Southeast Europe Enterprise Development

Southeast Europe Enterprise Development

ENTREPRENEURSHIP AND SME DEVELOPMENT STRATEGY IN PRIJEDOR MUNICIPALITY 2003-2008

C O N T E N T - Introduction 4 - Acknowledgements 5 - Vision 6 - Economic Situation of the Prijedor Municipality 6 - SWOT Analysis of the Prijedor Municipality 8 - Entrepreneurship Development Strategy in the Municipality of Prijedor 9 - Strategic Goal no. 1 12 - Strategic Goal no. 2 13 - Strategic Goal no. 3 14 - Strategic Goal no. 4 15 - Strategic Goal no. 5 16 - Matrix of Development Goals, Programs and Projects in the Prijedor Municipality 17 - Projects Matrix 20 - Proposals for Initial Projects 22 - Prijedor Local Economic Development Agency 22 - Entrepreneurship Incubator 23 - Agricultural Cluster 24 3

F O R E W A R D The Municipality Prijedor is the second largest Municipality in Republic of Srpska, both population as well as the territory size vise. The Municipality is placed in the Northwest part of Bosnia and Herzegovina in the valley of the Sana river and surrounded by the mountains Kozara and Grmec. The Municipality has relatively well developed infrastructure and represents an urban environment with all preconditions for comfortable living and work of its population. The earlier concept of development of Prijedor economy was based on development of capacities of the basic industry. Bearers of Prijedor economy were big systems of iron, cellulose and paper production that served as raw material base for development of processing capacities for final products in other parts of former Yugoslavia. In the period of transition from state to market economy such economic structure in the Prijedor Municipality has become an obstacle to development of both the economy as well as development of the society itself. The exiting economy structure in not only incapable of creating new job opportunities, but it generates additional unemployment. In order to change these negative trends in the economy, the Municipality of Prijedor has adopted a new Strategy with the main goal to develop a diversified economy supported by advanced service industry sector and strong focus on development of agriculture production. The new Strategy is focused on entrepreneurship and SME development, which are expected to become the main element of economic development of Prijedor Municipality in future. The Strategy for entrepreneurship and SMEs development is based and developed on the concept and methodology of local economic development. This concept is creating conditions for improvement of business environment, creation of new enterprises, development and growth of existing enterprises and attraction of domestic and foreign investors. Implementation of this concept requires that Municipal authorities take different and new role in the economic development through creation of partnership relationship between local authorities and private sector in order to jointly define development goals and implement economic development projects. Through the establishment of Info Center, One-Stop-Shop for business entities, creation of fund and credit line for fruit producers and support to establishment of Development Agency, Prijedor Municipality has made initial steps in its attempt to assist and support entrepreneurs. The Strategy was developed in cooperation between the Municipality and Southeast Europe Enterprise Development (SEED). The final goal we want to achieve through implementation of this Strategy is creation of conditions for economic prosperity of Prijedor Municipality and, through that, creation of better living conditions for all citizens of this community. In order to achieve the defined goals, Prijedor Municipality, with its modest resources, additionally burdened with social and other problems, will need support and assistance from all levels of BiH government as well as technical assistance, expertise and financial resources from international organizations. Mayor of Prijedor Municipality Prof. Nada Ševo Prijedor 25. 08. 2003. 4

