Programme to Support Self-Employment of Unemployed Persons
About this good practice
The lack of entrepreneurial experience reduces options for employment, innovation and economic growth. Trebinje authorities responded with a programme offering grants and technical support for unemployed people to generate innovative ideas and start their own businesses.
Generally, functional cooperation for innovation between public and private sectors in BiH could be stronger. Communications are, in most of cases, limited to necessary official communications and, while both sectors use modern channels, detailed presentations and easy access to information are not emphasized.
This call is publicized through the City of Trebinje and Tredea (Development Agency of City of Trebinje) websites, social networks, info boards and media. A characteristic of this programme is that authorities also communicate directly with potential beneficiaries throughout the process to increase mutual understanding.
The call funds new businesses through grants to people registered at the employment service, prioritizing innovative ideas and people from vulnerable groups. TREDEA provides them with technical support to prepare and develop business plans, and other practical advice.
Funds are paid in 3 stages: 60% after contract signature, 25% at the start of year 2, and 15% after end of year 2. Successful applicants must ensure investment of 50% of the first payment for means of work (e.g. equipment), their own regular employment and running the business for 2 years.
Expert opinion
Resources needed
Resources to prepare and implement the programme are up to 600,000€ annually (amount for 2024), depending on expected interest. Most of preparation is done by City of Trebinje and TREDEA with up to 10 people engaged during 3 months/year.
Evidence of success
Results over 8 years show the value and efficiency of the practice. About 40% of beneficiaries continue with activities after the 2 year commitment set by the programme. 228 people have become self-employed or employed, lowering the unemployment rate.
Potential for learning or transfer
This practice represents a way for authorities to support economic growth of their communities. Key elements include mutual understanding and direct communication with existing or future SMEs from the beginning of the process which creates a very firm foundation for quality cooperation in the future. The practice relies on an open and transparent information flow, using modern means such as email and Social media.
The programme has been modified and adjusted each year according to lessons learned from previous experiences, the estimated need and the information from involved stakeholders, including potential co-financing. Information is collected through the monitoring process and feedback from beneficiaries, and also from the people involved, findings and recommendations). This is important for the sustainability and effectiveness of the programme in the future, especially in terms of its practical viability, and selection of proper, potential sectors to be supported.
Further information
Good practice owner
You can contact the good practice owner below for more detailed information.
