Private Briefing October 2025
No. 151 | Year XIII
The October edition of the Private Briefing focuses on instruments that combine financial support with systemic capacity building, essential for integration into global value chains. It opens with a trilogy dedicated to one of the most successful business support programmes in the region, the SME Hub programme, a model of public–private cooperation aimed at transforming domestic manufacturers into reliable suppliers for multinational companies. The analysis also covers the subsidised loan programme of the Ministry of Economy for the processing sector, as well as the incentives of the Directorate for Agrarian Payments for organic plant production, seen as a strategic opportunity to access premium segments of both domestic and export markets.
SME Hub: Transformation for Global Partnerships
// Launched two years ago through a partnership between the Swiss Agency for Development and Cooperation (SDC) and ICT Hub, the SME Hub is a five-year, 6,2 million CHF programme designed to help Serbian small and medium-sized enterprises in the manufacturing sector transform into reliable suppliers for multinational. The programme targets companies with 15 to 250 employees, at least three years of operation, and domestic ownership, with a particular focus on less developed regions. It was established in recognition of the fact that integration into global value chains represents one of the most significant development opportunities for domestic SMEs, while at the same time requiring major adjustments in management, processes, and transparency to meet the expectations of multinational corporations for predictability and structured business operations, an area where many local firms still face challenges.
// SME Hub provides support throughout the entire transformation process, lasting up to 24 months. Defining feature of the programme is up to 80% share, up to 100,000 euros grant for business transformation, facilitating the implementation of improvements and compliance with international standards. The programme begins with a diagnostic assessment, followed by the development and implementation of a tailored transformation plan. The interventions typically include ERP system implementation and a range of improvements covering management professionalisation, financial management, digitalisation, HR, certifications and licences, and development of organisational structures and governance systems supported by the appropriate regulatory and legal framework. This approach enables multi dimensional support through stages of growth that, if financed with own resources, could take years. In addition to the grant component, companies also have access to a credit-guarantee scheme worth 4 million euros, offering liquidity and investment loans of up to EUR 250,000 under flexible terms.
// Consulting support in management and finance, in which Glenfield has been involved from the outset, focuses on systemic chamge. As a result, transformation under the SME Hub enables MSMEs to establish more stable and profitable business relationships through long-term B2B contracts with multinationals, ensuring revenue predictability and reducing exposure to market volatility. Alignment across the full spectrum of aspects directly improves company valuation and facilitates access to better financing terms. The programme therefore goes beyond traditional consultancy initiatives: it builds lasting internal capacities that remain within the company, supporting sustainable growth and scalable operations without compromising control or quality. In upcoming editions of the Private Briefing, we will present examples of interventions and their effects, first in the field of manage ment systems and internal governance frameworks, and subsequently in financial management, as the cornerstone of long-term business stability and growth.
Trilogy of EU Programmes for Digitalisation and Competitiveness: CSP and ASB
// Following the opening of the trilogy dedicated to digital and sustainable approaches to modernisation, this edition focuses on two instruments directly accessible to micro and small enterprises: the Competitiveness Support Programme, which combines a bank loan with an EU grant disbursed after investment verification, and the Advice for Small Businesses Programme, which co-finances short, focused consulting projects that improve business performance.
Competitiveness Support functions simply. A company defines an investment to improve compliance with quality, safety or environmental standards, applies for a loan under the dedicated credit line, and after implementation and verification, receives a partial grant. Eligible costs include equipment, software, minor construction works, certification, testing and consultancy directly linked to the investment. For agri-processors, this often means preparing for HACCP, IFS or BRC certification and improving traceability. The programme’s value lies in its discipline – funds are reimbursed only when change is completed and verifiable, preventing delays or investments without measurable results and encouraging sound project management.