ACKNOWLEDGEMENTS From the very beginning of the project, the Mayor and her team have been showing great understanding, proactiveness and recognized the need to take a lead role in their community in the matters related to economic development. Throughout this project, with strong support from Mayor and her staff, we have been initiating dialogue between the Municipality, entrepreneurs and other stakeholders about issues related to business environment, non-financial and financial support to private sector, human resources development, etc. Without active involvement of all this professionals and their willingness to contribute towards the improvement of economic situation in their community, it would be almost impossible to implement this project and to bring it to the very successful end. Beside the above mentioned participants in the project, I wish to address special gratitude to the members of the SEED consulting team, Ms. Gwen Swinburn, the World Bank Senior Urban Specialist, Prof. Dr. Miroslav Glas, Mr. Bogo Filipic, MSc and Prof. Dr. Darko Tipuric, who have invested a lot of efforts, time and energy into the activities and contributed a lot to the quality of the project itself. This project sets a good foundation and designs a platform which can serve to all those who have possibility to help the Municipality and private sector in Prijedor in creation of the better business environment, establishment and initiation of the efficient organization and institutions for provision of different kinds of support to private sector as well as to enhance and develop human resources in accordance to the new needs arising from the economy of today. Work of local organizations and institutions, resources and efforts they invested so far as well as their commitment to this project, represent a guarantee to all domestic and international organizations and institutions that they would be serious and sincere partners, ready for cooperation with all the parties interested in changing currently unfavorable economic situation in Prijedor and improvement of the quality of life and standard of Prijedor citizens. Davorin Pavelic Business Development Analyst Southeast Europe Enterprise Development - SEED 5

ECONOMIC SITUATION OF THE PRIJEDOR MUNICIPALITY The development document Entrepreneurship and small and medium-sized enterprise development strategy for the Municipality of Prijedor, 2003-2008 positions the Municipality as an active center of entrepreneurial activities after almost ten years of economic stagnation, caused by war devastation and economic transition. The Municipality of Prijedor is the second largest municipality, both by the area it occupies, and by the population (after Banja Luka), in the Republic of Srpska. It comprises 24 local communities, three of which are part of the city itself. Just as the majority of other cities in B&H, Prijedor has significantly changed its own demographic picture through, and since the B&H war. According to the 1991 census, 110,130 population resided in this area, and the number of population in Prijedor in 2000 was 95,502. According to some estimation, today some 37,000 refugees also reside in the Prijedor Municipality, who are both a social and economic challenge for the Municipality. Thus, in 2001, the workforce population was 17,829 persons, of which there were 7,608 employed (in 1988, there had been 21,555 employed) and 10,221 unemployed (even 7443 in 1996), so the unemployment rate that year was 57.33 % with an increasing trend. At the same time the unemployed workforce is also a generator of the gray economy at the large scale and it will be reduced only by job creation in large, medium and small enterprises. In 2001, 1.653 entrepreneurs worked in the economy, and in addition to this, 359 more entities were registered in 39 different areas of the economy, of which 55 (15.3) pertained to state-owned enterprises, and 304 (84.7%) pertained to private enterprises. The current state-owned enterprise privatization process changes both organizational forms of the majority of enterprises into shareholding companies, and the ownership relations (equity structure). 6

The majority of the enterprises has been registered in trade (47%), business activities (6.10%), construction (6.10%) and wood processing (4.5%). The Prijedor Municipality did not base its development on the tradition of the SME development. Its mono-production orientation with a few large state owned enterprises was appropriate in the centralized economy regime characterizing the period until the most recent war. Because the former characteristics of the economy in the Municipality, which had a function of creating a base for raw materials for the industries outside the Prijedor area, there is a significant need for transition of the economy to enable Prijedor to become a center for SMEs and entrepreneurship activities in different industries. The Prijedor Municipality has made decision to prepare the SME Development Strategy because of the need for major structural changes. The preparation of this strategy began with creation of an organizational structure and at a LED strategy workshop in March 2002. Today the organizational structure involves the municipal authorities, local partners and foreign consultants, and therefore consists of the following: o o o o Forum of influential interested entities (stakeholders), headed by the Mayor; Project Board at the municipal level, led by the Mayor; Local Economic Development Team (LED Team) Four working groups: for business development; for infrastructure and environmental protection; for human resources development; and for agricultural and rural development. The joint work of this structure is reflected in the Entrepreneurship, Small and Medium-Sized Enterprise Development Strategy for the Prijedor Municipality, 2003-2008 which is presented here in the text below in its summarized version. The summarized version was prepared as an INVITATION TO DONORS AND PARTNERS to join in implementation of this strategy and to assist in improvement of the economic situation within the Municipality. This initiative was funded by the Municipality itself and SEED. The SEED experts, the World Bank Local Economic Development expert and international consultants from Slovenia were engaged for the preparation of this strategy. 7

