SME development through business advisory services EBRD Small Business Support programme for SMEs

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1 SME development through business advisory services EBRD Small Business Support programme for SMEs

2 Small Business Support (SBS) Through SBS, EBRD facilitates SME access to a wide range of advisory services: marketing, IT solutions, environmental management, organization, financial management, energy efficiency and others. EBRD offers flexible grants of up to 75% of the total net cost of a consultancy project undertaken with local consultants Grants between 25-75% Maximum grant Maximum length 10,000 euro 6 months 2

3 Grant financing scheme in

4 Eligibility criteria Up to 250 employees; up to 50 million euro turnover Majority privately and locally owned Operating for a minimum of 2 years 4

5 SBS does not support Companies operating in: banking and financial services; insurance; vodka/spirits production; tobacco; gambling; military products/services. 5

6 Examples of eligible advisory projects Financial management improvement Marketing marketing studies, strategy, branding, etc. Implementation of information systems (ERP, CRM) Partner search (strategic, commercial) Feasibility studies Business planning Implementation of management systems Organization, operations Technical consultancy Energy efficiency and environmental management Other projects aimed at supporting the companies development, increasing competitiveness or facilitating access to finance 6

7 Advice Advice for Small for Small Businesses Businesses Romania Energy efficiency project Client: Meet processing company in Vaslui County Energy efficiency project, 2012 Energy audit conducted by a local consultant with the aim of identifying solutions to reduce energy costs Proposed measures to increase energy efficiency Financial analysis: estimation of investment value, calculation of IRR One year after the energy audit, the company invested 255,000 euro, recording savings of 774,2 MWh (approx. 100,000 euro) Energy cost reduction - 7 % Savings 98,000 euro / year Project net cost 8,160 euro SBS grant 6,120 euro 7

8 Advice Advice for Small for Small Businesses Businesses Romania Operations improvement project Client: Producer of roofing systems in Prahova County Operations improvement project, 2013 internal processes reorganization Analysis and restructuring of warehouses space Optimization of logistic flows Development of technical specifications for a new WMS With the support of efficient logistic processes, the company could focus on exports; in 2013 it was rewarded with the title of 2013 exporter in constructions Export increase + 165,000 euro Turnover increase + 11 % Project net cost 12,350 euro SBS grant 7,410 euro 8

9 Advice Advice for Small for Small Businesses Businesses Romania Human resources project Client: Distributor of money handling machines in Cluj County Human resources project, 2013 Implementation of performance management standard Investors in People Organization analysis and diagnosis Action plan for standard implementation Productivity increase + 10 % Profit increase + 400% Project net cost 7,200 euro One year after project completion the company received the Working with Investors in People Certification and registered an increase in productivity SBS Grant 3,600 euro 9

10 Other SBS projects Milk producer Sibiu, million euro turnover, 41 employees Project: Implementation of ISO project duration 3 months - project cost 5,500 euro SBS grant 3,000 euro Road transportation company Ploiesti, million euro turnover, 222 employees Project: Implementaion of a management information system - project duration 6 months - project cost 16,800 euro SBS grant 10,000 euro 10

11 Advice Consultanţă for Small pentru Businesses întreprinderile Romania mici Other SBS projects Eggs producer Rasnov, ,2 million euro turnover, 29 employees Project: Branding - project duration: 4 months - project cost 19,360 euro SBS grant: 10,000 euro 11

12 Advice Consultanţă for Small pentru Businesses întreprinderile Romania mici SBS results in Romania Over 550 assisted companies 63 projects in 2014 alone 7 mil. euro grant financing provided Energy/Resource Efficiency Engineering Solutions Environmental Management Information Communication Technology Marketing Operations Organisation Quality Management Reorganisation/Restructuring Strategy 0% 10% 20% 30% 40% Most beneficiary companies have less than 50 employees Only 15% of beneficiary companies are located in Bucharest The largest number of advisory projects are in marketing 12

13 Advice Consultanţă for Small pentru Businesses întreprinderile Romania mici SBS results in Romania (cont.) 72% of assisted enterprises increased their turnover with 26% on average 12% of assisted enterprises accessed external financing of 17,3 million euro in total 62% of assisted enterprises increased their productivity with 8% on average 61% of assisted enterprises increased the number of employees 13

