Enhancing MSEs sustainaBle gRowth And CompEtitiveness

Programme 2021 - 2027 Interreg VI-A IPA Croatia - Bosnia and Herzegovina - Montenegro

Date of latest update: 2025-02-07

Description

Description (EN):

EmBRACE project is a pilot project that plans to offer support to micro and small enterprises (MSEs) in the Programme area and enhance the competitiveness of micro and small sized enterprises (MSEs) in the border regions. MSEs in all three countries account for the largest significant share of business and total employment, but the 'starting a business' category is still one of the lowest rankings as the bureaucratic administration remains a burden. Support will be given to the development and adaptation of business models, products, services and processes, fostering development of local MSEs with strong focus on introducing product or process innovation, developing pilot actions and new business solutions, while simultaneously enhancing their cross- border business cooperation.

Actual Achievements (EN):

HAMAG-BICRO as Small Project Fund Beneficiary (SPFB) has implemented all activities according to the plan for reporting period 1 (1.3.2024. – 30.6.2024.). Based on the signed Subsidy contract with Managing Authority (MA), this report includes expenditures from 1st December 2023 till 30th June 2024. Project management team in HAMAG-BICRO was intensively preparing the application for Small Project Fund. The EmBRACE project was presented on Monitoring Committee meeting on 16 February 2024 and also approved by MC. HAMAG-BICRO as SPFB has signed the Subsidy contract with MA and started with implementation on 1 March 2024. Regarding the A 1.1 SPF scheme management activities, project management team in HAMAG-BICRO prepared documentation for applicants (Guidelines for MSEs as Final Recipients, Subsidy contract for Final Recipients, application package: Small project application form, Small project budget, Joint Statement, De minimis declaration) accompanied by several meetings with Interreg IPA cross-border cooperation program Croatia – Bosnia and Herzegovina – Montenegro 2021 – 2027 Programme bodies. SPFB has also provided the documents and annexes for evaluation of Small Projects and Rules of procedure for Selection Committee members. For preparation of Subsidy contract for Final Recipients, SPFB has used external legal advisory services in order to adjust contract with participating countries in Programme area. The existing web platform has been upgraded and adapted as comprehensive tool for potential applicants and Final Recipients containing all relevant information about the Programme, EmBRACE project, upcoming awareness raising events, all relevant project documentation for micro and small enterprises with detailed instructions how to apply for Small project and reporting instructions about their Small project implementation. Web platform offer possibility for MSEs to register and find partners or offer partnership. Selection Committee has been set up based on proposals for appointment of Selection Committee members by National authorities of each country in Programme area. SPFB initiated 1st meeting of SC members in end of June, but the meeting has been postponed for September. Vehicle has been purchased for project management team in order to enable mobility of team in whole Programme area especially in this period for awareness raising events. Regarding the A 1.2 SPF promotion and dissemination activities, HAMAG-BICRO has provided project visual identity design including design and print of the project logo, project poster, project leaflet, roll ups, PPT template, promo material. Upon approval of the documentation for MSEs by the Program Bodies, SPFB launched 1st call for submission of Small Project proposals on June 18th 2024. Call is opened until September 17th 2024. Short video teaser for 1st call for submission of Small Project proposals has also been created and launched. HAMAG-BICRO started media campaign in the whole Programme area in order to present project itself and to announce 1st call for submission of Small Project proposals. SPFB started with organisation activities for opening conference (July 3rd 2024) and 1st call workshops for micro and small entrepreneurs (MSEs) in days ahead in whole Programme area. Regarding the Work package 2 and activity of contracting and implementation of Small Projects, it hasn’t been started yet. HAMAG-BICRO as Small Project Fund Beneficiary (SPFB) has implemented all activities according to the plan for reporting period 2 (1.7.2024. – 31.10.2024.). Based on the signed Subsidy contract with Managing Authority (MA), this report includes expenditures from 1st July 2024 till 31st October 2024. Regarding the A 1.1 SPF Scheme Management Activities there has been a change in the project team. As of July 1, 2024, Dunja Margeta is no longer the project manager, a new project manager, Kristina Šetka, was appointed on September 16, 2024. The procurement process for IT equipment for the project team has been completed, and on September 9, 2024, a contract was signed for the purchase of computers and computer equipment for the Small Project Fund (SPF) under the Interreg VI-A Programme Croatia-Bosnia and Herzegovina-Montenegro 2021-2027. The IT equipment includes: 5 Lenovo ThinkPad L1 laptops, 5 Lenovo ThinkVision E27q-20 monitors, 5 Lenovo wireless keyboards and mice, 5 Lenovo ThinkPad Universal USB-C Docking Stations, and 5 Lenovo laptop bags. The IT equipment was delivered on October 1, 2024. The first online meeting with the Selection Committee was held on October 28, 2024. First meeting was intended as the constitutive session of the Selection Committee, during which key information and procedures related to the EmBRACE project, as well as the roles and responsibilities of the committee members, were presented. During the meeting, an analysis of the projects submitted under the first call for Small Projects was also presented, along with a timeline for the evaluation process of those applications. After the meeting, the minutes were sent to all members of the selection committee along with the final version of the rules of procedure for approval. Regarding the A 1.2 SPF Promotion and Dissemination Activities the EmBRACE Opening Conference—Enhancing MSEs Sustainable Growth and Competitiveness was held in Split on July 3, 2024, where the planned project activities were presented. Four informative workshops on the EmBRACE project—Enhancing MSEs Sustainable Growth and Competitiveness were held, during which the 1st Call for Small Projects was presented in detail, including the conditions for entrepreneurs' applications, the platform for submitting project proposals, and instructions on how to complete the application form. The informative workshops were held in all three participating countries in the Programme area, in the following order: Mostar, Bosnia and Herzegovina, July 4, 2024 Tuzla, Bosnia and Herzegovina, July 10, 2024 Slavonski Brod, Croatia, July 11, 2024 Podgorica, Montenegro, July 16, 2024 Regarding Work Package 2 and the Activity of Contracting and Implementation of Small Projects the 1st call for submission of Small Project proposals closed on September 17, 2024. A total of 62 project proposals were received, of which one proposal was submitted after the deadline and therefore was not considered for administrative control. The total value of the submitted project proposals (61) amounts to EUR 12,741,529.36, of which the EU contribution is EUR 10,842,396.58 and own contribution EUR 1,911,229.40. The evaluation of project proposals is currently underway.

