17th FAIR OF SMALL AND MEDIUM SIZED ENTERPRISES, BUSINESS SERVICES AND WOMEN S ENTREPRENEURSHIP OPENED

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1 EXPOBUDVA Offi cial Newsletter of the Adriatic Fair November No Budva, Trg Slobode 5 Tel: +382 (33) Fax: jadranskisajam@t-com.me i n f o 17th FAIR OF SMALL AND MEDIUM SIZED ENTERPRISES, BUSINESS SERVICES AND WOMEN S ENTREPRENEURSHIP OPENED Adriatic Fair in Budva has been identified for the 17 th time as the venue that provides tremendous opportunities and support to the establishment of international co-operation for small and medium-sized businesses in Montenegro. We are striving to provide a specific incentive to the affirmation of women s entrepreneurship, as one of the fundamental generators of the Montenegro economy. Consequently, this year s fair has been organised with sponsorship from the Ministry for Human and Minority Rights in co-operation with the Association of Women Entrepreneurs of Montenegro. This year s fair has primarily highlighted the importance, and provided support to women s entrepreneurship, as one of the areas aiming to achieve vigorous development. It is important to highlight the international importance of this event stated the Executive Director of Adriatic Fair, Dr. Bujković, PhD, during the opening ceremony. Micro companies, small and medium-sized enterprises account for 99% of all companies in the European Union. There are around 21 million SME s, employing around 33 million staff and they are therefore considered as a crucial source of entrepreneurial spirit and innovation, that are of

2 EXPOBUDVA i n f o November 2015 page 2 vital importance for corporate competitiveness throughout the EU. The specific objective of the EU policy in the area of SME s is to ensure that both policies and measures become focused on meeting the requirements of small businesses, and consequently to contribute to the enhancement of attractiveness of Europe in terms of the foundation of new businesses and their operation. Montenegro is increasingly focused on the strengthening of small and medium-sized enterprises. As a candidate for EU membership, Montenegro is preparing to participate in the EU single market through a focus on her capacities against the backdrop of the determinants of EU development by 2020, such as smart, sustainable and inclusive growth. In the case of small countries such as Montenegro, the determinants of smart and inclusive growth are of particular significance - in this context the activities that contribute to the activation of all human resources, irrespective of their gender, geographical distribution or age are considered fundamental. According to the data provided by Monstat for 2013, only 14.8% of those employed in Montenegro are involved in some form of entrepreneurship. Moreover, gender inequality is noticeable in the development of entrepreneurship. Significantly higher level of entrepreneurial activity has been seen among men, or, in other words, 19.2% of men own their own businesses, whereas only 9.3% women are involved in this type of employment. PROVIDE A FAVOURABLE BUSINESS ENVIRONMENT FOR WOMEN ENTREPRENEURS Pointing out the importance of such international fairs, Biljana Pejović, Head of the Department for Gender Equality of the Ministry for Human and Minority Rights, noted that the Fair was a highly significant venue both for women entrepreneurs and for everyone else, intended to show the potential of Montenegro and the directions in which women s entrepreneurship can be further developed. Montenegro has been increasingly recognising the role of women in society and has hence been primarily striving to strengthen the role of women through focusing on activities intended to assist women in Montenegro to gain in importance in public and political life, whilst simultaneously gaining in economic strength and being given protection from violence. It is important to highlight the fact that this is all due to the legislative and institutional mechanisms currently in place. Montenegro currently has effective legislation that regulates this area, the fundamental law Gender Equality