Random thoughts on municipal economic development through enterprises and entrepreneurship

1. Randomthoughts on municipaleconomicdevelopmentthroughenterprises and entrepreneurship Dr. Kari Kankaala Director, Urban and Economic Development City of Tampere

2. Who is this guy talking here? • Director for economic and urban development with the city of Tampere (2009- ). • responsible for city land policy and development, housing, sustainable development, employment services and local business and economic development including tourism • Director for economic development with the City of Tampere (2007-2009) • Prior to joining the city career in small business development and tech transfer • 2002-2007. CEO of Professia Ltd, a consulting and development company • creating, executing and evaluating services and structures related to regional innovation systems, also in South Africa, mostly small bus devevelopment • 1998- 2002. Director at Sitra, the National Innovation • technology transfer and VC investments in high tech start-ups. • 1989- 1998. • Engaged in technology transfer activities both at universities and in the private sector in Finland and in the US. • An expert in several international, national and regional innovation related working groups and committees. • Dislocated physicists, holds a Ph.D. in theoretical physics.

3. Challenges of Tanzanian economy(from ”Tanzania Development Vision 2025”) • The economy has remained largely untransformed. Thus agricultural productivity is low and erratic. • Productivity level in other sectors has equally remained low. The available domestic resources have not been adequately mobilized and effectively utilized to promote development on a robust and sustainable basis. • This low level of productivity also reflects a low degree of creativity and innovativeness including the low level of utilization of science and technology. • The structure of the economy has continued to be dominated by primary production, thus making the economy seriously vulnerable of frequent changes in international commodity market conditions and newer technologies which significantly use less raw materials.

4. Paramountissues – localpossibilities(from ”TanzaniaDevelopment Vision 2025”) • The on-set of economic pluralism. • Exposure of the limitations public sector-led development • The recognition of individual initiative and the private sector as the central driving forces for building a strong, productive and renewing economy • State welfare responsibilities more focused on cost-effective ways of enhancing access to and the quality of social services. • The fast changing market conditions and technological developments • The determinants of international economic relations are being influenced by post-cold war geopolitical factors. • Nation-state economic behavior is being transformed by globalization and regionalism, trends which undermine inward looking economic nationalism

5. Points • Business followseducation and skills • Gettingeducationalinstitutionsinvolved is a key for long termeconomic and business development and success • Small businessesare the backbone of the economy • Largefirmsgetvisibility; smallfirmsare the backbone • Donorscan help butarenot the solution • By gettingenterprises (in bothcountries) involved for business reasonsbypassesdonorproblem • Business cannotwait for the government ... • Companies – Now • Education – Soon • Government (alsolocal) - Maybesometime … sotheywillgetthingsgoing

6. Why entrepreneurship • Difference between job and wealth creation • Basis for wealth creation • If businesses succeed, jobs will be created • An element in dignity and self esteem • ”Yes, I can do it!” • An incentive for learning and education • Peer experiences; ”She did it! I can do it, too!!” • Business follows skills and education

7. Crux of local business development • Local business development is team work • Entrepreneurs and enterprises – actors • Educational institutions – content and time span • Local government – mediator, provider • Open to all, especially to • Women • Young and eager

8. The role of local government • Key driver for development • Provides a long term frame for development • Often the only one to take the first step • Neutral • Network hub

9. Concrete local gov’t measures • Promotion of entrepreneurship • Training and otheradvisoryservices • Networks • customers, supportservices, educationalinstitutions, technologyproviders, international connections … • Premises, officespace and land • Telecom and otherinfrastructure • (Small, symbolic) financialsupport • (Local) taxcredits

10. Concretemeasuresfrom international networks • Business collaboration between south and north • Better than government collaboration because of mutual business interest - > long lasting • Attracting (Finnish) companies to relocate to Africa/Tanzania • Revenues and jobs for Tanzania • Business partners for local companies • New business areas and partners for Finnish firms

11. Small (business) is beautiful. Thank you. Questions? Comments? Contact info kari.kankaala@tampere.fi Tel + 358 50 351 3020