FIRST STOP SHOP

FSS – The role, partners, services, and organization

BANJA LUKA, 21.09.2006, M.Sc. Bogomir Filipič, Director of RDA Gorenjska Region/Slovenija

FIRST STOP SHOP

• The partners, players and supporters• Relation with Local Economic Development• Role and tasks• Activities

M.Sc.Bogomir Filipič – RDA BSc Kranj



REGIONAL AND LOCAL ECONOMIC DEVELOPMENT

Regional and Local Economic Development (LED) is the process by which public, businessand non-governmental sector partners work collectively to create better conditions for economic growth and employment generation. The aim is to improve the quality oflife for all.



PRACTICAL FINDINGS

• 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



DOING LOCAL ECONOMIC DEVELOPMENT?

ECONOMIC ACTIVITIES

BUILD-UP THE ECONOMICCOMPETITIVENESS OF A LOCAL AREA

IMPROVING ITS ECONOMIC FUTURE

WELLBEING OF PEOPLE



IMPORTANT EFFECTS OF BUSINESS DEVELOPMENT

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



TWO CHANNELS OFBUSINESS DYNAMICS

EXISTINGEXISTINGECONOMIC,ECONOMIC,

SOCIAL,SOCIAL,CULTURAL,CULTURAL,POLITICALPOLITICALSITUATIONSITUATION

BUSINESSBUSINESSDYNAMICSDYNAMICS

GROWTHGROWTHAND JOBSAND JOBS

EstablishedEstablished(larger) firms(larger) firms

New entrepre-New entrepre-neurial firmsneurial firms

Co-operation,Co-operation,outsourcingoutsourcing

Co-operation:Co-operation:clusters, networksclusters, networks

GrowthGrowth(expansion)(expansion)

RestructuringRestructuring



KEY SUCCESS FACTORS

BUSINESS INFRASTRUCTURE

TECHNOLOGICAL CAPACITY

INVESTMENT CAPITAL

ENTREPRENEURSHIP

HUMAN RESOURCES



SYSTEMATIC APPROACH TO LOCAL BUSINESS DEVELOPMENT

STRATEGY & POLICYSTRATEGY & POLICY

PROJECTS/PROGRAMSPROJECTS/PROGRAMS& SME CO-OPERATION& SME CO-OPERATION

INSTITUTION BUILDINGINSTITUTION BUILDING& HUMAN RESOURCES& HUMAN RESOURCES

SMEs and Local NeedsSMEs and Local Needsand Opportunitiesand Opportunities

IMPLEMENTATION: ACTIONIMPLEMENTATION: ACTIONPLANS & ACTIVITIESPLANS & ACTIVITIES

MarshallingMarshallingresourcesresources

BuildingBuildingconsensusconsensus

SME GROWTH AND LOCAL DEVELOPMENTSME 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 aWELL

DEVELOPEDmultidiscipli-nary team /

ExpertsLEADERSHIP:

-Mayor-Chief Executive

Start with ONEPERSON (lessambitiously)

and expand theOrganisation

EXPERT

Research, develop & implement strategy



LOCAL GOVERNMENT

Establishing a “home” for LED with Local Government Authority (LGA):Mayor’s OfficeCEO (Chief Executive Officer)

Local Authority Task Groups to develop the strategy and oversee the LED process

Other options to install LED in the LGAsLinks to other LGA planning processes



INSTITUTIONAL “HOME” FOR LED ACTIVITY

EXPERTAssistance

LOCAL GOVERN-MENT AUTHORITY

Mayor or CEOas LED Leader

Task Groups

Specific LED unitor department

LocalDevelop-

mentAgency

Otherlocalexperts



INITIAL DILEMMAS (1)

• 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 (2)

