Technical assistance to improve the business environment for small and rural enterprises in Montenegro

Project information

The project provides technical assistance (TA) to support the Ministry of Economic Development, the Directorate for SME Development (SMEDA) and its regional offices, the business support services and entrepreneurs:
(i) Building capacity in central and local government for dialogue with the private sector leading to the elimination of current business barriers; including assistance with the design, drafting and implementation of a regulatory framework consistent with the EU Acquis and the development of training, monitoring and evaluation strategies.
(ii) Improving access to finance for small and rural enterprises – especially those in the poorer regions- through the credit guarantee fund, in line with EU and international best practices, in the context of global crisis participating in mitigating the risk of credit crunch.
(iii) Development and implementation of business incubators, including further support to the recently created incubator in Podgorica, and expansion of such initiative to the northern region of the country.
The expert provided by BBA mainly contributed to the results under the second component of the TA, improved access to finance for SMES. The two main results to be achieved were:
1. Improved access to finance for SMEs, particularly for small and rural enterprises in less developed regions of Montenegro.
2. Establishment of a professionally and efficiently managed credit guarantee institution operating in a effective, transparent and sustainable manner according to the international best practices.
Among others, measurable indicators of progress towards achieving expected results included the following:

  • The credit guarantee fund was effectively established, and operational;
  • Trained management and staff;
  • Reduced budgetary outlays for direct credit support to SMEs;
  • The credit guarantee fund was performing by the end of the project duration on the basis of the following indicators: Number of Guarantees; Value of Guarantees; Value of Loans Assisted; Volume of lending and number of bank loans extended to SMEs in rural and less developed regions; Number of business entities assisted;
  • Reduced budgetary outlays for direct credit support to SMEs;
  • An increased number of SMEs in agricultural and rural areas have access to finance.

Status : Closed

Date : 03-2010 -> 08-2012

Countries : Montenegro