Evaluation of the USAID-Kosovo SME and Agriculture - Economic ...

Development Associates, Inc.Factor Beginning situation Impact onassistanceStarting competitivenessposition of assistedenterprises (sectors)Experience and tradition, Loss of tradition, skills Negativetechnological skills and and knowledgeknowledgeCurrent situationSome more sophistication.Still lagging far behindLevel of business skills Lack of essential skills Negative Some improvement, stilllacking essential skillsAccess to markets and Little, lack of market Negative Improvinginformation, servicesinformationAccess to external financing Almost none Short-term available, nolong termCustomer perception ofdomestic productsLow, preference givento imported productsNegative Somewhat improving,needs major changePerceptiveness of targetgroupUnderstanding of how marketsfunction, understanding ofcompetitivenessDependence of beneficiary’sincome on competitivenessLow level ofunderstanding, lots ofmisconceptionsA lot of incomegenerated fromreconstruction, donormoney and diasporaremittancesNegativeReducesreadiness tofacecompetitiverealitiesReadiness to embrace change Low Negative MediumEnterprise managers reports these constraints:Competition becoming amajor factorDegree of dependence ofcompany income on localproduction increases, likelyto become a major factor infuture• Customs and tax regimes that give preference to imported products while charging 26.5%(customs plus VAT) for machinery and raw materials required for production;• The inability to obtain credit on terms and conditions applicable to their productionenvironment; and• Lack of energy (electricity) in rural areas which prevents using machinery or entails costlydiesel generators.7. Have activities been well coordinated with other donors and other USAID projectsand focused on achieving mutually agreed objectives?There is clearly coordination at the program level between USAID and the EAR andundoubtedly other major donors. At the project level, the bright spot was KBS workingcooperatively with KBF in earlier years. FINCA reports no direct cooperation with KBS. TheSFS project had and continues to have cooperative activities with KBS agriculture. In oneinstance, for vegetable processing, cooperation ended when the new competitiveness initiativeEvaluation of the USAID/Kosovo SME 13 May 2004and Agriculture/Agribusiness ProgramsVolume I