D A e li rl tS| A NANNUAL REPORT ;' A V ,> ns fi 2 00 2 |~~~~~~~~~~~~~~~~~~~~~~~~~otes ;Europest 40111~~~~~~~~~~~~~~~ w;~~~~~~~~~~~~~~r m9 i bv N,, r |g 44 ~ ~ f ., w .I LAI OSI N EZGVN 'I. - --v~% 'eF - -- SotestErp *Vs Cj - tt '' ~tP ',_r Ls a - p' inith, , g~~ YIPn -3 r 'U P % rj-rwrJ j : . InteratIonalFinane Corporation TheWorldBank Group ANNUAL REPORT 2002 SEED'S MISSION To support SME development and improve the overall environment for SME growth and competitiveness in the region. The World Bank Group SME Department MISSION Improving lives by creating opportunities in small business. www.ifc.org/seed SEED Annual Report 2002 Report Coordinator and Editor Denis Obarcanin Editorial Team Mariann Kurtz, Jane McNeil, Hans Shrader, Kathy Wuicik, Senada Hadzagic Photography Denis Obarcanin, Mark Follander, Chris Miller SME Department Support Rob Wright Design Layout Goran Zavadil for Tirada doo, Sarajevo Printing CPU, Sarajevo TABLE OF CONTENTS Message from Harold Rosen, SME Department Director.4 Message from Mariann Kurtz, SEED's General Manager ..................... 5 SEED's Mandate ............ ............... 6 Investment Services .......................... 7 Linkages ......................... 11 Capacity Building .......................... 1 2 SEED Products and Services Evolution .... 1 8 Business Enabling Environment ................ 1 9 Partnership Highlights ....................... 24 Donor Relations ........................... 25 Human Resources and Staff Development ........ 26 SEED's Teams ..................... 27 Contact Information ......... ............... 28 Cover Stefoni workers sorting berries in Pozego - Serbia (see p 9) Photo Denis Obarconin 3 MESSAGE FROM HAROLD ROSEN am delighted with the progress SEED has made in this, its designed the World Bank's new USD 44 million Business second year of operations Its mandate of promoting Environment Adjustment Credit for Bosnia and Herzegovina This sustainable small business development in the Balkans is a project will support new commercial legislation essential to remarkably difficult one, especially since IFC and our donor improving the business environment in customs administration, partners ask it to work simultaneously on so many fronts: raising business licensing and registration, and other areas - important capital, building capacity, improving the business environment for steps in fostering a more dynamic Bosnian SME sector. SMEs, and others Doing so successfully in such a volatile region 'M would be hard for any organization, and I am encouraged by this year's SEED has also been doing good original work in building capacity, such clear signs that SEED has found its way. as with its regional training courses to strengthen the consulting industry. The fact that its 'Development of Consulting as a Business' workshops I well remember the Sarajevo launch meeting back in September 2000 drew 125 fee-paying participants in four countries is a clear sign of All of us who came together then to form SEED realized that much donor- demand being met, and a likely improvement in the quality of local funded private sector development activity was already underway. Still, business development services. we felt there was something to be gained by carefully defining local SMEs' key unmet needs, then pooling our resources in finding cost- There is, of course, more to be done to refine these good initial efforts effective ways to address them. As the manager of several similar SME and, especially, to explore methods to transfer as many of them as facilities around the world, IFC was in a good position to spearhead these possible to the local private sector in ways that will hold up over time. efforts, but knew it had much to gain by working with other partners and None of this will be easy, but I look forward to seeing our good leveraging SEED's interaction with their programs. momentum continue in 2003, and to ongoing close collaboration with all our donor partners in this important work. Two years on, I think we're seeing the kinds of results we all had in mind at the outset. In late 2001 for example, our Austrian donor approached SEED for help in designing a new financing structure that would usher in more of the Harold Rosen term lending so badly needed by SMEs in FR Yugoslavia. The resultant Director collaboration has led to a new EUR 6.6 million credit line from World Bank Group SME Department Raffeisenbank in Belgrade, partially guaranteed by the Austrian government, for which SEED's Investment Services team is helping generate deal flow. This is just the kind of cooperation on the financing side we were looking for. It was also good to see SEED as an important part of the team that 4 MESSAGE FROM MARIANN KURTZ D edication. Teamwork. Tenacity. Vision Supporting small business development in Southeast Europe, SEED's team of local professionals employed all of these _ however, remains a daunting task. The business environments still traits to make our second year of operations a success. lack sufficient transparency and ease of process to attract SEED's team including talented local consultants delivered entrepreneurs into the formal economy. Access to capital remains detailed analyses of business performance and prioritized a constraint to growth as does the ever-changing political climate. recommendations for improvement to 31 companies this year. P Elections will be held in the fall of 2002 in FYR Macedonia, Bosnia Twenty companies benefited from investment plans of which 14 v - and Herzegovina (BiH) and FR Yugoslavia. Albania withstood its were financed for a total of $9 1 million. Nearly 700 jobs were created own change in government last year while FYR Macedonia weathered a or retained in SEED client companies which paid over $90,000 in fees for resurgence of ethnic tensions and fighting. Investor confidence at home SEED's services. More than 1,600 SME employees benefited from SEED and abroad is naturally sensitive to the continued growing pains of the training programs and more than 1 ,000 local business service providers region. received training and technical assistance. These groups paid over $120,000 for SEED's assistance. Still, significant inroads are being made to improve conditions for business. SEED supported the drafting of a leasing law which was These are promising signs that entrepreneurs are beginning to value, and adopted by FYR Macedonia parliament in January. Drafting of leasing are willing to pay for quality advice and services. Given the volume of legislation is currently underway in the rest of SEED's countries. Ministries donor assistance in the region, this represents and important shift from in FYR Macedonia and Serbia dedicated to SME development have dependence on highly subsidized programs to careful selection of partnered with SEED to craft national SME strategies. Meanwhile SEED commercially-based products and services. To support this shift, SEED partnered with the World Bank and local private sector actors to develop selected through a competitive process, over 45 consultants representing new credits to support the business environment and poverty reduction 1 3 firms in the region to act as partners in delivery of our programs. strategies for BiH and Albania, respectively. These consultants work side-by-side with SEED's own local staff to identify clients and design tailored solutions for their needs SEED has formed many effective partnership in the last year with local professionals as well as other donor agencies. I want to express my To further support the local service providers, SEED provided training to appreciation to these partners and our staff for their innovative ideas and help these entrepreneurs in their own right to better market and manage effective collaboration. I look forward to our continued partnership and their own consulting practices. Likewise SEED provided assistance to self- loint success in the years to come motivated business associations to create strategic plans for increasing membership and providing fee-generating products and services. All of these efforts are aimed at enhancing the ability of local service providers to play a valued and sustainable role in supporting the growing Mariann Kurtz entrepreneurial sector. General Manager SEED S SEED'S MANDATE SEED officially opened its doors in September 2000 and currently M1 provides services to the small and medium enterprise sectors in ? Albania, Bosnia and Herzegovina, Former Yugoslav Republic of Macedonia, and the Federal Republic of Yugoslavia (Serbia, -* Montenegro and Kosovo). . SEED supports the development of SMEs as well as individuals and I institutions that serve the needs of SMEs. SEED works in concert with other donors and local institutions to enhance the broader enabling environment in which all of these stakeholders operate. SEED currently offers a broad range of services, including consultancy advice and financial match-making for SMEs, capacity building to local service J! providers, and support for policy and legislative reform. J Zagreb a. >,^ ;* ~~~ ~e~~ e ; R O M A N I A -!_ BOSNIAAND * Be'TWdA_ IV -' CROATIA Y. MANIA SERBIA A- ^ *' HERZEGOVINA .* SEREFA * % FED REP,OF . . Soralevo% YUGOSLAVIA V Q -. *MONTENEG -, rr C- P8igorncaO Koov V -~~~~~~~~~~~~~~~~~~ ~~~~~~~~0 Assembly of electric boxes AB Technics Sarcevo, BiH Tirana AE@ A ,'ALBANIA >-6 \ st;> 2 c X z - CF SME DEPARTMENT WEBSITE: n 0 V st / t W ~~~~~~~~~~~~~~~~~~~~~~~~http: //www. ifc. org /sm e 6 8 >9 w _> INVESTMENT SERVICES SEED Investment Services provides management and financial consultancy to SMEs in the region. The team focuses on finding solutions Consultancy Network to the broadest range of problems and helping firms grapple with the issues that interfere with their successful development. SEED does NOT SEED has developed a strategic alliance with 1 7 local consultancies from SEED's make investments; rather it actively tries to match SMEs with appropriate four target countries The network is designed to extend the reach of SEED's investors and financiers. In addition, our consultancy work focuses on the Investment Services to expand exponentially its capacity to deliver products, and to internal problems that hinder growth and competitiveness of our client support Investment Services with core competencies outside of the financial field. companies. SEED interventions cut transaction costs for both the SME During the past year, SEED conducted competitive tenders to identify and select and the investor, and build confidence in the market for increased local consultancies to participate in SEED's network The applicants were asked investment in the SME sector. During FY 2002, SEED delivered 20 to complete a business plan exercise and define how they would best add value Investment Plans, of which 14 had received total financing of $9.1 million to SEED's mandate In total, the 13 partnership agreements signed encompass prior to June 30, 2002. In addition, 31 companies received an Internal 47 consultants. The agreement stipulates that to qualify for inclusion, the Enhancement Plan (IEP), an in-depth analysis of current operations with consultancy had to be local/locally registered and book no more than 30% of prioritized recommendations for improving their performance. The IEP is their business with SEED quickly becoming one of the most valued products offered to SEED's SME clients. SEED provides marketing training and capital to facilitate each consultancy's market outreach with the aim of identifying a pipeline of potential clients SEED Based on the increasing demand for Internal Enhancement Plans, SEED has provides a second screening to the pipeline, and helps the consultancies tailor an developed a number of new non-investment products to complement the IEP array of services to high potential clients. SEED and members of the consultancy Specifically, SEED and its network of local consultants are now able to specialize work side-by-side on prolect implementation, thereby allowing SEED to maintain and focus on the following four product areas quality control SEED's involvement with and reputation as a part of the 1. FINANCIAL PRODUCTS 2. TECHNICAL PRODUCTS - * Financial Analysis . Process