SMEPASS2 Seminar

Provision of Advisory Services to SMEs
Phase II
Awareness Raising Seminar
November 2013

Ulaganje u budućnost
This project is co-funded by the
European Union from the European
Regional Development Fund

Ministry of Entrepreneurship and Crafts
Main Project Partner / Beneficiary Institution

Dear participant,
Thank you very much for participating in our seminar. We were very happy to
have you with us here today. Your attention and interest were greatly
appreciated.
As promised please find attached a training brochure containing all materials
that were presented during the seminar. If you need any further information
or clarification feel free to contact us on info@smepass2.eu. Please also visit
our website www.smepass2.eu frequently and stay informed and up to date
regarding all of our activities. Please also spread the news among the wider
SME community in your region about the availability of free advisory services
in quality management, marketing and product development.
We are very much looking forward to receiving your on-line application.

See you soon on www.smepass2.eu
Sincerely yours,
Stephen O´Mullane
Team Leader SMEPASS II Project



Module I
Introduction to the SMEPASS II Project
Mr. Stephen O’Mullane
Project Team Leader



Overall Objective
 To increase the competitiveness of Croatian SMEs through the provision
of high quality busines support services

Purpose
 To promote business advisory services to SMES and to provide direct
business advisory services to selected SMEs

Timeframe
 The project commenced on 1st July 2013 and will conclude on 30 June
2015.


Component I
 To promote the Project through an Awareness Raising Campaign that
includes a media campaign, promotional materials and promotional
seminars and workshops

Component II
 Provision of advisory services in Marketing/Product Development and
Quality Management to a minimum of 150 SMEs

Component III
 Project pipeline preparation assisting a minimum of 10 SMEs in the
preparation of documentation in response to Calls for Proposals for
EU Structural Funding of projects


How do SMEs gain access to Project Assistance ?
The application and selection processes has been carefully designed to be
fair and transparent, affording all interested SMEs the opportunity to
access Project assistance.

Component II Access
Via the Project website (www.smepass2.eu) by registering and by completing
and online Application Form.

Component III Access
In response to Calls for Expressions of Interest issued by the Ministry of
Entrepreneurship and Crafts



Access Gateways
Component II Access

Component III Access

There are three access gateways
under Project Component II. These
are:

There is one and possibly two
access gateways under Project
Component III. These are:

1. December 2013
(Intake of a minimum of 50
SMEs)

1. May 2013
(Intake of 20 SMEs project
proposals)

2. June 2014
SMEs)
3. December 2014
SMEs)

There may be a second intake
coming from a Call for
Expressions of Interest in 2014.
This remains to be decided.



Why should an SME become involved ?
Component II Benefits

Component III Benefits

Free access to highly competent
Croatian and EU consultants who will
assist selected SMEs in:

Free access to highly competent
Croatian consultants who will assist
selected SMEs in:

Marketing
Sales & marketing
audits

Market analysis
Marketing Plan

Quality Systems
Quality auditing
Basic quality management

Total Quality Management

Access to Structural Funds
Preparation of documentation
required to successfully meet all of the
requirements necessary in accessing
grant funding to co-finance projects.

Compliance with EU
regulations

International sales
promotion & marketing Customer satisfaction
Branding
Continuous improvement
E-Commerce

systems

Product development


Where will the Consultants come from?
 The Project is resourced with a total of 3,950 working days of consultant
time.
 Individual consultants will be contracted to address developing
requirements for assistance in beneficiary SMEs
 The SMEPASS II consultant team will be an optimal blend of consultants
from Croatia and other EU member states

How will Consultants be selected ?
 Consultants will be selected through a robust open and transparent
process.
 They will apply for consideration via a dedicated webpage on the SMEPASS
II Project website.
 Their qualifications and experience will be vigorously cross-checked to
ensure that their competencies are the perfect match for the individual
requirements of SMEs with which they will work.


Croatian SMEs that have a genuine desire to

improve their market penetration on home and
international markets

are encouraged to apply !



Module II
What is required…..
to successfully enter the EU market
and/or
to defend your position on the Croatian
market?
Juergen Mendritzki, KE Marketing
Fernando Fernández Gómez, KE Quality Management



Advantages from the EU Accession

•
•
•
•
•

Croatia is part of the internal EU market
Free trade with all Member States.
Free movement of goods
Free movement of capital.
Free movement of EU workers and
services
• Facilitation of cross-border payments

Source: European Commission - MEMO/13/629 28/06/2013


Consequences of the EU Accession
• Croatian consumers have access to more products of
better quality and at a lower cost.
• The single market is offering new opportunities for
partnership and networking with similar industries and
sectors.
• The accession of Croatia boosts opportunities in terms
of public procurement.
• Market opening will increase competitiveness on all
markets and so also on the labour market.
• Structural funds will provide access to finance for
businesses and support them to be more competitive.
Source: European Commission - MEMO/13/629 28/06/2013


Croatian SMEs Have to Cope with
New Challenges
„Hard“ Management Factors

Chance to
enter new
markets in
the EU

•
•
•
•
•
•
•
•

Need to
defend the
home
markets

•
•
•
•
•
•

Compliance with EU regulations and laws
Certifications
Identify new markets
Understand market requirements
Define entry/expansion strategy
Implement strategy, funding
Find new business partners
Comply with partners´ requirements

