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The partners, players and supporters Relation with Local Economic Development Role and tasks Activities M.Sc.Bogomir Filipič – RDA BSc Kranj. FIRST STOP SHOP. Regional and Local Economic Development (LED) is the process by which public, business and non-governmental sector partners work
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The partners, players and supporters Relation with Local Economic Development Role and tasks Activities M.Sc.Bogomir Filipič – RDA BSc Kranj FIRST STOP SHOP
Regional and Local Economic Development (LED) is the process by which public, business and non-governmental sector partners work collectively to create better conditions for economic growth and employment generation. The aim isto improve the quality of life for all. REGIONAL AND LOCAL ECONOMIC DEVELOPMENT
We want to develop a professional (high quality) strategic development institutions It is the strategic process in the community that matters very much: Involve key stakeholders Democratic creation of the vision, goals, selected projects / programmes/ information The proces takes its time and efforts – people have “to buy” into the strategy PRACTICAL FINDINGS
DOING LOCAL ECONOMIC DEVELOPMENT? ECONOMIC ACTIVITIES BUILD-UP THE ECONOMIC COMPETITIVENESS OF A LOCAL AREA IMPROVING ITS ECONOMIC FUTURE WELLBEING OF PEOPLE
Increased employment (new jobs) Economic growth and improved productivity Innovation Balanced structure of economic activity New medium and large companies in future Breeding new entrepreneurs and managers Activation of private savings and resources Political and social stability IMPORTANT EFFECTS OF BUSINESS DEVELOPMENT
TWO CHANNELS OFBUSINESS DYNAMICS Restructuring EXISTING ECONOMIC, SOCIAL, CULTURAL, POLITICAL SITUATION Established (larger) firms BUSINESS DYNAMICS GROWTH AND JOBS Co-operation, outsourcing New entrepre- neurial firms Co-operation: clusters, networks Growth (expansion)
KEY SUCCESS FACTORS HUMAN RESOURCES ENTREPRENEURSHIP INVESTMENT CAPITAL TECHNOLOGICAL CAPACITY BUSINESS INFRASTRUCTURE
SYSTEMATIC APPROACH TO LOCAL BUSINESS DEVELOPMENT STRATEGY & POLICY SMEs and Local Needs and Opportunities INSTITUTION BUILDING & HUMAN RESOURCES PROJECTS/PROGRAMS & SME CO-OPERATION Marshalling resources IMPLEMENTATION: ACTION PLANS & ACTIVITIES Building consensus SME GROWTH AND LOCAL DEVELOPMENT
STEP 1. ESTABLISH A LOCAL GOVERNMENT LED STAFF TEAM LOCAL GOVERNMENT • (ideally) initiator of • the LED process • - Supporting process Need to build up the ca- pacity to develop & imple- ment LED strategy A multidisciplinary (1) network, (2) work teams: planners, lawyers, financial, environmental and communication expert, engineers, architects Interdepartmental activity in local government
OPTIONS TO START • Start with a • WELL • DEVELOPED • multidiscipli- • nary team/ • Experts • LEADERSHIP: • Mayor • Chief Executive Start with ONE PERSON (less ambitiously) and expand the Organisation EXPERT Research, develop & implement strategy
Establishing a “home” for LED with Local Government Authority (LGA): Mayor’s Office CEO (Chief Executive Officer) Local Authority Task Groups to develop the strategy and oversee the LED process Other options to install LED in the LGAs Links to other LGA planning processes LOCAL GOVERNMENT
INSTITUTIONAL “HOME”FOR LED ACTIVITY EXPERT Assistance LOCAL GOVERN- MENT AUTHORITY Mayor or CEO as LED Leader Local Develop- ment Agency Task Groups Other local experts Specific LED unit or department
Mayor or CEO to take responsibility for LED – issues of know-how, attitude and time availability Initiator: Tasks: gathering information on the local economy, identifying key stakeholders Characteristics (personality): LED experience, understanding of the needs of businesses INITIAL DILEMMAS (1)
Commitment of Mayor to appoint the leader Resources needed: Basic office Training in LED Operational budget for meetings and data collection INITIAL DILEMMAS (2)
PARTNERS AND FOUNDERS of development institutions-also FFS
