Translated from Romanian language

ODIMMORGANIZATION FOR SMALL AND MEDIUM ENTERPRISES SECTOR DEVELOPMENT

ANNUAL REPORT

on implementation of the Action Plan of the

Organization for the Small and Medium Enterprises

Sector Development

2011

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TABLE OF CONTENTS:

Introduction............................................................................................................... 4

I. Facilitating SME’s access to entrepreneurial information and knowledge …… 51.1.

1.2.

1.3.

1.4.

1.5.1.6.1.7.1.8.

Implementation of Components I “Information and Communication” and II “Entrepreneurial Training and Support” of the Project on Attracting Remittances in Economy PARE 1+1 ………………………………………………………………...Implementation of Component I “Information and Entrepreneurial Training” of the National Programme of Youth Economic Empowerment (NPYEE) ………………Implementation of the Continuous Training Program “Efficient Business Management” (GEA) ……………………………………………………………..Ensure the entrepreneurs’ access to European consulting services by implementing the Senior Experten Service Program (SES) ………………………………………..Increase youth employability ……………………………………………………….SME Portal Consolidation www.businessportal.md ...................................................Enterprise Europe Network ………………………………………………………….Consultation and information of economic agents in the field of entrepreneurship. ODIMM promotion ………………………………………………………………….

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II. Facilitating SME’s access to financial resources ………………………………… 142.1. Credits guarantee for SME sector ……………………………………………………. 142.1.1.2.1.2.2.1.3.

Offering credits guarantee to small and medium enterprises ……………………………Consolidation of ODIMM credits guarantee activities ……………………………….Promotion and advertising of ODIMM credits guarantee fund products …………….

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2.2. Financial support in SME creation and development, especially in rural areas ……. 172.2.1.

2.2.2.

Implementation of the Components “Business Financing/1+1 Rule” and “Post-Financing Monitoring” of the PARE 1+1 Program …………………………………Financing of businesses created and developed by young entrepreneurs in rural areas …

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III. Business support infrastructure development …………………………………… 203.1.3.2.3.3.3.4.

Coordinating Soroca Business Incubator activity……………………………………Creation of Business Incubators Network …………………………………………..Identifying opportunities of business support infrastructure development ………….The Project “Implementation of statistics on innovation in the RM - INNOBAROMETER” ………………………………………………………………..

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IV. Fostering public-private dialogue ………………………………………………… 244.1.

4.2.

Analysis of the policies in the field of the SME sector development in cooperation with OECD and the Ministry of Economy ………………………………………….2011 SME Forum organization ……………………………………………………...

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V. Other activities …………………………………………………………………….. 275.1.5.2.5.3.5.4.5.5.

Fundraising and External Relations …………………………………………………Promotion and implementation of corporate social responsibility principles ………ODIMM capacity building ………………………………………………………….Partnership agreements ……………………………………………………………...Ensuring the Patronage over the orphanage from Cazanesti village ………………..

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Attachment I ……………………………………………………………………………………………Attachment II …………………………………………………………………………………………Attachment III …………………………………………………………………………………………

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INTRODUCTION

It is certain that a developed sector of the small and medium enterprises can reconfigure the economy of the Republic of Moldova, both by great opportunities for employment, and by competitiveness, flexibility and dynamism.

Therefore, the overarching goal of the Organization for Small and Medium Enterprises Sector Development (ODIMM) is to contribute to the sustainable development of the SME sector by implementing state policies in accordance with the priorities set out in the national strategies and programmes.

In 2011 ODIMM carried out its activity on the basis of the Action Plan of the Organization, developed in accordance with the strategic documents, such as:

– The National Development Strategy for 2008-2011 (NDS);– The Programme of Activity of the Government of the Republic of Moldova “European

Integration: Freedom, Democracy, Welfare” 2009-2013;– The Republic of Moldova Economic Stabilization and Recovery Program for 2009-2011;– The State Programme to Support Development of Small and Medium Enterprises for 2009-

2011 (SP SME);– The National Strategy on Employment Policies for 2007-2015;– The Strategy for Attracting Investments and Promoting Exports for 2006-2015;– The National Youth Strategy for 2009-2013;– The Action Plan to Stimulate the Return of Moldovan Migrants Working Abroad;– EU-Moldova Mobility Partnership.

In accordance with the NDS, SP SME and based on the Regulations of activity, ODIMM has established the following strategic objectives:

I. Increasing culture and entrepreneurial skills;II. Facilitating SME’s access to information and business advice;III. Facilitating SME’s access to financial resources;IV. Development of business support infrastructure;V. Facilitate public - private dialogue.

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I. FACILITATING SME’S ACCESS TO ENTREPRENEURIAL INFORMATION AND KNOWLEDGE

1.1. Implementation of Components I “Information and Communication” and II “Training and Entrepreneurial Support” of the Project on Attracting Remittances in

Economy PARE 1+1

The pilot-program on attracting remittances in economy “PARE 1+1” for 2010-2012 was approved by the Government Decision no.972 of 18.10.2010, intended for migrant workers or their first degree relatives, who wish to invest in starting or expanding their own business.

The Programme Aim was to mobilize the human and financial resources of Moldovan migrant workers, in the sustainable economic development of the Republic of Moldova, by fostering the establishment and development of small and medium enterprises.

The pilot-programme was carried out in 4 parts:1. “Information and communication”,2. “Entrepreneurial training and support”3 “Business Financing/1+1 Rule”4. “Post-Financing Monitoring”

During the reference period, there were offered over 2200 consultations (in the office, on the phone, by email) informing potential beneficiaries on the conditions of participation in the “PARE 1+1” Programme, within the framework of Component I “Information and communication”. The web page http://www.odimm.md/pare.htm (on PARE 1+1) was accessed over 9800 times during the reference period.

During the reporting period, within the framework of Component I “Information and communication”, 12 entrepreneurial training courses were organized, being attended by 215 migrants and their first degree relatives.

For assessing the entrepreneurial seminars, which were held at the end of each course by filling in the questionnaires, the participants highly appreciated the quality of the training courses, 4,5 being the average score out of the possible maximum of 5 points. The analysis carried out is presented in Attachment I.

1.2. Implementation of Component I “Information and Entrepreneurial Training” of the National Program of the Youth Economic Empowerment (NPYEE)

In order to facilitate the access of young entrepreneurs and potential entrepreneurs to entrepreneurial knowledge, ODIMM continued the implementation of Component I “Information and Entrepreneurial Training” of the National Program of Youth Economic Empowerment (NPYEE), aimed to promote and facilitate the involvement of youth, from the rural areas of the Republic of Moldova, in entrepreneurial activity.

Thus, during the period of January – December 2011, ODIMM consulted 1800 people in the office, on the phone and various thematic meetings.

At the same time, 24 training seminars were organized during the reporting period, where 656 young people were trained on how to start and develop their own business in Moldova. It should be mentioned that 20% of the participants had already registered a business, but wishing to improve their entrepreneurial skills and knowledge, they requested to be registered at NPYEE training courses. At the same time, 42% of the participants at the seminars were women.

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NPYEE entrepreneurial training courses were carried out in the following localities:

No. Locality No. of training courses

Nr. of participants

1 Soroca District 5 1472 Chisinau Municipality 4 1033 Balti Municipality 3 804 Ungheni District 2 575 Edineti District 2 506 Hancesti District 1 357 Ocnita District 1 308 ATU Comrat 1 309 Sangerei District 1 2910 Ciadir – Lunga District 1 2711 Vulcanesti District 1 2612 Cupcini village 1 2213 Basarabeasca District 1 20

TOTAL 24 656

The quality of training courses and the need for the proposed modules was rated on the basis of the assessment of questionnaires completed at the end of the seminars (Attachment II).

Thus, the analysis carried out showed that most young people participated in Component I of the Programme in order to gain sufficient knowledge for preparing a business plan that would facilitate the access to NPYEE Component II – “Business financing”, and namely getting a preferential credit of up to MDL 300,000, with 40% portion of the grant.

During the reference period, the Directorate of Credit Line, together with the commercial banks, approved for financing 240 projects in the total amount of MDL 69,17 million, including the grant portion of MDL 27,67 million.

Figure 1.2.1: The purpose of expenditures financed from the NPYEE resources:The rate of the activity branches financed

through NPYEE

Agriculture and food industryIndustry

Services

It should be noted that businesses funded by NPYEE funds were geographically distributed in the following way:

• Central Area – 44,23% of businesses;• The Northern Area – 38% of businesses;• The Southern Region – 17,31% of businesses.

Overall, since the Programme launch (2008-2011), 714 sub-projects were financed, in cumulative amount of 201,91 million lei, including grants of 80,77 million lei.

In order to optimise and improve the National Programme of Youth Economic Empowerment, there was organized a Roundtable on “The efficient mechanism for involvement of young people in

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entrepreneurial activity”, held within the “Made in Moldova” Forum. The event created a discussion platform on the NPYEE results during 2008-2010 and the impact on the entrepreneurial activity carried out by the young people.

The event was attended by 60 representatives: NPYEE beneficiaries, representatives of youth organizations, entrepreneurs and potential entrepreneurs.