Differentiate
Match competitors marketing mix
Improve product /service quality
Find new sales channels,
Find new business partners
Develop new products

• Vision and ambition
• Entrepreneurial initiative
• Willingness to learn
(new skills, E4E)
• Flexibility
• Openness to ideas
• Commitment
• Willingness to take new
ways
• Willingness to invest time,
energy and money
• Continuous effort



What are the Challenges for Your Company
on Your Home Market?
• Stronger competition by cheaper foreign products with better quality
• Foreign companies with strong brands and strong B2C and B2B marketing
• Foreign companies with more favourable cost basis, good logistics systems

Risk that customer loyalty/preference for traditional
domestic products/producers will further decrease!

Need for (more) active marketing on the home market


Increased Competition is Challenging
Croatian Companies´ Marketing Mix
Product

Place

The Four “P”s

Advertising

Sales Promotion

Publicity

Price

Public Relations

Personal Selling

Promotion


Your Company Has to Find Answers to
Important Marketing Questions
• How do I compare with my competition?
• How can I identify and choose profitable
market segments in Croatia and/or
abroad?
• How can I enter new sales channels?
• How can I better differentiate my offer
from my new or old competition?
• How should I react to competitors?
• How can I satisfy my customers and build
brand loyalty?
• Which prices should I set?
• Do I need to spend money on promotion?



Are You Doing Marketing?
…….actually it is something that you
are doing everyday, ……hopefully.

1. Finding out what potential
customers need/want
Making
products
available
that satisfy
customers

2. Designing the product and
setting a price to make it
interesting and desirable to
customers

Earning
money
with it

3. Letting potential customers
know about you and your
product
4. Making it available to potential
customers




New Products? New Markets? Both?
None of them?
.

New
Competitiveness
• Quality
• Marketing
• Innovation
• Productivity
• Supply Chains

Products/
Processes
Old

•
•
•
•
•

Product/Process Innovation
Value/Supply Chain optim.
Marketing
Certification
QM Systems

•
•
•
•

•
•
•
•
•

Value chain improvement
Quality improvement
Marketing
Certification
25
QM Systems

•
•
•
•
•
•

Old

Product/Process Innovation
Export Strategy
Export Marketing/Netwkg
Start-up support?
• Certification
• QM Systems
Quality Improvement
Product Certification
Export Strategy
Export Marketing
Certification
QM Systems

Markets

New



Why exporting?
12 Advantages of Exporting for a Croatian SME
.

1. Larger and more sustainable demand
2. Lower per unit costs
3. Increased profits

4. Compensation for seasonal demands
5. Selling excess production capacity
6. Inflow of know-how and technologies
7. Improvement of productivity & quality

8. Diversification
9. Enhanced domestic competitiveness
10. Potential for company expansion

11. Product life cycle extension
12. New financing opportunities



The European Union is the
Most Attractive Market in the World
.

• 500 million inhabitants in 28 countries
• An economy worth 11 trillion Euros
(28.8% of the world economy)

• The World´s biggest trading entity:
(22.8% of world trade in goods, 27% world trade in services)
• The main export market for some 130 countries around the globe
• A single market: no internal borders for goods, services, capital, people
• Common policies and regulations
• A single currency, the Euro, already used in 17 Member States



What are the Challenges for Your
Company in Other EU Countries?
.
•
•
•
•
•
•
•
•

Markets are very developed and demanding
Customers in different countries have different preferences
Most market niches are already occupied
Sales channels are filled with well accepted products from
established companies
Convincing distributors to choose you as supplier requires
persistent marketing efforts
Low-price strategy is not a sustainable option for you
Consumers must be attracted by different/new/innovative
products (differentiation)
B2B customers require B2B marketing, service, flexibility,
reliability and excellent Quality Management

Risk that your present offer is simply not
interesting for the chosen market segments

Need for export marketing


Is Your Business Ready to Export?
.










Management's commitment to exporting
Skills in international business
Language and communication skills
Financial resources
Technical know-how
Capacity to manufacture / supply
International market intelligence
B2B marketing capacity



In Most Cases B2B is Needed for Marketing:
5 Things to Do First Where SMEPASSII Can Help
.

• Branding: You need a memorable brand identity to differentiate your company from competitors
and communicate the highest value you deliver. Create a logo, a positioning tagline, and key messages to be
used in all marketing materials.

• Website: Every prospect who considers your company looks at your website. Create a site that
explains what you do and how you do it. Fill the site with content that demonstrates your knowledge and
expertise. Invite response with a call to action on every page. Make the site easy to use and worth a return visit.

• Database: Your business needs an accurate, easy-to-access database of customer and
prospect information for targeted marketing tactics like email and direct mail. Build your database using a
platform that’s suited to your type of business and keep it current.

• Sales presentation: The B2B sales process often involves face-to-face meetings
with prospects. You need to walk into those meetings with a great presentation of your capabilities. Develop an
engaging PowerPoint presentation about your services and how you can help the prospect succeed. Later, you
can add video and use more sophisticated tools, but PowerPoint is the easiest place to start.