Advice for Small Businesses addresses the other side of the process. It supports short, result-oriented projects implemented with local or international consultants, focused on practical improvements such as procedures, cost structures, reporting, certification, HR systems or ESG metrics. In the agri-food sector this often covers standardised recipes, cold-chain records and preparation for client audits. The programme co-finances part of the consulting fee, ensuring shared responsibility and tangible results – a document, procedure, tool or training that remains within the company. The best outcomes occur when ASB precedes or runs parallel with Competitiveness Support, first defining what needs to change, then procuring what produces measurable improvement, and finally using that knowledge to secure long-term business stability.
For micro and small enterprises, this combination has clear operational value. In sectors where clients demand proof of standards – from food processing to metalworking and chemicals – moving from theoretical compliance to live procedures and measurable indicators is often a precondition for entering supply chains. These programmes are not an end in themselves but tools for introducing structure in areas that make a real difference: process standardisation, clear responsibilities, performance monitoring, and certificates that have substance and meaning.
// The programme’s financial structure is designed to match the realistic pace of small businesses. The loan provides speed and stability, while the grant follows verified results, reinforcing discipline. At the same time, co-financing consulting services encourages companies to question the value of every activity, while the programme itself adds quality control through consultant selection and performance evaluation. This reduces the most common criticism of technical assistance projects – that they produce general advice without practical impact – and keeps the focus on visible change within operations, reflected ultimately in performance and results.Real change begins with understanding the company’s context and priorities. Instead of generic, “off-the-shelf” models, progress depends on asking the right questions and creating solutions tailored to each business. The answers define the pace and sequence of transformation, while well-chosen programmes serve as instruments for planned and sustainable growth. From our experience, real change starts with dialogue – understanding the context, challenges and priorities of each company. Instead of universal “off-the-shelf” solutions often offered through online trainings and generic advice, progress depends on asking the right questions and creating tailored solutions that fit the company’s specific needs. The answers define the sequence and rhythm of each transformation, while well-chosen programmes serve as instruments for planned and sustainable change.
// In the next edition, the focus will shift to the third part of the trilogy – access to capital and systemic support for SMEs and the rural sector. Through instruments such as EFSE, WB EDIF SME Resilience guarantees, and specialised credit lines for growth and employment, we will highlight tangible benefits: simplified access to finance, lower collateral requirements and practical impacts on local development and the agri-business sector.
Equipment with Partial Grant: A Variation of the Most Popular Programme Ever
// In partnership with the Development Agency of Serbia and Banka Poštanska Štedionica, the Ministry of Economy has introduced a new version of Serbia’s most successful equipment procurement scheme with grant support. This year, it takes the form of a support line for the processing sector, offering subsidised loans for purchasing equipment and securing working capital. By subsidising interest rates and application processing fees, the programme effectively lowers the cost of capital, encouraging investment, improving liquidity, and strengthening the competitiveness of the domestic economy. It targets micro, small and medium-sized enterprises, entrepreneurs and cooperatives across Serbia that plan to invest in new production equipment or to provide additional working capital to expand operations, boost productivity, and maintain financial stability.
The total budget of the subsidised loan scheme amounts to 2 billion dinars, divided equally between two dedicated lines: loans for purchasing new production equipment and loans for long-term working capital. Each category has 1 billion dinars available, with the Ministry of Economy covering part of the interest and processing costs. This arrangement allows companies to finance investments under terms far more favourable than those available on the market, with nominal annual interest rates of 5,60% for equipment and 6,20% for working capital. In practice, most of the interest is subsidised, meaning that businesses pay an effective rate of just 2%.
Loans for new equipment range from 700.000 to 15 million dinars and require a minimum contribution from the borrower of 30% of the total investment. Repayment, including a six-month grace period, can extend up to five years, giving companies enough time to stabilise operations and recover their investment through improved productivity. The loans are denominated in dinars, without a foreign currency clause. Accepted collateral includes a company promissory note, a personal promissory note from the owner, and, importantly, a pledge on the financed equipment itself.
