At the proposal of the Ministry of Economy, the Government of the Sarajevo Canton has adopted the Annual Implementation Plan of the Small Business Development Program for the year 2024. The Annual Plan for 2024 is innovative, enriched with new programs, and tailored to the current market needs. In the 2024 plan, we have retained programs that have proven successful in previous years. Out of a total of eleven individual programs, six remain unchanged from the previous year, two have been upgraded, and three entirely new programs have been devised, which we are confident will elevate the economy of the Sarajevo Canton to a higher level.
It is important to emphasize that this year we have amended the Regulations on Procedures for the Implementation of the Small Business Development Program. The essence of the amendment is the increased limitation period for participation in Public Calls from two to three years consecutively, and the reduced limit restricting users from reapplying to public calls from two to one year, counting from the last year in which the funds were approved.
For the implementation of this year’s Annual Implementation Plan of the Small Business Development Program, the budget of the Sarajevo Canton has allocated 8.5 million KM.
In the past year, we have been actively working on the adaptation of space at the Faculty of Mechanical Engineering, where the Entrepreneurship Development Center of the Public Institution Center for Advanced Technologies will be located. The intention is for this to be a place where we will provide incubation for newly established business entities. In line with these plans, a new program, “Financial Incentive with Incubation for Newly Established Business Entities,” has been created, with a total of 750,000 KM allocated. This program is designed to provide individual financial support of up to 30,000 KM, as well as incubation support for one year, to around 25 small business entities registered by creative young individuals in 2024.
Recognizing the importance of foreign investors, we have decided to create a program that will offer something to foreign investors, making the Sarajevo Canton a place where they will invest. A new program, “Incentive for Direct Foreign Investments – Support for Establishing a Legal Entity with a Foreign Investor as Founder,” has been devised, with a total amount of 350,000 KM planned to support direct foreign investments of micro, small, and medium-sized enterprises from abroad, or support for the establishment of legal entities domiciled in the Sarajevo Canton with a majority stake of a foreign legal entity. A grant incentive support is envisaged per selected beneficiary, which, depending on the assessment of the accepted business plan, is awarded up to a maximum amount of 70,000 KM.
Listening to the voice of the business community in our Canton, we realized the need for a program for business entities that are already established but are at the beginning of their operations. We will provide them support through the program “Incentive for Investments of Business Entities Registered in 2023 and 2024.” A total amount of 400,000 KM is allocated for small business entities registered in the Sarajevo Canton from January 1, 2023, to the date of publication of the public call. The incentive funds for all eligible activities of business entities under this program, for technological modernization, introduction/renewal of quality standards, and digitalization of operations, will be transferred to the beneficiaries’ accounts in an amount of up to 50% of the recognized eligible costs for these purposes. The minimum amount of eligible costs that the applicant is required to submit is 3,000 KM, and the maximum incentive amount per beneficiary can be up to 30,000 KM. Compared to previous years, this program allows for the allocation of incentive funds to those entities that do not have financial statements covering the entire previous fiscal year.
The program “Facilitation of Credit under Favorable Conditions” is planned with a total amount of financial resources of 3,000,000 KM, aiming to provide small business entities with the opportunity of credit under more favorable conditions with an interest rate subsidy of up to 3.0%. The financing will be provided through a commercial bank selected in accordance with the prescribed conditions and criteria. Unlike previous years, in 2024, this program will be divided into two LOTS, LOT-1 intended for medium-sized small business entities and LOT-2 for micro and small small business entities. For each individual LOT of this program, an amount of 1,500,000 KM will be allocated for interest rate subsidies. Under both LOTS of this program, funding for credit will be provided in individual amounts up to 2,000,000 KM, for a term of up to seven years, excluding the grace period. The users of credit funds from this credit line commit to using them in such a way that at least 50% of the approved amount is spent on fixed assets, and a maximum of 50% of the approved credit amount is used for working capital and maintaining current liquidity.
Furthermore, under the programs “Support for Establishing Business Entities for the Age Category of Population from 36-55 years” and “Support for Youth for Establishing Business Entities,” the implementation of financial resources of 750,000 KM each is planned. This will provide financial incentives for starting their own businesses for approximately 70 unemployed individuals aged 18-55 years, in accordance with the accepted business plan, and will contribute to reducing unemployment in these population categories. The maximum individual grant support per these programs is 21,600 KM.
The program “Support for Entrepreneurship Improvement in the IT Industry, Global Business Services Industry, Metal Industry, and Wood Processing Industry for New Employment” has been enhanced and involves the realization of 500,000 KM for subsidizing the costs of improving, developing, and strengthening entrepreneurship in the IT industry, global business services industry, metal industry, and wood processing industry. This program is intended for companies that conduct internal training programs to adapt to company work and train in the field of the respective company’s work. The purpose of the approved funds is for the selected company, after completing the internal training and development program, to create a platform for employing a certain number of training participants in accordance with the submitted project and the approved incentive amount. The maximum amount of subsidized funds for conducting training in one company cannot exceed 100,000.00 KM, with mandatory employment of 10 workers, and the job position is valued with an incentive amount of up to 10,000.00 KM per employed worker.
Also, as in previous years, the Annual Plan includes “standard” programs that have been implemented for many years, namely: “Refunding Costs of Technological Modernization, Quality Standard Application, and Digitalization of Operations” with a total planned amount of 1,000,000 KM, “Incentive for New Investments in Technological Modernization and Quality Standard Application” with a total planned amount of 500,000 KM, and “Promotion of Women’s Entrepreneurship” with an amount of 500,000 KM. For these three programs, which essentially provide subsidies/refunds for the costs of small business entities, a total of 2,000,000 KM has been allocated for the current calendar year.
The implementation of the Annual Plan will contribute to further stabilizing the economic situation, increasing economic development, improving production processes and market competitiveness of products, networking production and knowledge, introducing standardization and certification of new technologies and technological processes, employment, modernization of existing technologies, and development of new products and products with higher added value.
Godišnji plan provođenja Programa razvoja male privrede za 2024. godinu