Thus, following the discussions, held within in the framework of the event, there had been identified several proposals for the Programme optimisation and improvement, which were discussed at the meeting of NPYEE Coordination Committee, namely:

1) Increase age threshold from 30 to 35 years;2) Replace the requirement on the age limit up to 30 years old of all enterprises’ founders, by the

requirement on the age limit up to 30 years old of one of the enterprise’s founder;3) Exempt from VAT and customs charges the equipment imported within the Programme;4) Possibility to purchase the equipment on the secondary market;5) Accept the beneficiaries’ projects related to purchase and/or financing of buildings’

construction, intended for the manufacture and/or provision of services;6) Apply identical interest on credits offered to youth within the Programme at all participating

commercial banks;7) Grant a grace period on interest of up to 12 months and on credit of up to 1,5 years.8) Extend the term of late payments from 5 to 10 days;9) Allow the use of up to 20% of the credit amount for financing of the net current assets, required

for the process of production or provision of services;10) Ensure the credit with no more than 70% of the mortgage at the time of issue thereof, the rest

being later fulfilled with the pledge of the purchased equipment.

1.3. Implementation of the Continuous Training Program “Efficient Business Administration” (GEA)

During the reference period, ODIMM continued the implementation of the “Efficient Business Management” Programme (hereinafter GEA), which was part of the multiannual Programme “Continuous Training Programme for Small and Medium Enterprises Sector”.

The purpose of the GEA Programme was to raise the knowledge level of economic agents carrying out their activity in any organizational and legal form, contributing to the formation of an effective and competitive entrepreneurial class.

Through GEA Programme, ODIMM offered the entrepreneurs and specialists in the field, consultancy and free courses on 8 training modules:

– Business planning;– Human resource management and labour legislation;– Accounting by fields of application;– Financial management;– Registration as a VAT payer and the application of legislation in the field;– Marketing;– Effective sales techniques;– Foreign economic activity and customs relations.

During the reporting period, through the GEA Programme, there were consulted 1800 people. Entrepreneurs seeking to participate in the Programme, have the opportunity to register both at the ODIMM office and on-line via the application on the web page: www.odimm.md.

In the year 2011, ODIMM organized 67 training seminars in 15 localities from Moldova, where 2173 people, of which 69% women, were trained.

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It should be noted, that the training courses had a national coverage, in the year 2011 the seminars were organised in the following localities:Chisinau Municipality Ungheni DistrictBalti MunicipalityAnenii Noi DistrictCahul District Orhei DistrictTelenesti DistrictSingerei District

27 seminars14 seminars3 seminars2 seminars7 seminars3 seminars2 seminars2 seminars

Causeni DistrictChetrosu village Comrat town, ATUDrochia DistrictGlodeni District Rezina District Floresti District (Bahrinesti)

1 seminar1 seminar1 seminar1 seminar1 seminar1 seminar1 seminar

The analysis of the participants involved in the GEA Programme depending on age, indicated that the greatest interest to the training courses have presented people aged:

– between 35 and 55 years old, 45%;– between 55 and 65 years old, 28% of those trained;– between 18 and 35 years old, 27% of the participants.

In order to improve the quality of GEA Programme training courses, ODIMM continued the monitoring by surveying the beneficiaries at the end of each seminar. The analysis of the surveys is presented in Attachment III.

1.4. Ensure the entrepreneurs’ access to European consulting services by implementing the Senior Experten Service Program (SES)

In order to facilitate the SME’s access to international innovative knowledge, ODIMM implemented the Senior Experten Service Project (SES). The project provides free consultations offered by international experts with extensive experience in various fields. The applicants may be SMEs, public institutions, local authorities, educational institutions, international institutions.

To inform the entrepreneurs about the possibilities to access an international expert, ODIMM organized the seminar “Conditions and Experiences of participation in Senior Experten Service Programme”. The event was attended by 31 people: representatives of the business environment, public institutions, mass media and others seeking to take advantage of an expert form SES Programme. The participants had the opportunity to discuss directly with the representative of SES Programme from Germany, Ms. Ute Sonnen, who reported briefly about the opportunities of soliciting an expert from the SES Programme.

During the reporting period, with the support of ODIMM, 5 experts from Germany provided assistance for the SMEs in the Republic of Moldova. The economic agents solicited consultancy in the following fields:

– agriculture (creation and optimisation of the energy system in the glasshouses for growing vegetables),

– services (health and recreation services, transport and auto repair services), and – light industry (leather and fur apparel).

It is important to note, that the German experts successfully completed their tasks, and the beneficiary enterprises took advantage of modern consulting services and concluded sustainable partnerships.

The cost of consultancy services of the German experts was supported by the Foundation of German Industry for International Cooperation.

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1.5. Increase youth employability

During the reference period, ODIMM, in collaboration with the National Foundation for Community Development (NFCD) Iasi launched the Project “Young Experiences Smart Solution! – Y.E.S.S.!”, funded by the European Union, within the Joint Operational Programme“Romania-Ukraine-Republic of Moldova”, 2007-2013. Implementation period: April 14, 2011 – April 13, 2012.

The overall objective of this project is to stimulate the involvement of young people in the cross-border community life, by strengthening their capacities to design and implement social and economic development projects.

The target group of the YESS! Project was formed of 60 young students – 45 from Romania, the counties of Suceava, Botosani, Iasi, Vaslui and Galati and 15 from the Republic of Moldova, in the last academic year or master year.

The role of ODIMM in the project was to coordinate the target group and the activities carried out on the territory of the Republic of Moldova.

According to the YESS! Project’s activities, there were organized trainings on the topics “Projects Development and Management” (3 days), and “Presentation Skills” (2 days).

In the year 2012, in the framework of this action there will be organized a camp, where it will be simulated a call for projects, written by the beneficiaries throughout the duration of the trainings and with the help of team mentors. The best projects will be supported in obtaining financing.

1.6. SME Portal Consolidation www.businessportal.md

In order to upgrade and update www.businesspoertal.md, improving the link between the business community on both sides of the Nistru River, by facilitating cooperation between entrepreneurs from the two sides and by improving access to the information necessary for the entrepreneurial activities, in the year 2011, there was implemented the “Support to confidence building measures” Project.

Thus, the portal upgrading and updating was carried out in cooperation with UNDP and with the financial assistance of the European Union. The “one-stop-window” portal offers to its visitors:

– Guiding for starting and developing own business;– Information related to support projects in business starting and development;– Information on the novelties in the field;– Relevant information on business support institutions in their district, as well as contact

details – “District Agenda”;– The opportunity to ask questions and get answers from professionals, within the Public

Private Dialogue platform;– The opportunity to find partners, sell and/or buy the necessary goods and services;– The possibility of posting information on vacancies, as well as on those looking for a job;– The opportunity to open own business blog, etc.

This project was implemented during the period of December 10, 2010 – December 23, 2011, in cooperation with Capital Consulting Company LTD from Tiraspol.

At the end of 2011, the web page www.businessportal.md was visited by over 141 thousand visitors, with an annual growth of 31%. Top 10 countries by number of referrals include: Moldova, Romania, Russia, Italy, Germany, the USA, Ukraine, Japan, China, Africa (Nigeria,Kenya).

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1.7. Enterprise Europe Network

ODIMM, in partnership with the Agency for Innovation and Technology Transfer and the Chamber of Commerce and Industry are the Partners of the Enterprise Europe Network (hereinafter EEN) in the Republic of Moldova, the EEN agreement being signed in September 2011. Thus, in the framework of this Partnership, ODIMM provides information services, business cooperation, internationalization and feedback.

The EEN is a European network which brings together over 580 business support organizations from 49 countries and offers the following types of services to small and medium enterprises:

– identification of business partners and internationalization,– transfer of technologies,– access to European funds– financing programs of research projects,– information on EU regulations and standards,– information on intellectual property rights.

In addition to the services offered by ODIMM, it continues working on the following activities:– Network promotion; – Organization of local and/or regional events; – Consulting enterprises on the issues facing on the EU, RM market;– Responses to the requests from SMEs and EEN network partners;– Meetings with companies;– Offering assistance for internationalization and innovation;– Organization of brokerage events and missions;– Electronic alerting services;– Generating partnership proposals;– Participation in the activities of the network and of the consortiums.

The EEN network offers the following opportunities:– Offers a wide range of services to support internationalization and technology transfer

within enterprises;– Enhances competitiveness and innovation capacity of target public – SMEs;– Creates sustainable business and technology partnerships between the enterprises of the

Republic of Moldova and the European Union;– Promotes researches and innovative spirit within the enterprises;– Promotes the spirit of entrepreneurship within the research, innovation and technology

transfer organizations.

1.8. Consultation and information of economic agents in the field of entrepreneurship. ODIMM promotion

In order to facilitate the access to information of potential entrepreneurs and SMEs, ODIMM offers permanent consultations and free assistance to entrepreneurs, including those potential. Thus, during the reporting period, ODIMM has offered over 6400 consultations in the office, by phone and via internet.

In order to inform SMEs and potential entrepreneurs on the opportunities of starting and developing their own business in the Republic of Moldova, there shall continue the administration of ODIMM web pages and SME portal, which are continuously updated with the latest news, events and useful information.

During the reporting period, the www.odimm.md website has been accessed by about 31 thousand unique visitors, an increase of 12% compared with the similar period of the last year.

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The ODIMM employees have done 25 interviews, aired on radio stations and television channels, such as: Timpul, Jurnal TV, Moldova 1, Publica TV, BusinessClass, Jurnalul de Chisinau, Monitorul Fiscal, FISC.MD, and on media web sites, such as www.facebook.md, www.wallstreet.com, www.cimprim.md, www.civic.md.

Also, during the year 2011, there were registered 25 ODIMM appearances on countrywide TV channels; over 50 press releases with reference to the activities of the organization were placed on specialized websites and in countrywide periodicals.

