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Erste Bank Serbia Superstep – loans for young enterpreneurs starting their own business

Erste Bank Serbia Superstep – loans for young enterpreneurs starting their own business. European Global Compact Local Networks Meeting Belgrade, 18-19. October 2012. High level of y outh unemployment in Serbia

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Erste Bank Serbia Superstep – loans for young enterpreneurs starting their own business

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  1. Erste Bank Serbia Superstep – loans for young enterpreneurs starting their own business European Global Compact Local Networks MeetingBelgrade, 18-19. October 2012

  2. High level of youth unemployment in Serbia Among total number of enterpreneurs in Serbia, young enterpreneurs between 15 and 29 years old consist 10,4% Serbian youth consider that employment in public service provides lower wages but a safe job and stable future The need European Global Compact Local Networks MeetingBelgrade, 18-19. October 2012

  3. No access to financing Lack of knowledge, skills and experience High level of risk Low expectancy of success Poor business climate 52% of youth express interest to start their own business if they had access to favourable credit line Reasons for NOT starting own business European Global Compact Local Networks MeetingBelgrade, 18-19. October 2012

  4. Our approach • Erste Bank Serbia teamed up with the Serbian National Employment Service in 2011 to launch a pilot project Superstep providing business start-up loans and business training to existing and aspiring young entrepreneurs • Target group:  young people (age 20-30) educated registered at employment bureau no access to financial services for their business idea European Global Compact Local Networks MeetingBelgrade, 18-19. October 2012

  5. Call for applications for new business ideas Pre-Selection of candidates for training Training / Education (B&A, financial education) Final- Selection of business ideas to be financed Finance Setting up of new businesses Ongoing support and monitoring (Super)Steps European Global Compact Local Networks MeetingBelgrade, 18-19. October 2012

  6. Challenges • External:Businesses run by young entrepreneurs have lower survival rates than those of older entrepreneurs  Solution: Erste Bank Serbia took additional risk by granting loans with no collateral requirements • Internal: getting the buy-in of various departments inside the Bank •  Solution: a task force was set up consisting of colleagues from all the relevant departments European Global Compact Local Networks MeetingBelgrade, 18-19. October 2012

  7. Impact • Training of 22 applicants, Public event & speed mentoring, 7 candidates were selected to be financed, Mentoring program started 02/2012 • Throughout Erste Group, the programme serves as a model • As the program is quite flexible in terms of attracting additional partners and using all existing incentives and supporting initiatives, colleagues from Erste Bank Croatia have already implemented a similar project that they adapted to the local specificities. European Global Compact Local Networks MeetingBelgrade, 18-19. October 2012

  8. 7 young entrepreneurs were financed amounting to €25,000 Jan Privizer will use the loan to set up a company engaged in the production and processing of hemp seeds; Nikola Milanović and Aleksandra Popović will use it to open dental surgeries and Milan Stojković will provide tourism management, marketing and promotion services. Elena Krleskiwill manufacture finished textile products with folk art features and Marija Radulović will produce hand-made doilies, bed sheets, pillows, towels, napkins and slippers; Mlađen Burdelj’s business will venture into processing plastics. Results European Global Compact Local Networks MeetingBelgrade, 18-19. October 2012

  9. Youth Business Serbia • …establishment of comprehensive support for young entrepreneurs in Serbia • Training and education • Access to finance • Mentoring and “aftercare” support NES European Global Compact Local Networks MeetingBelgrade, 18-19. October 2012

  10. Follow-up • Currently open call for the best youth entrepreneurial idea • All eligible applicants will have the opportunity to attend two rounds of training • From business idea to business plan • Developing business plans to get financing • Once this stage is completed, a selection committee will assess those businesses/ideas that are interested in and suitable for accessing Erste Bank Serbia’s Superstep loan and will recommend them for financing. European Global Compact Local Networks MeetingBelgrade, 18-19. October 2012

  11. Thank you for your attention!More info on http://www.erstebank.rs/

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