USAID MACEDONIA SMALL BUSINESS EXPANSION PROJECT Quarterly Report April 24, 2012 – June 30, 2012

The contract was signed on April 24, and CARANA initiated the mobilization of staff and resources to establish Project offices, organize logistics, hire staff, develop an initial work plan, and undertake necessary preparations for a quick and functional Project start-up process. Key personnel were hired and deployed immediately after the contract with USAID was signed. Expat Chief of Party (COP) Mr. Carl Larkins and Deputy Chief of Party (DCOP) Ms. Mirjana Makedonska started their engagement with SBEP in early May. The Regional Planning and Development Specialist based in Tetovo, Mr. Dimce Damjanovski, also joined the Project in May. Communications and Monitoring and Evaluation Manager Ms. Tatjana Mitevska, and Finance, Accounting and Office Manager Ms. Svetlana Antik joined SBEP in June, after completing their engagement with USAID's Macedonia Competitiveness Project (MCP). All individual contracts of locally hired staff were signed in June, and Project staff was registered and insured according to Macedonian Labor Laws. The SBEP office in Skopje was established in June, with a new office space identified, a lease agreement signed, and the office becoming available on June 15. The office in Tetovo was also identified in early June, with a lease agreement signed, and the office becoming available on June 15. Both offices have been equipped with computers, printers, office materials, kitchen supplies, and basic electrical appliances. The business cards for SBEP staff have been designed and sent out for printing, and the Project's USAID-branded signs have been designed and will be printed and installed at the Tetovo and Skopje offices. The Project has identified the need for purchasing a Project vehicle, as Project activities will be spread throughout rural areas of the Polog and Pelagonija regions. A thorough financial analysis confirmed that it is more cost-effective to purchase a vehicle than to lease one, and CARANA initiated the appropriate vehicle procurement process. Meanwhile, SBEP made arrangements with a local car rental agency, and is renting a vehicle as an interim solution. SBEP has contacted another USAID project that has conducted market research on car dealers selling US-made vehicles in Macedonia, and a meeting was held with the dealer to discuss the possibility of purchasing a vehicle. The Project staff has been actively engaged in introductory meetings with potential partners in the Pelagonija region, including mayors, Local Economic Development (LED) officers, regional development centers managers, and small business owners. The Project has also met with local consultants and potential business service providers and organizations (BSOs) that could provide various types of business support services to local businesses. Additionally, the Project has had meetings with other USAID projects that have complementary scopes, and which may present opportunities for synergies and collaborative efforts.