1 Promotion of the entrepreneurship - fostering positive attitudes towards an entrepreneurial spirit Lodz Region Promotion of the entrepreneurship - fostering positive attitudes towards an entrepreneurial spirit Pawel Zuromski, President of the Board, Lodz Regional Developmemt Agency “Regions for economic change: Regional Policy responses to demographic challenges” Brussels, January 2007

2 Promotion of the entrepreneurship - fostering positive attitudes towards an entrepreneurial spirit Lodz Region Integrated Regional Operational Programe - IROP Measure 2.5 Entrepreneurship Promotion European Social Fund General Topics National and regional background for the Measure’s implementation. Criteria of the projects’ selections. Characteristic of the implemented projects. Characteristic of the final beneficiaries. Experiences after two years of the implementation period: positives features and obstacles.

3 Promotion of the entrepreneurship - fostering positive attitudes towards an entrepreneurial spirit Lodz Region IROP - Measure 2.5 Entrepreneurship Promotion European Social Fund General information The objective of the measure is to develop the appropriate foundations and conditions favoring the undertaking of independent business activities and employment creation by stimulating the set up of new local enterprises in non-traditional sectors of economy. Beneficiaries – project holders selected within the competition (Final Recipients). Projects’ costs include: a)Costs of Beneficiary related to project implementation (cannot exceed 100 thousand PLN per year). b)Costs of individual bridging allowance and one time business start- up investment grants Ultimate Beneficiary – natural person, not registered as unemployed, intending to undertake business activities (regardless of age, sex, possessed vocational experience), excluding persons who have been the owners of an enterprise and have conducted business activity after 1 January 2004.

4 Promotion of the entrepreneurship - fostering positive attitudes towards an entrepreneurial spirit Lodz Region IROP Measure 2.5 Entrepreneurship Promotion Amount of allocation (ESF) according to IROP Programme Complement Amount of contracted EU financial support (ESF) Indicative share of contracted EU Financial Support in total allocation of funds for years (ESF) Lodz Region9,00 mio PLN6,29 mio PLN69,88 % EUR *3,8235 = PLN [Allocation of funds for IROP multiplied by average rate of EUR in Polish National Bank on ] IROP Measure 2.5 Entrepreneurship Promotion European Social Fund Utilisation of allocated funds: the Lodz Region

5 Promotion of the entrepreneurship - fostering positive attitudes towards an entrepreneurial spirit Lodz Region IROP Measure 2.5 Entrepreneurship Promotion European Social Fund Submitted projects in figures ProjectsNumber of projects registered113 approved (after formal evaluation) 104 transferred to PAC 1 72 recommended12 contracted12 1 PAC – Projects’ Assessment Committee

6 Promotion of the entrepreneurship - fostering positive attitudes towards an entrepreneurial spirit Lodz Region 78 % 22 % IROP Measure 2.5 Entrepreneurship Promotion European Social Fund Ultimate Beneficiaries

7 Promotion of the entrepreneurship - fostering positive attitudes towards an entrepreneurial spirit Lodz Region 53, 86 % 31, 81 % 9,74 % 4,58 % IROP Measure 2.5 Entrepreneurship Promotion European Social Fund Ultimate Beneficiaries by their status before participation in the programme

8 Promotion of the entrepreneurship - fostering positive attitudes towards an entrepreneurial spirit Lodz Region ~ 61 % IROP Measure 2.5 Entrepreneurship Promotion European Social Fund Ultimate Beneficiaries / Newly set-up microenterprises

9 Promotion of the entrepreneurship - fostering positive attitudes towards an entrepreneurial spirit Lodz Region IROP Measure 2.5 Entrepreneurship Promotion European Social Fund Ultimate Beneficiaries by types of business activities

10 Promotion of the entrepreneurship - fostering positive attitudes towards an entrepreneurial spirit Lodz Region IROP Measure 2.5 Entrepreneurship Promotion European Social Fund Needs / Possibilities

11 Promotion of the entrepreneurship - fostering positive attitudes towards an entrepreneurial spirit Lodz Region IROP Measure 2.5 Entrepreneurship Promotion European Social Fund Non-financial support

12 Promotion of the entrepreneurship - fostering positive attitudes towards an entrepreneurial spirit Lodz Region IROP Measure 2.5 Entrepreneurship Promotion European Social Fund Ultimate Beneficiaries – capital assistance ( till: Ultimate Beneficiaries benefited of:)

13 Promotion of the entrepreneurship - fostering positive attitudes towards an entrepreneurial spirit Lodz Region STRENGHTS: Improvement of vocational qualifications and skills Long term, complex and proffesional support Fostering positive attitudes towards an entrepreneurial spirit among persons who didn’t seem to be capable to start business activities independently WEAKNESSES: Complicated procedures (too many documents) Extending procedures for payments of allowances Quality of training courses (sometimes far away from expectations) IROP Measure 2.5 Entrepreneurship Promotion European Social Fund Problems / Opinions of Ultimate Beneficiaries

14 Promotion of the entrepreneurship - fostering positive attitudes towards an entrepreneurial spirit Lodz Region IROP Measure 2.5 Entrepreneurship Promotion European Social Fund Problems / Opinions of Final Recipients (Beneficiaries) STRENGHTS: Great interest of the measure, particularly among young and unemployed persons Promotion and development of institution/individual opportunities WEAKNESSES: Complicated and often changed procedures/documents Extending period for payments Project laboriousness

15 Promotion of the entrepreneurship - fostering positive attitudes towards an entrepreneurial spirit Lodz Region IROP Measure 2.5 Entrepreneurship Promotion European Social Fund Problems / Opinions of Implementing Institution STRENGHTS: Great interest in this measure Opportunity to implement projects aiming unemployment reduction through support of entrepreneurial activities that implies set up of new enterprises (the measure strongly corresponds with LRDA’s mission) WEAKNESSES: Over-developed institutional system Procedures / guides / programme documents (frequent changes) Projects laboriousness / lack of sufficient skills of Final Recipients for project implementation (mainly staff shortages)

16 Promotion of the entrepreneurship - fostering positive attitudes towards an entrepreneurial spirit Lodz Region Pawel Zuromski M.Sc. President of the Board Lodz Regional Development Agency Tuwima 22/26, Lodz, Poland tel. (+48-42) fax (+48-42) Elaboration in co-operation with: Ewa Lefik Alicja GrzesiakLodz Regional Development Agency Krzysztof Jasczak