Shaping Local Business Communities The International Conference “Entrepreneurial Cities” Proceedings Edited by Izabela Koładkiewicz Jerzy Cieślik Shaping Local Business Communities Edited by Izabela Koładkiewicz Jerzy Cieślik Shaping Local Business Communities The International Conference “Entrepreneurial Cities” Proceedings Shaping Local Business Communities The International Conference “Entrepreneurial Cities” Proceedings Kształtowanie lokalnych społeczności przedsiębiorców Doświadczenia zebrane w trakcie konferencji „Przedsiębiorcze Miasta” Reviewer/Recenzent Thomas S. Lyons, Ph.D. Lawrence N. Field Family Chair in Entrepreneurship and Professor of Management Baruch College, City University of New York prof. Thomas S. Lyons – ekspert w zakresie przedsiębiorczości, profesor zarządzania w Zicklin School of Business, Baruch College, Uniwersytet Miejski w Nowym Jorku Centrum Przedsiębiorczości Akademii Leona Koźmińskiego (Partner Projektu) ul. Jagiellońska 59 (pokój B-15) 03-301 Warszawa tel.: +48 22 519 22 17 e-mail: sfop@kozminski.edu.pl www.sfop.kozminski.edu.pl © Copyright by Stołeczne Forum Przedsiębiorczości Wydanie I Warszawa, październik 2014 Tytuł Projektu: Stołeczne Forum Przedsiębiorczości Opracowanie, promocja i pilotażowe wdrożenie nowych metod współpracy warszawskiego samorządu i przedsiębiorstw dla skutecznego zarządzania zmianą gospodarczą Numer umowy: UDA-POKL.08.01.02-14-137/11 Program Operacyjny Kapitał Ludzki Priorytet VIII Regionalne kadry gospodarki Działanie 8.1 Rozwój pracowników i przedsiębiorstw w regionie Poddziałanie 8.1.2 Wsparcie procesów adaptacyjnych i modernizacyjnych w regionie Projekt współfinansowany przez Unię Europejską w ramach Europejskiego Funduszu Społecznego ISBN 978-83-7561-462-6 Wydawnictwo Poltext www.poltext.pl Free copy/Egzemplarz bezpłatny Table of Contents Izabela Koładkiewicz, Jerzy Cieślik . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Introduction PART I: ENTREPRENEURIAL CITIES – DIFFERENT DIMENSIONS OF ENTREPRENEURSHIP CHAPTER 1 Mirosław Grochowski . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 The Creative Sector: An Instrument to Strengthen the Economic Base for Urban Development CHAPTER 2 Katarzyna Rostek, Agnieszka Skala. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 A Profile of the High-Technology Manufacturing Sector in Warsaw CHAPTER 3 Magdalena Kubów . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Entrepreneurship in Sports – The Local Dimension. A Case Study of Warsaw CHAPTER 4 Julita Wasilczuk, Krzysztof Zięba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 The Impact of Urban Localizations on the Growth Possibilities for Small Firms 5 PART II: ENTREPRENEURSHIP – A MAJOR CHALLENGE FOR LOCAL AUTHORITIES CHAPTER 5 Lidia Kaliszczak . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 The Development of a Favorable Climate for Entrepreneurship at the Local Level CHAPTER 6 Małgorzata Osińska . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 Hong Kong Was an Island. The Process of Creating a Global City CHAPTER 7 Leszek Kwieciński, Agnieszka Młodzińska-Granek . . . . . . . . . . . . . . . . . . 109 A Systemic Approach to Entrepreneurship on the Regional and Local Level ABSTRAKTY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119 ABOUT AUTHORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127 6 Izabela Koładkiewicz, Jerzy Cieślik Introduction Entrepreneurship is typically associated with the individual perspective, i.e. the everyday struggle of entrepreneurs with the harsh realities of competition, the constant threat of losing financial liquidity or organizational and personnel issues. At the other extreme, we have the macroeconomic perspective, i.e. the institutional environment as well as legal and financial frameworks for the entrepreneurial activity of citizens. Researchers, politicians, but also the entrepreneurs themselves, pay relatively less attention to the local dimension of entrepreneurship, including the specifics of doing business in metropolitan areas. However, in the last several years, a growing interest in this field can be observed on a global scale. A number of reasons have caused this: tt When elaborating long-term strategies for urban development, in a market economy, the city stewards must take into account both the potential and the plans of entrepreneurs regarding sales growth, employment, innovation implementation, etc.; tt Focusing entrepreneurial activity on a relatively small area creates a favorable climate for interaction between creative people with a high potential of knowledge and that think in an unconventional way. This melting pot creates a favorable climate for a specific group defined by Richard Florida as the “creative class” and ultimately results in interdisciplinary, innovative business projects. Furthermore, the existence of a “creative class” is a magnet pulling creative and enterprising entities to cities; tt In the urban development strategy the idea of a “Smart City” is gaining increasing popularity. Broadly speaking, this idea consists in the use of modern information and communication technologies (ICT) to improve the functioning of the local administration and to get citizens and entrepreneurs involved in the decision-making process and the implementation of joint initiatives. Generally, entrepreneurship is an important element of the idea of a “Smart City”; tt The quality of life of urban citizens is greatly influenced, in conjunction with the material, technical and cultural infrastructure as well as the efficiency of the administration, by interpersonal relationships, building trust and a spirit of cooperation, and thus social capital. International experience shows that entrepreneurs who work together can constitute an important component of local urban communities. 