„The Carpathians Venture Capital Fund (Kárpát-medencei Vállalkozásfejlesztési Kockázati Tőkealap – KMVA) has become fully operational and soon enough the first investment decisions will be made”. Among others, this was announced by Imre V. Csuhaj, Chief Executive Officer of Széchenyi Venture Capital Fund Management Ltd. operating KMVA, at one of the panel discussions of the 29th Bálványos Free University held in Tusványos (Baile Tusnad Romania).
With its history going back for decades, the event serves as an important venue to make links between Hungary and Hungarian minorities living in neighbouring countries in terms of culture, politics and economy. One of the objectives of KMVA is to strengthen the economic relationships between Hungary and the neighbouring countries, therefore, the event created an excellent opportunity to introduce KMVA and develop its business relationships.
Among the panels focusing on the competitiveness of national economies and the engagement of the state, the most interesting ones were about cross-border economic development, financing opportunities and business co-operations. “The dialogue with young entrepreneurs was especially inspiring” – said Imre V. Csuhaj, who expressed his devotion to tangible solutions based on business opportunities. Personal participation offered the opportunity to meet cross-border businesses directly, as well as an exchange of experience, which can be the starting point for future co-operations.
In the Carpathian region, opportunities and resources lying in cross-border business expansion are still not fully exploited – regardless of whether such opportunities are linked to Hungarian, Romanian, Slovakian companies or any other entrepreneurs who intend to expand and develop their business activities in Hungary. These cross-border investments actively restore the organically tight economic fabric of the region.
The unprecedented economic integration of the countries in the Carpathian region is extremely important since their national economies are far too small to become significant on the stage of world economy. Moreover, dynamic economic development and expansion of the border regions would be a considerable retaining factor for the Hungarian people living there.
The government established KMVA with the express intention to facilitate the achievement of its goals related to national economy and regional economic development. Consequently, a financial instrument was created that is to finance the long-term networking with, and establishment of international co-operations involving Hungarian micro, small and medium sized enterprises – first and foremost with SMEs of neighbouring countries – related to networking, profitable production, service provision, research and development, and workforce training, as well as successful maintenance thereof.
Carpathians Venture Capital Fund started its operation last autumn, and the first investment applications have already been evaluated. The Fund provides capital resources available for cross-border co-operations for production or development – based on commercial basis and under terms and conditions favourable for the original owners. Predominantly, there are two forms of capital resources:
(a) capital investment promoting international expansion of micro, small and medium sized enterprises operating in Hungary (and especially expansion aimed at a neighbouring country);
(b) promotion of establishing business start-ups and business network development in Hungary of cross-border micro, small and medium sized enterprises.
Accordingly, although the economic co-operation can be initiated either by enterprises registered in Hungary or in any of the seven neighbouring countries – that is, Austria, Croatia, Romania, Serbia, Slovakia, Slovenia and Ukraine –, the capital investments can at all times only be realized in solely Hungarian business entities.