Djukanovic: Funds availability remains a problem for business start-ups

#MiloĐukanović #ZoranVukčević #Investments #InvestmentAndDevelopmentFundIrf

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There is still a problem with the availability of financial capital for people with good entrepreneurial ideas in Montenegro, which further discourages them to make a decisive step towards taking responsibility for their own business, said Prime Minister Milo Djukanovic.

At the annual presentation of the Investment and Development Fund (IRF) Financial Assistance Programmes, Djukanovic said that this institution has achieved great results and assisted the government in implementation of economic policy.

“The government is still committed to creating a good business environment for entrepreneurship development. Investors and entrepreneurs are our key partners. The government considers ensuring additional subsidies for opening new jobs, as well as how to ensure a few per cent interest rate subsidy for the potential investors in luxury hotels”, Djukanovic said.

He added that growth in the number of small and medium-sized enterprises has been recorded in Montenegro.

“We are talking about 11,300 entrepreneurs, about 23,000 small and medium-sized enterprises, as well as about the fact that 70% of employment in Montenegro is related to small and medium-sized enterprises sector. That means a new quality and a new competitiveness of the Montenegrin economy”, Djukanovic said.

According to him, in the last ten years, since the independence restoration, Montenegro has made serious steps forward in terms of economic development.

“Currently, Montenegro is the most developed economy of the Western Balkans. In these ten years, Montenegro’s economy grew at an average rate of 3.2%. It has been largely achieved thanks to the intense inflow of foreign direct investment”, said Djukanovic.

He said that over the past ten years Montenegro had managed to significantly improve employment.

“There is an increase in employment by 42,000 new jobs. However, we cannot be fully satisfied… We need higher growth rates”, said Djukanovic.

The government estimated that the country must enter the zone of 4-5% annual economic growth.

He added that it was important to continue with the building a new level of entrepreneurial culture.

“It seems to us that budgetary and trade deficit it is much easier than the deficit in entrepreneurial knowledge and self-confidence to get into entrepreneurial ventures”, said Djukanovic.

The president of the IRF’s board of directors Zoran Vukcevic said that the institution offered by far the most favourable conditions for business start-ups, as well as for the development and growth of existing companies.

“This year, we will continue to increase lending. On 16 May last year, we lent €3.5m. At the same date this year, just over €40 was lent”, said Vukcevic.

Since its establishment, IRF has lent €310m in the Montenegrin economy. Out of that sum, €117m was lent last year.

Source: Cafe Del Montenegro