Strengthening and Expanding the Mentoring Service for Small and Medium Enterprises in the Western Balkan Countries
What is mentoring?
* Mentoring is timely, continuous, wide-ranging non nancial support developed and standardized during long time cooperation between Serbian Agency and JICA.
* Since 2013, the SME Mentoring Service has been introduced to BiH and Montenegro. From 2017, it has been offered in North Macedonia. As of 2023, the SME Mentoring Service is available in these four Western Balkan countries.
* It is a professional service, with an emphasis on growth potential and with the aim to help, micro and SMEs.
* Mentoring represents the process of joint work of certi ed mentors and entrepreneurs on analyses of current position and de nition of further activities for future growth.
T* Comprehensive support of 25 – 50 free of charge hours through an individual approach at the company.
Who are the mentors?
* The service is provided by the mentors, certi ed for successfully completed theoretical and practical standardized mentoring trainings.
* Mentors have valuable experience in supporting SME sector gained through the years of professional work.
Republic of Srpska completed the mentoring system in the Republic of Srpska by training mentor trainers for small and mediumsized enterprises. Certi cates were presented to the trainers by Marica Berić, head of the Department for Strategic Planning of the Development of SMEs and Entrepreneurship.
"We are extremely satis ed with the results we have achieved so far. In the previous period, we trained and certi ed 71 mentors throughout the Republic of Srpska, and now 10 trainers of mentors. At the same time, we provided mentoring services in 66 business entities from Novi Grad to Trebinje. All previous users of this service expressed their satisfaction with the quality and progress they achieved, and most said that they would use the service again and would be happy to rec-
this occasion.
She emphasized that the ultimate goal of introduction of this unique service, which is free for business entities in the Republic of Srpska, is to improve the competitiveness of the domestic economy.
In order to raise the quality of the mentoring service, the Development Agency of the Republic of Srpska constantly improves the knowledge and skills of mentors for small and medium-sized enterprises. In this context, another mentor training was organized in Banja Luka on the topic "Internationalization of business" led by prof. Dr. Đorđe Ćelić from the Faculty of Technical Sciences in Novi Sad. Through theory and practical experience, the mentors gained knowledge on how to make a decision on entering new markets, create a foreign market entry strategy, implement and coordinate a global
acquired knowledge in his mentoring work with companies for which the internationalization of business is very often a challenge that they are unable to overcome independently.
The Development Agency of the Republic of Srpska has established a mentoring support system for small and medium-sized enterprises with the support of the Japanese International Cooperation Agency (JICA).
A new public call for the provision of mentoring services to small and medium-sized enterprises will be published next week on the website https://www.rars-msp.org/ and the information will be shared through the media and social media accounts RARS - facebook.com/ agencijarars and www.linkedin.com/ company/rars/
Mentorship support has proven to be crucial for the success of micro, small, and medium enterprises, as con rmed by Studio STYLE, a cosmetic salon from Podgorica, which has successfully improved its business through the mentoring program of the Ministry of Economic Development.
Through their experience, the manager of Studio STYLE, Milica Kočović, emphasized the crucial role of mentorship support in facilitating access to government programs that provide resources and funds for the development of micro, small, and medium enterprises.
She stated that they became acquainted with the mentoring program through recommendations from clients in state administration.
"This support not only enabled the acquisition of high-quality equipment but also provided mentorship support, through which we received strategic guidance and support in business development. Mentorship support has proven crucial in understanding business challenges and nding effective solutions. Through business diagnostics, market analysis, and identication of key issues, this form of non- nancial support has enabled Studio STYLE to recognize its strengths and weaknesses and direct its efforts towards achieving de ned goals," Kočović stated.
She pointed out that one of the key problems
Studio STYLE faced was high workforce turnover, which is often a challenge in the cosmetic industry.
"Mentor support helped identify the causes of this problem and develop strategies for retaining
Mentorship Support Crucial for the Success of SMEs
quali ed staff. Additionally, through the mentoring process, Studio STYLE received guidance on nancial management, marketing planning, and improving customer relations," Kočović said.
