1. 2012 Raising the level of the innovation in Polish SMEs: challenges and achievements Dariusz Szewczyk Deputy to Chief Executive Officer of PARP Astana, 24 May 2012

2. Polish Agency for Enterprise Development (PARP) Established by the Act of 9 November 2000, a governmental agency subordinate to the Minister of Economy. The main objectives:  enterprise development  application of new techniques  export development  creation of new jobs, tackling unemployment  human resources development  regional development Structure:  Supervisory Board  CEO, Deputy to CEO (2)  budget for 2012: 1,36 bln EUR  no. of beneficiaries: 12 thous.  23 Departments  more than 500 employees. PARP in the financial perspective 2007-2013 is involved in implementation of 7.2 bn EUR (8.4% of total NSRF budget) within three OPs: OP Innovative Economy (EUR 3.9 bn), OP Human Capital (EUR 672 m) and OP Eastern Poland Development (EUR 2.6 bn).

3. Astana, 24 May 2012 Implementation of Operational Programmes (for 31.03.2012)

4. Astana, 24 May 2012 PARP achievements – 11 years of activity  Over 28,5 thousand contracts amounting to almost 6,55 bilion EUR,  Over 500 thousand employees from over 180 thousand companies took part in training sessions and postgraduate studies co-financed by PARP,  Over 1 million people benefited from the National SME Services Network,  Over PLN 828 million capitalization of regional and local loan and guarantee funds,  200 infrastructural projects implemented in the less developed regions in the framework of Regional Development Programmes,  Over 8 million people visited Poland Pavilion during Expo 2010 in Shanghai,  Presidency of the Council of the European Union (7 conferences, 4 500 participants, 600 EEN offices represented during the Annual Conference, 250 ambassadors from Europe supporting women entrepreneurship).

5. Astana, 24 May 2012 National SME Services Network (KSU) Financial services – loan funds Financial services – guarantee funds Pro- innovative advisory Information services New systemic services

6. Astana, 24 May 2012 Organisational structure of the SME support system in Poland REGIONAL LEVEL 16 REGIONAL FINANCING INSTITUTIONS (RIF) one in each voivodship, cooperate with the PARP in the implementation of national programmes and regional in some cases NATIONAL LEVEL POLISH AGENCY FOR ENTERPRISE DEVELOPMENT governmental agency, responsible for implementing of economic development programmes LEVEL OF DIRECT SERVICE PROVIDERS SERVICE PROVIDERS with significant experience in cooperation with SMEs provide advisory, training, information, financial and proinnovative services National SME Services Network (KSU) business support organisations cooperating within the network of audited and accredited institutions Commercial and non profit Institutions entitled for services providing without PARP accreditation Information services PK Proinnova- tive services KSI financial services - guarantees financial services - loans pilot services KSU

7. Astana, 24 May 2012 Loan and Guarantee Funds system

8. Astana, 24 May 2012 Funds description Loan Funds GF: separate fund for loans for SMEs and start-ups Guarantee Funds LF: separate fund for loans for SMEs and start-ups GF capital:  self-governments’ subsidies,  financial aid  own resources from  the LF institution and/or  income from the lending activity. At present, there are ca. 49 GF, 41 of which concluded agreements with PARP. LF capital:  self-governments’ subsidies,  financial aid  own resources from the LF institution and/or income from the lending activity. At present, there are ca. 69 LF, 45 of which are under KSU, and 41 concluded agreements with PARP. LF and GF function in accordance with fixed standards and regulations on granting loans/ guarantees

9. Astana, 24 May 2012 Loan Funds Guarantee Funds For SMEs applying for a loan or tendering for a contract but not having enough security for the liability.  This term guarantee is granted for the period corresponding to the loan period, until the liability payment;  Payments and fees amounting up to 3.5% of the guaranteed liability are taken;  Individual guarantee amounts up to 80% of the amount of the loan;  Security: blank promissory note and, if necessary, additional securities;  Granted after the risk analysis concerning the non-repayment of the liability; For SMEs and persons starting business activity. LF may also grant loans from their own resources to other organisations. However, these are always special-purpose loans.  Allocation – company development: investments, current, investments and current  Payment period: 36 to 60 months  Interest rate: ca. 5.5% to 9.5% a year,  Possible fee amounting to 1-3 % of the amount of the loan  Required own contribution of the consumer amounting to ca. 20% of the investment value;  Security: blank promissory note and, if necessary, additional securities;

10. Astana, 24 May 2012 Funds’ support and development of services concerning granting loans and guarantees under the National Services Network (KSU) Activities:  Providing quality of services (working standards; standards of services – support and advisory, audits, monitoring)  Moreover, for GF: ordering service of assigning/ analysing rating,  Building consultants’ competencies (analysis of competencies, development plans, trainings, advisory)  Cooperation within SI KSU (news, knowledge base, forum, reporting)  Promotion  Analyses and experts’ opinions

11. Astana, 24 May 2012 Measure 3.1 „Initiating innovative activities”

12. Astana, 24 May 2012 Measure 3.1 „Initiating innovative activities”  Measure 3.1 „Initiating innovative activities” within Innovative Economy Operational Programme has been implemented since 2008 by the Polish Agency for Enterprise Development. The basis of project realisation is the Regulation of the Minister of Regional Development of 7 April 2008 concerning granting by PARP of financial aid within Innovative Economy Operational Programme,  The allocation for the measure amounts to 158 000 000 EUR,  The objective of the Measure 3.1 is to increase the number of enterprises acting based on innovative solutions. The Measure covers support within creation, based on innovative ideas, of new enterprises through consulting on establishment of enterprises, granting access to infrastructure and services necessary for newly created enterprises and financial support for newly created enterprises,

13. Astana, 24 May 2012 Indexes monitored by PARP at the level of measure 3.1 1.Number of projects supported from the funds of the measure - 45 2.Number of enterprises established in result of support granted for innovation implementation - 600 3.Number of incubated ideas - 1100 4.Number of functioning new enterprises - 250

14. Astana, 24 May 2012 Examples of Beneficiaries www.trinityadventures.pl www.inkubatory.pl www.ventureshub.pl Newly created enterprises act mainly in the sectors of: IT Telecommunication Internet Biotechnology Renewable sources of energy.

15. 2012 Thank you Dariusz Szewczyk Deputy to Chief Executive Officer of PARP