7 IZABELA KOŁADKIEWICZ, JERZY CIEŚLIK The above-mentioned factors and the growing global interest in this issue point to the need to address the matter of the local, urban dimension of entrepreneurship in Poland. Hence the initiative of the Conference “Entrepreneurial Cities”, which was organized in July 2014 as part of the Project “The Warsaw Entrepreneurship Forum” by the Kozminski University in collaboration with the Authorities of the City of Warsaw. It brought together Polish and foreign researchers from various research centers. The by them presented research results allowed for a broader perception and a better understanding of the complex issue of urban entrepreneurship, especially in large metropolitan areas, which offer a unique environment for business activity that translates into their further development. This book contains the results of the Conference. A mere glance at the table of contents is enough to confirm that the earlier suggested way of perceiving the issue of entrepreneurial cities is only a first step towards fully understanding it. Each subsequent chapter of the book uncovers further components of the matter at hand. For example, M. Grochowski, in the chapter entitled “The Creative Sector: An Instrument to Strengthen the Economic Base for Urban Development”, outlines the role of the creative sector in the processes of economic development of a city, and indicates the areas of intervention of public authorities, the purpose of which is to mobilize, support development and the effective use of the development potential of this sector. The research results indicate that the basic mechanisms of support from the local authorities include measures to ensure appropriate spaces for activities. Important factors supporting the development of business communities from the creative sector include the presence of supporting institutions as well as mechanisms that enable the transfer of innovation between different sectors (cross-innovation). A factor conditioning the success of the measures undertaken by entrepreneurial cities, the aim of which is to keep the entrepreneurs and their companies, is primarily targeting them well and meeting the needs of the entrepreneurs. The starting point for developing well-targeted measures that meet the needs of entrepreneurs is identifying these needs. However, this is not an easy task. This opinion is supported by, among other things, the analysis of the high-tech manufacturing sector in Warsaw conducted by K. Rostek and A. Skala. The research process described in the chapter entitled “A Profile of the High-Technology Manufacturing Sector in Warsaw” shows that a restriction to only the statistical identification data REGON, which uses the Polish Classification of Activity (PKD), can lead to false conclusions. Based on the REGON databases the Authors identified 1,363 companies that operate in the high-tech sector in Warsaw, but after also incorporating other criteria, this number fell to 137 entities. It should also be remembered that, despite belonging to one sector, entrepreneurs do not constitute a uniform and homogeneous group, but rather a strongly diversified community. Their diversity is also determined by the location of their businesses. These observations are confirmed by, among other things, the research results of J. Wasilczuk and K. Zięba, which they 8 Introduction have presented in their article entitled “The Impact of Urban Localizations on the Growth Possibilities for Small Firms”. Their research study indicates diversity between the profiles of firms and their owners, depending on their location – urban and non-urban. Interestingly, despite the observed diversity of profiles between the studied entrepreneurs, no differences in the growth rate of their companies were detected. According to the Authors, one of the explanations for the observed phenomenon could be the fact that “all possible benefits coming from the urban environment may be balanced out by the accompanying disadvantages”. Another dimension of entrepreneurial cities is identified by M. Kubów in the chapter entitled “Entrepreneurship in Sports – The Local Dimension. A Case Study of Warsaw”. An entrepreneurial city not only creates the right conditions for the development of enterprises, by providing such factors as: space, communication or the presence of support institutions; not only takes measures to understand the communities of their entrepreneurs. An entrepreneurial city should also know how to keep them. Based on the experiences of entrepreneurs that operate in the sports sector in terms of cooperation with the district authorities of the city of Warsaw, M. Kubów indicates that one of the key activities in this area should be maintaining a good cooperation between the representatives of the city authorities and the entrepreneurs. Obviously, the human factor is of great significance in these relations. Moreover, also the network of contacts that the entrepreneurs have established and their ability to see emerging opportunities in the environment are of importance. Whether a city can be defined as entrepreneurial is not only determined by the presence of actively operating entrepreneurs in its area. An important factor determining whether a city is entrepreneurial is also the entrepreneurial orientation of the city authorities. This matter, to a varying extent, is discussed in the respective chapters of our book, but to the greatest extent by L. Kaliszczak in the chapter entitled “The Development of a Favorable Climate for Entrepreneurship at the Local Level”. The focus of the Author was the issue of creating a climate of entrepreneurship by the local authorities of municipalities. Her research results indicate that in the case of the studied sample of representatives of local authorities their governance style requires an evolution – from administration to leadership. However, one needs to keep in mind the limitations that are faced by the enterprising authorities, those that