Major players in LED and their potential contributions: Staff from local government Private and community sector participation Management of the stakeholders: Who they are What are their interests The best way of involvement Steering Committee or Stakeholder Forum STAKEHOLDERS
STAKEHOLDERS STEERING COMMITTEE PUBLIC SECTOR LGA and other government institutions PRIVATE SECTOR For-profit businesses: managers entrepreneurs other experts media COMMUNITY SECTOR Education Services NGOs TASK GROUPS
As beneficiaries they are committed to success Specialist knowledge, different perspectives Professional, financial and physical resources Legitimization of the process Forestalling problems Know the true state of the competitiveness Get support grom higher levels Best information on local opportunities Establish volunteer support Real creation of jobs and growth in private sector BENEFITS FROM STAKEHOLDERS
PLAYERS FROM GOVERNMENT National / state / provincial / regional governments National / state / provincial / regional laws and policies Telecommunications deregulation Financial regulations Environmental standards Taxation, land and property laws National gov’t infrastructure investment Budget transfers (grants)
Provide physical and other infrastructure Facilitate business development: Attraction and retention, marketing, financing for business and real estate, tax incentives, educationa and training, business and infra-structure development Controls regulatory steps: registration, licensing, permits Identify the leadership, build coalition and partnerships ROLE OF LOCAL GOVERNMENTS
Analysis of the local economy Provision of leadership to LED Administration of economic dev’t projects Provision of services Financing and other incentives to promote LED Establishment and maintenance of an enabling environment for business growth CONTRIBUTION OF LGA TO LED
Provides wide range of resources and knowledge May de-politicize LED projects, allowing for their long-term sustainability Increase in trust, resources and sustainability – confidence of potential investors – attractive community to businesses Mobilization and consensus building skills prepare local gov’t leaders for the challenges when participation increases and different perspectives / interests emerge IMPORTANCE OF PRIVATE AND COMMUNITY SECTOR
Individual manufacturing or service sector commercial businesses Private developers Chambers of commerce, other business support organizations (BSOs) – intermediaries Local, informal and other extralegal sector activities PRIVATE SECTOR PARTICIPATION
Individuals (community leaders) Professional associations Churches and neighbourhood groups NGOs – non-governmental organizations that can operate more freely than regulated government units COMMUNITY SECTOR
Local governments incl. technical departments (agencies, offices) District or regional government Sector boards and authorities (health, education, transport) Zoning board Research and higher education institutions Utilities PUBLIC SECTOR
4-D FACTORS OF SUCCESSFUL LOCAL DEVELOPMENT Dedication (consent) Directions (strategy) Determined Financial support Increased Economic Well-Being ENTREPRENEURSHIP AND SME DEVELOPMENT Development resources
LOCAL DEVELOPMENT COALITION / ALLIANCE Foreign companies MUNICIPALITY X University, R&D facilities LOCAL COMPANIES Economic well-being of the population Municipal administration
PARTNERS BY DEVELOPMENT Institutes ENTERPRISES Knowledge centres Technology Park FINANCIAL INSTITUTIONS Development Agency & Consultants Foreign partners Universities, Colleges Community Departments “One-stop-shop” and info points Business associations (chambers)
COMMUNITY BUSINESS NETWORK Incubator Business Zones Institutes Local or Regional Agency Faculties Technology Park Associations of entrepreneurs High Schools Cummunity One-Stop-Shop
FSS as a part of development as support development institution
FIRST STOP SHOP (FSS) First Stop Shop (FSS) it is a point or institution itself where anybodycould get as much as possible information that could help or foster implementation or decision making process.
