Łódzka Agencja Rozwoju Regionalnego S.A. Lodz Regional Development Agency

REGIONAL FINANCING INSTITUTION

Specific Development Issues

SME ASSISTANCE IN THE LODZ REGION

Pawel Zuromski – President of the Board, LRDA

Open Days in Brussels,

DG REGIO Workshops and Training Sessions

28 September 2004

Lodz Region

area(sq km)

population(thousands).

Lodz Region Poland

18 2195,8%

2 663,66,9%

312 685100%

38 667,0100%

Statistic dataStatistic data::

Łódź

Skierniewice

Piotrków Trybunalski

kutnowski

łęczycki łowicki

poddębickizgierski

sieradzki

radomszczański

pajęczański

wieluński

wieruszowski

zduńskowolski

łaski

bełchatowskiopoczański

piotrkowski

tomaszowski

łódzkiwschodni rawski

skierniewicki

pabianicki

Lodz Region

Statistic data:Statistic data:

Number of communes (gminy) - 177Incl.: urban - 18

urban-rurual - 24rurual - 135

Number of districts (powiaty) - 23including: urban districts - 3

Regional SME Sector Characteristics

Data sources: Statistic Office in Lodz Polish Agency for Enterprise Development (31.12.2002)

Lodz Region Poland

• Number of SMEs registered

• Number of active SMEs (share)

• Number of SMEs’ (share)

239,8

127,0(7,3%)

3.495,3

1.732,7(100%)

405,9(7,3%)

5.559,9(100%)

(thousands) (thousands)

Łódzka Agencja Rozwoju Regionalnego S.A.Lodz Regional Development Agency

WHAT WE DO ....WHAT WE DO ....

Support the development of small and medium enterprises by financial instruments, training and advisory services;

Provide services for regional institutions: advice for communes in the field of development and implementation of local strategies, advice concerning access to foreign assistance programmes, feasibility studies for infrastructure projects, trainings for local authorities;

Manage the PHARE and Structural Funds programmes, promote the EU structural policy;

Provide economic promotion of the Lodz Region and assistance for investors..

WHO WE ARE ...WHO WE ARE ...LRDA is a joint stock company set up in 1992 as an initiative of regional authorities and with the assistance of public institutions and private entrepreneurs.

INSTITUTIONAL SYSTEM OF SUPPORTING SMEs in POLANDINSTITUTIONAL SYSTEM OF SUPPORTING SMEs in POLAND

CENTRAL LEVELPOLISH AGENCY FOR ENTERPRISE DEVELOPMENT (PAED)

Governmental Agency responsible for implemantation of SMEs’ sectoral policy

REGIONAL LEVELREGIONAL FINANCING INSTITUTION (RFI)

16 RFIs (one in each Region) co-operating with PAED in implementation of SMEs sectoral programmes, management of regional SMEs development programmes, „Regional Consulting Desk Point” on public support for SMEs

LOCAL LEVELBusiness support institutions offering services for SMEs

Advisory, training, information and financial services

National System of Services for SMEs (NSS)

Network of non-profit or not-for-profitbusiness support institutions

Auditied and acredited by PAED

Local Consulting Desk Points providing consultancy services

(„information packages” on business activities and public support for SME)

Costs of services co-financed by PAED from public grants

Training and business advisory companies

(non-profit and commercial)„Long list”

Acredited by PAED to provide services granted from public money.

Instruments for supporting SME sector development in the Lodz Region

Financial Instruments Financial Instruments for SMEs for SMEs managed by managed by Regional Regional Development Institutions:Development Institutions:Loan Funds 7 Guarantee Funds 3 (aprox. 60% of financial resources at the LRDA’s disposal)

Financial Instruments Financial Instruments for SMEs for SMEs managed by managed by LRDA (in co-LRDA (in co-operation with PAED and Regional Authorithies):operation with PAED and Regional Authorithies):

• PHARE Grant Schemes (since 1994)

• Structural Funds Grants Schemes (since 2004)

Network of information services Network of information services for SMEs acredited by for SMEs acredited by PAED:PAED:

• 13 Local Consulting Desk Points

The Loan Fund for investmentThe Loan Fund for investment was established on the basis of the state budget reserve for the support of regional restructuring programmes.1996 1996 - start of the Fund’s activities

LRDA’s Regional Loan Investment Fund for SME

Financial resources of the FundFinancial resources of the Fund::

