New financial contract worth 10.13 million euros, between the Serbian Entrepreneurship Foundation (SEF) and the German Development Bank (KfW), will provide additional support to micro, small and medium-sized enterprises in Serbia. Funds for this program are provided by the European Union, while SEF will be the implementing agency in our country. Loans to the SMEs sector will be available through commercial banks, and SEF will provide an adequate guarantee mechanism to domestic banks.
The contract was signed at the Europe House in Belgrade, and the ceremony was attended by the Ambassador of the European Union to Serbia – Emanuele Giaufret, the Ambassador of Germany in Serbia – Anke Konrad, the Minister of Economy – Adrijana Mesarović, and Aleksandar Grabovac, Managing Director of SEF.
The European Union actively participates in projects that promote entrepreneurship and self-employment in Serbia and that help the SME sector to increase the volume and capacity of trade in the country, as well as with companies in the EU.
“This program is the latest addition to our expanding support for small and medium-sized enterprises in Serbia. Such enterprises are the backbone of any growing economy. They drive innovation, create jobs and contribute to overall economic growth and stability. The resilience of these businesses is key to the continued progress of any country. We want companies in Serbia to one day become EU companies, and that is why we are working on building their capacities, said Giaufret.
Germany is one of the most important economic partners of Serbia and one of the largest investors in the Serbian economy, and it also provides strong support for investments in small and medium-sized enterprises.
“The EU and Germany are cooperating with Serbia to strengthen micro, small and medium-sized enterprises. Our SEF grant funding facilitates access to finance for the SME sector, while on the other hand we encourage banks to provide financial and non-financial services to this segment of the economy. Our goal is to support the growth of local Serbian entrepreneurs and increase employment opportunities. I am pleased to say that SEF has so far supported 2,800 small and medium-sized enterprises and helped created or preserve almost 10,000 jobs,” said German Ambassador to Serbia Anke Konrad.
The next step in the implementation of this program is the signing of contracts with domestic commercial banks on the realization of loans from this credit line.
“Wise and responsible countries invest in their economy, because they know that only a stable and strong economy can contribute to the growth and development of all other sectors. Our economic trends imply a strategic approach to the sector of micro, small and medium-sized enterprises, because we are aware that among them there are many family companies with a long tradition and a large number of young start-up companies, which are on a good path of growth. Companies from this sector, like anywhere in the world, cannot go through the most valuable stages of their growth alone. A serious state like ours must stand by them, and behind a serious state, as a result of a clear statesmanship and a completely open agenda for the future, there are international organizations whose task is to create a balance in the development of all regions of Europe”, Mesarović pointed out.
“We are very pleased that the Serbian Entrepreneurship Foundation has been recognized by the European Union as a partner in the implementation of the support program for domestic SMEs. The goal of the program is to support manufacturing companies, companies in rural areas, as well as beginners in business, by providing adequate guarantee support to partner banks that provide credit support to these groups of clients. We are grateful to the European Union for the allocated funds as well as to KfW for the inclusion of the Serbian Entrepreneurship Foundation in this program”, said Aleksandar Grabovac, Managing Director of SEF, who signed a new contract between the two institutions with the Director of the German Development Bank Office in Belgrade, Carsten Sandhop.
The Serbian Entrepreneurship Foundation (SEF) was established in 2019 by the German Development Bank (KfW) and the Serbian Chamber of Commerce, with the aim of facilitating access to financing for micro, small and medium-sized enterprises and business beginners. So far, close to 2,000 beginners in business have gone through the start-up support program, that received credit from commercial banks, as well as the payment of grants for those who regularly repay the loan to the bank. Along with this program, there was also a support program for small and medium-sized enterprises whose business was threatened by the Covid19 pandemic, where SEF, through partner banks, directly supported 850 enterprises, entrepreneurs and registered agricultural households.
