by Mr. Antonio FANELLI Principal Administrator OECD Co-Chair of the Investment Compact

1. South East Europe Compact for Reform, Investment, Integrity and GrowthENTERPRISE POLICY PERFORMANCE ASSESSMENTS by Mr. Antonio FANELLI Principal Administrator OECD Co-Chair of the Investment Compact

2. ENTERPRISE POLICY PERFORMANCE ASSESSMENT In the presentation: • What are the Enterprise Policy Performance Assessments • What is the content of the Regional Report: main features • The main conclusions

3. ENTERPRISE POLICY PERFORMANCE ASSESSMENT • Independent policy assessments jointly by the EBRD and the OECD • EC [DG Enterprise] has now joined the EPPA programme: link with the European Charter for Small Enterprises

4. ENTERPRISE POLICY PERFORMANCE ASSESSMENT Regional Dimension: • All the SEE Stability Pact Countries: Albania, Bulgaria, Croatia, FYR Macedonia, Moldova, Romania, Serbia and Montenegro • 9 Country EPPA Reports completed (Bulgaria, December 2003) • 1 Regional Comparative Report

5. ENTERPRISE POLICY PERFORMANCE ASSESSMENT 6 Policy Dimensions: • Institutional framework for SME policy • Rule of law and the regulatory environment • Tax policy for small businesses • Financial instruments for fostering small businesses • Advisory services for small business • Business incubators: support to start-ups

6. ENTERPRISE POLICY PERFORMANCE ASSESSMENT Assessment based on: • Insights from SME owners and managers • Inputs from experts and policy makers • Analytical research Support of a network of local consultants

7. ENTERPRISE POLICY PERFORMANCE ASSESSMENT Regional Report: • Same 6 policy dimension • Cross country comparison • Performance measured against policy benchmarks and good practices

8. ENTERPRISE POLICY PERFORMANCE ASSESSMENT SMEs per 1,000 inhabitants : • SEE (average) : 12.5 • EU (plus): 52,8

9. ENTERPRISE POLICY PERFORMANCE ASSESSMENT Perceptions of the Institutional Framework

10. ENTERPRISE POLICY PERFORMANCE ASSESSMENT Deviation from Institutional Good Performance

11. ENTERPRISE POLICY PERFORMANCE ASSESSMENT Perceptions of the Regulatory Framework

12. ENTERPRISE POLICY PERFORMANCE ASSESSMENT Costs and Time Required for Business Registration

13. ENTERPRISE POLICY PERFORMANCE ASSESSMENT Perceptions of the Tax Framework

14. ENTERPRISE POLICY PERFORMANCE ASSESSMENT Perceptions of Access to Finance

15. Indicators of bank intermediation

16. ENTERPRISE POLICY PERFORMANCE ASSESSMENT If normal banks do not lend, what then? • Commercial microfinance, it works • Dedicated SME credit lines to banks, works for larger clients and fewer loans • NGOs, but rarely commercially viable and not sustainable

17. ENTERPRISE POLICY PERFORMANCE ASSESSMENT Perceptions of Business Advisory Services

18. ENTERPRISE POLICY PERFORMANCE ASSESSMENT Perceptions of the Business Incubator Framework

19. ENTERPRISE POLICY PERFORMANCE ASSESSMENT All the reports available on the website of the Investment Compact WWW.INVESTMENTCOMPACT.ORG Requests for printed reports to: Georgiana.Pop@oecd.org