She indicated that the results of this collaboration are already visible, citing that Studio STYLE has successfully implemented many mentor recommendations, achieved set goals for the initial period, and improved service quality and customer satisfaction.
Kočović explained that in addition to nonnancial support, they also received nancial support from the Ministry of Economic Development for the purchase of medical and physiotherapy equipment for body shaping, which represents a revolutionary addition to their offerings.
"The value of this equipment is 30 thousand euros, this investment was not easy, but with the support of the Ministry of Economic Development in the amount of seven thousand euros, Studio STYLE successfully realized this important step towards improving its services and differentiation in the market," Kočović said.
She believes that these programs implemented by the Ministry are very signi cant and that representatives of micro, small, and medium enterprises should take advantage of them, especially considering that the application process for the program is very simple.
Mentor Vesna Markoč said that from the rst meeting with representatives of Studio STYLE, she built trust, which is crucial for a successful mentoring process.
"I encountered a high level of professionalism in a company that already has extensive experience in the same industry within a family business. The cosmetic salon is spacious, has numerous employees, top-notch equipment, and established business relationships with renowned global brands," Markoč said.
She explained that in the mentoring process, they rst conducted a detailed diagnosis of the company, analyzing its current state, identifying
strengths and weaknesses of the business, assessing market position, and identifying opportunities and threats.
"We talked with management about interpersonal relationships, nancial and marketing aspects, as well as competition. During the collaboration, we focused on key challenges, such as issues with employee turnover after mastering basic skills," Markoč said.
She pointed out that she carefully analyzed this problem, exploring all factors that could contribute to its occurrence.
"I concluded that it is important for the entrepreneur to be transparent about costs, motivate employees, and develop a reward system. Additionally, we evaluated the justi cation for further investments in equipment and concluded that it would be wise not to tie up too many resources in new devices but to focus on the development and satisfaction of existing services," Markoč said.
She emphasized that they, along with the company's management, set goals for the initial period, which have already been successfully achieved, con rming the success of the entire support process through the mentoring program.
The project "Strengthening and expanding mentoring services in the Western Balkans - Phase III" is being implemented by the Ministry of Economic Development within the framework of the Technical Cooperation Agreement between the governments of Japan and Montenegro, through that Government department and the Japan International Cooperation Agency (JICA).
Vesna Markoč
The Story of Mentoring: Support for Business Improvement, Growth, and Development
Mija Kajević is an entrepreneur and designer who had the courage to start her own production line „Durga“. She specializes in creating unique items such as tote bags, pillowcases, and clothing accessories made from natural materials like wool and linen. Mija is currently undergoing mentoring training thanks to a joint project by the Japan International Cooperation Agency (JICA) and the Federal Ministry of Development, Entrepreneurship, and Crafts. She collaborates with certi ed mentor Maja Lukić Grabovac.
How did you learn about mentoring and realize this program could be bene cial for you?
- I learned about mentoring through the Federal Ministry of Development, Entrepreneurship, and Crafts, which publishes projects and grants. Before the mentoring, I was at a standstill with my business. I knew nothing about running a business, marketing, or customers. I was just brave.
How long have you been working with Maja, and what is your relationship like?
- I have been working with Maja for about a month. I am a big introvert, and collaborating with her was initially challenging, but Maja took it slow and developed a friendly relationship with me. Her approach eases our cooperation because I can always express what bothers me. She is very approachable, natural, and friendly. She gives me excellent, useful guidelines for my work. We are currently working on social media posting. When I started the business in November, I was passive, inactive on social networks, and not engaged in digital marketing for my business.
Do you notice any changes since working with your mentor?
- Absolutely. Previously, I was not earning anything or doing anything besides sewing. Now I also photograph products and I am more active on social media. For me, even a 1% progress is signi cant. I have become more active, and the collaboration with my mentor helps me a lot in everything.