Review 1 CNN., * Financial Modeling * Capacity Analysis * Financial Projections * Capability Analysis * Financial Ratios * Cost Analysis * Valuations * Inventory Management i * Cost Analysis * Purchasing Policy * Breakeven Analysis * Equipment Appraisal * Working Capital Planning * Equipment Investment Analysis I - 3. MARKETING PRODUCTS 4. SOCIAL and * Sales Analysis ENVIRONMENTAL * Market Analysis PRODUCTS * AMarketing Strategy Environmental Analysis * Marketing Plans Members of the Consultancy Network - meeting in Montenegro 7 INVESTMENT SERVICES International Finance Corporation helps to build a trusting and valued relationship between the consultants and entrepreneurs, who are unaccustomed BOSNIA & HERZEGOVINA (BiH) to using consultancy services Fratello Fish and Seafood Products All SEED services are provided to SMEs for fees The fees are set to reflect local SEED brokered a EUR 2 million investment by Horizonte Venture Management market conditions, thus creating or sustaining demand for high quality, local into Fratello, a leading Bosnian fish and seafood products distribution company services on a commercial basis Currently SEED collects the fees and pays the with a 1 2% market share and considerable exports to its neighboring countries local consultants. As market confidence increases in the local consultancy sector, On March 29, 2002, Horizonte signed the agreement to obtain a 30% equity more and more services identified through the Internal Enhancement Plans will be stake in the company for EUR 765,000, and will jointly raise EUR 1 3 million with provided directly by the consultancy network and paid by the client to the local Fratello to finance the construction and establishment of a fish processing and providers. packaging facility in Banla Luka. This foreign equity investment represents one of the first of its kind in the Republika Srpska and is expected to help the overall In the past year, SEED has provided assistance in a number of sectors and to investment environment in the country. companies of various sizes Most notably, our work has helped companies in the food processing, pharmaceutical, metal production and packaging sectors to The Bosnia U -- raise financing in the toughest of financial conditions. Highlights of SEED's work Horizonte - with selected Investment Services clients follow Fund is one of five funds managed by ALBANIA the Venture / Management Algrec Group based Algrec is a Tirana-based frozen food processor that employs 10 full time staff and in Vienna. It is 50-80 seasonal workers The company began operations in 1999 after signing a one of the rental agreement for a relatively modern but state-owned vegetable processing largest fund facility controlled by the Ministry of Public Economy and Privatization The company managers . retails its own brand of frozen vegetables for currently export to markets in Germany and Greece operating in export ~~~~~~~~~Southeast I" ' / \ ~ ~ | Algrec, like most agri-business firms, needs Europe and access to working capital. Since the company includes International Finance Corporation (IFC) as one of its investors. SEED has rents the bulk of its premises and equipment, it developed a strong working relationship with this important but rare source of has very limited collateral SEED prepared a equity capital. SEED provides post-investment services to existing Horizonte report titled "Raising Working Capital" on the investments and selects strong SMEs that are identified as potential investment company's behalf and began a marketing candidates. p45: 18 C ; process to convince a local bank to invest in Algrec. Credins, a private bank hoadquartered in Tirana, has provided an initial USD 50,000 AB Technics loan with an option for an additional USD AB Technics is a private engineering company in Saralevo established in 1991 The . 1 00,000 in the next six to ten months As one firm specializes in varied engineering works, such as mechanical, electrical and of the first loans of its type in Albania, this may hydro technical design and construction As a result of SEED's efforts in creating help create a precedent for SME lending that and marketing the Investment Plan, AB Technics was able to raise financing of EUR 8 Co - was previously considered too risky 600,000 from a local bank and a bilateral credit line Since the company is INVESTMENT SERVICES involved in light manufacturing and engineering products, it is extremely hard to The FGG Risk Reserve identify financing for such companies in an environment in which banks prefer to with Raiffeisen Bank . work with export-oriented producers and trade companies. By working with this Serbia is designed to give company, SEED was able to demonstrate that these types of companies are additional incentives to increasingly becoming part of the banking sector's corporate strategy the bank to provide financing to a broader ; group of SMEs that is A - ' FR YUGOSLAVIA currently excluded from financing. With the help C -a PUM & IMPAZ Dairies ,r m of SEED and with use of SEED has taken an active part in - - I IJ/ the FGG Risk Reserve, . - supporting the development of Stefani was able to ten independent dairy companies finance EUR 225,000 that across Serbia These small and will be used to enhance its W , medium-sized dairies are now processing capabilities > _ looking at merger possibilities and to plant an additional that are likely to improve their 30 hectares of land with a _ - * , overall investment attractiveness. -.u. higher quality and better SEED has helped these yi ) yielding variety of p independent companies analyze ' I raspberry designated for the feasibility/viability of a - export to discerning merger, to undertake J- customers in the EU MM fundamental operating, financial | | D1orde Stevanovic and ownership changes, and to -' . commented on his raise external financing. The - company's cooperation successful restructumang of these with SEED to date "SEED and Its associates helped us resolve many dilemmas. companies should lead to an - =, 9 t X ~ !! As a result we were better able to define the future direction of our business" increased demand for milk . products since the market can _ - - rely on a consolidated, reliable ; FYR MACEDONIA supply. The current structure J involves hundreds of farmers, Plastex suppliers and collectors, all of I" Plastex is a private mcnufacturing firm producing various types of plastic bags whom will need to be integrated used in retail business, industry and households With a 20% market share, the for the system to work efficiently. Mladost dairy in Kragulevoc, Serbia company is one of the largest producers of high-density propylene bags in FYR Macedonia and exports its products to Kosovo, Albania and Greece The Stefani company intends to increase its existing production capacity by investing in a new Stefoni is one of a new breed of integrated private berry processors SEED provided production hall and more advanced equipment SEED's extensive financial and a detailed analysis of the company's current operations and its ability to undertake technical analysis of the company's existing operations detailed its current market an investment and generate a satisfactory rate of return for the new investor SEED's positioning, defined its new business strategy, and checked the viability of the role was crucial in marketing the Investment Plan to Raiffeissen Bank Serbia and in planned expansion prolect The company is now tasked with improving its current providing the justification for the first time use of the FGG Risk Reserve Scheme performance With SEED's assistance, the company is evaluating its strategic options and weighing a much broader range of investment opportunities. 9 INVESTMENT SERVICES Country Client name Industry SEED FY-02 Interventions MGN Lola Fadek IEP IP $ '000 Raised MGN Lola Fadek is a private engineering and Albania ABA Bank Guarantee yes metal processing firm in Skopje that designs, Algrec Frozen Food Processor Food Processing yes yes 50 manufactures and sells various aluminum and Cupi sh.p k Agriculture & Forestry yes steel billboards, light boxes, awnings and Edil AL-IT Construction & Real Estate yes yes similar 'street furniture' used in the outdoor & AB Technics Saralevo Engineering yes 300 ~~~~~~advertising industry. The company also has Bosnia & AB Technics Saraaevo Engineerng yes 300 ombitious plans to export its products to Herzegovina Agros Agriculture & Forestry yes neighboring markets MGN asked SEED for Alarm West Security yes 150 assistance in restructuring, with a particular Bamcard Finance & Insurance yes yes 420 emphasis on how to incorporate a newly Bosnalilek Pharmaceuticals yes acquired company into its core business Since Borghi Agriculture & Forestry yes yes acquiring the company, MGN has redesigned CPU Print works yes yes the production facility and is using SEED's Fruktona Food & Beverages yes 3500 assistance and training in strategic planning to Fratello Food & Beverages yes yes 2200 prepare for further integration of the new GRAFID Printing yes yes facility Invest-Brcko District Construction & Real Estate yes Klas Livno Agriculture & Forestry yes yes Lora Food & Beverages yes J Splonum Construction & Real Estate yes Vitaminka Food & Beverages yes yes IFC Wood Agency Inc Consulting FR ALB - KOS Construction Construction & Real Estate yesLG Yugoslavia Impaz Dairy Assoc. Food & Beverages yes Mobi Corporation Agriculture & Forestry yes yes 470 PUM Dairy Assoc Food & Beverages yes Stefani Universal Agriculture & Forestry yes yes 450 Spektor Chemicals yes Tigar Company Industrial & Consumer Prod. yes Tourism Development Initiative Tourism Vulic & Vulic (FGG) Food & Beverages yes FYR MGN Lola Fadek Industrial & Consumer Prod yes Macedonia Vipro Agriculture & Forestry yes yes Advertising billboard installed near a busy roadway Plastex Plastics & Rubber yes OKEAN Food Processing yes Bela Napoli Manufacturing - Shoes yes Other IS Projects 10 Regional Seebiz net IT n/a n/a n/a LINKAGES Linkages is a program embraced by IFC to explore ways in which SMEs can i) Evaluated the future viability of non-core assets as newly independent SMEs benefit from and participate in the overall economic impact of a Foreign Direct and provided recommendations to enhance their ongoing sustainability and Investment. The oblective of a Linkage initiative is to develop business profitability, relationships and, ultimately, to enhance the financial operating outcomes of ii) Prepared feasibility studies for the SMEs that provide goods and services to larger companies Linkage work creation of new enterprises to LI encompasses the SME supply and distribution chains, SME spin-offs from the provide business opportunities for large enterprise, and the creation of new SMEs needed to support the needs of redundant workers affected by the the larger company and its employees and customers spin-off of non-core assets, iii) Evaluated the sales network consisting of franchisees, wholly-owned outlets, IFC and French industry leader Michelin formed a aoint venture with Tigar, the and independent retailers, and proposed strategies and tools to enhance their region's largest producer of tire and rubber goods located in Pirot, Serbia While internal operations and market performance. the focus of the aoint venture is tire production, Tigar has several other business units not related to tire manufacturing SEED, in partnership with Tigar, is Linkage initiatives consist of various tools, training and technology products examining the possible spin-off of non-core business units into commercially viable packaged together into a holistic methodology that SEED staff can deliver to SMEs. In addition, SEED is supporting Tigar and its new partners in enhancing the clients. Specific tools being developed for the Tigar prolect include: current network of SMEs involved in supply and distribution to the tire production business Specifically, SEED has provided the following services to date: * Business Assessment Tools - step-by-step guide to conducting a business assessment * Supply Chain Overview Training - course detailing key Supply Chain related sublects * Software Packages - products reviewed and recommended by SEED to