Marzahn-Hellersdorf Entrepreneurship Environment and Policies
Summary of OECD review panel findings and recommendations
1 Some context
Part of Berlin agglomeration
● Borders are more administrative than functional: linkages within the city must be recognised
● Local authority district has limited powers and resources: it must work with partners Business activity is not strong
● Weak small business growth
● FDI hard to attract
● Service activities often oriented to local markets
Sometimes a poor image within Berlin
2 SME attraction
3 Strengths
● Assistance is provided to businesses seeking to locate in the district
● Labour is cheap and many workers with commuter jobs would prefer to work locally
● Business infrastructure is very good
● Good local shopping and leisure facilities
● ‘Berlin Eastside’ joint marketing initiative gives visibility
4 Weaknesses (1/2)
● The district economic development budget covers only staff and administration
● Economic support programmes are centralised at Land and Federal government
● The district must compete within the agglomeration for inward investment
● There are few large companies to attract suppliers
5 Weaknesses (2/2)
● ‘Berlin Partner’ is a central agency for Berlin with little special promotion for Marzahn-Hellersdorf
● Image problems within Berlin
● Marketing efforts are mainly locally-orientated and not targeted to economic opportunity sectors
● Major development concentrates in the city centre
6 Recommendations
● Seek out funding programmes that can at least indirectly support in-moving firms – Job training – Customising premises
● Seek to develop a local health care cluster, targeting existing SMEs that might move
● Support linkages with companies in Poland and Central Europe that are potential customers, suppliers and partners
● Continue to seek larger investors in partnership with Land
7 Property initiatives
8 Strengths
● Abundant premises
● Good mix of property types
● High quality premises
● Good supporting infrastructure, including transport links to city centre
9 Weaknesses
● Strong competition to fill space – Abundant, good quality space in other city districts – Property prices in neighbouring Brandenburg are lower
● Centralised property pricing policy of Land prevents price flexibility
● Limited private sector interest in property provision and management – Vacant sites and premises – Strong public sector involvement
10 Recommendations
● Examine the transferability of Tax Increment Financing to Berlin for property and complementary economic development projects
● Encourage greater private sector involvement in property initiatives to increase market flexibility and responsiveness
11 Modernising and diversifying SMEs
12 Strengths
● Wider regional circumstances that might be exploited to the benefit of the district – Quality of transport links – Training opportunities elsewhere – Potential support from Land government
13 Weaknesses
● Lack of a district strategy on small business and enterprise issues
● No district organisation dedicated to small business and enterprise
● Little higher education provision directly in the district
14 Recommendations
● Increase investment readiness and access to finance – Focus on access to existing sources of finance
● Review procurement policies of the local authority district – Remove any overly restrictive conditions on SMEs to bid for contracts – Promote opportunities to SMEs – Offer training and support to SMEs wishing to bid
● Adopt a Small Business Charter in the district administration – Council departments review procedures towards SMEs – Accompany with internal consultation and training within the local authority
● Make the Small Business Charter well known – Promote to local businesses – Refer to in international marketing – Involve business groups in drawing up and reviewing the Charter
15 Training for SMEs
16 Strengths
● Great variety of training offers to SMEs
● Subsidised services available for young companies, e.g. Chambers/IBB/KfW
● Large pool of qualified young adult workers
● XX
17 Weaknesses
● Can be difficult for SMEs to identify and select the right training offer
● Shortage of technicians with skills for the current labour market
● Training often limited to the early stages of business
● Necessity entrepreneurs often lack entrepreneurial skills
● Poor financial position of many companies reduces interest in fee-charging services
● Gap in innovation training for non-technology enterprises
18 Recommendations (1/2)
● Enhance co-ordination, transparency and quality checks on training services
● Refocus existing training towards – Standardised introduction courses followed by sector and company orientated training – Use of business games and simulations – Apprenticeships and work placements for schools leavers – Entrepreneurship education at school – Fill skills gaps
19 Recommendations (2/2)
● Public campaigns to increase demand for SME training (and quality of supply) – Publicise successful training schemes – Use participating SMEs as role models
● Enhance intrapreneurship to promote SME innovation – Generate intrapreneurial attitudes in company managers and staff – Use interactive learning approaches – Use case studies based on role models – Bring in support of Chambers, business associations and others
20 Points for discussion
● Reactions
● Agreements and disagreements
● Additions
● Making recommendations happen – how and who
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