Would you recommend mentoring to others?
- I recommend mentoring to everyone – those in business just for a year or ve years. No matter how long you have been working, you always need someone to guide you.
Modern business science considers mentoring one of the key elements crucial for the develop-
ment of small businesses, providing entrepreneurs with professional guidance, support, and inspiration on their business journey. Certi ed mentor Maja Lukić Grabovac, employed at the Sarajevo Development Agency „SERDA“, will work with Mija Kajević until April 2024 to make „Durga“ a recognizable brand on the market. What did you start working on rst?
- Mija is a beginner in everything – from market positioning to de ning the target customer. We started with de ning the market and target customer, clearly differentiating the product and aiming for the nal result, which is increased sales. Our main focus is to increase the number of customers, which will reflect on the sales. We improve sales by highlighting the bene ts of the products rst and foremost. We do not describe products with features and speci cations, but emphasize their bene ts for customers. We practiced marketing communication and advertising to launch into the market and promote ourselves as much as possible via social media. When we started the mentoring process, nothing was de ned – neither customers, nor market, nor products. We had elements of everything that needed to be organized. Since this mentoring will not last inde nitely, but for a speci c period, our goal is to have a cycle of work – review – work. Thus, we continuously evaluate weekly and monthly to see what we have done, and what we can improve.
How do you encourage her innovations, differences, and advantages over the competition?
- Mija was not aware of her competition at all. She knew she was doing something different, but not in relation to whom. We are learning how to position in the market, which requires
constantly monitoring who is around you or if there is a gap in the market. Watching the competition is not spying; it means being aware of your environment. Mija does not just make clothing items; she has started working on personalized home textiles in collaboration with clients. The goal is to expand the scope of work, so when she is not making personalized items, she can work on home textiles to help with cash flow.
What is your message to other craftsmen in need of mentoring?
- I think the best feedback comes from people who go through the mentoring process. Initially, people do not understand what mentoring is. We are on the same side, not opposite sides of the table. Users who go through mentoring to its full capacity are always satis ed. We often maintain friendly relationships, and companies I have personally mentored continue to maintain a relationship with me. We are still connected and have our network.
Mentoring enables the transfer of knowledge, experience, and skills between experienced individuals and those entering a particular eld or industry. It provides continuous support, motivation, and guidance crucial for the personal and professional development of individuals and the companies they manage or participate in managing. Maja and Mija are examples that the mentoring process can be motivating for young entrepreneurs, as they see concrete results after some time. Those who choose entrepreneurship, which is indeed a signi cant step, should accept every kind of help that comes their way, whether it is material, advisory support, collaboration, or education.
Enterepreneur Mija Kajević (left) with mentor Maja Lukić Grabovac (right)
Two sides of Mentoring: Learn up close how the free mentoring process works
Mentoring is a two-way process, and for it to be successfully completed, it is essential for both sides to be dedicatedly involved. In this process, beyond the initial desire, the will to change, commitment, and full engagement are of paramount importance. The aim of this interview is to present such a success story, where you can get an up-close look at the two sides of the mentoring process the mentors and the companies that bene t from the free mentoring services through the joint project between the Agency for Entrepreneurship Support and the Japan International Cooperation Agency (JICA). For this purpose, our questions were answered by Assistant Professor Dr. Danijela Vojtikiv Samoilovska and mentor Nebi Jusu from Tetovo.
Tell us more about the history of your company, when it was founded, what industry it operates in, and how many employees it has.
Dr. Danijela: Our company, Polyclinic "Dr. Danijela," began its operations in mid-2018 as a neurology clinic. Over time, we gradually expanded our operations, and since early 2023, we have grown into a polyclinic for neurology and internal medicine, offering a wide range of medical services in these elds. Our clinic's goal is to provide our patients with the highest quality medical services and care tailored to their needs. Currently, we have eight permanent employees, and we additionally engage several specialists who offer their services in our clinic. Since our founding, we have continually had plans for further growth and development, both in the services we offer and in the number of employees.
