ABOVE:
D&D Metal, a small Croatian company in Osijek joins the supply chain of the large multinational conglomerate ThyssenKrupp as a result of ESP project's referral system.
Implementer: The DAI/Nathan Group
Partners: Croatian Agency for Small SMEs (HAMAG), Small Business Development Agency (HBOR), Association of Management Consultants, Medimurje Regional Development Agency (REDEA), the Istrian Development Agency (IDA), PBZ, VABA Bank, Poteza Partners, Adriatic Zagreb, Ascendant, Croatian Exporters Association, Association of Family and Small Hotels, Croatian Employers Association, Nova Gradiska Regional Development Office, LEDA (Local Economic Development Agency), Bjelovar Business Park, Virovitica-Podravina County Entrepreneur Center, Sibenik-Knin County Entrepreneur Center, Zadar County Entrepreneur Center, Regional Institution for Enhancement of SMEs PRIMA, Knin City Entrepreneur Center, City of Dubrovnik and Dubrovnik-Neretva County Entrepreneur Center, Development Agency North, the National Competitiveness Council
Small and Medium Enterprises
Project completed June 2008
By assisting 6,000 enterprises in Croatia, USAID helped create almost 20,000 new jobs
Croatia's potential for economic growth was hampered by inadequate investment in production, low levels of productivity, and an inefficient legal and regulatory environment. Pockets of strong entrepreneurial activity, however, demonstrated Croatia's capacity to seize and convert market opportunities into business success. USAID's Enhancing Small and Medium Enterprises Project (ESP), also referred to as Poduzetna Hrvatska or Entrepreneurial Croatia, assisted 6,000 enterprises by working through partner organizations, and generated almost 20,000 new jobs. One-third of these new jobs were created in rural or disadvantaged areas of Croatia. ESP operated through a network of public and private organizations at the national, regional and local levels.
The project helped increase revenues, exports, and investment levels by: 1) improving financial and non-financial services from public and private sector organizations to support enterprise growth and development; 2) upgrading supply chains and productivity in growth industries, including tourism, manufacturing, specialty foods, information and communication technology, and financial services; and 3) improving the business environment to reduce the cost of doing business.
ESP assistance concentrated on business strategy formulation, brokering market information, methods and technologies that enhanced export readiness, product development, bank and non-bank financing, public-private partnerships, policy advocacy, and the adoption of appropriate business policies, business models, practices and technologies. It did not provide direct financial support to organizations and enterprises.
Results
The project assisted 6,000 enterprises, generating more than $80 million in export revenue and over $250 million in total revenue; $170 million in Foreign Direct Investment was facilitated. Assisted enterprises created almost 20,000 new jobs.
Over 5,000 enterprises became first-time bank borrowers, generating additional business revenue and expanding market opportunities.
Over 5,000 entrepreneurs were trained in business and management skills to improve enterprise productivity.
Download document: ESP (PDF 241 KB)
