New institution for developing entrepreneurship created in Moldova

Chisinau, 13 July /MOLDPRES/ - The public institution, Organization for Small and Medium Enterprises Sector Development (ODIMM) changes its name into the public institution, Organization for Entrepreneurship Development (ODA). The cabinet, at its today’s meeting, approved a draft on the organization and work of the institution, the government’s communication and protocol department has reported.     

ODA will have a new organizational structure, which will ensure the segregation of the key duties and an enhanced control over the way the public money is used. The institution’s governance is adjusted to the modern requirements and principles, in order to ensure an increased transparency, more efficient processes and extended capacity of absorption of foreign partners’ financings. The new reformed institution will allow a wider spectrum of programmes for entrepreneurs and a more qualitative assistance when preparing projects, including through the coopting of regional incubators.    

Among the ODA’s activity fields, there are: backing the development of entrepreneurship, including the small and medium enterprises; financial and technical assistance for enterprises; issuance of financial and state guarantees. To finance projects on increase and extension of businesses, ODA must have, just like as financial institutions, a proper and efficient system of management of risks specific to the work. The current system of corporate governance, regulated through the ODIMM Regulation, does not provide a pertinent answer to possible risks specific to its activity, recording more deficiencies.            

The concerned draft has the goal to remove the non-conformities identified and adapt the corporate governance of ODA to the best practices, taking into account the principles of corporate governance elaborated by the Organization for Economic Cooperation and Development (OECD), recommendations by the European Parliament and the European Commission, national normative framework on the organization and work of public institutions, recommendations of World Bank experts and those worked out at missions on the evaluation and improvement of the organization and work of ODIMM. ODA has the task to provide support to the Economics Ministry in the implementation of the state’s policies as to backing the development of the entrepreneurship, including the small and medium enterprises.  

Photo: Government