Programs. The program is implemented with 390,000 RON, contribution <strong>of</strong> Japan Government.The entire amount <strong>of</strong> <strong>the</strong> program is 13,321 million RON. Next location for future incubatorswas selected <strong>and</strong> will be Brasov <strong>and</strong> Sfantu Gheorghe. The most recently law adopted about BIis <strong>the</strong> GD. Nr.290 / 2006 regarding <strong>the</strong> approval <strong>of</strong> National Strategy for Stimulation <strong>and</strong><strong>Development</strong> <strong>the</strong> National Business Incubator Network.3.3.4. FINANCING <strong>SME</strong>s 18In <strong>the</strong> most cases, Romanian enterprises perceive financing as an important compulsionconcerning <strong>the</strong> start or development <strong>of</strong> <strong>the</strong>ir business. To fight-back this situation, a series <strong>of</strong>measures <strong>and</strong> financing instruments, like communitarian programs <strong>and</strong> credit access, wereelaborated.In <strong>the</strong> period 2000-2006, Euro 16 billion <strong>of</strong> structural funds were allocated for <strong>the</strong>financing <strong>of</strong> <strong>SME</strong>s oriented projects. Approximate a third <strong>of</strong> this amount was allocated for aconsulting <strong>and</strong> a business services, like incubators, networks <strong>and</strong> clusters.It is a significant <strong>and</strong> hard to satisfy dem<strong>and</strong> for financing <strong>SME</strong>s trough credit. Thus, isnecessary to continue <strong>and</strong> supplementary extend <strong>the</strong> present credit lines at which <strong>SME</strong>s areaiming, by using <strong>the</strong> example <strong>of</strong> different financing schemes implemented so far, (especiallythrough MIROBANK, BERD credit line, USAID help for credit <strong>and</strong> Kew credit line). In order tosupport <strong>the</strong> <strong>SME</strong>s for dem<strong>and</strong>ing credits, it is recommended <strong>the</strong> possibility <strong>of</strong> practicingattractive interests credits granted from <strong>the</strong> unemployment insurance budget, by <strong>the</strong> NationalAgency <strong>of</strong> Work Force Occupation (Ministry <strong>of</strong> Work, Social Solidarity <strong>and</strong> Family) as well asgranting such credits for o<strong>the</strong>r categories <strong>of</strong> potential enterprisers that could initiate <strong>and</strong>develop business, as, for example, students.For <strong>the</strong> improvement <strong>of</strong> <strong>SME</strong>s access to financing, <strong>the</strong> following actions will be taken:• The continuance <strong>of</strong> obtaining financial allowances for <strong>SME</strong>s, from <strong>the</strong> state budget <strong>and</strong>external sources, for <strong>the</strong> development <strong>and</strong> implementation <strong>of</strong> multi-annual financinginstrument <strong>of</strong> <strong>the</strong> <strong>SME</strong>s sector at national level (credit <strong>and</strong> granting schemes forsupporting <strong>the</strong> investments <strong>of</strong> start-up firms <strong>and</strong> <strong>of</strong> <strong>the</strong> existing ones, promotion <strong>of</strong>export, investments in priority economic sectors, innovation, transfer <strong>of</strong> technology <strong>and</strong>know-how, sub-contracting);• Promotion <strong>of</strong> Multi-annual Program, with national applicability which corresponds to <strong>the</strong>firms development stage, by: implementing multi - granting schemes; implementingscheme <strong>of</strong> granting associated with; promoting schemes <strong>of</strong> micro-credit;• The continuing <strong>of</strong> apply <strong>the</strong> credit program for <strong>SME</strong>s <strong>and</strong> its monitoring;• Promotion <strong>of</strong> setting-up <strong>and</strong> developing risk capital funds;• The development <strong>of</strong> a permanent system <strong>of</strong> monitoring <strong>and</strong> periodic evaluation <strong>of</strong> <strong>the</strong>way <strong>of</strong> finance use <strong>and</strong> fiscal facilities received by <strong>SME</strong>s;• The efficient promotion <strong>of</strong> present financing programs;• The assurance <strong>of</strong> Romania’s participation - in <strong>the</strong> communitarian programs, - withinFinancial Instruments component <strong>of</strong> <strong>the</strong> Multi-annual Program (2001-2005) for Firms<strong>and</strong> Enterprising, especially for <strong>SME</strong>s, with <strong>the</strong> support <strong>of</strong> EC;• Creating a database with information on financing opportunities for <strong>SME</strong>s, guaranteefunds; commercial banks, risk capital funds;18 This chapter is based on “Financing Opportunities <strong>and</strong> Constrains for Romanian for <strong>SME</strong>s “,Ana Popa, Laura GiurcaVasilescu, Mirela Cristea; University <strong>of</strong> Craiova, Faculty <strong>of</strong> Economics. source:http://www.opf.slu.cz/pb2000/cz/2005/proceedings/2005_p08.pdf52
• The elaboration <strong>of</strong> <strong>the</strong> action plan for improving <strong>the</strong> <strong>SME</strong>s access to financial services, asa part <strong>of</strong> <strong>the</strong> Technical Assistance – Institutional Construction program, financedthrough Pare 2001 program;• The elaboration <strong>of</strong> banking settlements due to encourage <strong>SME</strong>s financing by <strong>the</strong>financial-banking institutions, <strong>the</strong> opening <strong>of</strong> special departments within banks whichcan <strong>of</strong>fer such services.National Credit Guarantee Fund for Small <strong>and</strong> Medium Sized Enterprises –NCGF<strong>SME</strong> has <strong>the</strong> mission to support <strong>the</strong> development <strong>of</strong> <strong>SME</strong>s sector in Romania byfacilitating <strong>the</strong> access <strong>of</strong> <strong>SME</strong>s to