Our Project

FIN-URB-ACT strives for more efficient local support structures for SMEs' development and innovative economies. The rationale is that such structures on local level - where financial instruments meet nonfinancial assistance - are basic prerequisites for fostering start-ups and business growth.

Thus, FIN-URB-ACT will create and/or improve local support structures, which should involve all local and regional key actors for SME and innovative economy support.

Furthermore, based on an integrated local action plan developed by the local partnership, FIN-URB-ACT will have a strong focus on developing and implementing tailormade financial and non-financial support products like micro-credit and other funding schemes, incubators, business networks etc.

The main objective of FIN-URB-ACT is to strengthen the performance of the urban economy and to foster employment by providing adequate support structures for innovative, competitive and qualified entrepreneurship. One important aspect will be to improve SMEs’ and innovative economy’s access to finance to start up and prosper. Thus, sustainable growth and the creation of jobs are eased and at the same time an attractive urban development is promoted.

FIN-URB-ACT will interlink the integrated urban development approach, promoted by both the EU-Commission and the Leipzig Charter, and the renewed Lisbon strategy for growth and jobs adopted on 11th of December 2007, which substantially increases the need to fully unlock the growth and jobs potential of SMEs and make full use of their innovative capacities. Thus, FIN-URB-ACT adds value to EU policies by interlinking the urban dimension of EU Cohesion Policy with EU SME Policy promoting innovative financial tools like micro-credits and revolving funds.

The main issue of the project is to create and further develop effective local support structures by strong local business promotion partnerships between all relevant public and private actors. The support structures will contain attractive financial and innovative non-financial instruments - both on local and regional/national level which are combined in a coherent and comprehensive support package. The overall conviction of FIN-URB-ACT is that it is not enough to create individual support tools. There is a strong need to combine offers and to orchestrate the single actors in a way that synergy effects can be used and tasks can be streamlined and at the same time various groups of entrepreneurs with different needs and expectations can be reached. Due to the importance of financial support (e.g. by specific micro credit offers or risk capital) the involvement of local financial institutions will be crucial as well as the access to SME support schemes on regional/national level. This vertically and horizontally linked, overall support structure will form a fundamental basis for promoting local entrepreneurship.

Based on URBACT I results (e.g. ECO-FIN-NET, CCWG “local economic development”) FIN-URB-ACT will assist cities in developing and applying local economic support strategies and innovative instruments for SME development. Being an implementation oriented project, focus will be laid on a practice oriented transfer of gained knowledge to the local level and on its application within Local Action Plans (LAP). On the local level the partners will set up or improve their partnership within the Local Support Group (LSG) – consisting of key actors for SME support such as city departments, banks, universities, chambers, business representatives etc. Within this LSG an overall local economic development strategy (LAP) will be elaborated and new financial and non-financial instruments, like micro credits, risk capital, incubators etc. will be tested and applied in practice. The LAP will include knowledge, good practices and conclusions achieved within the European partnership.

Outputs are not limited to the participating partners and include overall capitalisation and information material for all interested bodies. These can be amongst others a good practice compilation, a guidebook, thematic studies and policy recommendations for the local as well as the regional and European level.

TOPIC

Challenges

Small and medium-sized enterprises (SMEs) form the backbone of the economy in many European cities. Especially in old-industrialised regions suffering from structural changes and transformation, SMEs and start-ups are considered as main motors for generating employment and growth and for diversifying the often mono-sector economic structure.

The focus is laid on the SMEs’ requirement for access to finance to prosper as one main element of successful business development. This is due to the fact that SMEs and especially start ups still perceive difficulties associated with limited access to finance for their business projects.

There is a need to fully integrate local financial institutions on the one hand and to better link regional and national support programme on the other hand since both are main sources of funding. Although in some cities local SME support partnerships are working quite successfully, there is still a need for improvement and support structures are far from being mainstream in all European cities.

Key point of focus

One important aspect will be to improve SMEs' and innovative economy's access to finance to start up and prosper. Due the importance of financial support the involvement of local financial institutions will be crucial as well as the access to SME support schemes on regional/national level. The support structures will contain attractive financial and innovative non-financial instruments.


FIN-URB-ACT will interlink the integrated urban development approach and the renewed Lisbon strategy for growth and jobs, which sustantially increases the need to fully unlock the growth and jobs potential of SMEs and make full use of their innovative capacities. Thus, FIN-URB-ACT adds value to EU policies.

Being an implementation oriented project, focus will be laid on a practice oriented transfer of gained knowledge to the local level and on its application within Local Action Plans (LAP). On local level the partners will set up or improve their partnership within the Local Support Group (LSG).

Outputs include overall capitalisation and information material for all interested bodies. These can be amongst others a good practice compilation, a guidebook, thematic studies and policy recommendations for the local as well as the regional and European level.

A word from the lead partner

What motivates you to be part of the URBACT adventure ?

In first instance, we, the City of Aachen, are participating in the project FIN-URB-ACT since its aims and goals are exactly suiting our demands. As a city composed of small and medium sized enterprises we are strongly interested in fostering those SMEs and innovative economies and in improving local support structures. Moreover the international and European scope of the project is most interesting since networking and the exchange of strategies and ideas is necessary, especially today and within a growing and merging Euroepean Union.

Who would you like to benefit from the work achieved in your project?

In accordance to the project's goals, we would like the SMEs and innovative economies located within our partner cities and in Aachen to benefit from this project. By developing and exchanging new economic support strategies, structural changes and transformations, SMEs suffer from, are supposed to be compensated. In addition, this project and its outcomes are intended to serve as a model for strategies and problem-solving approaches for the other cities harbouring SMEs and innovative economies that are not participating in the project.