automate key business processes and communication links between Tigar and f, its distribution network Linkage opportunities should have long term, sustainable impacts for the SMEs, Tigar, and the surrounding community SEED's work with Tigar will yield both experience and tools that can be applied to other large investments/privatizations ,/ ^ u ~ in the Balkans, as well as to opportunities identified through other IFC Project Development Facilities around the globe Making Linkages Work ;'--E \ _ , l= > - -~t \ SEED has partnered with Accenture Development Partnerships (ADP) to develop strategies and tools specific to the Tigar prolect ADP, a not-for-profit group within Accenture, is newly created to provide high quality business and technology consulting skills within a developmental context The group works with a variety ) i ; \ -- - - 1|_ \ < _of not-for-profit organizations in the development sector and draws upon experienced Accenture consultants who are seconded on a short-term basis for _ field prolects SEED's partnership with ADP on the Tigar prolect provides access , to the latest consulting skills and knowledge, as well as to new technologies surrounding supply and distribution chain management ADP is working hand-in- - S > _ ! hand with SEED staff and Tigar to tailor these tools and knowledge to the needs Accenture - SEED -Tigar team at work of Tigar's surrounding SME network 11 C ± PACITY BUILDING SEED's Capacity Building initiatives may be grouped into two main however, will agree that entrepreneurship is a key element in economic restructuring categories - those aimed at SMEs and those aimed at local service and recovery. SEED hopes to help create a positive culture of entrepreneurship in providers. In the first category, SEED delivered a number of training the region by creating high quality support systems for local entrepreneurs programs designed to assist entrepreneurs in planning and running their businesses more effectively. SEED delivered all of these courses in a SEED's Entrepreneurship Development Initiative is designed to develop 'faculty,' a Train-the-Trainer (T) format as well as in direct deliveries to professional cadre of trainers, consultants and professors that will provide on- entrepreneurs. SEED's goal is to develop high quality programs that may going services to entrepreneurs. Key to this goal is equipping the providers with be transferred to local service providers for re-delivery. the skills to teach and train adults The pedagogy of adult education is both specific and new to the professionals in this region In addition, teaching The second category of Capacity Building activities specifically addresses the needs entrepreneurs who may hove large egos and be skeptical of consultants and of select Business Development Service (BDS) providers, including local consultants, trainers, let alone university faculty, adds to the challenge business associations, bank lending officers and local government officials engaged in economic development Some of the tailored initiatives included how to run a SEED's strategy for cultivating entrepreneurship in the region includes small consultancy and how to market consulting services. Similarly, business * Promoting commercial interaction between local service providers and private associations were offered skill enhancements in increasing membership, developing enterprise fee-paying services for their members, and taking a lead role in private-public * Preparing 'faculty' to expose entrepreneurs to the 'real world of business' dialogue During FY 2002, SEED trained over 1500 representatives of SMEs and * Promoting practical business experience for local service providers and faculty local service providers Highlights of selected programs include. of the university of economics * Encouraging universities and institutes to provide education/training courses Construction Contracting - 'How to Prepare Winning Bids relevant to private enterprise for Internationally Funded Construction Projects' * Preparing and encouraging university students to become entrepreneurs Due to the unprecedented demand for training in this field, the number of people SEEbiz.ne (Southeast Europe pre-registering was oversubscribed in three of the four host countries (Albania, Sinet isa ropeb Bosnia & Herzegovina BiH, FR Yugoslavia and FYR Macedonia), with a total of 120 Business Network) Is a regional web - e; attendees. While the abundance of large construction contracts in the region portaol for entrepreneurs This is a provides substantial opportunity for local subcontractors, many lack knowledge of web-based tool designed to provide current industry best practices. This training provides key prerequisites for many entrepreneurs In the region with i a. technically savvy regional firms that are regaining their international competitiveness targeted, sector-specific information .- The three-day training program was developed and delivered by an international The goal Is to create a central _,_ ______ expert in the field in cooperation with a group of four local consultants, one from repository or all business t, t each of SEED's target countries. Those participating in the training included Information relatng to the r , a., industry specialists and owners/managers of SMEs in building construction registraion process, credit lines, , D ., SEED will provide further training on FIDIC-related topics and will support the toaxes, nstitutions, associations, sfi .. sa and 1e°" , i., craino, osrcinidsr uiesascainsol oeta ebr organizations and individuals who provide services to small and medium-sized creitiao OT a construction Industry busmess association should potentil members enterprises To date the portal covers BiH, FR Yugoslavia and FYR Macedonia and contains information on some of the following economic sectors agriculture, Entrepreneurship Development engineering, construction and dairy. The portal also provides useful advice on certification, export of products, forwarding and transport, packaging and Entrepreneurship is often viewed in most post-command economies as the realm of marketing Recently the site has been supplemented by a business news service 12 black marketeers and even war profiteers Economists, politicians and citizens alike, which is updated twice weekly. CAPACITY BUILDING In order to help SEED implement this strategy, we have made concerted efforts to focus and rigorous analysis of information, which results in poor or incomplete identify local partners who have a commercial interest in providing services to planning To address this need, SEED has developed a training program aimed entrepreneurs These local partners are primed to update their own skills and at building CFO capabilities among SME finance and accounting professionals intensify their interactions with the small business community In addition, SEED working both inside companies and independently serving several SMEs. SEED has identified numerous donors and NGOs whose existing programs focus on kicked off the training program in Skople, FYR Macedonia. The training modules entrepreneurship development. As a result of its inquiries, SEED has compiled an were delivered to 1 29 participants in half-day and one-day sessions, 'Entrepreneurship Directory,' available in both hard copy and on-line, that commencing in May and set to run until February 2003 The training materials includes more than 260 entries grouped into the following categories were prepared in collaboration with local accounting and finance professionals * SEED Region university-based entrepreneurship education programs * SEED Region entrepreneurial training activities * world-wide university-based entrepreneurship education programs Development of Consulting as a Business * world-wide entrepreneurial training programs This three-day workshop was implemented in BiH, FYR Macedonia and FR Yugoslavia The program was designed and delivered by Firma 2000, a Polish Business Plan Competition consulting firm with substantial knowledge and experience in training business Many of the region's entrepreneurs come from the ranks of university students service providers in countries in transition. In all, a total of 92 consultants from and recent graduates In order to stimulate their entrepreneurial interests, SEED various consulting disciplines and regions participated in the training Many of sponsored a business plan competition in BiH that also included a series of free the participants were already clients of SEED from previous trainings or are seminars on the topic of Business Planning and Entrepreneurship Apart from the partners in other prolects While many local consultancies have sprung up in the very strong youth-targeted content and interesting array of guest speakers, the transition to a market economy, few have any substantial experience in managing seminars received wide-scale publicity across the entire country and subsequently such a business This training program was designed to help local consultants attracted 37 applications covering 58 applicants The seminars were organized understand the history and evolution of consulting as a business and to offer in partnership with Norway's Business Innovation Programs and the competition received additional support from several local corporate sponsors. An expert panel of local and international ludges selected the winning business plan, 'Win- Win Life Co ' created by Amra Kramo The business idea provided an innovative approach to selling sandwiches in the dynamic Sarajevo fast food market. In addition to receiving official certificates in recognition of their success, winners also received symbolic cash prizes City Tours After attending the Business Plan seminar series, a group of three students formed - ..I 'City Tours,' a Sarajevo-based tour guide company Within six days the company hosted its first tour of the city. Early results from this initiative are promising i CFO Development One of the biggest challenges for SMEs is financial r AA management Although the region boasts many qualified -! bookkeepers and accountants, few have been called upon to Swedish toursts - provide the critical analysis and leadership of a chief visiting Sarajevo, - financial officer (CFO) SMEs thus lack strategic financial with 'City Tours' L. 13 CAPACITY BUILDING practical tools and techniques on how to effectively manage all aspects of their of membership base and growth potential, and a track record of activities and consulting practice, including human resources and finance. Participants were achievements. This screening process yielded seven associations poised to receive widely pleased with the program and offered praise for its practical sublect matter SEED's assistance. Those associations are the Employer's Confederation in the and valuable networking opportunities Republika Srpska in BiH, Unija Cacak 2000, SIGMA, and the Association of SMEs and Entrepreneurs Vrsoc in FR Yugoslavia, the Association of Mushroom Producers Regional Business Association (BA) Program Development and the Association of Bee Keepers in FYR Macedonia, and the National Construction Business Association in Albania. SEED has developed a region-wide initiative to assess the capacities of existing business associations as well as their needs for training and development. SEED Initial assistance to these associations focused on improving the sustainability of staff partnered with Carl Dagenhart of IFC's Private Enterprise Partnership who the organizations by improving their management skills Additionally the target has led a long term prolect of assistance to business associations in Belarus associations received technical assistance to help them improve their abilities to Using Mr. Dagenhart's insight and experience, SEED interviewed more than 30 conduct public relations and to advocate on behalf of their members In the next associations across the region in order to identify those with highest potential to fiscal year, SEED will provide comprehensive training to these partner associations leverage technical assistance The target group was identified using the following in the areas of membership management and strategic planning. criteria- willingness to