Fostering value added business cooperation between SMEs

Analyses around 2012-3 have shown that SMEs and the enterprises of the programme’s area have financial, innovation and networking problems, with almost no internationalisation. Cross-border business cooperation had multiple obstacles: language barrier, traditionally isolating borders hampered by the wartime period of the formerly Yugoslav countries, depressed socio-economic situation of the area, low inclination of SMEs for building international connections, problems with entrepreneurial skills and financing. On the other hand, the existence of crucial assets in the region (like the network of small and medium sized towns, the Pécs and Osijek agglomeration, Universities, high number of SMEs in parts of the area, rich natural and cultural values) formed a business environment that could support the development of the SME sector. On this basis, a pilot scheme has been designed.
Non-refundable grant is provided for consortia of at least two SMEs, at least one from each country, to develop joint product, technology or service, processes and productive capacities or carry out common marketing activities. A two-step selection process is being operated. Support is provided by County Development Agencies (HR) and Enterprise Development Agencies (HU) to promote the scheme and carry out specific B2B consultations to identify the potential SMEs and develop project concepts. Separate project development and management support is also given for partners receiving funding.