Press releases

New opportunities for young people to launch in the business world

Young people have increasing opportunities to launch and develop sustainable business in Moldova. Today, the Organisation for the Development of Small and Medium-sized Enterprises (ODSMEs) launched a new START programme for young people they provide extensive facilities to harness the entrepreneurial potential of the young generation. Thus, young people aged between 18 and 35 yearswhich will start or develop a business, both advisory/educational support and non-repayable funding or credit with a grant portion. The programme is supported by the Government for a 3-year period, possibly extending it, and in 2022 financial resources amounting to Lei 20 million to support some 100 business local.

The kick-off conference of the Start for Young Programme was attended by the Prime Minister, Natalia Gavrilița, Minister for Economy, Sergiu Gaibu, representatives of the External Assistance Programme Management Office (OGPAE), representatives of higher education institutions, business incubators, youth centres and non-governmental organisations.

Prime Minister Natalia Gavrilița noted that, even further, the Government would encourage young people to open up new businesses to strengthen the sector of Small and Medium-sized Enterprises, making it an increasingly powerful engine of the national economy. In this vein, the Joint Executive with development partners launched support programmes, including the Start programme for Youth involving grants up to lei 200 thousand and a lending line with a non-repayable part of 15 %.

“This assistance is very important for the survival and development of business. We have the grant as well as credit component because a business needs to be initially supported, but also becoming a sustainable one, bringing income, able to grow and create jobs,” said the Prime Minister.

Minister for Economic Affairs, Sergiu Gaibu reassure that the Government would look for further possibilities to support and strengthen entrepreneurship among young people.

“Under today’s programme, we want to help young entrepreneurs, from start to export. This programme is also an innovative one, as we test a new product, fixed interest rate lending of 6 %, very favourable under the current circumstances. We want to further develop a development fund to provide such financial instruments to all economic operators and thus protect them from possible risks, those who invest in the future of the country", mentioned the Minister.

“The programme will contribute to the development of youth entrepreneurship and encourage business start-ups in rural areas by facilitating access to non-repayable financial resources and lending resources, as well as training, consultancy and mentoring during the implementation of the investment project. The impact of the new entrepreneurial support instrument is to be quantified by achieving the following objectives: maintaining young people in the country, including in rural areas; improving/developing young people’s entrepreneurial skills; increasing the number of businesses with innovative elements and strategic vision connected to the sustainable development framework" said Dumitru Pinianinterim Director ODIMM.

Two forms of financial support will be offered through the Programme. Young people, who aim to start up to business, will thus be able to benefit from grants up to Lei 200 thousand. State financing will constitute up to 70 % out of the value of the investment project, and young people will contribute approximately 30 %.

They will also be able to access loans with grant portion, combining non-repayable financing with advantageous lending resources provided through partner financial institutions by the Office for the Management of External Assistance Projects (OGPAE). The amount of the financial envelope will reach 1.7 million lei and will include the repayable loan portion of 85 % and the grant portion of 15 %.

The benefits of entrepreneurial support mechanisms offered by the Youth START Programme were also presented in the light of examples of young SME DSO beneficiaries, who managed to live in the world of business, accessing non-repayable funding from the State.

Internal DSO statistics indicate that 45 percent of the total number of beneficiaries of entrepreneurial support programmes are young people. Between 2009 (February)-2022 (May), the IMMO implemented the Youth Start – a Sustainable Business at home Programme, through which over 400 young people have accessed non-repayable funding up to RON 180 thousandand over 1700 young people have been trained in the entrepreneurial field and guided in the process of developing investment projects.

More on the new Start for Young Programme https://bit.ly/3OGbGFg

All video conference https://bit.ly/3NNcdnw
{gallery}../2022/07{/gallery}