• Sales collaterals: When you leave a prospect meeting – and sometimes before you
meet – you need to give prospects information about your company that they can review and share with others.
Start with a capabilities brochure, then develop a carrier or folder with inserts for testimonials, case studies,
biographies of your team, or a client list.


Module II a
What is required…..
to successfully enter the EU market
and/or
to defend your position on the Croatian market?

Quality Management
Fernando Fernández Gómez
Key Expert Quality Management



Which are the Main Challenges Regarding Legal
Requirements Coming from EU Accession?
From the Quality Management point of view, Croatian SMEs will
face new situations by the entry into the EU:
Legislative changes not only in the content of
laws but in their enactment.

TO CREATE A COMMON
MARKET

Standardization of products & services will be TO AVOID DISPERSION OF
carry out by European Standards Committees. THE COMMON RULES

Trade of certain products requires from the
manufacturer’s declaration of compliance with
EU legislation (CE marking)

TO ENSURE USERS’ SAFETY

These changes are affecting your company
in order to be in the market, even if you are
not exporting your products/services


Legislative Acts in the EU
 Binding legislative acts: not requires transposition into national
law
 Regulations
 Decisions
 Non binding legislative acts: requires transposition into
national law, so changes can be made at national level
 Directives
 Recommendations
 Opinions

You should establish a responsible person
in your company to identify applicable
requirements to your product or service
 http://europa.eu/legislation_summaries/index_en.htm


Legislative Acts in the EU
Actually there are European legal dispositions over:
SERVICIES

PRODUCTS

Financial

Toys

Liberal professions

Machines

Road transport

Pressure equipment

Marine Transport

Medical devices

Air Transport

Electrical and electronic equipment
and gas appliances

E-commerce

Boats, recreational crafts

Postal

Pharmaceutical and cosmetic products
Chemical products
Motor vehicles
Construction Products



How does Standardization Affect Your
Company?
• Along with the principle of mutual recognition, standardization plays a
central role in the proper functioning of the internal market in EU.
• Generally speaking, the compliance with most of the product or
service European Standards (EN) is voluntary.
• Except when is required by European Directives and Regulations, the
requirements to comply with are in harmonized EN Standards, e.g.,
Directive 2009/48/EC toys requires compliance with EN 71-1, EN 712,...
• As an SME, is important to know which specifications are required in
those harmonized EN standards.

http://ec.europa.eu/enterprise/index_en.htm


Who Elaborates the European Standards?
• Harmonized EN standards help ensure the free movement of
goods within the internal market and allow enterprises in the EU to
become more competitive.
• To avoid dispersion regulations, standards are developed by working
groups in the Technical Committees at European Standardization
(CEN, CENELEC, ETSI).
• SMEs as users of the EN standards should participate in the
standardization process, the specifications are define there.

• The representation of SMEs in the standardization committees is
usually channeled through sector associations or Competent
Authority of each Member State.



What do These Products Have in Common?
What does CE Mean?



Marking
• CE marking, the product is assessed before being placed on the
market and meets EU safety, health and environmental protection
requirements.
• Harmonized EN standards establish the minimum specifications to be
met by the products.
• It is manufacturer’s responsibility to:





Carry out the conformity assessment
Set up the technical file
Issue the EC declaration of conformity
Affix CE marking on the product.

• Notified Body (NB) are authorised to carry out the independent
conformity assessments when is required.

NANDO database of notified conformity assessment bodies:
www.ec.europa.eu/enterprise/newapproach/nando


Marking
Certification
System

Manufacturer
responsibilities'

NB duties

CE marking documents

Initial Type testing
4

Declaration of compliance
Factory Production Control FPC

3





2+, 2


FPC Assessment
FPC Certificate

Testing Results conforming FPC

1+, 1

FPC Assessment
Testing Results conforming FPC

Testing audit samples

Product Conformity
Certificate



CE Marking: List of Directives & Regulation
Regulation (EU) No 305/2011 - Construction products
89/686/EEC Personal protective equipment
90/385/EEC Active implantable medical devices
92/42/EEC Hot-water boilers
93/15/EEC Explosives for civil uses
93/42/EEC Medical devices
94/9/EC Equipment and protective systems intended for use in potentially explosive atmospheres
94/25/EC Recreational craft
95/16/EC Lifts
96/98/EC Marine Equipment
97/23/EC Pressure equipment
98/79/EC In vitro diagnostic medical devices
99/5/EC Radio and telecommunications terminal equipment
2000/9/EC Cableway installations designed to carry persons
2000/14/EC Noise emission in the environment by equipment for use outdoors
2004/22/EC Measuring Instruments Directive
2004/108/EC Electromagnetic compatibility
2006/42/EC Machinery
2006/95/EC (ex-73/23/EEC) Low voltage directive
2007/23/EC Pyrotechnic articles
2008/57/EC Interoperability of the rail system within the Community (Recast)
2009/23/EC (ex-90/384/EEC) Non-automatic weighing instruments
2009/48/EC Safety of toys
2009/105/EC (ex-87/404/EEC) Simple pressure vessels
2009/142/EC (ex-90/396/EEC) Appliances burning gaseous fuels
2010/35/EU Transportable pressure equipment
Regulation (EU) No 305/2011 - Construction products
Decision 2009/750/EC (implementing Directive 2004/52/EC) - Interoperability of Electronic Road Toll
Systems
Regulation (EC) No 552/2004 - Interoperability of the European Air Traffic Management network

……
……
….



