EBRD, EU enhance SMEs' access to business advice
The European Bank for Reconstruction and Development (EBRD) is joining forces with the European Union (EU) and Montenegro's Ministry of Economic Development to help small and medium-sized enterprises (SMEs) in Montenegro with their access to know-how in order to develop their competitiveness.
The €1.75 million-project with the title "Supporting Entrepreneurship through Advisory Services and Information Services for SMEs" is co-funded by the EU and the Government of Montenegro through the Instrument for PreAccession Assistance (IPA) and implemented by the EBRD in partnership with Montenegro's Ministry of Economic Development which is the beneficiary of the project.
The €1.4 million euro funding is provided by the EU (IPA) and the Government of Montenegro, while the remaining is SME client contribution and EBRD.
More than 100 SMEs joined online to attend the launch event held in Podgorica. Jaap Sprey, Head of EBRD Office in Montenegro said: "The coronavirus has exposed the vulnerabilities of small businesses and tested their resilience like never before.
Helping SMEs access know-how that addresses their immediate business needs and strengthens their operations has never been a bigger priority for private sector development. Our partnership with the European Union and Montenegro's Ministry of Economic Development is committed to advancing the conditions that encourage SMEs to innovate, scaleup and drive their ambitious agendas forward."
Jakov Milatovic, Minister of Economic Development, Government of Montenegro said: "In Montenegro, 99% of all companies are micro, small and medium enterprises, which obliges us to pay more attention to this sector, but also resources.
Therefore, a significant part of our efforts is focused on the long-term sustainable planning and implementation of structural reforms, which will contribute to the creation of a favourable environment for business development.
Through the Instrument for Pre-Accession Support IPA 2014 - 2020, the European Union has invested over 8 million euros to strengthen competitiveness and innovation in Montenegro. In the coming period, it is planned to contract over 4 million euros under IPA 2020 support, which will, among other things, be aimed at strengthening the competitiveness of the private sector in order to improve the business environment, focusing on developing women's entrepreneurship and innovative enterprises, as well as providing tangible support in the competitive sectors defined by the Smart Specialization Strategy 2019 - 2024. In this regard, in a number of projects implemented by the Ministry of Economic
Development through the national IPA 2014-2020, today's project stands out as extremely important for our department and in that sense our commitment and expectations are great." Audrone Urbonaviciute, Deputy Head of Cooperation sector at the EU delegation in Montenegro said: "In the aftermath of the COVID-19 pandemic, it is important for Montenegro to tackle long-term goals to increase the competitiveness of the economy.
There is a lot of potential for inclusive and sustainable economic growth, which is why it is essential to support the private sector and SMEs. Our joint action will enable Montenegrin SMEs to improve their competitiveness, efficiency, export capacity and easier access to finance.