Contract for Professional Services between UNDP and EDUCON

Tesaříkova 1027/2, 102 00 Praha 10, Czech Republic, IČ 70824339, DIČ CZ70824339  (++420) 272 930 683-4, fax: (++420) 272 933 082, e-mail: educon@educon.cz, http://www.educon.cz FINAL REPORT Preparation and Conducting Study Tour of Belarusian representatives to the Czech Republic to expand options for SMEs through outsourcing, subcontracting and partnership with big businesses May 2008 Prepared by EDUCON Praha Note: This Final report elaborated and delivered by Educon was slightly modified for web page purposes by: Radka Konderlova, BRC Programme Associate, UNDP. The changes did not affect in any way the substance of the final report. I. Background and Introductory Information In accordance with the Institutional Contract between UNDP and EDUCON, Contract No.: IC 2008-13, the Study tour of Belarusian officials to the Czech Republic on expanding options for small and medium-sized business through outsourcing, subcontracting and partnership with big businesses was prepared to be held from 12 to 15 May 2008. Experience from several workshops and study tours on small and medium-sized enterprises, prepared and realized by EDUCON Prague in the past few years, were the basis for the preparation of EDUCON’s proposal for realization of the Study tour on expanding options for small and medium-sized business through outsourcing, subcontracting and partnership with big businesses for participants from Belarus. The proposal was submitted to UNDP Bratislava Regional Centre. Study tour has been prepared in accordance with the Terms of Reference. Experience from leading industrial countries shows the promise of outsourcing, subcontracting and other forms of business to business networking for greater efficiency and faster economic growth. Subcontracting and outsourcing have been a significant contributing factor to rapid economic development in countries such as Japan, France, Germany, the United States, Italy and Spain. In transitional economies such as the Czech Republic, Poland and Hungary, outsourcing and subcontracting have created new openings for small and medium-sized business, thereby contributing to more stable economic growth, rising productive employment, increased competitiveness of national economies and more equitable regional development. By comparison with most other transitional economies, outsourcing, subcontracting and networking are much less common for small and medium-sized enterprises in Belarus. Instead, most SMEs tend to produce finished goods and compete among each other in the consumer market. As a result, many SMEs are significantly constrained in their options to specialise production, introduce technological innovation and adjust to changing market needs. Lack of business to business cooperation also exacerbates the impact of insufficient capital and other constraints to market entry for SMEs. As a result, the dynamism of the private sector is limited, and SMEs are concentrating in areas that require little long-term investment. Private sector stagnation also has a negative impact for markets for big business. This particular initiative derives from the on-going UNDP project on Private Sector Development “Improving the administrative and economic environment for private sector development by facilitating public-private dialogue” implemented by the Republican Fund for Promoting Enterprise Development (the executive arm of the Council for Enterprise Development). The main project objectives are as follows:  to improve expertise of the business community in elaborating and promoting legal and policy proposals affecting the state of the business and regulatory environment;  to increase transparency of the decision and rule-making processes affecting the private sector;  to improve monitoring of small business trends in Belarus and increase public awareness of its role and contribution to socio-economic development. 2 It was proposed to organize a study tour to the Czech Republic for a group of Belarusian participants representing the Council for Enterprise Development (owners and top managers of large and medium-sized enterprises) and leading business associations (SME developers and promoters) to facilitate the study of relevant experiences and practices, with the following purposes:  to familiarize with subcontracting mechanisms in different branches of the Czech economy;  to get acquainted with the Czech experience in creating and running industrial clusters and other forms of B2B cooperation. II. Programme The objective of the Study Tour was to acquaint the participants with the following topics: Operational Programme Enterprise and Innovations (OPEI) 2007-2013, One-stop Shops, Industrial clusters, Innovation support, Support for research and development; Promotion of the Programme for the Development of Small and Medium-Sized enterprises in the Czech Republic, information on experience from SMEs and big enterprises cooperation, main achievements and problems of the SMEs in the Czech Republic; Information and experience of the Business Development Agency, support of existing and new entrepreneurs, industrial clusters, experience from the Operational Programme