Problem addressed

Founders of newly established businesses (less than two years old) in the small town of Biržai in northern Lithuania lacked knowledge on the latest business leadership, management and marketing concepts, as well as soft skills such as time management, self-motivation and creativity. Such knowledge was difficult to access, and little support was available to new entrepreneurs developing their business ideas.

Innovative solution

The project offered an innovative combination of support mechanisms to newly established businesses, including group coaching, formal training sessions and individual mentoring. Overall, 17 participants (14 of whom were women) were supported to develop their business. The support was provided weekly for one year (2020).

This combined support ensured that entrepreneurs running newly established businesses (e.g. personal care and hygiene, service, baking, agriculture, retail) benefitted from a wide range of supports tailored to their business circumstances, as well as opportunities to exchange and discuss their entrepreneurial ideas with peers and lecturers.

Another innovative element was group coaching on a range of topics and activities, including horizontal skills such as self-organisation, motivation, and creativity, as well as marketing, market research, presentation of goods and services, calculation of prices, and business growth. Equally innovative were training sessions delivered by leading thinkers and practitioners, with speakers from fields as diverse as marketing, psychology, motivation and leadership training. Participants were particularly appreciative of this opportunity, with knitter Reda Kučinskaitė noting, ‘I am very excited about the opportunity in my hometown, in northern Lithuania, to listen to and learn from the best Lithuanian business lecturers: marketing specialist Indrė Radavičienė, psychologist Justina Gervytė, motivator Giedrės Urmulevičienė and others.’

Non-governmental organisation (NGO) VšĮ Šeimos centras ‘Kartu saldu’ (family centre ‘Better Together’) was the driving force behind the project, with responsibility for designing the project, implementing activities and supporting newly established businesses, as well as financial and administrative implementation of the project. The family centre saw a connection between its mission to support families in the community and the likely benefits for entrepreneurs’ families if the supported businesses succeed.

Key results and benefits

The project included reflection sessions, where participants could shape the choice of lecturers, topics, etc., ensuring its relevance. A final evaluation with participants was organised and led by the ‘s lead organisation. That evaluation highlighted a request to continue with the meetings, as a valuable means of motivation and knowledge.

During the project implementation, 17 participants received a range of supports tailored to their newly established businesses. For 40 weeks, weekly coaching group meetings provided constant support to the group and, with the help of coaching techniques, helped to develop individualised pathways for participants to grow their businesses. Twelve training sessions were organised, with an emphasis on responsible leadership and business management. Participants also received 300 individual mentoring hours. Such intensity of support would have been impossible without the project.

All project participants grew their businesses, with all businesses remaining active and operational into 2021. Although not specifically targeted by the project, the activities strongly promoted gender equality, as most businesses supported were run by women. This empowered female entrepreneurs facing additional barriers in terms of self-confidence and risk-taking. Another important effect was that the businesses supported by the project became legalised, having previously operated in the shadow economy. As a valid business licence was required to participate in the project, all businesses supported were registered and paying their tax and social security contributions.

An important soft result was the establishment of group support and networking between the project participants. Meeting weekly for one year ensured that participants developed a group dynamic and a close-knit support structure, which continued informally after the project ended.

Some project participants also became involved in other projects, such as networking between local NGOs, businesses and public institutions.

Biržai is my childhood city. I returned to it after studying and working in the capital. When I was raising my daughter, I started dreaming of transforming my favourite hobby into a business. I am glad that project "Business Innovation Incubator" coincided with my need to get help in developing and strengthening a business idea. And it's not just words.

At the end of the project year, we unanimously said that we would for sure miss the support and guidance from the project. I am very excited about the opportunity in my hometown, in northern Lithuania, to listen to and learn from the best Lithuanian business lecturers: marketing specialist Indrė Radavičienė, psychologist Justina Gervytė, motivator Giedrės Urmulevičienė and others’ (project participant, knitter Reda Kučinskaitė).

Potential for mainstreaming

The project’s methodology and approach – providing a combined range of supports to newly established businesses on a regular basis for an extended period of time - could be transferred to other contexts. The combination of supports enabled project participants to consider and implement development pathways for their own businesses, using a rich variety of inputs and approaches.

Group mentoring proved particularly successful, allowing new entrepreneurs to benefit from the group dynamic and build their skills in a group environment. This was an important support for those at the start of their business path, who are just beginning to understand the business, marketing, price development and other business fundamentals. In the group setting, they benefit from both the coach and other participants’ inputs.

Individual mentoring tool was less successful, as participants’ businesses were not sufficiently mature to benefit fully from one-to-one support.

The support provided by the Biržai Town Local Action Group (LAG) was key to the project’s success. During the 2017-2021 period, Biržai Town LAG has implemented 36 ESF-supported projects, covering a wide range of activities and target groups, including business and entrepreneurship support, activation for older people, activities for people with disabilities, activities for young people, social assistance for people at risk of poverty, and others. Active and deep support from the local municipality was central to the success of the projects and to Biržai Town LAG activity overall, allowing a genuine local partnership approach to develop. 

A key challenge now is to continue providing support to projects and activities first funded through Biržai Town LAG. Continued funding of such activities through the ESF has been considered, for example, to ensure that local needs continue to be met.