How public-private partnerships can accelerate development of small and medium-sized enterprises

According to the Statistical Office, there are around 16,000 small and medium-sized enterprises in Serbia. Officials believe that, for their further development, what’s mostly lacking in knowledge in areas such as professional management and financial management. It is through the public-private partnership project between the Serbian economy and the Swiss Agency for Development and Cooperation that, for the second year in a row, they have been able to apply for grants of up to 100,000 Swiss francs for professional support and business improvement.

A protective equipment company in Smederevo had about ten employees when it was founded three decades ago. Over time, it has grown into a medium-sized company that employs more than a hundred workers. It now produces more than 360,000 pieces of work and protective clothing annually, half of which it exports. However, the growth achieved has outpaced the existing organizational system.

– Cooperation with SME HUB has helped us a lot in creating our new company strategy, a strategic plan for the next three years, in order to cope with all the challenges that occur in the market on a daily basis. We have also improved the production process, accelerated it, and better distributed our financial resources and therefore our supplies within the company in order to reduce costs and make the company more competitive in the market – says Nikola Ristic from the company Jugoteks, Smederevo.

For decades, cooperation between Switzerland and Serbia has been an example of how strategic partnerships can bring lasting results, business people say.

– Today, around 600 Swiss companies operate in Serbia, employing more than 20,000 people in various sectors - manufacturing, IT, pharmaceuticals and finance. Since 2010, Swiss companies have invested around EUR 2.5 billion, making Switzerland one of the five largest foreign investors. SME HUB is a great example of how local empowerment and partnerships contribute to shared growth – says Richard Kohli, Head of the Swiss Agency for Development and Cooperation.

Compared to last year, the number of companies willing to engage in the public-private partnership process has doubled.

– A total of 23 small and medium-sized enterprises have started the transformation process, 12 of which have successfully completed it. The value of the transformations amounts to 1.5 million Swiss francs. What is particularly significant for us is that they reported using up to 70% of the tools and methods they received in this process – emphasizes Aleksandar Goracinov, Director of SME HUB.

In the companies that have become part of the public-private partnership project, almost 50% of the employees are women, and more than 430 workers belong to vulnerable groups. It is expected that, in the coming years, the project will support around 80 different domestic small and medium-sized enterprises.

SME HUB Beograd

Švajcarska agencija za razvoj i saradnju SDC SCG

Jugotex d.o.o. Smederevo

Swiss Agency for Development and Cooperation

SME HUB

Jugotekst

Nikola Ristić

Richard Kohli

Aleksandar Goračinov

public private partnerships