Doing business in AIDD of better off communities

Iulius Bedea transformed a simple NGO into a real business, offering consultancy services as well as developing his own projects. He is also one of the pioneers of so-called social entrepreneurship.

Anda Sebesi

Iulius Bedea, president of the Association for the Integration of Sustainable Development (Asociatia pentru Integrarea Dezvoltarii Durabile, AIDD), chose to set up an NGO back in 2002 but later decided to transform it into a real business. He subsequently started to offer consultancy services for social and economic development, the management of projects financed by the European Union and training for European business development. But AIDD also runs its own social projects for the local community in Hunedoara County.

Bedea’s studies have helped him a lot during his career, as he graduated from two masters programs (one in psychology and the other in the economy and management of regional development). On top of that he also took some specialized courses in project management, cost-benefit analysis, building, implementing, monitoring and the evaluation of projects financed through structural instruments.

The idea to offer consultancy through AIDD came when Bedea spotted a gap on the local market. “I chose this field of activity because I thought that there was a need for an interface between the public authorities and citizens. We can better identify problems, needs and opportunities for development because we are in permanent contact with civil society. In addition, we are able to find solutions to build and implement irreversible public-interest projects at local level,” says the young entrepreneur. He set up AIDD drawing on the experience he had gained in the civil society environment. Its main objective was to implement projects intended to meet local social-cultural needs, which would be developed both in Simeria (his birthplace) and Hunedoara County. Later on he added consultancy services for social projects to his portfolio.

“After a detailed analysis of Hunedoara County and some specific communities, I created in partnership with the public authorities some strategies meant to increase the absorbency of European funds in the region,” says Bedea. “I intended to build sustainable projects especially at the institutional level. This is why AIDD established the Center Europe Direct with the financial support of the European Union in 2008.”

Bedea’s business enjoys significant potential, as at present many institutions, especially local public authorities, are faced with a dearth of consultants specialized in attracting European funds, building and implementing projects. “There was a real need for such services. An NGO with expertise in this field can be a trustworthy partner and consultant for creating and developing projects of crucial importance to a specific area,” says the business consultant.

Asked about the most difficult moment his business has faced, Bedea replies that it was when the payment for two major AIDD projects was delayed by six months. “There were very difficult times because those two projects alone could cover the operational and HR costs. I also tried to take out a loan from some lenders but I didn’t succeed because they couldn’t lend money to an NGO unless it could provide a financial or real estate guarantee. Which is very difficult or even impossible for such a player,” remembers Bedea. But he sees difficulties as challenges rather than obstacles. “We managed to get through this tough period and the major benefit of it was that I learned what it truly meant to implement a real, sustainable project,” says the entrepreneur.

If he started another business, Bedea doubts he would change anything major because the kind of company he runs needs permanent adjustments to the new market conditions and economic environment. “I would probably have switched my interest to another area of activity where you can find more highly qualified personnel,” adds the businessman. And every project is unique. “For me, each project is a challenge that starts when I read the guide for financing and goes to the completion of the project,” he says.

The consultancy field is a pretty crowded market at the moment as many players are fighting over a limited number of potential customers. In Bedea’s opinion, the key to succeeding in this field is to find the right service for the right need and to be able to offer it at the highest quality standards. Plus, consultancy services generate long-term benefits that are not immediately visible to customers. “It is not enough to gain the trust of a partner or a customer. You need to maintain this trust, and to do so it is crucial to be informed about everything that happens in your field of activity. Besides, more important than this is to make your customers understand your services,” says Bedea.

He adds that at the level of Hunedoara County, AIDD has a market share of about 5 to 7 percent, with his projects, reliability and promptitude being the main factors that differentiate his business from the crowd. In the future, Bedea intends to identify new resources and opportunities for development, consolidate the implemented projects and create a favorable context to increase AIDD’s level of sustainability.

editorial@business-review.ro

Company profile – AIDD

Established year: 2002

2010 turnover: EUR 63,500

2011 estimated turnover: EUR 70,000

Number of employees: 5

Initial investment: RON 2,500

Total investment: RON 20,000