Act, as well as other anti-discrimination laws and strategic documents, amongst which it is important to emphasise the recently adopted Women s Entrepreneurship Development Strategy, as well as Gender Equality Action Plan. Edita Dautović, President of Association of Women Entrepreneurs of Montenegro, reminds of the enthusiasm shown upon launching the initiative in co-operation with the Association of Business Women in Serbia, which was subsequently joined by the Directorate for Development of Small and Medium-Sized Enterprises, the Enterprise Europe Network in Montenegro, as well as other institutions, such as Association

3 EXPOBUDVA i n f o November 2015 page 3 Biljana Pejović Edita Dautović Aleksandar Pavićević Daliborka Pejović of Women Entrepreneurs of Montenegro, Union of Employers and the Chamber of Economy of Montenegro. Without their assistance, this Women s Entrepreneurship Fair would certainly not have been so successful. The government of Montenegro provides financial and non-financial assistance to the Fair, pointed out Aleksandar Pavićević, Director of the Directorate for Development of Small and Medium-Sized Enterprises at the government of Montenegro. The fact that the Fair has been held here for 17 consecutive years, shows excellent co-operation between the Directorate and Adriatic Fair, which is a fundamental prerequisite for business development in Montenegro, noted Pavićević. Moreover, he expressed his utmost satisfaction with the fact that primary attention has been focused on women s entrepreneurship, as the creation of Women s Entrepreneurship Development Strategy has certainly marked I would like to point out that substantial assistance, both financial and non-financial has been provided by the Investment and Development Fund and the Directorate for Development of Small and Medium-Sized Enterprises and would invite women entrepreneurs to further focus on programmes supported by the government of Montenegro, he emphasised. ENTREPRENEURSHIP NEEDS TO DEFINE POLITICS, NOT VICE VERSA This is the time in which Fair events have the potential to affirm entrepreneurship to the utmost, primarily for those citizens of Montenegro who normally do not have many opportunities for presentation at such important events, stressed Daliborka Pejović, State Secretary at the Ministry of Sustainable Development and Tourism. I would point out the importance of principles, and am thus emphasising the importance of such events, aiming to show the public in Montenegro that there is a different reality and a different life, beyond our conventional life and other obligations. Pejović reiterated that entrepreneurship needs to define politics, rather than vice versa. Pointing out the fact that entrepreneurship needs to define politics, rather than vice versa is imperative in Montenegro. I believe it will be a major breakthrough for society in Montenegro and a type of standard of civilization, concluded the State Secretary. THE INTERNET AND SOCIAL NETWORKS ENHANCING BUSINESS ACTIVITIES Amongst extremely interesting events, it is important to point out the lecture that was partially also a workshop, on the methods and opportunities to adapt websites to meet the requirements of visitors. Željko Popović, Head of Sales Department with the company "2Bi" emphasised the most common mistakes in website content, primarily since most websites point out the facts about companies, such as those regarding their foundation, the number of employees, what they are striving for and what their mission is, to name a few. In general, those are some of the issues that may be presented on the website, yet they can hardly be considered the principal motivation for someone to visit a specific website, according to Popović. People are normally aiming to meet their requirements and thus a website needs to be designed in order to arouse interest through the provision of valuable content that meets the requirements of its visitors, rather than merely providing information about us. The Internet is the best sales person one can employ in one s store and hence this issue needs to be approached with careful consideration.