cooperate with SEED, eagerness to work toward the improvement of the business environment, scope and focus of their mission, size Capacity Building Training Topics 'What will an International Lender Want to Know about My Company?' accurately, pricing and understanding the bill of quantities, international standards Provides detailed instructions on the information donors and international in construction, FIDIC contracts, and access to information on upcoming tenders. banks require in credit applicants. Topics include: market analyses, the strategic planning process, preparing the balance sheet and income statement, 'Agribusiness and EU standards' improving working capital and cash flow by managing operating cycles, and Remains an important topic given the highly developed regional agribusiness sector. financial performance prolections. Topics include. quality control and insurance systems (ISO, HACCP), food safety, facility hygiene and sanitary procedures, product storage and handling, identity Executive Management Development protection, packing and labeling, and EU standards and preferences Exclusively created for Chief Executive Officers (CEO's). Topics include the role of the CEO, using financial statements to manage a company more efficiently, Marketing - Cross Sector the CEO's role in managing resources, improving profitability by strategic This three-day training program for owners and managers of SMEs and management, performance measurement, and management reporting systems business service providers (BSPs) covers concepts and techniques of marketing products and services. Topics include: market positioning, developing a 'Is it time to plan for your company's future?' - Developing a strategic plan marketing mix and plan, forecasting, market research and branding. Topics include. Why should CEOs think strategically? What is a strategic plan2 What is strategic thinking? What is change management? What is the Chief Financial Officer Development Program strategic planning process? The program is intended as a comprehensive course for the needs of a financial manager. It builds on accounting training activities and takes Construction - Winning bids and FIDIC participants a step further in their professional development. Topics include Specifically intended to educote members of the construction industry on the process financial management, managerial accounting and general management. The of submitting successful bids/tenders. Topics include. understanding instructions to course is conducted by domestic and international experts and includes bidders, technical specifications and special conditions, reading drawings lectures, exercises and case studies 14 Capacity Building Initiatives (Direct Support to SMEs and Group-based SME Training) - Fiscal Year 2002 Programs Countries Seed Intervention Progroms Countries |Seed Intervention Train courses/clients Train. courses/clients 1' Jopet BiH Development of accounting & inventory control softwore that 9Fcilitoting the Strotegic FYR Mocedonio, 9 SMEs hove been introduced to the strategic planning process can be used by SMEs at a reasonoble price loling Process FR Yugoslavia and mode aware of its importance to the success of their busi- _____________________________ ~ ~' ness The exercise included writing the strategic plan 19 local 2 'What will a lender want Albania, BiH, Local consultants and SEED staff delivered this training i professionals trained by SEED assisted in the writing process to know about my FYR Macedonia, program to owners and managers of SMEs ),40-Training - Marketing - Regional Designed to assist SMEs in marketing their produds and ca pony," for owners and FR Yugoslavia 3rr5ss Sedor services more effectively and providing business service 'managers of SMEs 't''''pproviders with skills to be able to provide morketing 3 Needs assessment for BiH IEDC Bled School of Management conducted a survey in ; consultations to the SMEs Some of the topics covered -'.c; .;l. - management BiH to assess the interest in a General Management ' included researching the marketplace, strategy for building a Development Program (GMDP) The respondents indicated " . successful brand, marketing communication, designing a limited interest reflecting SMEs lack of willingness to pay for , marketng plan etc Total of 60 partcipants training and development IV,En'trepreneurship BiH First Annual Business Plan Competition (pilot program in BiH) 4 e-w' F gonagement BiH, FYR SEED staff and local consultants conducted the troan..q Auslnesis Plan Competition sponsored by SEED and Partners Includes free seminars on Development for Owners of Macedonia program The training was designed to help the F *n business planning and promoting entrepreneurship for students Small and Medium-sized (27) in matters of executive monagement includir 1,-, , : .; and professors, awarding of prizes and recognition, potential Enterprises monagem,ent and planning, human resources and siralegic funding for start-up capital in the form of grants, loons and planning ~~~~~~~~~~~~~~~~~~~~~~~~~equity in each country for a Business Plan that represents a 5 Credpi Training for Bank BiH, FYR A training of Bank lending officers in order to enhance their venture deemed to be economically viable and sustainable and 5 Credit TrOining for Bank BiH, FYR A traing of Bank lending offlcers in order to enhance their ' that meets other criteria that may be defined by SEED Lending Officers Macedonia skills in assessing business plans and investment proposals 12 Entrepreneurship BiH SEED cooperated with GTZ on a three-day seminar targeted SEED/GTZ Seminor for at textile/leather industry Design and Management students Textile & Leather Industry and young professionals, as well as textile industry managers There were a total of 80 participants The seminar focused on business management, new innovations in the textile industry 6 Tourism Development FR Yugoslavia Tourism Development Initiative in two Municipalities Budva ond encouraging entrepreneurship among young students Initiative Training - Kotor & & Kotor, developing a local tourism strategy, marketing '13 EU Standards Albania The purpose of this training was to enhance the skills and Budva plon, Identification of clients / potential prolects, training knowledge of the modern pracice of agro food processing, needs assessment, training courses, supporting and ,. specifically those that comply with European Union (EU) developing tourism associations I standards Also offered to local SMEs were technical and 7 Winning bids on Albania, BiH, An internatonal and a local consultant conduced a 3-day _ practical training in food quality and food safety issues that Construction Controcts-SME FYR Macedonia, training program for employees of SMEs that are affect marketability and competitiveness Format FR Yugoslavia contractors, sub-contractors and producers of construction 14 Stefoni - Manogement FR Yugoslavia Installation of MIS software and training of accounting staff materials The training addressed international standards in Information Systems (MIS) This software is designed by Japet, o BiH firm specialized in construdion, pricing, access to information about upcoming accounting software for small business construction prolects etc 15 MOBI (MIS) FR Yugoslavia Installation of MIS software and training of accounting staff 8 2001 Balkan Case Regional SEED participated in the case study competiion for selected 16 Entrepreneurship - Regional SEED sponsored four young professors to attend the Internati- Challenge - in Partnership university students from SE Europe organized by World Faculty Development onal Teacher Management Academy (IMTA) in partnership with with Austria's WUS (World University Services Austria (WUS Austria) This multi-national Program - IMTA Professor Central and East European Management Association IMTAs University Service) event brought students from different countries and ethnic Training - Regional two-week program is intended for young faculty members who backgrounds from the region together and included (1) wish to develop and improve their skills and teaching methods Business Case Competition, (2) Low Moot Court and (3) 17 Chief Financial Officer FYR Macedonia A total of 28 modules will be delivered over a period of 10 Model United Nations SEED wos a major sponsor along Development Program months aimed at enhancing the skills of financial managers with Open Society Institute-Budapest, German Academic in SMEs 129 individuals participated in 7 modules thus for Exchange Service (DAAD), CEEC and NIS of the Austrian Federal Ministry for Foreign Affairs As a major sponsor, 18 General Management FR Yugoslavia The purpose of the GMDP is to provide skill enhancement for SEED's intervention included a) contribution of USD 5,000 Development Program members of executive management of SMEs and for b) development of the Business Case Study c) providing independent consultants and firms who provide consultancy training in the methodology of using a case study as a tool services for SMEs This is a 25-day program to be conducted for learning d) serving on the lury that judged the in five 4-day and one 5-day modules from June - November competition e) offering internships to the winners of the Fees collected are for the entire training (June - November) Business Case Study competition The first module - consists of four days training conduded by faculty members of the American College of Thessoloniki Capacity Building Initiatives (Direct Support to SMEs and Group-based SME Training) - Fiscal Year 2002 gErms ICountries ISeed Intervention . s Countries Seed Intervention SME Workshops SME Workshops 19 Cqrersion to the Euro Albania, BiH, The primary objective of this workshop was to increase tegic Planning BiH Half-day pro-bono workshop on strotegic planning for the a d its impact on local FYR Macedonia awareness of the owners and managers of SMEs regarding ss Workshop owners and managers of SMEs, business service providers, logistical issues surrounding the introduction of the Euro in their banks, business associations and government representatives countries and its impact/consequences on their businesses from Zenica municipality During this workshop, the 2Ie -criding Radical BiH, FR Presentotion provided insight into the demands of changing representative of "Japet' demonstrated accounting software ras orotion Yugoslavia from a command to a demand economy and the necessity of managing ond controlling that change This event was spon- b6reof entrepreneurs FYR Mocedonia Twenty successful entrepreneurs were interviewed and their sored by SEED and hosted by Dr Peter Krollic, a senior diredor a is5tfor a TV series results were used for the 10 local TV series on how to become at the McKinsey Dusseldorf office 311 participonts attended a successful entrepreneur 21 Entrepreneurship - FDP Regional Expert partners from Canada came to the region in June ond S of Needs of FYR Macedonia A survey covering 3D partcipants was conduced to determine - Workshops by Centre for conducted pilot workshops and teacher training seminars, Needs the neey cor o poriicipant was om ed toepetermine Entrepreneurship Education round-table workshops on development of entrepreneurial trepreneurs the need for a separate training for women entrepreneurs The Development (CEED) curriculum, further staff development, opportunities to offer non- ' survey determined that skill enhancement needs of women academic training seminars, and inclusion of the private sedor buildingncurse to te staget goup in business education The experts came at a greatly reduced bulding courses to the forget group daily rote and promised long-term no-fee cooperation between their home instdutions and the beneficiaries in SEED region 28 Entrepreneurship BiH SEED compiled a dotabose of 140 potential partners in the SEED is covering their travel and room and board costs Directory region and another 150 world-wide education/training i224*Entrepreneurship - FR Yugoslavia SEED is a partner with GTZ Novi Sad for the expansion and programs This was achieved through reseorch and a series ;ot1y Development reform of the Advanced Business Schools (ABSs) in Belgrade of surveys and individual meetings with donors, SMEs, ~g m ras- Workshops by and Novi Sad SEED has worked with these schools on faculty universities/colleges, business associations, NGOs, and "FR Yugoslavia training and curriculum development in order to improve the training institutions located within the SEED Region The focus and quality of the education they provide to fit to the following categories of information were gathered (1) SEED market needs, namely focusing on subjects related to Region university-based entrepreneurship education entrepreneurship and managing SMEs programs,(2) SEED Region entrepreneurial training .. