In such a context, particular focus should be put on supporting start-ups and SMEs in strategic sectors identified by the countries, such as tourism and digital, where they have a comparative advantage or a particular potential through their historical and natural conditions. This will pave the way to economic growth through innovation and enhanced competitiveness.In order to unlock the potential of the private sector, the EU should increase financing for businesses through substantial allocations for guarantees under the Western Balkans Guarantee Facility and by doubling grants provided under the Western Balkans Enterprise Development and Innovation Facility, the EU-led platform which is part of the Western Balkans Investment Framework. The EU will improve access to finance and risk capital for micro-, small and medium-sized companies, also to overcome difficulties arising from COVID-19.

The combination of grants and guarantees should reinforce open, innovative, business friendly ecosystems in the region based on a “triple helix” approach. This will facilitate the identification, development and promotion of innovative entrepreneurial ideas and provide support to SMEs in order to improve their adjustment capacity to the changing socioeconomic and policy circumstances in facing a broad range of challenges.

The Economic and Investment Plan for the Western Balkans sets priorities for private sector development through Flagship 9 - Investing in the competitiveness of the private sector, and Flagship 10 - Youth guarantee.

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