Module III a.
What can SMEPASS II experts do for an SME?
- The project’s advisory services -

Marketing
Juergen Mendritzki
Key Expert Marketing


SMEPASS II Marketing Advisory Support
offer
1. Sales and marketing audit
Basic

2. Market Analysis

3. Practical Marketing Plan
Medium

4. eCommerce and website

5. Branding
Advanced

6. International sales promotion and
marketing


Benefits from SMEPASS II
Marketing Audit Service
• How good is your marketing?
• Find out how your company performs in the market
compared with old/new competitors
• Find out why competitors are gaining market share
• How do you meet customer expectations/requirements?
• Are you ready for export?
• On which strengths can you build?
• Which weaknesses do you need to overcome?


Market Analysis Services
• Which profitable market segments exist that you could
serve?
• Understand your markets better to serve them better
(possibly as a SMEPASS II service for all companies from the same
sector)

• What do the markets require/expect from you?
• Training on how to conduct market research



Practical Marketing Plan Service
• How to enter the right market segments
• Plan your export marketing for EU markets
• Manage sales and marketing activities in your home
market better
• Develop a plan to fully exploit existing sales channels
• Develop a plan to enter new sales & distribution
channels



Benefits from SMEPASS II Branding Service
• Ensure customer loyalty and Improve your chances on
the market through a branding strategy
• Brush up your existing brand (name, logo, identy
system)
• Design a new brand (including basic identity system)
• Build awareness of your brand in the market
• Implement your brand guidelines
• Design/review basic promotional material to address
target customer segments


Benefits from SMEPASS II eCommerce and
Website Services
• Build your website
• Develop your website to a marketing and sales tool.
• Use the internet to offer your products/services and
to attract customers
• Get a basic system to handle business via the
internet



Benefits from SMEPASS II International
Sales Promotion and Marketing Services
•
•
•
•
•
•
•

Search for business partners or strategic partner
Arrange the contact with potential partners
Prepare the sales pitch
Get support for negotiations with new partners
Get help to make you fit for the first export deliveries
Prepare for trade fair participation
Get training on how to deal with foreign customers



Module III b.

Product Development
Project Team Leader


Are you bringing the right
product to market ?

Is what you are selling
what your target market
really wants ?

Any customer can have a car
painted any colour he wants, so
long as it is black !!
Henry Ford

Are you conscious of the needs of your customers ?
If so, how ?
Do you perform surveys of your customers satisfaction levels ?


The Link between Product Development and Innovation
IMP3ROVE Innovation Assessment Tool
Innovation
Strategy

PRO INNO Europe® Initiative
www.improve-innovation.eu

Innovation
organization
and culture

Innovation life
cycle management

Idea
management

Product and
process
development

More efficient
Launch /
continuous product & process
development
improvement

Marketable
Product



What the SMEPASS II Project can do for your SME in
the field of Product Development!
 Assess your product’s fitness for purpose on existing and new local,
national and international markets.
 Assist you in redesigning and refocusing your product offering
 Assist you in embedding innovation practices in order to ensure
continuous improvements in product design.

If this is of interest to you, please tick the box alongside Product Development
on your online application for assistance under the SMEPASS II Project.

 PRODUCT DEVELOPMENT


Module III b.

Quality Management
Fernando Fernández Gómez
Key Expert Quality Management


Which of these cars has the better Quality?



Definition of Quality
We can not answer that question so easily, in our common language
we associate Quality with Excellence
But from a more technical point of view Quality should be understood
as “Level of Quality”, so a possible definition could be:
Quality of a product or service refers to the perception of the degree
to which the product or service meets the requirements.

But who establish the requirements or specifications to be met?



Quality specifications

Customers Requirements’

MARKET

Standards

VOLUNTARY

Regulations

LEGAL



SMEPASS II Quality Management Systems
offer
Quality Management Services offered by SMEPASS II

1. Basic QMS design and training

Basic

2. Quality Audit
3. Compliance with UE Regulations
Medium

4. Satisfy the quality requirements of your
potential customers
5. Continues improvement oriented systems
Advanced

6. Total Quality Management (TQM)



Benefits from Basic QMS Advisory
Service



•

Increase quality culture in the company

•

Getting used to work in a systematic way

•

Clearly define responsibilities within the company

•

Implement quality control, reduction of non-quality costs

•

To serve as a starting point for implementation of QMS



Benefits from Quality Audit Service
• Detecting weaknesses in quality control
• Identify opportunities for improvement in:
Inspections control points in the production process
Control equipment used
Production Equipment
Raw materials (acceptance criteria, suppliers evaluation)
Training (identify training needs)

• Establish a plan of action to correct the detected deviations


Benefits from QMS Oriented to Compliance with EU
Regulations (e.g. CE marking, HACCP)

Get used to work with EU Regulations:
 Identify the requirements
 Compliance self-evaluation of the requirements
 Define actions plans to solve the non compliances
Avoid legal conflicts

Be able to legally commercialize our products within EU
Note:

It is important to note that in order to affix the CE marking to some products, European
legislation makes it mandatory that a Notified Body Control perform the tasks required by the
reference standard. The costs of the inspection process may not be covered by this project.
Only advisory for the implementation of the management system required by the CE marking.



