1. 3rd Regional Competitiveness Conference in Southeast Europe Enhancing Regional Competitiveness: Past, Present and Future Przno, Montenegro, May 20 – 22, 2008 Access to EU Funds for Agribusiness and Rural Development through USAID Support Cristina Manescu, Executive Director CEED Romania

2. Agenda Who we are Context Romanian case story Lessons learned

3. Power through know-how and networks

4. Who We Are CEED Romania CEED Romania was established by USAID in collaboration with Small Enterprise Assistance Funds (SEAF), with the aim to carry out the legacy of USAID in the area of SME support in Romania and in the South Eastern European Region.

5. We are devoted to strengthening entrepreneurship and empowering the leaders of Small and Medium- sized Enterprises with the know-how and networks needed to accelerate business growth and to promote a true entrepreneurial culture throughout South Eastern Europe. Mission Power through know-how and networks

6. Where we are Regional CEED Network 5 active centers in Slovenia, Bulgaria, Romania, Montenegro, and Macedonia Partnership with the Russian Center for Entrepreneurship Expecting to open NEW centers in Poland and Serbia later in 2008. Romania Bulgaria Macedonia Montenegro Slovenia

7. CEED Model – Three pillars Business Accelerators Local SME Networking Platform Expanding your Network to Build your Business Business Training Modules Short Practical Training for Owners and Key Executives Market Access Forums Regional - International Trade & Invest Events

8. CEED Objectives, Goals, Strategies Objectives –Firmly establish CEED as a trusted resource to entrepreneurs within Southeast Europe –Regionally expand –Create a legacy and build equity for SEAF and USAID Goals –Achieve local sustainability within 5-6 years –Raise additional donor support Strategies –Provide products and services that help SMEs get access to finance and expand to new markets –Target those who can afford and value support –Create a ‘community’ –Leverage partnerships

9. Our approach in implementing the CEED model while achieving sustainability goals: Consolidation Through an active presence on the market and our wide network of partners, we gained recognition, and proved CEED unique / innovative and practical approach. Expansion of client base 2800 clients served in 2007, over 3300 since 2006 Diversification of offer Advisory services / mentoring Donor funded projects CEED Romania – Two years of activity

10. Overall results as of end 2007 CEED Romania 2007Cumulative May 2006 – December 2007 Events  NLE’s  Training  Special events 74 27 events 42 events, 94 training days 5 events, 21 days 87 30 events 52 events, 116 days 5 events, 21 days Participants  NLE’s  Training  Special events 2801 1808 persons 969 persons, 2035 person-days 54 persons, 330 person-days 3,329 2,158 persons 1,147 persons, 2,688 person- days 54, persons, 330 person-days

11. National / Regional market access events 2007 Regional market access events: First regional CEED conference “How to build a successful multinational SME” – Rogaska Slatina, Slovenia, May 19, 2007 CEED Macedonia kick-off event – Skopje, September 24, 2007 National networking events: “Updates on PHARE, BAS (Business Advisory Services) and other SMEs related programs available in 2007”, 31 January 2007, Bucharest - in cooperation with AmCham Annual Conference of the Coalition of Women in Business Associations (CAFA) – May 17–19, 2007; Solutions for SME development 2007 (a series of networking learning events held throughout Romania in partnership with BTL Design) Constanta and Tulcea - March 2007 Targu Mures, Brasov, Iasi, Suceava - April - May 2007; Sibiu, Rimnicu Vilcea - September 2007; Alba Iulia, Zalau, Pitesti, Craiova, Timisoara, and Arad - October - November, 2007 EU Sol 2007 (a series of networking learning events held throughout Romania in partnership with BTL Design) Oradea, Cluj, Baia Mare, Bistrita, Bacau, Galati - April - June 2007; Irish models for rural development and RFLD Closure event (for USDA/RDPL) Herculane, Iasi, Simbata de Sus - September 2007 Sources of finance for SMEs – Iasi, November 19, 2007

