Transcript OPĆI PROGRAM MJERA

SUPPORT MEASURES
FOR SME’S IN CITY
OF RIJEKA
Bruxelles, 28.05.2009.
Rijeka is the main crossroad of adriatic tourist traffic
coming from middle Europe towards middle and south
Adriatic. It is an important crossroad of highways and
roads joining the background through Gorski kotar region
where mountain Dinara is only 40-50 km long. Roads from
Rijeka lead towards Istra and slovenian border in the
North, to cities and country inland in the Northeast, as well
as to the littoral and Dalmatia. The city is an important
railways center and the airport Rijeka in situated on the
island of Krk.
CITY OF RIJEKA
Rijeka is seat of Primorsko-goranska county:
 area: 3.582 km2
 population: 350.000
To Rijeka also gravitates:
 Rijeka’s ring
(8 cities and counties)
 population: 205.000
 Urban area: 44 km2
 Urban population: 144.043
RIJEKA’S ECONOMY
Period of comparation I-IX 2008 / I-IX 2007 , INDEX
All
Small
Medium
Big
Number of entrepreneurs
107,1
107,3
93,5
116,7
Number of employees
106,2
105,9
97,7
109,7
Revenues
107,9
114,7
91,4
107,4
Expenses
110,3
114,2
92,5
112,9
Investments
109,5
135,4
126,3
93,0
Source: Statistical review FINA, January 2009
Number of entrepreneurs in 2008 : 4.016 ( FINA )
Number of handcrafts in 2008 : 3.468 ( Chamber of crafts )
Prevailing activities: trade, manufacturing, transport and warehousing
General program of support measures for small and
medium entrepreneurs in City of Rijeka is a set of
measures to create entrepreneurship environment with
developed entrepreneurship climate and well designed
pre-conditions for development of entrepreneurship
skills
General program has 5 areas
1. Strengthening of entrepreneurship
competitiveness
2. New forms of education and information
3. Financing of entrepreneurship
4. Development of entrepreneurial infrastructure
5. Entrepreneurial culture promotion
PROGRAM AREAS
1. Strengthening of entrepreneurship
competitiveness
Funding of product certification
-
“de minimis” aid up to 15.000 kuna or 30% of total cost for the
introduction of Quality Management System, certify the
conformity of products according to national and European
standards
Funding of strategic marketing plans creation
-
“de minimis” aid up to 15.000 kuna or 30% of total cost for
strategic marketing plan creation
Funding of joint promotions for products or services
-
“de minimis” aid up to 15.000 kuna or 30% of total cost for a
joint appearance on the market (eg. claster products and
services and their promotion, as well as co-marketing and
co-branding
Funding the introduction of support systems in decision making,
management and e-commerce
-
“de minimis” aid up to 20.000 kuna or 50% of total cost
system implementation
International fair of new technologies and products ( it was 5th in 2009) –
create link between economy and science, the development of communication
between scientists and young entrepreneurs, the creation of links between the
new technological achievements and entrepreneurs ready for their
implementation, presentation of new scientific knowledge to young and the
promotion of Rijeka as a “city of knowledge”
 In April 2009 in the University campus on Trsat officially opened the building
Scientific and Technology Park, University of Rijeka - Step Ri is the first
scientific-technology park in Croatia, whose services include three main
programs: the protection and transfer of intellectual property, incubation of
new companies and licensing
Awards for innovation ready for commercial application - only entrepreneurs
who have their own innovation or innovation bought from innovators
implemented in the product or service, award represents incentive of
entrepreneurs towards the commercialization of innovation
Using the services of the Croatian regions office in Brussels
- information from office about funding possibilities, rules of
functioning common european market and european
institutions
Building a system Rijeka quality (RQ) – long term project, in the
future system of quality for SME’s in tourism
2. New forms of education and information
Goal: better education and entrepreneurship skill improvement
Project “Knowledge and experience“ – the goal is to make connection between
entrepreneurs and student solving the problems in business
Project “I know to work“ – the goal is to make connection between pupils and
handkrafts with the lack of educated work force
Program: "Development of entrepreneurial skills for young " – in September
2008 started School for young entrepreneurs
measure will affect the development of personality and skills that are
characterized by entrepreneurs - creativity, the ability to set up goals,
decision-making, risk assessment, self-confidence, responsibility, ability to
recognize influences from environment, all in order to prepare young people
for the possible selection of entrepreneurial career
Project: "Scholarships to students in scarce craftsmanship occupations "
in 2007. the City of Rijeka and Chamber of crafts started with
schoolarships to students for following occupation: bricklayer, carpenter,
machinist, cook, waiter, confectioner, plumber, painter, fitter and turner - City
is financing 40% of monthly amount of scholarship
Project: "SMS info-entrepreneur“ - SMS system delivers entrepreneurs timely
information about loans, grants, education programs without compensation
Thematic conferences - conferences are organized according to the current
issues and interest of the city and entrepreneurs
Improving the system of public procurement – presentation of annual city
public procurement plan, intention is to inform entrepreneurs on public
procurement rules and their procedures
3. Financing entrepreneurship
Goal: improving access to finance
Program: “Guarantees for financing projects of small economies “
- The goal of the Program is incentive to invest in research,
development and application of modern technologies and innovations in
order to increase the quality and competitiveness of entrepreneurial projects,
the guarantees are issued for the uncovered part of the loan.