In order to make public the SME Annual Forum, ODIMM has developed 1 video and audio advertising spot, which was broadcasted by Jurnal TV, PRO TV, Moldova 1, Publica TV, by radio stations Moldova 1, Retro FM, Noroc Radio.

In order to promote business development opportunities in Moldova, ODIMM has developed and disseminated to SMEs and potential entrepreneurs several informative materials within various events: Small and Medium Enterprises Forum, seminars, training courses, roundtables. In this context there shall be mentioned the following publications:

• Brochures:– “Entrepreneurship development opportunities in the Republic of Moldova”;– “Fees and taxes for SMEs”;– “Business success stories”;– “The key to success – a guide for beginners”

• Leaflets:– “Organization for small and medium enterprises sector development”;– “Credits Guarantee Fund”;– “Efficient business management” Programme;– “National Programme of Youth Economic Empowerment”;– “Programme for remittance attraction in economy”;– www.businessportal.md.

Over the course of 2011, ODIMM, in partnership with the Association of Managers and Entrepreneurs from Causeni district, organized the seminar “Investment Projects in SMEs”. The event was attended by 42 companies, including companies run by young people from Causeni district, who were informed about the possibilities of access to business development projects in the Republic of Moldova.

In 2011, ODIMM staff participated in the Contest “Today’s Student – Tomorrow’s Entrepreneur “, held annually by the Academy of Economic Studies of Moldova. The contest was attended by about 60 students, who were informed about the opportunities to start and/or develop own business in Moldova.

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II. FACILITATING SME’S ACCESS TO FINANCIAL RESOURCES

2.1. Credits Guarantee for SME sector

2.1.1. Offering credits guarantee to small and medium enterprises

In order to facilitate the access of medium and small enterprises to financial resources, ODIMM administers the Credit Guarantee Fund (CGF ODIMM), the purpose of which is to ensure part of the commitments of the economic agent, the credit beneficiary, to the bank.

With the support of the State Credit Guarantee Fund (CGF) there has been facilitated the granting of 53 credits for medium and small enterprises, amounting about MDL 33 million and, respectively, the investment projects implementation in the cumulative amount of over MDL 48 million.

According to data from December 31, 2011, the balance of active guarantees is 39 guarantees, in a total amount of MDL 9,7 million, which allowed the disbursement of credits in the amount of MDL 25,2 million. These guarantees guarantee, on average, a ratio of 38,5% of bank credits, the amount of guarantees ranging from MDL 50 000 up to MDL 700 000.

Figure 2.1.1.1 The amount of guarantees and credits issuedThe amount of financial guarantees and credits issued during

2004-2011, thousand MDL

In the period January 1 – December 31, 2011 out of CGF there have been issued 14 financial guarantees amounting MDL 4,1 million, which ensures credits in the amount of MDL 10,7 million, thus contributing to a total investment of over MDL 16,8 million (Figure 2.1.1.1). These guarantees, with a medium term of 27 months, ensure 38,3% of bank credits.

At the same time, it should be noted that, during the relevant accounting period, there were redeemed 5 guarantees, being returned, cumulatively, credits in the amount of MDL 3,3 million.

ODIMM guarantee products are aimed at both medium term credits, offered to start and extend the business, as well as short-term credits, aimed at expanding and increasing the current assets.

From the geographical point of view, the analysis reveals that the majority of guarantee requests originate from the North Region (Briceni, Riscani, Drochia, Glodeni, Balti, Falesti, Singerei), followed by the Center Region (Ungheni, Calarasi, Telenesti, Rezina, Orhei, Hincesti, Ialoveni,

Guarantees amount

Credits amount

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Chisinau mun.). From the Southern Region of the Republic of Moldova there have been received only 2 credit guarantee requests (Leova District).

The analysis of the guarantees impact on enterprises denotes that each leu granted as a guarantee allows carrying out investments amounting MDL 4. Thus, credits guaranteed by ODIMM have contributed to the improvement the production capacities in agriculture, food industry and wood processing industry.

Studying the use of credits guaranteed by ODIMM, we can infer that 62% of the beneficiaries conduct their activity in the field of agriculture, the credit resources being directed to modernization of the technical and agricultural fleet and improvement of services quality in agriculture.

Figure 2.1.1.2 Distribution of guarantees by fields of activityDistribution of guarantees by fields of activity

AgricultureServicesProcessing industry

CommerceFood industryTransport and communications

At the same time, a share of 24% represents the trade enterprises, the financial resources obtained from the bank being intended for the purchase of machinery, materials and accessories necessary to organise commercial centres in rural areas.

Over the past 3 years, there are observed some trends in the services sector development, 7% of the guarantees issued by ODIMM have been targeted to telecommunications, launderette, textile cleaning and dyeing, cars/agricultural equipment maintenance and repair services.

Also, positive trends have been recorded in food industry enterprises, being observed tendencies of automation of products processing and packaging, marketing development in rural areas. This area holds 4% of the total guarantees issued.

At the same time, the enterprises carrying out their activities in the field of wood processing industry hold 3% of CGF portfolio.

With reference to those 14 guarantees issued in 2011, it shall be mentioned that they have contributed to the creation of 24 new workplaces, including 42% employed women. So, it shall be noted that every second enterprise has created 3 new workplaces.

The guarantees issued by ODIMM have allowed attracting credit resources that, as a result of profitable investments, contributed to turnover increasing by 50%.

2.1.2. Consolidation of ODIMM credits guarantee activities

In accordance with the tasks set out in the National Development Programmes, for improvement of the access to credits and stimulation of investments in business starting and development, ODIMM offers four guarantee products:

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Product/Indicator Guarantee sum Guarantee amount

Guarantee duration

Annual commission

Active enterprise 700 thousand MDL 50% 5 years 2%

Newly established enterprise

300 thousand MDL 70% 3 years 1,5%

PARE 1+1 Beneficiaries

200 thousand MDL 50% 5 years 1,5%

NPYEE Beneficiaries

150 thousand MDL 50% 5 years 1,5%

2.1.3. Promotion and advertising of ODIMM credits guarantee fund products

For the purpose to make public and promote the guarantee products, ODIMM, in collaboration with development partners, conducted various outreach activities of entrepreneurs on the opportunities of entrepreneurship development in the Republic of Moldova.

• A very important and high-impact event was the roundtable with the theme “Partnerships in financing SMEs”, organized by ODIMM within the SME Forum. The event was attended by about 100 entrepreneurs, banks and RDA’s representatives, who were presented the opportunities of financing the SME sector, including the banking and guarantee products offered by ODIMM, as well as other useful financial instruments for SMEs.

• At the same time, over the course of 2011, ODIMM representatives promoted together with the employees of the “Fincombank” CB SME’s sector financing and development opportunities, including possibilities offered by CGF. In this context, there were organised meetings in the districts of Floresti, Rezina. Soroca, Calarasi, Cimislia, Ciadir-Lunga, Balti mun., districts of Orhei, Donduseni, Drochia, Edinet, attended by about 300 people.

• Also, there were organised mediatisation meetings with entrepreneurs and LPA in Chisinau municipality, and the districts of Nisporeni, Causeni, Soroca, Cahul.

• At the same time, ODIMM participated at various thematic events organized by its partners in the development of local entrepreneurship, where they were also presented the CGF products.

• There were published articles on CGF in magazines, local and national newspapers, and specialized websites. Also, the department employees took part in TV programmes with national coverage, where it was discussed about the guarantee products offered by ODIMM.

• In order to facilitate the access of small entrepreneurs to information resources, the organization coordinators offered over 300 consultations (at the office and by phone) on the ODIMM guarantee products, providing information materials.

• For the purpose to make public the Credits Guarantee Fund (CGF), ODIMM developed and published 100 CGF A3 posters, which were distributed to economic sections of the District Councils and partner banks.

• Also, for the promotion of CGF, there is continuously updated the information on www.fgc.odimm.md website, which describes CGF products, conditions of obtaining a guarantee, partners and success stories.

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2.2. Financial support in SME creation and development, especially in rural areas

2.2.1. Implementation of the Components “Business Financing/1+1 Rule” and “Post-Financing Monitoring” of the PARE 1+1 Program

The programme is carried out on the basis of the “1+1” rule, which provides that every leu invested from remittances shall be replaced with a PARE leu. The maximum amount of non-reimbursable financing is MDL 200 thousand.

With reference to Component III “Business Financing/1+1 Rule”, it should be noted that, in 2011, 73 beneficiaries of “PARE 1+1” programme concluded Non-reimbursable financing agreements and initiated the implementation of investment projects in the various areas of the national economy.

The total amount of investments planned to be carried out by the beneficiaries of the Programme is about MDL 35,45 million, including MDL 22,3 million – remittances, MDL 13,2 million – PARE 1+1 non-reimbursable financing.

During the reporting period there were already made investments in the total amount of MDL 24,7 million, from within the Programme being transferred non-reimbursable financial resources on the account of 65 beneficiaries, the cumulative amount of MDL 10,04 million, including MDL 9,25 million, funds allocated from the State Budget and MDL 0,79 million, the support of the International Organisation for Migration.

It is important to note that each MDL offered within the Programme attracts investment in the national economy amounting MDL 2,7.

The analysis of geographical distribution of investment explains that “PARE 1+1” contributed to investments made in 60 localities of the Republic of Moldova (in 25 districts, Chisinau city and 5 its suburbs): 56% of Non-reimbursable financing agreements had been concluded with entrepreneurs working in the Central region, 17% in the Southern region, 12% in the Northern region, and in the city of Chisinau and its suburbs 8% and 7%, respectively.

