EU earmarks 8 million euros for SMEs from the Republic of Moldova
The European Union allocated 8 million euros in non-reimbursable co-financing for seven state programs to directly support entrepreneurship, implemented by the Organization for Entrepreneurship Development (ODA). A grant contract to this effect between the EU and the Republic of Moldova was signed on Wednesday, May 24, in Chisinau.
This funding will contribute to the improvement of the investment climate, the easier integration of people into the labor market and the creation of a favorable business environment for SMEs. The project will focus on rural localities, where there is a very high growth potential.
"The multitude of risks that the Republic of Moldova is facing today will be managed through appropriate tools and specific interventions where necessary to support the business environment. And this is only possible through dialogue with entrepreneurs and our development partners. Because we cannot afford to grow at a modest rate. In the Republic of Moldova, we need accelerated economic growth to overcome these transition problems. We need to turn the page and to move forward towards the EU, and our entrepreneurs chose this direction long ago. However, in the last 15 years, the Republic of Moldova has gone through a tectonic transformation, reorienting its trade from the CIS countries to the EU countries", said the Minister of Economy, Dumitru Alaiba.
“We do this in recognition of the important role SMEs play in social and economic development. SMEs create new jobs, bring innovation, adapt more easily to emerging challenges. Their support is of common interest and we do this not only in the member states, partner countries, but also in candidate states such as the Republic of Moldova. It is about the development of our economic partnership because already almost 2/3 of Moldova's exports go to the European Union and this is an area in which SMEs can have an even greater role in the future", said the EU Ambassador in Chisinau Janis Mazeiks.
According to him, through this new program 50 thousand entrepreneurs will be supported through loans at very good conditions, grants, but also through consulting services. "The new project will increase the coverage of SMEs through 7 national programs, which means that more enterprises and especially in rural areas and women-led businesses will benefit from grants and consulting services. We believe that this new financial package of the EU will have a very big impact on the SME sector in the next 3 years because it is complemented by other bilateral initiatives and which emphasizes digital transformation", said Mazeiks.
For his part, the director of the ODA, Dumitru Pîntea, said that the financial resources will be directed to programs dedicated to beginners ("Start for young people", "Women in business", or PARE 1+2) and to growth programs, such as the program of greening and digitization of SMEs. "Last but not least, the financial resources will be allocated for the modernization of SMEs, a program that has enjoyed enormous success recently and that very specifically addresses the needs of entrepreneurs. At the same time, the resources will be allocated to a program dedicated to the development of rural tourism, to be approved by the Government in the next period", said Pîntea.
According to the director of the ODA, the application to the programs will be online only and will require the same package of documents, and the evaluation of the projects will be carried out by the ODA, and the decisions will be made by the financing and risk committee. "This agreement is not only about financing, this agreement is about stronger businesses, more competitive products and services and a firm step to access the EU markets," said the ODA director.
In 2022, every tenth entrepreneur from the Republic of Moldova received support from the state through the Entrepreneurship Development Organization (ODA), and the amount of funding granted in the form of grants, financial guarantees or subsidies is around 720 million lei.