City of Rijeka has provided the amount of 2.000.000 kuna for potential
guarantees and deposited them as the basis for issuing the guarantees for
the loans Erste& Steiermarkische Bank in the amount of 10.000.000 kuna.
Amounts of guarantees and entrepreneurial projects
- amounts of loans that are issued by guarantees can be of 35.000 to
400.000 kuna
- entrepreneurial projects are ranked according to priorities and cover the
specific percentage of the loan:
o Rank 1 / up to 70% loan amount on the introduction of innovation in
business, start up a business based on innovation and research
o Rank 2 / up to 60% loan amount for equipment, machines and
technologies
o Rank 3 / up to 50% loan amount for the improvement of business by
introducing norms and standards (ISO, HACCP, etc.)
o Rank 4 / to 45% loan amount for permanent current assets for
investment in production or preparation of tourist season
o Rank 5 / to 40% loan amount for the purchase, construction, expansion
or renovation of commercial / manufacturing facilities.
Program: “Loans with deposit”
- the goal of the Program is to provide financial assistance to entrepreneurs,
which intend to realize investment projects in function of urban tourism and
encourage the production
- in 2009 it will be provided the additional possibility of entrepreneurs in
the production sector: they could realise loans for permanent current
assets to survive the recession conditions in the market and maintain the
existing number of employees
- City ensured the amount of 1.000.000 kuna which will be successively and with
no interest deposited in the amount of one third of approved loans, BKS Bank
is providing the loan fund in the amount of 3.000.000 kuna with interest rate
of 6.3% fixed
- City will make further subsidize the interest rate with 1.5 percentage points, the
interest rate for the end user of these loans will be 4.8%, fixed, the highest
amount of loan can be up to 300.000 kuna, in exceptional cases even more.
Subsidies of interest rate and cost of credits from
Program "Poduzetnik 2“ – measure represents a
continuation of subsidizing the interest rate and cost
of credits from earlier loan program
New forms of financing promotion - measure is
presentation of new forms of financing entrepreneurial
projects through venture capital, business angels and the
transfer of experiences and examples of good practice.
4. Development of
entrepreneurial infrastructure
Goal :using city spatial and information facilities for start up and entreprenurship ideas
realisation
"Entrepreneurial incubators " - City of Rijeka has 2
entrepreneurial incubators – incubator for manufacturing
activities and incubator for services, contractors use
commercial space total area of 5000 m2 and consulting
services (search for capital, education), incubator space
is designed for beginners and entrepreneurs who are in
the phase of growth and development, incubation period
lasts until 5 years, when it is considered that the
potential for survival in the market is achieved
"Enterprise Library " – long term project, as a part of new city
library, intention is to have in one place everything about
entrepreneurship
Local rates examption– as a benefit for investment made
through earlier programms
5. Entrepreneurial culture promotion
Award for contribution in the field of
economy
- recognition for contributions in the fields of
economy and promotion of the City of Rijeka
Development of social responsibility for
business
- entrepreneurs take the activities of solving the
needs of local communities, they conduct the
project using their own resources for increasing the
quality of citizens life (arrangement of children's
playgrounds, schools,health clinics, etc.)
Media Corner
- measure is following the positive examples of
entrepreneurial projects and their work with the community.
Through public information raises the overall level of
entrepreneurial climate and culture.
Organization of team-building joint
entrepreneurial initiatives
- measure will be directed to the organization of relations
development workships in the group, under the expert
guidance
- measure will target group of entrepreneurs who show the
initiative for common forms of performance on the market
(eg. clusters, co-branding alliances, etc.)
COUNTRECESION MEASURES
IN 2009.
