1. EBRD Small Business Support
Building stronger businesses
EBRD Small 1

2. Private sector development through a multi-tier approach
Development of a competitive and innovation-driven private sector economy
Financial support through loans and equity financing through LEF
SME credit lines through EBRD partner Banks
Technical assistance through SBS
(Policy Dialogue)

3. EBRD financing options for MSMEs
Indirectly: via local partner financial intermediaries FIs and through many FI MSME dedicated facilities, deployed across all countries. In Western Balkans FI partners include Banka Intesa, UniCredit, Societe General, Raiffeisen, Opportunity Banka, Erste Banka etc.
Semi-indirectly: via co-financing mechanisms (e.g., the Medium-sized Co-Financing Facility (MCFF), available in ETCs
Directly: through several facilities created mostly in the context of the strategic ETC and WB Initiatives for direct “tailor-made” financing:
In the Western Balkans EBRD operates the Local Enterprise Facility (LEF) and the WB SE Direct Financing Facility (WeBSEDFF)
18/09/2018

4. LEF - instrument of direct financing for local enterprises
The Local Enterprise Facility (LEF) was established in jointly by the EBRD and the Italian Government.
A delegated facility for equity, quasi-equity investments and tailor-made debt financing.
Investments encompass the Western Balkans, Turkey, Bulgaria and Romania,
An extension to the Southern- and Eastern Mediterranean region is currently processed
Private equity funds 3

5. Local Enterprise Facility (LEF)
A delegated facility for equity, quasi-equity investments and tailor-made debt financing
Developed to support financing needs of dynamic local enterprises
€ 400 million of capital provided jointly by the EBRD (€ 380 million) and the Italian government (€ 20 million)
Total cumulative commitment of € 277 million, out of which € 200 million (72%) disbursed, through the total of 108 projects to date
Immediate pipeline (H2 2013) - € million in 45 projects
Project Composition
Number of LEF Deals in Western Balkans

6. LEF Investment Criteria
Eligible investments: expansion, restructuring or acquisitions of existing private businesses
Eligible sectors: a wide range of sectors, with only few exceptions (weapons, liquors and tobacco). All investments must be in line with sound environmental principles
Size of investments: LEF individual investment in the form of debt, equity or quasi equity in the amount of up to € 10 million. Minimum individual investment is € 1 million
Time horizon: a period from 3 up to 8 years

7. SME Financing Provided Through Credit Lines to Local Banks
Improve access to longer term finance for private enterprises for urgent capital investments, as well as working capital;
Facilitate upgrades of SME operations towards EU production standards;
Promote sustainability and competitiveness of the SME sector through crisis and beyond;
Capacity building at the level of participating banks to assess and finance environmental investments.
Who EBRD works with in Serbia
Banca Intesa Beograd
Komercijalna Banka
Societe Generale
Unicredit Bank Serbia
Alpha Bank Serbia
Erste Bank Serbia
Cacanska Banka

8. Business know how in addition to financing
EBRD’s Small Business Support (SBS) team has been helping SMEs since 1993
SBS works on a not-for-profit basis with donor funding from 24 countries, with two instruments: the Enterprise Growth Programme (EGP) and Business Advisory Services (BAS)
SBS promotes good management in small businesses in the EBRD region, by providing direct assistance to individual enterprises, helping them to grow their businesses and become more competitive
Market and sector development activities strengthen the local consultancy markets and disseminate sector best practices
SBS at a glance
Over €200m donor funding
1,800+ EGP projects
12,500+ BAS projects
Nearly 800 market development activities
Active in 25 countries

9. EGP Brings International Know How BAS Fosters Local Expertise
EGP operates on a cost-sharing basis (minimum 10% of client contribution), utilising international consultants with over 15 years of experience in the specific industry.
EGP focuses on substantial managerial and structural changes within companies, focusing on financial management, strengthening organisation, management, operations, sales and marketing.
Project implementation period is between 12 and 18 months
BAS assists individual enterprises to engage local consultants on a cost sharing basis (25 -75% of the total net project cost, capped at €10,000)
BAS supports projects of market analysis and planning, feasibility studies, business plans, information systems implementation, quality standards introduction, energy efficiency studies etc.
Project implementation period is between 2 and 6 months
BAS develops infrastructure of local consultants through different trainings, roundtables, visibility events and workshops.
Private equity funds 3

10. SBS eligibility criteria
EGP
BAS
Ownership
Majority privately- and domestically-owned
Size
Usually between 50 – 1000 employees, turnover up to €50 million
Up to 250 employees (target group up to 50 employees)
Industry
All sectors except banking and financial services, military products or services, gambling, tobacco and liquor.
Viability
Acceptable debt structure depending on the industry and business type, sound accounting standards, ability to demonstrate potential growth
Integrity
Enterprise and management must be credible and respectable
Maturity
Operate from a minimum of 2 years
Management attitude
Management must be open and committed to achieve objectives and participation in the project costs.
Cost share
Between 0% and 50% of total project cost (€ on average), dependent on size and other investments
Between 25% and 75% of total project cost (€9.700 on average), dependent on size, location and type of service

11. SBS helps its clients in both pre and post investment stages to make companies creditworthy and suitable for further investment
SBS clients in the Western Balkans received a total of €370 million of EBRD investments, both in debt and equity
SBS clients often obtain non-EBRD financing, such as through local commercial banks. In 2012, 15% of SBS enterprises received non- EBRD investments with a total value of €84 million
SBS closely cooperates with the EBRD LEF, through improving financial reporting and accounting standards
Both a BAS and EGP client, a beverage manufacturer in Skopje received € 1 million from Stopanska Banka, and € 2 million from Komercijalna Banka
In total (not just 2012): 25% of SBS clients secured external finance (€800+ million)
General points on pre and post investment support
Stats

12. SMEs using external finance - barriers
Access to different financing instruments offering more favourable terms – specific credit lines, business angels, development funds
Misunderstanding that banks are partners and support in developing SME’s business
Lack of management’s finance knowledge and skills to do business with FI

13. SBS Serbia – with EU support

14. “Support to SME Development in Serbia”
Funded by €3.48 million from the EU IPA
Co-financed and implemented by the EBRD
In partnership with the Ministry of Economy
Programme Objectives: Enhance the competitiveness and productivity of the Serbian private sector economy
Main activities:
Direct enterprise assistance through SBS over a period of 36 months
Trainings for individual entrepreneurs and local consultants in priority areas
Expected results:
A minimum of 210 BAS projects
A minimum of 30 EGP projects
A minimum of 90 entrepreneurs trained
A minimum of 60 consultants trained

15. Small Business Support
European Bank for Reconstruction and Development
Blue Centre Serbia B1/VI
Spanskih Boraca 3
11070 Novi Beograd Tel: 15