Benefits from QMS oriented to Satisfy the Quality
Requirements of Your Potential Customers (e.g. IFS
protocol, FSC- CoC)

• Avoid legal conflicts
• Be able to achieve customers requirements
• Gain market share and access foreign markets thanks to
the trust it generates among clients and consumers

• Eliminate multiple customers audits (costs saving)
• Increase confidence, an access to quality agreements with
customers and suppliers



Benefits from the Implementation of QMS
(e.g. ISO 9001, ISO/TS 16949)
•
•
•
•

•

Avoid legal conflicts
Be able to achieve customers requirements
Eliminate multiple customers audits (costs
saving)
Gain market share and access foreign markets
thanks to the trust it generates among clients
and consumers
Access to quality agreements with customers
and suppliers





ISO 9001

ISO 16949

•

Improve efficiency and effectiveness of our
Company’s processes

•

Increase client satisfaction


Benefits from the Environmental
Management Systems (ISO 14001)
•

Optimise the management of resources and waste

•

Reduce environmental damage from its activity

•

Minimise the risks associated with accidental events

•

Reduce the costs of waste management and insurance
premiums

•

Eliminate barriers to exports

•

Reduce the risk of litigation and sanctions


ISO 14001



Benefits from the Total Quality
Management (TQM)

•

Identify the best practice in a certain production process

•

Identify what to produce and how to do it

•

Change the functional approach by the process approach

•

Be able to do cost benefits analysis



Module IV
How to work with a consultant
Juergen Mendritzki



Management Consulting is…..
…the practice of creating value for
organisations,
through improved performance,
achieved by providing objective advice
and
implementing business solutions.
In other words, management consultants help take organisations further than
they would go on their own.
They do this by solving problems, providing outside perspective, and enhancing
business capability. Management consultants bring niche skills and a breadth of
experience into organisations, which is often useful for specific projects but not
for an organisation to employ full time.
Source: Management Consulting Association , UK


A Typical Consulting Project Consists of 5 Steps
• Priorities
• Terms of Reference
• Selection of expert

1. Agree on
needs and sign
MoU

2. Data
gathering and
problem analysis

• In-house
• Out-house

3. Recommendations, get
approval

Number of expert
days depending on
company size and
complexity/difficulty
of advisory services

• Report

4. Action
planning, get
approval
5. Implementation support,
coaching

• Action plan
•
•
•
•

Frequent visits
Assistance
Review
Training



What is a Successful
Consulting Assignment?
 Desired outcomes and results listed in the project
agreement are achieved.
 The client’s problem is solved.
 The project is finished on time and within budget.
 The consultant and the client maintain a high-quality
working relationship.
 The client learns to address similar problems by
themselves in the future.
 The client says that they would hire the consultant
again


Marketing Consultants can Deliver
Substantial Value to a Company
Case: Company B is a young textile manufacturer run by a couple in their early 40ies.
The company employs 30 people and is outsourcing some work. Their products were mainly sold in the domestic market in the
lower-to-middle price segment to middle-aged consumers. The company was competing on price and durability. It is directly
sourcing its raw material and employs a part-time designer.

The company entered the
The expert was contracted to reposition the company and to help them start exporting.
international market and gained
immediately orders from leading W
Why did it go well?
European Department stores and
THE OUTPUT
THE EXPERT and THE CLIENT
store chains. Private A marketing and market entry strategy
• label business
 Marketing expert with fashion industry background
• A new started.
 Company owners available „around the clock“
with international brandsbrand and a new identity system
Active exchange of ideas during the whole process
Consultant accepted as „part of the team“
Some money invested into marketing material,
Trade fair participation
Sample designs tested in the market
Owners travelled with consultant to see potential
customers
 Consultant helping Owners to do sales calls







•
•
•
•
•
•
•
•

Website, company brochure and other material
Product quality substantially upgraded
New products and designs
Pricing strategy for international markets
Owners trained in international sales management
International trade fair participation
Contacts with Western European buyers established
Product samples were sent



When do Consulting Projects Fail ?
•
•
•
•
•

Trying to solve the wrong problem
Failure to manage client´s expectations
Lack of understanding the client´s industry
Lack of communication
Changing the scope of the assignment (goal,
deliverables) in mid-stream.
• Over-charging the client through unrealistic scope of
change
• Lack of implementation capacity



Example: What Can Go Wrong and Why?
Case: Company B is a food producer with 40 employees.
The company has been producing the same type of products for 25 years. It was selling them mainly on the regional
market though traditional independent grocery stores. Its main customers are mostly elderly people who are accustomed to
A´s products. The company was loosing substantial market share against imported food stuff.

