Project: The Southern-limburg Experience (nl)
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Promoting entrepreneurship the Southern-Limburg experience (NL)
Introduction
Starters Centre Regional centre for promoting entrepreneurship Southern-Limburg
Project Location Context Practice
Marcel van Kasteren • Business consultant • Small & Medium Enterprise expert • Projectmanager ‘Neigbourhood Economy Project Heerlen’ • Freelance external expert SME for UN project in Southern Sudan (Malakal)
Process design Legal framework Evaluation
Site visit Southern-Limburg IHS - Indonesia delegation 29 November 2006
Maastricht
1
Promoting entrepreneurship the Southern-Limburg experience (NL) Starters Centre Southern-Limburg
Introduction
Mission Foundation to stimulate and promote entrepreneurship in region Southern-Limburg
Project Location Context Practice Process design Legal framework Evaluation
Structure
Co-funded by Chamber of Commerce Southern-Limburg and all 19 municipalities in the region (€ 0,38/citizen)
• One access point for ‘entrepreneurship’ in the area Approach • Service ‘free of charge’ • No admission obstacles • Qualified staff (8 employees) • Located in three major towns Maastricht Heerlen Sittard-Geleen
Site visit Southern-Limburg IHS - Indonesia delegation 29 November 2006
Maastricht
2
Promoting entrepreneurship the Southern-Limburg experience (NL) Starters Centre Southern-Limburg
Introduction Project Location Context Practice Process design Legal framework Evaluation
Products & • Distribution of printed & digital material services on entrepreneurship (Business Plan, Startersmagazine) • Seminar ‘general introduction on entrepreneurship’ • Thematic seminars e.g. fiscal/tax issues, bookkeeping, employment of personnel, company take over, … • Personal business consultancy (talks) • Assistance on entrepreneurship education to middle and higher educational institutes • Cooperation with network partners (province, municipalities, banks, other public institutions, …) • 7,500 magazines distributes Results • 50 seminars ‘general introduction entrepreneurship’ (1000) • 60 thematic seminars (1200) • 1,500 personal business talks • 5,000 contact moments • Annual ‘Entrepreneurship day’ (1200 participants) • 2,500 new companies!
Site visit Southern-Limburg IHS - Indonesia delegation 29 November 2006
Maastricht
3
Promoting entrepreneurship the Southern-Limburg experience (NL)
Introduction
Title of the Practice
Neigbourhood Economy Project Heerlen ‘project BuurtEconomie Heerlen (BEH)’
Project Location Context
Main Theme
Economic revitalisation of disadvantaged neigbourhoods (Urban II area) through support to SME’s
Practice Process design Legal framework Evaluation
Site visit Southern-Limburg IHS - Indonesia delegation 29 November 2006
Maastricht
4
Promoting entrepreneurship the Southern-Limburg experience (NL)
Introduction Project
Geographical context
Scale & dimension
Location Context Practice Process design Legal framework Evaluation
Characteristics
Heerlen, Parkstad region, Limburg province, the Netherlands Urban II area • in northern part of Heerlen • 45,028 inhabitants (49% of 91,528) • 1,218 hectares (27 % of 4,524) • divided in 6 sub-area’s • City-East • City-North • Rennemig-Beersdal • Heerlerheide-Passart • Vrieheide-De Stack • Hoensbroek-De Dem Mixture of • upgraded former mine worker houses • newly developed social housing area’s • existing urban area’s
Site visit Southern-Limburg IHS - Indonesia delegation 29 November 2006
Maastricht
5
Promoting entrepreneurship the Southern-Limburg experience (NL)
Introduction
Main demographic characteristics
Project Location Context Practice
2003
2004
2005
2006
Amount inhabitants Urban area
46,318
46,027
45,540
45,028
Amount inhabitants Heerlen total
93,989
93,523
92,585
91,528
Main socio-economic characteristics
Process design Legal framework Evaluation
Since 2003 Parkstad region / Heerlen is experiencing a decline in amount of inhabitants • Low birth rate • Higher life expectation (more elderly) • Negative migration balance
Unemployed citizens Heerlen total % of unemployed people vs. potential professionals Heerlen % of unemployed people vs. potential professionals national
Since 2002 Heerlen experienced a strong rise in unemployment • Significantly higher than national level • Trend break in 2005, decline 2006 2001
2002
2003
2004
2005
4,586
4,462
5,341
6,430
6,886
-
-
8
10
11
3.5
4.1
5.4
6.5
6.5
Site visit Southern-Limburg IHS - Indonesia delegation 29 November 2006
Maastricht
6
Promoting entrepreneurship the Southern-Limburg experience (NL)
Introduction Project
Target group
Objectives
Location
Potential entrepreneurs as well as existing ones (small enterprises with less than 10 employees) • To assist potential entrepreneurs with process of business development and planning • To assist existing entrepreneurs by improving their business throughout company life cycle
Context Practice Process design
Expected outcome
Legal framework Evaluation Time scale
Three indicators • 400 potential entrepreneurs under coaching • 100 start-ups created • 100 existing entrepreneurs under support • Starting date 1st January 2003 • 4 Years until 31st December 2006 • Midterm evaluation after 2 years (BEH part I & II)
