Support to Export-Oriented Innovative SMEs An instrument to prepare the SME sector to Russia’ WTO accession by enhancing competitiveness and export capacity Chamber of Commerce, SME Conference, Moscow, Dr Gudrun Rumpf This project is funded by the EU

The Project’s key objectives are:  To promote an incentive business environment for IEO SMEs;  To enhance the capacity of business support organizations;  To support the development of innovative export-oriented SMEs;  To develop relations between -Russian IEO SMEs and their European partners, -Russian and European export support centers.

The Project’s key OUTPUTS (1) The Project will provide different results at three levels: Federal: - Identification of the barriers and constraints for export-oriented innovative Russian SMEs. - Development of export and innovation policies. - Development of specific financial support schemes for innovative export-oriented SMEs This project is funded by the EU

OUTPUTS (2) The Project will provide different results at three levels: Regional: - Establishment of Export Support Centres (ESCs) in at least 5 regions. - Development of a portfolio of export and innovation oriented business services. - Specialised qualifications of Russian experts This project is funded by the EU

OUTPUTS (3) The Project will provide different results at three levels: European: - Introduction of new technologies/products and/or increase exports and/or establishment of business contacts between at least 20 Russian Innovative SMEs and their European counterparts. - Partnerships between EU and Russian SME support organisations and business links between EU and Russian SMEs are developed. This project is funded by the EU

The Project will develop 20 different business-cases for Russian export of innovative products and services into Europe: Each case should be: an illustration of the tools and methods used by Russian entrepreneurs and their consultants to overcome the various difficulties they faced in their European marketing and sales efforts a particular focus on preliminary requisites, such as International Standards Certification, reliable marketing research and appropriate financial strength.

Project Implementation: planned and achieved results Sep-08Mar-08Sep-07Mar-07Sep-06Mar-06June-06Dec-06Jun-07Dec-07Jun-08Dec-08 Pilot & complementary regions are selected for the Project Regional Export Support Centres are selected for the Project Pilot SME are selected for the Project To sign agreements with SME / To complete export diagnostics with SME / To start training for SMEs & ESCs To develop export strategies with SME / To sign agreements with the EU regions / To continue training programme for SMEs & ESCs / To continue search of partners for SMEs To support SMEs in implementation of export strategies with assistance of ESCs & to provide additional services from RA & its Partners To search for & to attract additional SMEs for the Project & to provide the services from RA & its Partners

The regions selected √ The Project’s main office is in Moscow (Russian Agency for Small and Medium Business Support); 5 pilot regions: –Kaluga, –Leningrad, –Moscow, –Rostov-on-Don –Tomsk –and eventually in six complementary regions – Astrakhan, Volgograd, Irkutsk and Kemerovo regions and Krasnodar and Krasnoyarsk territories. This project is funded by the EU

The Export Support Centres selected √ –Kaluga Agency for SME Support. Contact: Ms Violetta Komissarova –SME Support Agency of the Leningrad region.Contact: Ms Elena Shkoda –Moscow, Regional Investment-Consulting group. Contact: Mr Vladimir Isaichenko –Rostov-on-Don Regional Agency. Contact: Ms Natalya Krainova –Tomsk Agency for SME Support. Contact: Ms Vera Chermeneva This project is funded by the EU

The selected SMEs √ –Over 50 pilot SMEs selected in the pilot regions by a competition √ –Criterium met: Potential and aim to enter the European markets with innovative products and services √ –Active in manufacturing, chemical industry, IT, telecommunications, security equipment, pharmaceuticals, food, textiles or medical equipment sectors. –On average 85 employees, an annual turnover of around 1.5 million Euros and mostly created in the 90s. –Support to SMEs: business diagnostics, market research, certification, access to crediting and financial resources This project is funded by the EU

The SMEs –Agreements signed √ –Export Diagnostics done √ –SME profiles created √ –Training with SMEs started –Identification European business partners for the SMEs currently identified This project is funded by the EU

All SMEs were visited and underwent a Business Diagnostics √

The Business Diagnostics 2

Result Business Diagnostics To identify areas for immediate improvement, the following items were recognized as currently limiting export growth: Availability capacities Availability QMS Awareness of foreign legislation and international contract Brand image Commercial risk Currency risk Intellectual property Market research Product adaptation Training and availability of staff skilled for export This project is funded by the EU

Initial training to SMEs to eliminate export obstacles Challenges raised: Information sources to find relevant data on particular requirements Basic requirements for their products in foreign markets (CE, HACCP, ISO, packaging) Importance of available QMS as major prerequisite for export Definition of companies ’ unique sales propositions (USP) Commercial message and presentation letters to be understood by business people in companies ’ business areas Companies ’ positioning in value creation chain and opportunities to expand sources to form them Major tools to explore export opportunities (role of events, business on Internet, direct marketing or usage of business support infrastructure) The Project follows up on the clarification of these issues. The solutions to address the challenges will be shared with the interested audiences. This project is funded by the EU

Profiles of all SMEs were compiled √ 1

The SMEs Profiles 2

Next steps July 2007: Continue training programme for SMEs and ESCs Develop export strategies with SMEs Search partners for SMEs Sign agreements with EU regions Support SMEs in implementation of export strategies with assistance of ESCs and provide additional services from RA & its partners Search & attract additional SMEs for the Project & to provide the services from RA & its Partners This project is funded by the EU

Merci pour votre attention This project is funded by the EU

Support to Export-Oriented Innovative SMEs This project is funded by the EU Dr Gudrun Rumpf , Moscow, Mosfilmovskaya Str., 17-Б, оff. 25 Tel./fax: (+7 495) Questions?