Thanks to the Government of Switzerland and the expertise of the SME HUB team, local businesses are receiving financial and expert support to connect with large companies and enter global value chains.
The SME HUB project, which is the result of a public-private partnership between the Government of Switzerland (represented by the Swiss Agency for Development and Cooperation – SDC) and Serbian company ICT HUB, has been operating successfully for a year. The small and medium-sized enterprises that have so far joined the SME HUB hail from various industrial sectors, such as the chemical industry, the electrical and electronics systems industry, metal processing, wood processing, rubber, plastics and the food industry.
“This diversity of sectors highlights the importance of our initiative for different branches of the Serbian economy. Given that we’ve been operational for a year, we’ve already seen some very concrete results,” says SME HUB Director Aleksandar Goračinov.
Nine SMEs, with a total of 654 employees and annual revenues exceeding €60 million, have so far embarked on the organisational transformation process, with a value of more than CHF 550,000.
“Our mission is to support them through non-refundable financial resources, expert guidance and the transfer of specific knowledge that enables them to transform their businesses and create conditions for new and expanded cooperation with large domestic and multinational companies,” says Goračinov. “This is a step towards entering the global supply chain, contributing to their long-term growth and progress, and, of course, strengthening the domestic economy. We have an ambitious plan for the next year: our goal is to bring 15 new SMEs into the transformation process, and we expect to succeed, given current interest from more than 60 companies.”
Based on your experiences to date, what do you identify as the key strengths of the SMEs joining the programme?
— What particularly encourages us is the willingness of many entrepreneurs to acquire new knowledge and adapt to changes.
Quick decision-making and flexibility are key advantages that can enable them to position themselves successfully on the market. Many of them have highly motivated teams and a clear and strong vision for development, but they often lack expertise in areas such as management, finances and human resources. There is sometimes also a problem of a lack of financial resources for further improvement. This is where SME HUB steps in, offering comprehensive support in these areas and helping them overcome these challenges through non-refundable resources and business transformation.
At what stages of joining the supply chains of large domestic and foreign companies do SMEs face the most significant challenges and dilemmas?
— One of the biggest challenges for domestic SMEs is the transition from entrepreneurial management to professional management. This step requires significant changes to their established way of doing business and thinking, including the professionalisation of management, certification, standardisation and the implementation of defined business processes and systems for managing finances and human resources.
Furthermore, many entrepreneurs face the need to adapt their production capacities and optimise operations to meet the strict standards set by large domestic and multinational companies. The lack of capital, growing competition and insufficient investment in organisational development and employee training can complicate this process further. Without strategic planning and the right investments in these areas, many SMEs may face serious difficulties when it comes to achieving sustainable growth and market competitiveness.
For SMEs that are already part of these supply chains, which areas require additional support to enhance their market presence and achieve long-term sustainability?
— As I have already noted, maintaining competitiveness for companies that are already part of supply chains can be a significant challenge, if not a problem. That’s because they need support in further improving their operations, in areas such as professionalising management and optimising processes to increase efficiency and achieve long-term sustainability. There is an additional need for the continuous improvement of product quality and alignment with increasingly stringent global market standards.
SME HUB provides access to various resources, including expert support, the transfer of specific knowledge and experiences, and networking opportunities. In this way, we offer domestic companies the chance to boost their competitiveness, achieve sustainable growth and secure long-term success, which contributes to increased revenue, the creation of new jobs and a foundation for overall economic stability.
Which large companies are most interested in this process, and how do they contribute to the implementation of the initiative in practical terms?
— I am very proud of our partner network, which we continue to expand. We collaborate with companies that include some of the largest exporters in Serbia. Twelve large domestic and multinational companies have so far supported SME HUB, including Sika, Zumtobel Group, Leoni, ZF, Elixir Zorka, Dexyco and others.
SME HUB’s mission is to support SMEs through grants, expert guidance and transfers of knowledge in business transformation and strengthening cooperation with large companies
These companies actively support the development of local suppliers, providing them not only with opportunities for cooperation, but also expert assistance in technology and operations. Their contribution is crucial to the success of SME HUB, as they enable SMEs to integrate into global supply chains and thus contribute directly to the development of the domestic economy.
To what extent has the disruption of global value chains influenced your initiative and shaped your future activities?
— Global disruptions to value chains have definitely impacted business, but have also created new opportunities. Companies have become more aware of the importance of diversification and the need for additional investment in acquiring knowledge, modern tools and, in short, the organisational development of their business. SME HUB provides support in adapting to these changes and we intend, as part of our five-year plan, to strengthen the capacities of SMEs, helping them become more competitive, flexible and resilient to market volatility.
How would you evaluate your cooperation with the Swiss Embassy, and how significant is their support for the further development of your initiative?
— The support of the Swiss government, through the Swiss Agency for Development and Cooperation, was crucial for the establishment of SME HUB, which was created as a result of a public-private partnership with Serbian company ICT Hub. The arrival of the new ambassador has further strengthened our work. Ambassador Lugon-Moulin’s understanding of the subject, pragmatism, practicality and dedication to this initiative create new opportunities for Serbian SMEs. Thanks to the Swiss government, which is one of the largest donors in our country, local entrepreneurs not only receive financial support, but also expert assistance and wholehearted backing in connecting with large companies, allowing them to access international markets.