Site visit Southern-Limburg IHS - Indonesia delegation 29 November 2006
Maastricht
7
Promoting entrepreneurship the Southern-Limburg experience (NL) Main elements
Introduction Project Location
Activities
Context Practice Process design Legal framework Evaluation
Issues and problems
• ‘One counter concept’ in business consultancy • Offered by two business consultants • Entrepreneurial advise & coaching • Free of charge • Using network partners • Free consultancy hours • Intensive coaching in developing business plans • Organize vocational training: entrepreneurial skills, business plans, bookkeeping, commercial • Organize thematic events • Customer assistance: application for funding, debt rationalization, housing • Lack of notion about entrepreneurship • Neigbourhoods with lack of or poor businesses • Physical degradation of area’s • Limited access to investment/finance possibilities • Poor entrepreneurial skills and competences • ‘Problem companies’ (sometimes illegal)
Site visit Southern-Limburg IHS - Indonesia delegation 29 November 2006
Maastricht
8
Promoting entrepreneurship the Southern-Limburg experience (NL)
Introduction Project Location Context Practice Process design Legal framework Evaluation
Decision making actors
1. City Council & City Management - Heerlen • Initiator • Political judgement • Subsidy approval 2. Department of City Planning – Heerlen • Policy maker • Project proposal • Project owner •
Urban II program management – Heerlen • Overall management • Subsidies
4. Starters Centre Southern-Limburg (public foundation co-funded by Chamber of Commerce and all regional municipalities) • Project execution & organization • Daily management • Daily operations
Site visit Southern-Limburg IHS - Indonesia delegation 29 November 2006
Maastricht
9
Promoting entrepreneurship the Southern-Limburg experience (NL) Strategies
Introduction Project Location Context
Coordination
Practice Process design Legal framework Evaluation
Conflicts
• Experience used from a similar project in Maastricht (‘Entrepreneur in the Neigbourhood’) • Special attention to administrative procedures and recordkeeping • Joint initiatives with Maastricht by partial overlay in operations (2003 – 2005): ‘economy of scale’ • City Council & City Management • political & subsidy approval, final responsible • Urban II steering committee • project & subsidy approval • Starters Centre Southern-Limburg • daily responsible and operational managem. • Start-ups from a social welfare situation phase long bureaucratic procedures • Find proper commercial estates for start-ups • Limited access to financial resources and investement opportunities
Site visit Southern-Limburg IHS - Indonesia delegation 29 November 2006
Maastricht
10
Promoting entrepreneurship the Southern-Limburg experience (NL)
Introduction
Legal setting
Project
• A public institution (the Starters Centre) is responsible for implementation • On operational level non-profit as well as private organizations are contracted to deliver services for start-ups and existing entrepreneurs
Location Context Practice Process design Legal framework Evaluation
Legal instruments
• A co-operation agreement between project owner (municipality of Heerlen and project executor (Starters Centre) • A biennial communication plan for public relation and communication activities • An activity plan (yearly) • Urban II report (quarterly)
Site visit Southern-Limburg IHS - Indonesia delegation 29 November 2006
Maastricht
11
Promoting entrepreneurship the Southern-Limburg experience (NL)
Introduction
Human resources
Project Location Context
Financial resources
Practice Process design Legal framework Evaluation
• 2 business consultants (entrepreneurial advisors) • project management: shared responsibility between 1 consultant & director of Starters Centre • part time administrative (0,2 fte) and financial (0,1) support by existing staff of Starters Centre • Total budget € 907,600 for four years (2003-2006) • Co-financing between • community budget (56% or € 508,525) • and Urban II subsidy (45% or € 399,344)
Project budget item
2003 / 2004
2005 /2006
Total budget
€ 239,000
€ 260,000
€ 499,000
Housing & facilities
€ 40,000
€ 40,000
€ 80,000
PR & communications
€ 80,000
€ 40,000
€ 120,000
Technical project support
€ 94,800
€ 113,800
€ 208,600
€ 453,800
€ 453,800
€ 907,600
Personnel costs
Total budget per period
Site visit Southern-Limburg IHS - Indonesia delegation 29 November 2006
Maastricht
12
Promoting entrepreneurship the Southern-Limburg experience (NL)
Introduction
Results and common benefits Expected output 2003-2006
Realization 2003-2004
Realization 2005-2006 (until 01/07)
Total realization 2003-2006
Initial customer contacts
600
342
261
603
Customers under coaching
400
262
203
465
Context
Start-ups created
100
65
45
110
Practice
Existing entrepreneurs
100
60
44
104
Process design
Lessons learned
Indicators
Project Location
Legal framework Evaluation
‘Intensive entrepreneurial support and coaching works out!’
