Although Kosovo’s economic performance over the past decade has been robust, it was mainly driven by a strong local demand, high capital spending by the Government of Kosovo, solid credit growth as well as remittances sent by the Diaspora. These growth factors are short term and do not contribute to sustainable economic growth and job creation. Because of these factors, unemployment is estimated at more than 40 % of the total workforce and 70 % for youngsters aged 15 to 25.

To contribute to global competitiveness of Kosovo’s SMEs in line with sustainable development principles in order to reduce poverty.

The main target group of this project will be the enter-prises that have a potential to grow and generate employment. By the end of 2012, there were 120’000 companies registered in Kosovo out of which only 1900 are considered SMEs employing between 10-200 employees. Only 59 companies registered belong to large enterprises employing more than 200 employees. The majority of Kosovar companies belong to the group of micro enterprises (98% of all companies registered in Kosovo). Most of these companies are family businesses focused in the trade sector (almost 90 %) employing not more than 9 persons.

The business environment for SMEs in Kosovo has improved as a result of extended access to finance and professionalized business development services with special emphasis on the creation of opportunities for the poor – men and women, youth, and minorities.

Expected results:  

1: The SMEs’ Support Agency provides effective support to SMEs / the private sector through the implementation of the SME Strategy.

2: A Voucher Counselling Scheme to assist prospective and existing SMEs with consulting and training services offered by local business service providers is in place and functioning.

3: A mechanism for a Credit Guarantee Scheme has been established and local SMEs benefit from improved access to finance.

The SDC funds will be earmarked mainly for supporting the project’s first output, but it will also contribute to some activities of the second output mainly related to the capacity development of the Business Consulting Council.

Results from previous phases:  

During the inception phase the project delivered following outputs:

1. A roadmap on the capacity building of the SMEs’ Support Agency is available and endorsed by the respective government bodies.

2. A feasibility study on SME Voucher Counselling Scheme was developed.

3. A feasibility study on establishing a Credit Guar-antee Scheme was developed and communicated to the stakeholders.

GoK (Ministry of Trade and Industry), Business Mem­bership Organisations, and business service provid­ers.

The SMEs’ Support Agency together with project team will take a lead in coordinating the donor activities in the related areas. The project coordinates with other donors in the field, and joint efforts are foreseen for creating a Credit Guarantee Scheme with SECO, USAID, KfW, UNDP, and EU office in Kosovo.

Phase 1 15.06.2012 - 31.03.2016   (Completed)