The Organization for the Development of  Small and Medium Enterprise Sector, created on May 17, 2007 at the initiative of the Ministry of Economy and Infrastructure to support the development of the SME sector, is the main institution for implementing national support programmes and the first point of reference for every entrepreneur from Moldova. The results achieved during its 14 years of activity and the impact of entrepreneurial support tools in the economy of the Republic of Moldova have been presented today at a press conference with the participation of the Ministry of Economy and Infrastructure and the representatives of major international donor organizations, ODIMM partners.

Iulia Costin, the CEO, emphasized the fact that over the years, ODIMM has become an ambassador of the business environment, contributing to the development of the entrepreneurial eco-system in the Republic of Moldova. Thus, during 14 years of activity, over 150,000 people have benefited from ODIMM services, of which, at least 110,000 citizens have received business advice, 38,000 companies have been trained, 4,500 companies have received financing in the overall amount of over 665 million lei, which generated investments in the national economy of about 2 billion lei and created approximately 11,000 jobs.

“Throughout its activity, ODIMM has evolved by completing its portfolio with new products and services for the SME sector from the Republic of Moldova. With our help, companies manage to reduce operating costs, minimize business risks, add value to their brands, generate new sources of income and become competitive on the local market and various foreign markets. The organization currently manages 12 Business Support Programmes, most of which provide training, funding and mentoring. ODIMM is present in all regions of Moldova, from North to South, providing SMEs with 11 Business Incubators for assisting start-ups, 3 clusters for strengthening relationships between regional actors, and a network of consulting centers, in addition to the district councils. Multifunctional Industrial Platforms to support local producers are in the process of  being established too”.

According to Iulia Costin, the CEO, during 2021, ODIMM will launch, with the support of the Government and external development partners, 7 new business support programmes that will increase the competitiveness of SMEs, offer entrepreneurs in difficult situtions opportunities to relaunch their business (second chance), develop rural tourism, boost technology transfer between universities and private sector, and, the last but not least, encourage the establishment of social enterprises.

During the press conference, Mihail Lupașcu, the Minister of Economy and Infrastructure (MEI), has specified the active interconnection between the business environment, government policies related to SME sector and their successful implementation by ODIMM.

“During 14 years of activity, ODIMM has become the most important support institution for small and medium enterprises, providing consulting, support and training services to young people and women with business ideas, migrants who returned home, companies with growth and export potential, and other people interested in business. MEI and ODIMM will go on assisting entrepreneurs by the help of existing tools, will launch new support initiatives and continue to innovate in everything they do in order to meet the current needs of entrepreneurs”, said Mihail Lupașcu. At the same time, the MEI official stated the importance of EU support through the opportunities offered by the Association and Free Trade Agreement for the SME sector.

The outcomes achieved by ODIMM are due to the support received from the state and from the main international donor organizations.

The European Union is a trustworthy partner of ODIMM, which has contributed as through expertise and technical assistance so through financial aid for entrepreneurs in the regions, as well as through the development of business support infrastructure and digital transformation of companies. The support offered by the European Union for developing SME sector and strengthening ODIMM capacity amounts to over 17 million Euros over the years.

Boris Filipov, the Manager  of the Programme „Economic Development and Market Opportunities” within the Delegation of the European Union to the Republic of Moldova, congratulated the team of ODIMM for their efforts to develop the SME sector in Moldova. 

“ODIMM has always been close to entrepreneurs, implementing relevant support programmes, offering grants and business solutions. The EU has been supporting the SME sector in Moldova for many years, as it believes in the potential of this sector to contribute significantly to the national socio-economic development and to take advantage of the opportunities offered by the Association Agreement. At the moment there are about 30 local and bilateral EU programmes and projects that can benefit small and medium enterprises in Moldova”.

At the same time, Boris Filipov assured that the European Union, in its post-2020 programme, will continue to support the SME sector, in which greening economy and digital transformation will be among the main priorities. Finally, he expressed his belief that ODIMM will make even more efforts in the future to help SMEs grow in order to be more resilient and better prepared for prospective challenges.

