Romanian small and middle-sized enterprises (SMEs) whose businesses have success perspectives might be included in the venture capital investment programme worth 24.1 million dollars, launched by several financial institutions that are part of the Small Enterprises Assistance Funds (SEAF).
Funds earmarked by SEAF are aimed at Balkan countries including Albania, Bosnia and Herzegovina, Bulgaria, Croatia and Macedonia.
SEAF considers that adopting and applying the Balkans Stability Pact and the determination of many Eastern European governments to endorse economic reforms offer this region the possibility to register significant economic growth.
The fund will closely work with the Initiative for the Development of Small and Middle-sized Enterprises, a division of International Finance Corporation (IFC), to the end of identifying investment opportunities and secure support for the companies to benefit from the funds.
“The fund will secure financing through direct investments for expanding enterprises in the region,” said Mark Alloway, director of the IFC department for Southern Europe and Central Asia.
SEAF welcomed the involvement of BSTDB bank – Black Sea Trade and Development Bank in the Fund as a major contribution by a partner that is familiar with business opportunities in the region and which deems support for the development of SMEs as a priority.
The fund represents the first operation BSTDB develops in the domain of equity investments and its first project aimed at Albania, Romania and Bulgaria.
Since 1989, SEAF has created venture capital funds in 10 countries of Central and Eastern Europe and Latin America and has poured over 150 investments in local SMEs.
SEAF funds addressed to Balkan countries have brought companies important business relationships within the foreign trade domain, not only with firms of the Central and Eastern European area, but also with enterprises in Western Europe and the United States.
SEAF considers that local SMEs are a sector that will most likely post economic growth. In several domains, such as technology, media services aimed at the population, rural tourism, etc, the relatively early stage in the development of the national economy provides these firms with sufficient space to develop. This growth is however often restrained by the absence of medium-term venture capital. The fund’s financial resources, coupled with the support in management and the know-how transfer, will allow these firms to register a positive evolution regarding turnover and staff.