Advisory support to boost small businesses in Bulgaria
The European Investment Advisory Hub, the EBRD and the European Union (EU) launched today, in Sofia, a new programme to help small and medium-sized enterprises (SMEs) obtain advice for sustainable growth. This initiative is part of the Investment Plan for Europe which focuses on boosting investment to generate jobs and growth by making smarter use of new and existing financial resources, removing obstacles to investment, and providing visibility and technical assistance to investment projects.
The new support to Bulgaria’s small businesses is part of a larger joint effort to provide SMEs in Bulgaria, Greece and Romania with tailored business advice over a three-year period. The programme is provided within the context of the European Investment Advisory Hub, a joint initiative of the European Commission and the European Investment Bank, and funded by the European Union and the EBRD.
Under the programme, over 70 Bulgarian businesses will get access to modern, local and international consultancy services in a wide range of areas such as strategy, trade and export promotion, financial management, resource efficiency and marketing.
Majority locally owned businesses, with a turnover of less than €50 million and fewer than 250 employees can apply for support. Working closely with the EBRD, a company’s first step under the programme is to assess its needs and growth opportunities. The EBRD then connects the firm to a specialised consultant or international adviser who can offer the relevant expertise. The programme also provides training opportunities for businesses and consultants, equipping them with the skills to take their companies further.
European Commission Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness, said: “Sometimes a start-up or small company has a great investment proposal but it needs help to navigate financial management, business strategy or marketing in order to get the project off the ground. With this new programme launched today, small businesses in Bulgaria will have access to tailor-made, local, technical support, which is a major emphasis of the extended and reinforced European Fund for Strategic Investments. I wish to all the small businesses the best of luck with their projects.”
Simon Barnes, Head of Advisory Services, EIB, said: “We are particularly pleased to launch this programme in cooperation with the EBRD in the context of the European Investment Advisory Hub (EIAH). EIAH is a joint EC and EIB initiative and an integral part of the second pillar of the Investment Plan for Europe and provides advisory services for investment projects in the EU. A particular aim of the EIAH is to develop a network of partners, at both local and international level, to offer complementary services by institutions that are best placed and equipped to do so. The cooperation with the EBRD reflects this approach and represents a significant step in meeting unsatisfied demand for advisory support in the SME sector.”
Larisa Manastirli, EBRD Head for Bulgaria, commented: “Professional business advisory services and expertise play a vital role in helping businesses to improve operations, become more competitive and succeed at home and internationally. As such, we are very pleased to be supporting the SME sector in Bulgaria to access advisory services and remain opened to collaborate with all interested institutions. We are very proud to partner in this initiative in Bulgaria with the European Union and the European Investment Advisory Hub, which will strengthen our joint impact on the ground.”
Background information
About the Investment Plan for Europe
The Investment Plan for Europe, known as the “Juncker Plan”, is one of the European Commission’s top priorities. It focuses on boosting investment to generate jobs and growth by making smarter use of new and existing financial resources, removing obstacles to investment, and providing visibility and technical assistance to investment projects.
The European Fund for Strategic Investments (EFSI) is the main pillar of the “Juncker Plan” and provides first loss guarantees, enabling the EIB to invest in more projects that often come with greater risks. EFSI has already yielded tangible results. The projects and agreements approved for financing under EFSI are expected to mobilise more than EUR 250bn in investment and support some 528 000 SMEs in the 28 Member States.
About the European Investment Advisory Hub
The European Investment Advisory Hub (EIAH or the Hub) is one of the elements of the Investment Plan for Europe (IPEU), an initiative by the European Commission and the European Investment Bank that aims to boost investment in strategic projects around Europe to ensure that money reaches the real economy.
The European Investment Advisory Hub offers a single point of entry for advisory services for investment projects in the EU, building on the expertise of the EIB Group, the European Commission, National Promotional Institutions and Member States’ Managing Authorities. The Hub supports projects which may be eligible for financing by the EIB (either under EFSI or otherwise), but the advisory support available under the Hub is not limited to EIB-financed projects.
About the EIB
The European Investment Bank (EIB) is the European Union's bank. The EIB is the long-term lending institution of the EU and is the only bank owned by and representing the interests of the European Union Member States. It makes long-term finance available for sound investments in order to contribute towards EU policy goals. The EIB works closely with other EU institutions to implement EU policy.
As the largest multilateral borrower and lender by volume, the EIB provides finance and expertise for sound and sustainable investment projects which contribute to furthering EU policy objectives. More than 90 per cent of EIB activity is focused on Europe but it also supports the EU's external and development policies.
About the EBRD
The EBRD is a multilateral bank that promotes the development of the private sector and entrepreneurial initiative in 37 economies across three continents. The Bank is owned by 66 countries as well as the EU and the EIB. EBRD investments are aimed at making the economies in its regions competitive, inclusive, well-governed, green, and integrated. The Bank is a leading institutional investor in Bulgaria. To date, the Bank has invested over €3.6 billion in the country, with a record €620 million in 2016 alone. In the years ahead, the Bank will aim to keep its level of investment at around €200 million per year in response to local demand.