THE STORY OF POSITIVE CHANGES

BUSINESS INCUBATORSOROCA

Contents:2

Message from the President of Soroca district, Mihai Mitu

3 Message from the manager of Soroca Business Incubator, Liliana Babara

4 Growth through innovation at the Soroca Business Incubator

6 Incubation model.

How to become a resident of Soroca Business Incubator

8 Entrepreneurship means more than just business

10 Rural Entrepreneurship Cup.

Business development projects in Soroca

12 Founders.

Soroca Business Incubator development partners

I remember when I first saw a business incubator in 2004, during a working visit to Ireland. At that point I was impressed and I wanted very much for us to have such an institution in Soroca.Then, a few years later, in 2009, as a result of the collaboration between the District Council of Soroca, the Norwegian Project Entranse, the Organization for the Development of Small and Medium Enterprises (ODIMM) and the Ministry of Economy of Moldova, the Soroca Business Incubator (IAS) „Gunnar Due Gundersen” was launched.The idea behind the opening of a business incubator in Moldova was that in order to reduce poverty, especially in rural areas, support for the small and medium enterprises is needed.Statistics show that the first 3 years of activity of a start-up are decisive, either it develops or goes bankrupt. At the same time, economic research shows that business incubators can be an effective tool in supporting local innovation and for business generation.Business incubators substantially reduce the failure rate of SMEs. We, the IAS management team, saw this for ourselves by taking for example our residents’ activity. In the past 6 years since the incubator opened, nobody went bankrupt, on the contrary, they have developed, increased their revenue and the number of jobs created.When a problem arises, we try to find solutions together, in order to solve it fast, in an effective way. Residents have confidence that any unexpected situation can be addressed by collaborating. We are here like a family, and I do everything I can to help them grow.Soroca Business Incubator is a mixed-type incubator, meaning that it hosts both production and services businesses. At the moment, in IAS there are 5 companies in the production sphere and 11 from the service area. Now they provide jobs for about 170 people, of which over 60% are women. Also, those 18 companies who have already graduated the incubator are providing jobs to other 75 people in the city of Soroca.I am proud that I have participated from the beginning at the creation of this institution and we managed together with the development partners, to attract here talented, ambitious and hardworking people, who have become, most of them, successful entrepreneurs who work with dedication and gradually contribute to the community development in Soroca.

Message from themanager of Soroca Business

Incubator, Liliana Babara

2

I’m glad that I have the opportunity, through this publication, to address to all Moldovan citizens who contribute daily to the welfare of this country.One of Moldova’s priorities at the moment is to improve the living standards of its citizens, especially for those who live in rural areas. For this to happen there is need for new jobs to be created here, in the country, in the district, so that people should be able to honestly earn their living, being close to their family and relatives.The departure of Moldovan citizens abroad in search of a better life leaves us without our most active people that can help and contribute to the development of the district and each locality as well. In order to create as many jobs as possible in the district and for the people to have the motivation to stay, we should support the development of entrepreneurship.We all know very well that to develop a business, all over the world, is quite difficult. It takes dedication, hard work and courage. Moldova is not an exception in this regard. Especially, it is more challenging and, in the same time, more interesting to start a business outside the capital. Soroca Business Incubator is the institution that helps entrepreneurs develop their business and create new jobs in the district.Analyzing the country’s economic situation, I’m glad that back then, in 2009, the donors from Norway, and the Ministry of Economy, took the decision to open the first incubator in Moldova, namely in Soroca. I think they made a good decision from which the district citizens have a lot of benefits.The business incubator is truly a success story of the city, a source for new jobs and for community development. The businesses opened by the people living in the region cover many needs of the Soroca district population, and people no longer have to leave to the capital in order to buy goods and services or even import them.We, in Soroca have a lot of work to do in order to develop the district. We should ensure good environment conditions for the children in schools and kindergartens, attract funds for social infrastructure, repair roads, help people solve their problems and ensure them a better life.The courage and dedication of those who administrate the Soroca Business Incubator, due to the results achieved by entrepreneurs, provides confidence that tomorrow will be better than today.

Message from the President of Soroca district,

Mihai Mitu

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From their first steps in their business, IAS resident entrepre-neurs are encouraged and given support to innovate. Innovation is the economic engine of growth in today’s global economy.

At the same time, innovation also involves creative thinking from resident’s side. Innovation and creativity are two intercon-nected processes, because finding solutions to problems that arise in the process of innovation requires creativity.

The IAS management’s vision is that innovations help resi-dents to provide new jobs, to raise productivity, to facilitate the internationalization of the company that they are managing, etc.

Innovation can be found in the business idea, in business man-agement, in selling the product, in the way of thinking or in es-tablishing public-private partnerships, etc.

Soroca Business Incubator is itself an innovation for Moldova and for the region. This is why, since its founding, it provides training for entrepreneurs in various areas needed for their businesses’ development, also the incubator is working to-ward attracting new sources of funding for the entrepreneurial education programs for residents, for district youth and jobless women.

Actually, any company accepted in the business incubator ap-plies innovation in its activity. It may be the first on the local market, as the advertising company was in 2009 or in 2015 – the company producing local tourist souvenirs. Other companies provide services already existing in Soroca, but they do this bet-ter, also providing a wider range of opportunities, such as the company specialized in digital printing or that providing furni-ture design and manufacturing, the newspaper publishing, fruits and vegetables export services, juice production from natural fruits and vegetables.

We live in a century of continuous innovation where competi-tion for a place on the market will be earned only by those who are ready to try new approaches and new strategies.