SWOT ANALYSIS OF THE PRIJEDOR MUNICIPALITY Simultaneously with collecting statistical data on the economic situation, a survey was conducted among entrepreneurs in Prijedor and interviews were held with the representatives of all the economic development support organizations. The SWOT analysis of the Municipality Prijedor shows the picture of the economic situation from the aspect of entrepreneurship development. POSITIVE FACTORS S Strengths O Opportunities Ø Honest and diligent people, willing to make Ø Strengthening of the coalition between private and public sectors NEGATIVE FACTORS W - Weaknesses T Threats Ø Resistance to change Ø Ø Ø Ø Ø Ø Ø Ø Ø Ø Ø Few SMEs Lack of entrepreneurship tradition, Lack of integration in the structures of private and public sectors Poor organization of entrepreneurship support, Lack of infrastructure entities (agencies, zones, incubators, clusters, etc.) Lack of entrepreneurial skills Underdeveloped banking sector in Prijedor Lack of foreign investment; Lack of qualitative information base Obsolete technologies, Farms of small size 8

Step 1. Organization of Activities Step 2. Municipality competitiveness assessment & SWOT analysis Step 3. Creating development strategy: vision, goals, projects Step 4. Strategy implementation Step 5. Strategy implementation analysis & supplemental measures 9

The Prijedor Municipality Vision acknowledges all the advantages and development opportunities, and it means a description of economic future that all entities are interested in and that all the entities creating this future agree with: entrepreneurs, municipal administration, people from education, health system, and other services, residents of Prijedor and the whole municipality. The vision provides a clear direction as to the way further, meaning, the Prijedor development vision anticipates that the Prijedor Municipality will never again as before rely on the iron mine, and due to technological obsoleteness it can not expect much from revitalization of the former major enterprises. Therefore it will rely on the SMEs for its development, changing the economic structure into an interwoven network of micro-, small and medium-sized enterprises. 10

BASIS FOR DEVELOPMENT VISION OF PRIJEDOR AS CENTER FOR DEVELOPMENT ACTIVITIES IN NORTHWEST BOSNIA In five years, Prijedor Municipality will be a source of economic development and a strong entrepreneurship center with a network of small and medium-sized - enterprises and a dynamic and versatile economy. Entrepreneurship and SME development strategy STRATEGIC GOALS STRATEGIC GOAL 1 STRATEGIC GOAL 2 Creation of enabling business environment Creation of physical and development infrastructure STRATEGIC GOAL 3 Strengthening the SME sector and their capacities STRATEGIC GOAL 4 Production job creation while retaining versatility STRATEGIC GOAL 5 Human resource development for economic growth and restructuring 11

STRATEGIC GOAL NO. 1 Creating enabling business environment Create business environment that will encourage the establishment of commercial and industrial businesses that will be of benefit to the community, promote stabile and diversified economy that is, at the same time, env ironmentally sound. Objective 1 Increasing the entrepreneurs' satisfaction level with the performance of the Municipality Objective 2 Active work of the Stakeholder Forum (development coalitions) Objective 3 Establishment of public -private sectors partnership 12

