Creation of better environment for SME growth

Gediminas RainysGediminas RainysUnderUnder--Secretary, Ministry of Economy of Secretary, Ministry of Economy of LithuaniaLithuania

Small and Medium Business is the cornerstone of the economy and the

main condition for the successful process of the middle-class formation

Small and Medium Business

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

Structure of Lithuanian Enterprises by the Number of Employeesas at 31 December 2003, percent

18 , 0%

4 , 0% 0 , 6%

77 , 4%

up to 9

10-49

50-249

over 250

Our goal is:

to create favourable conditionsfor the development of small and

medium-sized enterprises (SMEs)to promote their competitiveness

and smooth as well as fasterintegration into the EU single

market

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

Legal basis

Long-term Economic Development Strategy of Lithuania until year 2015

Strategic Guidelines and Measures for SME Development for the year2005-2008

Government’s Working Programme

Government of Lithuania

Science and Technology Commission

Parliament of Lithuania

Lithuanian Science Council

Lithuanian Academy of

SciencesMinistry of EconomyOther ministries

and governmental organizations

Industry and Business Department

Ministry of Education and Science

Science and Higher Education Department

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)

Business information centres (42)

Business Incubators

(7)

Science & Technology

Parks (6)

SME’sDevelopment

Agency

Lithuanian Development

Agency

Companies

INVEGA & Business Support

Agency

Public business support infrastructure

7 business incubators (BI)42 business information centers (BIC)3 Euro info centres (EIC)6 science and technology parksLithuanian innovation centerSmall and Medium Enterprises Development Agency (SMEDA)Lithuanian Development Agency (LDA)Investment and Business Guarantees (INVEGA)Lithuanian Business Support Agency

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

Kaunas

Klaipėda

Šiauliai

Panevėžys

Alytus

Transnational technology transfer:•Technology export•Technology import•Technology audits•Technology missions, brokerage days….

PHARE ESC “Innovation Capacity”(2002-2004)

Utenos r. sav.

Visagino m. sav.Zarasų r. sav.

Rokiškio r. sav.

Ignalinos r. sav.

Vilniaus r. sav.Širvintų r. sav.

Švenčionių r. sav.Ukmergės r. sav.Molėtų r. sav.

Šalčininkų r. sav.

Varėnos r. sav.

Vilniaus m. sav.Trakų r. sav.

Anykščių r. sav.

Biržų r. sav.

Kupiškio r. sav.Panevėžio m. sav.

Panevėžio r. sav.

Pasvalio r. sav.

Kauno m. sav.

Jonavos r. sav.Kauno r. sav.

Kėdainių r. sav.

Prienų r. sav.

Kaišiadorių r. sav.

Elektrėnų sav.

Šakių r. sav.

Vilkaviškio r. sav.

Lazdijų r. sav.

Alytaus m. sav.

Birštono sav.

Druskininkų sav.

Kalvarijos sav.

Marijampolės sav.

Alytaus r. sav.

Pakruojo r. sav.

Jurbarko r. sav.

Akmenės r. sav.Joniškio r. sav.

Kelmės r. sav.Radviliškio r. sav.

Raseinių r. sav.

Šiaulių m. sav.

Šiaulių r. sav.

Mažeikių r. sav.

Pagėgių sav.

Šilalės r. sav.

Tauragės r. sav.

Plungės r. sav.Telšių r. sav.

Rietavo sav.Klaipėdos r. sav.

Neringos sav.

Palangos m. sav.

Kretingos r. sav.

Skuodo r. sav.

Šilutės r. sav.

Klaipėdos m. sav.

°

°

Kazlų Rūdos sav.

Business incubators (7)

Business information centres (42)

Science and technology parks (6)

Public business services institutions network

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 fundsConsultationsProvision of informationRent of premises and equipment (only BI and STP)

Financial support to SME

Activities of INVEGAObjective - 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 2004 - EIF counter-guarantee 50 %

Activities of INVEGA

102

179 175

020406080

100120140160180

2002 2003 2004

Number of guarantees

20

3844

05

1015202530354045

2002 2003 2004

Amount of loans guaranteed,million LTL

Other forms of support to SMEs

Innovative projects implementationParticipation in exhibitionsBusiness or experts’ missions organizationConferences and seminars organizationInformational publications preparationPatenting costs compensationCommercial attachesNon-market risk for exporters restitutionOthers

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

SMEs – the engine of the Stateseconomic development

For this reason, the Stateseeks to become not thefoundress of barriers, butpartner of enterprises andhelper in their everyday

activity

Thank you Thank you ffor youror your attentionattention