Innovative practices in Bulgaria
Sharing innovations for improving local self-government
Encouraging the Enterpreneurship Culture and Providing Assistance to New Business Companies
Center for Development of the Municipality of Zlatograd
Background
The problem with the employment of the population in the Municipality of Zlatograd is determined as a key problem for the region. Creating adequate possibilities for work employment and reducing the high level of unemployment is a responsibility of the business fields, local authorities and state institutions. Private business is capable of being a stimulus and engine for the economic development; local authorities can create suitable conditions for realizing the process and state institutions are able to provide informational and consultant mediation. The possibilities given by the Professional Qualifications Unemployment Fund and its social benefits are mainly directed to persons who have lost their current jobs in the enterprises during the liquidation process. This particular activity, as well as some other initiatives of the Center for Development of the Municipality of Zlatograd are financed by the Foundation for Local Government Reform and the United States Agency for International Development and are focused on reducing the level of unemployment in the region.
The problem with the employment of the population in the Municipality of Zlatograd is determined as a key problem for the region. Creating adequate possibilities for work employment and reducing the high level of unemployment is a responsibility of the business fields, local authorities and state institutions. Private business is capable of being a stimulus and engine for the economic development; local authorities can create suitable conditions for realizing the process and state institutions are able to provide informational and consultant mediation. The possibilities given by the Professional Qualifications Unemployment Fund and its social benefits are mainly directed to persons who have lost their current jobs in the enterprises during the liquidation process. This particular activity, as well as some other initiatives of the Center for Development of the Municipality of Zlatograd are financed by the Foundation for Local Government Reform and the United States Agency for International Development and are focused on reducing the level of unemployment in the region.
Practice
About 600 people get unemployed as a result of the closing of three enterprises in the Municipality of Zlatograd and the village of Nedelino. Their professional realization, as well as the preservation of the labor potential in the region is a prior duty of the local authorities and the non-governmental organizations. The Center for Development of the Municipality of Zlatograd supports the idea of the National Employment Service to include the Municipality of Zlatograd in the Start a Business Pilot Project. The first step is to change the way of thinking of the people and persuade them in the purpose and benefits of starting their own private business. This is achieved through training courses, conversations and practical advice.
There is also an opportunity for providing up to 1 000 BGN financial aid to the newly beginning companies. The people who intend to start private business are included in a list. They are assisted with developing the business plans, strategies and main functions of the new company, required for the approval by financial institutions which, after evaluation and monitoring, can offer them additional financial support. With the assistance of the Center for Development of the Municipality of Zlatograd, 36 business projects are prepared, initiated by the different candidates from various business fields: carpenter and textile workshops; repair works; electricity and water services; pastry; clothes production; transport services; cattle-breeding; cultivation of potatoes; apiculture etc.
The Center is providing various services: consulting services, company, tax and statistic registration, as well as business activity planning and organization. The Center issues a manual titled Encouraging the enterpreneurship culture which contains useful guidelines for the businessmen - the requirements and conditions for access to the financial recourses of the active trade banks; applicable funds, donors and international organizations for stimulation of investments; information which will facilitate the successful application of the companies for financial aid; useful advice for accountants and managers; preferences available for the companies; information about the real state of the economic environment.
The second phase of the activity is directed to those who have already undertaken particular steps towards the implementation of their projects. The Center is providing assistance over more than 20 of the newly registered companies. It helps them with a package of various qualified services. The main idea is to stimulate the businessmen and increase their enterpreneurship knowledge in several practical aspects. The people who work in the Center for Development consider that the access to financial resources, qualified personnel, information or particular kind of services is very difficult. That is the reason why the Center tries to provide these companies and their employees with up-to-date information and technical support.
About 600 people get unemployed as a result of the closing of three enterprises in the Municipality of Zlatograd and the village of Nedelino. Their professional realization, as well as the preservation of the labor potential in the region is a prior duty of the local authorities and the non-governmental organizations. The Center for Development of the Municipality of Zlatograd supports the idea of the National Employment Service to include the Municipality of Zlatograd in the Start a Business Pilot Project. The first step is to change the way of thinking of the people and persuade them in the purpose and benefits of starting their own private business. This is achieved through training courses, conversations and practical advice.
There is also an opportunity for providing up to 1 000 BGN financial aid to the newly beginning companies. The people who intend to start private business are included in a list. They are assisted with developing the business plans, strategies and main functions of the new company, required for the approval by financial institutions which, after evaluation and monitoring, can offer them additional financial support. With the assistance of the Center for Development of the Municipality of Zlatograd, 36 business projects are prepared, initiated by the different candidates from various business fields: carpenter and textile workshops; repair works; electricity and water services; pastry; clothes production; transport services; cattle-breeding; cultivation of potatoes; apiculture etc.
The Center is providing various services: consulting services, company, tax and statistic registration, as well as business activity planning and organization. The Center issues a manual titled Encouraging the enterpreneurship culture which contains useful guidelines for the businessmen - the requirements and conditions for access to the financial recourses of the active trade banks; applicable funds, donors and international organizations for stimulation of investments; information which will facilitate the successful application of the companies for financial aid; useful advice for accountants and managers; preferences available for the companies; information about the real state of the economic environment.
The second phase of the activity is directed to those who have already undertaken particular steps towards the implementation of their projects. The Center is providing assistance over more than 20 of the newly registered companies. It helps them with a package of various qualified services. The main idea is to stimulate the businessmen and increase their enterpreneurship knowledge in several practical aspects. The people who work in the Center for Development consider that the access to financial resources, qualified personnel, information or particular kind of services is very difficult. That is the reason why the Center tries to provide these companies and their employees with up-to-date information and technical support.
Results
- 36 projects for development of private business, financed by the Professional Qualifications Unemployment Fund have been created;
- 20 newly established companies are provided with consulting, office management, human resources and accountant services; - several workshops and training courses for the newly registered and inexperienced companies, their employees respectively, were held;
- a manual titled Encouraging the enterpreneurship culture describing the requirements for access to financial funds etc. was published.
The Center for Development considers the establishment of 36 new companies a big success, since this is based on methodical and practical efforts, which awoke the enterpreneurship spirit of the citizens for their personal realization.
- 36 projects for development of private business, financed by the Professional Qualifications Unemployment Fund have been created;
- 20 newly established companies are provided with consulting, office management, human resources and accountant services; - several workshops and training courses for the newly registered and inexperienced companies, their employees respectively, were held;
- a manual titled Encouraging the enterpreneurship culture describing the requirements for access to financial funds etc. was published.
The Center for Development considers the establishment of 36 new companies a big success, since this is based on methodical and practical efforts, which awoke the enterpreneurship spirit of the citizens for their personal realization.
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