Fig. 2.2.1.1. Territorial distribution of “PARE 1+1”grantsTerritorial distribution of “PARE 1+1”grants

Chisinau suburbs

Ungheni

Soroca

Singerei

Orhei

Nisporeni

Ialoveni

Glodeni

Dubasari

Cimislia

Causeni

Calarasi

Briceni

Anenni Noi

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Fig. 2.2.1.2. Territorial distribution of “PARE 1+1”grants Grant amount (thousand MDL) Own finances (thousand MDL)

Gagauzia ATU

Ungheni district

Soroca district

Singerei district

Orhei district

Nisporeni district

Ialoveni district

Glodeni district

Dubasari district

Cimislia district

Cantemir district

Cahul district

Basarabeasca district

Chisinau mun.

Figure 2.2.1.3. Distribution of guarantees by fields of activityDistribution of guarantees by fields of activity

Agriculture

Processing industry

Constructions

Restaurants and hotels

Services

The financial resources of the beneficiaries have been targeted primary in the field of agriculture with 55% of the total planned investment. It shall be mentioned that entrepreneurs are aiming on the enterprises value chains development, by building refrigeration rooms, greenhouses, farms etc.

At the same time, the industry ranks second in terms of the investments made by the beneficiaries, there being allocated 18% of the total finances. With the support of the Programme there were established enterprises in the field of food industry, wood processing, non-ferrous metal production, textile industry, pellets production.

Also, the PARE 1+1 beneficiaries started and expanded their own business in the field of construction, tourism, medical diagnosis, body maintenance, buildings maintenance and cleaning, motor vehicles maintenance and repair etc.

The ODIMM staff verify, during their visits to enterprises, the compliance of investments with the provisions of the non-reimbursable financing agreements of all beneficiaries, and their economic activity shall be monitored over the next 2 years within the framework of Component IV of “PARE 1+1” programme: “Post-Financing Monitoring and Pilot programme evaluation”.

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2.2.2. Financing of businesses created and developed by young entrepreneurs in rural areas

During the reference period, ODIMM implements the Project “Supporting the implementation of the migration and development component of the EU-Moldova Mobility Partnership” funded by the International Organization for Migration. The project envisages 2 components:

– Organization of entrepreneurial training courses, – Financing business started or developed by training courses beneficiaries.

During the reference period, there were organized 24 entrepreneurial training courses for 544 young people from rural areas, particularly from socially-vulnerable groups in 100 localities, representing 25 districts of the country. After carrying out training courses, 129 young beneficiaries submitted business plans on starting or expanding their own business. The more viable businesses shall be funded with a grant of up to 2000 Euros. Youth projects shall be assessed and funded in the first quarter of 2012.

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III. BUSINESS SUPPORT INFRASTRUCTURE DEVELOPMENT

3.1. Coordinating Soroca Business Incubator activity

For the development of the SME sector in 2009, in the town of Soroca, was launched the first Business Incubator, established with the support of “ENTRANSE 2 Your Business – entrepreneurship and SMEs development infrastructure in the Republic of Moldova” Project, financed by the Government of Norway and implemented by SINTEF Foundation Technology and Science in partnership with ODIMM and the Soroca District Council.

According to information of December 31, 2011, SBI hosts 17 small and medium companies, out of which about ½ represents startups the rest being newly launched companies that re-specialized or extended their area of activity, benefiting of technical and financial assistance for procurement of production equipment necessary for doing business including non-repayable grants from the abovementioned project.

Three important actors participated at the SBI establishment, each of them bringing a material and professional contribution.

ODIMM contributed with the allocation of the former typography building on 9, Kogalniceanu Street, town of Soroca and the support of the project all Central Administration authorities of the Republic of Moldova. At the same time, ODIMM made a particular effort for the completion of the establishment of Business Incubator in Soroca. At that stage, there were prepared documents necessary for the incubator establishment, according to legal norms. The incubator was established with a legal organizational form of “Public Institution” founded by the Soroca District Council;

Soroca District Council contributed with a material support in a cumulative amount of MDL 350 thousand, the project support at the local level in all areas, as well as the organization, conduct, attraction of prospective residents of the incubator;

The contribution of PAT “Entranse 2 Your Business” was represented by the financial support for the renovation of the building and financial support of the residents for purchasing the equipment, the consultations offered in the field of residents’ choice, with the participation of national and international experts, as well as the financial support to SBI during 20 months after opening.

It should be noted that during 2011, 2 entrepreneurs successfully graduated from the incubator: microfinance company and food service enterprise, and in their place other 2 residents were incubated – fruit and vegetables exporting company and another food service enterprise.

SBI resident companies created 119 new workplaces, of which 59% in the production sector and 49% workplaces in the services sector. The aggregate turnover registered by the economic agents, incubated in SBI, constituted MDL 6 808 289, representing an increase of 67,1% compared to 2010.

It should be noted that SBI residents were given consultations on marketing and management strategies applied by the experts in the field. Also, for activity monitoring and assessment of corresponding performance indicators, monthly meetings between the SBI residents and incubator’s administration were held.

The incubator’s residents were brought to participate in various State Programmes in the field of entrepreneurship. Thus, it is to mention that “Burlacu Vitalie” IE, SBI resident, dealing with glass processing, glass furniture manufacturing and production of glass-packages for double glazing windows, benefited by NPYEE and obtained MDL 300 thousand to purchase of the equipment necessary for his work.

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In order to support the development and increase the competitiveness of small and medium enterprises and improve the level of competitiveness, SBI resident, “Bevera Nord” Ltd, specializing in manufacture of protective clothing, was assisted in the participation to TAM/BAS “Business Advisory Service” project. Through the project the resident developed the brand, website and marketing strategy of the company. During the mentioned period the SBI residents made exports, which is the goal of the incubator. In 2010 “Bevera Nord” Ltd manufactured clothing for the partners from Norway, the USA, Italy and Germany. In 2011 the resident continued collaborating with the partners from Norway and Italy.

During the reporting period, SBI hosted multiple events designed to contribute to the development of entrepreneurial skills of incubated companies’ managers.

3.2. Creation of Business Incubators Network

Creation and development of business incubators network is in conformity with the Programme of Activity of the Government of the Republic of Moldova “European Integration: Freedom, Democracy, Welfare”, for 2011-2014, the Action Plan on implementation of the State Programme for supporting the small and medium enterprises development, for 2009-2011 and the EC Sector Policy Support Programme: “Economic Stimulation in Rural Areas”.

Thus, the Ministry of Economy, in collaboration with Local Public Authorities, identified the localities for the establishment of 2 business incubators. As a result, Leova and Stefan-Voda Districts Councils provided relevant buildings and made a financial contribution.

During the reference period, the buildings intended for the location of business incubators were surveyed and reconstruction projects were drawn up, and on the basis of the public procurement procedure, the construction companies were contracted.

At the same time, there were drawn up the feasibility studies and launched the process for the selection of prospective residents of the business incubators, for whom presentations, trainings and consultations were organized.

At the end of 2011, Stefan-Voda Business Incubator building was rebuilt, being initiated the procedure of signing of the Acceptance act and putting the building into commission.

The Stefan Voda Business Incubator was planned to locate 19 residents and create at least 60 workplaces.

At the same time, Leova Business Incubator is in renovation in accordance with the approved project. The Incubator is expected to incubate 21 residents and create at least 70 workplaces.

It should be noted that, the constituent and registration documents of legal entities from the business incubators, as “Public Institutions”, are in the process of development.

3.3. Identifying opportunities of business support infrastructure development

During the reference period, ODIMM, in partnership with the Regional Agency for Entrepreneurship and Innovations (Bulgaria), Aristotle University of Thessaloniki, The Urban and Regional Research Unit (Greece), SMEs in Constanta (Romania) and the Agency for Economic Development of the city of Sevastopol (Ukraine) launched the “Black Sea Network for Regional Development” Project (BlasNET) financed within the framework of the EC Black Sea Basin Joint Operational Programme 2007-2013. Project duration is 24 months.

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The BlasNET Project’s Goal is to increase sustainable economic development in the partner countries, to improve SME’s competitiveness and performance on international market by increasing their potential and international relations through the creation of a cooperation network between them.

The main objective of the project consists in the creation of the Black Sea network for regional development, which shall involve SME’s supporting organizations (Entrepreneurship development agencies, SME representing organizations, business incubators, chambers of commerce and industry, as well as experts from universities and enterprises in the field of business support).

The establishment of the Network will contribute to increasing the competitiveness of SME’s from the Black Sea partner regions and their performances on international markets by increasing the potential and relationships between interested parties in the region. The network will create conditions conducive to the exchange of information between SMEs from the Black Sea basin region.

The SME sector will be explored in the region within the framework of the project, by developing, in collaboration with regional experts, sector analysis in the main economic fields, such as tourism, shipping industry and ICT. The analysis will help to determine the needs of SMEs in entrepreneurial support of, thus laying the foundations for the creation of the Black Sea Network for Regional Development.

3.4. The Project “Implementation of statistics on innovation in Moldova - INNOBAROMETER”

ODIMM, in partnership with the Academy of Economic Studies and the Agency for Innovation and Technology Transfer implemented the “Implementation of statistics on innovation in Moldova Innobarometer” Project. There was elaborated, within the project, the survey “Innobarometer 2010 for Moldova”, as according to the EIS model (EUROPEAN INNOVATION SCOREBOARD 2009 COMPARATIVE ANALYSIS OF INNOVATION PERFORMANCE). The statistic research has created a ranking of 29 indicators to make a comparative analysis of the state innovation performances.

