The Effects of SND's Financial Support for Businesses
Total Page:16
File Type:pdf, Size:1020Kb
THE EFFECTS OF SND’s FINANCIAL SUPPORT FOR BUSINESSES Follow-up study in 2004 of companies which received SND financing in 2000 by Einar Lier Madsen Bjørn Brastad NF Report No. 3/2005 ISBN: 82-7321-522-9 ISSN: 0805-4460 N-8049 BODØ, Norway Tel.: 75 51 76 00 Telefax: 75 51 72 34 REFERENCE PAGE - This report may also be ordered by e-mail from [email protected] Title Publicly accessible: NF Report No.: The effects of SND’s financial support for Yes 3/2005 businesses ISBN ISSN Follow-up study in 2004 of companies which 82-7321-522-9 0805-4460 received SND financing in 2000 Number of pages Date: and attachments: 181 August 2004 Authors Project Manager (signature): Einar Lier Madsen Einar Lier Madsen Bjørn Brastad Research Manager: Elisabet Ljunggren Project Client 70 01 07 Follow-up Study 2004 The Norwegian Ministry of Trade and Industry, the Ministry of Local Government and Regional Development, the Ministry of Fisheries, the Ministry of Agriculture and Food and Innovation Norway (formerly The Norwegian Industrial and Regional Development Fund (SND)) Client’s Representative Lars Hagen/Gry E. Monsen Summary This document presents a follow-up UKey wordsU study of the participants in the preliminary study in 2001 (the 2000 group) and is based on Regional policy interviews carried out in 2004 with 807 Innovation Norway (the Norwegian Industrial and companies of various types and in various Regional Development Fund (SND)) industries throughout Norway. The main Financial support for businesses emphasis of the follow-up study is on clarifying the following questions: What significance does SND have for the projects, what results do the Key words projects provide and how is the financial Rural policies performance of the companies affected? The Innovation Norway (The Norwegian Industrial companies participating in the study have made and Regional Development Fund (SND)) use of the following ten types of support: Public support of companies/financial support Secured loans, national and regional venture capital loans or development grants, start-up grants for entrepreneurs, public and industrial research and development contracts, basic financing for fisheries operators, agricultural loans and rural development funds. Is the same report as 13/2004 but in English. Price NOK 200 The Nordland Research Institute issues three series of publications: Reports, Working Papers and Articles/Lectures. Reports comprise the principal reports for a completed project or a defined subject. Working Papers may be presentations of preliminary results, status reports or less extensive studies and notes. The Articles and Lectures series may contain lectures, seminar papers, articles and other contributions not subject to copyright. PREFACE The Nordland Research Institute carries out client surveys of companies which have received approval for loans or grants from SND, on behalf of the Norwegian Ministry of Trade and Industry, the Ministry of Local Government and Regional Development, the Ministry of Fisheries, the Ministry of Agriculture and Food and Innovation Norway (formerly the Norwegian Industrial and Regional Development Fund (SND)). These client surveys, which have been carried out since 1995, represent a systematic acquisition of information and an analysis of how SND’s financial and professional involvement affects the companies’ financial and strategic development. The client surveys are made up of a preliminary study, carried out one year after the approval of financing has been given, followed by a follow-up study 3-4 years later. This document presents a follow-up study of the participants in the preliminary study in 2001 (the 2000 group) and is based on interviews with 807 companies of various types and in various industries throughout Norway. We would like to point out that SND’s various programme activities are not considered in connection with this client survey. These programmes constitute a significant part of SND’s involvement in competence development. This client survey will therefore not provide a comprehensive picture of SND’s activities. Questionnaires were distributed and the interviews were carried out in January and March 2004. The practical work of interviewing the companies’ representatives was carried out on assignment by Polarfakta AS. A reference group was assigned to the project consisting of representatives from the Ministry of Trade and Industry, the Ministry of Local Government and Regional Development, the Ministry of Fisheries, the Ministry of Agriculture and Food and SND. This group held a meeting and presented its comments and contributions in connection with the analysis and the draft report. However, the authors bear full responsibility for all discussions and conclusions presented herein. The work was carried out by senior advisor Einar Lier Madsen and researcher Bjørn Brastad. Jan Mønnesland reviewed and provided contributions and comments on the report. Bodø, August 2004 1 CONTENTS TUPREFACEUT ........................................................................................................................... 1 TUSUMMARYUT....................................................................................................................... 12 TUPART A: OBJECTIVE AND METHODUT ....................................................................... 19 TU1.UT TUBACKGROUND AND OBJECTIVESUT ................................................................. 20 TU1.1UT TUBACKGROUNDUT .................................................................................................................... 20 TU1.2UT TUOBJECTIVESUT........................................................................................................................ 21 TU1.3UT TUCHANGES RELATIVE TO THE PREVIOUS STUDYUT ............................................... 22 TU1.4UT TUTHE STRUCTURE OF THE REPORTUT .......................................................................... 23 TU2.UT TUEVALUATION CRITERIA AND ANALYSIS MODELUT .................................... 25 TU2.1UT TUEVALUATION CRITERIAUT ............................................................................................. 25 TU2.1.1UT TUSND’s objectives and visionsUT .......................................................................... 25 TU2.1.2UT TUDescription of the objectives for fundingUT ........................................................ 28 TU2.1.3UT TUResult Reporting System for SNDUT .................................................................... 29 TU2.1.4UT TUEvaluation criteria and questions to be answeredUT .......................................... 30 TU2.2UT TUREGIONAL POLICY SUPPORT AREAUT .................................................................................... 32 TU2.3UT TUMODEL OF ANALYSISUT ...................................................................................................... 32 TU3.UT TUDATABASE AND METHODUT ................................................................................ 36 TU3.1UT TUSELECTIONUT .......................................................................................................................... 36 TU3.2UT TUDATA ACQUISITION METHODUT .................................................................................. 38 TU3.3UT TU ASSESSMENT OF THE DATAUT ............................................................................................... 39 TU3.4UT TUDISTRIBUTION ACCORDING TO TYPES OF SUPPORT AND ZONESUT ....................................... 40 TUPART B: EVALUATION OF RESULTS AT FINANCING AND GUIDANCE LEVELUT .................................................................................................................... 43 TU4.UT TUPROJECT FOLLOW-UP, COMPLETION AND FINANCINGUT ....................... 44 TU4.1UT TU FUNDING USEDUT ................................................................................................................. 44 TU4.2UT TUSND’S FOLLOW-UP OF THE SUPPORT RECIPIENTSUT ............................................................ 45 TU4.2.1UT TUHow many companies have been followed up?UT ............................................... 45 TU4.2.2UT TUFields in which the companies have been followed upUT .................................... 46 TU4.3UT TUCOMPLETION OF THE PROJECTSUT ............................................................................. 47 TU4.4UT TUFINANCING OF PROJECTSUT .................................................................................................... 49 TU4.4.1UT TUThe projects’ financing sources according to type of supportUT......................... 49 TU4.4.2UT TUThe projects’ financing sources grouped according regional policy support areasUT .............................................................................................................. 50 TU4.4.3UT TUAdditional financing from SNDUT ....................................................................... 52 TU4.5UT TUSUMMARYUT........................................................................................................................... 52 2 TU5.UT TUTHE IMPORTANCE OF SND FINANCING FOR THE REALISATION OF THE PROJECTUT ...................................................................................................... 54 TU5.1UT TUCONSIDERED IN RETROSPECT, WOULD THE COMPANIES HAVE REALISED THE PROJECTS?UT ............................................................................................................ 54 TU5.1.1UT TUProject realisation in retrospect according to type of supportUT .......................