financial instruments <strong>of</strong>fered by commercial banks <strong>and</strong> o<strong>the</strong>rfinancing institutions. The Fund <strong>of</strong>fers guarantees to banks for credit, in lei <strong>and</strong> foreigncurrencies, requested by <strong>SME</strong>s in order to finance <strong>the</strong>ir production <strong>and</strong>/or services. NCGF<strong>SME</strong>gives guarantees for maximum 75% <strong>of</strong> <strong>the</strong> value <strong>of</strong> a medium term <strong>and</strong> long term credit, 65%<strong>of</strong> <strong>the</strong> value <strong>of</strong> a short term credit, <strong>and</strong> 80% <strong>of</strong> <strong>the</strong> value <strong>of</strong> credits granted by banks to startups.Until now NCGF<strong>SME</strong> granted guarantees in value <strong>of</strong> 350 billion lei (about 8.8 million EURO)to a number <strong>of</strong> 136 <strong>SME</strong>s.3.3.5. TASKS FOR IMPROVEMENT AND FURTHER DEVELOPMENT OF <strong>SME</strong> SECTOR 19Although improved <strong>and</strong> streamlined in comparison with a couple <strong>of</strong> years ago, <strong>the</strong> taxregime is still perceived as a burden by entrepreneurs, both from <strong>the</strong> perspective <strong>of</strong> <strong>the</strong> taxlevels, <strong>and</strong> from <strong>the</strong> viewpoint <strong>of</strong> <strong>the</strong> procedure for completing tax returns. VAT refundcontinues to be one major issue that is constantly raised by <strong>the</strong> representatives <strong>of</strong> <strong>the</strong> businessenvironment. Despite <strong>the</strong> adoption <strong>of</strong> an Emergency Procedure for VAT refund, <strong>the</strong> situationdoes not seem to have improved since 2002. With <strong>the</strong> adoption <strong>of</strong> <strong>the</strong> Fiscal <strong>and</strong> FiscalProcedure Codes however, essential reform steps have been taken.Whereas commercial banks have started to develop products for <strong>SME</strong>s, <strong>the</strong> o<strong>the</strong>rfinance institutions, such as state/private guarantees, venture capital funds or micr<strong>of</strong>inanceinstitutions are still under developed. There are a significant number <strong>of</strong> financial instrumentsthat private banks are <strong>of</strong>fering to <strong>SME</strong>s, but absence <strong>of</strong> collaterals <strong>and</strong> guarantees seem toimpede <strong>the</strong>ir access to financing. It is important to mention here <strong>the</strong> law on micro financingthat has already been drafted <strong>and</strong> is to be approved in <strong>the</strong> near future, in order to create <strong>the</strong>legal framework. This effort needs to be continued, also regarding <strong>SME</strong> access to funding.There is a considerable gap between <strong>the</strong> needs <strong>of</strong> <strong>the</strong> private sector <strong>and</strong> <strong>the</strong> range <strong>of</strong>advisory services. Sometimes, advisory services are perceived as non-reactive <strong>and</strong> notsufficiently adapted to <strong>the</strong> current development <strong>of</strong> <strong>the</strong> <strong>SME</strong> sector. The results <strong>of</strong> <strong>the</strong> surveycarried out by NA<strong>SME</strong>C in 2005 shows that Romanian <strong>SME</strong>s express little interest in making use<strong>of</strong> advisory services. The main reasons for such a gloom picture might be found into <strong>the</strong> lowquality attributed to <strong>the</strong> services supplied, or to <strong>the</strong> very general low propensity <strong>of</strong> <strong>SME</strong>s toallocating <strong>the</strong>ir scarce financial resources for procuring advisory or training services. If thissector has to growth rapidly, it is evident that public support has to play a crucial role. The aim<strong>of</strong> policy support for business development services is to improve <strong>the</strong> performance <strong>of</strong> <strong>SME</strong>s byresponding to <strong>the</strong>ir operational needs. Therefore, <strong>the</strong> scope for public intervention is tw<strong>of</strong>old. Inone h<strong>and</strong> it has to address <strong>the</strong> lack <strong>of</strong> adequate skills <strong>and</strong> competences within <strong>the</strong> existingproviders, on <strong>the</strong> o<strong>the</strong>r it has to promote a culture within <strong>SME</strong>s for making good use <strong>of</strong>consultancy <strong>and</strong> training services.Concerning <strong>the</strong> development <strong>of</strong> business incubators, <strong>the</strong> Government has beenunsuccessful in promoting this good practice, <strong>and</strong> consequently <strong>the</strong> awareness <strong>of</strong> this business19 This chapter is based on Enterprise Policy Performance Assessment, 2005.53
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The privatization process of object
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13.Cabinet Provision on “Distribu
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Table. 32.Ease of businessDoingBusi
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Technology Foresight in Greece 2001
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Greek VC market started to develop
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individuals, rather than well struc
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7. SUGGESTIONS FOR THE SME DEVELOPM
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Annex 1.MAP OF THE BLACK SEA COUNTR
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17-18 June 2005 1 st Moscow Interna
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ARMENIASTRENGTHS• Application of
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In compliance with the Resolution m
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1. Please provide definition of SME
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11. Do you have any suggestions for