In the first three years, support is expected for 50 startups, and startups from the diaspora are also welcome. The program is implemented by 'Partners Albania for Change and Development.' Juliana Hoxha explains that these startups will receive integrated support between consultancy and financing. Partners Albania has worked over the years in supporting social businesses, encouraging and monitoring green ideas, philanthropy, and empowering society. In an interview with Businessmag, she also discusses the high level of philanthropy in Albania, especially during the earthquake period.
Partners Albania will implement the 'Challenge Fund' program in the next three years. What do you aim to achieve with the development of this program? Will it focus on Tirana, or is there a possibility of expansion nationwide?
"Challenge Fund" is part of the EU4Innovation Program, a multi-donor action program co-financed by the EU, the German Federal Ministry for Economic Cooperation and Development (BMZ), and the Swedish International Development Cooperation Agency (Sida). EU4Innovation is implemented by GIZ and Sida in its second phase for the three-year period 2023-2026. Challenge Fund is managed by Sida and will be implemented in collaboration with Partners Albania for Change and Development over the three-year period, 2023-2026. The main objective of Challenge Fund is to empower the ecosystem of innovative Albanian startups by offering financing opportunities, technical support, mentoring, networking, and exchange of experiences. Startups from all cities and regions of Albania are allowed to apply, and those outside Tirana will have an advantage in the evaluation process to ensure geographical coverage and reduce the focus solely on the capital.
What does the program specifically entail? What are the areas and criteria for startups to apply, and how will technical and financial support be distributed?
"Challenge Fund" is organized into three application rounds and aims to support around 50 startups (micro, small, and medium enterprises - MSMEs), with a total Fund value of 1,000,000 Euros. The first call for applications closed on December 22, receiving 247 applications for support. Currently, we are in the evaluation phase. The three main categories eligible to apply for the Challenge Fund scheme are:
-Startups created by an individual or a group of individuals in the early stages of developing their innovative idea, still unregistered in the National Business Center (QKB). The maximum grant support for this category is 10,000 Euros, up to 95% of the total budget.
-Growth-stage startups, registered as an MSME entity in QKB within 12 months from the opening date of the grant call. The maximum grant support for this category is 20,000 Euros, up to 80% of the total budget.
-Expansion-stage startups, registered as an MSME entity in QKB from 13 months to 5 years from the opening date of the grant call. The maximum grant support for this category is 30,000 Euros, up to 70% of the total budget.
The call is also open to the Albanian diaspora and foreign residents in Albania, with the condition that the business is registered or will be registered and operates in Albania. Startups from any economic sector are allowed to apply for grant support under this scheme. However, priority will be given to sectors considered to have high potential and importance in the development of the Albanian economy, such as tourism and related sub-sectors, agriculture and related sub-sectors, green economy, and innovative solutions for climate and energy, as well as ICT as a connecting technology for various economic sectors.
The application and evaluation process is entirely online through a dedicated platform, reducing paperwork for environmental protection, increasing transparency, and monitoring.
In addition to financial support, winning startups will also receive technical support through a dedicated technical assistance program, aiming to enhance the capacities of Albanian startups to initiate or strengthen their business initiatives. The program will be combined with training, mentoring, and study visits to successful enterprises within and outside the country.
Partners Albania is involved in several programs simultaneously. Which ones would you highlight for their impact on the country's economy?
Our work in economic development is closely linked to ensuring social cohesion and sustainability. Partners Albania has a portfolio of long-term programs that aim to empower social and economic groups at risk or marginalized through supporting entrepreneurial initiatives or creating new job opportunities.
I would highlight our Green Ideas program, which has been providing financial and technical support for innovative green startups in agriculture, tourism, handicrafts, etc., for 12 years now. The program has a special focus on providing business opportunities for startups that operate in line with sustainability. We consider it a success that we have been able to offer opportunities for startups operating outside Tirana, in rural areas and small communities, with significant social impact as well as economic.
Another program worth mentioning is our ongoing effort in establishing social enterprises on properties confiscated from criminal and corrupt activities, known as the CAUSE and TWIST programs. It's a pioneering effort, not only for Albania but also for the region, making us proud of the achievements so far and expanding the implementation practice by involving various organizations in the country operating in such properties.
An important and carefully observed aspect is philanthropy. How do you see Albanians ranking in this direction over the years? And have recent crises, the pandemic, and the war in Ukraine influenced the decrease in philanthropic activities?
Analyzing the last five years (2019 - the first half of 2023), we observe a sustained and exponential growth in donations year after year. The year 2019 was an exceptional year when Albania was hit by one of the most powerful earthquakes, resulting in 51 lives lost, 3,000 injured, and tens of thousands left homeless. This year marked a record donation of 12.5 million Euros. In 2020, the year of the coronavirus, we see a temporary decrease in donations, partly attributed to reduced media reporting but also to the weak economic performance of the private sector and family economy.
In 2021, philanthropic activity shows vigor again, with a total donation value of 2.5 million Euros, doubling in 2022 with 4.4 million, and just in the first half of 2023 with a total value of 9.6 million Euros. While we see an increase in donation values, there is consistency over the years regarding the issues for which donations are made and the main beneficiaries. The three main issues for which donations are made are poverty alleviation, health, and support in providing services for marginalized groups. Children and youth make up the largest group of beneficiaries, followed by women in vulnerable situations and the elderly.
An important developmental trend we observe in Albania is the dominance of donations through online and offline campaigns. For the year 2022, about 87% of the total donation volume was collected through this method, increasing to 99% for the first half of 2023. Online platforms such as Facebook and crowdfunding are significant channels used by individuals. The number of donors follows the same progression, marking a progressive increase in the number of individuals involved in philanthropic activities. For us and our work, this marks a significant and encouraging development, indicating increased citizen involvement and the strengthening of human solidarity.
With a historical direction now established for Partners Albania, what would you highlight as the most significant achievements over the years, and what are the objectives for the coming years?
Partners Albania has 24 years of work in serving its mission to support civil society and facilitate cross-sectoral cooperation, aiming to strengthen democratic institutions and advance economic development.
Over these years, there have been numerous challenges, sometimes with tough battles reflecting developments in the country and the sector. However, I firmly believe that they have been efforts that, thanks to an excellent and dedicated professional team, as well as loyal supporters and collaborators, have been rewarded with several achievements.
In my opinion, based on regular formal assessments we receive from our beneficiaries, I would highlight our contribution to creating a legal and practical environment where civil society organizations can operate freely. Developments over these two and a half decades have been fundamental, and we, with our leadership, have influenced significant new developments, whether legal or institutional, that have improved the environment where the civil society sector operates.
Partners Albania, as the largest provider of training services for the sector, has contributed to the professional preparation and development of entire generations of non-profit sector employees and the strengthening of management systems in the sector.
Finally, for me, the consolidation over the years of Partners Albania as an institution with high professional standards, management capacities, responsibility, and transparency is significant.
Today, Partners Albania comes as a trusted logo in building alliances at the regional and global levels. All of these form the basis of our confidence to continue our work in addressing the mission for which we were created.
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