Tell us more about yourself, your career, experi-
ence, and how you got involved in the free mentoring services story.
Jusu : The beginning of my career development is somewhat unique since, as a graduate mechanical engineer, I got employed at the Agency for Enterprise Support ESA Tetovo in 1998/1999. The Agency was established as part of a project to develop policies and create regional centers for Small and Medium Enterprises (SME) support in Macedonia, supported by the DFID/KNOW HOW FUND of the British government. In 2010, I earned a master's degree in economic sciences with a focus on entrepreneurship. Since April 2018, I have been the manager of the ESA Tetovo Agency and the director of the Enterprise Support Foundation, Tetovo. ESA Tetovo Agency offers non- nancial and nancial support for both startup and mature businesses, which directly or indirectly contribute signi cantly to the economic growth and development of the Tetovo/Polog region and beyond in the Republic of North Macedonia
I got involved in the free mentoring services story in 2018 as part of the rst group of trained and certi ed mentors for standardized mentoring services by APPRSM. By 2023, ESA Tetovo, in cooperation with APPRSM, has provided mentoring services to 36 companies in the Tetovo region, where I was responsible as a mentor in 15 of them.
The good practices of implementing mentoring services form a solid foundation for attracting new interested startup and mature enterprises to utilize them, contributing to their growth and development.
How did you learn about the free mentoring services opportunity?
Dr. Danijela: Our company is always seeking new ways for improvement and development, which makes us particularly open to opportunities for receiving additional support and advice. Precisely for these reasons, we have an active marketing team tasked with regularly reviewing all possibilities for enhancing our business practices. When our marketing team came across the "Public Call for Implementing Free Standardized Mentoring Services," we decided to apply immediately. Understanding the signi cance of mentoring for companies like ours, we recognized it as an excellent opportunity to complement our aspirations for development and improvement of our services. We believed that utilizing the free mentoring services would give us access to expert advice and guidance from experienced business leaders, which would help us transition from a successful company to an outstanding one.
What were the main challenges you faced in the mentoring process at the company "PZU Dr. Danijela"?
Jusu : In the advertisement for offering mentoring services, the company speci ed several areas of interest in their application, including diagnosis to understand their current state, assistance in preparing development activities/action plans/ projects to achieve their business goals, consultations/advice, coordination, and help in accessing nancial resources, available SME support programs, new technologies, consulting services, etc., to stimulate development and improve operations However, during the initial meetings with the mentor from ESA Tetovo, the company focused on intentions to make new investments in new machinery and equipment, engage new professional staff, and nd new business premises that would be their own since they were renting at that time. To undertake and successfully implement these steps, the mentor, in cooperation with the company's management, rst conducted an analysis of the company's current nancial situation to assess their capacity for new investments and then prepared an investment program/ business plan for the planned new investment. The business plan's creation was a good practical tool for the company to see how the investment would function in terms of income, costs, employees, service users, return on investment, etc., enabling
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Dr. Danijela Vojtikiv Samoilovska
Two sides of Mentoring: Learn up close how the free mentoring process works
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the company to take the next step towards practical implementation.
What was the key moment that made you apply for mentoring services, and did you know from the beginning exactly what you would seek mentoring services for?
Dr. Danijela: The key moment for our decision to apply for mentoring services was the fact that we were already working on a process where our company needed to evolve into a polyclinic. During that period, facing various challenges and changes, we discovered the "Public Call for Implementing Free Standardized Mentoring Services." We considered this opportunity to be extremely important for us, as it would allow us to get opinions and advice from more experienced business people, especially in areas like planning, budgeting, and other strategic activities. From the very beginning, we had a clear idea of what we needed from the mentoring services. We knew we wanted speci c help in sectors such as development strategy, nance, and human resource management. We had concrete plans and goals we wanted to achieve, so we were full of enthusiasm to apply and use the advice and guidance of experienced mentors to realize our ambitious development plans.
