Volume 1 Cedric - revised luca Final - RUIG-GIAN

5.1.3. The policy framework for the support of the SME sectorIn the context of the growing importance of SMEs in the economy, several strategicorientation and policy documents have been prepared and adopted by the Government tosupport and improve the environment of the SME sector, including: the Strategy forDevelopment of SME, the Law on Realisation of Handicraft activities, the National Policyfor Development of Technology, and the Program for Measures and Activities for Supportof Entrepreneurship and Creation of Competitiveness of SMEs in the Republic ofMacedonia. 111As far as the institutional environment, the National Council for Competitiveness andEntrepreneurship was established in 2003 to assist and provide guidance to theGovernment to improve the environment for entrepreneurship, specifically by workingthrough public-private partnerships. In July 2003, the ProBiznis Bank was established toprovide financial services to micro and small entrepreneurs. A law on the MacedonianGuarantee Fund and a law on an Agency for Entrepreneurship are currently underpreparation along this same effort of improving the institutional infrastructure for the SMEsector.The FYROM has also actively pursued collaboration with key internationalstakeholders in its private sector development policy, in particular with the European Bankfor Reconstruction and Development (EBRD). The EBRD has considerably intensified itssupport programme to the FYROM in the biennial strategy of mid-2002 through mid-2004with nine new loan commitments agreed for a total of 126 million EUR, representing a 62per cent increase of the total cumulative business volume to date. It is particularlyencouraging that three projects were signed with foreign sponsors, a tentative sign ofrenewed investors’ confidence after the 2001 conflict. The EBRD has supported the accessto credit segments by establishing a micro-finance bank which has already providedfinance for over 3,700 SMEs, and regional integration efforts through infrastructuredevelopment (e.g. roads and regional electricity interconnection). 112The Republic of Macedonia has demonstrated progress in accepting andimplementing the provisions from the European Charter for Small and Medium Enterprisesin the Western Balkans but further simplification and improved information on theregistration process, better information on regulations and standards to be respected bysmall companies, a new programme on enhancing business skills and introduction of anational guarantee fund are also expected, as stated in the report on the implementation ofthe European Charter for Small Enterprises. These will be quite welcome instruments. 113111 Investment Guide for Southeast Europe 2003, http://www.seeurope.net/en/pdf/Macedonia.pdf112 ‘FYR Macedonia Strategy Overview’, http://ebrd.com/about/strategy/country/mace/comment.pdf113 The Head of Delegation of the European Commission, Ambassador Donato Chiarini, presented to Minister ofEconomy Stevco Jakimovski the Commission report on the European Charter for Small Enterprises on theoccasion of the EU-Western Balkans summit in Thessaloniki in June 2003, the countries in this region endorsedthe European Charter for Small Enterprises.‘FYR Macedonia follows the recommendations of the European Charter for Small Enterprises’, Newsletter, ECDelegation- Skopje, May 2004, www.delmkd.cec.eu.int/en/information-sources/newsletters/2004-htm/newsletter-2004-05-2htm126