USAID STARTED SMALL BUSINESS IN SOUTH SERBIA

By using the know-how and experience of the employees of onetime corporate giants from South Serbia, over 30 entrepreneurs from Bujanovac, Presevo, Vranje, Leskovac, Surdulica, Lebane, Trgoviste, Medvedja, Vlasotince, Bojnik and other towns, supply both the domestic and foreign market with their products.

Following the collapse and bankruptcy of the footwear plant „Kostana“, the agricultural and food – processing plants „Delises“ and „Pcinja“, „Jumko“, „Poljoprodukt“, „Megal“, „Prohor“, „Gumoplastika“, „Jugokop“, „Masinotekts and others, over 1,000 employees are reemployed  thanks to the entrepreneurship  of  the managers of small – sized companies from South Serbia.

The United States Agency for International Development (USAID) assisted considerably with the launching of small businesses in this part of Serbia. Slobodan Kocic, the mayor of Leksovac, said that the USAID had done a great deal regarding the “encouraging” of small – sized companies’ managers to overcome their present difficulties, and they made a good hand of it.

„We started from a regular metal workshop by using the know-how and experience that we had acquired at the old metal company in Presevo. We were a metal workshop from 1969 until 1992, when we became an enterprise. We were developing step by step, but what we earned was enough for mere existence. Owing to the USAID, the business plan, the production program, the design of our products and the marketing were prepared“, says Faim Sadiku, the owner and general manager of the „Celiku“metal-manufacturing enterprise from Presevo. He also pointed out that they were now competitors on the market thanks to their products and services provided in the construction field. „Joinery and other joinery-related elements are of extremely good quality and they are more and more demanded not only in Serbia, but also in Kosovo and Metohija and in Macedonia. Because of the increased demand for “Celiku” products, apart from the existing 50 employees, Mr. Sadiku intends to employ another 20 employees.

The „Mineks“enterprise from Vranje is counted among one of the biggest manufacturers of men’s and women’s leather footwear. Zoran Stoiljkovic, the owner and general manager of the enterprise, says that he wanted to use the know-how and experience that he had acquired in that branch of industry. He employed 60 former employees of „Kostana“and used their experience for new production programs.

„With the USAID’s assistance, we improved the sales, redesigned our products and launched a new production program”, Mr. Stoiljkovic said. He also said that the enterprise manufactures footwear for both domestic and foreign market.

Dragan Ivanov, the owner and general manager of „Aniteks“, which is a company for manufacturing men’s, women’s and children’s socks in Bosilegrad, says that he managed to organize the manufacturing of socks thanks to the USAID’s program. What helped him is that a socially-owned textile company, which had a similar production program, used to exist in this underdeveloped community, so that he used the already trained labor force.

„The opening of the socks – manufacturing plant means a lot for the municipality of Bosilegrad. We were apprehensive about the production in the beginning, while we now successfully sell men’s, women’s and children’s socks both on the domestic and foreign market“, Mr. Ivanov says. He added that he was, with the assistance of the USAID, planning to expand the plant’s capacities and to employ more people.

The food-processing company „Fontana“, which is owned by Zejnulah and Arsim Ibrahimi, is an example of a family company that is run by the father and the son. Thanks to the USAID’s assistance, the company can do business operations successfully. In addition to 20 permanently employed people, the company is going to employ another 10 or so persons. Namely, there is an increasing demand for dairy produce of this company not only on the domestic market, but also on the Macedonian, Kosovo’s, Montenegrin and Bosnian markets.

„The USAID’s program helped us to choose what and how we were going to produce. Naturally, apart from the best machinery and technology, we also ensured a good quality of food products, particularly of dairy ones. It was also very important for us to ensure top-quality packing and contemporary design. As soon as we established cooperation with the USAID, our products began selling extremely well“, said Arsim Ibrahimi. He also added that they would further develop and expand their capacities.

Milan Velickovic, the owner and general manager of the „Velickovic“ family-run milk plant from the village of Alakinca, which is near Surdulica and which employs 30 persons, says that he improved and increased the production by 20 per cent owing to the USAID’s program. „We introduced the world’s quality standards HASAP, ISO etc. This is what helped our products find their place on the shelves of shops in Greece, Macedonia, Bulgaria, Bosnia and Herzegovina and Croatia. Our products will soon be on the US market, too”, Mr. Velickovic says. 

Michael Pillsbury, the Manager of the USAID’ Serbia Contingency Planning and Economic Security (SCOPES) Program, says that in order to assist with solving the problems that slow down the development of numerous companies in South Serbia, the USAID came up with a program of support, which includes the fields of corporate management, sales and modernization of marketing material. Experts that the USAID SCOPES Program hired for the needs of modernizing marketing material, drew up for the companies  that are included in this project a new branding strategy, modernized their marketing material and their websites”, Mr. Pillsbury says. He added that „the program also made it possible for the companies to have training courses and consultative meetings of experts in the fields that are of key importance for the companies’ business operations, such as the field of sales, finances and human resources management. Simply, the program is aimed at helping companies become more productive, so that they could attract new buyers and increase the sales“.