Private Briefing May 2026
No. 158 | Year XIV
The May issue of Private Briefing analyses four new support instruments for MSMEs and farmers aimed at technological and operational improvements in business. In the MSME segment, the range extends from the new Katalitik programme for the development of AI solutions to RAS mentoring focused on internal restructuring in the manufacturing industry. In the agricultural segment, the focus is on IPARD III Measure 3 as a mechanism for building a higher stage of the value chain, and on the provincial call for technical equipment and more efficient livestock production.
IF: Co investing for the development of AI solutions
// The Innovation Fund has opened the Katalitik co investing grant programme, a new support line for micro and small enterprises in Serbia developing their own scalable solutions based on artificial intelligence. The programme is focused on improving access to finance, market readiness and the investment potential of domestic technology companies, with mentoring support and a clear development logic that links innovation with private capital. Although the target group of this call is far narrower than the typical MSME spectrum, and even narrower than the broader innovation segment, its importance goes beyond the small startup circle, since AI integration is already becoming one of the factors affecting competitiveness across an increasing number of sectors, from industry and logistics to trade, finance and services. In this sense, the programme is relevant both as a signal of the broader direction of domestic support policy for innovation driven entrepreneurship, and as concrete support for new applications and solutions that, taken together, increase competitiveness and sustainability.
// Katalitik is intended for domestic micro and small enterprises with at least 80% private ownership, majority ownership by the founding team, up to ten years of age and a significant team presence in Serbia. The defining feature of the programme is its co investment structure, under which the Fund awards a grant on a 1:1 basis against an external equity investment, with maximum support of up to 24 million dinars, or about 200.000 euros per company, while the minimum investment round may not be below 50.000 euros. The AI solution must already be integrated into the business at least in prototype form, and support is implemented over a period of up to nine months, with mandatory mentoring and quarterly payments linked to progress against defined performance indicators. Funds may be used for team costs, product development and testing, business development services, sales and marketing, as well as goods, other services and general costs directly related to the growth and development of the company. The programme remains continuously open until June 2027 or until the total budget of 7,4 million euros has been used, with applications reviewed in cycles every three to four months.
// The practical importance of the programme lies in the fact that it finances both the technological idea itself and the company’s market and investment maturity. This moves support away from the classical grant model towards a mechanism that tests whether a company can attract private capital, deliver growth and build a sustainable business model, a standard that is becoming increasingly important beyond the narrow AI sector. For the wider MSME segment, this is an important indicator that digital transformation is moving beyond the adoption of readymade tools and shifting towards the development or deep integration of specific technological solutions that increase productivity, accelerate decision making and create room for new market differentiation, that is, the ability to turn data, automation and intelligent models into a concrete business function. In this sense, although Katalitik is formally a programme for AI focused companies, its development message is broader, suggesting that the competitiveness of domestic small businesses will increasingly depend on their ability to turn technology into a measurable business advantage.
SDA: Mentoring for the manufacturing industry
// The Serbian Development Agency has launched a public call for the Programme for the provision of standardised mentoring services to sectors of the manufacturing industry in 2026, intended for mature micro, small and medium companies and entrepreneurs in selected branches of manufacturing. The programme covers beneficiaries from the machinery and equipment industry, electrical equipment manufacturing, the food industry, the wood industry and furniture industry, as well as the rubber and plastics industry, with further specification of eligible areas and branches of activity. Eligible applicants are privately owned entities registered in Serbia before 11 May 2023, with settled liabilities for taxes and social contributions.
This is a programme based on a methodology that SDA has been developing since 2006 in cooperation with the Japan International Cooperation Agency, JICA. Mentoring is defined as a comprehensive support process for business entities that need development support, through joint work between the mentor and the beneficiary to overcome obstacles and identify the most suitable solutions for further business operations. The service is delivered through direct contact between the mentor and the owner or legal representative, predominantly at the beneficiary’s premises, with at least 75% of the total engagement expected to take place in the field. This also means that the number of hours per beneficiary is determined in the range of 25 to 75, in line with the standardised methodology and an assessment of the complexity of challenges in the specific company. The general objective of the programme is to support uninterrupted development and reduce the number of unsuccessful business entities in the manufacturing sector through timely and free expert support.