The results obtained within the project will permit to create a statistical system in the field of innovation, consolidating the functioning mechanisms of the national innovation system with European statistical standards. Based on this statistical research on innovation it will be possible not only the creation of a monitoring system in the field of innovation, but also there will be possible to compare the indicators of the Republic of Moldova with the international indicators of the European Union States. Based on the identified indicators, there shall be developed the Strategy on innovation in the Republic of Moldova.

The project is implemented by the Academy of Economic Studies, ODIMM being the project partner, along with the Agency for Innovation and Technology Transfer.

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IV. FOSTERING PUBLIC-PRIVATE DIALOGUE

4.1. Analysis of the policies in the field of the SME sector development in cooperation with OECD and the Ministry of Economy

During the reporting period, ODIMM implemented the “Multiannual project on SME policy support in the Republic of Moldova”. There was completed the “diagnostic” stage of the current SME policy and institutional conditions that shape the SME environment. The “Encouraging the SME’s sector development” report was launched at the conference organized on March 10, 2011. The constraints highlighted in the report, as well as the recommendations proposed by the OECD experts should be used in the development and implementation of complex economic development policies of the Republic of Moldova.

At the same time, ODIMM was actively involved in improving the quality of the State Strategy for Support of Small and Medium Enterprises Development for 2012-2020. In this context, the Ministry of Economy, in partnership with ODIMM and OECD, has taken the following actions:

• analysis of the state SME’s policy effectiveness, their impact on entrepreneurial activity;• identifying the SME sector constraints and their elucidation in a report;• organization of 4 workshops with the participation of the representatives of the institutions

responsible for development, implementation, monitoring and evaluation of policies in the field of SME sector development in the Republic of Moldova with a view to identifying concrete proposals to be included in the State program to support small and medium enterprises development for 2012-2014. The workshops had the following topics:– SME’s policies, inter-ministerial policy coordination, public-private dialogue and

consultations with SME sector representatives.– Access to financing, with a focus on credit guarantee schemes, the role of micro financing

and savings and credit associations; credit bureaus and credit lines for SMEs; other financial products.

– Innovation, competitiveness, internationalization, business services and support networks for SMEs.

– Human capital, entrepreneurial culture and management; developing entrepreneurial skills.

Further the Project aims to accomplish the following tasks:• identification of the best OECD countries experiences on SME policies,• information dissemination at various information and training events,• preparation of a guide for the implementation of these practices in domestic policies,• organizing professional training courses for the representatives of the institutions responsible

for the development, implementation, monitoring and/or evaluation of policies in the filed of SME sector development in the Republic of Moldova.

4.2. 2011 SME Forum Organization

On May 25-28 there took place the SME Forum, which included exhibitions, conferences and contests.This major national event was carried out in a practical and interactive format, with many activities having great interest to entrepreneurs, such as:

– The Small and Medium Enterprises Exhibition;– The Small and Medium Enterprises International Conference;– The additional Programme (roundtables and informative seminars for SMEs);– National Competitions for Small and Medium Enterprises.

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: Edinet, Causeni, Calarasi, Nisporeni, Оrhei, Ocnita, Ungheni, Тaraclia, Cimislia, Stefan Voda, Soldanesti, Soroca, Floresti and Chisinau mun.Having regard to the fact that Small and Medium Enterprises are involved in all areas of activity, the exhibition was structured according to branches of activity. The participants in the exhibition offered the customers: agricultural products, food industry, light industry, wood and furniture manufacturing, equipment production and delivery, production of construction materials, as well as consulting, auditing, advertising, information, banking, financial services.

The SME exhibition achieved its intended purpose by promoting local products and services, stimulation of innovation, modernization of technological processes, identification of business partnerships, as well as potential customers, informing entrepreneurs about the facilities provided by the state for the development of the SME sector.

Traditionally, the SME International Conference is held within the SME Forum, this year it has been organized under the title “Achievements and Perspectives”, at the Academy of Sciences of Moldova.

The conference discussed the creation and development of a competitive business environment in accordance with the requirements of the modern economy.

The Conference was divided into 3 work panels:1. SME Agenda for 2011;2. Obstacles and solutions for SME development;3. Energy efficiency – assuring SME competitiveness.

The event was attended by about 260 people: representatives of central and local public authorities, entrepreneurs, SME specialists, representatives of embassies, international and local experts, representatives of financial institutions, business associations, representatives of the NGOs, teachers of higher education institutions of the Republic of Moldova, etc.

The Conference discussed about the SME support projects, the importance of business support infrastructure in SME promotion (business incubators, industrial parks), the constraints and recommendations on financial and tax field, based on OECD countries experience, there were presented case studies on the application by SME of advanced energy efficiency technologies, etc.

Within the framework of the SME International Forum there was developed the Additional Programme, containing:

1. “Partnerships in SME financing”, organized by ODIMM;2. “Promotional Products for Small and Medium Enterprises”, an event organized by the CB

“FinComBank” JSC;3. “The role of the trade mark and industrial design in promotion of the enterprises image on the

internal and external market”, organised by State Agency for Intellectual Property of the Republic of Moldova;

4. “Financing solutions for Small and Medium Enterprises”, organised by Romanian Commercial Bank;

5. “New Orange solution for small business”, an event organized by ME “Orange Moldova” JSC;

6. “Electronic tax services – new opportunities for taxpayers within the portal www.servicii.fisc.md portal, an event organized by the Main State Tax Inspectorate and the State Enterprise “FiscServinform”;

7. “Opportunities for exporting to Swedish and European Union markets: Rules and Conditions” the training organizational activities being conducted by the Moldovan Export Promotion Organization, with support of the Embassy of Sweden in Chisinau and being led by the experts from the Swedish State Agency “Open Trade Gate Sweden”;

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8. “The application of European practices to develop your business in Romania” a roundtable organized by the European Institute of Business Networking in Romania.

On May 27, there was organised the Awards Day, where economic agents, the winners of the national competitions, were awarded:

– The State Prize for achievements in the field of quality; – The prize “The best SME sector entrepreneur”; – The prize “SME – social responsibility model”.

The XIth Edition of the SME International Forum 2011 was a successful event that contributed significantly to the promotion and maintenance of public-private dialogue in the Republic of Moldova. At the events held over during 4 days, SME had the opportunity so to promote, to broaden the sales market and establish new partnership contacts, as well as to bring to the attention of the State authorities the problems and barriers that entrepreneurs face at present, being at the same time informed of the actions and initiatives the State, financial institutions and international organizations in the development of the SME sector.

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V. OTHER ACTIVITIES

5.1. Fundraising and External Relations

In order to increase the capacity of SME to cope with competitive pressure within the internal and external market, during 2011, ODIMM elaborated a series of entrepreneurial development projects, which were submitted to several projects tenders with external financing. So, the following projects and programmes for the SME sector promotion and development in the Republic of Moldova shall be mentioned:

I. Within the framework of the Programme Official Development Assistance (ODA) in Romania, in 2011, ODIMM filed as applicant the following projects:

I.1 The Project “Support for strengthening of institutional capacity of the Organization for Small and Medium Enterprises Sector Development (ODIMM) in collaboration with the Ministry of Economy of the Republic of Moldova in order to prepare the SME’s White Charter” aims at strengthening the institutional capacity of ODIMM in order to achieve the first in-depth analysis of the SMEs in the Republic of Moldova, in the context of local SMEs Europeanization. This project is targeted to a complex analysis of SME sector and identification of the main elements necessary for recovery of the economic and social potential of SME. Activities provided under this project contain training and transfer of knowhow, elaboration of information collecting and processing methodology, elaboration of relevant guides and analysis.

I.2 The Project “Fostering clusters development as mechanisms to economic growth in the Republic of Moldova” aims at enhancing innovation and cooperation capacity of the SME from the Republic of Moldova, carrying out their activities in the field of textiles, ICT, food agriculture and industry, both internally (through the creation of innovative networking – cores of emerging clusters), and externally (through the development of internationalization strategies, as in the network, so for each enterprise). The proposed actions are aimed at organizing workshops (generating clusters, issues identification, development of clusters action plans), thematic training sessions, and “business review” activity – consultancy offered directly to the selected SMEs. An important part of the project is the “train of trainers” component – enhancing the beneficiary’s capacity to provide advisory services to SMEs, thus ensuring the sustainability of the proposed action.

II. Within the framework of the EC Black Sea Basin Joint Operational Cooperation Programme 2007-2013, ODIMM participates as applicant in the project: “Regional Business Incubator Network (Black Sea BI-Net)”. The goal of Black Sea BI-Net project is to accelerate the productive and competitive economy development and improving cooperation in the regions of the Black Sea. The project is organized into the following main groups of activities: the Creation of the Black Sea BI-Net (creating a regional point of contact and its training, organization of workshops with the participation of business support organisations, public authorities and managers of business incubators for the debate of public policies in the fields of SME development, establish the membership criteria and BI-Net operational plan, and BI-net launching, creation of guidelines for the network development and of local development plans for the development of business incubators (BI)); Exchange of activities and sharing of best practices between BI (analysis of BI needs in the region and definition of common quality standards, organization of learning visits in BI from 4 countries, organization of trainings for business service providers), and public authorities on the issues identified during the workshops; Incubated SME support for internationalization (analysis of incubated SME needs in terms of internationalization, organization of seminars, specially designed for the incubated

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SME, B2B match-making and consultancy, International BI, SMEs Forum and event of business network creation).

