Belgrade / Novi Pazar / Sjenica, November 29-30, 2010: Deputy Prime Minister and Minister of Economy and Regional Development Mladjan Dinkic invited Sandzak fashion producers to Belgrade to discuss concrete actions to overcoming obstacles hampering the growth of small and medium-sized fashion firms in Southwest Serbia.
This important initiative resulted from a PPES-facilitated Round Table discussion November 29 in Sandzak. The session focused on solutions to daily challenges faced by Serbian private enterprises in starting, building and expanding their businesses. Chaired by U.S. Ambassador Mary Warlick, the discussion joined six managers from PPES-supported businesses and nine ambassadors who are part of the “Friends of Sandzak Group,” an informal association of ambassadors serving in Serbia who see a direct link between a stronger Sandzak economy and the overall health of Serbia’s economy.
“Friends of Sandzak” were on a two-day visit to development projects that their respective Governments financed in the region. Two PPES-supported companies were part of the tour: denim producer Denistar and meat processing company Turkovic.
Novi Pazar, November 29, 2010: During their visit to Sandzak, members of the “Friends of Sandzak Group”, an informal association of 10 ambassadors serving in Serbia, participated in a roundtable discussion with Serbian Government Ministers and managers from six regional companies to share ideas on how to continue building Sandzak’s economy.
The Novi Pazar roundtable session focused on finding solutions to daily challenges faced by thousands of private enterprises in starting, building and expanding their businesses. All participants identified the need to simplify and reduce existing administrative procedures as important to removing economic obstacles for small and medium-sized enterprises (SME)s.
"Closer integration with Europe will bring enormous economic opportunity; we must ensure that the opportunities are available to all firms, not just those able to compete in more sophisticated and competitive international markets. We must all to work together to create an environment in which Serbian entrepreneurs and businesses can access information, finance, skills, resources and ther support needed to successfully compete in the global marketplace”, said Mary Warlick US Ambassador in Serbia.
For the six local SME owners in two industry sectors that have the highest growth potential (Halal meat and apparels) the roundtable was an opportunity to interact with high-ranking Government representatives and to suggest steps most needed to mitigate or remove the existing economic impediments for SMEs.
USAID PPES - Business Support: Support for the Growth of Serbian SME
In preparations for the roundtable, participating companies have intensively worked with the USAID Economic Security Program to identify the most significant barriers for expansion and to define possible solutions to the problems. These findings were the base for the discussion during the roundtable session.
Business support in Sandzak has long been a high priority for the United States as part of its efforts to spur economic growth in some of Serbia’s most underdeveloped regions. In Sandzak, the Economic Security Program’s activities have successfully focused attention on rebuilding Serbia’s once vibrant and internationally recognized apparel and textile industry. For the past three years, USAID has been implementing a multi-level business support activity that provides management, marketing and sales training for 80 SMEs from Sandzak and South Serbia to help them overcome the obstacles to business success,
The USAID project also helps companies update their marketing and branding materials and prepares them to enter domestic and international business fairs to help them open new markets and expand sales. Since 2008, Trade Fairs helped USAID supported companies generate $10 million in new sales and enter new markets throughout the region as well as Germany, Turkey, Russia, Belarus and Czech Republic.
Ten Ambassadors Tour Successful SMEs from Sandzak
Novi Pazar/Sjenica, November 29/30, 2010: U.S Ambassador in Serbia Mary Warlick accompanied by nine ambassadors and Serbian Minister of Economy and Regional Development Dinkic toured the production sites of two companies participating in USAID’s Economic Security Program business support activities - Denistar and Turkovic.
The tour was an opportunity for the Ambassadors to learn how U.S. Government’s well-coordinated and integrated business support activities have helped local small and medium-sized enterprises (SMEs) in the region expand production, increase sales and open significant new domestic and international markets. The ambassadorial group has come together as “Friends of Sandzak” working cooperatively to revitalize this region’s economy, which is vital to the economic health of Serbia.
Denistar and Turkovic are among the most successful SMEs in Sandzak and among 162 businesses benefiting from the support activities organized by USAID Economic Security Program.
Successful SMEs like Denistar and Turkovic help form the backbone of economic development in their communities. These companies, with the support of USAID, have been able to improve sales and increase employment by expanding and modernizing their production, and entering new markets.
“Businesses in this region operate under many constraints. The information about Sandzak’s businesses and their production needs that we have received today will help members of the international community define an effective strategy to support economic growth of those businesses and the whole Sandzak region. The growth and expansion of those businesses are of a great significance to Sandzak. It represents hope of an entire region, including the workforce that is in a desperate need for employment. The U.S. Embassy is pleased to support businesses and the region “, said the U.S. Ambassador in Serbia, Mary Warlick after the tour.
For the past three years USAID’s Economic Security Program has been implementing a multi-level business support activity to help companies from Sandzak overcome the obstacles to business success, Starting with core business training in management, marketing and sales training for 34 small and medium-sized companies in the region, USAID also helped companies modernize their marketing and branding material as well as supported new market entry by taking companies to Trade Fairs and Trade Mission visits.
Company Profiles
Denistar: Denistar is a company supported by USAID’s Preparedness and Planning and Economic Security (PPES) Program, a member of the Sandzak Textile Association and a typical size apparel firm in the region. Founded in 1989, it focuses on fashions for youth. The company has a daily production capacity of 1,000 units and carries designs in denim, velvet, linen and other textiles. Today Denistar exports on average 20% of its production.
Turkovic: Turkovic is a family-owned meat processing company located in Sjenica. Started in 1994, with just two employees and cooperation with 10 local farms, the company today, has 38 full-time employees and does business with nearly 1,000 regional farmers. In the past year, the company successfully entered the Kosovo market as a result of attending the Pristina Fair in November 2009. It has also recently signed a contract with a distributor in Turkey to ship more than 600 tons of fresh meat over six months, which represents a significant new market for the company.
For More Information:
United States Agency for International Development - Mission in Serbia
http://Serbia.usaid.gov
USAID PPES Business Support and Internship Activities:
(please contact our Communications Office)
www.scopes-serbia.org/index.php/en/contactus
Other Relevant Links:
Association of Textile Producers - ASSTEX
www.asstex.org