Number of Small-to-Medium Enterprises (SMEs) will double by 2020

By 2020, there will be 25 SMEs per 1000 inhabitants, compared to the present number of 12.8. This is foreseen by the development strategy of the SMEs sector for the 2012-2020 periods which is approved by the government. Moldova has registered positive tendencies in this area’s development. According to Deputy Minister of Economy Octavian Calmac, SMEs have become more profitable, more companies oriented towards export have emerged, and the number of companies has increased in rural areas, Info-Prim Neo reports. “Given that SMEs represent 97% of the companies in Moldova, the need for supporting them through stable economic and judicial conditions, favorable for entrepreneurial activities, is obvious”, claimed Octavian Calmac. The development strategy of the SMEs sector for 2012-2020 is focused on several areas, the main ones being adjusting the state’s amendment framework to the needs of the SMEs, improving their access to financing, developing the human capital by promoting entrepreneurial skills and culture. The implementation of innovations leading to competitive products and services provided by the SMEs will be encouraged, as well as the development of business partnerships. These areas are harmonized with the EU politics for this sector, which foresee a smart economic growth that is sustainable and inclusive for the SMEs. “Implementing this strategy will not only allow the number of SMEs to grow and diversify their range of activity, but also increase employment – from 55% of the current work force, to 65% in 2020. The share of the GDP that this sector provides will increase from 28% to 38%”, mentioned Calmac. The government has approved the action plan on implementing the strategy. Among these actions is the reduction of administrative barriers and costs for the SMEs, developing the indemnification system, facilitating the SMEs access to public acquisitions, creating the informational and consultative system for this sector and assuring the development of the support infrastructure for the SMEs. The cost-estimate of the foreseen actions for supporting the SMEs in 2012-2014 is 362 million lei, 47% of which are not covered. The total cost of implementing the strategy is 941.4 million lei. There are 45,6 thousand SMEs registered in Moldova, 41% of which are activating in commerce; 16% in real estate, renting and other similar activities; 10% in manufacturing; 6,8% in transport and communication; 5,6% in construction-work; 5,1% in agriculture, forestry and hunting; and 3,1% in hotels and restaurants. The rest are specialized in financial activities, power and other fields of activity.