Challenge to Change 3.0 ,SERDA

The project is still at an early stage to measure actual progress in terms of expected results partularly in relation to the overall objective and set indicators. However the project team carried out work on all the activities envisioned under this project, mainly focusing on the establishment of the Challenge team, formalizing the cooperation with Enterprise Development Agency (a new partner to SERDA), selection and appointment of the external evaluation committee and most importantly development of the application form and evaluation criteria to promote business ideas that are innovative, promote feasibility and sustainability with a strong focus on social impact. The activities are successfully executed and are considered as expected results. Sticking to the expected results the project team undertook sizable efforts related to promotion, awareness raising, communication aimed at explaining opportunities available through Challenge Fund, criteria and ultimately motivating the private sector actors (SMEs) to apply. During the reporting period two public calls are launched. Applications received during the 1st Public Call underwent 2 tier evaluation and 19 applications are selected as eligible for Challenge fund, and subsequently beneficiary contracts are signed. The 2nd Call of Proposals was published in April 2023 with an application deadline set for 22 May 2023. The evaluation of the received applications under the 2nd Public Call is still underway hence the results will be reported in the next Narrative report. In reflection to the verifiable outcome indicator of 100 business ideas supported through Challenge Fund, it is important to note that project foresees organization and processing of four (4) public calls. Respectively, each Public Call should result in at least 25 beneficiary contracts signed. The results of the 1st Public Call (19) are below this desired target which can be considered as an unexpected result. This is not to say that the results of the remaining three calls will not supersede both indicators; impact (3% increase of sales of new products, processes, or services in BIH) and outcome. The intent was also to attract interested companies from Sweden, however only one company expressed the interest and later in the process withdrew from the program. There is no clear indication why the company decided not to proceed but most likely it can be attributed to lack of desire to deal with administrative proceedings relevant for BiH laws and regulations. The results of first Public Call also indicate that Challenge Fund accelerates and boots investments, as the companies are more likely to procure equipment earlier than planned they opt for better and more expensive technologies than initially intended. This also contributes to gradual transformation towards digital technology. Further, the Challenge fund process also initiated additional benefits to other industries such as consulting services. Companies due to lack of their own capacities are willing to procure these services in order to prepare better applications and increase their chances to benefit from the challenge fund. It is also to be noted that more companies are entering into green transition processes, by introducing energy efficiency measures, green energy sources etc. Beyond, assessments of related to indicators, it would be more important to highlight that 19 successful applicants will be supported with 465.164 EUR and 1.337.704 EUR of private capital will be mobilized. The estimate is that completion of these 19 application will generate 60 new jobs during the period of 10 months and some will be maintained permanently. When it comes to gender a little bit over 20% of applicant or final beneficiaries are women (either owners or General managers).

The overall objective of the project is contribution to the enhanced competitiveness and sustainable socio-economic development in Bosnia and Herzegovina. The project is designed to contribute to more developed and equal opportunity society in Bosnia and Herzegovina. It aims to promote and support improvements through identifying innovative potential in the country and engaging it for social advancements leading towards economic development. The specific objective is to improve risk sharing funding for innovative and/or inclusive businesses. The project will contribute to reduction of unemployment and poverty utilizing innovative and sustainable approach.