Image
Development Fund of Western Macedonia - TADYM
Published on 23 May 2018
Greece
Anatoliki Makedonia, Thraki
This is the good practice's implementation level. It can be national, regional or local.
About this good practice
Businesses face difficulties in accessing financing in the Region of Western Macedonia. In order to facilitate this access a new Development Fund of Funds is created under the title: “Development Fund of Western Macedonia” operating under ETEAN S.A - HELLENIC FUND FOR ENTREPRENEURSHIP AND DEVELOPMENT. The objective is to implement projects that enhance competitiveness of local companies and to finance development projects in Western Macedonia. The Fund aims at improving business access to finance, encouraging investments and promoting economic growth.
For this purpose new financing products will be introduced.
The Fund of Funds will be able to create or invest in more than one financial instruments like: venture capital funds, guarantee funds, loan funds, micro-credit funds etc. The Principal amount is calculated at 5 million euros by the Region of Western Macedonia and 5 more million euros by ETEAN S.A. A five member committee will be responsible for the investment strategy and the overall coordination.
The main stakeholders of this project are:
• The Region of Western Macedonia
• ETEAN S.A
• Chambers of Kozani and Florina
The activities of the Fund will have a social profile and the beneficiaries are: Startups and existing SMEs that meet specific social criteria (families with many children, young, women, etc.
There are no estimated costs to the beneficiaries.
For this purpose new financing products will be introduced.
The Fund of Funds will be able to create or invest in more than one financial instruments like: venture capital funds, guarantee funds, loan funds, micro-credit funds etc. The Principal amount is calculated at 5 million euros by the Region of Western Macedonia and 5 more million euros by ETEAN S.A. A five member committee will be responsible for the investment strategy and the overall coordination.
The main stakeholders of this project are:
• The Region of Western Macedonia
• ETEAN S.A
• Chambers of Kozani and Florina
The activities of the Fund will have a social profile and the beneficiaries are: Startups and existing SMEs that meet specific social criteria (families with many children, young, women, etc.
There are no estimated costs to the beneficiaries.
Resources needed
Managing costs are estimated to reach 3% per year of fund capital. These refer to expenditure from provision of services of the ETEAN S.A. & to costs like third party assistance, travel, consumables etc.
The 5 members of the committee shall not receive any remuneration for their services.
The 5 members of the committee shall not receive any remuneration for their services.
Evidence of success
The project has started it's final stage preparation in June 2017.
Results and evidence of success will be added in time during REBORN project.
For the moment a lot of regional SMEs' are being interested in using the FOF services and have been informed through dissemination actions about TADYM servises.
Results and evidence of success will be added in time during REBORN project.
For the moment a lot of regional SMEs' are being interested in using the FOF services and have been informed through dissemination actions about TADYM servises.
Potential for learning or transfer
Three basic lines draw the implementation of this good practice and they are factors that may contribute to the success of its implementation and to the transferability of the practice to other regions or countries throughout Europe. These lines are:
• The problem addressed which is common to almost every European region and this is summarized as limited or no access to financing especially for second starters and target groups that face social exclusion and other side effects of the economic crisis. This problem is exacerbated by the inability of banks to finance entrepreneurship.
• The local character of the stakeholders (Region of Western Macedonia, Local Chambers) combined with the experience of ETEAN S.A is a strong asset for the practice
• The practice combines National and Local Funds
• The problem addressed which is common to almost every European region and this is summarized as limited or no access to financing especially for second starters and target groups that face social exclusion and other side effects of the economic crisis. This problem is exacerbated by the inability of banks to finance entrepreneurship.
• The local character of the stakeholders (Region of Western Macedonia, Local Chambers) combined with the experience of ETEAN S.A is a strong asset for the practice
• The practice combines National and Local Funds
Further information
Website
Good practice owner
You can contact the good practice owner below for more detailed information.
Organisation
Region of Western Macedonia
Greece
Anatoliki Makedonia, Thraki
Contact
Strategic Planner - RIS3 Specialist - Urbact Lead Expert