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~activities,(3) World-wide university-based entrepreneurship BifH The Youth Entrepreneurship Program is designed to introduce octivitie rms() World-wide entrepreneurship education programs,(4) World-wide entrepreneurship CrAi E youth (ages 15 to 25) to the elements of becoming on training progroms,(5) Other sources of entrepreneurship entrepreneur A training workbook and instructor's guide assistance for the SEED Region The purpose for this doto called "The Young Entrepreneur's Advantage" was developed gathering was to determine the qualiy avalability and in partnership with the Organization for Security and distribution of education/training programs, curricula, and Cooperotion in Europe (OSCE) Illustrated in a comic book materials for entrepreneurship development format by a young Bosnian designer, the workbook was presented in 16 one day interactive workshops across BiH 24 Entrepreneurship - one Regional SEED is sponsoring the launch of continuing public-outreach 29Bulding Construction A study was conducted by local consultants and SEED staff off seminars networking seminars for entrepreneurs and aspiring ndtry Study members by collecting information from Building Construction entrepreneurs to promote entrepreneurship, entrepreneurial Companies through Questionnaires and site visits ideas, the importance of training, consulting, associations and networking SEED will assist the partner institution . f .dustry Sector BiH The ISPS was developed initially in partnership with USAID organize the launch of the (2-hour max) seminars and the . f monce Stondards Business Finance (USAIDBF) The baseline statistics are a speakers, etc and guide on promotion and logistics rIS compilation from SME financial statements from fiscal years organization These seminars will aim to attract large 1999-2000 The ISPS has been expanded to show the audiences who will continue to come to the regularly some stotistics based on 2001 fiscal year financial scheduled seminars each month and pay a small statements of over 2900 companies Financial Statements attendance fee in order for the organizers to cover costs of 1' were received from several banks in BiH as well as USAIDBF fees/expenses for consultants, guest speakers, copying, promotion, and serving refreshments SEED agreed to _ _ _ provide initial financial support to cover costs for the first 6 Dlorket Survey of BiH SMEs were surveyed regording their experience using local months of these seminars and will assist, when necessary, in Dnd for BDS Providers service providers to assist their businesses Providers obtoining guest speakers and give guidance on topics of received information about the types of service in demand interest The regular events provide an encouraging by SMEs SEED was able to plon more focused capacity environment for prospective and existing entrepreneurs to building initiaOtives 16 develop opportunities for business Capacity Building Initiatives (Support to Business Development Service Providers) - Fiscal Year 2002 a~m Z - Countries ISeed Intervention omICountries ISeed. Intervention Training Courses Training Courses E~~nuship and BiH- BiH With Junior Achievement International, SEED provided I~nteTEierCos FRM ediaExctvMngmetDelp ntPgrmEDPod Youth ~~~~~~~~~~~~financial support for secondory schools to introduce business IToi FR Yugoslavia "What will o lender wont to know obout my company" in concepts and market economics to students Troin -the -Troiner format A two doy training covering both T-`th~T&=ner course in Albania, Four-day seminar for Local Consultonts from Albanio, FYR topics As a result local consultants have skills to conduct stratgic bsines planning FYR Macedonia, Macedonia and FR Yugoslavia and SEED staff The training i___________ ______ raining for SME's FR Yugoslavia increased awareness of the importance of strategic planning Roundtables and Workshops and change management The Local Consultants have beer uldn in FYR Macedonia A day long workshop designed to increase the capacity of a provided the knowledge necessary to facilitate the strategic 41w!c 1cil[(l-a "cIf5Bid oa osutn opn odlie niomna n planning proess for SME lients and t conduct suc Assessmentsocial development consulting on SEED's behalf to local training for other consultants in a T-t-T format SMEs E-~T`-fivye TM',7E'bp~ment for Albania, BiH, 5- day train-the-trainer format to develop local capacity 0o Wij Tdo,,M- p aty BiH In partnership with Priledor Municipality and the local Owners of SmalLad FY acedonia deliver the Executive Management training courses ao CEOs -Capact- Bu dng Prgramprvtseo,SEDiwrknondelmntfa Mediu-size E,~trprises - of SMEs fr Et"~V4u`shpadStrategy for Entrepreneurship and SME Development for SOM E Dev~~~~~e nt ~Priledor Municipality Thus far work has resulted in delivery "Wha wil a ~7iderwant to Albania, BiH, Train -the-Trainer format to develop local capacity ao of three workshops, two featured consensus building and know abo my 'copony' FYR Macedonia conduct the training for SMeEs the third workshop covered the vision statement and SWOT ffirMS-59 for, B iness BiH In response to a demand from SMEs for iraining on HRanalysissInnadditionndataareeeconomicctrendssffrrtheepastt5 T-n ao `~ns i nrsos oadmadfo Msfrtann nH years was collected and analyzed Total participants 150 Consultat. o595nts on' HR management, SEED provided training on issues such as Management, managing part time and seasonal workers, compensations Z~a uioatyBiH In partnership with Zenica Municipality and the local private developing iob descriptions, determining adequate team fit I Tranin ws dretedatlocal cnutts_ ,Building Pro gram sector, SEED is working on development of a Strategy for orTtrepren4urshipo and Entrepreneurship and SME Development for Zesica R7eg;IP3no.11R7,grn am training Regional 3-day training in Albania, BiH, FYR Macedonia and FR S,ElieorsntMunicipality Thus far work has resulted in delivery of three 'De'velopmret of Consulting Yugoslavia for local consultants Training offers modules on Iworkshops, two featured consensus building and the third ci s"a M 0. '?, n-e ~'s'phases and development of consultancy business, workshop covered the vision statement and SWOT analysis management of consulting operations! project mainagement, In addition data re economic trends far the past 5 years specifics of management of human resources and budgeting 'was collected and analyzed Total participants 150 tools for successful running of a consultancy practice MrMet~ ngtSk ~Is For Albania, Two-day training for local consultants on improving selling Q A n BHPeen idnso ED' eetsuyo fe n ae o Cosuan s FYR Macedonia, techniques and pricing consulting services Advocacy7,1usiness businesses operating in FBiH, and findings of SEED's study FR Yugoslavia ~~~~~~~~~~~~~~~~irc7men,tin BiH of demand for Business Development Services in c ultants FYR Macedonia SEED supported repesentatives from two managemeagribusinesse Purposeseofftheerrundttbbeewanstooincrease M~~en Consultants FYR Macedonia SED supported representatives from wo managementrawareness ofsissues noncerningaassociationsaandppromot Anul rneence (MCA consulting associations to ottend the APPC/FEACC) opportunities far association to develop valued client 200~~~~~~~~~1) ~~~~~International Association of Management Consultants services annual conference where they were able to network with ___________________________ other consulting associations and find tools needed to 41R-titute;of'Dr Josif Poncic - FR Yugoslavia Presentation and discussion of the findings and develop a consultant certification program Medicinal Plants in Federal recommendations of the Balkan Herbal Forum conference tMrre-fi,7for Agribusiness Regional The purpose of this training was to enhance the skills of =P-l IC uol ahedi lvni oagou rmteheblsco -TanteTainer local industry experts, enabling them to conduct individual El7Wnt of Consultant Regional Development of a core group of business consultants that and group training for owners and managers of SMEs on ' !i will support SEED's IS team by its ability to identify and cross-sector marketing tools and techniques review potential clients ~~aJrds in Regional "The purpose of this training was to enhance the skills of Ag ibuinss -Train-the- local industry experts, enabling them to conduct training for SMEs on the sub-sector specific requirements to meet European Union standards Training provided technical and pracicalskils i foo quaityand ood afey isues hat~ 3TrI/Sl~POHerbal "Buyer - BiH Presentation and discussion of the findings and affect marketability and competitiveness Local SlesntIng" recommendations of the Balkan Herbal Forum conference trainers/consultants participate Industry sectors in focus held in Slovenia to a group of herbal SMEs were (a) fruit & vegetables processing, (b) meat processing, t (c) wine mnaking (d) dairy processing 1 SEED PRODUCTS AND SERVICES EVOLUTION As a member of the Committee of Donor Agencies for Small Enterprise designed to help them improve the management of their own consulting Development, IFC and SEED take to heart the Guiding Principles for Business businesses. Development Services for Small Enterprises. These Guidelines issued in February 2001, provide a framework for donors to help them shape their interventions to include increased participation of private sector actors and to provide a diverse Current Approach array of services demanded by entrepreneurs SEED has developed through competitive tenders a 'branded' network of local consultants, which currently includes more than 45 individuals SEED provides A history of donor-provided assistance combined with limited experience of both formal and on-the-job training to network consultants and is facilitating the entrepreneurs with consultants and commercial advisers creates borriers for local, ISO 9000 certification of the work processes and products used by the network. professional service providers Local consultants in particular are met with a lack In partnership with these consultants, SEED aims to ensure delivery of high quality, of trust from entrepreneurs These local consultants, who themselves are new to value-added service to local SMEs. In addition to the consultant network SEED is commercial service provision, often lack the breadth and depth of experience and developing a local 'faculty' of professionals who want to offer training and knowledge to meet the needs of SMEs. technical assistance to entrepreneurs SEED has developed a menu of courses as demanded by the SME sector and is transferring capacity to deliver theses courses In such instances, SEED as many other donors, provides services simultaneously to through Training-of-Trainers. By the end of fiscal year 2003, SEED will have SMEs and to local service providers SEED works with local consultants, training transferred all its training programs to local providers and will exit the direct institutions, business associations, chambers of commerce, etc. to help them provision of training services enhance both the range and quality of services to SMEs SEED then partners with these institutions in order to help establish a value and trust relationship between SMEs and local service providers. SEED's involvement provides assurance to the entrepreneur related to the quality of the work product, confidentiality of company data, access to finance and international expertise and in some instances, skills transfer. As entrepreneurs become more SEED experienced with quality local business service providers as represented in SEED's partners, SEED will be