Despite the global financial and economic crisis, Albania still recorded economic growth rates of over 3 %. However, there are huge regional differences within the country and poverty remains widespread, especially in the northern provinces and mountain regions. Unemployment and a low level of value-adding economic activity are the main causes of poverty.

Objective of the programme was: "The competitiveness of small and medium-sized enterprises has increased in selected sectors and regions. The relevant ministries, economic promotion institutions in the cities and regions, private service providers, business chambers and associations work together to improve conditions for investment." PEM CONSULT has been awarded to contribute to the following components.

• Promotion of Innovation networks
• Improvement of BDS (with a special focus on the services of the supported associations)

The programme supported the initiation of local and regional innovation networks with businesses and/or local public and private sector representatives. In difference to the traditional LRED initiatives the objective was not to create and strengthen institutional local structures and infrastructure development (as e.g. set-up of an LRED office). 

Rather the programme followed the interest to encourage and initiate smaller initiatives, which are looking for quick wins and action orientation. They provide new ideas, learning by doing implementation, the encouragement of new processes and implementation.

The BDS includes an increase of the financial sustainability of the associations and strengthening BDS providers for the application of IPARD and IPA funds (channeling funds to target groups) along business plan or CEFE models and through creating linkages with banks.