Browsing Category: "Economic Development"
Actual issues of the economics development in Murmansk region
Mr. D.F. Larichkin, doctor of economic sciences,
Director of Institute of Economic Problems
at Kola Scientific Centre of Russian Academy of Sciences
The potential of natural resources in the Murmansk Region is large in volume and unique in the quality of raw materials. The variety of natural resources, cross border location, well-developed industrial complex and transportation network with large sea ports in Barents and White seas determine the important strategic and geopolitical significance of the region not only in Russia, but also on the world-wide level.
The economics of the region is largely based on utilization of the potential of natural resources, the basic role in which is taken by mineral, raw material and biological (fish) resources, which defined its industrial specialization, presented by export-oriented mining, metallurgic and fishery complexes. The region produces significant volume of all-Russian production of nonferrous metals (nickel, copper, cobalt, platinoids, and aluminum), iron ore, apatite and nepheline concentrates, the major part of which is exported, which positively effects the economics of the region.
At the same time in the years 2000—2001 there appeared a clear tendency of the decrease of the pace of economical development of the region, which is largely explained by the deterioration of the source of raw materials.
In the structure of the industrial production in this time the predominant position is still taken by nonferrous metallurgy, though its share in sale structures has significantly decreased almost by 10 per cent by the year 2000. Approximately the same decrease of sale share has been recorded in the fish industry, which has lost the second place in the structure of regional industrial production, which it had in the year 1991.
The most significant growth (more than in 3 times) of share in sale structure has been recorded with power industry, mainly due to increase of tariffs, which are still lower in the region that in other North-Western regions. The chemical industry and ferrous metallurgy have been gradually developing in the region as well.
Traditionally high black ink of regional foreign trade is increasing due to the growth of export supplies while the import is relatively stable. The coefficient of import currency coverage, which in the year 1995 was 2.8 and in the year 2000 — 5.6 has reached 7.5 in the year 2005. The tendency of the source potential of production complex of the region. The slowing down of industrial production, low level of income and social security of the population stipulates for the decrease of the number of regional population at the expense of natural decrease and especially, migration outflow which affects the future trends of economic development.
Summarizing the above said, one can formulate the main problems and tendencies of the development of economics in the Murmansk region.
In contemporary conditions the main factor, determining the opportunities of development and economical growth of the regional economics, is the competitive ability of separate fields or economy complexes and the creation of conditions contributing to the implementation of the advantages available in the region.
One of the factors, which forms the sustainable competitive advantages of the region and its enterprises is the creation of clusters with high competitive ability, that is groups of interrelated firms and institutes, which allow to use the region as a unique agglomeration environment, improving both the effectiveness of every participant and its sustain ability in the framework of modern contemporary network economic multilevel structure.
Previous lack of own fuel sources on the territory of the Murmansk region, especially of such high performance as oil and natural gas significantly limits the development of many productions and economics on the whole. This is why the decision on the creation of non-profit organization “Association of Suppliers of Oil and Gas Industry “Murmanshelf for the implementation of the projects on developing of Stockman gas-condensate field and other fields of the Arctic shelf can be seen as a very significant event and initial phase of forming of industrial cluster, able to improve the competitive advantages of the region, give a new powerful impulse to the development of economy in the region.
The main effects which occur when forming clusters;
—decrease of transactional expenses;
—opportunity to provide competitive advantages;
Potential consequences of project implementation in the field of shelf oil and gas resources for the Murmansk region
Positive
— Creation of new workplaces in the period of investment and exploitation project stages
— Growth of load (income) of local contractors, suppliers and services for the project needs
— Growth of intakes into regional budget, which increases the opportunities for expenditure of the funds for social needs
Risks
— Increase of the environment load and risk of emergency pollution with economic and social damage
— Increase of load on the existing network of the industrial and social infrastructure, which can limit the access of local customers
— Growth of prices for services and landed estate
— Intensification of differentiation of population by income and related growth of social tension
— potential of mutually profitable business long-term relations;
— profit based on the theory of industrial and financial management.