able to exit direct service provision Ss and function as a facilitator of services and client relationships. * Quality Es * Confidentiality Challenges and Commercialization * Access to finance BDS SMES The continued presence of large donor programs offering highly or * Access to Loca fully subsidized assistance to SMEs and high fees paid to local ccernment consultants by donors continue to distort the local service market. international Providers Government Creating a commercial approach to service provision is an essential ex-ertise Financial Inst. ingredient to the full transfer of donor programs to private sector P providers SEED charges all its clients local market rates for the * Skills transfer Government services it provides. That includes paying local service providers a # Financial Inst. market rate which SME themselves are willing to pay. Over the past year SEED has been able to steadily increase its fees and attract local partners willing to work for local rates Even local service providers themselves are willing to pay to receive technical assistance Over 125 local consultants across the SEED region paid to attend a workshop BUSINESS EN ± BLING ENVIRONMENT Part of SEED's mandate is to help improve the business environment for business between municipalities. For example, some municipalities require large, SMEs. Many donors are leading specific projects in this area, or have fixed, up-front payments for building permits, while others require a small up- improved the business environment through by-products of their macro- front payment but demand a high percentage payment of the total building value level interventions, such as structural adjustment loans. SEED strives to Generally, fixed fees are the most fair and transparent means of charging as they work within this framework to raise the often unheard voice of better reflect the transaction cost for the municipality and are not exposed to entrepreneurs, and to partner with other donors to help ensure consistent sublective evaluations. and coordinated efforts on shared priorities. SEED's contributions in this area during the last year include: ~~~~The results of these surveys have been published in booklets for use by entrepreneurs and have been publicized in the press. SEED hopes that by highlighting complicated, unclear and non-transparent procedures for setting costs, it can create a greater awareness of choice among entrepreneurs and FYR Macedonia Leasing Law promote market competition between municipalities Financing options for small businesses in FYR Macedonia have improved considerably through a new leasing law adopted with support from SEED The Developing Business Associations law, passed by the Macedonian parliament on January 31, 2002, authorizes the creation of new, independent leasing companies with a minimum capital of EUR To support Business Association development, SEED 100,000 It also sets clear and transparent standards for the supply of equipment launched a handbook on 'How to Establish and Register to local companies on contract a Business Association in BiH.' The material highlights *:@'^lt^l;2;l4tUil the recent adoption of a law defining the existence of SUSINESS ASSOCIAMiN SEED provided a technical leasing expert to draft a financial leasing law and INBOSNIAANDHERZEGOVINA associations and foundations and allowing for State-level present it to the working group of the Ministry of Finance and a panel of experts registration rather than the less desirable entity-level Since the passage of the low, four large banks have been approved to perform registration The handbook was promoted in five BiH leasing activities, and 16 smaller banks plus three private companies have their locations Sarajevo, Banja Luka, Mostar, Tuzla and applications under review. SEED is due to provide additional support in FY 2003 Zenica SEED estimates that the handbook has directly to build awareness among SMEs on the benefits of leasing and the practical - -l . led to the formation of at least ten statewide business implications it has for their businesses associations in various sectors SEED's capacity building efforts aimed at Business Associations have also shown Comparison of Business Start-Up Costs in BiH and Serbia promising results At the initiative of eight large BiH cable operators and other interested parties, SEED played a key role in facilitating the formation of a Cable Coens SEED has conducted a survey on TV Operators Business Association in BiH Planned for next financial year is a business start-up costs for new one-year program providing technical assistance to seven targeted business enterprises in both entities of BiH associations The technical assistance will focus on general association and in Serbia This survey management, advocacy, public relations, and product and service development examines the financial burden placed on SMEs by municipalities I @E_@ who have substantial influence on LED Development the business start-up process MuNlipALuvicosis b-@@=@ SEED completed Phase I of the pilot Local Economic Development (LED) prolects of STA", ANDOPMrtNG r E@@@-_ @ The survey exposes major in the municipalities of Zenica and Priledor, located in BiH Over the last four 4___=_-__ discrepancies in the cost of doing months, SEED worked with municipal representatives, business associations and 19 BUSINESS ENABLING ENVIRONMENT SME owners on many aspects of LED that has resulted in businesses and donors to raise awareness and discuss issues of SME development * Reviews of business growth sectors in the municipalities; and investment in Albania. Key conclusions include * Creation and operation of four LED working groups (Economic Development, * Financial Sector inhibited by poor enforcements of property rights, moveable Infrastructure and Environment, Human Resources Management and property, and secured transaction laws Specific training and public Agriculture & Rural Entrepreneurship), information campaigns would be beneficial; * Development of a Municipality Executive Body that provides supervision and * Business support service providers inhibited by poor coordination and guidance to the working groups, marketing of services; * Development of the LED Stakeholders Forum. The Forum consists of a wide * Need for improved dissemination of business information - trade and market cross-section of people representing different institutions, businesses and opportunities; organizations in the community The Forum meets regularly to introduce, * Need to develop an alternative to court managed adiudication of commercial discuss and debate LED issues, such as strategy and strategy implementation, disputes, incubators, tax free zones, one stop shops, outreach to community businesses, * Need to reduce unfair advantages for businesses working informally or who fees and permit costs, and inspection reforms. have access to government contacts that lower the cost of business relative to a competitor Phase 11 of the LED project will allow for the completion of Tourism Development Initiative (TDI) in Montenegro development strategy .~ .,>.. documents, the SEED has established the Tourism Development Initiative (TDI) in cooperation with U implementation of a list the municipality of Budva in Montenegro. The municipality put up funds, provided of emergency measures office space and seconded a staff member to work part time with SEED tourism agreed upon by experts to support this initiative. The TDI focuses on creating a tourism association, ( !t1, * --L-e \ - J consensus, the developing a tourism strategy, designing a short-term tourism marketing plan, and - * - L........establishment of an identifying and providing for training needs The prolect's objective is to build Agency for Economic better service skills in anticipation of the summer tourist season and to develop Development (funded strategies to lengthen the season from its current, brief six to eight weeks of - )8 - ! Jl ' by the municipality and concentrated demand. At their v funded and managed own initiative, the local TDI -% |by three Zenica managers registered their business Shown above is the Zenica (BiH) Stokeholders Forum business associtions), so that It may continue to provide- and the establishment services on a commercial basis to of a one-stop-shop in Priledor that offers municipal services to the community the community after SEED's engagement ends in November 2003. Training topics that have L S * SME Map Albania been offered include European A Union tourist industry regulation Together with the World Bank Group's SME Department, SEED completed the first /standards, new tax regulations, draft of the SME Map for Albania The map highlights impediments and tourism marketing, housekeeping and organization for small hotels, apartments opportunities in four key areas: access to capital, access to information, and villas, restaurant organization and service etc availability and quality of business services, and the general business environment As part of the process, SEED co-sponsored a Private Sector Development Roundtable with IFC and the Multilateral Investment Guarantee 20 Agency (MIGA) that brought together representatives of the government, local COUNTRY MAP A I b a n i a (summary page only) Albania is still the poorest country in South East Europe There are marked disparities MARKET SEGMENTATION across regions in terms of social and economic development Number of Private Companies in 2000: * The SME sector has led recovery in many eastern European countries, but this has not Total Domestic Company Joint Venture Foreign Company been the case in Albania to date Foreign investment has been limited and the vast 63,155 59,482 2,164 1,509 majority of enterprises are small and new, and inconsistent enforcement of regulations has encouraged many firms to remain informal Source IMF, 2000 * Almost all enterprises in Albania can be defined as micro or small, with 76 percent of all enterprises having lust one employee Most enterprises are in the trade sector ECONOMIC INDICATORS 1998 1999 2000 2001 because barriers to entry are low Only 10 percent of enterprises are in industry, and GDP Growth (%) 8 0 7 3 7 8 6 0 ~~~~~~~~~more than half of all enterprises are concentrated in the Tirana-Durres-Elbasan corridor GDP Growth (%) 8 0 7 3 7 8 6 0 Inflation Rate 8 7 -1 4-2 5 0 * The adverse environment for SMEs is due in part to the series of crises that affected the country, starting with the 1997 pyramid scheme crisis Political instability, corruption, Exchange Rate (Lk US$) 1506 1377 143 7 na and constantly changing laws and regulations remain barriers to SME development Unemployment Rate 17 8 18 0 16 9 no POLICY INDICATORS * Primary constraints to growth and formalization of SMEs include Albania's failure to implement laws in a consistent and reliable manner, an undeveloped capital morket, Degree of Liberalization Trend poor infrastructure, unresolved property rights, and an underdeveloped ludicial system Banking Sedtor Medium Improving Tradein Regime Medium Steadying The rural sector continues to dominate the economy with more than 62 percent of the Trade Regime Medium Steady population residing in rural areas, and more than half of GDP from agriculture Long- Tax System Medium Improving term growth potential exists for the agribusiness, tourism, and mining industries Regulatory Environment Low Worsening * International studies consistently identify perceptions that political instability, poor Source IMF, 2000 and EBRD, January 2001 management, illegal trade, and corruption are disincentives for investment Business Environment: The business environment suffers from a lack of application and Business Environment: Because of arbitrary and sublective application of laws, there should enforcement of laws (including property security), a harassing and corrupt public be an emphasis on clarifying and enforcing existing laws, in part through training and administration system (especially in customs and tax administration), a lack of the most dissemination campaigns revolving around critical legislation Need to focus on programs basic infrastructure services (roads, power, water, communication) and problems in facilitating communication between