One-on-one mentoring and group training sessions with real-world lessons improving the skills and confidence of innovative small and medium-sized enterprises (SMEs).
VIENNA, April 26, 2023—Innovative, income-generating SMEs in Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia who received a combination of master classes, mentoring and training on attracting customers and The use of digital marketing tools such as search engine optimization have seen a significant increase in the number of customers compared to SMEs who received more generalized training on the same topics, according to a study by the Bank funded by the European Union and detailed in a report presented at an event here today.
The report, Capacity building as a means of expanding export markets: an experience in six Western Balkan countriesfound that offering 30 hours of group virtual training sessions and 5 one-on-one virtual mentoring sessions with experts resulted in a significant increase in customers compared to similar SMEs who were offered four hours of training via three webinars with a light blanket. of these subjects.
The treated companies have improved their digital presence in a way that makes it easier for potential international customers to find the company’s offerings and be encouraged to contact the company. Treated businesses were also 10 percentage points more likely to appear on the first page of search results and improved their Facebook pages by being 15 percentage points more likely to include English posts, 10 percentage points more likely to use special offers and 6 percentage points more likely to include English-language publications. Points are more likely to include customer testimonials and stories. A year after the start of the program, the treated companies had also significantly increased the number of customers.
Customer acquisition is one of the main challenges faced by innovative small and medium-sized businesses. This is particularly true in countries like those in the Western Balkans, where domestic demand for specialized services and products may be limited. Exporting to larger, wealthier countries is a potential solution, but expanding into foreign markets involves considerable hurdles, and small businesses may lack the skills and confidence to market their products to foreign buyers.
This study aimed to test the effectiveness of a program called PowerUP in helping businesses recover from the COVID-19 pandemic, expand their markets and export more.
“The Economic and Investment Plan and the Innovation Agenda for the Western Balkans highlight the importance of strengthening the competitiveness of the business sector in the region and promoting innovation ecosystems. said Holger Schröder, Head of Unit, Regional Programs and Economic and Investment Plan for the Western Balkans, European Commission, Directorate-General for Neighborhood and Enlargement Negotiations. “The Power-Up study identifies approaches through which SMEs can strengthen their capacity for change and resilience to crises through innovation and digitalization. The study also demonstrates the positive impact and benefits of virtual training for companies with different needs regionally.»
“With its proximity to the European Single Market and important trade routes, the Western Balkans have the potential to become a natural hub for innovation and entrepreneurship. » said Xiaoqing Yu, World Bank Country Director for the Western Balkans. “A program like PowerUp demonstrates to investors and business owners the significant growth potential that SMEs can unlock when they improve the skills required to expand their sales across national borders. It also shows citizens who are considering starting a business that success is possible and that they do not have to go it alone.
The PowerUP program was launched in September 2020. Businesses had to be small or medium-sized, innovative and already generating revenue. The average (median) company size was 17.6 (8) workers. The majority were in services and B2B (e.g. production of custom software solutions and professional services such as legal and energy consulting). A quarter produced specialized manufactured goods. 71% of them were already exporting, their main challenge being finding new customers and developing their exports.
A total of 225 companies were selected for the program and randomly divided into two groups: an experimental group of 113 companies were offered 30 hours of group training sessions on Zoom and five one-on-one virtual meetings with management consultants . The training sessions focused heavily on building customers and markets and using digital marketing tools (such as search engine optimization), with additional sessions also covering human resources, management financial and pitching. A control group of 112 companies was offered three webinars, lasting a total of four hours, which provided light coverage of these topics.
“Investors often look for “coachable” business leaders.,'” said Maja Andjelkovic, World Bank Senior Private Sector Specialist. “This training program showed that innovative companies in the Western Balkans are not only eager to learn, but also able to quickly apply new knowledge to adapt to demand shocks, such as those caused by the COVID-19 pandemic. 19..”
The study also identified areas where these programs could be improved in the future:
- Improve targeting and selection of companies: The heterogeneity of companies in terms of sector, size and life cycle makes it difficult to provide content that meets the needs of all companies – but in smaller countries there is often has very few companies in an industry size category. and more work is needed on how to balance specificity with service to many businesses.
- Narrower, more actionable content may be preferable to trying to cover all areas. Specific content that businesses could directly implement, such as using search engine optimization, saw the most adoption.
- A mixed-modality program may be preferable to a fully online or fully in-person program.
Contacts:
Belgrade: Gordana Filipovic,gfilipovic@worldbankgroup.org
Pristina: Lundrim Aliu,laliu1@worldbank.org
Skopje: Anita Bozinovska,abozinovska@worldbank.org
Sarajevo: Jasmina Hadzic,jhadzic@worldbank.org
Tirana: Ana Gjokutaj,agjokutaj@worldbank.org
Vienna, Washington: Christopher Walsh, cwalsh@worldbankgroup.org
For broadcast requests: David W. Young, (202) 473-4691, dyoung7@worldbankgroup.org