structural funds in everyday use...projects in businessoulu over 45 on going projects, majority of...

ETUNIMI SUKUNIMI, SIVU 1

© BUSINESSOULU 2011, WWW.BUSINESSOULU.COM

Structural Funds in everyday use

Mari Rautiainen, Funding specialist 24.4.2012

BusinessOulu briefly

What:

A public utility, founded 2010 by Oulu, Oulunsalo, Kiiminki, Haukipudas

and Yli-Ii – these cities will merge into New City of Oulu Oulu 2013

Scale:

80 employees, ~ 50 of them in customer contact

Budget 12,3 M € ~7,5M € in projects

Organization:

Directly under the Mayor of Oulu Mr. Matti Pennanen

Board: 5 members from city of Oulu (elected in local elections) + 3

representatives of other municipalities

Director Mr. Juha Ala-Mursula



Our basic task

We create a competitive business environment for businesses

operating in or relocating to Oulu that have the desire and potential for

growth, aiming for a significant increase in overall investments

To help our customers succeed, we offer cutting-edge business

development services based on customer analysis together with our

local, national, and international partners

We promote job creation by encouraging enterprises to grow and think

internationally


Projects in BusinessOulu

Over 45 on going projects, majority of them funded by structural funds

(ERDF, ESF).

Other funding sources: centre of expertise programme, interreg IVA

nord and some others

On average 70% external funding for projects (structural funds, others,

private)



planning

start up- phase

(0-2 years)

acceleration

(2-5 years)

Growth and internationalization

BusinessOulu key projects in companys life circle

MARI RAUTIAINEN SIU 5


Taitajien talo

Takomo/Terva 3.1

Protostudio

ja pakki

Starttimalli

Kasvumalli

Start up & Grow

Global Oulu

WEGO

ISP

Nordic Business Link 2.0

VERCCO

BGF DRAIVI rekry

European structural fund

European social fund

Interreg IVA Nord

Case: Starttimalli



Training and business development consultations for people working in

start up companies

1.3.2011- 31.12.2013

Staff:

50% project manager

50% business development advisor

30% project assistant

Training: e.g Presentation and negotiation skills, financial programming,

copyrights, delivery terms, sales, corporate acquisition,

Turnout fall 2011: 68 persons

Funding € %

ESF 516 000 78,2

BusinessOulu 99 000 15

Private funding (companies) 45 000 6,8

∑ 660 000 100



Budget € %

Materials and supplyes 8 900 1

Staff 243 000 37

Outsoursing (training etc) 336 100 51

Travel 4 000 1

Others 68 000 10

∑

660 000 100

Case: Starttimalli

Comments

Very detailed reporting (Typical in ESF):

Follow up data: age, gender, entrepreneur y/n, woman entrepreud

y/n, education

Time spent in project, salary information to collect calculatory

salaries – participants find it difficult to understand why we ask

these ”delicate” matters

has to be typed one by one to reporting system (EURA2007)

always sort out women

Tendering takes time, but is relatively easy when dealing with training

and consulting



Case: Global Oulu

Main goal is to increase export from Oulu region. Project supports local

companies attending to exhibitions, seminars, business delegations

abroad (50% of eligible costs). Service to Companies

1.1.2011-31.12.2013

Staff:

Project manager 100%

1 project coordinator 100%



project assistant 40%

Course of action: Team spots exhibitions, recruits companies to attend

(minimum 3/exhibition), arrange booth and matchmaking etc services,

bill 50% of costs after exhibition



Case: Global Oulu

Le web, Paris 7-9.12.2011

Digital Healt Seminar, Tokio 22.11.2011

Medica/Compamed, Dusseldorf 16-19.11.2011

Exhibition Amsterdam 15-17.11.2011

Seminar Pulp&Paper awards, Bryssel

15.11.2011

Exhibtion and matchmaking, Jönköping 8-

9.11.2011

MINAPIM/FIAM, Manaus 23–30.10.2011

Market research Bangkok, 14–22.10.2011

Exhibition Web 2.0, NY 10–13.10.2011

Exhibition Advertising Week NY, 3-7.10.2011

44 companies in 2011



Budget € %

Office supplyes 42 400 3 %

Staff 461 625 31 %

Outsoursing (consulting, exhibition

booths etc)

831 747 55 %

Travel 115 928 8 %

Others 15 000 1 %

Rents 43 300 3 %

∑ 1 510 000 100 %



Funding € %

ERDF 755 000 50 %

BusinessOulu 615 000 41 %

Other Public funding 30 000 2 %

Private funding (companies) 110 000 7 %

∑ 1 510 000 100%

Case: Global Oulu

Comments

Due to national legislation minimum of three participants/exhibition

challenging to find companies in very spezialised branches (such

as life science and gaming industry

Companies have to be pre-approved in Council of Oulu

Credict rating (no unpayed taxes allowed)

De minimis forms

company´s goal in the exhibition and capability to go abroad

Tendering is challenging when seeking consults e.g in Kazakshtan,

Turkey or in China



Case: Arctic Gateway

To increase international tourism in Oulu region

1.1.2011-31.12.2013

Outsourced 100% Operator Nordic Marketing GmbH

Markets Oulu to tour operators in Europe (Spain, Italy, Germany,

France, Russia) mainly in cities within reasonable flight times from Oulu

Marketing material (incl. Ipad App), sales calls etc

Fam trips to Oulu





Funding € %

ERDF 700 000 70 %

BusinessOulu 20 000 2 %

Private funding (companies) 280 000 28 %

∑ 1 000 000 100

Budget € %

Outsoursing 900 000 90 %

Others 100 000 10 %

∑ 1 000 000 100 %

Case: Arctic Gateway

Comments

Very good way to execute a project with clear objectives; operator takes

care also most of project management such as management group

meetings and reporting to EURA2007

Demands tight co-operation with operator (monthly meetings)

Funding organization demanded first very precise prices to project plan

even thoug it was decised to tender it in it´s entirety

at planning phase: marketing xxx€

materials xxx

travel xxx

personnel xxx

now: project management 900 000€



General Comments

Takes very long time to get a project approved (apprx 6-8 months)

Challengin to be innovative, respond to changes and take risks when

every action must be in project plan few years before

There is less funding available for major cities at the end of structural

fund programme period (need to fund projects in very sparcely

populated areas, dilemma: no people, no projects)

bureaucracy, bureaucracy, bureaucracy.. Not all of it cooked up in

Brussels there are skills in Helsinki also

Think carefully national regulations –are they always needed?



Angry Bird by Rovio entertainment ltd

http://www.rovio.com/

General Comments

New ways of funding: flat rate for gereral costs and

lump sum for smaller projects

Detailed planning means well organized action

Good cooperation with financing authorities

Remember to commit enough human resources and time for paperwork

and archive space for results

More money to promote the prosperity and competitiveness of

companies in the Oulu region with the ultimate goal of creating new jobs



Pearl by Alpakka Media / Oulu

http://www.alpakkamedia.fi/eportfolio.html

Mari Rautiainen, Funding specialist, BusinessOulu

+358 44 703 1370 [email protected]

Thank you!

structural funds in everyday use...projects in businessoulu over 45 on going projects, majority of...

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