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    Finding a job is never without its difficulties, but some people encounter additional barriers when trying to access employment or financial resources.

    The European Investment Bank, the European Union’s financing arm, worked with UniCredit Bank Serbia to understand these barriers, leadership opportunities and access to finance – and to develop solutions.

    “We undertook an in-depth social analysis to develop criteria that reflect the context of Serbia and that seek to benefit those segments of the population who traditionally face additional barriers to accessing the labour market,” said Julia Chambers, principal advisor at the European Investment Bank who worked as the social inclusion specialist on the project.

    As a result, in 2020, the European Investment Bank launched an innovative €30 million social impact financing scheme for small and medium-sized enterprises (SMEs) in Serbia that support and promote the employment, entrepreneurship and leadership of women, young people, and vulnerable social groups.

    The loan includes “a structured performance-based reward mechanism that incentivises and rewards the SMEs that generate positive social impact,” says Ines Hobdari,  the loan officer leading the European Investment Bank team that originated and structured the loan.

    That is why the credit line is complemented by an investment grant under the Economic and Resilience Initiative Fund. It also enables the provision of additional technical assistance to support UniCredit Bank Serbia in implementing these social impact credit lines.

    “Our Impact Finance Facility rewards small and medium-sized enterprises for their support to economically disadvantaged segments of the population,” says Michael Steidl, the European Investment Bank’s senior advisor for SME and climate finance.



    Reviving workforce interest in the struggling textile sector

    Serbian textile company Jasmil, a beneficiary of this credit line, has long been committed to supporting the employment of women and people with disabilities.

    “As a large company, we require a wide range of roles,” says Dragan Vuletić, the company’s director. “Our industry is labour-intensive, demanding significant employee involvement in both production and sales. That’s why we focus on enhancing the work environment through continuous training and education.”

    The company applied for the loan to further promote the inclusion of women in all aspects of its operations and invest in working capital.

    “Businesswise, we have benefitted from favourable loan terms and the grant we’ve received from the bank,” says Vuletić. “From the social perspective, we are committed to contribute to increasing the employment of women, especially in the municipalities where our production facilities are located, while also boosting the number of women in management roles.”

    Attracting and retaining the workforce is particularly important for the textile industry, which is losing its appeal due to the significant influx of imports from the Far East.

    "Moving forward, we are determined to continue improving working conditions for all our employees and supporting their professional development,” Vuletić says. “Given current market conditions, we recognize the critical value of a skilled workforce and the need to work closely with them."

    Dragan Vuletić

    Appointing women to managerial positions

    Similarly, Uspon Tehnika, a Čačak-based company, welcomed the opportunity to secure affordable financing for its business expansion, while promoting employment. Specialized in computer assembly and the distribution of technical equipment, the company nurtures a family atmosphere among its workforce, which now exceeds 100 employees.

    “We believe that our people are our greatest asset,” says Vladimir Krstić, the company’s director. “Without them, we wouldn’t be able to bring our ideas to life. That’s why, in addition to offering jobs, we focus on providing career development opportunities for our staff.”

    Since securing the loan, the company has hired 25 new employees, including six women and 19 individuals under the age of 30.

    “The credit line has given us the added momentum to invest in our employees through various trainings and programmes,” Krstić explains. “It has also contributed to an increase in employment and the inclusion of individuals from marginalized groups. “

    In addition to supporting business expansion, these new financial resources have enabled the promotion of women to leadership positions.

    “I was hired as head of customer complaints department thanks to the UniCredit and EIB credit line,” says Valentina Kovačević from Uspon Tehnika.

    Although the job is quite stressful, the department’s team led by Valentina is able to ensure successful resolution of complaints and retain clients’ loyalty.

    “At times, customers doubt the quality of service provided by us as women, but we quickly prove them wrong,” she concludes.

    Vladimir Krstić
    Valentina Kovačević

    Employing more women construction engineers

    In the Western Balkans, women face unfair treatment in the job market. Over half the productive potential of women aged between 15 and 64 remains untapped, according to a report by the Regional Cooperation Council.

    This is mostly due to social norms, lack of childcare facilities, and the traditional distribution of household roles. Women’s employment rates in the region are consistently below those of the European Union, with high informal employment. In Bosnia and Herzegovina, men are on average paid 37.8% more than women, and 15.8% more in North Macedonia.

    Difficulties women face on the labour market vary depending on the industry, but the construction sector  is particularly challenging due to long working hours and physically demanding conditions. With over 150 employees, the Belgrade company RAS Inženjering is looking to address these issues with its inclusivity practices.

    “In our company,” says Executive Director Vuk Vujović, “we have been traditionally employing women in administration, bookkeeping, and financial departments, as well as for warehouse and human resources operations. They primarily held office-based positions.”

    “However, since some five to six years ago, we began hiring female construction engineers. And now, when bringing on new engineers, we strive to maintain a balanced ratio of men and women.”

    The construction sector is also unique for its highly flexible payment-due dates, often extending up to four months. Additionally, the prices of construction materials can fluctuate significantly in the market, impacting the cost of projects that may take two to three years to complete. Without access to bank credit lines or sufficient internal resources, a company may struggle to complete a project.

    “Since we are already fostering inclusivity practices, our motivation for applying for this loan was to further develop these efforts, while reducing costs, effectively aligning value with purpose.”

    For each new employee, the company assigns an experienced mentor to guide them through processes and oversee their career development. It also promotes open-door communication between staff and management at all levels, ensuring efficient problem-solving.

    “Owing to our reputation, extensive portfolio of projects and employee relations practices, people are eager to work for our company and apply to our job postings,” Vujović says.

    Vuk Vujović

    Fostering inclusivity in the poultry sector

    When it comes to agriculture, social responsibility practices are gradually being implemented to ensure the competitiveness of Serbian products in the other markets. Although the country has yet to align its poultry sector regulations with the EU, egg-production company Animal Commerce is already adopting the necessary practices to meet EU market expectations once exports are permitted. Inclusivity in employment is also a part of these efforts.

    “Our business premises are located in Vojvodina, a region known for its multiculturalism, with people from diverse nationalities and religions,” says Aleksandar Lejić, financial director of Animal Commerce.

    “This is reflected in our workforce, which comprises some 50 employees.”

    The company applied for the impact incentive loan, not only because of its favourable terms, but also to support the integration of inclusivity into its management strategy.

    “What is new as a result of this credit line is the formalization of inclusivity processes and policies within our company's framework,” Lejić continues. "This will also enable us to expand into different markets, such as the European Union, once the export is enabled.”

    Technical assistance received under this credit line made a huge difference in supporting these efforts.

    “Projects like this can encourage people to consider and embrace inclusivity, making it an effective approach to achieving that goal,” Lejić says.

    Aleksandar Lejić

    Incentives for companies that implement inclusive practices

    To qualify for an incentive grant alongside the loan, companies need to meet specific, predefined targets related to employment, entrepreneurship, leadership and professional education.

    Donor resources under the Economic Resilience Initiative Fund have been a determining factor in making this credit line possible, as the financial incentive for companies – one of the key components of the project.

    This trust fund pools donor contributions to help unlock, amongst other things, investments that can create new opportunities, especially for vulnerable groups, including young people and women in the Western Balkans and EU Southern Neighbourhood.

    “I am sure that this credit line contributes to further improving the development of our economy,” said Nikola Vuletić, president of the executive board of UniCredit Bank Serbia, at the official launch of the programme which took place in Belgrade in June 2022, “with the goal of building a more sustainable society.”