Challenge to Change 3.0, SERDA

During the second year of implementation, "System of support to innovative changes with risk sharing fund upgrade" the Challenge team and the External Evaluation Committee were re-established as independent bodies and standard operating procedures were updated and applied in project web-platform during earlier reporting period. Based on these activities as expected Challenge team daily worked on the implementation of the project i.e. first stage evaluation of project proposals from the 2nd and 3rd Call for Proposals (CfPs). External Evaluation during the reporting period conducted evaluations as per respective CfPs (35 proposals - 19 were approved - Second Call and 29 proposals - 19 approved - Third Call). In line with requirements Challenge Team conducted field visits and verification procedures. In relation to these activities, Challenge Team continued to work on improved access and user friendly dissemination of information and application procedures. Within these actions , web platform was improved. The Challenge to Change project web services are rather frequented however the high number of 13 000 registered visitors is unexpected result with an equal representation for different geographical areas within the country. On Result 2 "Innovation potential in SMEs stimulated for active participation in Challenge 3.0" during the reporting period Challenge Team organized during this reporting period and 14 info sessions (out of 26) aimed at providing information and provide trainings for future applicants. Two award ceremonies out of 4 planned were organized for grantees form 1st and 2nd CfP. In order to highlight success stories, the project was expected to publish at least 10 successful stories for the duration of entire project. In this reporting period 6 successful stories are published. Result 3 is the core of the Challenge to Change project dealing with Grant Scheme Implementation. Specifically, 19 grant beneficiaries were completed during the previous reporting period while during this reporting period site visits were conducted and no irregularities were identified. Second Public Call was carried out in the previous reporting period and 302 applications were submitted. The evaluation process was conducted and out of 302 applications 35 were selected for further assessment. The second phase of evaluation resulted in 19 applications as eligible for site visit to carry out the verification of information submitted in the application. Considering that verification procedure was successful all 19 applicants signed a contract. The total amount of grants for this call is 474,572 EUR with an overall contribution amounting to 831.149 resulting in 1.305.721 EUR is investment. It is estimated that 60 new jobs were created with a average project duration of 10,2 months. The aim is that these many of these jobs will be retained in the following period. The contribution of owners of business entities for the implementation of respective projects is over 63%. Similarly Third Public Call was launched in mid/ November 2023, 278 applications were received and following the required procedures when it comes to evaluation 19 applications were successful as eligible for grant. However in the process of verification and due to some restrictions on the side of potential grantees 12 contracts are signed and it is anticipated that additional 5 will be signed during the next reporting period (total 17 applications). In case all anticipated grant agreements are signed the overall contribution is 593.771 EUR with a a total value of projects is 1.020.236 EUR. It is anticipated that 34 new jobs will be created while the contribution of business entities for the implementation of their projects is 58,2%. The 4th Public Call is launched in late May 2024 and as of July 1st 196 applications were submitted online, the results of this proposal will be evaluated in the next reporting period. As expected, geographical distribution of the project is assessed that there is an even distribution across the country with higher presence around traditional industrial areas - middle parts of Bosnia and Herzegovina. The trends indicate that most awarded applications are in agriculture and food processing following by the IT industry.

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.