Thomas Foerch, the Manager of the Project "Advising the Government of the Republic of Moldova on Economic Policies", German Agency for International Cooperation (GIZ), specified the role of ODIMM in growing entrepreneurial culture, digital transformation and connecting Moldovan enterprises to regional and international value chains.

Dominika Stojanoska, the UN Women Moldova Country Representative, expressed appreciation for the partnership and fruitful cooperation with ODIMM in empowering women and promoting gender equality in the Republic of Moldova.

Tarik Sahovic, Senior Private Sector Specialist on behalf of the World Bank Group highlighted the importance of supporting and strengthening the institutional capacity of ODIMM in implementing the development strategy of  SME sector in the Republic of Moldova, elaborating the most important financial tool for SMEs - Credit Guarantee Fund for SMEs, managed by ODIMM, as well as the mechanism for SMEs internationalization.

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In the near future ODIMM will propose a new credit guarantee mechanism for small and medium enterprises in the Republic of Moldova, through the Credit Guarantee Fund (СGF). The concept of this initiative has been discussed today, July 27, 2021, during a workshop with the experts in the field and the representatives of commercial banks. The implementation of this mechanism will increase the guarantee ceiling by minimum 1 billion lei, which will be reimbursed by the financial and banking institutions within a period of maximum 2 years. Hence, the loans requested by SMEs from commercial banks will contain the guarantee in the credit product, and the entrepreneurs will no longer have to submit guarantee applications and pay commissions. The concept of the credit guarantee mechanism has been conceived by the consulting company LANDT, specialized in developing and managing guarantee funds, in collaboration with ODIMM specialists. The accomplishment of this project will be possible with the support of the Development Facility of the European Fund for South-East Europe (EFSE DF).

„In the context of reviving the activity of SMEs affected by the pandemic crisis, the launch of the new credit guarantee mechanism is vital and timely. This financial tool will be adjusted to the needs of banking institutions and become attractive to entrepreneurs. We appreciate the support of the Development Facility of the European Fund for South-East Europe and the openness of banking institutions’ representatives to a productive dialogue. MEI and ODIMM will continue to develop and adjust all entrepreneurial support tools, taking into account both the market needs and realities and the wishes of partners from the banking sector, " said Lilia Palii, Secretary General of the Ministry of Economy and Infrastructure.

Iulia Costin, the General Manager of ODIMM, has highlighted that, through this innovative initiative, the guarantee mechanism used by the Credit Guarantee Fund will move to a new stage of development.

"The relationships, built over the years with the banking institutions from the country in implementing programs and support tools, allow us to say that this sector is ready to implement the mechanism. Lately, we have witnessed major changes in the banking field, which has become more careful, secure and transparent, and, at the same time, it is open to new tools and customer-oriented. Moreover, we appreciate the support of the Ministry of Economy and Infrastructure, Ministry of Finance, National Bank and EFSE DF in the process of elaborating this mechanism, which is a natural stage of developing a guarantee fund in a market economy ”.

The representatives of financial institutions welcomed ODIMM’s initiative, showing their openness to continuing partnership relationships and strengthening efforts to enhance access to finance for SMEs.

The new mechanism is being developed as a result of an increased demand for individual guarantees offered by the ODIMM Credit Guarantee Fund.

In 2021 the number of requests from economic agents for granting state guarantees is 10 times higher than in the same period of the previous year, which proves that this tool is vital on the credit market. Thus, during this year, ODIMM has issued 282 new financial guarantees of 231.9 million lei, which facilitated the disbursement of loans in the amount of 592 million lei, and the value of investment projects related to these transactions being 678 million lei.

The CGF is the only credit guarantee fund in the Republic of Moldova that has the mission to ensure access to finance for domestic enterprises by issuing financial guarantees.

So far, through the CGF, 779 guarantees have been issued in the amount of 451 million lei, which have facilitated the disbursement of loans of 1.24 billion lei and have generated investments in the economy over 1.58 billion lei.

