Small Business Act, 2nd phase, EDA

Assistance for operationalisation and implementation of strategies and policies In terms of this action and the expected results the project team continued with holding operational meetings with respective stakeholders BiH Ministry for Foreign Trade and Economic Relations (MOFTER), RS Ministry for Economy and Entrepreneurship (MEE), Federal Ministry for Development, Entrepreneurship and Craft (FMDEC) and Brcko District Department for Economic Planning (DfED) and supported the preparation of 3 three-year action plans (FBiH, RS and BD BiH), 4 annual plans (BiH, FBiH, RS and BD BiH) with budgets. During the same period the project team facilitated preparation of 2 Calls for Proposal - one related to introduction of technical, environmental and EE standards in SMEs in BiH and the other for expression of interests of SMEs for technical support in the field of Energy Efficiency and Energy Management. The RS MEE submitted a request to the project team to provide assistance in planning improvements of Calls for Proposals and incentives for SMEs and entrepreneurs. In response the project team complied with the request and supported the respective ministry in these areas. The project team also through 2 sub-projects continued piloting SME Innovation Voucher Scheme that were regularly monitored and successfully completed. In addition, 1 sub-project on Improving information support to internationalization of SMEs regularly monitored and successfully completed and 1 sub-project piloting Energy Transition in Industry in BiH ETI4BiH was regularly monitored while 1 Call for Cooperation was sent directly to Foreign Trade Commerce, Introduction of technical, environmental and EE standards in SMEs in BiH) and contracted. Assistance for monitoring, evaluation, learning and reporting Expected results are related to continued support towards development of a number of indicators for SME Development Strategies and Action plans for innovation that led to the improvement of relevant documents. Indicators from SBA framework and SME Development Strategies are now integrated into a digital platform for monitoring and reporting in cooperation with GiZ. Under SIEM representatives from partners institutions (MOFTER, Federal Institute for Development Programming and RS MEE) learned new methods and tools for MEL (Monitoring, Evaluation and Learning). One of the unexpected results is related to the request from ministries from both entities as well as MoFTER to help them in preparation of annual reports and information on SME development. Assistance for revision/updating, planning and design of strategies, plans and policies The unexpected result is that final adoption of Strategic Guidelines by BiH Council of Ministers is still pending, despite the fact that project has provided assistance and worked very closely with the respective RS ministry to address all the concerns. This remains an issue and it is less and less likely that this will be achieved. In alternative, the strategic guidlines although not adopted on the state level are full integrated in the entity and BD respective development strategies. To that end, expected result is related to teams efforts towards finalization of the SME Development Strategy for FBIH. However the unexpected result is there are still disagreements between the team and newly appointed adviser to FBIH Minister for Development Entrepreneurship and Craft. Assistance for harmonisation of policies and instrument As expected project team continued to apply top-down and bottom -up approach in harmonization efforts and in support from SIEM fund. In terms of deliveries 2 Evaluation reports (for the RS Women Entrepreneurship Strategy, the RS Action Plan for SME Innovation) and key elements for the Brcko District SME Innovation plan were finalized, (Re)design of the RS Women Entrepreneurship Strategy for the period after 2023 and RS and BD BiH Action Plans for SME Innovation 2024-2027 and Key elements for M&E of the Action plans for SME Innovation were defined and included in the documents. When it comes to Public Procurement Strategy in BiH 2024-2028 project supported activities that enable better participation and proper monitoring of SMEs in public procurement market in BiH in accordance with recommendations from the SMEPI report. Further, the team supported implementation of two harmonized policies from the Strategic Guidelines (SME internationalization policy in the form of improving information support for export-oriented enterprises, and Introduction of technical, environmental and EE standards in export-oriented SMEs) and a measure related to SME Energy Transition and networking of SMEs that is incorporated in SME development strategies in RS, FBiH and BD BiH. Assistance for Public Private Dialogue (PPD) and strategic coordination Activities such as organization of workshops and meetings of respective working groups were carried out under this component which are all expected results. To name some : - RS MEE was supported to organise Consultation on the incentives for companies and entrepreneurs with around 80 representatives of companies, development agencies, municipalities, universities, business associations and other organizations, consultation processes for preparation of Action plans for SME innovation 2024-2027 in RS and BD BiH, coordination of public discussion on the draft of the SME Development Strategy in FBiH 2022-2028. Assistance for coordination with donors Project continues to exercise good coordination with other donor funded initiatives in particular GiZ, UNDP, SDC mainly to avoid overlaps and reinforce each others efforts, as expected.

The overall objective of this intervention is to support institutions in Bosnia and Herzegovina (BiH) to accelerate economic integration with the EU in the field of Small and Medium Enterprises (SMEs) strategic and policy framework, higher impact on performance of SMEs in the country. The specific objective of the intervention is fully functional and sustainable system of SME development management in BiH based on Small Business Act (SBA) framework and Building Back Better approach ensuring continuous improvements of policies at all stages of policy development (planning and design, implementation, monitoring and evaluation, reporting and revising).  The intervention will target key: - Ministries/respective departments responsible for development, implementation, M&E of SME related strategies and policies, - Related ministries, educational institutions, institutes, development agencies and Civil Society Organizations (CSOs) active in the field of SME and Entrepreneurship development,  - Formal Private-Public Dialogue Promoting Structures for SME and Entrepreneurship (SME development councils, Economic councils)and Business Associations - Export - oriented and innovative SMEs, Women and Entrepreneurs Through implementation of proposed activities the project will aim to achieve following results:  - Introduced new instruments with appropriate capacities built to improve operationalisation and implementation of strategies and policies for SME competitiveness/innovation and Entrepreneurship development - Introduced new instruments with appropriate capacities built to improve monitoring, learning and reporting processes and effects related to SME development strategies, policies and SBA implementation, including capacity building/preparation for evaluation - Introduced new instruments and structures to improve revision/ updating/planning/design of SME and Entrepreneurship related strategies, plans and policies with its integration into overall strategic and operational planning around the country - Improved harmonisation of policies and coordination of strategies for SME and Entrepreneurship development - Improved coordination of SME-related ministries with the Delegation of the European Union in Bosnia and Herzegovina (EUD) and other donors and increased support to SME and Entrepreneurship development from both sides