the government and business community Finally, need to resolve crises in the electricity sector and poor transportation linkages, which stunt the accessing land and construction permits growth of new and existing businesses and act as disincentives to foreign investment Capital: The inadequacy of Albania's financial sector has been a key factor inhibiting the Capital: To strengthen the financial sector and increase lending by both commercial development of the economy The system is primitive, and most transactions are still in banks and Microfinance institutions, continued work on the legal and regulatory cash The banking sector is still recovering from the 1997 pyramid scheme crisis environment is necessary Focus should be on the enforcement of property rights, Microcredit is available but institutions are still constrained by a repressive regulatory movable property, and secured transaction laws to make lending less risky Additionally, environment, even for non-deposit taking microfinance institutions a focus on increasing the skills of entrepreneurs in business planning and other technical Enterprise Support Services: Studies have shown that many SMEs are in need of support areos would do much to increase their access to loans services such as business plans and basic management, especially to access capital Enterprise Support Services: Strengthen the capacity of Business Service Providers to There is a limited supply of technical and vocotional training and weak accounting and better address needs of clientele and generate real demand for their services auditing services Coordination and marketing of Business Service Providers is also important Information: There is little reliable information on market access, legal and regulatory Information: Increase penetration of Internet Service Providers (ISPs) and create business information websites Support Chambers of Commerce and Business Associations to provide information on trade, markets, and business opportunities Business Enabling Environment Initiatives - Fiscal Year 2002 Country Name of Initiative SEED Intervention Country Name of Initiative SEED Intervention Albania Donors round table Coordination among donors that ore key players in SME support The BiH Business Registration (a The working group initiative was able to attract and secure up to meeting aim of this meeting was to set up a quarterly donor "forum" to share working group whose $700,000 in funding from DFID to support the design of a joint-entity information and coordinate actions related to SMEs aim is to simplify and registration process ond procurement of the hardwore and software streamline the business necessary to implement the new design Review of Poverty SEED reviewed the initial draft of the Poverty Reduction and Growth registration process) Reduction and Growth Strategy This document, along with the Country Assistance Strategy, Strategy is the key planning document for the World Bank in Albania Because of SEED expertise in private sector development and business enabling Survey on public As a port of a country-wide Omnibus Research Survey of 1 000 environment, it focused its review In these areas attitudes of privote participants, SEED submitted a list of five key questions to obtain sector insight on general public ottitudes toward private sector in BiH The PSD round table on Co-sponsored by IFC, MIGA and SEED, this gathering brought findings were disseminated via print media and showed wide business environment together Government, Donors and Business persons to discuss issues spanning prejudices toward the private sector in BiH for SME development impeding SME development in Albanio OECD regional SEED supported the participation of six key BiH and FYR Macedonia corporate governance government representatives in a regional conference on corporate SME Mapping Exercise Development of SME map that anolyses four areos affecting SME development business environment, access to capital, business services and access to information A finalized Map is used to guide government and donor polices and programs that support SMEs Lex Nova - publication Publications consist of filtered and summarized information on proceedings in FBiH and RS Parliament pertaining to lows and regulations that could affect SMEs Four publication were distributed to BiH WB Business Enabling World Bank approved the $44 million Business Adiustment Credit that the internotional community, business service organizations etc Cooperation - IBRD provides o formal green light for the Government to begin the Business Adjustment schedule of planned reforms Some reforms include removal of Credit (BAC) mandatory membership to Chambers of Commerce, reduced days Registration of o This brochure was published following a change in legislation that needed for business registration and inspections, new bankruptcy business association at permitted state-level registration for the first time The brochure was legislation and training, improved access to public procurement for the state level - presented via workshops to the business community in four cities SMEs, and support for alternative dispute resolution Brochure across BiH, and included 97 participants Survey on Fees and Examines business taxes and fees for permits & licenses in BiH Taxes for businesses municipolities in order to draw comparison for municipal officials and operating in both BiH businesses entities The Federation Saroaevo Institute of SEED developed the publication "They've made it-try yourself " This & Republika Srpska Economics "How to publication is written for start-ups SEED also developed a second Start and Manage a publication "Small Business in BiH " This publicotion was developed in Environmental In cooperation with EU's PHARE program, SEED provided inputs on Small Business" and cooperation with the Sarajevo Institute of Economics, and is a Legislation in BiH draft environmental lows with respect to SME compliance with sound They've made it, try it handbook for SME managers SEED disseminated these publications environmental practices yourself' through 8 seminars in different regions of BiH talf of these seminars targeted final-year students of Economics and half trageted SME Survey on SME In cooperation with Babson College US, surveyed a sample of 130 owners Demands for Business private SMEs in BiH in agribusiness, construction, transport and IT Support Services in sectors Received information about the type of services in demand by FYR Mac SME mop (key SEED revised the SME mop (last version dates Fall 2000) The Mop is BiH SMEs SEED was oble to plan more focused capocity building development issues one of the key programming tools for SEED, International donors and initiatives and priorities for SMEs) The Government in identifying key reform priorities in SME and ______________ ______________ ______________ ______________private sector development Key findings include A non- transparent Credit Guarantee A group of interested parties, including foreign commercial bonks, and poorly established banking sector, poor enforcement of property Institution SEED's donor FGG, international organizations ond BiH Government rights, inadequate dissemination of business information etc proposed to organize o Credit Guarantee Institution (CGI) SEED examined the feasible organizational structures, operations of the CGI & developed a financial model to determine the appropriate size of a Support of Ministry of Technical ossistance to the Ministry of Economy to develop a Notional Credit Guarantee fund Ultimately SEED's work concluded that the Economy an SME Strategy for the SME Setor In FYR Macedonia Logistical support In best form of credit guarantees would be to directly torget banks and strategy and law organizing 4 public forums to present the draft SME strategy not through the creation of an institution 2 2 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Business Enabling Environment Initiatives - Fiscal Year 2002 Country Name of Initiative SEED Intervention Country Name of Initiative SEED Intervention FYR Mac Development of Leasing Requested by the Ministry of Finance, SEED provided technical FR Yug Survey of fees and taxes SEED conducted a survey of all molar fees and toxes for business Law for FYR Macedonia assistance and in-depth expert reviews of Leasing Law drafts which in FR Yugoslavia operating in Serbia with the emphasis on the price differences resulted in the adoption of a leasing law by parliament between municipalities Major findings are organized and published in o form of booklet which will prompt competition among municipalities Expected completion is in September 2002 Republic of Serbia - With the Committee for Development and Foreign Economic Relations, OECD regional SEED supported the participation of six key BiH and FYR Macedonia Notional Assembly SME SEED co-financed the second of 3 meetings with key Serbian corporate governance government representatives in a regional conference on corporate support Parliament and Government Officials responsible for Business roundtable in Romania governance Development Policy in Serbia and FR Yugoslavia SME strategy SEED supported the development of a Serbian SME strategy with the Committee for Development and Foreign Economic Relations The ZELS (Association of Enabled local municipalities to present their regional programs to the strategy was presented to the government for consideration Macedonian business community and NGO's Donors presented their programs municipalities), first and learned of plans for local government development Common municipal fair 2001 issues discussed included attracting and retaining business, Workshop On SEED raised aworeness of local stokeholders of the importance of information on business development and credit programs and Deregulation of deregulation of the economy and gave examples of successful networking with municipalities on provision of services Economy in Serbia (Co- deregulation in countries neighboring Serbia A committee on financed with WB, deregulation was formed as a result of the two day workshop It FR Yug Financial leasing Presentation to Interministerial Committee on leasing issues and USAID and GTZ) identified business registration as a priority reform it will concentrate presentation to legislation As a result government officials are better informed and on over the course of the next FY representatives of the supportive of financial leasing and have agreed to form a working Serbian Government group for drafting financial leosing legislation Regional Balkan Herbal Forum SEED organized o regional conference on the wild herbs business and YU commerckls sector in the Balkans Using regional & international experts, the banks conference (which Included 95+ prticipants) focused on roaising Ad Hoc CommiHee for SEED is an active member of the committee The work of the awareness of sustainable business practices in the sector, and legal reform committee includes recommending various ways to carry out legYl recreoted required trade conaact lost during ihe break up of reform The committee also serves as basis for individual donor I Yugoslavia involvement in passage of reform oriented laws Current focus is on SME low SME Development Strategy in Serbia and FYR Macedonia Establishment of a Risk FGG Austria partnered with Raiffeisen Bank Yugoslavia to create a Reserve Fund for SMEs $ 600, 000 Risk Reserve to leverage a $ 6 million credit line for SME SEED and its local partners prepared a draft Strategic Plan for SMEs in Serbia lending SEED will bring potential SME deals to Raiffeisen for a credit that was adopted by the Parliamentary Committee on SMEs This strategy has review If approved SEED will perform a due diligence process been presented to the government in the hope that it will contribute to SME required by FGG In order for the loan to benefit from the risk reserve developmental plans The strategy was developed using extensive public debate In Belgrade and nine other regional cities, representatives of businesses, NGOs, local government, business associations and other interested parties gathered for Leasing Legislation SEED has retained an international leasing expert to work with the up to five hours to discuss key business developmental issues inteministerial working group to draft a leosing low for submission The work Is ongoing and currently the 1st draf Is set for completion In SEED also assisted the Ministry of Economy in FYR Macedonia to draft a National early~ ~ ~ ~ ~~~~~~~~trtg Octbe 2002u uic ouswr el opeetan ics h Chamber of Commerce SEED supported an evaluation of the existing Chamber of Commerce Strategy for SMEs Four public forums were held to present and discuss the Study system in Serbia, and provided several recommendations for reform draft, which has been adopted by the Macedonia Government Further public The Chamber has accepted the review and is seeking assistance to consultations are expected over the coming months speed up implementation of reform measures 23 P RTNERSHIP HIGHLIGHTS by FGG and review the eligibility of the loan to benefit from the risk reserve Entrepreneurship Loans eligible for the risk reserve protection must meet several criteria in addition to those normally extended by the bank, including such factors as -' ~~~~~OSCE Youth Entrepreneurship reduced collateral requirements (no more than 1 80%), extended life of loans EZ ,. , ,As part of SEED's Entrepreneurship initiative, (more than three years), and reduced company lifecycle requirements (no i\> Vp<> l SEED partnered with the Organization for more than three years in operation) Security and Cooperation in Europe (OSCE) v1i ty f/1/lj _ to develop a progrom to promote World Bank Credit to BiH to Improve Business Environment 11gSS !,1!