Project outputs: MSEs supported by grants(EN)
Supported MSEs(EN)
Pilot actions developed jointly and implemented in projects(EN)
Jointly developed solutions(EN)

Thematic information

SME and entrepreneurship

Priority: (VI-A_HR-B-ME_1) Smart investments in research, innovation and competitive entrepreneurship

Priority specific objective: RSO1.3. Enhancing sustainable growth and competitiveness of SMEs and job creation in SMEs, including by productive investments

Priority policy objective (Interreg specific objective): PO1 A more competitive and smarter Europe by promoting innovative and smart economic transformation and regional ICT connectivity

Type of intervention: 010 Research and innovation activities in SMEs, including networking

Partners (1)

Lead Partner: Hrvatska agencija za malo gospodarstvo, inovacije i investicije

Partner’s ID if not PIC: HR25609559342

Department: Development and support of entrepreneurship Unit, Support and Development of Entrepreneurship, Coordination and International Cooperation Sector

Address: Ksaver , 10000 Zagreb, Croatia

Department address: Ksaver, 10000 Zagreb, Croatia

Legal status: public

Organisation type: Business support organisation

Website: https://hamagbicro.hr/

Total budget: EUR 11 764 705.89

Partner’s programme co-financing: EUR 11 539 763.13

Partner’s programme co-financing rate: 98.00%

Partner contribution: EUR 224 942.76

Partners map

Lead partner

Project partner

Summary

Small project

Operation of strategic importance (OSI) or above EUR 5 million

Project name (EN): Enhancing MSEs sustainaBle gRowth And CompEtitiveness

Project acronym: EmBRACE

Project ID: HR-BA-ME00458

Project start date: 2024-03-01

Project end date: 2029-02-28

Project status: ongoing

Relevant linked projects:

The Beneficiary Light Grant Scheme (B Light) which is cooperation's SME development funding scheme specially designed for European Territorial Cooperation (ETC) and Cross-Border Cooperation (CBC) programmes. (EN) | Fostering value added business between SMEs operating on different sides of the Croatia-Bosnia and Herzegovina-Montenegro borders and long-term cooperation. (EN)

Total budget/expenditure: EUR 1 499 618.40

Total EU funding (amount): EUR 1 274 675.64

Total EU funding (co-financing rate): 85.00%

Co-financing sources:

IPA/IPA II/IPA III: Amount, EUR 1 274 675.64. Co-financing rate, 85.00%.

