Businesses operating in the fields of beekeeping and energy efficiency are part of the 16 projects developed by young entrepreneurs within the first call of the Municipal Pilot Program "Start-up for young people and migrants". Slightly over 3 million lei, allocated by the municipality to finance the projects, attracted investments in the national economy and the creation of 171 new jobs. Deputy mayor Olga Ursu told IPN about the difficulties young people face when they want to start a business, how the infrastructure for entrepreneurs evolved and what activities are organized in Chisinau municipality for those interested.

Financial support for businesses

Olga Ursu noted that the entire country, including the capital city, is currently witnessing low opportunities for young people both economically, financially, socially, and in terms of salary possibilities. This situation led to the emigration of young people. There is also rural exodus, when young families come to Chisinau from all over the country. In addition, refugees from Ukraine return with children and place them in educational institutions. In this connection, a number of national projects dedicated to young people were examined and it was decided that such a program should also be developed at the municipal level, which would help young people who want to start a business, either separately or together with refugees or migrants.



The program implies, in short terms, the granting of up to 200,000 lei in nonrefundable financial support to those young people who want to start a business or to develop an existing business, started less than two years. Olga Ursu explained that many businesses die in the first year of life, which is why the monitoring period within the program was extended to two years, during which the company or start-up is directed so that it grows, and entrepreneurs obtain as many skills as possible in business administration.

"Examining other programs, I understood that it is not enough to grant only non-reimbursable financing, but it is very important to train young entrepreneurs, future entrepreneurs in the areas of accounting, law, business administration, marketing, market knowledge and many other aspects, which would help them not only to start that business, but to also keep it viable," said the deputy mayor.



Within the first call for funding, 48 applications were submitted, of which 16, operating in the hospitality sector, the agri-food, light and creative industries were accepted. Among those accepted was a textiles processing project. A company led by a young woman from Chisinau expanded the business with funding from the Chisinau City Hall. Another project is in the field of energy efficiency, implemented by a young migrant woman. After having worked for more than eight years in a company that produces solar batteries, she returned from Europe and implemented a solution for installing those batteries end-to-end, the deputy mayor explained.

Among those who did not get financing are people who have not reached the age of 18. Others were not suitable financially as one of the requirements is to secure investment in a proportion of 30%, while the rest 70% are provided from the municipal budget. There were also people who did not fit into the priority areas of the program, such as production and service activities, IT, innovations, etc. Someone else had to work on the financial plan. Many of those who applied for the first time and were not funded, already knowing the mistakes, are waiting for the next call, said the deputy mayor.



At the end of the year, an attempt was made to introduce changes in the program, but the project was not approved by the Chisinau Municipal Council and will be repeatedly put to the vote. As last year, 10 million lei was earmarked for financing businesses in 2025. Olga Ursu said that the call cannot be opened as long as the amendments are not approved by the CMC. Last year, the submitted applications did not exceed the amount allocated from the municipal budget. Therefore, this year, if there are not enough applications within the first call and there is a budget reserve, a subsequent call for applications will be launched.

Development of entrepreneurial skills

Young people often come up with only an idea, but they don't know very well the actual process of starting a business, where to register the company, how many employees it should have, how an accounting record should be kept. That is why, last year, a special emphasis within the municipal program was placed on training future young entrepreneurs how to develop and maintain a business. During four-five months, more than 5,400 young people were trained.



The training courses took place with physical and online presence, in Romanian and Russian, and were taught by professors from higher education institutions with the involvement of experts from the field, including mentors of the Municipal Center for Entrepreneurship Development. The sessions centered on marketing and market knowledge, the law and topics related to accounting.

Training courses to develop managerial and entrepreneurial skills are also organized at the municipal youth centers working in the capital city. Specialists of the Municipal Center for Entrepreneurship Development, together with university professors, come to the centers and teach modules on business development.

Olga Ursu said that the development of entrepreneurial skills in children can be started at home, with financial education. "Basically, entrepreneurial culture starts the day the child is first given pocket money. The child must understand how they can distribute this money and that they can make savings in this process," said the deputy mayor.

Spaces for entrepreneurs

Currently, the Municipal Business Incubator includes a friendly space for young entrepreneurs. There are eight residents from different fields, who are provided with modern workspace, with all the free services, available every day, such as xeroxing, internet, conference rooms for training and mentoring, a large workroom for 20 people, a few small rooms and a room for online discussions or private meetings. Moreover, they also have a connection with the business sector. While serving as residents at the incubator, all the young people's activities are jointly managed by specialists of the Municipal Center for Entrepreneurship Development. In order to attend the incubator, it is necessary to conclude a contract. The person who wants to be a resident must access the online application guide and fill out the form.



The deputy mayor noted that the municipality would like to open an incubator in each district of the city and they already identified some unused locations and are looking for investors. Likewise, the plan includes the development of a business accelerator in which the resident can stay for up to six months. In Centru district, two spaces located on Armenească and Vlaicu Pârcălab streets are being considered for creating a hub of creative industries.

"Moreover, we are now implementing the project to create an industrial platform for the development of small and medium-sized enterprises in Chisinau. This involves granting a lot or municipal buildings, connected to absolutely all the necessary networks for small and medium-sized enterprises that want to carry out an activity, but do not own a space of their own," said Olga Ursu.



The deputy mayor highlighted the importance of establishing partnerships not only with the academic community, but also with other incubators and centers in cities of the European Union member states.

Milena Macarciuc, IPN