17 December 2021 – The Programme’s priority directions include improving the regulatory framework for small and medium-sized enterprises and increasing their access to financial resources. Through the implementation of the National Programme for the Promotion of Entrepreneurship and Competitiveness Growth for the next 5 years, it is also proposed to support SMEs to create jobs, stimulate female entrepreneurship and invest remittances in the national economy.

During the meeting, the Economic Council Secretariat also presented proposals to reduce the disproportionate regulatory burden on SMEs compared to large enterprises. The proposals, identified by the Secretariat following discussions with the business community, also cover a number of changes to the regulatory framework that would favour the development of Small and Medium Enterprises in the country. This document is to be complemented by other proposals from the Moldovan business community, donor institutions and state institutions. Some proposals will also be included in the Action Plan of the National Programme for the Promotion of Entrepreneurship and Competitiveness.

The SME sector is very fragile in Moldova, the members of the SME Advisory Council said during the debate. This is because only 47% of companies survive the first year after setting up and only 40% after the second year. SMEs tend to be concentrated in low value-added sectors such as trade and vehicle repair (37.5%), professional, scientific and technical activities (8.7%) and manufacturing (8.5%).

Representatives of the associative sector present at the Council’s proceedings mentioned the importance of supporting SMEs, given that over 99% of all enterprises in Moldova are SMEs.

The National Programme for the Promotion of Entrepreneurship and Competitiveness for 2022-2026 is developed with the support of the EU project team, which supports the authorities in the elaboration of the document. EU Delegation representative Gintautas Baranauskas present at the event noted that “A vibrant SMEs sector is essential for a healthy and competitive economy. This is why the EU is assisting the RM, which is predominantly focused on supporting SMEs. And in times of pandemic this has become even more important.”

Attending the event, Minister of Economy Sergiu Gaibu noted that “Dialogue with small and medium-sized enterprises is a fundamental objective of the Ministry of Economy. We want this Council to become a functional platform that provides optimal support and advice to SMEs so that their voice is heard”.

The members of the Advisory Council of Small and Medium-sized Enterprises are expected to come up with proposals to reduce the regulatory burden on SMEs by 31 January 2022, after which they will be publicly debated and then systematised and proposed to the Ministry of Economy for consideration.

The Advisory Council of Small and Medium-Sized Enterprises operates within the Economic Council to the Prime Minister of the Republic of Moldova and is chaired by the Minister of Economy, with Liliana Busuioc, Executive Director of the Employers’ Association Alliance of Small and Medium-Sized Enterprises of Moldova, as Vice-Chair.

The Secretariat of the Economic Council to the Prime Minister is supported by the European Bank for Reconstruction and Development, funded by the UK Government’s Good Governance Fund, and the International Finance Corporation’s Investment Climate Reform Project funded by the Government of Sweden’s International Development Agency.

The Secretariat of the Economic Council to the Prime Minister is supported by the European Bank for Reconstruction and Development, funded by the UK Government’s Good Governance Fund.