HERCEG NOVI, May 26, 2026 – Within the second call of the Small Project Fund (SPF) under the EmBRACE (Enhancing MSEs sustainaBle gRowth And CompEtitiveness) project, implemented by the Croatian Agency for SMEs, Innovation and Investments (HAMAG-BICRO), contracts have been signed for 26 new cross-border cooperation projects involving a total of 76 micro and small enterprises from Croatia, Bosnia and Herzegovina, and Montenegro. The total value of these small projects amounts to €5,687,759.24, of which €4,834,595.36 are non-repayable grants from the European Union funds under the Interreg VI-A IPA cross-border Programme Croatia – Bosnia and Herzegovina – Montenegro 2021–2027. The total value of the EmBRACE Small Project Fund project is €11,764,706 and within the two calls of the EmBRACE project, a total of €8,935,324.26 in grants has been approved for 50 small projects involving 142 micro and small entrepreneurs from the same countries.
The interim conference and the ceremonial awarding of contracts for cross-border projects were opened with a welcoming speech by the representative of the Delegation of the European Union to Montenegro, Zdravko Ilić, who emphasized: “EmBRACE is an excellent example of two key priorities of the European Union’s engagement in the region. On the one hand, we support the Western Balkans in boosting economic growth and creating new jobs, with SMEs playing a vital role in this effort. On the other hand, strengthening economic and social ties across borders lies at the heart of Interreg programmes. I am pleased to see the business community recognising this project as an opportunity, and I am confident that the partnerships created through EmBRACE will continue to thrive well beyond the project’s lifetime.”
Domagoj Mikulić, State Secretary at the Ministry of Regional Development and EU Funds of the Republic of Croatia, highlighted the importance of strengthening entrepreneurship in the border regions of Croatia, Bosnia and Herzegovina, and Montenegro. “The goal of this Interreg programme is to improve the quality of life for citizens living in border areas, as well as to strengthen cooperation and trust between our countries. This programme supports a wide range of projects in areas such as healthcare, tourism, energy efficiency, circular economy, climate change adaptation, and, more recently, entrepreneurship. This time, we are awarding contracts for 26 entrepreneurial projects with a total value of €5.7 million, of which €4.83 to apply the same rounding million comes from EU funds. I am pleased with the level of interest in the second call under the EmBRACE project; the total number of applications exceeded available EU funds sixfold. Through the two calls supporting micro and small enterprises, we have secured more than €8.9 million in EU funding,” Mikulić said.
Regarding the importance of the EmBRACE project for Montenegrin entrepreneurs, the Director General of the Directorate for European Territorial Cooperation at the Ministry of European Affairs of Montenegro, Miloš Marković, stated: “Within the second call of the EmBRACE Small Project Fund for micro and small enterprises, an initial €3 million in EU funding was allocated. Due to the large number of high-quality applications, this amount was increased. In the end, 26 projects were contracted with a total value of almost €5.7 million, of which more than €4.8 million is EU support. We are particularly pleased that Montenegrin companies are participating in as many as 25 projects. Nearly €1.8 million has been secured for their activities, of which more than €1.5 million comes from EU funds. This shows that small enterprises in the region have the knowledge, ideas, and capacity to use European funds and develop joint projects. I would like to thank all partners and institutions that contributed to the implementation of this call, as well as the beneficiaries for their dedication and readiness to contribute to regional economic development through cooperation.”
Nevena Marilović, Senior Advisor at the Directorate for European Integration of Bosnia and Herzegovina, emphasized the importance of strengthening cross-border cooperation among entrepreneurs in the region: “The projects whose contracts are being formally awarded today are of particular importance because they directly contribute to economic development, increased competitiveness, and better market integration among participating countries. They enable entrepreneurs to exchange knowledge and experience, develop joint products and services, gain easier access to new markets, implement pilot activities, and establish long-term business partnerships. Beyond the economic impact, these projects also have an important social dimension, as they encourage job creation, strengthen local communities, and contribute to building trust and cooperation among people and institutions across borders, thereby enhancing overall social cohesion in the cross-border area,” she concluded.
The Chairman of the Board of Directors of HAMAG-BICRO, Vjeran Vrbanec, emphasized the importance of EU funds in strengthening cross-border cooperation and the competitiveness of entrepreneurs in the region: “Through today’s ceremonial awarding of contracts to entrepreneurs operating in cross-border areas, we have once again clearly demonstrated how the use of European funds contributes to improving individual businesses as well as the overall competitiveness of the economy. We are therefore confident that these €4.83 million in grants will result not only in improved quality of products and services, but also in deeper business relationships among partner companies participating in this project.”
During the conference, EmBRACE Project Manager Kristina Šetka presented the results of the SPF project, and a panel discussion was also held during which participants had the opportunity to learn more about the experiences of beneficiaries from the first EmBRACE call. Representatives of the Interact Programme also shared insights on the implementation of Small Project Funds and their role within the Interreg programme.
The interim conference and the ceremonial signing of contracts under the second call of the Small Project Fund of the EmBRACE project were also attended by the Deputy Chairman of the Board of Directors HAMAG-BICRO, Ante-Janko Bobetko, representatives of the relevant ministries of Croatia, Bosnia and Herzegovina, and Montenegro, as well as representatives of the Chambers of Commerce.
The project is financed under the Interreg VI-A IPA cross-border Programme Croatia – Bosnia and Herzegovina – Montenegro 2021–2027.
The list of approved small projects is available at the link.
More information about the programme is available on the official website https://interreg-hr-ba-me.eu/, as well as on the project platform at https://cbchb.eu/cbc-cro-bih-mne/embrace/
The project is co-financed by ERDF and IPA III funds of the European Union