SME development through business advisory services EBRD...

Advice for Small Businesses in Romania

SME development through business advisory services

EBRD Small Business Support programme for SMEs


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.

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Maximum

grant

Maximum

length

10,000 euro 6 months

Grants between 25-75%

EBRD offers flexible grants of

up to 75% of the total net cost of a

consultancy project undertaken with local

consultants


Grant financing scheme in 2015

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Eligibility criteria

• Up to 250 employees; up to 50 million euro

turnover

• Majority privately and locally owned

• Operating for a minimum of 2 years

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SBS does not support

Companies operating in:

banking and financial services;

insurance;

vodka/spirits production;

tobacco;

gambling;

military products/services.

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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

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Advice for Small BusinessesAdvice for Small Businesses in Romania

Energy efficiency project

Client: Meet processing company in Vaslui County

• Energy efficiency project, 2012 Energy audit conducted by a localconsultant 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)

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SBS grant

6,120 euro

Energy cost reduction

- 7 %

Savings

98,000 euro / year

Project net cost

8,160 euro


Operations improvement project

Client: Producer of roofing systems in Prahova County

• Operations improvement project, 2013 internal processesreorganization

• 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 focuson exports; in 2013 it was rewarded with the title of „2013 exporter inconstructions”

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SBS grant

7,410 euro

Export increase

+ 165,000 euro

Turnover increase

+ 11 %

Project net cost

12,350 euro


Human resources project

Client: Distributor of money handling machines in Cluj County

• Human resources project, 2013 Implementation of performancemanagement standard Investors in People

• Organization analysis and diagnosis

• Action plan for standard implementation

• One year after project completion the company received the Workingwith Investors in People Certification and registered an increase inproductivity

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SBS Grant

3,600 euro

Productivity increase

+ 10 %

Profit increase

+ 400%

Project net cost

7,200 euro


Other SBS projects

Road transportation company– Ploiesti, 2013

• 14 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

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Milk producer – Sibiu, 2013

• 1.3 million euro turnover, 41 employees

• Project: Implementation of ISO 22000

- project duration 3 months

- project cost 5,500 euro SBS grant 3,000 euro

Consultanţă pentru întreprinderile miciAdvice for Small Businesses in Romania

Other SBS projects

Eggs producer– Rasnov, 2013

• 2,2 million euro turnover, 29 employees

• Project: Branding

- project duration: 4 months

- project cost 19,360 euro SBS grant: 10,000 euro

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SBS results in Romania

Over 550 assisted companies

63 projects in 2014 alone

7 mil. euro grant financing provided

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Only 15% of beneficiary companies

are located in Bucharest

Most beneficiary companies have

less than 50 employees The largest number of advisory projects

are in marketing

0% 10% 20% 30% 40%

Strategy

Reorganisation/Restructuring

Quality Management

Organisation

Operations

Marketing

Information Communication Technology

Environmental Management

Engineering Solutions

Energy/Resource Efficiency


SBS results in Romania (cont.)

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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


Working with SBSIf you are an entrepreneur or represent an SME, we will gladly assist

you in finding the right business advice to develop your business!

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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


Working with us

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)

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If you are a local consultant, we invite you to joint our network of

professionals (246 consultants today)!

www.ebrd.com/knowhow 16

Percentage of consulting business that grew in 2013 compared to 2012: 55%

Percentage of members of a consultant association: 32%

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%

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 not specialised in a specific industry, but nearly

one third of the consultants who completed the survey operate in the manufacturing

sector. Advisory services in the transportation sector remain limited.

Average number of employees (average number of female employees): 10 (5)

Percentage of consultants with a website: 88%

Annual Consultant Review 2014

Romania

Number of survey respondents: 111

Company characteristics

Average turnover: EUR 285,209

Main city52%

City45%

Rural3%

Location

Micro67%

Medium33%

Size segmentation of clients

www.ebrd.com/knowhow 17

Types of advisory services offered Advisory services by industry

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%

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.

EBRD benefits in 2014 Overall satisfaction

EBRD benefits

0 20 40 60 80

Strategy

Marketing

Organisation

Accounting and financialmanagement

Operations

ICT

Quality management

Engineering

Energy/ resource efficieny

Environmental management

0%

10%

20%

30%

40%

Increasedskills

Benefitedbusiness

MoreSophisticated

projects

Increasedprojects

New services

Dissatisfied2%

Neutral23%

Satisfied30%

Very satisfied

45%

0 10 20 30 40 50 60 70

No industry specialisation

Manufacturing

Food and Beverages

Professional Services

Wholesale and Retail Trade

Construction and Infrastructure

Hotels, Restaurants and Recreation

Natural Resources and Energy

Education and Community

Technology, Media and Telecoms

Health and Services

Transportation

Annual Consultant Review 2014

Romania


Working with SBSIf you want to increase your know how and develop new collaborations, we invite you to attend our trainings, seminars and conferences!

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• 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)

• 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 (2010 - 2011)


And we offer integrated services

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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


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!


Contact us!

EBRD Small Business Support

Tel 021 202 71 00

[email protected]

[email protected]

www.basromania.ro

www.ebrd.com/knowhow

mailto:[email protected]

SME development through business advisory services EBRD...

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