Site visit Southern-Limburg IHS - Indonesia delegation 29 November 2006
Maastricht
13
Promoting entrepreneurship the Southern-Limburg experience (NL)
Introduction Project Location Context
John & Ton Gielen Alternative health care centre
Practice
Started 2004
Process design Legal framework Evaluation
Site visit Southern-Limburg IHS - Indonesia delegation 29 November 2006
Maastricht
14
Promoting entrepreneurship the Southern-Limburg experience (NL)
Introduction Project Location
Pera & Hata Bajramovic Satellite and telephone shop
Context
Started 2004
Practice Process design Legal framework Evaluation
Site visit Southern-Limburg IHS - Indonesia delegation 29 November 2006
Maastricht
15
Promoting entrepreneurship the Southern-Limburg experience (NL)
Introduction Project Location Context Practice
Monique Bonné Prenatal care centre Started 2005
Process design Legal framework Evaluation
Site visit Southern-Limburg IHS - Indonesia delegation 29 November 2006
Maastricht
16
Promoting entrepreneurship the Southern-Limburg experience (NL)
Introduction Project Location
Thanks to EU / Urban II Context
Practice
Process design Legal framework Evaluation
Site visit Southern-Limburg IHS - Indonesia delegation 29 November 2006
Maastricht
17
Promoting entrepreneurship the Southern-Limburg experience (NL)
Introduction Project Location Context
2006 2007
Practice Process design Legal framework Evaluation
Terima Kasih !
Site visit Southern-Limburg IHS - Indonesia delegation 29 November 2006
Maastricht
18
Introduction
Starters Centre Regional centre for promoting entrepreneurship Southern-Limburg
Project Location Context Practice
Marcel van Kasteren • Business consultant • Small & Medium Enterprise expert • Projectmanager ‘Neigbourhood Economy Project Heerlen’ • Freelance external expert SME for UN project in Southern Sudan (Malakal)
Process design Legal framework Evaluation
Site visit Southern-Limburg IHS - Indonesia delegation 29 November 2006
Maastricht
1
Promoting entrepreneurship the Southern-Limburg experience (NL) Starters Centre Southern-Limburg
Introduction
Mission Foundation to stimulate and promote entrepreneurship in region Southern-Limburg
Project Location Context Practice Process design Legal framework Evaluation
Structure
Co-funded by Chamber of Commerce Southern-Limburg and all 19 municipalities in the region (€ 0,38/citizen)
• One access point for ‘entrepreneurship’ in the area Approach • Service ‘free of charge’ • No admission obstacles • Qualified staff (8 employees) • Located in three major towns Maastricht Heerlen Sittard-Geleen
Site visit Southern-Limburg IHS - Indonesia delegation 29 November 2006
Maastricht
2
Promoting entrepreneurship the Southern-Limburg experience (NL) Starters Centre Southern-Limburg
Introduction Project Location Context Practice Process design Legal framework Evaluation
Products & • Distribution of printed & digital material services on entrepreneurship (Business Plan, Startersmagazine) • Seminar ‘general introduction on entrepreneurship’ • Thematic seminars e.g. fiscal/tax issues, bookkeeping, employment of personnel, company take over, … • Personal business consultancy (talks) • Assistance on entrepreneurship education to middle and higher educational institutes • Cooperation with network partners (province, municipalities, banks, other public institutions, …) • 7,500 magazines distributes Results • 50 seminars ‘general introduction entrepreneurship’ (1000) • 60 thematic seminars (1200) • 1,500 personal business talks • 5,000 contact moments • Annual ‘Entrepreneurship day’ (1200 participants) • 2,500 new companies!
