A NEW OPPORTUNITY FOR SMALL BUSINESSES – A CALL FOR FAVORABLE LOANS AND GRANTS TO BE ISSUED BY THE END OF THE YEAR

26. November 2019.

A new "Entrepreneurship and Self-Employment Promotion Program" is underway, which provides 300 million dinars for start-ups, so that they could develop or grow their businesses. It is envisaged that businessmen will be eligible for financial support through a 20 percent grant. Businessmen have to undergo training as well.

Nikola has been fighting for his place on the market for a year and a half. The products manufactured by his company are currently located in about 500 facilities in Serbia.

“Finance is a big problem because banks do not recognize beginners in the business until they have existed for two years. We do not have the opportunity to be financed from other sources, except from our own," says Nikola Stanisic, Director of the “Forest Secret” company.

A new national program for promoting entrepreneurship and self-employment could help Nikola, as well as other start-ups, farms, micro and small companies, which are up to two years old and want to start or grow their own businesses, in their fight against competition.

“We have signed up for a project implemented by the Serbian Chamber of Commerce (SCC) for startups. It was only a matter of time before such a project would start in Serbia, "Mr. Stanisic says.

Bank loans will be awarded for the purchase of manufacturing equipment, machinery, plants, seedlings, the purchase or adaptation of business or manufacturing premises, as well as for working capital. All this with benefits and a lower interest rate, which is fixed at a maximum of 5.99 percent annually.

“The project will be implemented in the first phase exclusively with funds provided by the Ministry, or from the budget of the Government of the Republic of Serbia, in which three hundred million dinars were provided for these purposes, "said Dragan Stevanovic, State Secretary at the Ministry of Economy.

Upon completion of the first phase, the German bank will provide a grant of 12.9 million euros.

“All those who want to qualify for these funds have to undergo training that will last for five days,” said Dragan Stevanovic.

“All beginners in the business have a vision and great energy to succeed in what they do. However, they get into the business with very little knowledge, which is exactly what the SCC provides - information on writing a business plan and advising throughout the entire funding process, " Nikola Stansic said.

In 20 days, 130 persons showed interest in the new program of promotion of entrepreneurship and self-employment, while around 60 filled in the application form, including 33 business entities. Application forms will be received until the end of the year.

The program is implemented by the Government of the Republic of Serbia, the German Development Bank and the Serbian Chamber of Commerce.

Source: Serbian Broadcasting Corporation, Business Morning and Coordination Body