PoliciesforHome-Based BusinessDevelopmentandGrowth

Locally fostering home-based entrepreneurship andgrowth

Paris4October 2017LuciaScopellitiHeadofEconomic PlanningUnitMunicipality ofMilan

Milano Contents:

Doing BusinessinItaly:MilanCase

Policiestoimprove theStartupEcosystem ofMilan:

- Incubators &Accelerators- Co-working Spaces- Makerspaces &Fablabs

InnovativeFinancing

StartupCityAlliance Europe(SCALE)

Conclusions andFutureSteps

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MilanoDoing BusinessinItaly:MilanCase

WorldBankranking2017abouteasinessofstartingabusiness(191nationsevaluated):• Australia7th

• UnitedKingdom16th• France27th

• Italy63rd

InItalytheaverage hourly labour cost peremployee ranges from€17.20(SMEs)upto€28.90(corporates)[Source:ISTAT]

• Belgium17th

• Netherlands22nd

Average monthly costs foranofficeinMilan(semi-suburban area)

RealestatemarketinMilanhas thehighest primeofficeandhighstreet retailrents (compared toMünchen,Stuttgart,LyonandBarcelona)[Source:MilanoScoreboard 2017]

Furniture (from2to8people):• €2.580- €6.000+maintenance and

equipment (scanner,pc,ecc)• Officeclean andmaterials (€290- €790)

Location (from2to8people):• €1.100- €2.200:• Rent (€530- €810)• Condo fees (€160- €220)• Internet(€40)

Milano

Barriers toenter themarketforstartups/entrepreuners:

• Difficult operating conditions (technical,bureaucratic,legal,etc)that reducetheir potential impact

• Highcosts• Scarcity ofavailable economic andfinancial resources compared topotential

actors,ideas andinitiatives

Theoldwayofcreatingservicesandregulationsandtraditionaleconomicmodelsandrelationships, donotworkanymore. (Neelie KROESVice-PresidentoftheEuropeanCommission)

Reappraisal ofprevious policies inorder tocreatecommunities that areable toliveandcompeteinanincreasingly changing environment.

DoingBusinessinItaly:MilanCase

Milano DoingBusinessinItaly:MilanCase

StartupsinMilanfrom2012– 2017(16% oftotal inItaly)

86,795NewEnterprises 1,075InnovativeStartups

Milan:In thelastyear,23,689newfirms (+1.5%)[Source:CameradiCommercio,MilanoProduttiva2017]

MilanoTheStartupEcosystem ofMilan is a large,active andvibrant ecosystem.

AdamBregu,BocconiUniversity,2017

DoingBusinessinItaly:MilanCase

Milano

Municipality’sObjective:promotingentrepreneurshipandoccupation bymeetingthenewdemands fromthelabourmarketandtherapidevolvingeconomicenvironmentinMilan.

Focus:Boostingthestrengthsoftheterritorywithinnovativeformsofworkespeciallyforyoungprofessionals,freelanceworkers,andworkersintheadvancedtertiarysector

Dec 2014Guidelines forMilanosharing city were approved bytheMunicipality*

Milanosharing city:Actionplan:

Setupanecosystemthatfostersthedevelopmentofnewideasandknowledgeexchange,thecreationandenhancementofnewskillsandbusinessstartup

Enhancingcommonassets,sharingofworkspaces,andequipmentbydifferentprofessionalactorstoencourageopportunitiesinstartingout

*http://www.milanosmartcity.org/joomla/sharing-economy/milanosharingcityhttp://sharingcities.wixsite.com/milano

PoliciestoimprovetheStartupEcosystemofMilan

Milano

5 mainactions TheCityOfMilanconductstosupport,improve &develop the

startupecosystemofMilan

InternationalizationProjects

Ecosystem NetworkProjects

VerticalSector(SharingEconomy,Manufacturing4.0&SocialInnovation)

InnovativeFinancingProjects

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4 5

DirectSupport ToFinanceStartups3

PoliciestoimprovetheStartupEcosystemofMilan

Milano

Initiatives ofsharing economy bytheMunicipality ofMilan:

Incubators&Accelerators

Co-workingSpaces

Makerspaces&Fablabs

Ecosystem NetworkProjects:

MapofMilan:

Milano Incubators &Accelerators

Todevelop andstrengthen thenetwork ofthestartupecosystemofMilan,TheCityOfMilanhascreated,developedandinvestedinalargevarietyofprojects

€1.5+millioninvestedinIncubators&Accelerators

Polihub – PolitecnicodiMilano:ICT/Web/HighTech

Fabriq:SocialInnovation

BASE:CreativeStartups

Speed MiUp– CameradiCommercio&BocconiUniversity: Managment

MilanoLUISSHub ForMakers &Students

Alimenta2Talent(PTP):Agrifood &Innovation

Milano Co-working Spaces

3MEASURES (2013– 2016):

201Supported Coworkers€204,155

23%Communication

29%Design

32%Services

9%ICT

7%Other

64Co-working Spaces€ 280,633

Financialhelpforco-workers(upto€1.500,00peryear)

Officiallistofsuitablecoworking spacesinMilanwithdefinedstandardsdevelopedanddefinedbytheMunicipality

Co-funding tocoverthecostsoffittingoutthecoworking spacesonthelist,byindividualsorbusinesses

Co-working is awayofworking which implies ashared working environment inorder toincrease opportunities arising frompeople withdifferent professions andskills collaborating.It is aninnovativeandfunctional response tothechanginglabour market.DGC 1392/2017

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Co-workingSpacesStatistics:

Milano Example:Fabriq:

Options Monthlycharge2/3Places €4004/6Places €600

Offices

IncludedServices:WiFi,kitchen,garden,parking,bicycle,cabinet,

storage,legaldomiciliation

Option Charge Includedservices

Dailyentry €10WiFi,kitchen,garden,bycicleparking,shelf

Monthlyrent €120

WiFi,kitchen,garden,bycicleparking,shelf,cabinet,storage,legaldomiciliation

Openspaceworkplace

Costs forentrepreneurs andcoworkers at:

workstations

workstations

Milano Co-working:Survey

21%

3%

76%

Previousrequesttootherorganizationsforfinancialsupport

Yes

Partly

No

17%

31% 21%

31%

WorkersclassificationAFTERtheMunicipalityhelp

CreatenewbusinessBecomeselfemployedSamejob

Other

Survey submitted tothe201coworkers who benefited fromthesupport bytheMunicipality

Home-basedbusinesses 34%66%

50%

Milano Makerspaces &Fablabs

Supportinginnovationinthedigitalmanufacturingprocessthroughtheimplementationof:§ “opencommunityspaces”whereacademics,researchers,professionalsand

entrepreneurscollaborate§ Openlabfullyequippedwithhightechmachinery

Cofunding tocoverthecostsoffittingoutthe spacesonthelist,byindividualsorbusinesses

10 Fablabs inour qualifiednetwork

Officiallistofsuitablemakerspace/fablab inMilanwithdefinedstandardsdevelopedanddefinedbytheMunicipality;

€125,496

They areanopportunity foracademics,researchers andbusinessestocollaboratemoreefficiently thus stimulating thecreation ofentrepreneurial ideas.DGC 1392/2017

2 MEASURES

Milano InnovativeFinancing

Crowdfunding:Supporting&financingsocialimpactstartups

Promotetheactiveparticipationofcitizens

16 Projects Financed

Microcredits:

1,396 Recipients OfMicrocredits

Givingcredittothosewhocan’tnormallyaccessit.

€3,400,000worthofMicrocreditsgiven

€656,549Invested

Milano Crowdfunding

18Startups OnOnlinePlatform 16Startups Fully Financed (88.8%)

Crowdfunding Campaign:€333,136

Municipality OfMilan: €323,413

Total: €656,549

Startups fromCrowdfunding:

Gallab

Budget: €50,000Crowdfunded:€25,225

Sicurezzad’Argento

Budget: €44,000Crowdfunded:€22,765

ChildExplorer

Budget: €10,000Crowdfunded:€5,255

Milano Crowdfunding:Survey

Survey submitted tothe16winning projects:

Home-basedbusinesses

55%

45%

WorkersclassificationBEFOREtheMunicipalityhelp

Selfemployed

Employed

9%

82%

9%

WorkersclassificationAFTERtheMunicipalityhelp

Create new business

Same job

Other

60%40%

33%

Milano Crowdfunding Example:

Fromtheproject toaninnovativestartup

OnlinePlatformforpeertopeer lunch:

A Sochef (inactive people)opens uphis/herkitchen at lunchtimeAcustomer (usually workers)canenjoy ahomemademeal during his/her workday Targetmassmarket

- 17mlinactive people (120mlEU)- 12mlpeople who have lunchoutside home

everyday (68,8EU)

Launched:10March 2017

928Registered people114SoChef

( June 302017)

SoChef Profiles:A B C

Age 20-30 30-50 35-64Education undergraduate graduate Junior High schoolOccupation student unemployed housewifeRevenue < € 5.000,00 < € 5.000,00 € 0 – 10.000 Aim earn money Earn money Earn money, make freindsLanguages ITA, ENG ITA, ENG ITAHobbies sport, cinema,

books, girls/guyssport, travelling, cinema

cooking, TV, reading magazine(gossip)

Contacts FB, Instagram FB, Instagram FB, Instagram, Youtube

Value/belief/ features

friendship,leisure time

culture, friendship, well manners

camily, friendship, do the cleaning

Crowdfunding Campaign:€20.032,00Municipality OfMilan:€19.968,00

Milano StartupCityAlliance Europe(SCALE)

• SCALEunites19Europeanstartuporganizationsfrom19EuropeancitiesforthebenefitofstartupsinEuropewantingtoscalenotonlywithinEuropebutalsotoothercontinentsaroundtheworld.

• SCALEhelpsestablishatransparentEuropeanstartupecosystemthatenablesstartupstoscaletoforeignmarkets.

• SCALEconnectsandfortifiesthesupportivestructuresthatarealreadyinplace,bringingtogetherEuropeanmunicipalgovernments,universities,corporatesandfastgrowingstartups(scale-ups).

• SCALEenablestheexchangeofknowledge,connectionoforganizations,EuropeansoftlandingprogramsandsoftlandingprojectsintheUSandothermarkets.

Milano

StartupCityAllianceEuropeWebsite:

• TheSCALEwebsiteenablesstartupstoselectthecityitwantstoscaleuptoandaccessthepracticalinformationonhowtosetupandgrowastartupinthatcity.

StartupCityAlliance Europe(SCALE)

Milano

Newresources allocated forsupporting newCo-working Spaces &Fablabs

Strengthen theorganizations that provide services toentrepreneurs inMilan.Collaborating withUniversities andother players tostrengthen theecosystem.

According tothecoworkers andcrowdfunding recipients,most ofthem arehome-based entrepreneurs.

Construct asurvey tothese home-based entrepreneurs tobetterunderstand what they need andarelacking.

According tothese results andother research evaluate totargethome-basedentrepreneurs

Develop theSCALEwebsitetoprovide practical informationandskills tonewentrepreneurs inMilanandabroad.

Conclusions &FutureSteps:

Milano

LuciaScopelliti

lucia.scopelliti@comune.milano.it

Thank You