Measures :
1. reduction the monthly lease of business facilities owned by
the City to all contractors 10% and further 10% more for
production sector
2. reduction of monthly local rates for all 10% and further
10% for catering industry
3. reduction of monthly municipial rates for cultural
monuments in zone I
4. loans for permanent current assets in production sector to
survive the recession conditions in the market and maintain
the existing number of employees – Program “Loans with
deposit”
• The Global Entrepreneurship Monitor (GEM) research
program is an annual assessment of the national level of
entrepreneurial activity. GEM is the largest single study of
entrepreneurial activity in the world.
• Started as a partnership between London Business School and
Babson College, it was initiated in 1999 with 10 countries, GEM
2008 conducted research in 43 countries (Angola, Bolivia,
Bosnia and Herzegovina,Colombia, Ecuador, Egypt, India, Iran,
Argentina, Brazil, Chile, Croatia,Dominican Republic, Hungary,
Jamaica, Latvia, Macedonia, Mexico, Peru, Romania,Russia,
Serbia, South Africa, Turkey, Uruguay, Belgium, Denmark,
Finland, France, Germany, Greece, Iceland, Ireland, Israel,
Italy, Japan, Republic of Korea, Netherlands, Norway, Slovenia,
Spain, United Kingdom, United States
• http://www.gemconsortium.org/
The indicators
For the purposes of GEM project, and based on the conceptual
research framework and holistic approach to the definition of
entrepreneurship, a set of indicators that measure different
aspects of entrepreneurial activity has been identified:
Indicators of total entrepreneurial activity in the life cycle of the
entrepreneurial process, from startup to maturity of the business
venture:
• Nascent entrepreneurs (who decide to start a business venture)
• New business owners (business owners whose entrepreneurial
•
activity is measured by having paid salaries for more than 3
months, but less than 42 months)
Established business owners (business owners who are
entrepreneurially active for more than 42 months)
Entrepreneurial activity of the nascent entrepreneurs and new
business owners, measured by the ratio of the number of such
entrepreneurs (start-up) in the sample of the adult population,
aged 18 to 64, is expressed through Total Entrepreneurial
Activity (TEA) Index.
Indicators of motivation for entrepreneurial activity:
• TEA Opportunity index: those who start entrepreneurial activity
•
because they have perceived a business opportunity
TEA Necessity index: those who are pushed into
entrepreneurship by the situation they found themselves in
(they lost their job, could not find another job.)
GEM Croatia
From the tail to the first half, but still below the average of
GEM countries - which means that the various measures to
support entrepreneurial activities, provided results
TEA index (total entrepreneurial activity index) - % of
entrepreneurially active persons among adult population of
18-64 years
Year
Croatia
GEM countries
Range
2008.
7,59 TEA
10,49 TEA
24/43
2007.
7,27 TEA
9,07 TEA
21/42
2006.
8,58 TEA
9,43 TEA
18/42
2002.
3,62 TEA
8,00 TEA
32/37
Motivational index (ratio of opportunity based vs.
necessity based entrepreneurs)
- this index is preferable to be as large as possible, because it means
that there are a greater number of people who enter the
entrepreneurial activity of their choice, not because it is a situation
forced on it, Croatia still lags the average GEM countries.
Year
Croatia
GEM countries
Range
2008.
2,51
4,29
25/43
2007.
1,43
5,50
39/42
2005.
0,90
5,90
35/35
Regional differences in entrepreneurial activities
(TEA index and Motivational index)
• Regional differences were reduced – may interpret the
influence of different programs, but differences in the
motivation are still high
2005
Croatian regions
TEA
index
2008
Motivational
index
TEA
index
Motivational
index
Zagreb and surroundings
8,43
1,68
7,07
6,44
North Croatia
4,40
0,44
5,57
2,18
Lika and Banovina
5,11
2,23
8,05
1,34
Istra, Primorje i Gorski kotar
5,74
2,27
10,00
4,76
Dalmacija
6,34
0,37
11,00
3,31
Slavonija and Baranja
4,91
0,55
4,55
0,35
Source: Singer, S. Et al: What makes Croatia an entrepreneurial country, Results 2002-2005, CEPOR, Zagreb, 2006.; Singer, S. et al:
What makes Croatia an entrepreneurial country, Results 2008, CEPOR, Zagreb, 2009 (in printing).
Thank You for attention !
Natasa Mandic
City of Rijeka
Department of Enterpreneurship
HR 51000 Rijeka, Trg. Sv. Barbare 2, Hrvatska Croatia
tel.++38551209591, fax.++38551209617
e-mail: [email protected]