STARTER
Example: Walk us through a specific example(s) of how this solution makes a difference; include its primary activities.
Amela
Malicbegovic
REZ RDA- Regional Development Agency for Central BiH Region
, FSB
, FSB
More than 5 years
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Operating for less than a year
Before the war Central BiH was an area of heavy industry, which was a part of centralized economy in these days. All the working population at that time, have been engaged in big production factories. That means that there was no need for any new business initiative, because business and jobs have been available. Such situation was present through decades.
Transition from centralized economy to market driven is a painful process. People have not been prepared for the transition and not to even mention the impact of the war. All that resulted with large number of unemployed people. Therefore, through this project it is intended to promote entrepreneurial spirit and enhance skills of young and unemployed population, preferably women, in order to generate business ideas, develop new enterprises and create new jobs.
By providing technical and limited financial assistance to selected business ideas, REZ RDA want to set an example and to motivate local authorities to support start-up business through promotion, education and financial assistance.
Project “STARTER” already gained some results. Education process is already completed for 70 participants from 5 selected municipalities within Central BiH Region. In Municipality Maglaj competition process is completed, 3 awards are granted for 3 best business plans/ideas. Consequently 3 start-up companies are already registered and operational. In municipality Busovaca competition process is completed and funds are disbursed. It is expected that registration procedures of 3 selected start-up companies will be completed by the end of June 2011. Selection of the best business ideas and registration of new start-up companies, 9 in total in remaining 3 municipalities, will be completed by the end of September 2011.
101- 1,000
Municipalities are the founders of REZ RDA and intent clearly to support financially this project and project like these on long term to the benefit of the citizens, job creation and economy in their respective municipalities. At this stage REZ RDA was in position to include only 5 municipalities out of 16 that represents the Central BiH Region. Employment Bureaus, as institutions established by public law, agreed that this project completely compatible with its mission and are open to support the project like this financially when the funds will be available. REZ RDA intents to continue with similar activities in other municipalities of Central BiH Region that have expressed support to this project idea.
Lack of good business ideas/business plans can be a serious problem. Project staff is moderating this process and is advising training participants to avoid re-inventing the wheel and to check what’s going on around you and what are the needs of the local markets.
External barrier can be legal procedures/framework in which SMEs are working in BiH and business climate, which will have to remain unchanged in order to implement project properly. REZ RDA Department for projects will conduct regular internal monitoring/evaluations of project implementation. This Department within the REZ RDA is in charge for monitoring/evaluations of all ongoing REZ RDA projects as well as for all EC founded projects, from EU QIF and EU RED projects, in the Central BiH Region. Monitoring will ensure most efficient project implementation and adequate follow up of project objectives and indicators. Findings through monitoring will enable correcting eventual irregularities and/or improving the way how the activities are executed.
The synergetic approach of all institutions involved gives the crucial sustainability prospective. REZ RDA is financially and institutionally sustainable to implement and coordinate all partners to the benefit of MSMEs with the mission to transfer their demand to the supply. Municipalities are, beside MSMEs, the main beneficiaries of REZ RDA Agency and the network around REZ RDA through the creation and implementation of Regional Strategy and MSME support is already in place. Municipalities are the founders of REZ RDA and intent clearly to support financially this project and project like these on long term to the benefit of the citizens, job creation and economy in their respective municipalities. Employment Bureaus, as institutions established by public law, agreed that this project completely compatible with its mission and are open to support the project like this financially when the funds will be available. Currently project value is approximately 37.500,00 Euro and is financed by Norwegian Embassy funds+ REZ RDA participation + participation of 5 selected Municipalities. Since 2004 REZ RDA realized 64 projects in total value of 3.888.227,04 EUR, Sectors of activities: SME Development; Agriculture, Tourism, HR, Internationalization. Our 5 year experience in SME development sector has created link and established cooperation with.ca. 2000 companies in Central BiH region. Through direct and indirect technical assistance, consultancy and no banking finance support we had impact on realized FDI investments - 8.074.690 EUR, loans, grants and donations - 6.006.089 EUR and supply chain contracts in value of 7.756.173 EURO in Central BiH region. Main activities/services offered by Business Development Sector are as follows: business advising, consultancy in business planning and export promotion, business linkages, demand driven education, trade mission. Established cooperation with financial institution such as Federal Development Bank and Dutch Center for Promotion of Imports from development countries and others is adding value to the sustainability of the activities after project end.)
Selection of municipalities in which project can be implemented is in accordance with their needs. It is expected from selected Municipalities to participate financially in project implementation, only those really supportive and interested can and will be included.
Selection of potential training attendees is conducted in cooperation with the Cantonal Employment Institutions, in order to select the most suitable candidates. During that process education background, gender issue and all other criteria (that are always defined in details) is taken into consideration and only those attendees that are regularly attending classes/education are invited to prepare a business plan. All business plans are evaluated by the Committee for selection of best business idea in accordance with the defined criteria. After evaluation process those selected will be awarded in financial means. They have to turn theirs business idea into a registered business that will be followed up in later stages by REZ RDA Business Advisory, that are lectures/mentors within the Project.
Activities from project STARTER are helping direct project beneficiaries to resolve their immediate problem but on a long run these activities should show possible for removing obstacles for business development and accelerating economic growth. Unemployed people registered at Employment Institute of Middle Bosnia and Zencia Doboj Canton will get possibility to be included in “STARTER” activities. Until September 2011, 70 unemployed young people will complete proper education, and 15 of them will get financial support to start with theirs business idea and to register a company. This should encourage participants to focus on good prosperous but realistic business ideas. Local authorities will be involved in these activities as observers so that tomorrow they take over the responsibility to promote entrepreneurial spirit and self employment and plan funds in their respective budgets for supporting such activities. REZ RDA will continue to promote this methodology and project idea in other municipalities within the Region but in cooperation with other 4 regional development agencies to promote the idea in whole BiH territory.
Please select up to three in order of relevancy to your project.
PRIMARY
Underemployment
Lack of skills/training
Lack of efficiency
High unemployment rate in Central BiH region could be partially explained by low level entrepreneurial spirit in this area. Before the war Central BiH was an area of heavy industry. All the working population at that time, have been engaged in big production factories. That means that there was no need for any new business initiative, because business and jobs have been available Transition from centralized economy to market driven is a painful process. In order to support further socio-economic development in BiH substantial interventions aimed at developing an adult learning system, promotion of self-employment and increasing investment in the knowledge and skills of adults are needed.
If yes, please check up to three potential pathways in order of relevancy to you.
PRIMARY
Influenced other organizations and institutions through the spread of best practices
REZ RDA is currently implementing Project Starter, financed by the Norwegian Embassy + REZ RDA participation + participation of 5 selected Municipalities that will be completed until September 2011. 15 new, start-up companies will be registered and operational in 5 selected municipalities. Min. of 15 new working places will be created until the end of the project. If additional funds will be available REZ RDA will be in position to expand project activities on the remaining 9 municipalities from Central BiH Region and to create additional jobs.
Municipalities are the founders of REZ RDA and intent clearly to support financially this project and project like these on long term to the benefit of the citizens, job creation and economy in their respective municipalities. At this stage REZ RDA was in position to include only 5 municipalities out of 16 that represents the Central BiH Region. Employment Bureaus, as institutions established by public law, agreed that this project completely compatible with its mission and are open to support the project like this financially when the funds will be available. REZ RDA intents to continue with similar activities in other municipalities of Central BiH Region that have expressed support to this project idea. PPP is very strong in this project which is innovative for BiH.