Building Strong Start-ups and SMEs: A Comprehensive Support Framework

By project UnicornQuest

Published on 09 April 2025

Republic of North Macedonia

Severna Makedonija

About this good practice

The Youth Entrepreneurial Service (YES) Foundation addresses critical challenges faced by young entrepreneurs (up to 35 years old) and small and medium-sized enterprises (SMEs) in North Macedonia, such as funding opportunities, business development expertise, and opportunities for innovation. The focus on promoting entrepreneurship and fostering youth employment stems from the need to create sustainable economic growth and strengthen the country's entrepreneurial ecosystem.
A key component of YES’s work is its business incubator, which provides affordable office space, co-working areas, meeting rooms, and training facilities to help start-ups and SMEs grow and access new markets. The foundation also offers business development support through mentorship, expert consultations, legal advice, and specialized training. It facilitates connections with clients, funding sources, and networking opportunities, including internationalization programs. In addition to the incubator, YES supports broader initiatives such as educational programs, innovation, and policy advocacy to foster a more favorable environment for entrepreneurship.
Main stakeholders include domestic and international mentors, business experts, consultants, and partner organizations such as the Enterprise Europe Network (EEN). The beneficiaries of YES's practice are primarily young people, start-ups, and SMEs, which gain the tools, knowledge, and connections necessary for business growth and increased employability.

Resources needed

The incubator cost approximately 450,000 EUR for renovation and 250,000 EUR for initial operations, funded by a public-private partnership with donors and state-provided space. It’s sustained through subsidized rent, service fees, and project funding. Three core staff and tech personnel are needed.

Evidence of success

This practice is considered successful due to its high impact and measurable results. The incubator currently supports 16 companies, with over 150 companies having passed through, maintaining an 85% survival rate. YES has conducted over 2500 mentoring sessions and supported more than 3000 companies through various programs. Additionally, 30% of incubator residents have been involved in internationalization programs, with over 300 companies participating in EEN’s B2B events and workshops.

Potential for learning or transfer

The Youth Entrepreneurial Service (YES) Foundation's practice offers valuable lessons for promoting youth entrepreneurship and SME growth. Its success stems from integrating affordable office space, mentorship, training, and networking into a comprehensive support framework. Collaboration with public and private sectors, particularly international networks like the Enterprise Europe Network (EEN), plays a key role.
For successful transfer, a strong partnership between public authorities, private businesses, and international organizations is essential. A robust ecosystem of mentors and consultants is also needed to provide targeted business development support. Challenges may include limited financial resources and the need to adapt the practice to local regulatory environments and business cultures. Regions in South Eastern Europe, particularly those with similar challenges, could benefit from this model, which has already supported over 3000 companies in North Macedonia.