Commissioned by

Federal German Ministry for Economic Affairs and Climate Action (BMWK)

Co-financer

Delegation of the European Union to the Republic of North Macedonia

Country

North Macedonia

Runtime

2021 to 2025

Products and expertise

Economic development and employment

Project nameEU for Economic Growth

Project regionNorth-East, Polog, South-West, Prespa (Municipality of Resen)

Commissioned byFederal Ministry for Economic Affairs and Climate Action

Co-funded byDelegation of the European Union to the Republic of North Macedonia

Volume9.750.000 euro

DurationFebruary 2021 to February 2025

Implementing PartnersDeutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and Area Science Park

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The Challenge

The Macedonian market is relatively small and dominated by micro, small and medium enterprises (MSMEs) with rather low competitiveness, innovation capacity and industry specific export potential. Several regions such as Northeast, Polog, Southwest regions and Prespa area (Municipality of Resen) suffer a great disparity with the rest of the country and the brain drain of outwards migration, especially amongst graduates, has a significant negative effect on the economic growth potentials of the regions.

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Capacity Building

The four target regions are facing many difficulties, among which access to new markets, showcasing low entrepreneurial spirit, especially among youth and women, and distinguishing low innovation capacity and technology base (including circular and green technologies).
Active companies in the target areas, with high growth potential, lack systematic and continuous business support on a local or regional level. There is a significant lack of demand and offer of quality advisory services, as well as deficiency of alternative financing sources.
Finally, a lack of skilled and young workforce which is the primary drive of innovation and labor for start-ups is the biggest barrier to growth.

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Commitments

  1. Improving the Business Support Services for Start-ups and SMEs by supporting them to convey best practices in business development through capacity development activities and technical assistance.
  2. Improving business support infrastructure through accelerators and mentorship programs.
  3. Support existing high value-added business initiatives to introduce innovative technology, production methods to increase competitiveness and steer towards green and circular solutions, innovation and IT, and highly competitive/growth potential economic sectors.

Target groups for the project include businesses owned by or with a majority of employed people under 40 years, women and vulnerable groups.

Strengthening the Entrepreneurial Ecosystem

In a first step the entrepreneurial ecosystem of the target regions has been mapped. This allows the identification of the biggest needs of the companies, hence identifying the Business Support Organizations (BSOs) skills.
To correspond to these needs, tailor made trainings are being developed in a catalogue of advanced services, with the support of the implementing partner Area Science Park, to help build the necessary capacities of the BSO’s and support them in delivering these services to the companies in the respective regions, while ensuring transfer of knowledge and best practice to a wider audience to establish common ground and secure consistent support.

Added Values

EU for Economic Growth builds upon the sustainable development goals (SDG 5 – Gender equality; SDG 8 – Decent work and economic growth; SDG 9 – Industry, innovation and infrastructure; SDG 10 – Reduced inequalities; SDG 11 – Sustainable cities and communities; SDG 12 – Responsible consumption and production; SDG 15 – Life on land) and promoting of the values set in the respective chapters of the EU acquis.

INNOVATION AND RESPONSIBLE PRODUCTION

Create new value-added products and services in the field of green and circular economy, innovation, IT, environment and climate friendly technologies.

DECENT WORK AND ECONOMIC GROWTH

Improve the quality, content and capabilities of the business support organizations in the region and create a network of business accelerators that can identify, nurture, and support good ideas into successful and sustainable businesses.
Increase the economic flows within the regions, reducing imports and increasing exports, creating new and higher quality jobs especially amongst the target groups.

SUSTAINABILITY OF COMMUNITIES

Geographic focus on three most under-developed regions of North Macedonia – North-East, Polog, and South-West regions and Prespa area (Municipality of Resen).

GREEN ECONOMY

Promote and support the development and growth of green businesses and the “greening” of businesses.
Develop the support instruments and services that improve processes or products and that address the production, use, or end of life of products in a green and sustainable way

GENDER EQUALITY AND REDUCED INEQUALITIES

Deliver real and meaningful jobs to the under 40s, women, minorities and marginalized and vulnerable groups.
Develop and deliver of women entrepreneurship and women into business programmes.

RURALDEVELOPMENT

Support local agricultural supply chains, value-added agri-processing, and agri-tech, primary producers.
Increase value and improving the offer of rural and adventure tourism and products and sustainable tourism.