It is necessary to take into consideration both positive consequences of development of oil and gas resources of Arctic shelf for the economics of Murmansk region and possible risks and negative effects. The utilization of the Norwegian experiences in solution of similar problems taking into consideration Russian specific character at maximum extent possible is seen as quite valuable at this. The complexity and multiple character of problems and solutions stipulates for the necessity of scientific assistance and well-coordinated work of all the participants of the association.
With the successful implementation of the projects the Murmansk Region can become the growth locomotive, contributing to the development of competitive territorial industrial clusters based on the utilization of fuel and energetic resources of the Barents sea shelf.
The Industrial NORTH #1
PROSPECTS OF ENTREPRENEURIAL DEVELOPMENT TOWARDS ECONOMIC DEVELOPMENT
INTRODUCTION:
Good Entrepreneur can create a strong economy. Entrepreneurship is an important facet of industrial growth and development of a nation. It is the backbone of a nation that sets its eyes on maximizing its performance in every field. The spirit of entrepreneurship brings about enthusiasm, persistence and the ability to seek entrepreneurial opportunities that lead to success. A nation’s ability to generate a steady stream of business opportunities can only come about when its people take to entrepreneurial activities. Entrepreneurs are essentially the engines of growth for a nation. There are several factors that go into making a successful entrepreneur, and he or she need not necessarily possess a strong business and financial background. On the contrary, well-conceived and well directed training can always produce an outstanding entrepreneur. In addition, today’s world with its burgeoning population offers limited avenues of employment.
WHO IS AN ENTREPRENEUR?
The entrepreneur as a person brings in overall change through innovation for the maximum social good. Human values remain sacred and inspire him to serve the society. He has firm belief in social betterment and he carries out this responsibility with conviction. In this process, he accelerates personal, economic as well as human development. The entrepreneur is a visionary and an integrated man with outstanding leadership qualities. With a desire to excel, he gives top priority to Research and Development. He always works for the well-being of the society. More importantly, entrepreneurial activities encompass all fields / sectors and foster a spirit of enterprise for the welfare of mankind.
OBJECTIVES OF ENTREPRENEURSHIP
To create entrepreneurial awareness to the young generation and motivate them to establish small and medium enterprises To trained up the prospective new and young entrepreneurs to maintain and run their enterprises successfully. To enabling the entrepreneurs about the global production and market strategy in context of market economy To encourage the entrepreneurs to establish pollution free enterprises
IMPORTANCE OF ENTREPRENEURSHIP
Entrepreneurship promotes capital formation by mobilizing the idle saving of the public. It provides immediate large-scale employment. Thus it helps to reduce the unemployment problem in the country, i.e., the root of all socio-economic problems. Entrepreneurship promotes balanced regional development. Entrepreneurship helps reduce the concentration of economic power. It stimulates the equitable redistribution of wealth, income and even political power in the interest of the country. It encourages effective resource mobilization of capital and skill which might otherwise remain unutilized and idle. It also induces backward and forward linkages which stimulates the process of economic development in the country. Entrepreneurship also promotes the country’s export trade, which is an important ingredient to economic development.
ENTREPRENEURSHIP IN INDIA
“Entrepreneur is one who always searches for change, responds to it, and exploits it as an opportunity”. Entrepreneurs innovate and innovation is a specific instrument of entrepreneurship. It creates resource because there is no such thing as a ‘resource’ until man finds a use for something and endows it wit economic value. India is second among all nations in Total Entrepreneurship Activity as per the Global Entrepreneurship Monitor Report 2002. Over the years India has concentrated more on the development of the institutions that support private enterprise by building a stronger infrastructure to support it. The Government has encouraged entrepreneurship by providing training and also the facilities to succeed, particularly in the rural areas. Moreover, in India, the post-liberalization and globalization era has brought with it a growing middle class – roughly estimated to be 250 million – and rising disposable incomes. This presents a huge potential, which if tapped can be a veritable gold mine. Entrepreneurs can make the best of this by catering to various demands of this segment.