Site visit Southern-Limburg IHS - Indonesia delegation 29 November 2006
Maastricht
3
Promoting entrepreneurship the Southern-Limburg experience (NL)
Introduction
Title of the Practice
Neigbourhood Economy Project Heerlen ‘project BuurtEconomie Heerlen (BEH)’
Project Location Context
Main Theme
Economic revitalisation of disadvantaged neigbourhoods (Urban II area) through support to SME’s
Practice Process design Legal framework Evaluation
Site visit Southern-Limburg IHS - Indonesia delegation 29 November 2006
Maastricht
4
Promoting entrepreneurship the Southern-Limburg experience (NL)
Introduction Project
Geographical context
Scale & dimension
Location Context Practice Process design Legal framework Evaluation
Characteristics
Heerlen, Parkstad region, Limburg province, the Netherlands Urban II area • in northern part of Heerlen • 45,028 inhabitants (49% of 91,528) • 1,218 hectares (27 % of 4,524) • divided in 6 sub-area’s • City-East • City-North • Rennemig-Beersdal • Heerlerheide-Passart • Vrieheide-De Stack • Hoensbroek-De Dem Mixture of • upgraded former mine worker houses • newly developed social housing area’s • existing urban area’s
Site visit Southern-Limburg IHS - Indonesia delegation 29 November 2006
Maastricht
5
Promoting entrepreneurship the Southern-Limburg experience (NL)
Introduction
Main demographic characteristics
Project Location Context Practice
2003
2004
2005
2006
Amount inhabitants Urban area
46,318
46,027
45,540
45,028
Amount inhabitants Heerlen total
93,989
93,523
92,585
91,528
Main socio-economic characteristics
Process design Legal framework Evaluation
Since 2003 Parkstad region / Heerlen is experiencing a decline in amount of inhabitants • Low birth rate • Higher life expectation (more elderly) • Negative migration balance
Unemployed citizens Heerlen total % of unemployed people vs. potential professionals Heerlen % of unemployed people vs. potential professionals national
Since 2002 Heerlen experienced a strong rise in unemployment • Significantly higher than national level • Trend break in 2005, decline 2006 2001
2002
2003
2004
2005
4,586
4,462
5,341
6,430
6,886
-
-
8
10
11
3.5
4.1
5.4
6.5
6.5
Site visit Southern-Limburg IHS - Indonesia delegation 29 November 2006
Maastricht
6
Promoting entrepreneurship the Southern-Limburg experience (NL)
Introduction Project
Target group
Objectives
Location
Potential entrepreneurs as well as existing ones (small enterprises with less than 10 employees) • To assist potential entrepreneurs with process of business development and planning • To assist existing entrepreneurs by improving their business throughout company life cycle
Context Practice Process design
Expected outcome
Legal framework Evaluation Time scale
Three indicators • 400 potential entrepreneurs under coaching • 100 start-ups created • 100 existing entrepreneurs under support • Starting date 1st January 2003 • 4 Years until 31st December 2006 • Midterm evaluation after 2 years (BEH part I & II)
Site visit Southern-Limburg IHS - Indonesia delegation 29 November 2006
Maastricht
7
Promoting entrepreneurship the Southern-Limburg experience (NL) Main elements
Introduction Project Location
Activities
Context Practice Process design Legal framework Evaluation
Issues and problems
• ‘One counter concept’ in business consultancy • Offered by two business consultants • Entrepreneurial advise & coaching • Free of charge • Using network partners • Free consultancy hours • Intensive coaching in developing business plans • Organize vocational training: entrepreneurial skills, business plans, bookkeeping, commercial • Organize thematic events • Customer assistance: application for funding, debt rationalization, housing • Lack of notion about entrepreneurship • Neigbourhoods with lack of or poor businesses • Physical degradation of area’s • Limited access to investment/finance possibilities • Poor entrepreneurial skills and competences • ‘Problem companies’ (sometimes illegal)
Site visit Southern-Limburg IHS - Indonesia delegation 29 November 2006
Maastricht
8
Promoting entrepreneurship the Southern-Limburg experience (NL)
Introduction Project Location Context Practice Process design Legal framework Evaluation
Decision making actors
1. City Council & City Management - Heerlen • Initiator • Political judgement • Subsidy approval 2. Department of City Planning – Heerlen • Policy maker • Project proposal • Project owner •
Urban II program management – Heerlen • Overall management • Subsidies
4. Starters Centre Southern-Limburg (public foundation co-funded by Chamber of Commerce and all regional municipalities) • Project execution & organization • Daily management • Daily operations
Site visit Southern-Limburg IHS - Indonesia delegation 29 November 2006
Maastricht
9
