Slide 1

the SME revitalization of Vukovar-Srijem County

Vukovar Business Innovation Center (BIC) Project

The William Davidson Institute (WDI)Business Innovation Croatia (BICRO)

Slide 2

On Location in Croatia

Slide 3

Eastern Croatia’s War Devastation

A destroyed shoe manufacturing plant

UMBS/WDI office in Vukovar (the one on the right)

Downtown Vukovar

Slide 4

•Agriculture •Food Processing•Animal Breeding•Wood Processing•Wineries

IL, VK, VU, ZU

•FLAG•S. Fodor•Lateran Family

12

ResearchTracks

Industries

InterviewLocations

LocalExperts

TotalInterviews

•Retail Stores•Financial Services•Engineering•Custom Metals •Hotels & Tourism

IL, VK, VU, ZU

•Z. Ivanisevic

8

•Leather •Textiles•Construction

VK, VU, ZU

•D. Kadoic

8

•Graphics•Computer Tech•Agriculture Tech •Electronics•Radio, TV, Film

VK, ZU

•A. Radosevic, et al

6

•All industries

VK, VU, ZU

•Z. Cordasic, et al

6

Research Methodology

ResourceIntensive

KnowledgeIntensive

LaborIntensive

TechnologyIntensive

PotentialEntrepreneurs

Slide 5

Catch the Entrepreneurial Spirit

University of Osijek Presentation

June 15, 1999

SEAF Croatia

Newspaper ArticleNewspaper Article

Assessing the Entrepreneurial Interest

Slide 6

SME Needs Assessment

Coping with the Liquidity Crisis

Familiarization with Western Business Practices

Stability and Shelter

Capital Availability

Business Cooperation

Education Requirements

Slide 7

A New Approach to Development

GDP Growth Rates

6.5%

3.0%

1.3%

3.8% 2.1%2.8%

0.0%

2.0%

4.0%

6.0%

8.0%

1997 1998 1999

Croatia Eastern Europe

Economic DownturnEconomic Downturn War DevastationWar Devastation Ethnic TensionEthnic Tension

A Business Innovation Center (BIC)to develop the region’s

small and medium sized businesses (SMEs) and entrepreneurs

A Business Innovation Center (BIC)to develop the region’s

small and medium sized businesses (SMEs) and entrepreneurs

Slide 8

Vukovar Business Innovation Center (BIC)

VukovarHeadquarters& Incubator

IlokAdmin Office& Incubator

ZupanjaAdmin Office& Incubator

VinkovciAdmin Office& Incubator

VUVK

ZU

IL

Vukovar-Srijem County

Local Community

Local Business Network

Slide 9

Local Business Network (LBN)

Consulting•Business plans•Marketing plans•Management advice•Domestic contacts•International contacts

Consulting•Business plans•Marketing plans•Management advice•Domestic contacts•International contacts

Vukovar BIC Services

Training•Business plans•Marketing plans•Bookkeeping•Contracts•Computers/Internet

Training•Business plans•Marketing plans•Bookkeeping•Contracts•Computers/Internet

LBN Support•Low-cost business support services •Internet cafe•Contacts database•Training seminars

LBN Support•Low-cost business support services •Internet cafe•Contacts database•Training seminars

Local OfficeAdmin Office& Incubator

Incubator•Offices/conf. room•LAN computers•Internet access•Photocopying/fax•Receptionist

Incubator•Offices/conf. room•LAN computers•Internet access•Photocopying/fax•Receptionist

Financial•Accessing credit•Financial/tax advice•Accounting support•Financial software

Financial•Accessing credit•Financial/tax advice•Accounting support•Financial software

Slide 10

BIC Cluster Development

AgribusinessAgribusiness

HerbsHerbs

EquipmentLeasing

EquipmentLeasing

LocalProduce

LocalProduce

RegionalSpecialties

RegionalSpecialties

Freezingor Drying

Freezingor Drying

SupplyStores

SupplyStores

WebsiteDesign

WebsiteDesign

BusinessSupportServices

BusinessSupportServices

MarketResearch

MarketResearch

GraphicDesign

GraphicDesign

AccountingServices

AccountingServices

ShippingShipping

WarehouseWarehouse

LegalServices

LegalServices

CateringCatering

WoodProcessing

WoodProcessing

DryingDrying

SawmillSawmill

Design &Marketing

Design &Marketing

WoodWorking

WoodWorking

RelatedMaterials

RelatedMaterials

ForestryMgmt.

ForestryMgmt.

LoggingLogging

Grading &Selling

Grading &Selling

Slide 11

Agribusiness Cluster and the Value Chain

SpecializedTransport

SpecializedCooperatives

EquipmentSuppliers

ChemicalTreatments

Organic Specialists

Medical Herbs

Agritourism

FoodProcessing

Wines &Spirits

VeterinaryServices

SeedSuppliers

StorageFacilities

ImportExport

SpecializedMarketing

RAW GOODS FINISHED GOODS

ExportCrops

MARKET

Research Education Training Advocacy

Slide 12

Project Partners as Knowledge Pools

Knowledge PoolsKnowledge Pools

LBN

BICStaff &

Consultants

SEED

WDI/UMBS

BICROTechnology

Centers

Univ.of Osijek& Zagreb

CountyChambers

FinancingInstitutions

Slide 13

A Results-Oriented Project

• Incubator tenants served• SMEs served in the LBN• New businesses created• New jobs created• Improvement in new business success rate

Measurable Results

Finding an excellent General

Manager

Getting the LBN to

scale quickly

BIC reflecting

community goals

Key Success Factors

BIC staff reactionary not forward-looking

Companies not accessing

credit

Companies notcooperating

Project Risks

Slide 14

UMBS and SME Development

Business Innovation Center (BIC) Potential Worldwide

Post-Conflict RegionsPost-Conflict Regions

NicaraguaZaire

Colombia

South Africa

Vietnam

Lebanon

Kosovo

Uganda

Transition EconomiesTransition Economies

Honduras

Indonesia

China

India

Peru Namibia

Philippines

Russia

Uruguay

Morocco Pakistan