This makes the process significantly easier and broadens access to funding for firms with limited property to offer as traditional collateral. Loans for long-term working capital are available up to 15 million dinars, with a repayment period of up to three years including a six-month grace period. These funds are intended to strengthen liquidity and cover regular operating needs such as the purchase of raw materials, supplies and other inputs necessary to maintain production. Collateral requirements depend on the size of the loan and the business, and for larger amounts may include a mortgage or an asset pledge.
// This scheme represents a valuable opportunity for the processing sector to modernise production capacity, reinforce financial resilience and enhance competitiveness under highly favourable conditions. The subsidised interest reduces the financial burden of investing in new equipment and working capital, directly contributing to higher productivity and more efficient business operations. An additional advantage is the flexible approach to collateral, particularly in the case of equipment purchases where the pledge is placed on the financed machinery itself, enabling access even for companies with limited assets.
// The long-term benefits of this support go beyond the immediate results for individual beneficiaries. They contribute to a stronger and more resilient processing sector, job creation and a more stable business environment that promotes innovation and sustainable growth. Companies are encouraged to consider the programme carefully and to prepare the necessary documentation in good time to take advantage of this opportunity. Glenfield’s consulting team is available to provide eligibility assessments, prepare applications and offer professional assistance throughout the application and implementation process.
DAP: Organic Production as a Strategic Opportunity
// The Directorate for Agrarian Payments has announced a public call for applications for incentives for organic plant production for 2025, with the maximum amount per beneficiary set at 2.5 million dinars per calendar year. The right to incentives is granted to legal entities, entrepreneurs and individuals who are holders of active commercial family farms, provided that they have registered areas under organic plant production in the Register, and that the land in question is arable agricultural land sown or planted with the appropriate crop, cultivated in their own name and for their own account.
A key condition for receiving incentives is that production is in the conversion phase, in the process of certification following conversion, or already certified as organic plant production. Producers covered by group certification are also eligible. The applicant must have a valid agreement for inspection and certification with an authorised control body for the year in which the application is submitted. In the case of group certification, the producer must have a cooperation agreement and be listed as a cooperating producer in the contract that the authorised control body has with the holder of the group certification.
This programme provides significant financial support to farmers who are turning to organic production or are already in the process of conversion, as the incentives directly offset the higher production costs and lower yields characteristic of the initial stages of organic farming. The maximum amount of 2.5 million dinars per beneficiary allows producers to reduce the financial pressure during the conversion period, which usually lasts two to three years, during which products cannot yet be marketed as certified organic, although production must follow organic principles.
// Given the growing demand for organic products and the fact that their prices are rising faster than those of conventional products, both in domestic and international markets, timely engagement in this type of production represents a strategic opportunity for differentiation and stronger market positioning. The strategic value of the programme also lies in the fact that it supports producers during the conversion phase, reducing the risks of transition to the organic system and enabling a planned transformation of the farm without undermining its financial stability. In addition to the direct incentives provided through this measure, organic producers can also benefit from additional subsidies for certification costs under other programmes, through which the Ministry of Agriculture covers 50–65 percent of total control and analysis expenses, further lowering entry barriers. In this context of comprehensive support, rising consumer awareness of food quality, and the growing demand in EU markets for organic products, this call not only enables modernisation of production but also establishes the basis for long-term sustainable operations in the premium market segment, making it a programme well worth consideration.
| KEY ECONOMIC INDICATORS | Oct - 25 | |
|---|---|---|
| 1 | Annual inflation | 2.90% |
| 2 | Reference interest rate | 5.75% |
| 3 | Unemployment rate | 8.50% |
| 4 | Average net salary - RSD | 105,590 |
| 5 | Average pension - RSD | 50,675 |
| 6 | Exchange rate RSD/EUR | |
| On the last day of the month | 117.2004 | |
| Average exchange rate for the month | 117.1784 | |
| 7 | Exchange rate RSD/USD | |
| On the last day of the month | 99.9236 | |
| Average exchange rate for the month | 99.9064 | |
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