An Expert was contracted to develop athe project the strategy.
At the end of sales and marketing

company stated that they were
What went wrong?
not satisfied with the results.
THE EXPERT and THE CLIENT expecting more than
The OUTPUT
They were
• Expert: Generalist with limited experience in the
• A very general strategy not specifically
„justas manager
paper“
the food sector, never worked
addressing the needs of the company
• Objectives and process not clearly defined
• Owner changed task from marketing strategy to
quality improvement after3 weeks
• Owner frequently canceled meetings
• Staff was not involved, forbidden to talk with expert
• Information on company not disclosed
• Expert Producing many pages of reports
• No feedback from owner on papers and reports
• Expert saw his role only in producing concepts but
not in supporting implementation

•
•

Reports
No discussion about an action plan took
place



Basics of How to Work with a Consultant (1)
THE CLIENT:
 Agree on objectives, schedules and outputs in the beginning
 Clearly articulate your expectations
 Don´t change the scope of the assignment in the middle of the
process
 Agree on how to measure the success of the assignment
 Show commitment and allocate enough own time
 Be available during the whole assignment
 Do not leave the consultant in a vacuum
 Do not delegate the responsibility for the assignment
downwards
 Inform your staff about the assignment
 Allow the consultants to talk with your staff


Basics of How to Work with a Consultant (2)
THE CLIENT:
 Arrange interviews and travel schedules to most efffectively
use the consultant´s time
 Be open and provide information on your company, markets
etc.needed to complete the assignment
 Determine in advance whether the consultant´s work may
require access to confidential information
 Carefully read the reports and give immediate feedback
 Stick to agreed schedules (meetings etc.)
 Be open for positive and negative results
 Articulate any criticism during the process and not at the end
 Take the agreed action plan seriously and implement it
 Ask for coaching


Module V
Concept of Education for Entrepreneurship
(E4E)
Project Team Leader


Education for Entrepreneurship
Goals:
 Creation of a life-long learning system reliant on the continuous
employability concept, in line with labour market developments
 Articulation of a policy for enhancement of human resource
development in companies, in line with new economic
developments
 Development of an integrated entrepreneurial education system.
 Creation of a concept and curriculum through an integrated
approach to entrepreneurial learning, across all segments of the
education system


Current Policy on
Atriculated through the National Strategy for Life-long Entrepreneurial
Learning (including delivery Action Plan and covering the period 2010-2014)

The primary objectives of the National Strategy for Life-Long
Entrepreneurial Learning are:
 Sensitivity and creativity of positive attitude to Life-long
Entrepreneurial learning
 Entrepreneurial learning as a key competence in all forms and levels of
education
 Forum for members of the national Council of E4E which is located in
the HGK office in Zagreb – sharing information about events and
coordination of activities


Activities and Target Groups for
National Co-Ordination Unit

delivered by

 Development of sensitivity and positive attitude towards Life-long
Learning through workshops, presentations...
 Running of seminars for unemployed on Start Your Own Business.

 Organising Childrens Entrepreneurship Week.
 Organising Academic Entrepreneurship for the Knowledge Economy.

 Performance of Training Needs Analysis among the wider community
 Delivering Entrepreneurship Education for Craftsmen.
 Participation in international conferences on entrepreneurship.


Members of the Co-Ordination Group for
 Ministry of Entrepreneurship & Crafts
 Ministry of Science, Education and Sport
 Ministry of Agriculture
 Ministry of Regional Development & EU Funds
 Ministry of Tourism

 Chamber of Economy (HGK)
 Chamber of Crafts (HOK)
 Employers Association
 Employment Service


Module VI
How to apply for advisory services
Juergen Mendritzki



The Application and Project Preparation
Company

Application
form

Evaluation
and selection

Visit by project
Key Experts

Terms of Reference
for expert

Selection of
Expert

Agreement with
company

Start of
consulting
work



How to apply ?
 On-line Application
 Forms on www.smepass2.eu
 Registration

 3-page application
 Mostly Yes/No answers

 45 -60 minutes needed


SMEPASS II Website: www.smepass2.eu



SMEPASS II Application Form
Which of the following services you think you need to improve your competiveness?
A= high importance, B = Medium importance, C= Low importance, D =No interest/need
Quality Assurance
Quality audit
Basic quality management:
Total Quality Management (TQM):
Compliance with EU regulations

Marketing & Product Development
Sales and marketing audit
Market Analysis
Practical Marketing Plan
International sales promotion and
marketing

Satisfy the quality requirements of
your (potential) customers
Continuous improvement oriented
systems

Branding:
eCommerce and website:
Product Development

Other Support Areas
Please specify other advisory services which could help improving your company´s
competitiveness!
Please specify type of advisory service

What would be the benefits to your company?

Additional Training Needs

The Project also considers offering a number of short regional trainings if there is enough
demand.
Please specify areas where training would be of benefit to your company:
Please specify type of training

What would be the benefits to your company?