The content of the mentoring is broad enough to cover both operational and development needs of manufacturing companies. The service includes a diagnosis of the current situation in the business entity, assistance in preparing development activities, plans and projects, advice and coordination for access to funds, new technologies and consultancy services, as well as support in preparing applications for banks, other financial institutions and MSME support programmes. In addition, support is envisaged for the implementation of development activities, improvement of production management processes, introduction of Kaizen methods and tools, marketing improvement, identification of business partners,
obtaining the necessary information and internationalisation of business, with elements of advisory support and coaching. The specific objectives of the programme relate to improving the performance of business entities in areas that affect business results, connecting beneficiaries with providers of specialised services and informing them about support programmes implemented by state institutions and donor projects. Expected results include increased revenues among mentoring beneficiaries, easier access to markets, a lower number of unsuccessful business entities, greater use of specialised services and a higher number of applications to other support programmes.
// The administrative threshold for application is not high, since the application is reduced to a completed application form and a certificate from the Tax Administration confirming that public revenue liabilities have been settled. In addition, accredited regional development agencies also provide administrative assistance in preparing the application. At the same time, the selection framework is clear enough to direct the service towards companies with a genuine need and the capacity to use it. The assessment of applications includes the level of identified challenges in financial operations, the development of human resources, the development of the marketing function and the production process, as well as the quality of the description of expectations from mentoring. In allocating the maximum number of mentoring hours, priority is given to applicants that did not have positive business results in the previous year, which gives the programme a clear development and stabilisation dimension. For manufacturing companies experiencing slower growth, organisational bottlenecks, pressure on the production process or the need to prepare the next investment phase more precisely, this programme can therefore serve as a very usable instrument for internal restructuring and better preparation of the next business step, with the assurance provided by a proven and successfully tested methodology.
IPARD III Trilogy: Measure 3 as the next development step
// In the February issue of Private Briefing, we analysed IPARD III as a platform that has moved beyond the perception of a source of grants and established itself as a new level of development for agriculture and rural areas. While the April issue treated Measure 1 as an instrument for lasting improvements at farm level, Measure 3 follows logically as an instrument for beneficiaries seeking to improve and round off the economic effect of production within their own system. In other words, while Measure 1 remains the basic instrument for strengthening primary production through investment in farms, Measure 3 is a natural next step for beneficiaries that want to raise the level of their business, expand control over the value chain and move from the supply of raw materials into processing, packaging, branding and market positioning of products. Its role within the spectrum of IPARD support should therefore be understood primarily as developmental, as it creates room for investment in basic production to be translated into higher added value and a more stable business model.
// The purposes of Measure 3 include investments in physical assets related to the processing and marketing of agricultural and fisheries products. Its general purpose is to support the modernisation of processing capacities in line with relevant European Union standards, thereby increasing the competitiveness, efficiency and sustainability of the food industry, with a stronger sector response to growing demand for safe, high quality and nutritionally valuable food. In addition, the measure is also linked to investments that contribute to wastewater management, the application of circular economy principles and the use of renewable energy sources, which means that its reach goes beyond the classical expansion of capacities and enters the field of long term, multidimensional business sustainability. An important development aspect is that part of the activities under Measure 3 should contribute to strengthening the position of farmers in the food production chain, through support for association in short market chains and for the production of value-added products. In practical terms, this means that Measure 3 is not limited to larger facilities and new equipment, but also relates to a change in the beneficiary’s business position, that is, a shift from a weaker negotiating position to a more active and profitable market status.
When looking at the first public call under Measure 3, published in February 2025, it becomes even clearer that this is a measure intended for a more serious investment step. Beneficiaries were registered agricultural holdings in the form of entrepreneurs, companies and cooperatives, while supported sectors included the processing and marketing of milk, meat, eggs, fish, fruit, vegetables, grapes, cereals and industrial crops. Eligible investments included the construction and equipping of facilities, the purchase of new equipment, machinery and mechanisation, as well as computer hardware and software, confirming that this measure finances the full operational basis needed to raise processing and market functions to a higher level.
The support intensity was up to 50% of eligible costs, with an additional 10% for investments in wastewater management, circular economy and renewable energy sources. The eligible cost range of 20.000 to 1,3 million euros, together with maximum cumulative support of 2,5 million per beneficiary during the implementation period of the IPARD III programme, clearly indicates that Measure 3 is intended for beneficiaries planning structural improvement of processing, rather than partial corrections in business operations.