Industry and Enterprise Clusters Programme, examples of concrete clusters; CzechTrade’s professional information, assistance and consulting services for Czech exporters and for foreign firms entering the Czech market, seeking interesting and reliable business partners and suppliers; Presentation of cooperation between big company (Skoda Auto, Mlada Boleslav) and suppliers; Experience in subcontracting between big and small businesses; Experience in B2B cooperation, B2B marketplaces – presentation of B2B Centrum; Role of the innovations in the SMEs¨’ development, programmes of innovative entrepreneurship, enhancement of competitiveness and possibilities of SMEs cooperation with big businesses. - - - As a part of Study tour programme, visits to the following institutions / companies were prepared and organized: - Association of Small and Medium-Sized Enterprises and Crafts of the Czech Republic; - CzechInvest – the Investment and Trade Development Agency; - CzechTrade – the Czech Trade Promotion Agency; - Skoda Auto, Mlada Boleslav; - Automotive Industry Association of the Czech Republic; Detailed programme of the above mentioned topics, visits and exchange of experience indicating exact placements, timing, etc. is in Annex 1 of this Report. During the visit to the Association of Small and Medium-Sized Enterprises and Crafts of the Czech Republic the participants had the possibility to meet also Ms. Eva Svobodova, General Director of the Association. In the framework of the visit to the CzechInvest the following experts were met: 3 Mr. Karel Kolar, Ms. Michaela Hartova, Ms. Miroslava Dvorakova (Coordinator of EU Structural Funds publicity), Mr. Karel Budka (Head of Competitiveness Department), Mr. Miroslav Richter (Head of Cluster Development Section), Mr. Jaroslav Branda, Ms. Gunca Garadzajeva (Project Manger of R&D Support Department) and the following topics were presented: Programmes of support for investment, technological and research centres, Operational Programme Enterprise and Innovation, competitiveness enhancement, clusters, programmes of entrepreneurship support, R&D support. At the Automotive Industry Association of the Czech Republic the participants also met Mr. Jiri Kyncl, Exhibitions and Public Relations Manager. On the first day of the Study tour programme the participants were provided with brief information about EDUCON and its activities and with overall information about the subject of the Study tour. On the last working day, the participants had a possibility to meet Ms. Radka Konderlova, Programme Associate, UNDP, Europe and the CIS, Bratislava Regional Centre. Presentations were conducted in Czech language with the translation into Russian and participants obtained a part of Study tour materials in English, another part of documents were in Russian or Czech language. List of Study tour materials and presentations is in Annex 3; presentations are on CD that is enclosed to the Final Report. The arrival of 4 participants in Prague took place on Sunday morning, 11 May 2008 and 1 participant arrived on Tuesday morning, 13 May 2008. The official opening of the Study tour was on Monday morning, 12 May 2008. The Study tour was evaluated both by participants and organizers on Thursday evening, 15 May 2008 during the farewell dinner. Participants left Prague on Friday, 16 May 2008. III. Participants The Study tour was prepared in cooperation with the UNDP Country office in Belarus, namely with Ms. Alexandra Bobrovskaya, Project Manager of the UNDP project “Improving the administrative and economic environment for private sector development by facilitating public-private dialogue”. Based on the Terms of Reference it was planned that 9 persons will take part in the Study tour. Invitation letters were sent to 9 persons according to the list of participants received from UNDP CO in Belarus. As 2 participants were refused to obtain visas for travel to the Czech Republic, only 7 persons could participate in the Study tour, but the Study tour had 5 participants only - 2 persons did not travel to the Czech Republic because of working and personal problems. For list of participants see Annex 2. All participants were very active with their approach to the Study tour programme, they enabled very good contact with organizers and lecturers. IV. Evaluation and recommendations 4 All participants found the Study tour appropriate from both conceptual and organizational viewpoints. They appreciated the professional level of lecturers, their experience and willingness to answer all questions. The possibility to visit the biggest Czech company and the biggest Czech exporter – the car producer SKODA AUTO, and information and experience acquired during this visit were appreciated as well. The participants considered the duration and intensity of the Study tour programme sufficient. All participants have stated that their professional interests were satisfied; they would want to have detailed information relating to their specializations. The participants will have a possibility to use obtained information and knowledge in their own jobs and to transfer them to their and other institutions and organisations. They also acquired contacts to