III. At the same time, ODIMM participated as a partner in the following projects submitted within the EC Black Sea Basin Joint Operational Cooperation Programme 2007-2013:

III.1 The Project “Development of Outdoor Adventure Tourism Network in Black Sea Region (DOOA)” its general objective being to contribute to the sustainable economic and social development in the regions of the Black Sea through the use of natural, historical and cultural potential and strengthening extern tourism managing capacities.

III.2 The Project “Integrated Black Sea World (IBSBW)” aims at enhancing regional cooperation and trade relations through horizontal and vertical integration by creating a common network of knowledge, experiences and activities that would open the way to a social and economic development and intensification of trade relations, as well as to the increase of investment in the regions of the Black Sea basin.

III.3 The Project “EU Cohesion Network Project”, the objective of which is to achieve regional partnerships for sustainable cooperation, through the sustainable socioeconomic development of the regions of the Black Sea basin.

IV. In the context of the third call for proposals of the South East Europe Transnational Cooperation Programme 2007-2013, ODIMM participates as an associate partner at the following two projects:

IV.1 The “South East Europe Policy Innovations in Cluster Development” (SEEPOLIC) – the objective of the project is to develop the skills of public administration authorities in the South-Eastern Europe region (for the establishment and implementation of local/regional clustering policies). The project envisages the creation of a knowledge based management system, on the basis of a corresponding technical support, as well as the creation of a unique clustering strategy in the region concerned. In this sense the project includes a series of activities: analysis of the clustering potential in the region, exchanging experiences and knowledge between the parties involved, establishment of a management and cooperation system, initiation and organization of a clustering forum.

IV.2 The “Development of Regional Cluster Operating in the EEA” (SEED) Project. Among the analysis of transnational clustering potential, this project aims to initiate a cross-border cluster for supporting and promoting innovative enterprises. This project provides for the establishment of clusters integrated laboratories, in order to ensure the quality of services/products, as well as the implementation of various new technologies.

V. At the European Union Thematic Programme for Cooperation with Third Countries in the Areas of Migration and Asylum, ODIMM participates as applicant in the following project: “Making Migration Work for Development” Project, aimed mainly at improving the human capital in the Republic of Moldova by maximizing the positive effects of migration on the socioeconomic development. The objective can be achieved through the implementation of the following activities: Organization of roundtables for the business support infrastructure representatives (national and local); Development of curriculum and conducting training courses for the employees of micro financing institutions and savings and credit institutions from the Republic of Moldova, as well as for migrants who want to return and to start their business at home (in the country of origin); Providing international expertise for the testing and development of circular migration, as well as for the testing of vacancies intermediation mechanism; Organization of meetings between public and private institutions in the countries of origin and those of destination; Supporting the temporary employment of graduates and scientists from the Republic of Moldova; Offering grants for establishing innovation based companies; Providing international expertise to the Government of the Republic of Moldova

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for effective migration management (activities organized by diasporas); Offering success stories of the diasporas’ organizations; The Government’s training in terms of management of diasporas and their activities.

VI. At the same time, at the European Union Thematic Programme for Cooperation with Third Countries in the Areas of Migration and Asylum, ODIMM participates as partner in the “Promoting efficient remittances’ investment of Moldovan migrants and their family members” Project, which aims to facilitate the investment of remittances in the development of entrepreneurial skills and starting a business by migrants in their country of origin. Basic activities of the project are: Assessment of the “National Emigration Sentiment”; Analysis and development of the survey on “Training needs of migrants and their first degree relatives”; Analysis of the regional economic situation, development and completion of “Regional Passports”; Elaboration of the publication “Remittances investment opportunities in Moldova”; Publications “ The best practices”; Assessment of the remittances impact on the human capital, on socioeconomic development and poverty reduction in Moldova; Creation and capacity improvement of 4 national advice centres on matters related to the socioeconomic situation in the region and remittances; Creation of a database with the mentors and their training; Organization of training for improvement of ODIMM capacities in matters relating to investment of remittances in the economy; Exchanges of experiences and knowhow with international institutions; Organization of study visits and meetings with local entrepreneurs for the participants of the trainings; Consulting and assistance to programme beneficiaries; Providing financial and information assistance to migrants and their first degree relatives; etc.

VII. Within the Central European Initiative (CEI) Knowhow Exchange Programme (KEP), ODIMM (as applicant), in partnership with ANTREC Moldova and “ROMONTANA” Romania National Association for Mountains Rural Development, has submitted the Project “Knowhow Exchange for Sustainable Development of Rural Tourism in Moldova”. The goal of the project is to promote sustainable tourism development, by improving the quality of services and diversification of tourism offers, based on the Central and Eastern Europe experiences. The basic project activities include the analysis of the existing situation, through the use of “Mysterious Customer” methodology, skills training on providing tourism services, as well as undertaking European practices, including through study visits.

VIII. Within the EU Strategy for the Danube region, ODIMM expressed the desire to participate as a partner in the following projects (Priority Area 2: To encourage more sustainable energy and Priority Area 8: To increase the competitiveness of enterprises):

VIII.1 The “B2B lap over the Danube Region” Project, which aims to increase the cohesion and the profitability of the business through cooperation between the SMEs from the Danube Region countries, by implementing the following activities: organization of a series of B2B events (one major event in each partner country) to establish links and cooperation between the SMEs from the Danube Region countries. Also, the project will be followed by the creation of several sets of promotional materials for SMEs and clusters in the region.

VIII.2 The “Danube Region Business Forum” Project aims at supporting business competitiveness on the single market; organization of an annual forum presenting the innovations for business support institutions and entrepreneurs in the Danube Region; improving cooperation between the countries and organizations in the Danube Region.

VIII.3 The “Cluster COOP” is a project that is aimed at the analysis of the existing cluster policy, policy framework optimization with reference to clustering, as well as the cohesion between them; facilitating development of least developed economies, including through facilitating regional development in the Central Europe, through cross-border clustering cooperation; promoting the information exchange, in order to create a unique knowledge and internationalization clustering concept. The objectives are planned to be achieved by creating a unique platform for the Clusters Development in the Central Europe.

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VIII.4 The “Danube Region Clustering – push up for policy makers ” Project is aimed at the development of a clusters support system for the countries where it is under developed or does not existent, as well as the initiation of new clusters development programs. These objectives shall be achieved by implementing the following basic activities: comparative analysis of existing policies and those active in the field of clustering of Danube Region countries; facilitating the exchange of experiences between the responsible public institutions from the partner countries; facilitating the creation of new clustering support programmes.

VIII.5 The “FLAME” Project is developed to improve the SMEs competitiveness in the Central Europe, by extending the innovation potential and possibility of finished products marketing.

VIII.6 The “Cluster and Network Cooperation for Business Success in Central Europe” (CNCB) Project is aimed at the improvement of investment climate by supporting clustering initiatives; promotion of clusters on both domestic and foreign markets; stimulation of innovations use; stimulation of cooperation and knowhow and technology transfer. The objective shall be achieved through the development of tools for clusters management support, internationalization and optimization.

VIII.7 The “Strengthening the competitiveness of the SME sector in the Danube Region” Project aims to improve SMEs support for the development of their cooperation and trade capacities. In this respect conferences and workshops will be organised in the Danube Region; there will be performed comparative analysis of the existing support systems, of the advantages offered and problems existing within them; there will be created a multinational web portal that will facilitate communication among the 14 countries from the Region.

VIII.8 The “Support to the Danube Region cluster development and establishment of cluster cooperation” Project has as main objectives the support and empowerment of existing clusters, as well as improving of cooperation in the Danube Region. These objectives shall be achieved by implementing the following activities: Creation of a unique database with the clusters existing in the region; facilitating the exchange of experiences; promotion and understanding of clusters’ importance by the SMEs in the region; creation of a unique clustering and clusters network in the Danube Region.

VIII.9 The “Female ambassadors for entrepreneurship” Project aims to increase the degree of awareness of female entrepreneurship importance; facilitate the exchange of experiences and good practices in the field of female entrepreneurship; increase the degree of visibility of women-led businesses; creation of a network for women entrepreneurs. The achievement of the objectives referred to shall be performed by organizing awareness campaigns and forums in the Danube Region, as well as by creating and maintaining women entrepreneurs’ network.

VIII.10The “Emerging Sector and crosscutting themes: Cluster Potentials in the Danube Region (DR)” Project is aimed at the analysis of clusters’ potential in the Danube Region and of the possibility to improve their performance in implementing technologies and providing cross-sector services. In this regard the following activities will be implemented: Analysis of clusters related qualitative data, determination of the potential and identification of development opportunities.

IX. Also, within the EU Strategy for the Danube region, ODIMM expressed the desire to submit 4 project ideas (Priority Area 8: To increase the competitiveness of enterprises):,

IX.1 The “Business Incubator Network: Binet” Project, that would contribute to the development of a productive and effective economy in the Danube Region, through the promotion and development of business incubators, as SME support tools, and through the increase of cooperation and competitiveness of businesses in the region.

IX.2 The “Better services for better business” Project aims to support and improve the level of knowledge and skills of business support institutions, through the development of

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entrepreneurial culture and by supporting the creation of new SMEs, particularly by young people, women and rural populations.

IX.3 The “Programme on Attracting of Remittances in the Economy PARE 1+1” Project is aimed at the mobilisation of financial resources transferred by migrant workers, for starting of new business, creating new workplaces and increasing the amount of remittances invested in the national economy.

