The document contains 7 major actions aimed at improving the business environment for small and medium-sized enterprises:
1. improving the regulatory framework in the area of state control over entrepreneurial activity;
2. revision of the system of business sanctions;
3. developing a highly simplified tax regime for micro-enterprises and simple businesses. Simplification of other tax requirements;
4. drafting the methodology for the Micro-Enterprise Test and the regulatory amendments necessary for its implementation and enforcement. Initiate the process of reviewing the existing regulatory framework through the lens of the Micro-enterprise Test;
5. review labour legislation with a view to simplifying requirements for micro-enterprises;
6. Extend the scope of the legislation on unskilled casual work by day labourers;
7. develop a methodology for identifying the uncompetitive nature of the market and identifying interventions to stimulate competition.

Actions were identified by the Economic Council Secretariat following discussions with the business community, donor institutions and state institutions. Some of the proposals in the Roadmap are to be included in the Action Plan of the National Programme for the Promotion of Entrepreneurship and Competitiveness.

The Roadmap is an operational document developed for a short period of time – up to one year, the purpose of the document is to ensure greater participation and ownership of authorities and other stakeholders in identifying and promoting immediate and short-term solutions to reduce the regulatory burden on small and medium-sized enterprises.

The document will be regularly monitored with the participation of all members of the Advisory Council of MSMEs and updated as necessary, depending on the results of the implementation or promotion of the measures and the emergence of new needs.

12 May 2022 – The implementation of the actions in the Roadmap on Reducing Regulatory Burden for Small and Medium-sized Enterprises by 2022 is discussed by the Vice-Chair of the “Advisory Council for MSMEs” Liliana Busuioc, Executive Director of the Alliance of Small and Medium-sized Enterprises of Moldova and experts of the Economic Council Secretariat.

The document contains 7 major actions aimed at improving the business environment for small and medium-sized enterprises:
1. improving the regulatory framework in the area of state control over entrepreneurial activity;
2. revision of the system of business sanctions;
3. developing a highly simplified tax regime for micro-enterprises and simple businesses. Simplification of other tax requirements;
4. drafting the methodology for the Micro-Enterprise Test and the regulatory amendments necessary for its implementation and enforcement. Initiate the process of reviewing the existing regulatory framework through the lens of the Micro-enterprise Test;
5. review labour legislation with a view to simplifying requirements for micro-enterprises;
6. Extend the scope of the legislation on unskilled casual work by day labourers;
7. develop a methodology for identifying the uncompetitive nature of the market and identifying interventions to stimulate competition.

Actions were identified by the Economic Council Secretariat following discussions with the business community, donor institutions and state institutions. Some of the proposals in the Roadmap are to be included in the Action Plan of the National Programme for the Promotion of Entrepreneurship and Competitiveness.

The Roadmap is an operational document developed for a short period of time – up to one year, the purpose of the document is to ensure greater participation and ownership of authorities and other stakeholders in identifying and promoting immediate and short-term solutions to reduce the regulatory burden on small and medium-sized enterprises.

The document will be regularly monitored with the participation of all members of the Advisory Council of MSMEs and updated as necessary, depending on the results of the implementation or promotion of the measures and the emergence of new needs.

15 April 2022 – The National Programme to Promote Entrepreneurship and Increase Competitiveness for 2022-2026 and the Action Plan were presented today at the Advisory Council for SMEs. The document, developed in the framework of the EU project “Rural SME Policy Support Window” at the request of the Ministry of Economy, focuses on 5 directions: a favourablebusiness environment for the creation and operation of SMEs; Strengthening entrepreneurial culture and capabilities; Improving SMEs’ access to finance; Improving competitiveness and market access; and Facilitating technological exchange and innovation.

To achieve the objective of creating a business environment favourable to the functioning of SMEs, the authors of the project propose a series of actions including providing for arbitration and commercial dispute resolution, creating the possibility of online registration of companies, digitisation of customs procedures and implementation of an early warning system to prevent company bankruptcy, implementation of the “Second Chance” programmefor SMEs.

The objective of strengthening entrepreneurial culture and skills involves the implementation of actions such as the promotion of female entrepreneurship, entrepreneurship among migrants and young people, the development of the family business support programme and the social entrepreneurship programme.

According to the expert team of the Rural SME Policy Support Window project, the following recommendations need to be implemented in order to implement the third principle of Improving SMEs’ access to finance: Strengthen the capacity of SMEs and future entrepreneurs in financial education to encourage responsible borrowing and lending and Increase SMEs’ awareness of the financial resources and instruments available for the different stages of SME growth.

To achieve the fourth objective Improving competitiveness and access to markets, the Programme calls, among other things, for promoting SME access to export markets, supporting clustering initiatives and SME upgrading.

Facilitating technology exchange and innovation requires the development of a Technology Transfer Programme for SMEs, the creation of additional capacity in science and technology parks and research incubators, and raising SMEs’ awareness of the protection of intellectual property rights.

Attending the meeting, the Head of the Working Group of the Economic Council SME Advisory Board, Minister of Economy Sergiu Gaibu, said that the proposals presented by the experts are very valuable in the context in which the Ministry is promising a series of measures to support the business environment in Moldova.

Representatives of the business community welcomed the elaboration of the National Programme for the Promotion of Entrepreneurship and Increased Competitiveness for 2022-2026 and the Action Plan, asking for further proposals on the document to be considered and presented in the coming period.

Vice-Chair of the Advisory Council for SMEs Executive Director, Employers’ Association Alliance of Small and Medium Enterprises of Moldova Liliana Busuioc concluded at the end of the debate that all proposals of the business community on this topic will be collected through the Secretariat of the Economic Council, which will then be examined by experts in the process of finalizing the Programme. Once finalised the document will be sent to the Ministry of Economy and the Government for approval.