• Commitment of Mayor to appoint the leader

• Resources needed:– Basic office– Training in LED– Operational budget for meetings and data

collection



PARTNERS AND

FOUNDERSof

development institutions-

also FFS



STAKEHOLDERS

• 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

STEERING COMMITTEE

PUBLIC PUBLIC SECTORSECTOR

LGA andLGA andotherother

governmentgovernmentinstitutionsinstitutions

PRIVATESECTOR

For-profitbusinesses:managers

entrepreneursother experts

media

COMMUNITYCOMMUNITYSECTORSECTOR

EducationEducationServicesServices

NGOsNGOs

TASK GROUPS



BENEFITS FROM STAKEHOLDERS

• 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



PLAYERS FROM GOVERNMENT

National / state / provincial / regional laws and policies

National / state / provincial / regional governments

Telecommunications deregulationFinancial regulations

Environmental standardsTaxation, land and property laws

National gov’t infrastructure investmentBudget transfers (grants)



ROLE OF LOCAL GOVERNMENTS

• 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



CONTRIBUTION OF LGA TO LED

• 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



IMPORTANCE OF PRIVATE AND COMMUNITY SECTOR

• 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



PRIVATE SECTOR PARTICIPATION

• 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



COMMUNITY SECTOR

• Individuals (community leaders)

• Professional associations

• Churches and neighbourhood groups

• NGOs – non-governmental organizations that can operate more freely than regulated government units



PUBLIC 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



4-D FACTORS OF SUCCESSFUL LOCAL DEVELOPMENT

ENTREPRENEURSHIP ANDENTREPRENEURSHIP ANDSME DEVELOPMENTSME DEVELOPMENT

Determined Determined FinancialFinancialsupportsupport

DirectionsDirections(strategy)(strategy)

DedicationDedication(consent)(consent)

DevelopmentDevelopmentresourcesresources

IncreasedIncreasedEconomicEconomicWell-BeingWell-Being



LOCAL DEVELOPMENT COALITION / ALLIANCE

ForeignForeigncompaniescompanies

MUNICIPALITY XMUNICIPALITY X

LOCALLOCALCOMPANIESCOMPANIES

University,University,R&D facilitiesR&D facilities

Municipaladministration

EconomicEconomicwell-beingwell-being

of theof thepopulationpopulation



PARTNERS BY DEVELOPMENT

Knowledge centresKnowledge centres

Development Agency & ConsultantsForeign

partners

Community Departments“One-stop-shop”and info points

TechnologyPark

Universities, Colleges

Businessassociations(chambers)

FINANCIALINSTITUTIONS

ENTERPRISES Institutes



COMMUNITY BUSINESS NETWORK

Local orRegionalAgency Associations

of entrepreneurs

Faculties

HighSchools

Business Zones

Incubator

CummunityOne-Stop-Shop

TechnologyPark

Institutes



FSS as a part of development assupport development institution



FIRST STOP SHOP (FSS)

First Stop Shop (FSS) it is a point or institution itself where anybody could 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 whereBusiness Persons can go to obtain advice and support to helpthem establish and expand their business. Sometimes thesecentres also issue Licenses and permits needed by businessesto start-up, operate or expand. These centres improve the localbusiness environment by reducing the number of separateagencies and offices and business may need to approach foradvice or to apply for various licenses and permits. They savepublic and private time and improve efficiency as a result.



FSS SERVICE

• INFORMATION SERVICE• PROCEDURES AND PROCESS SERVICE• PROJECTS PREPARATION AND

IMPLEMENTATION SERVICE



FSS AS INFORMATION SERVICE

• Demographic data• Economic data• Business Environment data• Hard Infrastructure data• Regional and National data



FSS as procedures and process 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)



FFS as PROJECTS SERVICE

PROJECT PROCEDURES ARE COMPLEX

MIXED KNOW - HOWTIMING

SUSTAINABILITY

LEGISLATIONCONTENT

FEASIBILITY

PROJECTMANAGEMENT

FINANCINGSCHEMES

COST-BENEFIT

EVALUATION

ECONOMY

STATE/COMMUNITYEU REGULATIONS

IMPACT TO DEVELOPMENT



FSS ORGANIZATION AND NETWORK

1. FSS as information service

2. FSS with mixed services



FSS IN COMMUNITY – INFO POINT OR ???