14 Working with SBS If you are an entrepreneur or represent an SME, we will gladly assist you in finding the right business advice to develop your business! 3 reasons for working with us: 1. Flexible grants between 25% and 75% of the total net cost of the project 2. Fast, simple and transparent project evaluation, 3. SBS team s assistance through the whole process 14

15 Working with us If you are a local consultant, we invite you to joint our network of professionals (246 consultants today)! 3 reasons for working with us 1. We share the same objective: promoting professional advisory services 2. SBS can be a selling tool for you 3. You can have access to useful statistics ACR (Annual Consultant Review) 15

16 Annual Consultant Review 2014 Romania Number of survey respondents: 111 Company characteristics Average turnover: EUR 285,209 Average number of employees (average number of female employees): 10 (5) Percentage of consulting business that grew in 2013 compared to 2012: 55% Percentage of members of a consultant association: 32% Percentage of consultants with a website: 88% Average percentage of female ownership: 31% Percentage of women Director/CEO: 33% Percentage of companies with subsidized projects: 53% Average share of projects subsidized by governement or donors: 25% Client characteristics Average number of clients (% of new clients): 41 (3%) Percentage of consultants with projects abroad: 27% Percentage of consultants who perceive that competition has grown in their area over the past year: 51% Rural 3% City 45% Location Main city 52% Size segmentation of clients Medium 33% Micro 67% Advisory services offered More than half of the consultants responding to the ACR offer services in Strategy and Marketing. Few consultants offer environmental management, energy efficiency and engineering. More than half of the consultants are notspecialised in a specific industry, butnearly one third of the consultants who completed the survey operate in the manufacturing sector. Advisory services in the transportation sector remain limited. 16

17 Annual Consultant Review 2014 Romania Types of advisory services offered Advisory services by industry Environmental management Transportation Energy/ resource efficieny Engineering Quality management ICT Health and Services Technology, Media and Telecoms Education and Community Natural Resources and Energy Hotels, Restaurants and Recreation Operations Construction and Infrastructure Accounting and financial management Organisation Marketing Strategy Wholesale and Retail Trade Professional Services Food and Beverages Manufacturing No industry specialisation Professional development Percentage of consultants who took any professional development training in 2013 (organised by EBRD): 70% (12%) Percentage of companies who paid to attend the trainings: 82% EBRD benefits According to the results of the survey, over a third of the consultants have increased their skills or benefited business as a result of the program. However, only 17% report to have introduced new services. 75% of the consultants interviewed were satisfied or very satisfied with EBRD's advisory services projects. 40% EBRD benefits in 2014 Overall satisfaction Dissatisfied 2% 30% 20% 10% 0% Increased skills Benefited business More Sophisticated projects Increased projects New services Very satisfied 45% Neutral 23% Satisfied 30% 17

18 Working with SBS If you want to increase your know how and develop new collaborations, we invite you to attend our trainings, seminars and conferences! Training for owners of bed & breakfasts from Bucovina (November 2009) and Buzau (May 2010) Seminars and conferences to disseminate the benefits of energy efficiency measures: Cluj Napoca, Alba Iulia, Constanţa, Ploieşti, Bucureşti ( ) Training courses for consultants, organized together with AMCOR (Bucharest, September 2010) Seminar on the importance of business planning and marketing for entrepreneurs in Constanta (March 2012) Training for the energy efficiency consultants (Bucharest, December 2013, November 2014, April 2015) 18

19 And we offer integrated services To increase the impact of its small business advisory services, EBRD offers integrated support: Access to financing directly or indirectly through partner banks running dedicated SME credit lines; 10% of our SME clients have secured external funding Energy efficiency facilities RoSEFF (the EU EBRD Romania SME Sustainable Energy Finance Facility) offering financial and technical support for sustainable energy investments 19

20 Thanks to the generous support of the Austrian Ministry of Finance we made a difference to Romanian small businesses and we are committed to doing more!

21 Contact us! EBRD Small Business Support Tel

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