Macedonian Entrepreneurial ecosystem - European Commission · Macedonian Entrepreneurial Ecosystem Prof. d-r Radmil Polenakovikj Business Start-up Centre, Faculty of Mechanical Engineering,

Start-up challenges – innovation, growth and

internationalization

An Overview of Macedonian Entrepreneurial Ecosystem

Prof. d-r Radmil Polenakovikj Business Start-up Centre, Faculty of Mechanical Engineering, Ss. Cyril and Methodius University

&

National Centre for Development of Innovation and Entrepreneurial Learning

An Overview of the Macedonian Entrepreneurial Ecosystem

Macedonia before 1990:

• Part of Yugoslavia

• Centrally planned economy based on big organizational systems (> 1000, 5000, … employees)

• 20,000,000 citizens – big domestic market and huge export

• Public companies (very narrow private sector)

• Relatively strong economy

• Decent standard of living

• Poor system of free labor market, but low level of unemployment

• Entrepreneurship was not on the Agenda


• International (donor) support was necessary in late 90’s and beginning of

XXI century to establish entrepreneurial ecosystem in the country (many

failures, but also – successful cases): • World Bank (7 business indicators established in the country – 1997)

• GTZ (Germany – 4 technology transfer centers – 2003)

• Holland (MRFP – microcredit facilities – 2003)

• ADA (Austria – UKIM Business Start-up Centre – Skopje – 2006)

• SINTEF (Norway – YES Incubator – Skopje – 2006)

• SPARK (Holland – Business Start-up Centre – Bitola – 2007)

• USAID (USA – CEED – Skopje – 2007), now also with Swiss support….

and

• many EU programs (Tempus, FP7, Erasmus+, H2020, CBC, transnational, with

direct support to many public organisations, but also NGOs…)


Recent key moments for the development of the Macedonian

Entrepreneurial Eco-system (1):

- Law on Innovation activity – 2012

- Establishment of the Fund for Innovation and Technological Development –

end of 2013 and intensification of its activities in 2017-2018

- Entrepreneurial Learning Strategy 2014 – 2020:

- Introduction of courses “Innovation” in Primary Schools (IX grade) – 2013

- Introduction of courses “Innovation and Entrepreneurship” in I, II and III grade

of Secondary education, while in IV grade there was already course “Business

and Entrepreneurship” – 2012


Recent key moments for the development of the Macedonian

Entrepreneurial Eco-system (2):

- Stronger support to NGO sector and institutions

- Establishment of Technology Park at the Southeast University in Tetovo

- Establishment of 3 Associations of Business Angels – after 2015

- Development of private Start-up supporters (SEAVUS, New Mans Business

Accelerator, Start-up Macedonia, CEED Hub Skopje, ….)

- Strong emphasis on domestic economy and support to domestic

companies – Vice-Premier responsible for economic affairs – since 2017

- Foundation of INNOFEIT - 2018

- and all of this lead to . . . strenghtening of start-up community in the

country


Fund for Innovation and Technological Development activities:

• Supported over 100 innovative projects/companies with over 10 mil EUR (public co-investment up-to 85% of the total project value)

• These projects have mobilized about 7,5 mil EUR additional private capital in co-investment

• Over 500 people are newly engaged in innovative projects. Average salary of these people, engaged in innovative companies is twice the level of average salary in Macedonia

• It is expected for another 50 innovative projects with a total budget of about 6,5 mil EUR Fund co-financing and 3,5 mil EUR additional private capital co-investment to be contracted by the end of 2018

• Supported establishment of three business accelerators with total contribution of 1,5 mil EUR

• In 2018 the Government increased its support to innovation and technology development over 13 times (1300%) in comparison to previous period


Main problems/challenges of the Macedonian Entrepreneurial

Ecosystem:

- Low level of collaboration among actors of MK ecosystem

- Continuity after finishing of the donor support

- Continuity after the change of the Government (political parties)

- Too much politics in day-to-day business

- Lack of entrepreneurial education in the formal education system

(especially on the university level)


Main problems/challenges of the Macedonian Entrepreneurial

Ecosystem:

- Lack of funding for the intermediate stage of start-ups development

- Problems with legislative (especially IP rights)

- Low interest among entrepreneurs and the business community to

work as start-up mentors / coaches

- Lack of support from the local community and lack of experienced local

leaders (on the municipality level)

- Low level of human capacities among institutions providing start-up

support (usually 1 to 5 persons)


Lessons learnt • It was wrong just to make “Copy-Paste” from best practices worldwide. Best

practices should be adopted and adapted to the local circumstances.

• However – not only international support was / is prerequisite for building the national entrepreneurial eco-system. System of triple / quadruple helix in a basic form exists in Macedonia, but it is based more on the individual level initiatives (person or single institution).

• Hard working and committed Government (+ dedicated Ministries and Agencies) with increased involvement of private sector are STRONG precondition for development and growth of the entrepreneurial ecosystem and whole economy. But also, respect what predecessors done – and continue.

• Continuous support from the top management (Director of Agency, Rector, Dean or Head of the institute) is a MUST prerequisite for sustainability of good practices. Find domestic champions in different areas and support them.


Next steps • Internationalisation of the Macedonian start-ups. Increase the access

to customers and networking with other start-up communities

• Strengthening the capacities of institutions that provide start-up

services (both public and private)

• Increase the access to finance (private funds, business angel

networks and state support)

• Increase the access to talents and to ideas. More entrepreneurship

in formal education and better pre-acceleration programs.


Next steps • Finalised Smart Specialisation Strategy (Ministry of education and

science and Ministry of Economy)

• New activities of FITD:

• Finalizing the feasibility phase of the process of establishing a Science and Technology Park in Skopje.

• Initiated process of establishment of an Equity and Mezzanine Fund which will invest 7,5mil EUR public money and mobilize additional private capital to enhance growth of start-ups


Thank you very much for your attention

National Centre for Development of Innovation and Entrepreneurial Learning & Ss. Cyril and Methodius University Business Start-up Centre Faculty of Mechanical Engineering Karpos II bb., POBox 464 1000 Skopje, MACEDONIA Tel: +38923099481 / Fax: +38923099482 e-mail: [email protected], [email protected]

Prof. d-r Radmil Polenakovik

mailto:[email protected]







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Macedonian Entrepreneurial ecosystem - European Commission · Macedonian Entrepreneurial Ecosystem Prof. d-r Radmil Polenakovikj Business Start-up Centre, Faculty of Mechanical Engineering,