Investments, deliverables, policy contributions

(bullets are inserted automatically and may be incorrectly placed)

Contribution to wider strategies and policies:

EUStrategyDanubeRegion Project activities (grant support to the SMEs) will directly contribute to EUSDR Priority Area 8 (which
aims to support the competitiveness of enterprises in the Danube Region), more specifically to these
main actions of the EUSDR PA8:
- To improve business support to strengthen the capacities of SMEs for cooperation and trade,
- To improve the competitiveness of rural areas and in particular of the agricultural sector,
- To eliminate cross border barriers and bottlenecks to people and business -Seamless Europe
for a livable Danube Region.
Other EUSDR priority areas will also be addressed with above mentioned project activities, such as:
- PA3- Culture, tourism and people to people contacts,
- PA7- To develop the Knowledge Society (research, education and ICT)”,
- PA9- People and Skills.
EUStrategyAdriaticIonianRegion Project activities (grant support to the SMEs) will primarily and directly contribute to EUSAIR Pillar 1
(Blue Growth), especially specific objective: To promote research, innovation and business
opportunities in blue economy sectors, by facilitating the brain circulation between research and
business communities and increasing their networking and clustering capacity.
Other EUSAIR pillars will also be addressed by project activities (direct grant support to the SMEs),
such as EUSAIR Pillar 4 (Sustainable Tourism), with both specific objectives (1) Diversification of the
macro-region’s tourism products and services along with tackling seasonality of inland, coastal and
maritime tourism demand, and (2) Improving the quality and innovation of tourism offer and
enhancing the sustainable and responsible tourism capacities of the tourism actors across the macroregion.
Other Project activities (grant support to the SMEs) will contribute to Economic and Investment Plan for the
Western Balkans, especially: Flagship 9 – investing in the competitiveness of the private sector.
Other Project activities (grant support to the SMEs) will contribute to South East Europe Strategy 2030,
especially Pillar 3.3. Sustainable Growth, since project activities are in line with Pillar 3.3 Key
Strategic actions in Dimension K-“Competitiveness”:
- Develop regional activities to support SME development, including clustering and FDI–SME
linkages
- Regional activities to support greater access to finance
Other Project activities (grant support to the SMEs) will contribute to national strategies, especially:
- Croatian National Development Strategy 2030: Strategic goal 1 (Competitive and innovative
economy), Priority area 2. (Development of entrepreneurship and crafts),
- Development Strategy of the Federation of Bosnia and Herzegovina 2021-2027: Goal 1
(Accelerated Economic Growth) and Goal 3 (Resource Efficient and Sustainable
Development), especially strategic goals: 4.4. Introduction of green economy
- Development strategy for SMEs in Republika Srpska for the period 2021-2027
- Development strategy of micro, small and medium-sized enterprises in Montenegro year
2023-2026.
- Montenegro economic reform programme 2024-2026

Programme Common Output Indicator:

RCO 002 - Enterprises supported by grants, Measurement unit:
RCO 084 - Pilot actions developed jointly and implemented in projects, Measurement unit:
RCO 001 - Enterprises supported (of which: micro, small, medium, large), Measurement unit:
RCO 116 - Jointly developed solutions, Measurement unit:

Programme Common Result Indicator:

RCR 104 - Solutions taken up or up-scaled by organisations, Measurement unit:
RCR 003 - Small and medium-size enterprises (SMEs) introducing product or process innovation, Measurement unit:

Project part of European Union Macro-Regional or Sea Basin Strategy: EUSDR

Project part of European Union Macro-Regional or Sea Basin Strategy: EUSAIR

EUSAIR Priority (Policy) area / Horizontal action:

EUSAIR Degree of compliance:

Information regarding the data in keep.eu on the programme financing this project

Financing programme

2021 - 2027 Interreg VI-A IPA Croatia - Bosnia and Herzegovina - Montenegro

Last month that data in keep.eu was retrieved from the Programme's website or received from the Programme

2025-02-07

No. of projects in keep.eu / Total no. of projects (% of projects in keep.eu)

34 / 34 (100%)

No. of project partnerships in keep.eu / Total no. of project partnerships (% of project partnerships in keep.eu)

143 / 147 (97.28%)

Notes on the data

The end dates of project: - RACE 2 - APOLLO - CODES - SMART STEP are an approximation based on the programme's List of Operations available on the programme's website on 2024 -09-18. There the end date is marked in quarters. Combined total of all projects partnerships (11764705.89) in field total_budget is larger than projects total (1499618.4) of total_budget.

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