Public Authorities for Entrepreneurship: A management approach to execute competitiveness policies

Abstract

Decentralization, globalization and European Union cohesion and competitiveness agendas have shifted the focus of development policies from the central to the regional and local levels. Most studies on economic development are informed by macroeconomic and entrepreneurial theories, the normative implications of which are unclear for public authorities attempting to enhance competitiveness and entrepreneurship in their communities. This paper discusses the centrality of implementation efforts for the effectiveness of regional and local competitiveness programmes and policies. Striving to capture the challenges posed by the international literature, the paper presents a managerial approach, developed under an inductive–deductive method grounded in some Italian cases of entrepreneurial development. The intention is to provide a reference point for regional and local public managers whose task it is to select and execute actions and instruments to support businesses' start up and growth.

Key words:

• Competitiveness
• SMEs
• execution
• local authorities

Notes

The EU budget is available at http://ec.europa.eu/budget/figures/fin_fwk0713/fwk0713_en.cfm#cf07_13 (accessed on 27 May 2012).

The term local is used to refer not only to local level stictu sensu but also to regional level.

This means the mere use of resources instead of their allocation in ways really able to improve the productivity of companies and the attractiveness of territorial areas, which is typical of an investment approach.

Personal communication of the President of the Reggio Emila Province.

Where three indicates the number of phases and E stands for ‘execution’, i.e. policy implementation. The term ‘3E’ is also reminiscent of the conditions of efficiency, effectiveness and economicity on which the public administrations actions should be based for the achievement of institutional objectives.

For the purposes of this article, the main elements of the management process implemented will be described with reference to the more general process presented above (section ‘A Management Process for the Implementation of Entrepreneurial Policies at the Local Level: The 3Es’) and to start-ups support, without entering into a detailed discussion of all the actions executed.

Among the interventions identified by and within the board, the main were: unemployment and family benefits, training, female micro-entrepreneurship development, guarantees to favour the access to credit for businesses, real services, red tape reduction and administrative legality and transparency.

The ten business ideas were focused on the following businesses: vegan food production; a mobile phone recharge system; software for business and automotive sector; biomass and wind energy generation; healthcare devices technology.

Presentation by Councilor Bianchi at the closing convention of the Re'up project, Reggio Emilia, on January 20, 2011.

As reported by the President of Young Enterpreneurs Association of Pavia.