SMEPASS II Application Form

Basic Information
Size and Profitability of Company
Ownership of Company
Debts and Solvency

Previous project support and experience with consultants
Previous public financial support
Products/services
Sales & Marketing

Finance
Quality Management System
Organization and Management
What strategic direction will your company take until 2020
Why do you apply for advisory services?
Which of the following services you think you need to improve your competiveness?
A= high importance, B = Medium importance, C= Low importance, D =No interest/need
Quality Assurance

Marketing & Product Development

Other Support Areas
Additional Training Needs
Expectations


Client´s Clear Commitment is Requested
Management Commitment

Are you interested in participating in an explanatory seminar about the
above mentioned advisory services?
Are you willing to discuss your application with an expert visiting your
company
Are you willing to provide all information to the consultant necessary to
provide the service
Are you are aware of and prepared for the fact that successfully
working with consultants requires a clear commitment from your side
and dedication of a substantial portion of your own time over a period
of up to 9 months.
Are you prepared to sign a Contract with the Ministry of
Entrepreneurship and Crafts about the provision of the advisory
services which is stating the mutual obligations and with an action plan
attached?
Are you prepared to appoint a senior member of your staff acting as
day-to-day contact for the consultant providing the advisory services?
Are you prepared to provide information about the quality of the
advisory work and its impact on the performance of your company?

Yes O No O
Yes O No O
Yes O No O

Yes O No O

Yes O No O

Yes O No O
Yes O No O



Module VII
Overview of EU Structural Funds
Project Team Leader



Common Strategic Framework for Cohesion Policy 2014-2020
Improve coordination and secure a more targeted use of EU
Structural Funds under the following funding mechanisms:
 European Regional Development Funds
 European Social Fund

 Cohesion Fund
 European Agricultural Fund for Rural Development

 European Maritime and Fisheries Fund


Direct assistance to SMEs focused on Europe 2020 priorities
- Europe 2020 is a policy document that lays our three strategic
objectives

 Smart growth developing an economy based on knowledge and
innovation
 Sustainable growth promoting a more resource efficient, greener and
more competitive Europe
 Inclusive growth fostering a high employment economy delivering
economic, social and territorial cohesion

http://ec.europa.eu/eu2020/pdf


Specific Goals in the development of Entrepreneurship in
Croatia
 Providing better support to the development of competitiveness by assisting the
sustainable growth of productivity, reinforcement of and ability to compete in
international markets and improving key elements ensuring a positive business
climate as a way of increasing regional competitiveness and faster economic growth

 Improving SMEs efficiency and productivity levels by supporting investments
related to innovations in production processes and introducing the results of R&D
into production leading to an increase in development potential for new and
competitive products
 Improving the quality of and expanding of tourism products by raising the
efficiency of SMES in the tourism sector through the improvement of
accommodation facilities, structure and accompanying complementary
infrastructure, thus contributing to the quality of the tourism offer, increasing the
occupancy rate and consequent increase in employment


Thematic Objectives in Delivering Europe 2020
 Currently under negotiation between Croatia and the European
Commission under the following thematic headings:
1. Strengthening research, technological development and innovation
2. Enhancing access to and use and quality of ICT
3. Enhancing the competitiveness of small & medium sized enterprises, the
agricultural sector and the fisheries and aquaculture sector
4. Supporting shift towards a low-carbon economy in all sectors
5. Promoting climate change adaptation , risk prevention and management
6. Protecting the environment and promoting resource efficiency
7. Promoting sustainable transport and removing bottlenecks in key
network infrastructure
8. Promoting employment and supporting labour mobility
9. Promoting social inclusion and combating poverty
10.Investing in education, skills and lifelong learning
11.Enhancing institutional capacity and efficiency in the public administration



3. Enhancing the competitiveness of small & medium sized enterprises,
the agricultural sector and the fisheries and aquaculture sector
3.1.

Promoting entrepreneurship, in particular by facilitating the economic
exploitation of new ideas and fostering the creation of new firms,
including business incubators (ERDF)

3.2.

Developing new business models for SMEs, in particular for
internationalisation (ERDF)

3.3.

Supporting the creation and the expansion of advanced capacities for
product and service development (ERDF)

3.4.

Supporting the capacity of SMEs to engage in growth in regional,
national and international markets, and in innovation processes (ERDF)

3.5.

Enhancing the competitiveness of small and medium-sized enterprises,
through promoting the adaptability of enterprises and workers and
increased investment in human capital (ESF)



Specific Objectives corresponding to Thematic Objective 3
 Ease of access to financing for SMEs through Financial instruments
 Improving the business climate and ease of doing business in Croatia
 Providing business infrastructure for development of Start-Ups
 Increasing numbers of SMEs in knowledge-based economy and innovation sectors
 Modernisation / development of new technologies, processes and products
 Strengthening SMEs in developing tourism
 Supporting enterprises in meeting EU and other (third) countries standards and
receiving certification
 Proactive investment promotion and SME internationalisation
 Enhancing interconnectivity by supporting development of supply chains, value
chains, clusters and co-operatives
 Supporting SMEs engaged in innovation processes (commercialisation, industrial
property protection, etc.)


EU budgetary cycles
Current cycle 2007 – 2013

Next cycle 2014 – 2020

(grant funding figures agreed and awaiting

(currently the subject of dialogue and negotiation
between EC services and Croatia)

drawdown and disbursement)

Programming:
 Linkages between national and EU
strategies
 Prerequisite for withdrawal of funds
It is the process of defining:
20 SMEs have been selected via a
transparent selection and evaluation
process to receive assistance from
SMEPASS II in meeting of application
requirements under this grant scheme
(May/June 2013 Call for Expressions of
Interest).

