Vadim Codreanu
The beneficiary companies currently employ 375 people. The financial assistance will allow them to create at least 328 new jobs. Out of the total amount of grants provided, 16.3 million lei were included in the state budget. This money will be allocated to 48 local companies. Also, the EU supported 29 companies, which will benefit from 4.9 million lei through the project “EU for small and medium-sized enterprises”.
Another three Moldovan companies will be granted grants worth 1.1 million lei through the program of support for small producers. The program is relatively new, operating since last year and is part of the EU4Moldova: Local Communities initiative. The program is financed by the EU and the German government. Funds through this program were provided for the production of vinegar from wine materials and the development of greenhouse farming.
Vadim Codreanu, head of the ODA, told Logos Press that the authorities, during the recent budget adjustment, granted the organization an additional 200 million lei to support entrepreneurship this year. About half of the money will be used to capitalize the credit guarantee fund, as well as to complete the construction of multifunctional industrial platforms, which are managed by the organization until they are handed over to the local authorities. The other half of the money will be used to provide additional grants to companies.
A total of 300 Moldovan companies have received grants worth 120.8 million lei since the beginning of this year. Thanks to this, another 232 million lei will be injected into the Moldovan economy. Of these, 210 companies are financed from the state budget, 83 receive financial support from the European Union within the project “EU for Small and Medium Enterprises”, and four companies were financed by the World Bank.
Plus three companies will receive grants through the Small Producers Support Program. According to its manager Zinaida Kozma, 70 more applications have been submitted to the organization and are waiting for consideration. The budget of the program this year is 12.7 million lei, but as the interest in it is high, additional injections are possible. Like other ODA programs, both individuals and legal entities that have been working for at least a year can join the program.
The maximum amount of the grant is 500 thousand lei, and the contribution, according to the scheme valid for all ODA programs, is 30% of the project amount. The remaining 70% is the grant. Last year, this program financed meat processing and production of canned food, bakery products, furniture, etc., as well as a number of other projects.
In general, if we look at the dynamics of program promotion, today there are many requests for digitalization of business. Interest in energy efficiency and re-technology is traditionally high. Recently, companies have become more interested in the greening program, so investments in filtration and environmental protection equipment are stimulated.
“This component will inevitably grow,” believes Vadim Codreanu. – We also try to encourage young people to go into business. Today, about 70% of grants have been given to young entrepreneurs and those who start a business. In general, the dynamics shows that 60-70% of the funds go to the development of established companies, the rest – to new ones”.
The demand for the program to support women in business is extremely high today. “Many women are still hesitant to start their own business,” says Oksana Otgon, head of the ODA department. – They may not get a loan from a bank and are generally less financially stable than men. Therefore, the first program had a major social impact. More than 700 women’s businesses were financed for an amount of 100 million lei. As there were more applications, we developed another one, and during one year and four months we received over 300 more applications. The amount of the grant is 600 thousand lei for existing businesses and 200 thousand lei for start-ups”.
At the same time, interest in programs for the return of migrants is decreasing, even in PARE 1+2, under which the state donates two-thirds of the funds. “We explain this by the fact that many of those who wanted to return have already done so,” Oksana Otgon continues. – PARE 1+1 was the first and at that time the only program, now there are more attractive offers from the state. Especially since it requires more documents confirming kinship and legal work abroad.
At the moment, the organization is developing new support tools and regulations that will speed up the receipt of funds. If approved, funding decisions will be made through the ODA, rather than through government decrees, as is the case today.
In the latest grant package, the total amount of funds was lower than previous ones, but the number of program participants increased. ODA attributes this to the fact that the limit has already been exhausted for projects with more substantial funding.