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.

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.

• EBRD launching online “hands on” guidance to help micro and small enterprises
• Platform provides expert advice on various topics including legal and financial matters
• Additional tailored guidance developed for Moldova

The European Bank for Reconstruction and Development (EBRD) is launching an online resource www.ghidulafacerii.ebrd.md with legal and business guidance to support micro, small and medium-sized enterprises (SMEs) to enhance their response to new challenges following the Covid-19 pandemic. The website also contains a separate section for Moldova that offers country-specific legal and financial guidance in local language, developed with financial support from the UK Government through the Good Governance Fund.

Join us on September 9 at the launch event the EBRD is organizing jointly with GGF, ODIMM, Economic Council to the Prime Minister, Gladei & Partners and Business Development Capital, to explore the tools offered by the website, and discuss the business environment in Moldova and opportunities for business development. Register clicking here.

The new website www.ghidulafacerii.ebrd.md offers expert guidance to help owners and managers of Moldovan SMEs to deal with suppliers, customers and employees, steer operational and financial challenges and navigate a restructuring process. The platform also provides businesses with legal guidance in corporate, employment and insolvency law, areas in which small business have strong demand for know-how and information. The website is structured around six modules or entry points:

1. Developing your business strategy
2. Managing your people successfully
3. Running your business successfully
4. Taking your business online
5. Keeping your business’s finances healthy
6. Restructuring your business finances.

Templates and cases studies support the guidance and help users to apply concepts in their day-to-day operations. No registration is required to use the site.

To produce the guidance for Moldovan businesses, the EBRD team worked closely with the Secretariat of the Economic Council to the Prime Minister and the Organization for Small and Medium Enterprises Sector Development (ODIMM) to create synergies, and together with other local business associations and organisations.

We consulted key stakeholders involved in the project. Steven Fisher, British Ambassador to Moldova, commented: “SMEs account for cca 30% of Moldovan GDP, 98% of all businesses and provide for more 330.000 jobs in the country.  The UK government is pleased to support this excellent initiative which will help those companies to survive and thrive, safeguarding the jobs and livelihoods of many thousands of Moldovan citizens.”

Angela Sax, EBRD Head of Moldova said: “The SME sector in Moldova is central to the country, including to employment and economic growth. This new initiative is yet another sign of our continued support for SME development through financing, advisory and technical assistance”

Finally, Iulia Costin, ODIMM General Director, stated that “this virtual platform for entrepreneurs is welcome and will be an important source of information

Based on the topics discussed and the questions offered by the participants, the publication “Emergency Legal Advice for SMEs” was elaborated, which includes practical guidelines necessary to identify the best course of action in circumstances of financial danger and commercial uncertainty caused by the Covid crisis. The publication can be accessed and consulted here: Emergency Legal Advice for SMEs

This initiative was organized with the support of the EBRD Small Business Impact Fund (Japan, Korea, Luxembourg, Sweden, Italy, USA, Switzerland and Taipei China).

Many countries in the region such as Bulgaria, Romania and Austria have opted to reduce the VAT rate in the HORECA sector either for a specified period, for example from 2020 to 2021, or for an unlimited period.

In the middle of 2020, the Secretariat of the Economic Council supported by the EBRD, the UK Government’s Good Governance Fund, and the International Finance Corporation prepares the Impact Study of the COVID pandemic on the economic sectors and the Policy Matrix. During this exercise, the experts spoke directly with representatives of economic sectors, including HORECA. One of the demands of companies in this field was to reduce the VAT rate.

Thus, the experts proposed in the Matrix with policies for the recovery of economic sectors, the reduction of the VAT rate for HORECA from 15% to 12%.

In 2019 the Parliament reduced the VAT rate for HORECA from 20% to 10%. According to the conclusions of the Impact Study of the COVID pandemic on the economic sectors and the Matrix with policies, the HORECA sector registered in 2019 double revenues from sales – from 215 to 469 million lei. Moreover, this measure contributed to the start of the process of “whitening” the sector, substantially increasing sales through accounting. Subsequently, the VAT rate was increased again, reaching 15% this year.

More than 100 entrepreneurs, consultants and representatives of state institutions learned about the experience of other states in overcoming the COVID-19 crisis and how it can be applied locally.

During the events, speakers addressed topics such as increasing business productivity through skills trained in the workplace, social dialogue and how it can help small and medium-sized businesses survive, and measures to be taken to ensure business continuity in times of crisis.

The events were organized by the Small Business Advisory Team, EBRD Moldova, in partnership with International Labor Organization and the Economic Council to the Prime Minister, with the financial support of the EU4Business initiative of the European Union.

Source: https://www.facebook.com/ebrd.asb.moldova/posts

Picture: https://www.facebook.com/ebrd.asb.moldova/posts

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.

Skills and productivity:

–          Why entrepreneurs should be concerned

–          Tool on increasing enterprise productivity through skills development

Skills development:

–          Staff development

–          Work-based learning

–          Apprenticeship

–          Entrepreneurial skills and competences

How can enterprises engage in influencing policy making?

–          Association building

–          Sectoral skills strategies

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 events are targeting  local SMEs and aim to raise awareness of the business environment by providing the necessary legal and practical assistance to identify the best course of action in circumstances of financial risk and commercial uncertainty caused by the Covid-19 crisis. In total, three webinars will be organized on the following topics: contractual issues and e-commerce; employment relations and compensatory measures; litigation and insolvency. Webinars are free. The “Emergency legal advice” project is supported by the EBRD Impact Fund for small businesses (Japan, Korea, Luxembourg, Sweden, Italy, USA, Switzerland and Taipei China).

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.