Serbia Opens its First “Business-Incubator” Center
Eight small enterprises in the southeastern Serbian municipality of Knjazevac are the first to have the opportunity to get the jump-start they need to become economically viable through an innovative development concept that has just been introduced to Serbia. Thanks to the initiative of the local non-governmental organization (NGO) Timok Club, USAID has joined efforts with the OSCE Mission in Serbia, the Canadian International Development Agency (CIDA) and the Canadian Executive Services Organization (CESO) to open the first Business Incubator Center (BIC) in Knjazevac on May 19.
"We have a number of educated and skillful young people, but not too many job opportunities. We wanted to do something to help entrepreneurs start and develop their business ideas," says Vladimir Jeremic, President of the Timok Club.
The BIC's mission is to provide small enterprises, all of which work within the manufacturing
and production business arenas, with a comprehensive set of services such as business support services, clustering and networking opportunities, strategic guidance from industry experts, and operational space and assistance.
"We have been trying to access the capital to further develop our shoe production, but it is very difficult. Interest rates are too high for us, and the banking terms are very difficult to meet. This was a, once in a lifetime opportunity, for our family to grow our business", says Sladjana Videnovic, owner of the Mona Style company, a shoe manufacturer assisted by the Business
Incubator Center.
A council comprised of representatives of the Knjazevac local government, the Association of Private Entrepreneurs, the National Employment Services, Eksimbank and Commercial Bank,
IMT factory and the Timok Club have all participated in the design of criteria for competition, and followed up with a local competition for acceptance.
By forming a network of similar companies under one roof, enterprise managers enjoy benefits such as lower fixed costs for office space, free Internet access, lower-cost accounting, marketing and public relations services, six months of mentoring and consultations with the Regional Center for Development of Small and Medium Enterprises in Zajecar.
Local fabric manufacturer IMT provided a 1,200 square meter space within its factory. The facility has been configured to provide space for up to 11 small enterprises, a conference room, two smaller meeting rooms, a workshop room and a small kitchen. Future development plan includes an additional 400 square meters and a parking lot.
"New business will significantly contribute to the economic recovery of our municipality. This project not only furthers local economy, but is also building the capacity of entrepreneurs to compete in the modern market economy," notes Gradimir Zikovic, President of Knjazevac municipality.
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| One of Sladjana Videnovic’s daughters stands before a display of shoes by "Mona Style" |
“We wanted to do something to help entrepreneurs,” says Vladimir Jeremic, President of the Timok Club |
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