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: Aloja town and parish Staicele town and parish Brīvzemnieku parish Braslavas parish Area: 626.59 km 2 Population: 5536 (as of 01.01.2015.)
Dynamics of enterprise registration Type 2011 2012 2013 2014 2015 TOTAL CURRENTLY Entities 22 14 12 18 8 74 478 Sole Proprietorship (SP) 3 0 0 1 0 4 18 Individual enterprise (IE) 0 0 0 0 0 0 21 Limited Liability 18 14 12 15 8 67 144 Company(LLC) Cooperative society (SC) 0 0 0 0 0 0 9 Farm 1 0 0 2 0 3 286 Organisations 6 4 1 6 0 17 54 Congregration (new) 0 0 0 0 0 0 1 (CONGN) Congregation (CONG) 0 0 0 0 0 0 3 Society (SOC) 4 3 1 5 0 13 46 Foundation (FND) 2 1 0 1 0 4 4 Total 28 18 13 24 8 91 532 Source: Lursoft 2015,ER
Company registration and liquidation dynamics in Aloja municipality Number of enterprises Reg. Reg. Reg. Liq. Reg. Liq. Liq. Reg. Liq. Liq. Years 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
Enterprises in Aloja municipality Enterprises in Aloja municipality in accordance to legal forms of entrepreneurship Sole Proprietorship (SP) Individual enterprise (IE) Limited Liability Company (LLC) Cooperative society (SC) Farm Source: Lursoft 2015,ER
Most common types of activities in Aloja municipality 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 Source: CSB 2015, ER
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
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
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
Entrepreneur survey results(3) Number of employees in the enterprise − Number of employees − − − Number of enterprises
Entrepreneur survey results(4) Forms of Respondent enterprises LLC Farms Self-employed
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
Entrepreneur survey results(6) Business development opportunities in municipality Very good Good Moderate Bad Very bad No opinion 73% of respondents assess their business development opportunities in Aloja municipality as moderate, good or very good!
Entrepreneur survey results(7) Over the past two years in the company... employees Remained Number stable o Increased of Decreased Turnover Remained stable h Increased Decreased Remained Profit stable h Increased Decreased Number of enterprises 47% of enterprises have incresed their profits
Entrepreneur survey results(8) In the next 3 years the entrepreneurs plan to... Reduce employe No opinion the Nr es of No Yes Increase the Nr of employe No opinion es No Yes down the Narrow entities operatio No opinion ns No Yes Maintain operation No opinion entities current level s at No Yes Expand No opinion entity’s operati ons No Yes Number of enterprises 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
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!
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% of enterprises; lack of current assets for 46% of enterprises; difficulty to get a loan/attract other financial resources for 40% of enterprises; Low demand for goods and services produced for 34% of enterprises.
Entrepreneur survey results(11) Main obstacles that hinder the development of enterprises in Aloja municipality : bad lack of infrastructure, qualified mainly roads labour small insufficient number of exchange of population, lack of information low premises and between local purchasing land government and power entrepreneurs no common strategy for the business support in the municipality
Entrepreneur survey results (12) The main factors required for the enterprise’s growth Equal competition Modernization Increase in the customer number Tax incentives Availability of financial resources Motivated and qualified labour Availability of land and buildings
Entrepreneur survey results(12) Activities that definitely need to be carried out in Aloja municipality 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 Entrepreneurs
Entrepreneur survey results(13) Recommendations for Aloja monicipality council Establish a business incubator Promote language Ensure the learning availability Involve local of legal producers in advice Create an tourism advertising routes Encourage campaign, a residents to video about the activities that region, can create new entrepreneurs Promote local working-places companies, Organize their seminars, production in discussions, webpage and study visits elsewhere
Entrepreneur survey results(14) Entrepreneurs need Financial consultant consultations in: Tax consultant Lawyer Marketing consultant Engineering specialists Project Manager Consultations on EU fund attraction
Entrepreneur survey results(15) Economic specialization in Aloja municipality consists of Timber Agriculture processing Food production
Entrepreneur survey results (16) ES funding Entrepreneurs need seminars, lectures on.. Business support institutions and programs Taxes Business plan and marketing strategy development Sales promotion Marketing and branding Human resource management
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%
Entrepreneur survey results (18) Infrastructure that is required for the development of enterprises, but is not available Everything is available Land offers Infrastructure Access-roads and communications Industrial areas Telecommunication and IT Power supply Solid waste management Water supply, sewerage Building, premises supply Motorways Enterprises
Thanks to entrepreneurs for responsiveness! Baiba Birzgale Business consultant Alojas Municipality council Phone: 0037125749131 baiba.birzgale@aloja.lv
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