Bilateral screening: Chapter 20 PRESENTATION OF MONTENEGRO M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 20– Enterprise and Industrial policy Brussels, 28 November 2012

Chapter 20: Enterprise and Industrial policy Working Group for Chapter 20 – Enterprise and Industrial policy – Bilateral screening: Chapter 20 Presentation of Montenegro Brussels, 28 November 2012 Poglavlje 25 Nauka i istraživanje Chapter 20: Enterprise and Industrial policy

Chapter 20: Enterprise and Industrial policy SMEs AND ENTERPRISE POLICY THE SMALL BUSINESS ACT Poglavlje 25 Nauka i istraživanje Chapter 20: Enterprise and Industrial policy Marija Ilickovic Director of Directorate for SME development

Chapter 20: Enterprise and Industrial policy SME POLICY IN MONTENEGRO Strategy for SMEs development 2011 – 2015 Strategy for Competitiveness at the Micro Level Strategy for Lifelong Entrepreneurial Learning These Strategies are in line with: National Development Plan (in preparation) Strategy for Regional Development Strategy for Sustainable Economic Growth of Montenegro through Introduction of Clusters Poglavlje 25 Nauka i istraživanje Chapter 20: Enterprise and Industrial policy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union

Chapter 20: Enterprise and Industrial policy INSTITUTIONAL FRAMEWORK FOR SME POLICY IN MONTENEGRO Ministry of Economy Directorate for SMEs development In cooperation with: Investment Development Fund, Employment office, Business associations Poglavlje 25 Nauka i istraživanje Chapter 20: Enterprise and Industrial policy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union

Chapter 20: Enterprise and Industrial policy SBA updated information November 2011-November 2012 Chapter I ENTERPRENEURIAL LEARNING Policy partnership Chapter III DESIGN RULES ACCORDING TO THE “THINK SMALL FIRST” PRINCIPLE SME definition Chapter IV MAKE PUBLIC ADMINISTRATION RESPONSIVE TO SMEs One stop shop On line registration Chapter V ADAPT PUBLIC POLICY TOOLS TO SME NEEDS Quality of on-line portal Chapter VIII PROMOTE THE UPGRADING OF SKILLS AND ALL FORMS OF INNOVATION Clusters Voucher schemes Poglavlje 25 Nauka i istraživanje Chapter 20: Enterprise and Industrial policy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union

Chapter 20: Enterprise and Industrial policy SBA updated information November 2011-November 2012 Covered in other presentations Chapter IV MAKE PUBLIC ADMINISTRATION RESPONSIVE TO SMEs will be partially covered in Competitiveness presentation Chapter VI FACILITATE SMEs' ACCESS TO FINANCE AND DEVELOP A LEGAL AND BUSINESS ENVIRONMENT SUPPORTIVE TO TIMELY PAYMENTS IN COMMERCIAL TRANSACTIONS will be covered in Banking and financing instruments presentation In the other chapters, there were no significant changes in this period Poglavlje 25 Nauka i istraživanje Chapter 20: Enterprise and Industrial policy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union

Chapter 20: Enterprise and Industrial policy Chapter I CREATE AN ENVIRONMENT IN WHICH ENTREPRENEURS AND FAMILY BUSINESSES CAN THRIVE ENTREPRENEURSHIP IS REWARDED Enterpreneurial learning National partnership for entrepreneurial learning is re-established Action Plan 2012/2013 for Strategy for Lifelong Entrepreneurial Learning is made Poglavlje 25 Nauka i istraživanje Chapter 20: Enterprise and Industrial policy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union

Chapter 20: Enterprise and Industrial policy Chapter III DESIGN RULES ACCORDING TO THE “THINK SMALL FIRST” PRINCIPLE SME definition DECREE PROMULGATING THE LAW ON ACCOUNTING AND AUDITING (Official Gazette of the Republic of Montenegro, No 69/05 of 18 November 2005; Official Gazette of Montenegro No 80/08 of 26 December 2008, 32/11 of 1 July 2011) LAW ON ACCOUNTING AND AUDITING (Official Gazette of the Republic of Montenegro, 69/05: Official Gazette of Montenegro, No 80/08, 32/11) The definition of SMEs is in line with the definition as in the EU members. Law on Accounting and Audit of Montenegro classifies enterprises to small, medium and large companies, using same criteria as in the EU member states Poglavlje 25 Nauka i istraživanje Chapter 20: Enterprise and Industrial policy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union

Chapter 20: Enterprise and Industrial policy Chapter IV MAKE PUBLIC ADMINISTRATION RESPONSIVE TO SMEs One-stop-shop Amendments on regulation which treats this area are made in a way that company registration is at one spot, within Tax Administration. Regarding wider geographical volume, in the next period will be conducted activities to enable registration in all affiliates of Tax Administration. Increase on-line access for registration From 15. May 2012, portal of e-Government enables electronic submission of requests for registration of new legal entities in Montenegro which changed personal approach to the counters and waiting in line. In the next period, measures will be taken to establish overall electronic registration. Poglavlje 25 Nauka i istraživanje Chapter 20: Enterprise and Industrial policy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union