Growth through innovation at the Soroca

Business Incubator

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Soroca Business Incubator is an institution which offers premises, training and support to resident entrepreneurs. To become one of the companies hosted by IAS, one is re-quired to fill in an application form. The document should be sent to the IAS and if the business idea meets the selec-tion criteria, the entrepreneur is invited to the interview.

Among the most important selection criteria in the busi-ness incubator are: the business idea, the investment efficiency, and the number of jobs that this business can generate. Priority is given to innovative ideas which involve production, processing and/or export of goods.

There are 2 main phases in entrepreneur collaboration with the business incubator: the incubation phase – the period while the enterprise is hosted by IAS and the post-incubation phase – the period which starts after the resident graduates the business incubator and develops its own business without the institution’s support.

The incubation period is 3 years. During this time residents benefit from the following services: individual consultan-cy, business training courses, access to finance, access to potential customer database, help in establishing local, re-gional and national partnerships, technical assistance, etc.

In addition, in order to facilitate the development of res-ident companies, IAS has for them preferential terms. In the first year, residents are paying for rental space only 10% of the market price. In the second year – 40% and in the third year – 80% of the price.

Post-incubation phase begins when the company starts operating within its new premises outside the incubator. Usually, residents are leaving the incubator when they reach the performance indicators set in the beginning. Since the foundation, 34 companies have benefited from the services provided by the business incubator, of which 18 have already graduated the program.

Incubation model. How to become a resident of

Soroca Business Incubator

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More than anything, the business incubator allows entre-preneurs to accomplish their dreams and develop their po-tential. Starting a business is actually the first step towards a new life, because this activity involves first of all a change in the way of thinking.

Having a business is prestigious. It gives you a status in the community and if you’re good at what you do, it will bring you profit. However, the stories of the residents in the Soroca Business Incubator show that not only the desire to generate income motivates entrepreneurs, but most of all, the wish of changing the world through what they do.

People who become successful are those who invest a lot of time and energy in developing their businesses. It’s a contin-uous work, 24/7, without holidays and weekends. This is pos-sible only if these people do what they like, they are good at what they do and if the product or service they provide is nec-essary to the community.

Trainings and consultancy from the experts, recommenda-tions and mentoring provided by IAS management were the instruments able to convert a goal in facts and real figures and that made business people think different, to be more cre-ative, to learn new things and finally, to realize their potential.

Within IAS there are a lot of stories about how people’s lives changed. An entrepreneur returned from abroad and decided to invest in a business at home; another found his vocation this way. A housewife, after attending an IAS training, gained confidence and opened up a business, providing employment to 20 other women. Some entrepreneurs had enough courage to leave a stable job, to work and develop on their own. Others followed their passion and dreams, and through their business they create a better and more beautiful world.

Every business is more than numbers, staff or money. Any business means that a man found enough will and courage to change his life, his family members’ life and the community in which we live.

Entrepreneurship means more than just business

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Soroca Business Incubator is in constant search of growth and financing opportu-nities for business development and it is open for different types of collaboration which will bring know how, inovation and creativity for its resident entrepreneurs.

Rural Entrepreneurship Cup is one of the recent projects, a mentoring and train-ing program conducted by Soroca Business Incubator in partnership with Centre for Pure Development from Estonia, Business Consulting Institute and Norwegian project Entrance, funded by the Ministry of Foreign Affairs of Estonia. The project aims to encourage local youth to open and develop their own business.

In this project there were involved more than 60 young people from the north area of Moldova, from Soroca, Floresti, Drochia and Donduseni districts. For 4 months they were trained and guided by mentors, they have generated over 20 rural business ideas and some of them opened their own business.

Three of the Cup finalists are already IAS residents and the entrepreneur who won the first place of the contest was granted also a study visit to Estonia, where he had the opportunity to learn from the Estonian businessmen’ experience in similar areas.

Rural Entrepreneurship Cup has proved to be one of the most comprehensive entrepreneurship education project organized in the region. The first stage of the competition was to generate business ideas and forming the teams. The sec-ond stage was the Hackathon – a training and presentation marathon for busi-ness ideas. Stage three and the longest one consisted of business development through mentoring and experience exchange. The final of the project was a large organized public event with guests, media and awards ceremony.

Rural Entrepreneurship Cup.Business development

projects in Soroca

“Aspiring new entrepreneurs. Business training for under-employed women from Soroca”“Empowerment through entrepreneurship education: practical skills for rural women in Soroca district”“Youth in training: Entrepreneurship practical skills for youth in Soroca”.„Strengthening innovative early-stage enterprises through scaling up existing Business Incubators in Moldova” – Info Dev Program, World Bank

Other recent projects with economic impact in the region

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Soroca Business Incubator (IAS) is a public institution founded by the Soroca District Council. IAS was created by the Norwegian project Entranse in partnership with the Organization for Development of Small and Medium Enterprises (ODIMM) and supported by the Ministry of Economy of Moldova.

In the first development stage, the project Entranse was implemented in Moldova by SINTEF Technology and Society from Norway in collaboration with the Ministry of Economy of the Republic of Moldova, having the mission to create and develop a business incubator.

In the second stage, Entranse is supported by the Industrial Development Corporation of Norway (SIVA), which aims to develop strong regional and local industrial clusters through ownership in infrastructure, investment and knowledge networks as well as innovation centres. The project is implemented by the team of experts through Proneo.

Founders. Soroca Business Incubator

development partners

SOROCA BUSINESS INCUBATORTHE STORY OF POSITIVE CHANGES

Soroca Business IncubatorRepublic of Moldova, Soroca, 9, M. Kogalniceanu St. info@ias.mdtel./fax +373 (230) 20406www.ias.md

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