales and marketing - Finance Building demand for business advice - Workshops, trainings - Networking and visibility Special initiatives and new instruments - Women in Business - Accounting Improvement Programme - Sector focussed approach Developing supply and improving quality of business advice - Grow your Consulting Business series - EE/RE trainings - Export advice etc. OFFICIAL USE

Advice for Small Business – how it works International industry expertiseLocal 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 monthsProject duration - 2 to 8 months Projects are custom-tailored to individual enterprise needs, higher impact is achieved by combining different types of assistance OFFICIAL USE

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. ICTFrom management information systems to computerised manufacturing systems and enterprise resource planning. Accounting and Financial Reporting From financial management to reporting and IFRS conversion. OFFICIAL USE

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 4,300+ Total donor contribution €55 million Average turnover increaseTotal client contribution Average productivity increaseAverage employee increase +20%€16 million +30% +20% OFFICIAL USE

Annual growth rate: 20% Our clients – regional SMEs 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 OFFICIAL USE 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% Case study– Mljekara Padjeni

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

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 …for women-led SMEs OFFICIAL USE

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 …for more than 1000 women entrepreneurs OFFICIAL USE

Thank you Natalia Meylunas, Associate Director, Advice for Small Business, Serbia OFFICIAL USE