ONE-STOP BUSINESS SERVICE CENTRES One-Stop Business Service Centres are facilities where BusinessPersonscan go to obtain advice and support to help them establishand expand theirbusiness. Sometimes these centres also issueLicensesand permits neededby businesses to start-up, operate orexpand. Thesecentres improve the local business environment by reducingthe number ofseparate agenciesand officesand businessmay need to approach for adviceor toapply for various licenses andpermits. They save public and privatetime and improve efficiency as aresult.
INFORMATION SERVICE PROCEDURES AND PROCESS SERVICE PROJECTS PREPARATION AND IMPLEMENTATION SERVICE FSS SERVICE
Demographic data Economic data Business Environment data Hard Infrastructure data Regional and National data FSS AS INFORMATION SERVICE
Know a lot about national/state and/or provincial regional laws and policies, for example: Business registration procedures and laws Enterprise law Financial regulations Funds and bank rules and loan/money transfer procedures State aid or EU/other aid programs and procedures Environmental standards and barriers Taxation and tax policy Construction, Land and property laws and procedures National government infrastructure investment plans Budget transfers from local, regional, state or Aid programs (often conditional grants) FSS as procedures and process service
FFS as PROJECTS SERVICE PROJECT PROCEDURES ARE COMPLEX STATE/COMMUNITY EU REGULATIONS MIXED KNOW - HOW TIMING SUSTAINABILITY COST-BENEFIT FEASIBILITY FINANCING SCHEMES EVALUATION LEGISLATION CONTENT PROJECT MANAGEMENT ECONOMY IMPACT TO DEVELOPMENT
1.FSS as information service 2.FSS with mixed services FSS ORGANIZATION AND NETWORK
If local FSS has public mandate and personal authorizationfor implementing some (public) procedures(like Construction permit procedure, permitprocedure,Company registration procedure….), local Government and State will becomemore friendly for citizens on each level. FSS IN COMMUNITY – INFO POINT OR ???
For developers Region is an Unit with critical mass of human resources, economic resources (financial resources, companies, capital, institutions), natural resources, social resources and problems that should be solved. REGIONALLY ORIENTED FSS
A stable macro-economic climate A stable political and regulatory environment Market access and open competition A welcoming environment Available sites and/ or premises Appropriate, available and reliable utilities and transportation Available skilled workforce Available local suppliers and resources Appropriate education, training and research facilities A good quality of life, especially when bringing ex-patriots Manageable regulation and taxation systems Incentive schemes USUAL INFORMATION THAT INVESTORS SEEK
DILEMMAS OF FDI’S AND DOMESTIC INVESTMENT • A stable macro-economic climate? • A stable political and regulatory environment? • Market access and open competition? • A welcoming environment? • Sites and/or premises available? • Utilities and transportation available / reliable? • Skilled (and motivated?) workforce available? • Local suppliers and resources available? • Education, training and research facilities • Good quality of life? • Regulation and taxation? Incentive sheme?
SLOVENIAN EXPERIENCE (SVE NA JEDNOM MJESTU) VEM
VEM e - VEM VEM • ON – Line delivery of Legal Status • to entrepreneurs • (s.p. – SAMOSTALNI PREDUZETNICI) • Company registration??? NOT YET • (d.o.o, d.n.o….) • Points: • AJPES, UE, OOZ, LPC, • RRA, GZS, DURS • About 300 POINTS allover the • country • information • registration • procedures service • projets service • points: • LPC/RPC/RRA/LRA • about 30 points only
FSS staff should be very skilled in processes and proceduresimplementation FSS staff should have some public concessions and power of attorney FSS staff should have approach to some public data bases and registers FSS staff should have direct approach to some stakeholders FSS procedures should have priority by stakeholders CONDITIONS FOR GOOD WORK
Proposed founders of FSS: Community(ies), Other public institutions, Chambers (Commerce and Crafts), Companies (in minority)