Creation of better environment for SME growth. Gediminas Rainys Under-Secretary, Ministry of Economy of Lithuania
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1 Creation of better environment for SME growth Gediminas Rainys Under-Secretary, Ministry of Economy of Lithuania
2 Small and Medium Business Small and Medium Business is the cornerstone of the economy and the main condition for the successful process of the middle-class formation
3 The role of SMEs in the economy of Lithuania SMEs account for 99,4% of the total number of enterprises in Lithuania SMEs employ 69,7% of the total number of the employed people
4 Structure of Lithuanian Enterprises by the Number of Employees as at 31 December 2003, percent 4,0% 0,6% up to 9 18,0% over ,4%
5 Our goal is: to create favourable conditions for the development of small and medium-sized enterprises (SMEs) to promote their competitiveness and smooth as well as faster integration into the EU single market
6 Making Lithuania the best place to start and grow a business Development of safe and uncomplicated legal and economic environment Development of financial support for SMEs Promoting entrepreneurship in regions Promoting the competitiveness of SMEs
7 Legal basis Long-term Economic Development Strategy of Lithuania until year 2015 Strategic Guidelines and Measures for SME Development for the year Government s Working Programme
8 Parliament of Lithuania Science and Technology Commission Government of Lithuania Lithuanian Science Council Other ministries and governmental organizations Ministry of Economy Industry and Business Department Ministry of Education and Science Science and Higher Education Department Lithuanian Academy of Sciences State Universities, research institutes Science and Education Bodies Lithuanian State Science and Studies Foundation Agency for International Science and Technology Development Programmes Innovation Centres (1+5) Science & Technology Parks (6) Business Incubators (7) Business information centres (42) SME s Development Agency Lithuanian Development Agency INVEGA & Business Support Agency Companies
9 Public business support infrastructure 7 business incubators (BI) 42 business information centers (BIC) 3 Euro info centres (EIC) 6 science and technology parks Lithuanian innovation center Small and Medium Enterprises Development Agency (SMEDA) Lithuanian Development Agency (LDA) Investment and Business Guarantees (INVEGA) Lithuanian Business Support Agency
10 Lithuanian Innovation Centre (Non-profit organisation. Shareholders: MoE, ESM, Lithuania Industrialists Confederation) IRC Lithuania (since 1999) Regional innovation support network (coordination unit) Other innovation and technology related projects Transnational technology transfer: Technology export Technology import Technology audits Technology missions, brokerage days. Kaunas Klaipėda Šiauliai Alytus Panevėžys PHARE ESC Innovation Capacity ( )
11 Public business services institutions network Business incubators (7) Business information centres (42) Science and technology parks (6) Skuodo r. sav. Mažeikių r. sav. Joniškio r. sav. Akmenės r. sav. Biržų r. sav. Kretingos r. sav. Šiaulių r. sav. Pakruojo r. sav. Palangos m. sav. Plungės r. sav. Pasvalio r. sav. Rokiškio r. sav. Telšių r. sav. Šiaulių m. sav. Kupiškio r. sav. Klaipėdos m. sav. Rietavo sav. Panevėžio m. sav. Zarasų r. sav. Kelmės r. sav.radviliškio r. sav. Klaipėdos r. sav. Visagino m. sav. Neringos sav. Šilalės r. sav. Panevėžio r. sav. Anykščių r. sav. Utenos r. sav. Ignalinos r. sav. Šilutės r. sav. Raseinių r. sav. Kėdainių r. sav. Tauragės r. sav. Ukmergės r. sav. Molėtų r. sav. Jurbarko r. sav. Pagėgių sav. Švenčionių r. sav. Kauno r. sav. Jonavos r. sav. Širvintų r. sav. Šakių r. sav. Kauno m. sav. Kaišiadorių r. sav. Vilniaus r. sav. Kazlų Rūdos sav. Prienų r. sav. Vilkaviškio r. sav. Birštono sav. Marijampolės sav. Elektrėnų sav. Vilniaus m. sav. Trakų r. sav. Kalvarijos sav. Alytaus m. sav. Alytaus r. sav. Šalčininkų r. sav. Lazdijų r. sav. Varėnos r. sav. Druskininkų sav.
12 Public business services institutions network (2) Public non-profit institutions (stakeholders mostly State and Local Governments, universities) Objective provision of public services for business, such as business information, consulting and training for entrepreneurs Main activities: Training on business start-up, marketing, accounting, support from EU Structural funds Consultations Provision of information Rent of premises and equipment (only BI and STP)
13 Financial support to SME Activities of INVEGA Objective - to create better conditions for funding of small and medium sized businesses by providing state guarantees for SME bank loans and reimbursing interests Guarantee scheme: guaranteeing up to 80 % of SME s bank loan; reimbursing up to 50% of interests to SMEs. From EIF counter-guarantee 50 %
14 Activities of INVEGA Number of guarantees Amount of loans guaranteed, million LTL
15 Other forms of support to SMEs Innovative projects implementation Participation in exhibitions Business or experts missions organization Conferences and seminars organization Informational publications preparation Patenting costs compensation Commercial attaches Non-market risk for exporters restitution Others
16 Future guidelines Follow-up of set up policies Development of wider range of financial instruments for supporting SMEs: micro-credits, risk capital, etc. Focus on promoting target groups, in particular, youth and women entrepreneurship
17 SMEs the engine of the States economic development For this reason, the State seeks to become not the foundress of barriers, but partner of enterprises and helper in their everyday activity
18 Thank you for your attention
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