Raising the level of the innovation in Polish SMEs: challenges and achievements

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Raising the level of the innovation in Polish
SMEs challenges and achievements
Dariusz Szewczyk Deputy to Chief Executive
Officer of PARP
Astana, 24 May 2012
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Polish Agency for Enterprise Development (PARP)

• Established by the Act of 9 November 2000, a
  governmental agency subordinate to the Minister
  of Economy.

The main objectives enterprise development application of new techniques export development creation of new jobs, tackling unemployment human resources development regional development Structure Supervisory Board CEO, Deputy to CEO (2) budget for 2012 1,36 bln EUR no. of beneficiaries 12 thous. 23 Departments more than 500 employees.
PARP in the financial perspective 2007-2013 is
involved in implementation of 7.2 bn EUR (8.4 of
total NSRF budget) within three OPs OP
Innovative Economy (EUR 3.9 bn), OP Human Capital
(EUR 672 m) and OP Eastern Poland Development
(EUR 2.6 bn).
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Implementation of Operational Programmes(for
31.03.2012)
OP Innovative Economy OP Human Capital OP Eastern Poland Development TOTAL
NUMBER OF CONTRACTS SIGNED 8 065 731 130 8 926
CO-FINANCING AMOUNT 12,9 bln PLN 2,0 bln PLN 6,9 bln PLN 21,8 bln PLN
SUPPORT PAID 6,1 bln PLN 1,4 bln PLN 3,0 bln PLN 10,5 bln PLN
1st quarter of 2012 1st quarter of 2012 1st quarter of 2012 1st quarter of 2012 1st quarter of 2012
NUMBER OF CONTRACTS SIGNED 294 3 2 299
CO-FINANCING AMOUNT 272,36 mln PLN 75,8 mln PLN 83,7 mln PLN 431,86 mln PLN
SUPPORT PAID 503,28 mln PLN 67,3 mln PLN 122,0 mln PLN 692,58 mln PLN
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PARP achievements 11 years of activity

• Over 28,5 thousand contracts amounting to almost
  6,55 bilion EUR,
• Over 500 thousand employees from over 180
  thousand companies took part in training sessions
  and postgraduate studies co-financed by PARP,
• Over 1 million people benefited from the National
  SME Services Network,
• Over PLN 828 million capitalization of regional
  and local loan and guarantee funds,
• 200 infrastructural projects implemented in the
  less developed regions in the framework of
  Regional Development Programmes,
• Over 8 million people visited Poland Pavilion
  during Expo 2010 in Shanghai,
• Presidency of the Council of the European Union
  (7 conferences, 4 500 participants, 600 EEN
  offices represented during the Annual Conference,
  250 ambassadors from Europe supporting women
  entrepreneurship).

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National SME Services Network (KSU)

Financial services guarantee funds
Information services
New systemic services
Financial services loan funds
Pro-innovative advisory
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Organisational structure of the SME support
system in Poland
NATIONAL LEVEL
POLISH AGENCY FOR ENTERPRISE DEVELOPMENT
governmental agency, responsible for implementing
of economic development programmes
REGIONAL LEVEL
KSU
16 REGIONAL FINANCING INSTITUTIONS (RIF)
one in each voivodship, cooperate with the PARP
in the implementation of national programmes and
regional in some cases
LEVEL OF DIRECT SERVICE PROVIDERS
KSU
SERVICE PROVIDERS with significant experience
in cooperation with SMEs
provide advisory, training, information,
financial and proinnovative services
National SME Services Network (KSU)
Commercial and non profit Institutions entitled
for services providing without PARP
accreditation
KSU
business support organisations cooperating
within the network of audited and accredited
institutions
Information services PK
Proinnova-tive services KSI
financial services - guarantees
financial services - loans
pilot services
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• Loan and Guarantee Funds system

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Funds description

• Guarantee Funds

• Loan Funds

• GF separate fund for loans for SMEs and start-ups

LF separate fund for loans for SMEs and start-ups
LF and GF function in accordance with fixed
standards and regulations on granting loans/
guarantees

• GF capital
• self-governments subsidies,
• financial aid
• own resources from
• the LF institution and/or
• income from the lending activity.

• LF capital
• self-governments subsidies,
• financial aid
• own resources from the LF institution and/or
  income from the lending activity.

At present, there are ca. 49 GF, 41 of which
concluded agreements with PARP.
At present, there are ca. 69 LF, 45 of which are
under KSU, and 41 concluded agreements with PARP.
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• Guarantee Funds

• Loan Funds

• For SMEs applying for a loan or tendering for a
  contract but not having enough security for the
  liability.

• For SMEs and persons starting business activity.
  LF may also grant loans from their own resources
  to other organisations. However, these are always
  special-purpose loans.

• This term guarantee is granted for the period
  corresponding to the loan period, until the
  liability payment
• Payments and fees amounting up to 3.5 of the
  guaranteed liability are taken
• Individual guarantee amounts up to 80 of the
  amount of the loan
• Security blank promissory note and, if
  necessary, additional securities
• Granted after the risk analysis concerning the
  non-repayment of the liability

• Allocation company development
• investments,
• current,
• investments and current
• Payment period 36 to 60 months
• Interest rate ca. 5.5 to 9.5 a year,
• Possible fee amounting to 1-3 of the amount of
  the loan
• Required own contribution of the consumer
  amounting to ca. 20 of the investment value
• Security blank promissory note and, if
  necessary, additional securities

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Funds support and development of services
concerning granting loans and guarantees under
the National Services Network (KSU)

• Activities
• Providing quality of services (working standards
  standards of services support and advisory,
  audits, monitoring)
• Moreover, for GF ordering service of assigning/
  analysing rating,
• Building consultants competencies (analysis of
  competencies, development plans, trainings,
  advisory)
• Cooperation within SI KSU (news, knowledge base,
  forum, reporting)
• Promotion
• Analyses and experts opinions

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• Measure 3.1 Initiating innovative activities

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Measure 3.1 Initiating innovative activities

• Measure 3.1 Initiating innovative activities
  within Innovative Economy Operational Programme
  has been implemented since 2008 by the Polish
  Agency for Enterprise Development. The basis of
  project realisation is the Regulation of the
  Minister of Regional Development of 7 April 2008
  concerning granting by PARP of financial aid
  within Innovative Economy Operational Programme,
• The allocation for the measure amounts to 158 000
  000 EUR,
• The objective of the Measure 3.1 is to increase
  the number of enterprises acting based on
  innovative solutions. The Measure covers support
  within creation, based on innovative ideas, of
  new enterprises through consulting on
  establishment of enterprises, granting access to
  infrastructure and services necessary for newly
  created enterprises and financial support for
  newly created enterprises,

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Indexes monitored by PARP at the level of measure
3.1

• 1. Number of projects supported from the funds of
  the measure - 45
• 2. Number of enterprises established in result of
  support granted for innovation implementation -
  600
• 3. Number of incubated ideas - 1100
• 4. Number of functioning new enterprises - 250

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Examples of Beneficiaries
www.trinityadventures.pl
www.inkubatory.pl
www.ventureshub.pl

• Newly created enterprises act mainly in the
  sectors of
• IT
• Telecommunication
• Internet
• Biotechnology
• Renewable sources of energy.

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Thank you
Dariusz Szewczyk Deputy to Chief Executive
Officer of PARP