12. Training events 2007 How to build at European standards in Europe, Oradea, 1 February, 2007 – at the request of the SME Entrepreneurs Association Bihor “Practical Experience of the Approaches and Application of EU Structural Funds in Member States”, 22-23 February, 2007, Bucharest, Hotel Novotel (International workshop) Access to financial sources for development (tailored training – for the Rural Leadership Development Programme) –Herculane, 26 – 28 March, 2007 / Simbata de Sus, April 2-3, 2007 and May 7-8, 2007 / Iasi, April 16–18, 2007 and May 14–16, 2007 Effective business negotiation techniques for fast growth SMEs – Sinaia, April 16–18, 2007 (training at the request of a private client) Effective Project Management (training – for EU Phare Project Support to SME Devt.) –Ploiesti, Bucharest, Constanta - June 2007 / Timisoara, Cluj - July 2007 / Constanta, Iasi, Alba Iulia, Brasov - September 2007 / Craiova - October 2007 Accessing and Managing EU Funds (training – for EU Phare Project Support to SME Devt.) – Alba Iulia, Brasov - June 2007 / Constanta, Iasi, Ploiesti -July 2007 / Craiova, Bucuresti, Timisoara - September 2007 / Cluj - October 2007 Romanian Guarantee Funds and the EU-Structural Funds 2007-2013. Risk Partnerships for the Romanian Guarantee Funds, Sinaia, June 25-29, 2007 (tailored training) How to create and how to assess performance of Public-Private Partnerships - Bucharest, November 26 – 27, 2007 (follow-up training event in Romanian)

13. Special events 2007 Study tours in Ireland (International learning events for the Rural Leadership Development Programme) Study tour 1 - April 22–29, 2007 Study tour 2 - June 24 – July 1, 2007 The CEED award for entrepreneurship, Bucharest, June 22, 2007 The 5th European Rural Development Network Conference, September 14-15, 2007 (International conference) How to create and how to assess performance of Public-Private Partnerships September 26-27, 2007 (International learning event with EU partners) “Celebrating the Romanian-American Partnership” – series of events dedicated to the conclusion of the USAID assistance in Romania - October 9th, 2007 CEED Foundation Advisory Board meetings: Bucharest, June 18, 2007 Bucharest, November 20, 2007

14. Context The Rural Leadership Development Program in Romania Run since 2003 under the United States Department of Agriculture (USDA) Agribusiness and Policy Support Project New phase started in October 2006. Driven by the new need to tackle the new challenges and exploit new opportunities for growth open with Romania’s EU accession. RLDP coordinated by CEED continued to assist in attracting financial resources for business and community development in the rural area.

15. The USDA Grant Purpose: To train Romanian rural consultants/leaders/ entrepreneurs and develop other initiatives in view to provide knowledge, skills and abilities needed to access financial sources, both public and private, for rural and agribusiness development activities in the four regions of Romania covered by the RDLP. Duration: October 1st, 2006 – September 30th, 2007 Budget: USD 355,986

16. Results Pilot and repeat training seminars on “How to access EU Funds for Rural Development” - 13 training events for 29 days of seminars, attended by over 260 participants 5 Regional and International workshops attended by over 140 participants During one year, CEED & RLDP organized 20 local, regional and International events, comprising over 50 days. Over 440 clients have benefit of various forms of training and practical experience for over 1300 person-days. Two 8-day study tours to Ireland for 37 participants Brochure “Leading Rural Romania from Challenge to Change” prepared and disseminated in 1300 copies

17. Outputs RDLPNo of eventsNo of days No of participants No of person- days TOTAL TRAINING1329264849 WORKSHOPS57140175 STUDY TOUR21637296 GRAND TOTAL RDLP 20524411320

18. Key actions and events Training seminars on “How to access EU Funds for Rural Development” Intensive, highly interactive and practical Learning by doing and peer learning Optimal participant mix: business people, farmers, producers associations, local consultants, representatives of local authorities Experts and resource persons from relevant bodies involved in promoting rural / local / agribusiness development. Participants prepared their own project outlines

19. Int’l Speakers: Tim Woods, Agricultural Economist, University of Kentucky, USA and Brian Milton, Senior Partner, Economic Development and Training Ltd, Ireland. Key actions and events International workshop “Practical Experience of the Approaches and Application of EU Structural Funds in Member States” Active support from US Embassy, USAID Mission, USDA and RO Govt. representatives Practical examples and successful models for agribusiness development and marketing of agri-food products both from the US and Western Europe. Active debates on how to apply these models in Romania

20. Outcomes The participants gained the know-how that enables access to EU financing: –Understood key elements governing the EU SF & other financial instruments institutions, programming cycle, financing & payment mechanisms; procedures which projects can be financed from which source –Exposure to a wide range of successful models (USA and Ireland); –How to set & develop PPPs - a basis for project design, funding and implementation; –Gained practical skills in project design & management; –Identified areas where they could immediately apply the knowledge acquired.