Promoting entrepreneurship the Southern-Limburg experience (NL) Strategies
Introduction Project Location Context
Coordination
Practice Process design Legal framework Evaluation
Conflicts
• Experience used from a similar project in Maastricht (‘Entrepreneur in the Neigbourhood’) • Special attention to administrative procedures and recordkeeping • Joint initiatives with Maastricht by partial overlay in operations (2003 – 2005): ‘economy of scale’ • City Council & City Management • political & subsidy approval, final responsible • Urban II steering committee • project & subsidy approval • Starters Centre Southern-Limburg • daily responsible and operational managem. • Start-ups from a social welfare situation phase long bureaucratic procedures • Find proper commercial estates for start-ups • Limited access to financial resources and investement opportunities
Site visit Southern-Limburg IHS - Indonesia delegation 29 November 2006
Maastricht
10
Promoting entrepreneurship the Southern-Limburg experience (NL)
Introduction
Legal setting
Project
• A public institution (the Starters Centre) is responsible for implementation • On operational level non-profit as well as private organizations are contracted to deliver services for start-ups and existing entrepreneurs
Location Context Practice Process design Legal framework Evaluation
Legal instruments
• A co-operation agreement between project owner (municipality of Heerlen and project executor (Starters Centre) • A biennial communication plan for public relation and communication activities • An activity plan (yearly) • Urban II report (quarterly)
Site visit Southern-Limburg IHS - Indonesia delegation 29 November 2006
Maastricht
11
Promoting entrepreneurship the Southern-Limburg experience (NL)
Introduction
Human resources
Project Location Context
Financial resources
Practice Process design Legal framework Evaluation
• 2 business consultants (entrepreneurial advisors) • project management: shared responsibility between 1 consultant & director of Starters Centre • part time administrative (0,2 fte) and financial (0,1) support by existing staff of Starters Centre • Total budget € 907,600 for four years (2003-2006) • Co-financing between • community budget (56% or € 508,525) • and Urban II subsidy (45% or € 399,344)
Project budget item
2003 / 2004
2005 /2006
Total budget
€ 239,000
€ 260,000
€ 499,000
Housing & facilities
€ 40,000
€ 40,000
€ 80,000
PR & communications
€ 80,000
€ 40,000
€ 120,000
Technical project support
€ 94,800
€ 113,800
€ 208,600
€ 453,800
€ 453,800
€ 907,600
Personnel costs
Total budget per period
Site visit Southern-Limburg IHS - Indonesia delegation 29 November 2006
Maastricht
12
Promoting entrepreneurship the Southern-Limburg experience (NL)
Introduction
Results and common benefits Expected output 2003-2006
Realization 2003-2004
Realization 2005-2006 (until 01/07)
Total realization 2003-2006
Initial customer contacts
600
342
261
603
Customers under coaching
400
262
203
465
Context
Start-ups created
100
65
45
110
Practice
Existing entrepreneurs
100
60
44
104
Process design
Lessons learned
Indicators
Project Location
Legal framework Evaluation
‘Intensive entrepreneurial support and coaching works out!’
Site visit Southern-Limburg IHS - Indonesia delegation 29 November 2006
Maastricht
13
Promoting entrepreneurship the Southern-Limburg experience (NL)
Introduction Project Location Context
John & Ton Gielen Alternative health care centre
Practice
Started 2004
Process design Legal framework Evaluation
Site visit Southern-Limburg IHS - Indonesia delegation 29 November 2006
Maastricht
14
Promoting entrepreneurship the Southern-Limburg experience (NL)
Introduction Project Location
Pera & Hata Bajramovic Satellite and telephone shop
Context
Started 2004
Practice Process design Legal framework Evaluation
Site visit Southern-Limburg IHS - Indonesia delegation 29 November 2006
Maastricht
15
Promoting entrepreneurship the Southern-Limburg experience (NL)
Introduction Project Location Context Practice
Monique Bonné Prenatal care centre Started 2005
Process design Legal framework Evaluation
Site visit Southern-Limburg IHS - Indonesia delegation 29 November 2006
Maastricht
16
Promoting entrepreneurship the Southern-Limburg experience (NL)
Introduction Project Location
Thanks to EU / Urban II Context
Practice
Process design Legal framework Evaluation
Site visit Southern-Limburg IHS - Indonesia delegation 29 November 2006
Maastricht
17
Promoting entrepreneurship the Southern-Limburg experience (NL)
Introduction Project Location Context
2006 2007
Practice Process design Legal framework Evaluation
Terima Kasih !
Site visit Southern-Limburg IHS - Indonesia delegation 29 November 2006
Maastricht
18
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