If local FSS has public mandate and personal authorization for implementing some (public)procedures (like Construction permit procedure, permit procedure,Company registration procedure….), local Governmentand State will become more friendly for citizens on each level.



Localy oriented FSS and partners



REGIONALLY ORIENTED FSS

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 and partners



USUAL INFORMATION THAT INVESTORS SEEK

• 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



DILEMMAS OF FDI’S AND DOMESTIC INVESTMENT

A stable macro-economic climate?A stable macro-economic climate? A stable political and regulatory environment?A stable political and regulatory environment? Market access and open competition?Market access and open competition? A welcoming environment?A welcoming environment? Sites and/or premises available?Sites and/or premises available? Utilities and transportation available / reliable?Utilities and transportation available / reliable? Skilled (and motivated?) workforce available?Skilled (and motivated?) workforce available? Local suppliers and resources available?Local suppliers and resources available? Education, training and research facilitiesEducation, training and research facilities Good quality of life?Good quality of life? Regulation and taxation? Incentive sheme?Regulation and taxation? Incentive sheme?



SLOVENIAN EXPERIENCE

(SVE NA JEDNOM MJESTU)

VEMVEM



VEM

e - VEM VEM

• information• registration• procedures service• projets service• points: LPC/RPC/RRA/LRA• about 30 points only

• 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



Transition of Slovenian RDA 1994 - 2005

9 Regional business

centres (BC) +20 local BC

12 RDA +30 local agencies for development

12 RDARDA common projects

RDA CBC working groupNets of international

projects

1994-99

Development of

entrepreneurship

2000 - 2002

Socio-economical development

companies

starters

Technologicaldevelopment

schools

Rural development

Human resourcesR&D

universities

chambers

municipalities

2003 -

tourism

Integrative partner's strategically projects

Economical, spatial and social developmentFostering of

regional partnership

NVO



Typical Slovenian RDA’s fields of work(Regional/Public or Commercial-?)

• RDA Regional and Local Development– Regional Development Programme– Sub regional and Municipality programmes– Rural development projects

• Local and Regional Business Centre– SME Consultancy/ Voucher system– Micro Credit Scheme– Guarantee Scheme– Women Entrepreneurship– Young Business Net

• Technology and Innovation Development– Business Incubator Jesenice– Sector innovation projects (Intelishoe)

• HRD– Labour Fund, Training, Act. Employment

17 Municipalities

Workers under threat

Start ups

Institutions,schools

Entrepreneurs

Industry

Farmers,women,students

Spin-offs



CONDITIONS FOR GOOD WORK

• FSS staff should be very skilled in processes and procedures implementation

• 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



PROPOSALS



• Proposed founders of FSS:

Community(ies), Other public institutions, Chambers (Commerce and Crafts), Companies (in minority)



• Reasons:

Public authorisation, implementation of public procedures, access to public databases, service to citizens, communities and other institutions and companies, role as support institutions



• Legal status: Public owned non-profit organization

• Necessary condition:

Supervisory Board which consist of representatives from Community, Public and Private sector



FINANCING

NON COMMERCIAL SERVICE

• WORK ON DEVELOPMENT

• INFORMATION SERVICES FOR CITIZENS, PARTNERS, COMMUNITIES

• PROCEDURE SERVICES FOR CITIZENS, INVESTORS, STAKEHOLDERS

• SERVICES ON PREPARATION AN IMPLEMENTATION OF PUBLIC FINANCED PROJECTS

• INCENTIVES PROVIDER (VEM, VAUCHER, CONSULTANCY)



FINANCING

COMMERCIAL ACTIVITIES

• SERVICES FOR COMPANIES, INVESTORS, PUBLIC (institutions or citizens)

• WORK ON DEVELOPMENT PROJECTS



PROPOSED FINANCING

• PUBLIC STABILE SOURCE (COMMUNITY, REGION…)

Documents

FIRST STOP SHOP