STRATEGIC GOAL NO. 2 Creation of physical (hard) and business (soft) infrastructure for SME development SMEs may be well developed in the environment offering them better conditions for growth, meaning, offering them the infrastructure, assisting in creation of new enterprises, and subsequently with growth and increase in volume of production of products or services. On the other hand, a developed business infrastructure increases favorableness of the environment and motivates both SMEs and new investors to come and creation new jobs. Objective 1 Objective 2 Development of necessary physical infrastructure Creation of the business infrastructure for SME development Physical infrastructure is a support instrument assisting new companies from the start to meet the spatial requirements for work and begin to operate and create new jobs as soon as possible. For the existing SMEs, this infrastructure allows expansion and growth (in terms of space too) and new job creation. Under the right conditions, this infrastructure allows for concentration of expertise and development of innovative enterprises. The business infrastructure consists of institutions and enterprises that may service development coalitions at the local level, that may represent the local environment with external, national or foreign partners, and that may provide high-quality services for the local partners, foreign partners, donors, investors and SMEs on development projects. 1. Program for development of support institutions and mechanisms 2. Program for infrastructure development 1. Establishment of the Prijedor Development Agency 2. Foundation of the SME Development Financial Fund (micro-credit, guarantees, subsidies) 3. Foundation of a One Stop Shop 4. Creation of Entrepreneurship Incubators 5. Creation of the Business Zone with improved utilities and infrastructure 6. Creation of the Development Center for Rural Areas 13

STRATEGIC GOAL NO. 3 Strengthening the small and medium-sized enterprise (SME) sector The number of SMEs in Prijedor is below the standards of the developed countries, and what is particularly lagging behind is the dynamics of creation of new enterprises, introducing new products, services and technologies. Quicker development requires improvement of the existing companies to invest into growth and development of support instruments to create new enterprises and thus effecting a change in the structure of industries. Objective 1 Objective 2 Objective 3 Increase in number of small and medium-sized enterprises Encouragement to growth of dynamical small and mediumsized enterprises Opening SMEs towards broader markets of B&H and the neighboring countries Structural changes and larger business dynamics are accomplished by increase in SME number, reduction of gray economy and quicker job creation in SMEs. This increases employment and share of these enterprises in it, and due to the high unemployment rate in the Prijedor Municipality this is a significant objective. New and existing SMEs need various support instruments in order to be able to develop quicker, to invest and create new jobs. Supporting growth means leading a dynamical policy of support through development and implementation of various support instruments that can be used in SME growth. Opening SMEs towards outer markets requires the SMEs to learn, to cooperate, to introduce standards and new methods of work, to introduce new technologies, to network, to use new IT and new distribution channels; therefore the implementation of this goal is crucial for survival of SMEs. 1. Program of support for new entrepreneurs 2. Program of support for growing enterprises 3. Program of including gray economy into the legal economy 1. Simplification of registration procedures for new companies 2. Introduction of voucher and other support schemes for dynamical SMEs (consulting, preparation of business plans for banks, consulting for internationalization of business) 3. Project of support for quality development and introduction of ISO and CE standards in SMEs 4. Projects to group enterprises into networks and clusters 5. Organization of a number of meetings with SMEs from neighboring countries 6. Support to internationalization (organizational and financial) of SMEs to participate in fairs, exhibitions and conferences 14

STRATEGIC GOAL NO. 4 Creation of productive jobs with variety of activities Encouragement to job creation for various target groups and in varying industries provides a longterm solution to many issues related to employment for»difficult to employ«persons or to employment in industries where there is normally a lack of skilled workers. Through programs focused on removal of these obstacles, we can achieve job creation appropriated for the needs of the economy. Objective 1 Objective 2 Objective 3 Increase of job creation in SMEs Increase of shares of new industries in BDP Increase of actual wages and salaries By encouraging training and retraining of the unemployed, we open the opportunity for both new and existing SMEs to find the workforce skilled appropriately for their production programs. As the SME sector in Prijedor is still largely underdeveloped, there is also an underdeveloped supply of services and products needed by the local and broader markets. Encouragement for employment in underdeveloped industries improves supply on the market and changes the situation in the economy. The low personal standard depends on wages and salaries. Through training and professional development, and further through selfemployment, conditions are built allowing higher and additional wages and salaries in urban and rural areas as well. 1. Program of active employment policy 2. Program of entrepreneurship initiatives for women 3. Program of rural entrepreneurship 4. Program of youth entrepreneurship 1. Analysis of human resources and needs of SMEs, and larger enterprises, by numbers and types of skilled workforce 2. Analysis of the existing training and education programs 3. Development of new training programs and change/adjustment of the existing ones to the SME needs 4. Development of financial action plan subsidies for new job creation 5. Entrepreneurship training for youth 6. Support to employment of young graduates 7. Support to development of supplementary rural activities 8. Support to association and entrepreneurship initiative for women 9. Support to employment of disabled persons and persons with limited working ability 15