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58 businesses initiated by migrants or their first degree relatives will benefit from a non-reimbursable financial support of up to 250 thousand lei through the Program of Attracting Remittances to the Economy “PARE 1 + 1”, managed by ODIMM. The business owners have signed today, June 22, online, non-reimbursable financing contracts in the total amount of 14 million lei. According to estimates, the implementation of investment projects will lead to creating about 145 new jobs, and the cumulative investments in the national economy will account for about 35 million lei.

At the beginning of the event, the Secretary-General of the Ministry of Economy and Infrastructure, Lilia Palii, stated that the small and medium enterprise sector is one of the basic pillars of the economy of the Republic of Moldova and is expressed as a key priority in the Government's activity programmes and in the national strategic planning documents, especially the National Development Strategy "Moldova 2030".

"Applying to the programme you have shown perseverance and courage. We appreciate your attempt to develop your businesses and I believe that the remittances attracted and supported by the financial assistance provided by the Government and development partners will facilitate the creation of a better future at home. I advise you to consider challenges as opportunities, and I wish that your businesses become a passion. ODIMM team is always ready to support you in accomplishing your mission as entrepreneurs ", mentioned Lilia Palii.

 Emilia Cojocaru, the interim CEO of ODIMM, encouraged the new beneficiaries of the programme to be inventive and always look for new opportunities to succeed in developing their businesses.

“We are happy to know that migrants from the Republic of Moldova are eager to return home and to develop their entrepreneurial potential, thus ensuring a constant source of income. We encourage them not to stop here, to expand, to be informed, to create innovative businesses in order to meet customers’ needs”.

The companies benefiting from financing will develop businesses in 24 districts of the republic. They will act in such areas as: rowing cereals and berries, cultivating vegetables in greenhouses, processing walnuts and lavender, accommodation and public catering, health and social assistance, manufacturing clothes, producing herbal teas, processing wood, manufacturing polystyrene products, processing and packaging dried fruit.

Of the total number of companies accepted for financing, 78% operate in rural areas and 22% operate in Chisinau municipality. Hence, there are 12 companies in Chisinau municipality, 6 - in ATU Gagauzia, by 4 companies are located in Cantemir and Ialoveni districts, by 3 enterprises act in Orhei, Calarasi and Hincesti, by 2 companies activate in Straseni, Nisporeni, Ungheni, Telenesti, Causeni and Cimișlia districts, and by one enterprise will develop its activity in the districts: Anenii Noi, Singerei, Glodeni, Floresti, Riscani, Dubasari, Cahul, Ocnita, Rezina, Criuleni and Balti.

The 58 entrepreneurs will contribute with their own investments, according to the rule 1 + 1, from the money earned in 12 countries: Italy, Great Britain, Russia, France, Germany, Romania, Israel, USA, Ireland, Iceland, Greece and Spain.

Out of the total number of applications for funding, 34 businesses (59%) are created by migrant workers and 24 enterprises (41%) are set up by the migrants’ first-degree relatives, 18 businesses (31%) are opened by women, and 29 businesses (50%) are created and managed by young people.

The programme PARE 1 + 1 aims at mobilizing the human and financial resources of the citizens from the Republic of Moldova working abroad for the sustainable economic development of our country by stimulating the establishment and development of small and medium enterprises. The programme operates under the "1 + 1" rule, so that each leu invested from remittances will be supplemented by one leu in the form of a grant under this Programme. Beneficiaries of grants may be citizens of the Republic of Moldova, working abroad, beneficiaries of remittances and their first-degree relatives.

During the Programme PARE 1 + 1, the access to financing was facilitated for 1757 enterprises, which invested in economy over 1 billion lei, of which 368 million lei constitute the sum of the grants transferred within the Programme. Thus, each granted lei generates about 3 lei of investments in the economy.

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The creation and development of social enterprises in the Republic of Moldova will be supported by the state through a Financing and Mentoring Programme for Social Enterprises, which will be implemented by the Organization for the Development of Small and Medium Enterprise Sector (ODIMM). The initiative was presented by Iulia Costin, the CEO, during the workshop "The Vision of the Republic of Moldova on the Development of Social Entrepreneurship", organized online by the Foundation "Together with You", Romania in partnership with the Ministry of Economy and Infrastructure of the Republic of Moldova (MEI), the Organization for the Development of Small and Medium Enterprise Sector, GIZ Moldova, the Academy of Public Administration of the Republic of Moldova and the Foundation „Chernobyl Echo”.