all lecturing experts and representatives of Czech institutions visited during the Study tour, so they can communicate with them in future in case of their needs. Recommendations of the participants:      To prepare and implement a joint Czech – Belarusian project in the field of SMEs support and clusters; To establish contacts among SMEs in the Czech Republic and Belarus; To have a possibility to cooperate with clusters in the Czech Republic and use experience of Czech clusters in clusters establishing in Belarus; To realize other workshops or study tours on clusters, experience with their formation and development; To realize study tours on the following subjects: a) Problems of chains of stores established in the Czech Republic with a possibility to visit them, b) SMEs support, in particular financial support; To realize consultancy mission of Czech experts to Belarus in the areas of: support of SMEs, development of clusters and a light industry.  Annex 1: Annex 2: Annex 3: Programme of the Study tour (both in English and Russian version) List of Participants List of Study tour materials and presentations (CD with presentation is attached) 5 Annex 1/E Expanding options for small and medium-sized business through outsourcing, subcontracting and partnership with big businesses Study tour for Belarusian officials to the Czech Republic Prague, 12 – 15 May 2008 Programme Sunday 11.5. Arrival of participants to Prague, accommodation in the OREA HOTEL PYRAMIDA (Belohorska 24, Prague 6), organizational matters Monday 12.5. 08:30 09:30-10:00 10:00-12:30 Departure from the hotel Formal opening of the Study Tour; information on EDUCON activities; discussion about Study tour programme (Ms. Dagmar Trkalova) Operational Programme Enterprise and Innovations (OPEI) 2007-2013, Onestop Shops, Industrial clusters, Innovation support, Support for research and development (Ms. Jaroslava Kubu, Competitiveness Department, Ministry of Industry and Trade of the Czech Republic) Lunch and transfer to the Prague Centre EDUCON, Tesarikova street 1027/2, Prague 10 12:30-14:30 Association of Small and Medium-Sized Enterprises and Crafts of the Czech Republic, Tesnov 5, Prague 1 14:30-16:00 Promotion of the Programme for the Development of Small and Medium-Sized enterprises in the CR, information on experience from SMEs and big enterprises cooperation, main achievements and problems of the SMEs in the Czech Republic (Mr. Karel Havlicek, Vice-Chairman of the Association) Tuesday 13.5. 08:45 Departure from the hotel CzechInvest, Stepanska 15, Prague 1 09:30-12:30 Information and experience of the Business Development Agency, support of existing and new entrepreneurs, industrial clusters, experience from the Operational Programme Industry and Enterprise Clusters Programme, examples of concrete clusters (Mr. Petr Kolar, Structural Funds Division) Lunch 6 12:30-14:00 CzechTrade, Dittrichova 21, Prague 2 14:00-16:00 CzechTrade’s professional information, assistance and consulting services for Czech exporters and for foreign firms entering the Czech market, seeking interesting and reliable business partners and suppliers; Project of BusinessInfo.cz - the Official Czech Business and Trade Portal (Ms. Jana Falathova, Head of Export Opportunities Department) Wednesday 14.5. 08:00 Departure from the hotel, transfer to Mlada Bolesav Skoda Auto, Mlada Boleslav 09:30-12:30 Visit to the car producer Skoda Auto, the biggest Czech company as well as the biggest Czech exporter - Visit to the Museum - Presentation of cooperation between big company and suppliers Mr. Petr Jonak, External Affairs Department) - Factory tour Lunch and transfer to Prague 12:30-15:30 Automotive Industry Association of the Czech Republic, Opletalova 55, Prague 1 15:30-17:00 Experience in subcontracting between big and small businesses (Mr. Jaromir Stefl, International Relations Manager) Thursday 15.5. 08:30 Departure from the hotel EDUCON, Tesarikova street 1027/2, Prague 10 09:30-11:30 11:30-13:30 13:30-15:00 Presentation of B2B Centrum – experience in B2B cooperation, B2B marketplaces (Mr. Dalibor Wijas, Executive Director) Lunch Association of Innovative Entrepreneurship of the Czech Republic: role of the innovations in the SMEs development, programmes of innovative entrepreneurship, enhancement of competitiveness and possibilities of SMEs cooperation with big businesses (Mr. Jan Kofron) Farewell dinner - discussion, evaluation and closing the Study Tour (Restaurant “ Tri Gracie”, Novotneho lavka 5, Prague 1) 19:00 Friday 16.5. Departure of participants 7 Annex 1/R Научная командировка на тему: „Расширение возможностей малого и среднего бизнеса при помощи оутсоурцинга (outsourcing), субконтрактов и партнёрства с большим бизнесом“ Прага, 12. – 15. 5. 2008 Программа Воскресенье 11.5. Приезд участников в Прагу, размещение в гостинице OREA HOTEL PYRAMIDA (Belohorska 24, Praha 6), организационные дела Понедельник 12.5. 