IX.4 The “Women to Business – W2B” Project aims at the economic empowerment of women by promoting their involvement in entrepreneurial activities and decision-taking positions.

X. At the small projects tender for US Alumni Small Grants, provided by the Embassy of the United States of America, ODIMM, submitted the project: “Speak in one voice”. This project aims to facilitate the involvement of women entrepreneurs and women support institutions in business and in decision-making processes. In order to achieve the objective proposed, for 6 months there will be organizes training sessions for women support institutions (NGOs, associations, etc); 3 roundtables; surveying on key issues of women in decision-making processes. This will improve the advocacy and management skills of the participating institutions; facilitate public-private dialogue; increase information of official representatives (representatives of public institutions) relating to the problems encountered by women entrepreneurs or problems on the labour market; increase of cooperation between non-governmental organizations and women’s associations and public institutions.

XI. The “Collaborate and develop skills to resolve economic challenges” Project was submitted by ODIMM (as the applicant) within the small projects tender offered by the Norwegian Embassy for Moldova in September 2011. The goal of this project is to create and develop the skills of the District Councils representatives, business associations and organisations, including NGOs, of analysis of the economic situation of the region and of development of programs and relevant regional development strategies. Thus, in January-April 2012, within the framework of the said project there will be organized a series of 2-days training sessions in each region of the country (North, Centre, South), with the participation of 20 people. As a result of this opportunity, the representatives of the District Councils, business associations and organizations, including NGOs, will improve their knowledge and learn more about: Methods and tools for analysis of the economic situation of the region; Methodology for the determination of region economic development needs; Elaboration of strategic development plan of the region; Elaboration of regional and national development strategies; The process of strategies elaboration and adoption.

XII. Within the Technical Assistance and Information Exchange instrument – TAIEX, managed by the European Commission Directorate-General for Enlargement, ODIMM submitted three applications:

XII.1 The “Study Visit on strengthening capacities of planning, implementation, monitoring and evaluation of the SME development projects and programs according to the EU requirements” Project is aimed at obtaining the necessary knowledge and skills for promoting the SME sector development in line with EU requirements and good European practices. Thus, the project intends to organize a study visit at the Agency for Implementation of Projects and Programmes for SMEs (AIPPIMM Ro), where will be discussed the legal framework relating to the entrepreneurial activity (SMEs); tools and methods for cooperation between public institutions and SMEs; methodologies for the SME sector development; projects and programmes implemented by the host organization for the SMEs development; relevant success stories, etc.

XII.2 The “Study visit on European Credit Guarantee Fund” Project is aimed at the improvement and development of tools provided by the ODIMM Guarantee Fund, of procedures for the granting of guarantees, as well as collaboration with the resort organizations. In order to achieve the proposed objectives, there will be analyzed the legal framework of the host country

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and of the European Union, the best practices related to CGF in the EU; methods of keeping transparency in the process of granting guarantees and related tools provided to SMEs.

XII.3 Application for organizing a workshop in Chisinau, in order to raise public and stakeholders awareness with regard to the importance of investing remittances in economy, with special emphasis on the results obtained under the Programme on Attracting of Remittances in the Economy PARE 1+1in Moldova; the role of the diasporas in facilitating the investment of remittances in the economy; as well as on good European practices in promoting remittances investment in economy and conduct of businesses by Moldovan migrants in their country of origin.

XII.4 At the local partners tender launched within the framework of the “Financial Facilities for SMEs: training and capacity building for Business Support Organisations in non-EU member states of the Central European Initiative - FIT4SMEs” Project, implemented by Informest, Development Agency for Economic Cooperation based in Gorizia, Italy and funded within the framework of the assistance provided by the Central European Initiative (CEI) through the Know Exchange Programme (KEP) and by the Autonomous Region of Friuli Venezia Giulia, Italy, ODIMM has applied as a local partner from Moldova. The aim of the project is to strengthen institutional and staff capacities of business support organizations of countries out of the EU (Albania, Belarus, Bosnia and Herzegovina, Croatia, Macedonia, Moldova, Montenegro, Serbia, and Ukraine). Also, ODIMM has contributed with information on SME’s access to financial resources. The application was filed in March 2011.

XIII. In the framework of the call for proposals on the e-Services necessary to implement the National Strategy for e-Administration, ODIMM (as applicant) has developed and submitted “The System for Evidence and Analysis of e-Training Applications” (SEATA) Project. This project aims at ensuring online application for the desired courses/projects, as well as storage and instant analysis of the applications, such as generating multidimensional analyses requested by users. Thus, the SEATA application, along with informative aim, will allow fast online application to the desired entrepreneurial projects/courses; will facilitate the multidimensional evaluation of the submitted files/applications, the post project evaluation of the proposals and recommendations will save the applicants and organizers resources.

XIV. Within the European Union TEMPUS Programme which supports the modernization of higher education system, ODIMM participated as a partner in the following projects: “Enhancing Entrepreneurial Education through University Based Business Incubation” aimed at improving the quality and relevance of entrepreneurial studies in the system of higher education of Russia, Ukraine, Belarus and Moldova, by implementing a number of activities: analysis and development of a University Business Incubator model; exchange of experiences and undertaking of good practices in entrepreneurial education; development of a entrepreneurial education methodology and unique distance course (online education); launch of a students’ camp by organizing Business Plans contest, etc.

XV. ODIMM participated as a partner, along with AITT and ASEM (implementer) in implementation of the “Implementation of innovation statistics in Moldova - Innobarometer” Project. The project aims to develop the Innobarometer 2010 study for Moldova according to EIS (EUROPEAN INNOVATION SCOREBOARD 2009 COMPARATIVE ANALYSIS OF INNOVATION PERFORMANCE) model funded by the Academy of Sciences of the Republic of Moldova. Statistical research on innovation aims to create a ranking of 29 indicators to make a comparative analysis of the state innovation performances. The results obtained within the project will permit to create a statistical system in the field of innovation, consolidating the functioning mechanisms of the national innovation system with European statistical standards. Based on this statistical research on innovation it will be possible not only the creation of a monitoring system in the field of innovation, but also there will be possible to compare the indicators of the Republic of Moldova with the international indicators of the European Union

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States. Based on the identified indicators, there shall be developed the Strategy on innovation in the Republic of Moldova. The project was submitted in May 2011. It should be noted that the Project was implemented during the reporting period.

5.2. Promotion and implementation of Corporate Social Responsibility principles

For the promotion and implementation of the Corporate Social Responsibility (CSR) principles in SMEs, ODIMM, in partnership with the Embassy of the United States of America in the Republic of Moldova, organized a seminar with the participation of Mrs. Jane Madden, CSR expert. The event was attended by 25 entrepreneurs from Moldova, who familiarised with the international practice on CSR in SMEs and promotion tools.

At the same time, it was organized the Contest “SME – social responsibility model”, held within the framework of the SME National Forum, on May 27, 2011.

At the contest there were awarded 4 entrepreneurs, who took CSR actions in the following areas:a) environmental protection;b) compliance with the working conditions of employees;c) social integration and community support;

The Special Prize was given to the economic agent, who took important actions in several of these areas.

The partners, “Orange”, CB "”Agroindbank"”, etc., awarded the winners with diplomas and valuable gifts.

5.3. ODIMM capacity building

In 2011, ODIMM staff attended a series of lectures and informative seminars that contributed significantly to the improvement of professional skills of the organization’s employees:

• Seminar on “Amendments to the Republic of Moldova law on commercial societies for harmonisation with EU law”. As a result of participation in this seminar, it became involved in the respective legislative process;

• Seminar on information and presentation of the reforms carried out with the support of the USAIDBIZSTAR Project on increasing of efficiency in business performance in Moldova with reference to five indicators included in the World Bank’s report “Doing Business 2011”;

• Presentation of the report “The cost of state regulations of enterprises activity”, developed by the NGO “Alternative internationale de dezvoltare” (International development alternatives) with the support of the World Bank and the Ministry of Economy;

• Training on “Growth and development of presentation skills”;• Training on “Project management and implementation for Grant Beneficiaries and Blas NET

(Romania) project partners”;• Presentation of the report “The cost of state regulations of enterprises activity”;• Launching conference of the “East Invest” (Belgium) project;• Participation to the launching conference on call for proposals within the South East Europe

Programme, Ro-Ua-RM Joint Operational Programme;• Training on “Growth and development of presentation skills”;• Training on “Project development and management”;• Training on “Project management and implementation for Grant Beneficiaries and Blas NET

(Romania) project partners”;• Tourism entrepreneurship study visit (Slovakia);• Presentation of the global investment report;• International Conference on “Skills validation for returning migrants under the Mobility

Partnership”;

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• The roundtable on “The intellectual property in support of small and medium enterprises”, organized by AGEPI;

• Training seminar on “Best EU practices in the area of Management of Labour Migration”;• Informative seminar on “Patent and brand promotion” for SMEs, organized within the

framework of the “Support to implementation and enforcement of intellectual property rights in the Republic of Moldova” project;

• Seminar on “Strengthening of the local and central public administrations capacities in attracting foreign direct investment and promoting investment opportunities”;

• The Regional Forum of the International Organisation for Intellectual Property (WIPO) in Bratislava, Slovakia in October 2011;

• Workshop on “EEN – Opportunities and Partnerships”, organized by the Agency for Innovation and Technology Transfer (AITT), there was held the official launch of EEN network in the Republic of Moldova. At the event was presented the EEN concept and opportunities of external partners’ identification.