The new support tool that ODIMM is working on together with the Ministry of Economy and Infrastructure and development partners, aims at assisting the development of over 100 social enterprises, especially in rural areas and employing about 30% of people from socially vulnerable groups. The initiative has a well-defined social goal, a mission which aim is to make a beneficial impact on people, environment and community.

"This will be a programme through which we want to create a more inclusive society, using business tools to solve social problems. Social entrepreneurship is a predictable economic activity and source, which can directly contribute to increasing human dignity, and the new entrepreneurial support tool will be a part of a complex stage of developing social economy and social entrepreneurship in the Republic of Moldova”, said Iulia Costin.

The event was attented by the Secretary-General of the Ministry of Economy and Infrastructure, Lilia Palii, who highlighted that, in order to increase the level of interest in social entrepreneurship, MEI is fully involved in designing and promoting the new National Programme for Social Entrepreneurship Development in Moldova, which will encompass an action plan for developing social entrepreneurship within 2021-2025. The programme is in its final stage following the proposals submitted by the line ministries.

"Social entrepreneurship is a type of business, which aims not only to maximize profits, but also to increase the well-being of society. The profit of enterprises involved in social entrepreneurship is reinvested in order to support a social cause, identify new social needs, encourage the inclusion of disabled people into society, provide employment and use alternative resources. We are sure that the unification and synchronization of the actions undertaken by the Government of the Republic of Moldova and the development partners will help us achieve great results in growing a sustainable and inclusive economy, as well as a higher degree of social responsibility, especially of entrepreneurs, and of the whole society", said Lilia Palii.

 Angela Achiței, the President of the Foundation “Together with you”, Romania, stated that the Republic of Moldova is the first country in the eastern area, which has both specific legislation and a well-defined vision for the next 5 years on creating a favorable environment for developing social entrepreneurship.

"Social entrepreneurship is a new trend in the world of developing sustainable businesses in which no one is left behind. The Republic of Moldova has aligned to this European trend and has taken accelerated steps in developing the social entrepreneurship sector. The Ministry of Economy and Infrastructure has assumed the role of line ministry, responsible for this field, and has designed the National Programme for the Development of Social Entrepreneurship for 2021-2025. The designation of ODIMM for the implementation of the Financing and Mentoring Programme for Social Enterprises, will create the necessary infrastructure for the investments that will be made from public funds at the beginning, but in the future are most likely to be completed with European funds too".

The workshop was attended by the representatives of public authorities, academic environment, social entrepreneurs and specialists in social economy, coming with suggestions and recommendations for shaping the new economic sector in the Republic of Moldova, which will contribute to the development of social entrepreneurship and environmentally friendly companies.

Social entrepreneurship contributes to increasing social inclusion, creating jobs, involving people from disadvantaged groups in economic activities and facilitating their access to social resources and services. In the Republic of Moldova, social entrepreneurship and social enterprise were recognized in 2017, by adopting the Law no. 223 of 2017 as per amending and supplementing some legislative acts. In 2018 the Regulation on the organization and functioning of the National Commission for Social Entrepreneurship was elaborated and approved, as well as the list of types of activity that constitute social entrepreneurship activities. Currently, three social enterprises and 48 social entrepreneurship initiatives are registered in the Republic of Moldova.

According to statistic data, the social economy in Europe covers over 14.5 million paid employees, which accounts for about 6.5% of the able-bodied population, and about one out of four start-ups would be a social enterprise.

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Today the first 13 companies from the Republic of Moldova have signed non-reimbursable financing contracts with the Organization for the Development of Small and Medium Enterprise Sector through the National Greening Programme for SMEs. They will benefit from up to 200 thousand lei for implementing business greening actions, which constitute up to 70% of the amount of the investment project. The signing of contracts has been done by electronic signature within an online event.