STRATEGIC GOAL NO. 5 Human resource development for economic growth and restructure Human resources allow for transformation of expertise and skills into products and services sellable on the market. Due to the war, failed enterprises, difficult economic situation, technological obsoleteness, isolation and brain drain it is necessity today to have additional education and training of entrepreneurs, entrepreneur candidates, workers, the unemployed, students and other population and it is a precondition for quicker development of SMEs and Prijedor as a whole. Objective 1 Objective 2 Objective 3 Education system for entrepreneurs Education system for workers in SMEs Education system for other population groups The time of quick changes in all areas of work requires business people to permanently learn and study, so they can promptly respond to changes in the business environment and in the municipality of their residence. In addition to this, the business world is becoming increasingly global, requiring broader and completely new expertise. Competitiveness of work depends on technology and worker skills. Use of IT technologies in all industries requires people to attain new skills and expertise, as well as a different approach in work and organizational sense. Education of workers is becoming a precondition for encouragement of competitiveness. SME development also depends on how we motivate pupils, students, the unemployed, and others, to become involved in various education programs thus raising levels of their expertise and possibilities to accomplish their entrepreneurial ideas or to be employed by SMEs where such knowledge is needed. 1.Training (educational) program for competitiveness 1. Development of special education programs for entrepreneurs and workers from various sectors 2. Development of comprehensive education programs for starter entrepreneurs and for students 3. Development of public vocational training programs for adults 16

MATRIX OF DEVELOPMENT GOALS, PROGRAMS AND PROJECTS IN THE PRIJEDOR MUNICIPALITY Vision Strategic goals Operational Objectives Programs Projects Prijedor will become a center of development activities in the Northwest part of BiH. It will encourage, create and concentrate business initiatives in the form of a network of small and medium enterprises, directed towards broader regional markets. The development - oriented climate in the area will ensure diversity in production structure, quick accepting of new skills and quick implementation of good business ideas. The economic motto will be openness and removal of all barriers, followed by better quality of living of all people and maintenance of historical and cultural values. Proactive approach will give Prijedor advantage over neighboring areas and encourage excellence, flexible business infrastructure as a source of future economic development and general welfare of the Prijedor people G1: Creation of enabling business environment Objective 1 : Increasing entrepreneurs' satisfaction level with the Municipality performance Objective 2: Active work of the Stakeholder Forum (development coalition) Objective 3: Establishment of public-private sectors partnership 1. Program to create development coalitions 2. Program of non-financial forms of support to SME development 3. Program to promote entrepreneurship 4.Program to improve local business environment 1.Establish Stakeholder Forum and other development coalitions 2.Develop a joint overall Prijedor Municipality Development Strategy 3.Staff training in Municipality and institutions for support to SMEs for better performance and barrier removal 4.Establish One Stop Shop in the Municipality 5.Establish municipal non-financial forms of support to entrepreneurship development 6.Promote entrepreneurship and opportunities it offers 7.Promote entrepreneurship success and successful entrepreneurs 8.Promote joint projects and cooperation 9.Co-finance promotion materials, business meetings and business networking 17

