Business environment in the perspective of entrepreneurs of Aloja municipality
Baiba Birzgale Business consultant Aloja Municipality council [email protected]
www.aloja.lv
Aloja March 27, 2015
Aloja municipality consists of:
Aloja town and parish Staicele town and parish Brīvzemnieku parish Braslavas parish
Area: 626.59 km2 Population: 5536 (as of 01.01.2015.)
Dynamics of enterprise registration
Type 2011 2012 2013 2014 2015 TOTAL CURRENTLY Entities 22 14 12 18 8 74 478
Sole Proprietorship (SP) 3 0 0 1 0 4 18
Individual enterprise (IE) 0 0 0 0 0 0 21
Limited Liability 18 14 12 15 8 67 144 Company(LLC)
Cooperative society (SC) 0 0 0 0 0 0 9
Farm 1 0 0 2 0 3 286
Organisations 6 4 1 6 0 17 54 Congregration (new) 0 0 0 0 0 0 1 (CONGN) Congregation (CONG) 0 0 0 0 0 0 3
Society (SOC) 4 3 1 5 0 13 46
Foundation (FND) 2 1 0 1 0 4 4
Total 28 18 13 24 8 91 532
Source: Lursoft 2015,ER Company registration and liquidation dynamics in Aloja municipality
Reg. Liq. Reg. Liq. Reg. Liq. Reg. Liq. Reg. Liq.
Years Number enterprises of
Statistical data on the number of companies registered on yearly basis (in Register of Enterprises of Latvia) Reg.- registered; Liq.-liquidated Source: Lursoft 2015, ER Enterprises in Aloja municipality
Enterprises in Aloja municipality in accordance to legal forms of entrepreneurship
Sole Proprietorship (SP) Individual enterprise (IE)
Limited Liability Company (LLC) Cooperative society (SC)
Farm
Source: Lursoft 2015,ER Most common types of activities in Aloja municipality 1. Agriculture, forestry and fishing – 313; 2. Crop production and livestock production, hunting and other related activities - 272; 3. Forestry and logging– 41; 4. Manufacturing- 20; 5. Wholesale and retail trade;car and motorcycle reparation– 16; 6. Construction - 15
Source: CSB 2015, ER Enterprises with the biggest turnover
1. LLC «ALOJA- STARKELSEN» 2. LLC «MARKO K» 3. LLC «EEMR TRANSPORT» 4. LLC «BORDERLINE» 5. LLC «TĒRAUDIŅI» 6. LLC «DRAUGU DĀRZS» 7. LLC «AVOTIŅŠ LC» 8. LLC «MKM GRUPA» 9. LLC «TRĪS NIANSES» 10. LLC «DK APSĪTES»
Source: LURSOFT 2015, ER
Entrepreneur survey results (1) ● Entrepreneurs of Aloja municipality took part in the survey in the time period from 29.12.2014. till 6.02.2015. ● Nr of respondents: 15; business executives: 13; others: 2. ● Respondents' fields of activity: agriculture; forestry and timber processing; construction transportation services; buildings management; tourism; veterinary; accounting services, etc.
Enterprises 2 2 1 1 1 1 2 1 2 2 Foundation year 1992 1994 1995 2003 2004 2005 2007 2008 2012 2014
Entrepreneur survey results(2)
Entrepreneurs of Aloja town 6
Entrepreneurs of Aloja parish3
Entrepreneurs of Staicele parish 1
Entrepreneurs of Braslava parish 2
Entrepreneurs of Brīvzemnieku parish 1
Entrepreneurs of Aloja municipality 2 Entrepreneur survey results(3)
Number of employees in the enterprise
−
−
−
− Number employees of
Number of enterprises Entrepreneur survey results(4)
Forms of Respondent enterprises
LLC Farms Self-employed Entrepreneur survey results(5)
Problems associated with foundation of an enterprise
No problems
Legislation
Lack of resources
Lack of information on entity foundation Lack of entrepreneurial skills
Lack of financial recourses, funding
Bureaucracy
Number of enterprises
Entrepreneur survey results(6)
Business development opportunities in municipality
Very good Good Moderate
Bad Very bad No opinion
73% of respondents assess their business development opportunities in Aloja municipality as moderate, good or very good! Entrepreneur survey results(7)
Over the past two years in the company...
