2013 Dariusz Szewczyk Deputy to Chief Executive Officer of PARP Support for entrepreneurship and innovation - Polish experience Astana, 23 May 2013 Astana, 23 May 2013 Polish Agency for Enterprise Development (PARP) Established by the Act of 9 November 2000, a governmental agency subordinate to the Minister of Economy. The main objectives: Structure: enterprise development Supervisory Board application of new techniques CEO, Deputy to CEO (3) export development budget for 2013: 1,1 bln EUR creation of new jobs, tackling no. of beneficiaries: 12 thous. unemployment human resources development 23 Departments more than 500 employees. regional development PARP in the financial perspective 2007-2013 is involved in implementation of 7.2 bn EUR (8.4% of total NSRF budget) within three OPs: OP Innovative Economy (EUR 3.9 bn), OP Human Capital (EUR 672 m) and OP Eastern Poland Development (EUR 2.6 bn). Astana, 23 May 2013 Implementation of Operational Programmes (for 30.04.2013) OP Innovative Economy OP Human Capital OP Eastern Poland Development 10 510 756 198 15,6 bln PLN 2,2 bln PLN 9,9 bln PLN 27,7 bln PLN 8,9 bln PLN 1,8 bln PLN 4,4 bln PLN 15,1 bln PLN 678 4 3 685 CO-FINANCING AMOUNT 427,5 mln PLN 22,9 mln 2,1 mln PLN 452,5 mln SUPPORT PAID 562,9 mln PLN 78,7 mln 330,9 mln PLN 972,5 mln NUMBER OF CONTRACTS SIGNED CO-FINANCING AMOUNT SUPPORT PAID TOTAL 11 464 January-April 2013 NUMBER OF CONTRACTS SIGNED PLN PLN PLN PLN Astana, 23 May 2013 PARP achievements – 12 years of activity Over 31,3 thousand contracts amounting to almost 8,1 bilion EUR, Over 873 thousand employees from over 278 thousand companies took part in training sessions and postgraduate studies co-financed by PARP, Over 1,14 million people benefited from the National SME Services Network, Over PLN 828 million capitalization of regional and local loan and guarantee funds, 200 infrastructural projects implemented in the less developed regions in the framework of Regional Development Programmes, Over 8 million people visited Poland Pavilion during Expo 2010 in Shanghai, Presidency of the Council of the European Union (7 conferences, 4 500 participants, 600 EEN offices represented during the Annual Conference, 250 ambassadors from Europe supporting women entrepreneurship). Astana, 23 May 2013 National SME Services Network (KSU) Information services Proinnovative advisory Financial services – guarantee funds Financial services – loan funds New systemic services Astana, 23 May 2013 Organisational structure of the SME support system in Poland NATIONAL LEVEL POLISH AGENCY FOR ENTERPRISE DEVELOPMENT governmental agency, responsible for implementing of economic development programmes KSU KSU REGIONAL LEVEL 16 REGIONAL FINANCING INSTITUTIONS (RIF) one in each voivodship, cooperate with the PARP in the implementation of national programmes and regional in some cases LEVEL OF DIRECT SERVICE PROVIDERS SERVICE PROVIDERS with significant experience in cooperation with SMEs provide advisory, training, information, financial and proinnovative services National SME Services Network (KSU) KSU business support organisations cooperating within the network of audited and accredited institutions Information services PK Proinnovative services KSI financial services guarantees financial services loans Commercial and non profit Institutions entitled for services providing without PARP accreditation pilot services Astana, 23 May 2013 Loan and Guarantee Funds system Astana, 23 May 2013 Funds description Loan Funds LF: separate fund for loans for SMEs and start-ups Guarantee Funds GF: separate fund for loans for SMEs and start-ups LF and GF function in accordance with fixed standards and regulations on granting loans/ guarantees LF capital: self-governments’ subsidies, financial aid own resources from the LF institution and/or income from the lending activity. At present, there are ca. 71 LF, 53 of which are under KSU, and 44 concluded agreements with PARP. GF capital: self-governments’ subsidies, financial aid own resources from the LF institution and/or income from the lending activity. At present, there are ca. 51 GF, 46 of which concluded agreements with PARP. Astana, 23 May 2013 Loan Funds Guarantee Funds For SMEs and persons starting business For SMEs applying for a loan or tendering for activity. LF may also grant loans from their own a contract but not having enough security for resources to other organisations. However, the liability. these are always special-purpose loans. Allocation – company development: investments, current, investments and current Payment period: 36 to 60 months Interest rate: ca. 5.5% to 9.5% a year, Possible fee amounting to 1-3 % of the amount of the loan Required own contribution of the consumer amounting to ca. 20% of the investment value; Security: blank promissory note and, if necessary, additional securities; This term guarantee is granted for the period corresponding to the loan period, until the liability payment; Payments and fees amounting up to 3.5% of the guaranteed liability are taken; Individual guarantee amounts up to 80% of the amount of the loan; Security: blank promissory note and, if necessary, additional securities; Granted after the risk analysis concerning the non-repayment of the liability; Astana, 23 May 2013 Funds’ support and development of services concerning granting loans and guarantees under the National Services Network (KSU) Activities: Providing quality of services (working standards; standards of services – support and advisory, audits, monitoring) Moreover, for GF: ordering service of assigning/ analysing rating, Building consultants’ competencies (analysis of competencies, development plans, trainings, advisory) Cooperation within SI KSU (news, knowledge base, forum, reporting) Promotion Analyses and experts’ opinions Astana, 23 May 2013 „Loan Fund – Support for Innovation” In 2013 the Agency plans to launch a new loan fund. Its purpose is to encourage private investors to invest in innovative start-ups. Loans will be granted to companies that already have a private investor. Borrower can receive low-interest loan (6,5%), which is twice the value of the contribution of the investor. Loan value ranges from EUR 50 000 to EUR 500 000. Budget of EUR 25 000 000 would mobilize private capital in the amount of at least EUR 12,5 000 000. Astana, 23 May 2013 Measure 3.1 „Initiating innovative activities” Astana, 23 May 2013 Measure 3.1 „Initiating innovative activities” Measure 3.1 „Initiating innovative activities” within Innovative Economy Operational Programme has been implemented since 2008 by the Polish Agency for Enterprise Development. The basis of project realisation is the Regulation of the Minister of Regional Development of 7 April 2008 concerning granting by PARP of financial aid within Innovative Economy Operational Programme, The allocation for the measure amounts to 158 000 000 EUR, The objective of the Measure 3.1 is to increase the number of enterprises acting based on innovative solutions. The Measure covers support within creation, based on innovative ideas, of new enterprises through consulting on establishment of enterprises, granting access to infrastructure and services necessary for newly created enterprises and financial support for newly created enterprises, Astana, 23 May 2013 Indexes monitored by PARP at the level of measure 3.1 1. Number of projects supported from the funds of the measure - 46 2. Number of enterprises established in result of support granted for innovation implementation - 600 3. Number of incubated ideas - 1100 4. Number of functioning new enterprises - 450 Astana, 23 May 2013 Measure 3.1 2013 recruitment (in progress) 1. The allocation for the recruitment amounts to 25 000 000 EUR, 2. Number of projects supported from the funds of the measure increased by 10, 3. Number of enterprises established in result of support granted increased by 200. 2013 Dariusz Szewczyk Deputy to Chief Executive Officer of PARP Thank you