QUALITIES OF AN ENTREPRENEUR:
The important qualities of a successful entrepreneur are as follows,
Total commitment, determination and perseverance Drive to achieve and grow Opportunity and goal orientation Taking initiative and personal responsibility Persistent problem-solving Realism and a sense of humour Seeking and using feedback Internal focus of control Calculated risk taking and risk seeking Low need for status and power Integrity and reliability
CHALLENGES TO THE ENTREPRENEUR IN INDIA
Entrepreneurship plays a vital role in economic development through creation of utilities and generation of employment within a short period. It has been accepted that entrepreneurship is an economic venture by which the people can be changed to move upwards within a short period of time, especially from the point of view of employment generation. Out of the economically active population of 550 million at present only 27.53 million people have had the benefit of employment in the organized sector. 249.76 million are either employed or under employed in the unorganized sector, while the services of the remaining 272.71 million remain unutilized by the entrepreneur. As a result over 29 % of the population continues to suffer under the clutches of poverty and hunger.
The founding of new firms has always been a focal research issue in the entrepreneurship research tradition. In order to support the founding of new firms, it is important to know who starts new firms, in what kinds of situations, and for what kinds of reasons. The early research on entrepreneurship strove to identify the psychological characteristics, or traits, of those people who start new firms. One problem of this ‘trait’ line of research was that it focused on ex post situations, interviewing entrepreneurs who already had started a firm.
ENTREPRENEURIAL OPPORTUNITIES
a) Participation in International Fairs/Exhibitions
With a view to ensure that exporters from small scale sector exhibit their products in the International Exhibitions, required assistance & support is provided. Expenditure on account of space rent, handling and clearing charges, insurance and shipment charges etc. are met by the office of the Development Commissioner (Small Scale Industries) under one of the plan schemes. Participation in the named fairs/exhibitions generates large number of Trade enquiries besides certain export orders. It also provides an opportunity to entrepreneurs to display their products in the world market. The basic objective behind this scheme is that entrepreneurs which otherwise are not in a position to display their products may participate in foreign exhibition/fairs so as to promote their exports. Enquiries generated during such exhibitions abroad are disseminated to all entrepreneurs through a net work of field offices of this organization. This strategy has been found to be successful for exporters from small scale sector in identifying new foreign buyers/markets.
b) Packaging for Exports
Packaging standards, techniques etc. training programmes on packaging for exports are organized in various parts of the country. Role of packaging for exports has gained much significance in view of trends in the world markets. The need for better and scientific packaging for exports from small sector was recognized long back. These programmes are organized in association with Indian Institute of Packaging which has requisite expertise on the subject. Basic objective of these programmes is to generate the much needed consciousness in the industry and to educate the entrepreneurs about the scientific techniques of Packaging.
c) Technical & Managerial Consultancy Services
Technical & Managerial Consultancy Services to the entrepreneurs is provided through a net work of field offices of SIDO so as to ensure higher level of production and generation of higher exports.
d) National Awards for Quality Products
With a view to encourage the small scale units for producing Quality goods, National Awards for Quality Products are given to the outstanding small scale units, who have made significant contribution for improving quality of their products. National Awards encourage entrepreneurs to produce quality goods which further enable them to enter into export market.
e) Marketing Development Assistance
Marketing Development Scheme is being operated by Ministry of Commerce under which MDA is given to exporters through FIEO and Export Promotion Councils/ Commodity Boards to plan their marketing strategy for export growth.
f) Promotional Schemes
To meet the challenges of international competition and to promote exports of entrepreneurs, following promotional schemes are also being implemented.
1. Technology Development and Modernization Fund Scheme
2. Quality Awareness Scheme
3. Subsidy for obtaining ISO-9000 quality Certification
4. Process-cum-Product Development Centre
g) Small Industry Cluster Development Program:
A new scheme for technology upgradation for industrial clusters has been started recently. 10 clusters of industries producing different groups in various parts of country have been selected. The scheme aims at diagnostic study of the clusters, identification of technological needs, technological intervention and wider dissemination of information and technology within the clusters. The expenditure involved on pilot plants etc. is to be met on 50:50 cost sharing basis by the Government and the concerned Industry Association of the clusters. The scheme is flexible and provides for smooth sourcing of technology even from abroad.
