South Eastern Europe Desk

Nearshoring made easy!

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Why South Eastern Europe?

Did you know that the picture was taken in Sofia, Bulgaria? South Eastern European markets have emerged!

The dynamic Balkans with stunning nature between the Adriatic and the Black Sea, is home to 35 million inhabitants. Emerging markets, attractive investment conditions, optimal conditions for renewable energies, and a young and well-educated workforce have already convinced around 6,000 German companies to establish a presence.

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Near-Shoring made easy – South Eastern Europe offers many opportunities

The region offers optimal conditions for foreign companies: A young bilingual population with English as the first foreign language and more and more schools teaching German provide numerous well-educated workers. Additionally, the diverse region offers opportunities for numerous industries:

  • Serbia is the third-largest producer of raspberries and has already established industrial sectors
  • Albania is a trusted textile manufacturer for Italian fashion houses
  • Bosnia and Herzegovina stands out as a leading furniture producer in the region
  • North Macedonia has a growing presence in manufacturing with its automotive suppliers and dedicated industrial zones
  • Kosovo is developing into an emerging IT hub
  • Greece has had a strong focus on renewable energies for years
  • Bulgaria has, for example, a strong pharmaceutical and cosmetics industrial sector

The region has a lot to offer. Positive economic and political developments multiply South Eastern Europe’s potential: Greece was even announced the most successful economy by "The Economist" for the second year in a row in 2023. The economic opportunities also benefit from short delivery routes, thanks to direct proximity to the EU or even EU membership as well as countless infrastructure projects to further improve delivery routes.

Renewable energies are also gaining more and more relevance. The numerous sunny days and strong winds in coastal regions offer huge potential. Hence, the region sees development potential in the role as an energy exporter. We are proud to directly support the energy transition on site with our group's first own solar park in Kosovo.

We are looking forward to supporting you with your business projects and offer advice with the help of our local banks with deep, long-standing market know-how.

We provide in-depth support:

  • Processing your payment transactions & account management
    Would you like to process your payment transactions with the region securely, efficiently and cost-effectively? Our payment transfer options facilitate cross-border transfers at excellent conditions. Open your business account now!
    If you would like to open an account in South Eastern Europe, we will support you both in Germany and locally. We will help you with your existing business or with your (new) start in South Eastern Europe. We welcome you to contact us!

  • Investments on site
    Leverage your local assets and benefit from experienced support and competitive interest rates for financing investments and international trade.

  • Secure transactions
    We create trust and safeguard your import and export transactions with our trade finance solutions. Contact us to learn more about bank guarantees and letters of credit.

  • Investments in renewable energy projects
    Develop your renewable energy project with the support of our Renewable Energy Centre. Together with our local banks, we support your project in the region. Find out more at Renewable Energies or contact us at renewable_energy_centerprocredit-group.com.

Doing Business as an SME in South Eastern and Eastern Europe

Step No. 1: Find Your Ideal Market in South Eastern and Eastern Europe

For German MSMEs looking to expand their business abroad, countries in South Eastern and Eastern Europe (SEE/EE) have become some of the most favourable destinations in recent years. SEE is a thriving region with diverse market opportunities across various industries, holding significant growth potential for companies operating in sectors such as manufacturing, food processing, renewable energy, or information technology, among others.

The countries in the region offer various opportunities suitable to a broad range of business needs. This is why it is essential to conduct thorough research, compare the markets and learn as much as possible regarding the advantages, potential and challenges each location brings before deciding which one is right for your business.

For example, Bulgaria and Kosovo, with its skilled and tech-savvy workforce, are particularly suitable for IT-nearshoring. North Macedonia has established itself as an excellent location for automotive suppliers, whereas Serbia and Romania offer great potential when it comes to industrial activities thanks to its well-developed infrastructure.

To find out more about the differences between SEE/EE countries as well as their advantages, MSMEs can consult organisations specialised in facilitating the expansion of business activities into South Eastern and Eastern Europe, such as the German Chamber of Commerce (AHK), German Trade and Invest, or other specialised location scouts. Furthermore, ProCredit Bank is committed to helping companies set up their business in South Eastern and Eastern Europe.

Step No. 2: How to Set Up a Business in South Eastern and Eastern Europe

For an SME with plans to expand its operations into South Eastern and Eastern Europe, the journey starts with finding the ideal market within the region for them, followed by opening a local company and actually starting a business there.

Once these steps are completed, and the business operations are under way, the next challenge that becomes obvious is managing the local subsidiary in a foreign country. A successful approach to this challenge involves consideration for several key aspects, such as legal and regulatory compliance, operational activities, as well as specific political and cultural considerations.

From a legal and regulatory perspective, you need to be able to navigate the local laws specific to the country you’ve chosen as your next expansion destination, which includes labor laws, taxation, data protection, and intellectual property, among others.

When it comes to the everyday operation activities, you have to think about areas like financial management, including controls and reporting, as well as specific accounting standards that might be different from those in Germany. Having a well-prepared and efficient treasury department is also essential.

Another important aspect of managing a local subsidiary is the supply chain, which includes suppliers and providers of logistics services. Finally, marketing and sales will also be crucial to a successful cross-border business operation, and that requires an adapted strategy for promotion that would take into consideration the local culture and local consumer behavior.
With all these challenges and potential hurdles in mind, companies looking to expand their business in South Eastern and Eastern Europe could use some help and support so that they can manage their local subsidiaries successfully.

ProCredit Bank has the means to do exactly that. Our relationship managers can support you from Germany and connect you to our teams on site, and through our local ProCredit banks, we can connect your local accounts to your main treasury management system and assist you with any aspect of your day-to-day operations in the region.

How Can We Help You?

Questions?

Send us an e-mail!

Bastian Heinz

Corporate Banking

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