5.4. Partnership agreements

Contribution to the establishment of collaborative relationships with various institutions and organizations and conclusion of strategic partnerships, to wit:

• Collaboration Agreement with the ASEM Business Consulting and Training Center, Chisinau, Republic of Moldova; (on the establishment of a collaboration for promotion of opportunities for SMEs development in the Republic of Moldova);

• Partnership Agreement with AXA Management Consulting Ltd., Chisinau, Republic of Moldova (on the development of entrepreneurial skills in the Republic of Moldova);

• Collaboration agreement with European Business Centre Ltd., Orhei, Republic of Moldova;• Partnership Agreement with the National Association of Rural, Ecological and Cultural

Tourism, Chisinau, Republic of Moldova;• Collaboration Agreement with MR. Euro Consulting Ltd.• Tripartite Cooperation Agreement with Soroca District Council and Entranse 2 Your

Business (to ensure for sustainable and efficient functioning of Soroca Business Incubator).

5.5. Ensuring the Patronage over the orphanage from Cazanesti village

ODIMM performs the patronage over the Internet for orphaned children and children left without parental supervision from Cazanesti, district of Telenesti. In order to improve the living conditions of the children in the boarding school, ODIMM, financed by the German Embassy in the Republic of Moldova, carried out repairs to sewage and water leakage systems.

Underground sewerage systems of the bedroom and the kitchen had an urgent need for renovation. Old pipes were made of asbestos and had rotted over time, so that the sanitary facilities for children in the bedrooms, at the end of the year, were no longer usable. The two septic tanks became unusable.

In the process of repairs, the old pipes were replaced with new pipes, as according to international standards, made of relevant material, having a larger diameter. There were excavated and concreted two new septic tanks. The works had been finished in August, 2011 before the new school year started.

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Annex I

As a result of training courses quality assessment carried out at the end of each course by filling out assessment questionnaires by the participants of the training, there were identified a series of objections, which once removed or improved, would lead to improve the quality of the courses and satisfy the participants training needs.

Therefore, the comments and suggestions of trained persons are based on the following changes: • Informing trainers on financing conditions of PARE 1+1 Programme, so that the content of

the courses to be adapted for the purposes of further participation in the funding stage, and their recommendations to correspond to the areas eligible for the Project;

• Implementation of a Programme regulation, known also to the participants, in order to avoid subjectivism and implementers errors, given that the Government Decision is often construed to the detriment of the participants;

• Conduction a study visit at a business funded by PARE 1+1 Programme that would be an example of success for the enterprises only initiating their activity;

• Organization practical classes, meetings with business people who could advice the participants of the training based on their own experience;

• Devote special attention to practical work and problems;• Development of a business plan based on a business model, with the help and guidance of the

lecturers;• Completion of courses by making a synthesis of the material taught.

At the same time, questioning the participants of the training offered the possibility to identify some technical problems faced by the people participating at the courses:

• Too short period of time for the Accounting and Financial Management module and difficult teaching technique for participants;

• Too much information taught in a fairly narrow period of time;• Inconvenient schedule of the courses, that would be better to be shortened or extended on full

days;• Poor quality of the printed materials, including too small print and difficult to perceive;• Taking into consideration that the courses were attended by many people aged over 30 years,

and a single break is not sufficient.

After the completion of the training courses the participants were much easier to identify the areas which required more information. Therefore, the most requested topics are:

• Marketing and sales; • Tax legislation;• Customs legislation;• Accounting (including the documents part); • Financial management;• Human resources management;• Study of the market of the Republic of Moldova and the CIS countries;• Relations between the SME sector and the State.

More specific areas mentioned as potential subjects of the training courses are: • Growth and harvesting of vines (viticulture);• Apiculture;• Rural tourism;• Provision of public services;

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• Provision of body maintenance services and recreational activities; • Provision of catering services;• Fur breeding;• Transportation and brokerage services.

General appreciation of the training courses assigned by the participants is one satisfying, most of them mentioning the high utility of the courses for the proper conduct of entrepreneurial activity. Thus, the average estimate given by the participants in the courses is 4,5 out of 5 maximum points possible.

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Annex II

In order to evaluate the teaching quality of the training courses and to be able to meet the expectations of young people, ODIMM developed an Assessment Questionnaire, completed by the participants at the end of the training courses of the National Programme of Youth Economic Empowerment.

Figure 2.1: Distribution by age of the participants in the training

After analysing the applications, it was noted that young people aged between 18 and 21 years were the most active in the participation of NPYEE, with a share of about 46%.

The analysis of the applications submitted for participation in the training denoted the fact that, young people, enrolled in the Programme, expressed their wish to launch or expand own business in the following areas:

Figure 2.2: Fields of activity attractive to young entrepreneurs

The analysis of the questionnaires showed that after the completion of the training courses, the participants were much easier to identify the areas which required additional knowledge to start own business:

• Preparing tax reports, fees and taxes; • Import/export organization and preparation of documents;• Labour, tax and customs legislation;• Accounting in the field;• Study of the market of the Republic of Moldova and the CIS countries;• Implementation of new technologies in the manufacturing and food industry, in agriculture;

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• Technologies and equipment for preservation and packaging of products.

General appreciation of the training courses assigned by the participants is one satisfying, most of them mentioning the high utility of the courses for the proper conduct of entrepreneurial activity. The average estimate given by the participants in the courses is 4,5 out of 5 maximum points possible.In assessing the results and impact of the NPYEE implementation, ODIMM performed a continuous quality monitoring of the modules for the Programme implementation. Thus, the questioning of the young people trained showed that 85% of participants in the NPYEE appreciated the Programme as having a positive impact on entrepreneurial knowledge.The participants’ opinions regarding the courses was unequivocal, all of them being satisfied with the organization of the seminars, stating that the material was well taught and well documented. At the same time, young people participating in the NPYEE Programme identified the following improvement proposals, some of them being previously submitted:

• Increase age threshold up to 35 years old; • Exempt from VAT and customs charges the equipment imported within the NPYEE;• Possibility to purchase the equipment on the secondary market;• Accept the use of a part of credit to purchase or finance the construction of places, intended for

the manufacture/provision of services;• Grant, for the start-up, a grace period on interest of up to 12 months and on credit of up to 1,5

years;• Allow the use of up to 20% of the credit amount for financing of the net current assets, required

for the process of production or provision of services;• Ensure the credit with no more than 70% of the mortgage at the time of issue thereof, the rest

being later fulfilled with the pledge of the purchased equipment.

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Annex III

In assessing the results and impact of the GEA Programme implementation, ODIMM monitored the quality of the Programme. Thus, the questioning on the Programme was carried out at the end of each GEA training course.Thus, the calculations carried out on the analysis indicated that 80% of those trained were fully satisfied with the course content and 20% mentioned they were generally satisfied.

Also, 62% of people trained mentioned that the training was useful, 38% stated the opposite arguing that there was too much theory and too little practice and that 21 academic hours for one module was too little for training.Thus, the calculations carried out on the analysis indicated that 80% of those trained were fully satisfied with the course content and 20% mentioned they were generally satisfied.

The analysis of the applications submitted for participation in the training denoted the fact that, young people, enrolled in the Programme, expressed their wish to launch or expand own business in the following fields:

Fields of activity (Figure 2)

Commerce Services Manufacturing Agriculture Tourism Other

At the same time, 83% mentioned that they would also like to participate in other seminars organized by ODIMM, especially on marketing, business planning, sales techniques, accounting, financial management and labour legislation.

The GEA training courses beneficiaries requested some other topics such as: – Business ethics;– Safety at work;– NGO’s accounting;– Funds attraction;– PPP projects writing;– Negotiation techniques, to wit agreements conclusions;– Online advertising for entrepreneurs (how to develop a blog or web page); – Foreign language courses for entrepreneurs.

In conclusion, it can be mentioned that in 2011 the number of entrepreneurs’ requests for training increased compared with previous years, and, according to surveys, participants showed great interest.

The level of modules request:1. Effective sales techniques – 10;2. Financial management – 4; 3. Business planning – 14;4. External economic activity and customs relations – 3;

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5. Registration as a VAT payer – 0;6. Human resource management – 9; 7. Labour legislation – 12;8. Marketing for SMEs – 10;9. Accounting in the areas of application – 5.In conclusion, it can be stated that in the reporting period the courses were successfully organized at the request of the persons wishing to be trained, but there were also observed some obstacles such as:

– Continuous change of Small Business specialists within the district sections led to the loss of touch with the contact person in the region with regard to the selection of the GEA groups;

– The lack of financial resources for the promotion of the GEA Programme in rural areas, and the unwillingness of the economic departments to pay for the GEA advertising in local newspapers, was an impediment in the selection of groups in rural areas;

– Choosing a single PSA in organizing of training seminars sometimes made it impossible to organize several seminars simultaneously in different areas of the country (e.g. in winter, when the roads were snowed, the training seminar in Leova district was not organized because the PSA could not go to that region).

– The lack of single places for the organization of seminars in Chisinau, led to the postponement of the seminars.

To avoid such obstacles it was proposed to work with 3 PSA, to wit:■ Segmentation by regions: Central, Northern and Southern regions;■ Conclusion of collaboration agreements for organization courses with Business

Associations in the aforementioned regions;■ Organization of more frequent meetings with the entrepreneurs from rural areas to

advertise the Programme;■ Organization of meetings with the specialists of economic departments.

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