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Preparation of Terms of Reference for the service tender ”Supporting SMEs to become more competitive in the EU Market” - Albania

Albania

European Commission

European Commission

The private sector plays an important role in the Albanian Economy. The SME sector contributes an estimated 64% of GDP and accounts for 66% of employment. Over 99% of the active enterprises in Albania are SMEs. However SME performance currently remains weak, as it copes with increasing regional competitiveness. The Albanian Government recognises that it is crucial for the competitiveness of Albanian enterprises to improve. According to Ministry of Economy, Trade and Energy (METE) analyses and surveys, the current shortcomings and problems related to SME internationalization and global competition have been identified inter alia as: - Inadequate management skills and expertise, - The need for effective performance management systems to monitor, analyze and introduce regular change into business processes, - Implementation of ongoing management and personnel development programmes, - Lack of capital and state-of-the-art technology, - Low levels of product development and innovation, - Lack of product certification, - An incomplete legislative environment. Foreign direct investment (FDI) in Albania has grown at a steady rate during the period 2000-2006, reaching approximately 350 million USD in 2006. However, in comparison to other countries in the South East European (SEE) region, net FDI inflows remain low (less than 5% of a total of 10 billion EUR). There is a lack of investment in higher added value sectors. To improve this situation, METE is looking to create improved instruments to assist Albanian businesses to move closer to the rhythm of Entrepreneurship Innovation & Technology developments in the EU, and to crate better cooperation between Foreign Direct Investors and SMEs, and to encourage greater investment in HR Development. The general purpose of the project is to contribute to the improvement of the institutional, legal and administrative framework of the SME support system in the country by establishing an effective support policy and development programme for sustaining SME growth and competitiveness through innovation, technology transfer and modern business management training. The specific purpose of the project is preparation of the Terms of Reference for the project “Supporting SMEs to become more competitive in the EU market” in Albania.

Start date: 2008-12-01

End date: 2009-02-28