From the perspective of the full IPARD spectrum, Measure 3 plays the role of a bridge between production and the market. Measure 1 enables the technological basis of primary production to be upgraded, while Measure 3 creates room for that production to be processed, shaped for the market and placed under conditions that leave a larger share of value with the producer or processor. In this sense, it is particularly relevant for beneficiaries thinking in the medium term, that is, for those who do not want only higher production, but a more stable margin, a stronger market position and the possibility of entering more demanding markets.
// For this reason, Measure 3 deserves particular attention, because it is one of the few instruments that enables domestic beneficiaries to systematically build a higher stage of the value chain, with support sufficiently substantial to change the development path of a company, cooperative or farm in a meaningful way. At the same time, this opens the possibility and points to the need for medium term improvements that go far beyond financial engineering, and include layered interventions in process management, organisation and human resources, to be placed on sound foundations, implemented and monitored with the help of a proven and efficient methodology. This is precisely the kind of support that Glenfield consultants can provide, based on dozens of development projects for MSMEs and farmers over the past fifteen years, and they remain available to clients who need that support.
Provincial Secretariat: Equipment for livestock production in AP Vojvodina
// The Provincial Secretariat for Agriculture, Water Management and Forestry has launched a call for the allocation of funds for co-financing investments in the physical assets of agricultural holdings, for the purchase of new machinery and equipment to improve primary agricultural production in livestock farming in AP Vojvodina in 2026. This is a provincial investment support line focused on the technical improvement of livestock farms, with the aim of increasing the efficiency, competitiveness and sustainability of production. The call is intended for holders of active registered agricultural holdings, including natural persons, entrepreneurs, companies, cooperatives, as well as religious communities, churches and monasteries. Thematically, it is broad enough to cover the most important production segments of livestock farming, and it also includes beekeeping, which gives it additional relevance within the spectrum of regular technical support instruments at farm level.
A total of 130 million dinars has been allocated for the call, through separate lines for equipping livestock farms and for beekeeping. The maximum grant amount per application for equipping livestock farms is 3 million dinars, with a minimum threshold of 150.000 dinars, while for beekeeping the range is 50.000 to 500.000 dinars. The support intensity is up to 60% of eligible investment costs, or up to 70% for holdings in areas with difficult working conditions in agriculture, women farm holders and holders under the age of 40. Total support across all activities is limited to 3 million dinars. In terms of purposes, the call is structured to cover important operational points in livestock production, through investment in farm equipment and the purchase of equipment that directly affects productivity and work organisation.
In the milk sector, supported investments include milking, cooling and on farm milk storage equipment, including accompanying elements, materials and installations, as well as machinery and equipment for handling and transporting solid, semi liquid and liquid manure, preparing animal feed, feeding and watering animals, and equipment for fixed and electric fencing on pastures and meadows. In the meat sector, related investments are covered, with additional equipment for fattening facilities, as well as facilities for housing brooding hens. In the production of table eggs, support relates to equipment for sorting, packaging and storing eggs. In beekeeping, eligible investments include the purchase of new bee colonies, beekeeping equipment, as well as vehicles and trailers for transporting bee colonies.
// The relevance of this call lies in the fact that it supports investments with an immediate effect on work organisation, productivity and cost efficiency in day-to-day livestock production. In sectors where results depend to a large extent on the technical equipment of the holding, investments in this type of equipment are a condition for more stable production, better process control and more rational use of labour and inputs. The additional value of the call lies in the relatively high co financing rate, which makes it easier for beneficiaries to decide on investments that, under regular market conditions, would often be at risk of postponement or reduction in scope. In this sense, the call provides meaningful support to producers that want to improve the technical basis of their holding and, through that, strengthen the long-term sustainability of their own production.
| KEY ECONOMIC INDICATORS | May - 26 | |
|---|---|---|
| 1 | Annual inflation | 3,30% |
| 2 | Reference interest rate | 5,75% |
| 3 | Unemployment rate | 8,70% |
| 4 | Average net salary - RSD | 121.650 |
| 5 | Average pension - RSD | 56.848 |
| 6 | Exchange rate RSD/EUR | |
| On the last day of the month | 117,3952 | |
| Average exchange rate for the month | 117,3917 | |
| 7 | Exchange rate RSD/USD | |
| On the last day of the month | 100,6302 | |
| Average exchange rate for the month | 100,5241 | |
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