ENTREPRENEURIAL THRUST OF WOMEN
In India, a majority of women entrepreneurs fall within the age group of 25- 40 years. Most women owners are married. They have a good educational background, with most of them at least graduates, and have an above average record in education and participation in extra-curricular activities. Most have an urban background and have lived in small nuclear families, both before and after marriage. A majority of women entrepreneurs are from Hindu forward communities, with Brahmins being the largest proportion. In the northern part of the country, it is mainly women belonging to communities which have traditionally been in business e.g., Bania or Punjabi Khatri. Among the states, Gujarat, Maharashtra and Karnataka have more women entrepreneurs. These women are either from families which are already in business or have service backgrounds, or they have highly educated fathers or husbands.
CONCLUSION
The entrepreneurship miracle in other country is an engine for job creation, innovation and diversity. In the case of diversity it is observed that women – owned and minority owned business may be emerging growth companies of the next decade. The role of entrepreneurship in global business of developing countries like India is also significant. The wide range of significant contributions that entrepreneurship makes include promotion of capital formation, creation of immediate large-scale employment, promotion of balanced regional development, and effective mobilization of capital and skills.
Irving’S Robust, Economic Development Sector Bodes Well For Local Real Estate
Irving’s strong, local economy, low unemployment rate and healthy real estate market makes it particularly popular for business development and relocation, despite the poor state of the national economy.
The city leaders of Irving recognize the unique opportunity they have in this progressive, dynamic city, and have responded with an array of exciting development projects which will further help to expand this already-strong economy, provide additional jobs, keep real estate sales strong and expand the city’s tax base.
Irving Convention Center
Take for example the Irving Convention Center in Las Colinas, which is currently under construction. The Irving Convention Center, which is part of the Entertainment District Project, is set to open in fall 2010. Built upon a 40-acre tract of land in the Las Colinas Urban Center, as the first phase of a future, mixed-use entertainment complex, the Irving Convention Center will feature over 50,000 square feet of exhibit space, a 20,000 square-foot ballroom and over 20 breakout rooms, each featuring about 1,000 square feet of space.
The Irving Convention Center design, which is under the direction of the Irving Convention and Visitors Bureau, will be home to many, top-notch conventions, exhibitions and meetings, among other things.
Heritage Crossing
Another popular economic development project is Heritage Crossing, which involves the acquisition and development of downtown Irving property. Heritage Crossing, which has, to date, developed over $35 million dollars worth of downtown Irving property, will be a greater source of tax revenue for the city.
Thus far, more than 50 properties have been developed for Heritage Crossing, as well as five, expansive, apartment complexes. Four out of the five complexes are set to be demolished, as are a number of dilapidated family residences.
In addition to generating revenue for Irving’s tax base, Heritage Crossing will further reduce the crime rate in this area and boost property values.
Other projects for Heritage Crossing include a retail townhome project, which is valued at $16 million, and an apartment retail development project, which is valued at $22.4 million.
Water Street Development
The Water Street Development Project
Water Street is a planned development project to be located in the Las Colinas Urban Center. Zoning, plat and site plans have been approved, and plans for the street layout and the first building, which will enjoy a prime, Lake Carolyn location, are in the process of being finalized.
Water Street, which is being developed by Gables Residential, has also been working alongside the Dallas County Utility and Reclamation District to obtain an additional, 1.2 acres along Lake Carolyn.
Gables Residential anticipates that more than 13,000 square feet of retail space will be open by fall 2010.
Once completed, Water Street will boast more than 240,000 square feet of retail space to the Las Colinas area of Irving.
With the continued development of Irving and the Las Colinas Urban Center, the residents of Irving will continue to enjoy a lower employment rate, more tax revenue and an increase in property values.