4 EXPOBUDVA i n f o November 2015 page 4 THE POWER OF NETWORKING B2B MEETINGS OF ENTERPRISE EUROPE NETWORK EEN During the 17 th Fair of SME s, Business Services and Women s Entrepreneurship in Budva, held on 23 rd October 2015, the Enterprise Europe Network in Montenegro the Directorate for Development of Small and Medium-Sized Enterprises has successfully held B2B business meetings the Power of Networking. Business meetings were organised in co-operation with the Association of Women Entrepreneurs of Montenegro and the Adriatic Fair Budva, as well as with the partners from Enterprise Europe Network from the region. The specific objective of the organisation of B2B AdriaFair business meetings was networking and the establishment of business co-operation amongst companies from the countries throughout the region, the promotion of women s entrepreneurship, as well as the creation of opportunities for regional networking. Over 50 representatives of small and medium-sized enterprises, women entrepreneurs, associations and institutions participated at the meetings and over 80 business meetings were held. Participants at B2B business meetings were given the opportunity to present their products and services, participate at the conference, as well as in a large number of workshops and roundtable discussions organised within the 17 th Fair of SME s, Business Services and Women s Entrepreneurship. Ljljana Belada from the Directorate for Development of Small and Medium-Sized Enterprises believes that, through the organisation and accompanying activities, Adriatic Fair has yet again proved to be an appropriate venue for business meetings. The Directorate for Development of Small and Medium-Sized Enterprises comprises of the largest entrepreneurship network at a global level. One of the fundamental tasks of this network is the organisation of similar business meetings that are normally organised during Fairs or other events. For the second consecutive year, Adriatic Fair have organised business meetings for small and medium-sized enterprises, whereas this year the main focus was on women s entrepreneurship. The meetings were intended as an exchange of contact information and experiences, as well as business co-operation and in that they were highly successful, noted Belada. CERTIFICATES OF APPRECIATION AWARDED TO PARTICIPANTS AT THE 17TH FAIR OF SMALL AND MEDIUM SIZED ENTERPRISES, BUSINESS SERVICES AND WOMEN S ENTREPRENEURSHIP During the 17th Fair of Small and Medium- Sized Enterprises, Business Services and Women s Entrepreneurship, the Association of Women Entrepreneurs of Montenegro presented Certificates of Appreciation for participation at this international event. The President of the Association, Edita Dautović, presented the Certificates to both exhibitors and visitors.

5 EXPOBUDVA i n f o November 2015 page 5 PANEL DISCUSSION: INSTITUTIONS ENCOURAGING THE DEVELOPMENT OF WOMEN S ENTREPRENEURSHIP IN MONENEGRO AND THROUGHOUT THE REGION An extremely interesting discussion on those institutions encouraging the development of entrepreneurship was held on the second day of the Fair. According to research conducted in 2012, there were around 9,000 women entrepreneurs in Montenegro, of whom 4,000 employed other staff. Women entrepreneurs accounted for 31% in the total number of entrepreneurs and their percentage stood at around 25% of the total number of employers. The highest level of entrepreneurs, around 60%, were registered as owners of businesses. During 2008 to 2012, the number of women entrepreneurs in Montenegro dropped by 19%, the number of male entrepreneurs decreased by 16%, whilst the European Union saw a 2% increase in the number of women entrepreneurs and the number of male entrepreneurs was 1% up, according to the Women s Entrepreneurship Development Strategy in Montenegro Ljiljana Filipović, Vice-President of the Chamber of Economy of Montenegro, stressed the importance of the existence of the Committee on Women s Entrepreneurship comprising of successful women entrepreneurs and institutional representatives. We have been working on several specific projects focused on women s entrepreneurship. One is entitled Help desk concerning financial assistance. Under the same project, legal assistance entitled Adria teen, as well as the project Erasmus for young entrepreneurs who have the opportunity to acquire relevant skills abroad, aiming to further develop their businesses, or perhaps local entrepreneurs who are willing to hire foreign young entrepreneurs with whom they are willing to co-operate and hence internationalise their business. Boris Marđonović, Executive Director of the Montenegro Chamber of Skilled Crafts and Entrepreneurship, reminded that the Association of Women Entrepreneurs of Montenegro was formed in 2009, bringing together owners of small and medium-sized artisan businesses, who are simultaneously producers and providers of products and services, as well as decisionmakers, which certainly proves their special qualities and skills. The specific objective of the Chamber is to provide an incentive to the formation of professional associations that will proceed to operate independently. I would like to express my deepest respect and admiration for all women entrepreneurs, since they need to substantially expand their comfort zones compared with men, stated Marđonović. Speaking on behalf of the Union of Employers of Montenegro, Zvezdana Oluić, PR and Marketing Manager for the Union, pointed out the fact that women s economic power is vital for a smart economy. She reminded that in 2002 the Committee on Women s Entrepreneurship was founded, whilst in 2009 it decided to institutionalise itself through the foundation of the Association of Women Entrepreneurs of Montenegro. It is providing support, and will continue to do so in the future, since an Association of this type, due to its membership structure, clearly shows that women entrepreneurs are responsible, accurate and committed, emphasised Oluić. Mira Trebješanin, Head of the Division for the Management of Financial Placements at the Investment and Development Fund of Montenegro, spoke about affordable credit lines for women entrepreneurs. The Investment and Development Fund of Montenegro currently provides two credit lines: one of 10,000 and one from 10,000 to 200,000. These are intended for women entrepreneurs and result from market research and aiming to meet market requirements. The interest rates are extremely favourable, starting 2.5%. It is important to point out that interest rates for the northern region, as well as the Nikšić, Cetinje and Ulcinj region are further reduced by 0.5% and the credit lines are hugely popular, noted Trebješanin.