Vision Prijedor will become a center of development activities in the Northwest part of BiH. It will encourage, create and concentrate business initiatives in the form of a network of small and medium enterprises, directed towards broader regional markets. The development - oriented climate in the area will ensure diversity in production structure, quick accepting of new skills and quick implementation of good business ideas. The economic motto will be openness and removal of all barriers, followed by better quality of living of all people and maintenance of historical and cultural values. Proactive approach will give Prijedor advantage over neighboring areas and encourage excellence, flexible business infrastructure as a source of future economic development and general welfare of the Prijedor people Strategic goals Operational Objectives Programs Projects G2: Creation of physical and business infrastructure for SME develo - pment Objective 1: Development of the necessary physical infrastructure Objective 2: Create business infrastructure for SME development 1. Program to develop support institutions and mechanisms 1. Establish Prijedor Development Agency 2. Establish Financial Fund (micro-credit schemes, guarantee schemes, subsidies) 3. Establish One Stop Shop everything at one place 4. Establish Entrepreneurship incubator 5. Establish Business Zones with arranged utilities 6. Establish Rural Area Development Center G 3: Strengthening of SME sector Objective 1: Create the most important institutions of physical infrastructure Objective 2: Create business infrastructure for SME development 1. Program to support new entrepreneurs 2. Program to support growing enterprises 3. Program to integrate gray economy into legal economy 1.Simplify registration procedures for new companies 2. Introduce voucher and other schemes of support to dynamical SMEs (consulting, preparation of business plans for banks, consulting for internationalization of business) 3.Projects supporting quality development and introduction of ISO and CE standards in SMEs 4.Projects to group enterprises into networks and clusters 5.Organize a number of meetings with SMEs from neighboring countries 6.Support internationalization (organizational and financial) of SMEs for participation in fairs, expositions and conferences 18

Vision Prijedor will become a center of development activities in the Northwest part of BiH. It will encourage, create and concentrate business initiatives in the form of a network of small and medium enterprises, directed towards broader regional markets. The development - oriented climate in the area will ensure diversity in production structure, quick accepting of new skills and quick implementation of good business ideas. The economic motto will be openness and removal of all barriers, followed by better quality of living of all people and maintenance of historical and cultural values. Proactive approach will give Prijedor advantage over neighboring areas and encourage excellence, flexible business infrastructure as a source of future economic development and general welfare of the Prijedor people Strategic goals Operational Objectives Programs Projects G 4. Productive job creation with industry diversification Objective 1 : Increase employment in SMEs Objective 2: Increase share of new industries in GDP Objective 3: Increase in actual salaries 1. Program of active employment policy 2.Program of entrepreneurial initiatives for women 3.Program of rural entrepreneurship 4.Program of youth entrepreneurship 1. Analysis of human resources and needs of SMEs and major enterprises, by numbers and types of skilled workforce 2. Analysis of existing education and training programs 3. Develop new training programs and change/adjust to existing SME needs 4. Develop Financial Scheme subsidies for new job creation 5. Entrepreneurship training for youth 6. Support employment of young graduates 7. Support development of supplementary industries in rural areas 8. Support networking and entrepreneurship initiatives for women 9. Support employment of disabled persons and people with limited working ability G 5:Human Resource Developments for economic growth and restructuring Objective 1: Entrepreneur education system Objective 2: Education for SME workers Objective 3: System for education of other population 1. Education Program for competitiveness 1. Develop special education programs for entrepreneurs and workers from various sectors 2. Develop general education program for start-up entrepreneurs and students 3. Develop vocational training programs for adults 19