08:30 Отъезд из гостиницы EDUCON, Tesarikova 1027/2, Praha 10 09:30-10:00 Открытие научной командировки, информация о деятельности EDUCON, представление участников и обсуждение программы (г-жа Д. Тркалова) 10:00-12:30 Операционная программа бизнеса и инноваций (Operational Programme Enterprise – OPEI), One-stop shops, промышленные кластры (Industrial clusters), поддержка инноваций, поддержка исследования и развития (г-жа Я. Кубу, Отдел конкурентоспособности, Министерство промышленности и торговли) 12:30-14:30 Обед, перевозка в центр Праги Ассоциация мелких и средних предприятий и мелких предпринимателей ЧР, Tesnov 5, Praha 1 14:30-16:00 Поддержка Программы развития малого и среднего бизнеса в Чешской республике, опыт из кооперации малого и среднего бизнеса и большого бизнеса, главные достижения и проблемы малого и среднего бизнеса в Чешской республике (г. К. Гавличек, заместитель председателя ассоциации) Вторник 13.5. 08:45 Отъезд из гостиницы CzechInvest, Stepanska 15, Praha 1 09:30-12:30 Презентация Агентства для развития бизнеса, поддержка существующих и новых предпринимателей, промышленные кластры (Industrial clusters) включая примеров, программы поддержки бизнеса (Operational Programme Industry and Enterprise Clusters Programme) (г. П. Колар, дивизия структуральных фондов) 12:30-14:00 Обед 8 CzechTrade, Ditrichova 21, Praha 2 14:00-16:00 Презентация фирмы - информации, ассистирование и консультативные услуги для чешских экспортеров и для иностранных фирм вступающих на чешский рынок; разыскивание интересных и достоверных партнѐров и поставщиков; проект Интегрированная система для бизнеса и экспорта – осуществление Портала (г-жа Я. Фалатова, заведующая отделом экспортных возможностей) Среда 14.5. 08:00 09:30-12:30 Отъезд из гостиницы и перевозка в город Млада Болеслав Посещение производителя автомобилей ŠKODA Auto, самую большую чешскую фирму и так же самого большого чешского экспортера  Посещение музеи  Презентация кооперации между большой фирмой и поставщиками (г. П. Ёнак, отдел внешних отношений)  Посещение завода Обед и перевозка в Прагу Субконтракты между большим и малым бизнесом (г. Я. Штефл, референт международных отношений) Skoda Auto a.s., Mlada Boleslav 12:30-15:30 15:30-17:00 Ассоциация автомобильной промышленности ЧР, Opletalova 55, Praha 1 Четверг 15.5. 08:30 09:30-11:30 11:30-13:30 13:30-15:00 Отъезд из гостиницы Презентация Б2Б центра – опыт из Б2Б кооперации и Б2Б рынков (г. Д. Вияс, исполнительный директор) Обед Презентация Ассоциации для инновации бизнеса ЧР; роль инноваций в развитии малого и среднего бизнеса; повышение конкурентоспособности и возможностей малого и среднего бизнеса кооперацией с большим бизнесом (г. Я. Кофронь) Прощальный ужин, дискуссия, оценка и заключение командировки Ресторан „Tri Gracie“, Novotneho lavka 5, Praha 1 Отъезд участников EDUCON, Tesarikova 1027/2, Praha 10 19:00 Пятница 16.5. 9 Annex 2 Expanding options for small and medium-sized business through outsourcing, subcontracting and partnership with big businesses Study tour for Belarusian officials to the Czech Republic Prague, 12 – 15 May 2008 List of participants Ms. Bykava Tatsiana Chief Consultant UNDP project “Improving the administrative and economic environment for private sector development by facilitating public-private dialogue” Ms. Sharsniova Sviatlana Executive Director, Republican Fund for Promoting Enterprise Development Mr. Filipau Siarhei General Director, “Belarus Production and Building Enterprise” Ltd. Mr. Kuzmich Dzmitry Deputy President, JSC “Belgasprombank” Mr. Ditchkovsky Dmitry General Director, CJSC “Milavitsa” 10 Annex 3 List of Study Tour materials and presentations Study tour for Belarusian officials to the Czech Republic   EDUCON profile Materials provided by the Ministry of Industry and Trade of the Czech Republic: a) Concept of development of small and medium-sized enterprises for the period 2007 – 2013 b) National Cluster Strategy 2005 – 2008 c) 47/2002 Coll. ACT of 11 January 2002 on the support of small and medium-sized enterprises d) Operational Programme Enterprise and Innovation These materials are on CD prepared by EDUCON. Materials provided by the Association of Small and Medium-Sized Enterprises and Crafts of the Czech Republic a) Profile of the Association b) Czech Business Weekly c) Czech Republic – a European Member Materials provided by the CzechInvest: a) CD “Doing Business in the Czech Republic” b) Presentation “Cluster Initiatives in the Czech Republic” – on CD prepared by EDUCON Materials provided by the CzechTrade: a) CD “Czech Exporters Directory” b) Czech Trade – Your business partner (in Russian language) c) Presentation “CzechTrade - Ваш партнѐр в Чешской Республике” – on CD prepared by EDUCON d) Czech Agricultural Techniques and Technologies (in Russian language) Materials provided by the Automotive Industry Association of the Czech Republic: a) Yearbook 2007 b) Presentation “Present condition of the automotive industry and market and development trends” – on CD prepared by EDUCON Materials provided by the B2B CENTRUM: Presentation “B2B marketplaces and their advantages” – on CD prepared by EDUCON Materials provided by the Association of Innovative Entrepreneurship of the Czech Republic: a) CD “Technological Profile of the Czech Republic” b) International Scientific and Technological Cooperation of the Czech Republic within the KONTAKT Programme c) Innovation of the year 2008 d) Presentation of the activities of the Association – on CD prepared by EDUCON 11      