6 EXPOBUDVA i n f o November 2015 page 6 PANEL DISCUSSION: ENCOURAGING WOMEN S ENTREPRENEURSHIP IN MONTENEGRO AND THROUGHOUT THE REGION, BOTH AT NATIONAL AND LOCAL LEVEL Women have the highest percentage of ownership of business ownership in the following municipalities: Kolašin (22.2%), Plužine (17.2%), Mojkovac (14.3%) and Danilovgrad (13%), whilst their ownership level is the lowest in Rožaje (5.45%), Ulcinj (5.7%), Cetinje (6.6%), Bijelo Polje (8%), Herceg Novi (8.3%), Nikšić and Bar (9%). The municipality of Podgorica saw only 10.5% of active businesses owned by women, whilst in the municipality of Šavnik, all businesses are owned by men, as stated in the Strategy. Biljana Pejović, Head of the Department for Gender Equality at the Ministry for Human and Minority Rights of Montenegro, drew attention to the fact that The government of Montenegro has recently adopted the guidelines for enhanced development or the creation of a more propitious environment, for fostering women s entrepreneurship in Montenegro. It is a document that provides specific recommendations and guidelines for the improvement of economic conditions and the greater involvement of women, primarily in entrepreneurship. Montenegro cannot show positive ranking results regionally, or in Europe, concerning the share of women entrepreneurs. In Bulgaria, the level of women entrepreneurs stands at around 37%, emphasised Pejović. Leven Bus, Vice-Mayor of the municipality of Prizren stated that the reason for his coming to the Fair was primarily the continuation of co-operation with Montenegro with which there are good relations. I am convinced this type of co-operation, both at municipal and state level, is imperative. Our co-operation with Montenegro has been successful thus far, and I believe we will continue strengthening our relations in the future, as well, noted Bus. Amela Klender, consultant for economic matters in the municipality of Rožaje, believes that there is a vast array of positive effects to the participation of municipalities at the Fair. Since local government has been reformed and restructured, we have created a local Business centre and have also provided subsidies for entrepreneurs. My presentation is primarily focused on the motivation of women, and encouraging them to believe in their business, which is extremely difficult. A large number of women are involved in entrepreneurship, although in shadow economy, and they require motivation to legalise their businesses and achieve success and advancement through compliance with the laws. Women are traditionally considered as mainly being mothers, wives, sisters, rather than entrepreneurs. Nevertheless, according to our experiences, women entrepreneurs show high levels of responsibility, determination, diligence and objectivity. According to data available to our Agency, the overall structure of businesses in the Bosnian Serb Republic (where there are over 38,000 businesses), small and mediumsized businesses account for 99.87%, of which 30% are owned by women, which is on a par with the level within the EU, where gender equality rights are certainly substantially higher compared with us. Furthermore, around 40% of those employed in our companies are women, noted Marinko Đukić, Director of the Republic Agency for Development of Small and Medium-Sized Enterprises from Banja Luka. Start-ups are gaining increasing importance in the region, in the EU and globally. Saša Jovanović, with the Business Start-up Centre is convinced that support provided to small and medium-sized businesses during the initial phase, as well as to already existing businesses, is fundamental for the development of entrepreneurship. The support provided includes the creation of business plans, assistance via mentoring, consultancy, consulting services, microcredit lines extended at extremely favourable interest rates, with a repayment period of up to 4 years with a 6 months grace period. Similarly, we provide business skill training programmes covering diverse topics: the creation of business plans, finances for beginners, legislation and sales skills enhancement programme, to name a few, he pointed out.