PROJECT LIST 1.Foundation of the Stakeholder Forums and other development coalitions 2.Completion of the Joint Comprehensive Development Strategy for the Prijedor Municipality 3.Staff training in the Municipality and institutions encouraging SME development for improved performance and removal of obstacles Partnership Infrastru cture GOALS VALUE SOURCES OF FUNDING in % SME Strengthen ing Job Creation HRD in EURO Donors State Municipality SME IMPLEME NTER X x 4.000 100 Municipality X x x x 50.000 80 20 Agency X X x 10.000 50 50 Municipality 4.Foundation of One Stop Shop in t he Municipality X X 6.000 50 50 Municipality 5.Creation of municipal non -financial forms of support to March 10, continuo X X X x 200.000 100 Municipality entrepreneurship development 2003 us 6.Promotion of entrepr eneurship and opportunities October Continuo X X X 30.000 40 40 20 Agency offered by entrepreneurship 2003 us 7.Promotion of entrepreneurship and successful October Continuo X X X 30.000 40 20 40 Agency entrepreneurs 2003 us February Continuo 8.Promotion of joint p rojects and cooperation X X X 10.000 50 20 30 A 2004 us 9.Co-financing of promotion materials, business X X 40.000 50 50 Chamber July 2003 Continuo gatherings and business networking us February Continuo 10. Foundation of the Prijedor Development Agency X X X X X 250.000 60 20 20 Municipality 2004 us 11. Foundation of the SME Development Financial Fund November April X X X X 300.000 70 30 Agency (micro-credit, guarantees, subventions) 2003 2004 12. Foundation of the One St op Shop everything October July X X X 30.000 50 30 20 Agency available at a single place 2003 2005 December October 13. Creation of Entrepreneurship Incubators X X X X X 220.000 50 30 20 Agency 2003 2004 14. Creation of the Business Zone with imp roved utilities October October X X X X 100.000 50 30 20 Agency and infrastructure 2003 2005 December Continuo 16. Creation of Rural Area Development Center X X X X X 200.000 70 20 10 Agency 2003 us 17. Simplification of registration procedures for ne w October Continuo X X X 10.000 100 Municipality companies 2003 us February Continuo 18.Consulting services for internationalization of business X X 50.000 60 20 20 Agency 2004 us 19.Introduction of vouchers and other tools for support for February Continuo X X X 150.000 50 30 20 Agency dynam ical SMEs (consulting, preparation of PN) 2004 us 20. Support projects for quality development and February Continu o X X 120.000 50 30 10 10 Chamber introduction of ISO and CE standards with SMEs 2004 us START February 3, 2003 March 03, 2003 March 09, 2003 March 09, 2003 DURA TION Continuo us April 06, 2004 March 12, 2004 March 12, 2004 20

21. Projects grouping enterprises into networks and clusters X X X X X 200.000 70 20 10 Agency April 2004 Continuo us 22.Organization of a number of meetings with SMEs from neighboring countries X X 40.000 50 20 20 10 Chamber April 2004 Continu o us 23.Support towards internationalization of SMEs to participate in fairs, expositions, conferences X X 100.000 20 20 10 50 Agency February 2003 Continuo us 24.Analysis of human resources and needs of SMEs and larger enterprises by worker skills X X 50.000 80 20 Agency November 2003 May 2004 25.Analysis of the existing training and education programs X X 10.000 80 20 Agency November 2003 May 2004 26.Development of new training programs and change/adjustment of the existing ones to the n eeds of SMEs 27.Development of financial schemes subsidies for job creation X X X X X 50.000 80 20 Agency April 2004 January 2005 X X X X 100.000 60 30 10 Agency February 2004 June 2004 28.Entrepreneuship training for youth X X X X 50.000 70 20 10 Agency November 2003 June 2004 29.Support to employment of young graduates X X X X X 150.000 50 40 10 Agency March 2004 Continuo us 30. Support to development of supplementary rural activities X X X X X 200.000 60 30 10 Agency April 2004 Contin uo us 31.Support to grouping and entrepreneurship initiatives for women X X X X X 50.000 50 25 25 Agency March 2004 Continuo us 32. Support to employment of disabled persons and persons with limited working ability X X X X 200.000 50 40 10 Agency Feb ruary 2004 March 2004 33. Development of special training programs for entrepreneurs and workers from various sectors X X X X X 100.000 70 30 Agency December 2003 March 2004 34.Development of comprehensive education programs for start up entrepreneurs and for schools X X X X 40.000 70 30 Agency December 2003 January 2005 35. Development of vocational training programs for adults X X X X X 200.000 70 30 Agency February 2004 January 2005 21

Proposals for initial projects Prijedor Local Economic Development Agency 22

Entrepreneurship Incubator Project 23

Agriculture Cluster Project 24