EU Ambassador Soreca's speech for the achievements of the Programme "Advice for Small Businesses" funded by the European Union and implemented by the EBRD

Dear Minister Ahmetaj,

Dear Mr. Colangeli,

Distinguished participants,

I am happy to be with you today to discuss the very exciting results of the "Advice for Small Businesses" programme funded by the European Union and implemented by the EBRD.

The statistics on the impact of this project are truly impressive. Let's go back to some of those figures:

• 85% of the beneficiary companies have increased turnover, with a median increase of 47%;
• 71 % of the beneficiary companies have increased productivity, with a median increase of 32 %;
• 74 % of the beneficiary companies have increased exports, with export value increased by 36 % in total

Those are extremely important results and the proof that advisory services to SMEs and transfer of know-how work in boosting the potential of Albanian businesses.

A few days ago in Berat, I met the people behind some success stories supported by this programme, like the owner of the Gjedra company in the video we just watched. What do these experiences tell us?

Changing the business model has clear positive impacts in reducing costs and becoming more competitive. However, business owners couldn't be clearer: it is not enough to have financing and knowledge transfer. What is critical to is to have a business environment conducive to SME creation and growth.

There are still structural obstacles preventing this to happen, including:

• unclear land ownership and insufficient enforcement of property rights,
• a high level of informality and corruption, despite progress already achieved through judicial reform,
• an excessive regulatory burden, which discourages both foreign and domestic investment
• excessive reliance on exports of low value-added products.

Let me take this opportunity of having here Minister Ahmetaj to highlight again the importance of continuing the implementation of structural reforms. As stated in the last annual Report from the European Commission, reforms that are crucial to improving the business environment require further efforts.

The Government should continue to

• increase the formalisation level of the economy, as a tool for raising competitiveness;
• promote the development of businesses in sectors where Albania has competitive advantages, such as tourism or the agro-industry, and in those with a higher value added, such as the information technology or financial services;
• develop capital markets, is a way to support new and innovative businesses.

The EU will continue to support very strongly the sector reforms in preparation for EU membership. In the coming months, we will target especially sustainable touristic development, agro-businesses and innovation.

With our financial assistance, we will aim at enhancing the link between tourism and preservation of natural and cultural heritage as a source for economic growth. Our 40 Million euro partnership with EBRD – which will start in early 2019 - will implement this vision.

Improving business competitiveness implies having adequate transport, energy, social infrastructure and services in place. Through the EBRD, the EU will also support investment projects for local economic development to upgrade municipal infrastructures and services.

I mentioned the agri-food industry; let me remind you of the IPARD programme and encourage agro-businesses to take full advantage of opportunities for support in investments. The first call is now open, focusing on agricultural holdings, processing establishments and diversification of agricultural activities. Financial institutions and advisory services are key to ensure that this important allocation of funds is absorbed.

In the area of Innovation and start-up creation, we are looking at ways to strengthen capacity for innovation among start-ups, innovation support providers and policy-makers. Linkages must be built between the Albanian and international innovation ecosystem. We have started to work on those issues with GIZ and SIDA.

The latest Global Competitiveness Report suggests that a nation’s performance in terms of technological readiness, business sophistication and innovation is now as important as other basic drivers such as infrastructure and well-functioning markets. As Steve Jobs used to say: "Innovation distinguishes between a leader and a follower". Albanian businesses should become leaders rather than followers in their sectors. For that, they need the support of advice and consulting services of the sort involved in our Small Business Support project.

Again, I would like to congratulate the project for really impressive results. Albania has started a long journey towards a competitive, knowledge-based economy. I wish you fruitful discussions today, and most importantly, to develop stronger networks to push the modernisation of the Albanian economy further. 

Thank you.