Outline of the Project

Project Name

Project on Establishment and Promotion of Mentoring Service in Small and Medium Enterprises in the Western Balkans (Phase 2)

Country

Bosnia and Herzegovina, North Macedonia, and Serbia

Date R/D Signed

Bosnia and Herzegovina: February 8, 2017
North Macedonia: September 23,2016
Serbia: September 5, 2016 (Phase 2)

Project Site

The entire country

Term of Cooperation

From September 1, 2017 to August 31, 2020

Implementing Organization

Bosnia and Herzegovina: Ministry of Foreign Trade and Economic Relations (MOFTER), Federal Ministry of Development Entrepreneurship and Crafts (MODEC) of FBiH and RARS of Republika Srpska
North Macedonia: Agency for Promotion of Entrepreneurship of the Republic of North Macedonia
Serbia: Development Agency of Serbia (DAS)

Background

This project is to be implemented in 4 countries, namely Serbia (hereinafter referred to as SRB country), Bosnia and Herzegovina (hereinafter referred to as BiH country), Montenegro (hereinafter referred to as MNT country, and Macedonia (hereinafter referred to as MKD country). All these 4 countries were part of the Socialist Federal Republic of Yugoslavia formed after the Second World War. In the 1990's, these four republics declared independence except for Serbia and Montenegro, that kept existing as a union state until 2006. Currently the situation in each country has calmed down and economic development is going on. 2008 financial crisis had negative impact on the economic conditions and resulted in the negative growth trend in 2009: -3.5% in SRB, -2.9% in BiH. -5.7% in MNT, -0.36% in MKD). Since 2001, economic growth remains on the level of 1~2% for each country.

The Governments of each country have great expectations for SMEs as they occupy the majority of domestic enterprises and have the majority of domestic employers, in terms of revitalizing the economy, absorbing unemployed persons and relaxing trade deficits. Meanwhile, the targeted SMEs in the 4 countries have problems in financial access, administrative procedures, domestic inequitable competitive environment and other issues.

While the governments of the 4 countries are developing the policies and institutions aimed at strengthening the competitiveness of SMEs with EU system as a model, due to budget constraints and other factors, the organization of SME support institutions still has weaknesses, and it is necessary to strengthen the capacity of these institutions to support SMEs.

Considering the above, JICA has started to provide technical assistance on establishing of the mentoring service system in SRB since 2008, based on the Japanese experience of the economic advisers for enterprises. Implementation of Mentor System Organization Project in 2008~2010 was targeting improvement and establishing of the mentor system that would conduct company diagnosis and provide advice for SMEs.

Mentoring service system was introduced in many regions of Serbia, however after the project was completed, the issues regarding the quality of the service and the training system for fostering mentors had remained. Also there was a request from the neighboring countries such as BiH and MNT to design and establish a similar system.

Therefore, in 2013~2016 period, using the improved mentoring service system in SRB as well as cultivated mentors and considering the request from the neighboring countries BiH and MNT, also targeting the strengthening of the cooperation of the countries, the project called "The Project on Establishment and Promotion of Mentoring Service for Small and Medium Enterprises in the Western Balkans (hereinafter referred to as Phase 1) was implemented.

During Phase 1, mentoring system in the 3 countries was designed and improved, SRB requested to receive guidance of Kaizen for its mentors and also support for the mentor evaluation system, while BiH requested to expand the project to the whole territory of the country and accomplishment of the trainer system development, whereas MNT also targeted the accomplishment of the trainer system and receiving continued support. Adding to the above, there was also a request from MKD to establish mentoring system for SMEs. In this relation, JICA has planned Phase 2 of the project, geographically expanding to the territory of the 4 countries, introducing Kaizen system and designing new support system for SMEs.

99% of the registered companies in Serbia are SMEs, and they play an important role in economic development and employment. The Project aims to establish a "Mentor Service System", in which the mentors provide practical advice to SMEs to grow their business. This system is based on the Japanese experience of the government-certified business advisers for SMEs. JICA started the first phase of the Project in Serbia in 2008; it expanded to BiH, North Macedonia and Montenegro in phase 2 of the Project.

The Overall Goal

The mentoring service for small and medium enterprises (SMEs) is maintained and expanded in Western Balkan region (SRB, BiH, MNT and MKD), and SMEs in the region continue to develop their business by using mentoring service..

For Bosnia and Herzegovina: Improve mentor training system by providing training for the mentors, develop system of support for SMEs by expanding mentoring system to other regions benefitting mentoring service. Increase classroom trainings and cultivate OJT trainers. In addition, after Kaizen trainers in SRB are cultivated: implement OJT and Kaizen classroom trainings in BiH under collaboration with trainers from SRB.