How easily do companies in North Macedonia accept mentoring, given that a third party needs to be directly involved in their business? What was the experience with this company?
Jusu : ESA Tetovo has been providing mentoring services for startup and mature enterprises in close cooperation with APPRSM and the Japan International Cooperation Agency since 2018 as part of the project "Strengthening and Expanding Mentoring Services for SMEs in the Western Balkans." Our approach is that during our initial meetings, we always promote mentoring services as part of the package of services offered by ESA Tetovo for SMEs and present good practices of previously conducted services in companies. We record interested companies and, when APPRSM announces the call, we contact these interested rms and support them in the application process. Very few companies apply independently without our support. The experience with this company is that they already had contacts with APPRSM representatives who then directed them to come to our of ce for more detailed information about mentoring services. This indeed happened; the company received all the neces-
sary information and was given full support in the application process for the public call by ESA Tetovo. Finally, when selected by the APPRSM commission, mentoring services were implemented in the company.
Was the mentoring process immediately accepted by the team, and do you think Macedonian companies are generally open to such projects?
Dr. Danijela: The mentoring process was excellently accepted by our team. From the very beginning, colleagues were open and interested in learning from the experience and knowledge of our mentor. For us, the mentoring experience was very useful, as we not only received speci c advice and guidance but also had the opportunity to share experiences and challenges with our mentors. This two-way communication allowed us to chart the right path to achieve our set plans for developing and improving our company. Regarding Macedonian companies, I believe that such services are welcome and have the potential to be successfully implemented. Although each company has its speci c needs and challenges, we believe that mentoring can be of great bene t to all companies striving for growth and successful market operations. Openness and willingness to learn are key aspects for successfully utilizing mentoring services, and we believe Macedonian companies are generally open to such projects.
How important is it for a company to have some analysis and prior knowledge of what speci cally they will seek mentoring services for, and how much does it save time?
Jusu : Typically, our companies and their managers are focused on ful lling daily work obligations, and few have enough time and resources to conduct analyses and plan for larger undertakings. Among the total number of business entities in the Tetovo/Polog region, micro and small enterprises dominate, and lacking suf cient internal capacities, they need to use services from ESA Tetovo, accounting rms, or consulting rms in the form of information, advice, consultancy, training, or research to achieve suitable economic growth and development. It can be emphasized that it is very important and desirable for the company to have some analysis and prior
Mentor Nebi Jusuf
and the Japanese business methodology Kaizen which aims to help company owners and their mentors optimize the production processes.
Trainer of trainers, Mr.Sasa Dedeić, experienced mentor and CRT trainer, completed three days of theoretical training by sharing the trainer’s experience in the topic and following methodology of training of trainers developed by RAS, JICA , KAIZEN ekspert Mr. Iwama and group of Serbian CRT trainers. According to the ToT Methodology, fourth day was dedicated to mock up sessions, conducted
Mrs. Dobrila Sudimac Mratinković started one of the sessions by stating: “When you standardize all the processes, it helps you pursue the philosophy you began with.” During her presentation, The practical part of the production and how to improve the production index by reducing 3MU structure, i.e. inequality, inability, and variations was demonstrated during this mock up session.
On the other hand, Mr. Boban Kostandinović talked about the GEMBA walk and importance of mentoring assistance in the production facility. He presented
Experts from RAS and JICA (A.Zegarac and S.Beljan) , Mr. Shinichiro Kato expert for regional cooperation and JICA KAIZEN expert , Mr.Hideo Iwama, evaluated performances od new trainers for mentors and the result is that four trainer candidates – Mrs. Dobrila Sudimac Mratinković, Mrs. Nataša Jovanović, Mrs. Tanja Mijajlović and Mr. Boban Kostandinović will be awarded with serticates for CRT trainer for mentors for a Module 4 „Production Management and KAIZEN“.
