André J. de Groot

projectmanager OBR / Kansenzones Rotterdam

Economic vision 2020

Focus on:• Mainport + industrial complex

• Medical cluster (Erasmus MC)

• Creative industries (AV, Multimedia)

‘Rotterdam continues, on the pathway to a balanced city’

Threat:• Growing group of

underprivileged (mainly ethnic) inhabitants

Extraordinary problems ask forfive action plans

10.12.04-4

Five cohesive action plans

1. Immigration, integration and citizenship

2. Stricter residence policy

3. Tackling nuisance, illegality and crime

4. Care, help and counseling

5. Specific and structural investments in economic development -> This includes Kansenzones (Economic opportunity zones)

Kansenzones: the area

Kansenzones: statistics

• 86.000 inhabitants from over 80 nationalities

• On average 60% immigrants, but in some parts over 80 % immigrants

• 40.000 habituated addresses

• ± 2.300 SME entrepreneurs

What does Kansenzones look like?

•Large attractive multicultural market in Rotterdam Feijenoord, twice a week, 60.000 visitors a week•Multicultural shopping streets•Large investment schemes for better houses, safety, youth, attractivity of economic climate and public areas

Kansenzones: statistics

• High percentages of:– Youth– (long-term) Unemployment– Immigrants vs. natives– Crime rate– Poor or no education– Low incomes and low purchasing power– Mobility (25% yearly)– Social housing

FinancialArrangements with

Banks

Communicationand promotion TAX Fund (OZB)

Redevelop Municipal

Real-estate foreconomicpurposes

50% investment premium

SME

Kansenzoneinstruments

ProjectDevelopment

(new instruments)

Budget Kansenzones

State *) 24 millionEntrepreneurs > 24 million Subtotal > 48 million

City council 24 million Total > 72 million

*) De Minimus EU-regime (max. € 100.000/entrepeneur)

Kansenzones partners:

• Municipal Tax Services• Social- and employment services• City planning• City services• Borroughs of Rotterdam• Market parties (banks, intermediaries,

etc.)• Schools

Current state of Kansenzonesfirst year

• Nearly 500 requests for investment premiums from SME entrepreneurs (10% of total SME-population):– > € 23 million investments by entrepreneurs– > 150 requests already granted in all kinds of

SME sectors,– mainly established entrepreneurs instead of

new comers as expected

1. Investment premiums for entrepreneurs

Current state of Kansenzones

Transforming primary school building into a state of the art business center for 30 young starting entrepreneurs, with extra business support services: training, coaching, secretarial services etc.

Investment: nearly € 2 million

Ready: summer 2006

2. Redevelopment Municipal Real-estate

Current state of Kansenzones

• Measures entrepreneurs asked for: extra street lightning, attractions for children, bicycle racks, extra safety, publicity en promotion actions, etc.

• Stop & Stop: free parking time for shoppers

• Shop & Win: promotional action

• Image campaign to promote the South of Rotterdam

3. OZB tax fund

Expansion options for the Kansenzones project

1. Area expansion– Expansion outside Rotterdam South

• Risk of diffusion

– Expansion in Rotterdam South

2. Adding new instruments– Social Welfare– Education– Stimulate qualification for the labour market

for riskful youth groups together with schools and market parties (BOP)

Sustainability project resultsWhat to measure and how to measure

1. Active monitoring on results participating entrepreneurs

2. Developing a monitor system to measure the results on the long run (input/output, cost effectiveness, etc.)

3. Generate ideas / new instruments to improve the cost effectiveness for tackling the social-economic problems in socially weak borroughs