Center for Business Promotion and Entrepreneurship Sandomierz, Poland
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Center for Business Promotion and Entrepreneurship Sandomierz, Poland Annual Report 2013 Introduction Since 1991, the Center for Business Promotion and Entrepreneurship in Sandomierz, Poland, a not-for-profit foundation, has helped to lead and accelerate the post-communist economic transition in rural southeastern Poland. Its early programs concentrated on agribusiness development. In recent years its efforts expanded into general business development as well as into public sector economic and development planning. The Center’s goal is to help individuals and communities harness private enterprise and democratic principles as a means to sustainable economic and social development. The Center’s well-qualified, experienced staff provides consulting, training services and technical assistance to small and medium-sized businesses, entrepreneurs and farmers, non- government organizations and local governments. During 2013, the Center provided training, advisory services and financial assistance to 1,530 clients, micro-, small- and medium-scale enterprises, start-up businesses and representatives of non-government organizations. The Center’s specialists delivered 1,414 informational services regarding establishing a business and supporting funds that are available for new businesses, investments and local initiatives. Advisory services in general business were delivered to 593 clients, and 46 business start-ups and enterprises received loans from the Center’s Loan Fund. More than 700 people were trained through various programs focused on entrepreneurial skills’ development, business operations, available supporting programs, project design and management, grant application preparation, as well as in building partnerships using European Union (EU) and Swiss support for the benefit of local communities. Program Overview In 2013 the Center continued to concentrate in these major program areas: • Business Advisory Service (BAS): Training and consulting services for small- and medium-sized businesses (SMEs) focused on increasing client business profits and competitiveness --- provided within the Business Advisory Services (BAS) Program • Loan Fund: Loan program established by the Center for small-scale enterprises and business start-ups 1 27-600 Sandomierz, Poland pl. Ks. J. Poniatowskiego 2 phone + 48 15 833 34 00, fax + 48 15 833 34 60 www.opiwpr.org.pl [email protected] • Local Government and Community Development: Assistance to local governments in building democracy and successful, community-based economic development --- provided within the Local Government Program • The Świętokrzyskie Mountains Our Future: Program focused on improving the quality of life of inhabitants of the Świętokrzyskie Mountains region, offering a range of training and advisory services combined with direct financial support to local non-government organizations, business-start ups and small-scale businesses. • Rural Areas’ Development: Training and education on EU structures that focus on agribusiness, farmers and the development of rural southeastern Poland --- provided within the Rural Areas Development Program • Training and Conferences Services: Publicly available training, regularly scheduled courses, and custom-designed closed training programs in the Center’s residential training and conference facility, called Hotel Basztowy. The Center cooperates with a wide range of local, regional and national as well as international agencies. It is a prominent and active member of the National Small and Medium Enterprise Services Network (KSU) established by the Polish Agency for Enterprise Development, a leading national agency promoting cooperation among public administration bodies and non-government organizations. Through the KSU network, the Center has access to specific programs providing advisory, training and information services for small- and medium-sized enterprises, all geared to help them increase their competitiveness within the European Union. Business Advisory Services (BAS) In 2013, the Center’s BAS contributed to the creation or modernization of 70 businesses generating 61 new jobs. BAS provided consulting and advisory services to prospective owners of small and medium-scale businesses and start–ups. Since its founding, the Center’s BAS has provided high-quality advisory services to entrepreneurs starting or expanding businesses, as well as assisted larger firms to improve their productivity and competitiveness towards generating vitally needed off-farm employment. In response to specific needs, the BAS Program offers training, consulting and a range of business development services to businesses and entrepreneurs, including: ▪ Identification of potential financing and investments available EU structural funds ▪ Business planning, financial planning and analysis, feasibility studies, market analysis ▪ Help to secure the best loan packages available ▪ Customized business education and training ▪ Basic information on establishing and running a small business ▪ Access to information about legal issues, sources of supply and markets, etc. Developing Local Business Capacity 2 27-600 Sandomierz, Poland pl. Ks. J. Poniatowskiego 2 phone + 48 15 833 34 00, fax + 48 15 833 34 60 www.opiwpr.org.pl [email protected] Poland’s National Cohesion Strategy was prepared in cooperation with the European Commission. This strategy lays out guidelines for using structural funds and the EU’s Cohesion Fund and determines the development activities to be undertaken by Poland in 2007 – 2013. The goal is to achieve sustained economic growth, improved competitiveness and increased employment. Years 2013 and 2014 complete access to supporting funds available for the business sector, non-government organizations and educational organizations which started in 2008. In 2013 the Center continued to implement the program “Consulting Services Office for SMEs” (PK) started in February 2012, with a new edition of the program financed from structural funds (Operational Program Human Capital) provided by the Polish Agency for Enterprise Development. This program supports the SME sector by delivering fee-free informational services to potential entrepreneurs and basic consulting services (paid at 10 percent of the cost of service) to owners of small- and medium-scale businesses. In 2013, through the PK program, the Center delivered 1,165 informational services and 121 advisory services regarding small and medium-sized business operations and opportunities, serving more than 950 clients. Loan Fund The Center has long recognized that a lack of capital available to SMEs -- especially for young businesses and start-ups -- is one of the major obstacles to development of prosperous business communities in the region. Banks shy away from those clients who lack a sound business history, directing their lending to SMEs that are well-established. Despite gradual improvements in commercial finance, SMEs still have a strong need for access to loans based on reasonable conditions. In 2005, with generous support from a private US foundation, the Center established a Loan Fund to support business start-ups and SMEs. Loans of up to 250,000 PLN are available for a period of up to five years at a sub-market interest rate. Historically, loans have been repaid on time. The default rate from distributed loans is 3 percent of total engaged capital. In 2013 the Loan Committee approved 46 loans for total amount of 1,983,600 PLN. The pure interest rate charged in 2013 was from 5.80 – to 8.80 percent. Additional costs include a 1 percent commission and charges for loan application documents and loan appraisal services. Since its inception, the Center’s Loan Fund has approved 197 loans, totaling 8,881,530 PLN. As a result of the Loan Program, 95 new enterprises were opened, and 102 operating companies received financial resources to develop their operations. Loan investments created 138 new jobs. 3 27-600 Sandomierz, Poland pl. Ks. J. Poniatowskiego 2 phone + 48 15 833 34 00, fax + 48 15 833 34 60 www.opiwpr.org.pl [email protected] Local Government and Community Development Both local economic development and the growth and strengthening of democracy require efficient and effective local government. This, in turn, requires clear, strong communications and relationships among all segments of the local community. The Center’s overall objective is to create and demonstrate mechanisms and procedures for the effective management of gminas and the creative and efficient use of EU funds available to local communities. Late in 2008, the Center received a grant to establish and provide “The Regional Center for the European Social Fund” (ROEFS) in its field office in Ostrowiec Świętokrzyski. Project financial support came from EU sources within the European Social Fund (Operational Program Human Capital). In 2013 the Center started to implement another two-year edition of the project. ROEFS helps local non-government organizations and inhabitants of the Świętokrzyskie region to apply for financial support for their activities from European Social Fund (EFS) sources. Activities include informational, training and advisory services in the subject of available EFS supporting programs, project design and management, grant application preparation, as well as building partnerships using EFS support for the benefit of local communities. In 2013, ROEFS provided a range of services including advisory services, information, training, seminars and meetings. During the reporting period, ROEFS delivered general