FOUNDATION FOR ENTERPRISE PROMOTION

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• FOUNDATION FOR ENTERPRISE PROMOTION
• BUSINESS INCUBATOR
• AND INNOVATION CENTRE
• NYÍREGYHÁZA

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WHY DO THE GOVERNMENT AND THE EU SUPPORT SME
sector ?

• 95-a (i.e. 838.000) of enterprises are
  micro-enterprises
• 37 of employees, more than one million people
• Commercial banks do not give loans to weak and
  starting micro-enterprises
• (Too risky, circumstancial, lack of security,
  etc.)

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Potential clients ?
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LOAN ELIGIBILITY
ENTERPRISE PROMOTION
Business Incubator
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• WITH INTEGRATED SERVICES !!!!!
• MICROCREDIT
• Information
• Councelling
• Training
• Business incubator services

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ADVANTAGES OF INTEGRATED SERVICES

• MICRO ENTREPRENEURS without an apparatus can
  receive MORE services as well
• SYNERGY effect
• MORE COST-EFFICIENT
• PARTIAL WORK HOURS
• Marketing, etc.

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Integrated service model

• programme hosts

Coun- selling
Incu- bator
Credit
Grant
Bridging Liason Service providers
?
Enterprises
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Hungarian Enterprise Promotion Network Consortium
OVK Kht.

• COUNTY AND CAPITAL CITY
• ENTERPRISE PROMOTION FOUNDATIONS
• Together for the entrepreneurs!

LEA
LEA
LEA
LEA
LEA
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County and capital city enterprise promotion
foundations

• They have the same ideal characters above
• 15 years experience in operation
• Knowledge of European Union principles,
  programmes, accounting, control PHARE, Interreg,
  EIC,.
• NON-PROFIT operation
• Under the control of local society!
• Supportable by EU (National Development Plan
  II)

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THE FUTURE IS ALREADY WORKING

• GKM MFB GKM MEH HG.Rt HEFOP ROP MFB

Micro- credit
New progra- mmes
Loans
Train- ing
Guara- ntee
Micro- credit Plus
GVOP 2.2.1
PIK
Bridging Liason Service provider
Incu- bator
LEA
Clasters
Industrial parks
enterprises
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Ideal liason service provider for the supporting
government

• Finished infrastructure
• Cost-efficient operation
• Under compel of good performance
• Sector neutral, wide entrepreneur contacts
• Operation within nationwide network
• Able to create synergy of programmes

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Characteristics of business incubators in Hungary

• established by several founders
• local governments take significant roles
• LEAs take big roles
• Rentable floorplace is between 500 and 3500 m2
• No support for operation
• operate on non-profit basis
• unable to cover amortization
• High rate of utilization

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Supporters of Business Incubators

• local government (usually providing a property)
• Government (from different centralized and
  decentralized funds, NDP Operative Programmes,
  Gábor Baross programme)
• European Union (Phare SME programme/MVA, CBC,
  Interreg programmes/VÁTI)
• Other opportunities (foreign governments, sister
  cities, foundations, funds, financial institutes
  etc.)

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PRIMOM Foundation for Enterprise Promotion

• BRIDGE between
• Entrepreneur-entrepreneur
• Entrepreneur-financial inst.
• Entrepreneur-government
• programmes

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PRIMOM FOUNDATIONThe beginning

• Foundation
• Work organization
• Application for PHARE
• Local Enterprise Agency

• 22 August 1990
• 1 March 1991
• 31 March 1991
• 1 June 1991

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Founders of PRIMOM Foundation

• MOM Rt
• Sz-Sz-B county
• Town of Nyíregyháza
• IPOSZ
• Town of Csenger
• Falkit Kft
• Labour Office
• Town of Fehérgyarmat
• Town of Nyírbátor

• SZAKSZIGkft
• VOSZ
• ENERGOCOOPKft
• KDNP
• MDF
• MSZP
• SZDSZ
• Chamber of Commerce

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Organizational structure of PRIMOM Foundation
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EIC Network in Hungary
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CREATIVE DEVELOPMENT PROGRAMMES 1

• THE FIRST HUNGARIAN BUSINESS INCUBATOR
• CARPATHIAN EURO-REGION - CARPATHIAN-TISZA
  FOUNDATION
• ENTERPRISE ZONE IN ZAHONY
• SMALL REGION DEVELOPMENT PARTNERSHIPS
• THE FIRST AGRICULTURAL MARKETING CENTRE (AMC)

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CREATIVE DEVELOPMENT PROGRAMMES 2

• THE FIRST COUNTY DEVELOPMENT AGENCY
• INDUSTRIAL PARK CONCEPT IN NYÍREGYHÁZA
• THE FIRST "ONE-STEP OFFICE"
• THE FIRST HUNGARIAN AGRICULTURAL AUCTION PLACE
• (producers' sales co-operatives)
• NATIONAL ENTERPRISE PROMOTION NETWORK

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Plan of PRIMOM Business Incubator
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Renovation phases of PRIMOM Business Incubator
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PRIMOM Business IncubatorNumber of renters
1992-2005
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Service data, trends
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INTERNATIONAL RELATIONS

• Business Incubator, Uzhgorod
• Entrepreneurs' House, Satu Mare
• Phare CBC, TACIS, INTERREG programmes
• EIC-European Union DG Enterprise (daily contacts
  with 42 countries in Europe)
• Enterprise Centre in Eperjes
• Flemmish relations

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Utilization of incubation experience

• Taking part in the preparation of the feasibility
  study for over 10 Hungarian business incubators
• Realisation of the business incubator in Uzhgorod
  (Ukraine)
• Still going on
• Realisation of the Business Incubator and
  Training Centre in Mátészalka in the framework of
  Interreg III/A programme
• Application for the feasibility study of the
  Business Incubator in Satu Mare (Romania) as a
  mirror project in the framework of the Phare CBC
  programme

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Current activities of PRIMOM Business Incubator

• Operating the business incubator
• Managing Interreg III/A project
• Implementing the granted Gábor Baross programme
• (providing a complex innovation service for 2
  years employing 1 new innovation manager)
• Implementing the granted HEFOP programme
  (promoting the return of women onto the labour
  market )
• Innovhid (analysing the creation of a county
  network of business incubators on the level of
  small regions in co-operation with the Hungarian
  Development Agency)

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Business Incubator study references
Mátészalka
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THANK YOU FOR YOUR ATTENTION
PRIMOM Foundation www.primomth.hu www.nyirinku.hu
4400 Nyíregyháza Váci M. u.41 Pf.236 Telefon
42/502-133, 42/502-111 Fax [phone] Email
primomvk_at_nyirinku.hu