The event was attented by the Secretary-General of the Ministry of Economy and Infrastructure, Lilia Palii, who mentioned that the institution she represents supports those entrepreneurs from the country who wish to reduce the impact of economic activity on the environment and provide ecological services.

"Reducing the environmental impact of businesses, and of SMEs in particular, is a key success factor in greening the economy. Improving environmental performance is also a significant business opportunity for SMEs as major suppliers of goods and services. At the same time, the application of sustainable production and consumption patterns will contribute to the efficient use of resources, export promotion and the creation of new jobs.”

Iulia Costin, the CEO of ODIMM, congratulated the entrepreneurs who had the courage and perseverance to come up with new approaches in business management.

“We are glad that there is an increased interest of the business environment from the Republic of Moldova for modernizing production processes/service provision, thus raising the level of competitiveness. The support provided will help companies position themselves on a new stage of development and will serve as models for promoting good local practices on reducing the impact of economic activity on the environment.”

The amount of non-reimbursable financing offered by the state to the 13 businesses through the Greening Programme for SMEs will account for 2.1 million lei. The total value of investments for the implementation of greening actions assumed by these companies is about 4 million lei. Investment projects selected for funding aim at adopting environmentally sound practices in the fields of responsible use of energy and resources along the value chain, as well as raw material management, waste recycling and waste reuse.

The greening actions proposed by the companies aim at: replacing the conventional energy source by installing photovoltaic panels; reducing energy consumption by implementing thermal recovery systems; transforming organic waste into high quality proteins for fishery and livestock sector; managing water resources by installing treatment plants; introducing equipment that enables the recycling of textile waste from raw materials; recycling waste resulting from the filtration of cold pressed oils and using it in cosmetology; recycling waste resulting from the restoration of tires and manufacturing pavements, curbs, etc.

The Greening Programme of SMEs was approved by the Government of the Republic of Moldova, GD no. 592 of November 27, 2019, with a pilot period of 36 months, being implemented by ODIMM in collaboration with the Ministry of Economy and Infrastructure. Through this Programme SMEs can benefit from: a) training and education in the field of greening SMEs; b) low non-reimbursable financing of up to 200,000 lei, which will account for up to 70% of the value of the investment project; c) high non-reimbursable financing of up to 500,000 lei, which will constitute up to 50% of the investment project value. Companies interested in this Programme can apply by filling out the form https://odimm.md/en/ecoimm 

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Today is the 3rd day of  B2B online meetings between the companies from the Republic of Moldova and Germany within the event "SEMINAR SOURCING".

During the seminar Moldovan companies had the opportunity to learn from the first source about the current trends and requirements for initiating and establishing cooperation with German companies.

In her opening speech, Iulia Costin, the Chief Executive Officer of ODIMM, emphasised the support provided by the business assistance institution for domestic companies in developing their own capacities and entering foreign markets.

“ODIMM has in its portfolio many support tools meant to assist the companies from the Republic of Moldova in the process of internationalization, greening, and digitalization, and to encourage them to participate in local and international exhibitions/fairs. At the same time, we are currently working with GIZ Moldova on designing the online platform "Bisiness Link", which will facilitate the promotion of domestic products and services and will help Moldovan companies find new partners on the local and foreign markets,” said Iulia Costin.

Tomas Foerch, the Manager of the Project "Advising the Government of the Republic of Moldova on Economic Policies", stated the importance of facilitating business cooperation and developing value chains in Moldova, appreciating cooperation in organizing such events, which might strengthen communication and encourage business partnerships.

Following the event, more than 50 B2B meetings were held between the representatives of domestic companies and the representatives of German companies in order to present their services and products and to establish potential cooperation.

 It is worth mentioning that both the event and bilateral meetings were organized and assisted by the Organization for the Development of Small and Medium Enterprise Sector (ODIMM) in partnership with the Association for Supply Chain Management, Procurement and Logistics in Germany (BME), with the support of the project "Advising the Government of the Republic of Moldova on economic policies", implemented by GIZ Moldova with the financial support of the Government of Germany and the Government of Switzerland.

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