21. Study tours to Ireland Rich and inspiring experience Impressive follow-up actions by participants Knowledge spread wider in the RLDP regions Key actions and events

22. Visits, discussions and engagements with relevant Govt. bodies – national and local NGO institutions, producers / processors / farmers co- operatives Public and private consultants, community development and network organizations. Study tours to Ireland Key actions and events

23. Study tours to Ireland Wide range of projects financed under LEADER+ and other EU funded community support program. Farms, non-agricultural off- farm businesses, micro- enterprises in rural areas Small & Medium food processors

24. Impact Projects developed and funding attracted : –95 outline projects developed by training participants. –25 projects obtained funding of a total value of Euro 1,770,000. –13 projects were in the process of evaluation for a total value of Euro 2,657,000 (as of end September 2007). International contacts and business development opportunities: Ms. Hortensia Gorski, Deputy Dean of the Romanian German University in Sibiu has contacted Tipperary Institute Ireland to initiate a joint higher education programme for rural development. Irish business people visited a number of companies in Transylvania to investigate possibilities for business cooperation in areas such as horse breeding and milk processing.

25. Impact (continued) Partnership agreements: –Between private consultants, County Office for Agricultural Consulting (OJCA) Iaşi, World Vision and Community based organizations from Iasi County, North East of Romania. –The partners have submitted 3 projects. Exchange of relevant information: –Many of the participants became an informal network to support rural, local and agribusiness development. –They are receiving regularly electronic information on relevant aspects. –Access to the rural portal called www.agra.ro managed by SC Pagini Internet SRL Iaşi – a RFLD clientwww.agra.ro New project proposals and plans: –Plan to further strengthen the RDLP rural leaders network under CEED umbrella. Initiatives underway. –Mr. Calin Nicolae, has prepared a project in support of developing partnerships of producers associations, local authorities and leaders in Oltenia, South West of Romania

26. Client feedback “Sincere thanks to the CEED team of trainers. I learned a lot from you, and I applied what I learned. My company has submitted 9 project proposals to obtain EU finding. I am very proud that I was able to prepare good grant applications. This gives me courage and trust for the future. I would like to establish a long-term cooperation with CEED.” Ruxandra Marcu, Entrepreneur, EURO SB 2000 SRL, Sibiu “We learned a lot from you, we gained courage and we are now able to help others. Ion Stuparu, public expert, Oltenia “The project has produced excellent long-term effects, and more effects are expected in future. The great gain from the project was that we can now work as a team. We learned the value of teamwork.” Stela Marcu, private consultant, Timisoara

27. Client feedback “I was very pleased to have the opportunity to understand how the “Irish successful model” works. I saw how important it is to have proper project management skills. We must share positive experiences on adequate use of the European funds and adopt successful models.” Adriana ECOBICI, Craiova, Study tour participant “The entire study tour was successful and interesting as I had the opportunity to identify new strategies and models that could be applied in Romania” Aurel Simion, Craiova, Study tour participant

28. Conclusions & Lessons Communication among the various actors and groups working together to solve problems - the most useful aspect Creation of strong networks and linkages among businesses, consultants, financial institutions, government agencies and programs. Demonstrated capacity of entrepreneurs to get financing from financial institutions & donors Demonstrated benefits of business consulting services The only suggestion for improvement was the expansion of the program. Many interviewees stated that RFLD, because it was so successful, should have been expanded to other counties. Focus group & final assessment

29. Keys of success Flexibility: Administrative procedures and requirements - easy to follow, efficient, not burdensome. Open to working with any stakeholders that could supply the enterprises with the technical and financial support needed. Capacity building: Bottom-up approach and empowering local leaders. Building a community of leaders based on trust and respect relationship. Power of information sharing and networking. Result oriented approach: Specific needs and circumstances were considered throughout the whole project lifetime. Strategy to partner and leverage resources from other sources. The approach was well received by rural private sector, government and donor stakeholders. Sustainability of skills and know-how transferred: Beneficiary enterprises and to other stakeholders continued to be in contact and use skills acquired. The quality of the services and the tools provided are still well regarded by the businesses. Increasingly, banks are lending to rural and agricultural businesses.

30. Thank you Contact us for any further details: Tel/Fax: (+4021) 313.42.92 GSM: (+40) 740.18.22.57 www.ceed-romania.org; www.ceed-romania.org;www.ceed-romania.org cristina.manescu@ceed-romania.orgcristina.manescu@ceed-romania.org; office@ceed-romania.org office@ceed-romania.org cristina.manescu@ceed-romania.orgoffice@ceed-romania.org Cristina Manescu, Executive Director CEED Romania