/ I , I//f/I entrepreneurship among youth The L/! 'IL/H program was designed to introduce youth The $44 million Business Environment Adiustment Credit (BAC) for BiH was between the ages of 15 and 25 to the approved by the World Bank board in May 2002 The BAC supports the BiH - ;-Vk > 9\aisy fundamentals of becoming an entrepreneur Government's reform program to improve the investment climate to attract A training workbook and instructor's guide, domestic and foreign investors. Implementation of the BAC-supported reforms titled "The Young Entrepreneur's represents an important milestone in the realization of the Government's 2000 to k ,y . ,-W /JA Advantage," was developed by a SEED staff 2004 economic development framework adopted by the Parliament last year, member and illustrated in a comic book which envisions private sector growth as key to economic sustainability and format by a local Bosnian designer The reduction of poverty Specifically, the credit supports the following elements of the workbook was presented and moderated in Government's reform program 1 6, one-day interactive workshops across Bosnia and Herzegovina (BiH) by SEED staff * Facilitating business entry through the creation of a simplified and transparent and local consultants countrywide approach to business registration, and licensing and a strengthened legal framework and capacity for attracting foreign investment, * Streamlining business operations by reducing administrative and regulatory -/ , ,X /~' l 1 Austrian Credit Risk Reserve compliance costs through the rationalization of inspections and regulations; , =,. Increases Financing Options for building judicial and extra-ludicial capacity to resolve commercial disputes; fMes FR i,, _ , Improving enforcement of secured transactions, and ensuring equal access to - i >E/S aMEs In YR Yugoslavia public procurement, and, ;. . y~. v>; - /~ . The Finanzierungsgarantie-Gesellschaft mit * Easing business exit through strengthened bankruptcy and liquidation systems beschrankter Haftung (FGG) signed an agreement with Raiffeisen Bank FR SEED partnered in this significant development by contributing staff (a legal and .2t Yugoslavia in February 2002 to establish an policy specialist) to the BAC task team As a result SEED helped prioritize and Q i/i hil|V/Il,9, JSME credit support program. Austria's keep track of commercial legislation essential to improvement of the business Ministry of Finance, through FGG, placed EUR 663,600 on deposit with enabling environment and to those areas of the reform supported by BAC Raiffeissen Bank to leverage a credit line of EUR 6.6 million for medium and Furthermore, SEED's lobbying efforts influenced the Government to move forward long-term loans to SMEs over the next 24 months FGG's contribution is with key pieces of legislation essential to the reform program. intended to reimburse Raiffeissen Bank for defaults on loans that have been granted under this program. Extension of loans under this program is This project is an integral part of the Government's strategies to reduce poverty contingent upon close examination of the investment and/or business plan and fight corruption The reform program also is a pivotal component of the that demonstrates the commercial viability of the prolect. SEED has been World Bank's overall program in Bosnia and Herzegovina, which lays out a tasked with carrying out a key role in this process. SEED will analyze potential graduated assistance strategy aimed at helping the country undertake necessary SME deals in addition to the review carried out by Raiffeissen Bank Once reforms to accelerate the country's transition toward self-sustaining growth and 24 approved for a loan, SEED will complete the due diligence process required away from a dependency on aid. R = Il. = 1 D = IFs DONOR RELATIONS Donor Participation In May 2001, SEED's donors supported the expansion of SEED into the Federal Republic of Yugoslavia. SEED required additional funds to support that expansion and not disadvantage programming in the countries originally included in SEED's mandate. SEED donors Austria (FGG), Switzerland (SECO), Norway (Ministry of Foreign Affairs) and IFC jointly committed an additional $5 3 million to support the expansion Current donations and disbursements are summarized below DONOR MINISTRY AGENCY COMMITMENT (US$equiv.) DISBURSED Austria FGG 2,304,710 2,304,710 Canada CIDA 1,364,866 1,364,866 Greece Ministry of National Economy 250,000 250,000 Netherlands FMO 5,000,000 2,000,000 Norway Ministry of Foreign Affairs 3,200,000 3,200,000 Sweden SIDA 2,212,160 2,212,160 Switzerland SECO 4,000,000 4,000,000 United Kingdom DFID 868,558 582,203 Slovenia Government of Republic of Slovenia 200,000 200,000 IFC 6,000,000 3,500,000 SEED Belgrade Office Marks its First Year of Operation -TOTAL COMMITMENTS | 25,400,294 | TOTAL DISBURSED T_19,613,939 l SEED officially launched operations in the Federal Republic of Yugoslavia on September 25, 2001 SEED's activities will complement the reconstruction and _ development activities of the World Bank Group and other multilateral and bilateral donors in FR Yugoslavia. SEED General Manager Mariann Kurtz loined the Federal Finance Minister, Prof. Dr Jovan Rankovic, at the ribbon cutting at the Belgrade office that formally launched SEED's activities in the country. Dr Rankovic remarked that Yugoslav authorities look forward to working closely with SEED and the World Bank Group to support SME v development, which is the key to the country's growth and prosperity "The opening ia A l] of SEED's offices in Belgrade represents a great step forward for Yugoslav 1 t; - entrepreneurs" Ll 2 _ , ~~~~~~~~~~25 HUMAN RESOURCE AND STAFF DEVELOPMENT Today SEED is nearly 1 00 percent staffed with 80 SEED Organization Structure professionals across five offices in the region Each country office has a program coordinator, at least one team member General Manager for each strategic business area of SEED's work plus -crrAbiKQ" necessary support staff. The most significant addition to SEED's staff this year has been the appointment of Rashmi Kharbanda as Senior Resource Management Officer Ms T Kharbanda joins the management team with more than 10 Investment Services Capac.rv Budi ng SME Capacity Building Senior Resource Management Officer evak, Business Development Services (BDS) ~ ~~W K, od1~ years of audit and internal controls experience with 1 ) a u_ n u E PricewaterhouseCoopers She previously managed a local audit team in BiH for two years and most recently served as a Fnar 1 prolect manager in Vietnam Ms. Kharbanda will manage SEED's finance, administration, HR and reporting functions. Country Country County Admin4stm One of the most important tertiary benefits to SEED's work HAM ResouJ fce is the regional integration of local professional staff. SEED team members represent all ethnic groups within the Metncsj _ region Staff travel frequently between countries to work Evaouo0ho l_ together on projects, activities are planned for the region as a whole. Those staff involved in commercial prolects have formed a regional working group to develop a business _ plan for their eventual Spin-off from SEED Into a private Albania Bosnia & Herzegovina FR Yugoslavia FYR Macedonia plan or thir evntualspinoff fom SED int a prvateProgram Coordintr Porom Coordincator oroCoordinator PC,rgia1 Cooiclnai consultancy The importance of such cross-border andBo aLvIalgIBB cross-cultural relations cannot be underestimated and represents an important building block for the region's peaceful and commercially viable future SEED team building workshop Lake Bled, Slovenia (Ot k~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ oi a*o - SEED Staff, i 26 children's porty. _e 26 Sarajevo, BiH ; SEED'S TEAMS Albania Staff FYR Macedonia Staff -~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~- Iff At Management Team I - , Standing left to right: Enkeleda Kuka, Irena Beqiral, Ledia Left to right: Lene M,kkelsen, Zoran N:kolovskt, Valentina Terpo, Doriona Bilal, Anita Bashilar, Irena Gribiz / Popovska, Valentina Paskalova, Notalila Stolanova Keler Glika Seated left to right. Fatos H da, Silvana Rust, - / < Pesevska, Goce Toleski, Magdalena Soljakova, Anica Taom Papadhopulli , J - ' 1 v Markic, Dragan Kolevski, Zoran Martinovski B Not present: Afrim Hairedin, Glorg, Miskovski BiH and Headquarters Staff FR Yugoslavia Staff A K =k^ ^! i -\ t * \t-r t>t < I ill' , _ >;;1= Left to right: Jane McNeil, Anila Bashilari, Hans Shrader, Rashm. - A ; 5 Kharbanda, Lene Mtkkelsen, Mariann Kurtz, Volislav Kandic (acting A -\ A 4Program Coordinator FR Yugoslavia), Alexander Paine, Leila Drognic * - Left to right: Denis Mesihovic, lsmeta Agic, Tamir Mostarac, Igor Tutnievic, Almir Ahmethodzic, Azra Delolic, Edin Hukic Denis Obarcanin, Samir Besirevic Below left Standing left to right: Hans Shrader, Djordje Petric, to right. Smillano Vuletic, Nerma Karic, Jasna Arnautovic, Stevan Gregovic, Aleksandar Pavic, Wasilis Laitsos, Almira Tahirovic, Ivana Curic, Amila Dedic, Sasa Zoe- Olivera Sredolevic, Natali1a Cordero, Lana Vukovic, Miric, Senada Hadzagic, AlIa Dtzdarevic, Gordana Mehrdad Etemad, Vladimir Ilic, Biserka Jevtimilevic- Alibasic, Iso Abinun, Dragon Alanovic. Seated left to right: Drin1akovic, Jelena Avramovic, lvana Vranitcan, Milica Senada Havic-Hrenovica, Lada Dervisbegovic, Sanela Vukadinovic Seoted left to right: Jasmina Vignievic, Pasic, Samira Sauvage Not present: Edin Terzic, Andrew Miriana Popovic, Sonia Velasevic G Anderson, Goran Zaric, Chris Miller, Adnan Dulic, Not present: Predrog Matic Davorin Pavelic, Adnan Mededovic, Stevo Topalovic CONTACT INFORMATION SEED Headquarters Sarajevo Office The World Bank Group Tel.: (+387-33) 251 -555 Hamdije Kresevljakovica 19/1V Fax: (+387-33) 21 7-762 71000 Sarajevo seedinfo@ifc.org Bosnia and Herzegovina Contact: Lejla Dragnic Belgrade Field Office Skopie Field Office SEED SEED Kneginje Zorke 96-98 Ulica Makedonija 9-1 1/l1l 11000 Belgrade, FR Yugoslavia 1000 Skople, FYR Macedonia Tel.: (+381-11) 3023-750; Tel.: (+389-2) 223-306; Fax: (+381 11) 3023-740 Fax:(+389-2) 223-298 Contact: Mehrdad Etemad Contact: Lene Hoimark Mikkelsen Pristina Field Office Tirana Field Office SEED SEED The World Bank Group Deshmoret e 4 Shkurtit, nr 34, Sky Tower 8th floor Tirana-str. N-35 Tirana, Albania Pristina, Kosovo Tel.: (+355-4) 2 231-401; Tel.: (+381-38) 249-459; 249-998 Fax (+355-4) 2 231-260 Fax: (+381-38) 249-780 Contact Anila Bashllori 28 www.ifc.org/seed www. ifc.org/seed CO-FINANCED BY: = uE:: o IFC Th. Wo Bk Gw AUSTRIA CANADA GREECE NETHERLANDS NORWAY SLOVENIA SWEDEN SWITZERLAND UNITED KINGDOM InthamsIoI FiaMl CopomIItO