Foundation for Local Government Reform
Innovative practices in Bulgaria
Sharing innovations for improving local self-government
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Background
Practice

The economic situation in Bulgaria – a transition from command to market economy – determines the need of involving the municipalities in the economic revitalization , job creation and regional industrial development processes . Therefore, in 2000 the Municipality of Haskovo targeted its efforts to the development of a concept for business support and investment recruitment. This defined the need for the development of a targeted municipal program based on the real situation in the country. At that time, marketing in Bulgaria was associated mainly with private companies whose main goal is to sell their own products. In fact, marketing is equally important for the local authorities, the citizens and the community .

The first step was to establish a team to work on the project. The team was comprised of 9 municipal employees from key departments (municipal property, architecture and town planning, legal and normative services, etc.) and 6 municipal councilors.

The second step involved the elaboration of the Orientation Program. The program itself was a result from the dialogue and the joint efforts of the local government and the local business. The orientation services cover a fairly wide area, from very general to very specific items: reservations, meeting, presentation, meetings, translation, legal and economic advice, etc. The possible topics and components of the Orientation Program are presented in twelve categories, such as business environment, taxation and accounting standards, labor force, etc.

The most important aspect of the implementation is the flexibility in terms of time , meetings and information . The purpose of the Orientation Program is to have the prospective investors get a good picture of the municipality and the opportunities it offers, in order to make the right investment decision. Another significant contribution by the Municipality is the provision of free office space, an innovation in the practices of the Bulgarian municipalities. Every prospect interested in the region is accommodated at the Corporate Office Center. In this way the prospect has the opportunity to receive all the information needed, to judge the opportunities and then make an investment decision. The overall goal is to have the investor blend in the business environment of the region by locating permanently in the industrial zone .

The third step included the development of company profiles by industry .

Step four was the publication of a marketing profile of the municipality. Its purpose is to generate the interest of a specific target group. The profile includes attractive information about the region and the business development opportunities. In the context of the Haskovo project, the target group were the business people. The goal is to improve the economic environment, create jobs and support the overall development of the municipality.

The fifth and final step is the Corporate Office Center which provides free use of office space (at the municipal Business Center) to companies willing to get acquainted with the Orientation Program and to spend some time staying in town and getting to know the situation and the business climate in the region .

The practice under this project was an innovation for Bulgaria and Haskovo faced a series of challenges . There was a lot of pessimism and lack of understanding. In the end, the effort was a success. In 2002, the Municipality of Haskovo got the first prize for exceptional innovative contribution in the Municipal Marketing category.

The main conclusion is that when the local governments come to realize the importance of marketing, enhance their skills and learn how to use them in a professional manner, it will be easier for them to achieve both their short- and long-term goals.
Results

The project was implemented in 2001 – 2002. Both short- and long-term results have been achieved .

Short-term results :

- Assessment of economic development strengths and weaknesses ;

- Assessment of the advantages and the threats to the business environment in the municipality ;

- Development of investor recruitment concept and strategy ;

- Successful implementation of the Orientation Program ;

- Publication of quality materials featuring useful information for the companies (in Bulgarian and English): marketing profile (circulation 3,000), business catalog (circulation 50), Orientation program leaflets (circulation 3,000)

Long-term results:

- Implementation of long-term development concept and strategy for an industrial park in the Northern Industrial Zone, where to locate new investors;

- Recruitment of new investments to the municipality ;

- Creation of new jobs through retention and expansion of existing businesses ;

- Supplementing and updating the Orientation Program and transforming it in a larger-scale product – a package of business incentives.

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Publication Date: 22 June 2007
Nominations: 0


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