The Fund for Innovations and Technology Development presented the results of the performance analysis of all companies supported, i.e. co-financed by FITD. The comparative analysis made from the average values of financial indicators at the company level, before and after the investment in the innovative project shows a positive trend, i.e. cumulative revenue growth, positive results of companies during the crisis, but also revenue growth for the state treasury.
“We are proud of what we are doing as a leading government institution for supporting startups and innovative companies in the Republic of North Macedonia, to improve access to financial support for companies, supporting and encouraging innovation. The positive results from the performance analysis of the entire portfolio of companies co-financed by FITD are another confirmation of the commitment and investment we are making to advance the competitive knowledge-based economy in the country. These results are a good indicator of how we can increase the effectiveness and efficiency in the use of funds and co-financing of the Fund, from which the Macedonian innovative companies will benefit the most,” said Kosta Petrov, director of the Fund for Innovations and Technology Development, adding that the recommendations and future financing directions are especially important because the Fund has limited funds and it is most important to direct them to sectors where the highest performance can be achieved with additional financing, i.e. the largest number of jobs, solid staff costs and high revenues for the state in the form of taxes to enable further financing of new projects.
According to the data, the sectors with the best performance are those where the human factor has the greatest importance, i.e. the IT sector with a value of 21.27 million euros and a total of 171 co-financed projects and “Start-Up / Spin-Off” with a total value of over 6 million euros, average revenues that increased by 197 percent, profit growth of 105 percent and 119 percent increase in the number of employees.
At the portfolio level, the companies supported by FITD in the period from 2017 to 2020 achieved cumulative revenue growth of 50 percent, while the cumulative profit growth of the entire portfolio is high 75 percent. For the respective period, the growth of employees is 44%, with the companies supported by FITD in 2020 employing a total of 8439 employees. What stands out is the cumulative increase in the average net salary of 9 percent, with the amount of the average net salary in 2020 being 516 euros, an amount that exceeds the state average.
From the analysis it can be noticed that the portfolio of companies financed by FITD achieved positive results, i.e. an increase in the crisis 2020 compared to 2019 and the decline in GDP. In the crisis year alone, revenues have risen by 8% and profits by as much as 21%. In fact, the crisis has helped to optimize a larger number of processes in companies and business models, which in turn has directly affected profitability and its growth. It is noticeable that the companies have increased the number of employees by 3 percent with a parallel increase in salaries of 5 percent because the average monthly net salary per employee has increased from 491 to 516 euros.
Otherwise, the total value of all 669 projects financed by the Fund until June 2021 is a total of 88 million euros, of which 55% were co-financed by the Fund, and 44% of the companies themselves, with an average project value of over 132 thousand euros. In the same period, the number of new jobs in the companies from the portfolio increased by over 2500, and the budget expenditures of the companies, i.e. the revenues for the state budget in the form of profit taxes, personal income tax and employee contributions amounted to 26 million euros.
Part of the Fund’s recommendations is the creation of training and education programs for companies that have not received or do not need financial support FITD for research and development, because the significantly low investment in research and development in North Macedonia is an indicator that general improvement of the domestic economy in this regard, in companies that have the capacity and do not use it for innovative solutions. Additionally, according to FITD, training and consulting sessions for entrepreneurs to establish a new business are crucial, which will increase the likelihood of success and achieve better financial results in a shorter time interval.
The complete analysis is on the following link https://fitr.mk/