 Development goals
 Investment areas
 Strategic documents

The programming
process corresponds to
the question of which
parts of national
strategy will be cofinanced from EU funds.

 Concentration of resources



EU budgetary cycles
Next cycle 2014 – 2020
Programming must follow:
 European Strategic Documents
 Development goals
 Community Strategic Guidelines for
cohesion
 Integrated Guidelines for Growth
 Guidelines for the employment sector
 The Lisbon Strategy
 National Strategy Documents
 Strategic documents
 National Strategic Reference
Framework
 Sectoral Strategies
 Development strategies




November 2013 Call for Proposals
ERDF Eligibiliy Criteria (applicants)

< 250 employees (absolute)
≤ €50 million turnover
and/or
≤ €43 million balance sheet total

Applicants must:

 Be registered as an SME
 Be established in Croatia
 Be able to demonstrate profit after taxation in the last
fiscal year for which accounts are concluded and provide
certified balance sheets for the previous two years
 Have no outstanding debts to the state (e.g. taxes) or to
employees
 Be registered – according to NACE (OG 58/2007) code
classification, among a pre-defined list of eligible
sectors/sub-sectors


November 2013 Call for Proposals – Eligible Activities
 Investing in tangible and/or intangible assets related to the increase of
current production, expanding of the production programme to new
products or fundamental change in the entire process production;
 Investing into tangible and/or intangible assets related to the purchase of
new technologies and equipment (i.e. production line, machines, devices
etc.) and introducing new processes or methodologies or introducing
results of R&D into the production which would improve the production
and/or improve the quality and gain better productivity.
 Investing into tangible/intangible assets, with the goal to reach the higher
level of environment protection and the activities related to preventing
damage to the environment or natural resources as a consequence of
production process, decreasing danger of such damages or the activities
that will lead to effective utilisation of the natural resources including the
energy savings measures and utilisation of the renewable energy
resources;


November 2013 Call for Proposals – Eligible Activities
 Investing into tangible and/or intangible assets related to the energy
efficiency measures through the activities that decrease the utilisation of
the energy production;
 Investing into tangible and/or intangible assets connected to the and the
types of 3-star hotels and above as well as type of the standard and
comfort and their accompanying construction of new, contemporary and
advanced quality of catering and accommodation facilities supporting
facilities meant to providing services such as meetings, incentives,
conferences and exhibitions (MICE), leisure time and recreation, sport and
health (medical, spa, wellness) with the purpose to increase numbers of
visits and the facility competitiveness
 Investing into tangible and intangible assets with the purpose of reaching
the Community standard and the environment protection.


ERDF Eligibiliy Criteria (expenditure) page 1 of 8
Item

Eligibility

Depreciation of fixed
assets



Conditionality
• Only fixed assets used directly for the
project
• Allowable where Community funds have
not contributed towards purchase.
• Depreciation may be claimed on secondhand equipment if not purchased using
national or EU grant
• Depreciation costs calculated according
to Croatian accounting regulation
• Depreciation costs will be allocated in
proportion to the use of the fixed assets
and exclusively for the project duration



Item

Eligibility

Conditionality

Indirect Costs



• Based on real costs with applicable
allocation in proportion to project
activities
• Based on flat rate

Project Management Costs
(personnel, travel,
accommod-ation,
consultancy, equipment)



• Must be linked to implementation of
project activities

Project audit procured by
beneficiary



• Eligible within pre-defined requirements



Item

Eligibility

Exceptions

Volunteers working time

X

• None

Investment in capital or
investments in loan,
guarantee funds

X

• None

Expenditure related to
housing activities

X

• None

Recoverable VAT

X

• None

Interest on debt

X

• None



Item

Eligibility

Exceptions

Decommissioning of
nuclear power stations

X

• None

In kind contributions from
third parties

X

• None

Purchase of second-hand
equipment

X

• None

Purchase of vehicles for
project management
activities

X

• None



Item

Eligibility

Exceptions

Contributions to voluntary
insurance or pension funds which
are not compulsory according to
national legislation
Fines, financial penalties and
costs of litigation

X

• None

X

• None

Project operating costs

X

• Project management costs

Flat rate costs calculated
calculated on standard scales of
unit cost or lump sum (overheads)

X

• None



Item

Eligibility

Exceptions

Losses due to fluctuations in
currency exchange rates/
commissions on currency
exchange
Payment of non-taxable
bonuses to staff

X

• None

X

• None

Bank charges for opening and
administering the project account,
fees for financial transfers and
other charges of a purely financial
nature

X

• None



Item

Eligibility

Purchase of infrastructure, real
estate and land

X

Exceptions
• None

http://www.strukturnifondovi.hr/koji_troskovi_su_prihvatljivi
Follow Link:
Annexes 1 & 2: List of expenditures with reference to eligibility, including exceptions, per fund


Thank you for
your attention
We hope to see you soon on www.smepass2.eu

This presentation reflects the views only of the authors, and the European Commission cannot be
held responsible for any use which may be made of the information contained therein.


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