Grants from the State budget - 9,97 mio PLN

Interest revenues - 5,01 mio PLN

Total - 30.06.2004: - 15,13* mio PLN

Loans granted in 1996 - 2004 (30.06.2004):•Number of loans granted - 242•Creation of new jobs (declared) - 2.704•Amount of investment - 122,94 mio PLN•Amount of loans granted - 40,74 mio PLN

*(1 euro ~ 4,50 PLN)

LRDA’s PHARE experiences 1994 - 2000

Small Infrastructure ProjectsSmall Infrastructure Projects of the PHARE:of the PHARE: STRUDER, RAPID, STRUDER, RAPID, STRUDER 2STRUDER 2 (Lodz Region 1994 – 2000): (Lodz Region 1994 – 2000):• PHARE grants - 4,50 mio €•Number of projects co-financed - 40

• Total amount of grants - 7,59 mio €• Number of applications - 346• Number of grants awarded - 235• Number of new jobs created - 2.786

PHARE:PHARE: STRUDER, RAPID, STRUDER 2STRUDER, RAPID, STRUDER 2 (Lodz Region 1994 – 2000): (Lodz Region 1994 – 2000):

Total PHARE grants (1994 – 2000): - ~ 16,40 mio €

Grant Scheme of the PHARE-STRUDERGrant Scheme of the PHARE-STRUDER (Lodz Region 1994 - 1997): (Lodz Region 1994 - 1997):

SMEs Development Programmes PHARE 2000, PHARE 2001, PHARE 2002

PHARE Grants : PHARE Grants : PHARE 2000, PHARE 2001 - sectoral and regional PHARE 2000, PHARE 2001 - sectoral and regional programmes:programmes:• number of SMEs applying - 1120• number of SMEs granted - 678• total amount of grants (contracted) - 5,78 mio €

The Lodz Region – summary 2002 -2004:The Lodz Region – summary 2002 -2004:LRDA – Regional Financing Institution (since 2001)LRDA – Regional Financing Institution (since 2001)•Consulting Services: xx services, xx hours of consultancy

PHARE 2002 - sectoral and regional programmes PHARE 2002 - sectoral and regional programmes (started in July 2004):(started in July 2004):• number of SMEs applying: - 667• applied amount of grants (approx.) - 10,33 mio €

„Sectoral Operational Programme – Improving Competitiveness of Enterprises”:• Measure 2.1 Improving Competitiveness of SMEs through counsellingAdvisory projects concerning rules of running an enterprise, systems of quality management, innovations and new technologies, export activity etc. Grants: min. 500 – max. 50.000 €, up to 50% of eligible costs•Measure 2.3 Improving Competitiveness of SMEs through investmentsInvestments in material goods, investments in non-material and legal values. Grants: min 2.500 – max. 250.000 €, up to 50% of eligible costs

STRUCTURAL FUNDS 2004 – 2006Sectoral Programmes for SME

„Sectoral Operational Programme – Human Resources Development”:

Measure 2.3 Development of Staff of Modern Economy

Trainings for employees and management staff of enterprises

STRUCTURAL FUNDS 2004 – 2006Regional Programmes for SMEs

„Integrated Regional Development Programme”

Measure 2.5. Promotion of the entrepreneurshipAdvisory and training services which support setting up and running business activity;

Grants: max. 5.000 €, up to 75 % of eligible costs

Measure 3.4. Microenterprises• Specialized advisory services which introduce innovations in the enterprise and improve its competitiveness;

•Investment endowmentsGrants: min. 500 – max. 50.000 €, up to 65% of eligible costs

PHARE –National Export Development Programme

• Internet database of companies and products from Internet database of companies and products from the Lodz Regionthe Lodz Region

• Offers for international co-operationOffers for international co-operation• Links to national and foreign institutions and Links to national and foreign institutions and

economic serviceseconomic services

www.rsie.lodzkie.plwww.rsie.lodzkie.pl

In 2003 LRDA developed the project:In 2003 LRDA developed the project:

„„Regional Export Information System”:Regional Export Information System”:

Łódzka Agencja Rozwoju Regionalnego S.A. Lodz Regional Development Agency

REGIONAL FINANCING INSTITUTION

Tuwima 22/26, 90-002 Lodz, Polandtel.: +48-42 632 18 92

fax: +48-42 633 07 63

http://www.larr.lodz.pl

e-mail: larr@larr.lodz.pl

President of the Board: Paweł Żuromski

e-mail: Pawel_Zuromski@larr.lodz.pl