Business environment in the perspective of entrepreneurs of Aloja - - PowerPoint PPT Presentation

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Business environment in the perspective of entrepreneurs of Aloja - - PowerPoint PPT Presentation

Business environment in the perspective of entrepreneurs of Aloja municipality Baiba Birzgale Business consultant Aloja Municipality council baiba.birzgale@aloja.lv www.aloja.lv Aloja March 27, 2015 Aloja municipality consists of:


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SLIDE 1

Business environment

in the perspective of entrepreneurs of Aloja municipality

Baiba Birzgale Business consultant Aloja Municipality council baiba.birzgale@aloja.lv www.aloja.lv Aloja March 27, 2015

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SLIDE 2

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.)

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SLIDE 3

Dynamics of enterprise registration

Type 2011 2012 2013 2014 2015 TOTAL

CURRENTLY

Entities 22 14 12 18 8 74 478

Sole Proprietorship (SP) 3 1 4 18 Individual enterprise (IE) 21 Limited Liability Company(LLC) 18 14 12 15 8 67 144 Cooperative society (SC) 9 Farm 1 2 3 286

Organisations 6 4 1 6 17 54

Congregration (new) (CONGN) 1 Congregation (CONG) 3 Society (SOC) 4 3 1 5 13 46 Foundation (FND) 2 1 1 4 4

Total 28 18 13 24 8 91 532 Source: Lursoft 2015,ER

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SLIDE 4

Company registration and liquidation dynamics in Aloja municipality

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

Years Number of enterprises

Reg. Reg. Reg. Reg. Reg. Liq. Liq. Liq. Liq. Liq.

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SLIDE 5

Enterprises in Aloja municipality

Source: Lursoft 2015,ER

Enterprises in Aloja municipality in accordance to legal forms of entrepreneurship

Sole Proprietorship (SP) Limited Liability Company (LLC) Farm Individual enterprise (IE) Cooperative society (SC)

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SLIDE 6

Most common types of activities in Aloja municipality

Source: CSB 2015, ER

  • 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
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SLIDE 7

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

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SLIDE 8

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

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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

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SLIDE 10

Entrepreneur survey results(3)

Number of employees in the enterprise

Number of enterprises Number of employees

− − −

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SLIDE 11

Entrepreneur survey results(4)

Forms of Respondent enterprises

LLC Farms Self-employed

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SLIDE 12

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

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SLIDE 13

Entrepreneur survey results(6)

73% of respondents assess their business development

  • pportunities in Aloja municipality as moderate, good
  • r very good!

Business development opportunities in municipality

Very good Good Moderate Bad Very bad No opinion

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SLIDE 14

Entrepreneur survey results(7)

47% of enterprises have incresed their profits

Remained stable

  • Increased

Decreased Remained stable

h

Increased Decreased Remained stable

h

Increased Decreased

Over the past two years in the company...

Number

  • f

employees

Turnover Profit

Number of enterprises

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SLIDE 15

Entrepreneur survey results(8)

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

No opinion No Yes No opinion No Yes No opinion No Yes No opinion No Yes No opinion No Yes

In the next 3 years the entrepreneurs plan to...

Reduce the Nr

  • f

employe es Increase the Nr of employe es Narrow down the entities

  • peratio

ns Maintain entities

  • peration

s at current level Expand entity’s

  • perati
  • ns

Number of enterprises

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SLIDE 16

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!

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SLIDE 17

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%
  • f enterprises;
  • lack of current assets for 46% of enterprises;
  • difficulty to get a loan/attract other financial resources for 40%
  • f enterprises;
  • Low demand for goods and services produced for 34% of

enterprises.

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SLIDE 18

Entrepreneur survey results(11)

Main obstacles that hinder the development of enterprises in Aloja municipality :

lack of qualified labour bad infrastructure, mainly roads small number of population, low purchasing power lack of premises and land no common strategy for the business support in the municipality

insufficient exchange of information between local government and entrepreneurs

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SLIDE 19

Entrepreneur survey results (12)

The main factors required for the enterprise’s growth

Availability of land and buildings Motivated and qualified labour Availability of financial resources Tax incentives Increase in the customer number Modernization Equal competition

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Entrepreneur survey results(12)

Activities that definitely need to be carried out in Aloja municipality Entrepreneurs

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

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SLIDE 21

Entrepreneur survey results(13)

Promote language learning

Create an advertising campaign, a video about the region, entrepreneurs

Involve local producers in tourism routes Recommendations for Aloja monicipality council Organize seminars, discussions, study visits Establish a business incubator

Encourage residents to activities that can create new working-places

Ensure the availability

  • f legal

advice

Promote local companies, their production in webpage and elsewhere

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SLIDE 22

Entrepreneur survey results(14)

Financial consultant Tax consultant Lawyer Marketing consultant Engineering specialists Project Manager Consultations on EU fund attraction Entrepreneurs need consultations in:

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SLIDE 23

Entrepreneur survey results(15)

Economic specialization in Aloja municipality consists of

Timber processing Food production Agriculture

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SLIDE 24

Entrepreneur survey results (16)

Entrepreneurs need seminars, lectures on.. ES funding Business support institutions and programs Taxes Business plan and marketing strategy development Sales promotion Marketing and branding Human resource management

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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%

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SLIDE 26

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 Building, premises supply Motorways

Infrastructure Enterprises

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SLIDE 27

Thanks to entrepreneurs for responsiveness!

Baiba Birzgale Business consultant Alojas Municipality council Phone: 0037125749131 baiba.birzgale@aloja.lv