7 EXPOBUDVA i n f o November 2015 page 7 PANEL DISCUSSION: CHALLENGES AND OPPORTUNITIES FOR WOMEN S ENTREPRENEURSHIP DEVELOPMENT IN MONTENEGRO AND THE REGION Montenegro is not unique in facing problems concerning women s entrepreneurship, as a large number of other countries are currently facing similar problems. Since the European Union is primarily focused on enhancement of women s entrepreneurship, even candidate countries need to move towards the achievement of this objective. Hence, in Bulgaria 38% of businesses are owned by women, in Germany 31%, in Hungary 30%, in France 28%, whereas in Italy the figure is 24%. Of all businesses owned by women, only one woman in Montenegro owns a large business. Sanja Popović Pantić, President of the Association of Business Women of Serbia, pointed out that there are some topics and issues faced by all women entrepreneurs in the region, such as access to financing and initial capital. I have currently presented the European Bank for Reconstruction and Development programme that has recently launched a special affordable credit line intended exclusively for women entrepreneurs. It was formally introduced in Serbia, Bosnia and Herzegovina, and Kosovo on 8 th October 2015, and currently also in Montenegro. These credit lines do not require any collateral, which is normally the first and largest obstacle for women entrepreneurs when applying for a bank loan, since most women do not own property or assets, and so this problem has been effectively addressed. It is not a credit line provided by the state, it is a credit line provided by a European bank. According to Edita Dautović, President of the Association of Women Entrepreneurs of Montenegro, Every woman needs to start her own business, as in this way she will have the opportunity to manage her own work and her time. She can provide her own concept and method of work, decide on the quantity of work she will perform, as well as working hours, as opposed to women employed in government institutions. She primarily highlighted the importance of networking, and B2B meetings will be organised during the Fair, providing an opportunity for women entrepreneurs to connect at a regional level. TO THE FAIR WITH SUCCESS No. 107 Our company is large and has a wide portfolio of products. What should be our guiding principles on the selection of products that we intend to exhibit (and the messages we aim to convey)? We assume that a company of your size would have formulated a positioning strategy. Thus, if in your clients minds you are remembered primarily as a company providing top quality products, intended for up-market clients, then you should mainly highlight that specific aspect of your product range. It has to said that the design of your exhibition stand needs to follow the same direction. Co-operation with the marketing department is imperative, irrespective of the fact that you may have allocated this task to an outsourced agency. Our company does not currently have a defined positioning strategy. How do we make a selection in these circumstances? You need to ask yourselves, and primarily your customers and clients, as to the way they see and recognise you. Subsequently, you need to adopt this type of approach permanently. In case your product is an inevitable aspect of some specific situations, you need to provide a scenic solution. It has to be emphasised again that positioning implies the place your products occupy in your clients minds and that they are normally recognisable primarily due to their predominant features, rather than all their features.

8 EXPOBUDVA i n f o November 2015 page 8 Calendar of events for th Furniture Fair-Home, Office & Interior Decoration Equipment April 10 th ART EXPO April 42 nd Food Fair April 25 th International Tourism Exchange and Tourism Fair, Equipment for Hotels and Catering - METUBES April 34 th NAUTIC SHOW - Sport, Camping & Recreation Equipment Fair May 35 th Security, Protection and Rescue Fair May 22 nd Ecology Fair May 42 nd Bazaar of Consumables 15 May September 42 nd Summer Fair 15 June September 38 th Civil Engineering Fair September 11 st Water-Water Supply Systems-Sanitary Technologies September 4 th Energy Fair September 19 th Automobile Show October 35 th Small and Medium Enterprises Fair, Business Services and Women Entrepreneurship October EXPOBUDVA Budva, Trg Slobode 5 Tel: +382 (33) Fax: jadranskisajam@t-com.me i n f o E DITOR doc. Dr. Rajko Bujković ISSN number Monthly