For North Macedonia: Design and support mentoring system, plan capacity building for the SME supporting organizations and cultivate mentors. Implement OJT and Kaizen classroom trainings in North MKD under cross-border collaboration with trainers from SRB.

For Serbia: Cultivate new OJT trainers. Introduce Kaizen methods to the mentor educational system. Cultivate trainers for Kaizen classroom training and Kaizen for OJT. Also, support mentor trainers from SRB to cultivate mentor trainers in other countries. (Enterprise diagnosis and OJT)

Project Purpose

Mentoring service for SMEs is improved in terms of service contents and implementation structure, and inter-regional mentoring system is established.

Output

1. Mentoring system is established and improved
2. Sustainable mentor training system is established
3. Inter-regional mentoring system is established
4. Base for bussines linkage among Western Balkan and foreign enterprises is established

Project Activities

1-0	A baseline survey on SMEs situation and SME policy implementation issues is conducted. (North Macedonia)
1-1	Mentoring service is established (BiH and North Macedonia)
1-2	KAIZEN methods and others are included in mentoring service, and the service content are improved (Serbia and Montenegro)
1-3	Model site implementation of the service is conducted. PR seminars are organized upon considering the necessity (BiH, North Macedonia)
1-4	Government budget for the service is alocated (4 countries)
1-5	Service evaluation system, mentor qualification renewal system and former client
1-6	Nation-wide service delivery plan is formulated (4 countries)

2-1	Mentor training plan is formulated (4 countries)
2-2	New mentors are trained (4 countries)
2-3	New class room trainers are trained (4 countries)
2-4	New OJT trainers are trained (4 countries)
2-5	Training modules of Kaizen are prepared and conducted. (Serbia, Montenegro, BiH, North Macedonia, if necessary)
2-6	Training modules for export promotion and linkage with foreign enterprises are prepared and conducted (Serbia, Montenegro, BiH, Macedonia, if necessary)

3-1	Country and inter regional mentor conferences are organized (4 countries)
3-2	Inter-regional mentor conferences are institutionalized in the national mentor service structure (4 countries)
3-3	Implemention structure of inter regional mentoring system is dicussed and established

4-1	Information of bussines climate and local enterprises is completed (4 countries)
4-2	Information of bussiness climate and local enterprises is provided to Japanese enterprises (4 countries)

Inputs

[Japanese side]

(a) Dispatch of Experts
- Mentoring system/project coordination
- Mentor training
- Kaizen training
- Investment climate information

Bosnia and Herzegovina:
(b) Training
Counterpart training in Japan and/or third countries
Input other than indicated above will be determined through mutual consultations between JICA and MOFTER during the implementation of the Project, as necessary.

North Macedonia:
(b) Training
Counterpart training in Japan and/or third countries
Input other than indicated above will be determined through mutual consultations between JICA and APERM during the implementation of the Project, as necessary.

Serbia:
(b) Training
Counterpart training in Japan and/or third countries
Input other than indicated above will be determined through mutual consultations between JICA and DAS during the implementation of the Project, as necessary.

Inputs

[Bosnian and Herzegovinan side]
BiH side will support the Japanese side in the following matters:
(a) Services of MOFTER's counterpart personnel and administrative personnel ( including personnel's salaries) as referred to in II-2;
(b) Suitable office space with necessary equipment;(by RARS and SERDA)
(c)Identification cards if necessary; and
(d)Running expenses of the BiH side necessary for the implementation of the
Project, in accordance with the capabilities, SERDA and RARS partially will cover the costs (JICA will not cover the cost).

[North Macedonian side]
Input by APERM
APERM will support the Japanese side in the following matters:
(a) Services of APERM's counterpart personnel and administrative personnel as referred to in II-6;
(b) Suitable office space with necessary equipment;
(c) Supply or replacement of machinery, equipment, instruments, vehicles, tools, spare parts and any other materials necessary for the implementation of the Project other than the equipment provided by JICA;
(d)Credentials or identification cards if necessary; and
(e)Running expenses of the Macedonian side necessary for the implementation of the Project.

[Serbian side]
Input by DAS
DAS will support the Japanese side in the following matters:
(a) Services of DAS's counterpart personnel and administrative personnel as referred to in II-6;
(b) Suitable office space with necessary equipment;
(c) Supply or replacement of machinery, equipment, instruments, vehicles, tools, spare parts and any other materials necessary for the implementation of the Project other than the equipment provided by JICA;
(d)Credentials or identification cards if necessary;
(e)Running expenses of the Serbian side necessary for the implementation of the
Project; and
(f)Expenses necessary for transportation within Serbia of the equipment referred to in II-5 (1) as well as for the installation, operation and maintenance thereof.