Entrepreneurship for a better city Entrepreneurship in the LNET Partner cities

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Entrepreneurship for a better cityEntrepreneurshi
p in the LNET Partner cities

• June 28th 2006

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Entrepreneurship for a better cityEntrepreneurshi
p in the LNET Partner cities

• Drs. Edwin Oskam
• Project manager, Economic Development Departement
  Amsterdam
• June 27th 2006

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Questionnaire on entrepreneurship
28 juni 2006

• Entrepreneurial Performance
• Policies and Interventions
• Case Studies
• SWOT-analysis
• Conclusions

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Content
28 juni 2006

• Performance, potentials and barriers
• Interventions for promoting entrepreneurship in
  deprived urban Areas
• Differences and similarities
• Critical Challenges

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Performance, potential and barriers
28 juni 2006

• London
• Entrepreneurial activity in London higher than in
  rest of UK, but survival rates are lower
• No specific information on entrepreneurship in
  deprived areas
• City Growth Strategy Initiative focuses on the
  economic advantages and potential (rather than
  social disadvantages)
• Diversity
• Strategic Location (proximity to world renowned
  clusters)
• Barriers
• Poor targeting of hard-to-reach groups
• Lack of the skills and mindsets for enterprise
• Failure to engage the private sector

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Performance, potential and barriers
28 juni 2006

• Milan
• 94 of enterprises in Province of Milan have less
  than 10 staff
• Majority of enterprises are spin-offs from
  existing businesses
• Entrepreneurial vitality of declined areas has
  improved thanks to a economic regeneration
  process
• Results of recent years could be continued in the
  future, because of
• The availability of larges space
• The chance of re-designing whole areas
• The possibility of creating development plans
• Barriers
• The difficulties in cooperation among
  institutional actors
• The availability of financial resources
• Lack of relational networks

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Performance, potential and barriers
28 juni 2006

• Hamburg
• Entrepreneurial activity and start-up rate in
  Hamburg higher than for overall Germany
• High unemployment rates seem to trigger start ups
  in deprived areas
• Unexploited potential resulting from
• Cultural diversity and dynamic environment
• A strong creative class/ potentials for using
  industrial sites for start ups
• Lack of co-ordination between entrepreneurial
  support measures and responsible borough offices
• Business development services are almost not
  present on the spot

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Performance, potential and barriers
28 juni 2006

• Prague
• Relative high concentration of enterprises in
  Prague, but differences with rest of the country
  get smaller
• Enterprise rate of deprived urban areas somewhat
  lower than for the rest of Prague
• Entrepreneurial potential can be exploited by
  investing in the business climate in general and
  by improving the infrastructure/support system
  for creation of new enterprises
• The relatively favourable conditions for
  entrepreneurship in the capital city lead to a
  not very well developed system of support

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Performance, potential and barriers
28 juni 2006

• Amsterdam
• City of SMEs
• Start up rate in Amsterdam lower than in rest of
  country
• Growth of number of ethnic start ups relatively
  high
• South East potential for entrepreneurship
  recognized (youngsters and music, dance) Other
  burroughs seem to give less attention to
  entrepreneurship
• Barriers
• Support structure is not well known and therefore
  not intensively used
• Poor targeting of hard-to-reach groups
• Lack of the skills and mindsets for enterprise

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Interventions for promoting entrepreneurship
28 juni 2006

• London
• Extensive set of interventions on different
  policy levels (national, regional, local and
  neighborhood level)
• Programs contain a mixture of interventions
• Generic (e.g. affordable workspaces, technology
  transfer, access to finance, skill building)
• Specific (e.g. blacks, women, disabled)
• Sector specific interventions (creative
  industries, environmental industries, Life
  Sciences)
• Attempts to strengthen governance structures e.g.
  by involving the private sector

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Interventions for promoting entrepreneurship
28 juni 2006

• Milan
• Mainly incorporated within development strategies
  for areas that experienced de-industrialization
  processes
• A very strong focus on the development of
  emerging sectors and on the creation of creative
  and innovative businesses (incubators, innovation
  funding, technology transfer)
• Setting up of new structures (provincial, local,
  public, public/private) for promoting
  entrepreneurship in de-industrialized areas
• Engagement of all different territorial players

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Interventions for promoting entrepreneurship
28 juni 2006

• Hamburg
• A good infrastructure regarding entrepreneurial
  support measures
• Support for innovative fields for future
  businesses and for SMEs in general
• Few interventions focusing on the support of
  local structures or economies of socially
  deprived areas
• Urban area development is mainly socially
  oriented therefore support of entrepreneurship
  is not a priority
• Special focus on start ups from unemployment
• Public micro loan program for unemployed can be
  seen as an attempt to foster entrepreneurship in
  deprived areas

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Interventions for promoting entrepreneurship
28 juni 2006

• Prague
• The support structure for creation of new
  enterprises is not very well developed in Prague
  and the intensity of SMEs support is well below
  the national average
• Most interventions for promoting entrepreneurship
  are generic (no focus on special areas, groups
  and sectors)
• Some interventions particularly designed for
  deprived urban areas (financed with Structural
  Funds)
• Special interventions particularly designed for
  the Roma etnic minority
• Low utilisation of national support programmes
  for SMEs

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Interventions for promoting entrepreneurship
28 juni 2006

• Amsterdam
• Support structure is well developed, but not very
  well known
• Focus is on support for starters and working
  places for SMEs
• Interventions predominantly generic however
  specific in its effects
• Public sector seeks to operate as a director
• Promoting entrepreneurship far less important for
  deprived urban areas than improving housing
  conditions and social interventions

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Differences and similarities
28 juni 2006

• Differences
• Concentration of deprivation in urban areas
• Private sector led versus public sector led
• Specific or generic
• Importance of entrepreneurship as element of the
  development strategy for deprived urban areas
• Similarities
• Entrepreneurship is a upcoming theme
• Potential of diversity, creativity
• Opportunities for using industrial heritage
• Desire to involve the private sector

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Critical Challenges
28 juni 2006

• Extending existing business development
  strategies of cities with a regional component
  for deprived urban areas
• Making entrepreneurship in deprived areas a key
  element of the general economic strategy of
  cities
• Engaging all relevant territorial players
  (including the private sector!) in the promotion
  of entrepreneurship in deprived urban areas
• Formulating explicit strategies for specific
  deprived urban areas starting from their specific
  situation (see the London example)

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Thank you for your attention