JSC “Severstal”

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JSC “Severstal”: "The non-profit organization “Urban development agency”

Cherepovets, RussiaCherepovets, Russia
Year Founded:
1999
Organization type: 
hybrid
Project Stage:
Scaling
Budget: 
$500,000 - $1 million
Project Summary
Elevator Pitch

Concise Summary: Help us pitch this solution! Provide an explanation within 3-4 short sentences.

The non-profit organization «Urban development agency» is a JSC «Severstal» project in the sphere of corporate charity which performs functions of small and medium business support in a single-industry city of Cherepovets in Vologda region.

WHAT IF - Inspiration: Write one sentence that describes a way that your project dares to ask, "WHAT IF?"

What if the partnership project of business and authorities together with the city-forming enterprise on small and medium business development i
About Project

Problem: What problem is this project trying to address?

The main problem of Cherepovets as a mono-city which has a city-forming enterprise is an underdeveloped small and medium-sized business sector. This causes negative effects on the whole economy of the city. Only small and medium enterprises have the possibility to fill market niches in time as well as implement innovations and therefore immediately create new jobs.

Solution: What is the proposed solution? Please be specific!

The Agency creates favorable conditions for entrepreneurial development in Cherepovets.It is an example of successful use of public-private partnership mechanism when the giant company and municipal administration develop a strong support and consolidation of small and medium business (SMB) in the mono-economic city These are directions of the Agency activity: 1)improving conditions for SMB development 2)financial inclusion of SMB 3)property support 4)consultancy and information support 5)supporting SMB in the sphere of staff training, retraining and personnel development 6)entrepreneurship promotion 7)assisting in competitivity improvement and promoting SMB production, developing the investment activity of entrepreneurship.
Impact: How does it Work

Example: Walk us through a specific example(s) of how this solution makes a difference; include its primary activities.

The business development is influenced by the innovative project «Electronic business cooperation» which is an integrated information area where large enterprises place their orders for SMB. More than 40 companies of the region participate in the program, over 200 business negotiations had been held, 15% of which had ended with the signing of contracts. In 2013 300 small and medium-sized companies in Cherepovets became suppliers of JSC «Severstal»

Impact: What is the impact of the work to date? Also describe the projected future impact for the coming years.

There are about 50000 people occupied in the sphere of SMB, i.e. every 6th citizen. 345 SMB entities have made use of the financial support. The program is implemented by the Agency, the administration of the Vologda region and Cherepovets Mayor’s office. The financial effect in 5 years is creation and preservation of over 4000 jobs, 998 million roubles of taxes, establishment of the Business education centre in which more than 6000 entrepreneurs underwent training. 1429 enterprises with 3555 jobs were created. Over the last 5 years more than 50000 bookkeeping and legal advice services have been provided. Due to the property support entrepreneurs have the possibility to rent offices on favorable terms. Over 130 entrepreneurs participated in the program. In 2013 over 300 small companies in Cherepovets became suppliers of Severstal due to the project called "Electronic business cooperation

Spread Strategies: Moving forward, what are the main strategies for scaling impact?

The priority areas of the Agency’s activity are: 1)creation of favourable conditions for the small and medium business development 2)assistance in the business environment development in the city’s territory 3)development of international and interregional cooperation 4)integrated support of social entrepreneurship 5)implementation of measures directed on entrepreneurship promotion 6)cooperation relationships development 7)skill improvement and competence development of managers and specialists of small and medium enterprises 8)implementation of new forms of business support
Sustainability

Financial Sustainability Plan: What is this solution’s plan to ensure financial sustainability?

The sources of the project’s financing are fees of initiators (Cherepovets Mayor’s office, JSC «Severstal»), attraction of financial resources from both regional and federal budgets, and internal resources of the non-profit organization «Urban development agency».

Marketplace: Who else is addressing the problem outlined here? How does the proposed project differ from these approaches?

There are no similar projects in Cherepovets.
Team

Founding Story

One of the top-priority goals of JSC «Severstal» social activity is working out of mechanisms and tools for the development of a social potential of presence regions and entrepreneurship support development. The implementation of long-term projects is held within the frame of this activity. The Agency acts successfully in Cherepovets where the city-forming enterprise JSC «Severstal» is located. The Agency was created by JSC «Severstal» and Cherepovets Mayor’s office in 1999 to minimize negative social and economic effects of a financial and economic crisis. Today the main project’s goal is assistance in economic development and social stability in Cherepovets.SMB develop and new jobs are created due to this project.

Team

The staff of the Agency has a well-qualified personnel which consists of 18 people. The director is Oksana Rudolfovna Andreeva who has been holding the post since 2005. The team of the Agency is highly professional, it works efficiently with new projects, moves with the times, offers modern approaches to business sector development in Vologda region and provides the whole range of measures for small and medium business support.