Chapter 20: Enterprise and Industrial policy Chapter V ADAPT PUBLIC POLICY TOOLS TO SME NEEDS Quality of online portal IPA 2008 – Technical support for small and rural enterprises created document “Business information system in Montenegro” Online Portal for SMEs Poglavlje 25 Nauka i istraživanje Chapter 20: Enterprise and Industrial policy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union

Chapter 20: Enterprise and Industrial policy Chapter VIII PROMOTE THE UPGRADING OF SKILLS AND ALL FORMS OF INNOVATION Poglavlje 25 Nauka i istraživanje Chapter 20: Enterprise and Industrial policy Voucher scheme for innovative small and medium-sized enterprises M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union

Chapter 20: Enterprise and Industrial policy Poglavlje 25 Nauka i istraživanje Chapter 20: Enterprise and Industrial policy Voucher scheme for innovative small and medium-sized enterprises Chapter VIII PROMOTE THE UPGRADING OF SKILLS AND ALL FORMS OF INNOVATION Project leader: DIRECTORATE FOR DEVELOPMENT OF SMALL AND MEDIUM SIZED ENTERPRISES Project team: Ministry of Economy, Ministry of Science, Investment Development Fund, Employers Bureau, University of Montenegro, Business Associations, Technical support: OECD ELIGIBLE ACTIVITIES M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union

Chapter 20: Enterprise and Industrial policy Chapter VIII PROMOTE THE UPGRADING OF SKILLS AND ALL FORMS OF INNOVATION Poglavlje 25 Nauka i istraživanje Chapter 20: Enterprise and Industrial policy Voucher scheme for innovative small and medium-sized enterprises Budget for the pilot phase: EUR Voucher size – 70% of eligible costs or max EUR 1, applicants / enterprises Activities: 6 for introduction of standards, 6 for implementation of ITC solutions 2 for Technical feasibility study and 2 for marketing plan To be completed by the end of M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union

Chapter 20: Enterprise and Industrial policy Chapter VIII PROMOTE THE UPGRADING OF SKILLS AND ALL FORMS OF INNOVATION Poglavlje 25 Nauka i istraživanje Chapter 20: Enterprise and Industrial policy Policy of cluster development Policy framework: Law of Regional Development (Official Gazette of Montenegro No. 20/11 and 26/11 ) Law on Non-Governmental Organizations (Official Gazette of the Republic of Montenegro 27/99, 09/02, 30/02; Official Gazette of Montenegro 11/07 dated 13th December 2007) Law on Agriculture and Rural Development (Official Gazette of Montenegro, No 56/09, August 14, 2009), Law on Cooperative Associations (Official Gazette of the Federal Republic of Yugoslavia 41/96). Law on Cooperatives in Agriculture ( in preparation) Institutional framework  Ministry of economy/Directorate for SME development  Other ministries (MPRR i MORiT)  Chamber of commerce of Montenegro  Municipality Union and local governments  Investment development Fund  Employment office  Other institutions M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union

Chapter 20: Enterprise and Industrial policy Chapter VIII PROMOTE THE UPGRADING OF SKILLS AND ALL FORMS OF INNOVATION Poglavlje 25 Nauka i istraživanje Chapter 20: Enterprise and Industrial policy Policy of cluster development M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union

Chapter 20: Enterprise and Industrial policy Chapter VIII PROMOTE THE UPGRADING OF SKILLS AND ALL FORMS OF INNOVATION Poglavlje 25 Nauka i istraživanje Chapter 20: Enterprise and Industrial policy Policy of cluster development Pilot clusters Cluster of meat and meat products Cluster of wood processing Cluster of olives and olive oil production (Bar) Cluster of olives and olive oil production (Ulcinj) Cluster of mushroom production Cluster of organic crop production (buckwheat,b arley and rye) Cluster of fresh water fish farming (Rainbow trout) Number of companies * 4 Number of employees Number od dependent housholds * Individual producers M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union

Chapter 20: Enterprise and Industrial policy Chapter VIII PROMOTE THE UPGRADING OF SKILLS AND ALL FORMS OF INNOVATION Poglavlje 25 Nauka i istraživanje Chapter 20: Enterprise and Industrial policy Policy of cluster development Program “ Enhancement of cluster development in Northern region and undeveloped municipalities in Montenegro Program “ Enhancement of competitiveness of entrepreneurs, micro, small and medium enterprises in Northern region and undeveloped municipalities in Montenegro International cooperation Donor support Small grants “Eco challenges” – UNDP & USAID IPA 2011 – Implementation of Strategy for Sustainable Economic Growth in Montenegro through the Introduction of Business Clusters Danube initiative cooperation PA-8 cluster of excellence National instruments for Cluster support M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union

Thank you for your attention! QUESTIONS