Remained stable o Increased
umber
Decreased
N of
employees
Remained stable h Increased
Turnover Decreased
Remained stable h Increased
Profit
Decreased
Number of enterprises
47% of enterprises have incresed their profits
Entrepreneur survey results(8)
In the next 3 years the entrepreneurs plan to...
No opinion
No of of es
the Nr
Reduce Reduce Yes employe
No opinion
No
es
Yes
employe
Increase Increase the Nr of of the Nr
No opinion
ns No
Narrow entities
operatio Yes
down thedown
No opinion
No at
s
level Yes
current
entities
Maintain operation
No opinion
No
ons
operati Expand Expand
entity’s Yes
Number of enterprises
66% of entereneurs plan to increase the Nr of employees; 80% do not plan to narrow down the entity’s operations; 66% plan to expand the entity’s opeartions Entrepreneur survey results(9)
●47% of entrepreneurs plan to buy land or building in Aloja municipality in the following 3 years period; ●33% of entrepreneurs plan to lease land or building in Aloja municipality in the following 3 years period;
It is very important to set up the investment object database!
Entrepreneur survey results (10)
● Very actual obstacles that hinder the development of enterprises: high taxes for 54% of enterprises; large number of controlling institutions for 47% of enterprises; lack of qualified labour for 47% of enterprises. ● Actual obstacles that hinder the development of enterprises: inaccessibility of banking services in the municipality for 47% of enterprises; lack of current assets for 46% of enterprises; difficulty to get a loan/attract other financial resources for 40% of enterprises; Low demand for goods and services produced for 34% of enterprises. Entrepreneur survey results(11)
Main obstacles that hinder the development of enterprises in Aloja municipality :
bad lack of qualified infrastructure,
labour mainly roads
small insufficient number of exchange of population, lack of information low between local premises and purchasing government and land power no common entrepreneurs strategy for the business support in the municipality Entrepreneur survey results (12)
The main factors required for the enterprise’s growth
Equal competition
Modernization
Increase in the customer number
Tax incentives
Availability of financial resources
Motivated and qualified labour
Availability of land and buildings Entrepreneur survey results(12)
Activities that definitely need to be carried out in Aloja municipality
Engage entrepreneurs in territory improvement activities
Organise specialist consultations for entrepreneurs
Organise grant competition for new entrepreneurs
Organise entrepreneur days, business awards ceremonies
Organise seminars, discussions for new entrepreneurs
Facilitate the information flow from the municipality
Provide information on fundraising activities
Entrepreneurs Entrepreneur survey results(13) Recommendations for Aloja monicipality council Establish a business Promote incubator language Ensure the learning availability Involve local of legal producers in advice Create an tourism advertising campaign, a routes Encourage video about the residents to region, activities that entrepreneurs can create new Promote local working-places Organize companies, seminars, their production in discussions, webpage and study visits elsewhere Entrepreneur survey results(14)
Entrepreneurs need Financial consultant consultations in:
Tax consultant
Lawyer
Marketing consultant
Engineering specialists
Project Manager
Consultations on EU fund attraction
Entrepreneur survey results(15)
Economic specialization in Aloja municipality consists of
Timber Agriculture processing
Food production Entrepreneur survey results (16)
ES funding Entrepreneurs need seminars, lectures on.. Business support institutions and programs
Taxes
Business plan and marketing strategy development
Sales promotion
Marketing and branding
Human resource management Entrepreneur survey results (17)
Entrepreneurs as fundraising tools most commonly use...
ES structural funds 67%
Commercial long-term loans 40% Subsidies 27%
Private investors 27%
Leasing company services 27%
Commercial short-term loans 13% Entrepreneur survey results (18)
Infrastructure that is required for the development of enterprises, but is not available
Everything is available
Land offers
Access-roads and communications
Industrial areas
Telecommunication and IT
Power supply
Solid waste management
Water supply, sewerage
Infrastructure Building, premises supply
Motorways
Enterprises
Thanks to entrepreneurs for responsiveness!
Baiba Birzgale Business consultant Alojas Municipality council Phone: 0037125749131 [email protected]