manage entrepreneurial cities or municipalities. These include the legal regulations in force and the current financial capabilities. However, these should not constitute a factor inhibiting the entrepreneurial orientation of the officials of local government units. One of the key dimensions in which their entrepreneurship should be expressed is seeing the opportunities for the development of the city that they manage. An entrepreneurial official and entrepreneur should both share the desire to join forces for the development of the local community, which in turn should translate into improvements in the living and working conditions of all the stakeholders. Their joint and harmonized efforts will also create the foundation for the construction of an entrepreneurial city. 9 IZABELA KOŁADKIEWICZ, JERZY CIEŚLIK Another interesting dimension of the discussion on how to perceive an entrepreneurial city is added by M. Osińska in her article entitled “Hong Kong Was an Island. The Process of Creating a Global City”. There is no doubt about the fact that the transformation of Hong Kong from a small fishing village, located on an isolated island, to a megacity, that currently is the heart of the Pearl River Delta (PRD) region, required entrepreneurial activities. However, it should be stressed that in order to achieve the current huge operations of Hong Kong, the activities of the stakeholders from the local community – the city authorities and the local entrepreneurs – required strengthening and involvement of the central government of China. It should also be added that in this chapter, like in the previous ones, the importance of transport is stressed, as well as that of the networks of communication and infrastructure of the city, as the key factors that increase its attractiveness for entrepreneurs and are thus conducive to the formation of their communities. An important addition to the discussion, aimed at identifying the various dimensions of entrepreneurial cities, indicated by L. Kwieciński and A. Młodzińska-Granek in their article entitled “A Systemic Approach to Entrepreneurship on the Regional and Local Level”, is the need for creating a systemic approach to entrepreneurship and innovation on the regional and local level. In the model that the Authors developed, in addition to traditional factors, such as the technology or economic development of a region, they also included its institutional environment, human resources, entrepreneurial attitudes and available support programs. It follows from the above that urban entrepreneurship can be perceived and studied on many different levels and in various dimensions. There is no doubt, however, that its basic components are the local business communities and entrepreneurial city authorities. Without the collaboration of these actors, the creation of an entrepreneurial city would not be possible. The starting point for this cooperation should be a mutual understanding of each other between these groups. City authorities should start by getting to know the needs and expectations of entrepreneurs, while entrepreneurs should be aware of the possibilities for action that the officials of local government units have and what limitations there are in this respect. We also hope that this book will be an inspiration to undertake further studies of the phenomenon of entrepreneurial cities, and that the obtained results will expand our knowledge in this field. Warsaw, September 2014 Prof. ALK dr hab. Izabela Koładkiewicz Prof. ALK dr hab. Jerzy Cieślik 10 PART I ENTREPRENEURIAL CITIES – DIFFERENT DIMENSIONS OF ENTREPRENEURSHIP część I przedsiębiorcze miasta – różne wymiary przedsiębiorczości Mirosław Grochowski The Creative Sector – An Instrument to Strengthen the Economic Base for Urban Development ABSTRACT The purpose of this article is twofold: to outline the role of the creative sector in urban development processes and to propose the priority spheres of intervention of public authorities, the aim of which is mobilization, fostering development, and an effective use of the potential of the creative sector. The article includes the results of two projects: Creative Metropoles and Cross Innovations, implemented under the Interregional Cooperation Program INTERREG IVC. The Capital City of Warsaw participated in both projects and served as a case study to exemplify the in the article formulated hypotheses and recommendations concerning the role and tasks of public authorities in supporting the development of the creative sector. JEL Classification: H80 Keywords: creative sector, urban development 13 Mirosław Grochowski Sektor kreatywny – instrument wzmacniania bazy rozwoju ekonomicznego miasta ABSTRAKT Celem artykułu jest zarysowanie roli sektora kreatywnego w procesach rozwoju ekonomicznego miast oraz wskazanie sfer interwencji władz publicznych, których celem jest mobilizacja, wsparcie rozwoju i efektywne wykorzystanie potencjału rozwojowego sektora kreatywnego. W artykule wykorzystano wyniki dwóch projektów: Creative Metropoles i Cross Innovations, realizowanych w ramach Programu Współpracy Międzyregionalnej INTERREG IVC, w których udział brało Miasto Stołeczne Warszawa. Sytuację i doświadczenia Warszawy wykorzystano w artykule dla zilustrowania zawartych w nim tez i rekomendacji, dotyczących m.in. roli i zadań władz publicznych we wspieraniu rozwoju sektora kreatywnego. Słowa kluczowe: sektor kreatywny, rozwój miast The Creative Sector – An Instrument to Strengthen the Economic Base ... INTRODUCTION The conditions for the development of cities evolve constantly. Globalization and metropolization shape cities’ external relationships with other cities, urban areas and regional surroundings. Both processes also have an impact on cities’ internal spatial, functional and socioeconomic structures. Cities are concentrations of educated and well-qualified people, who are the key component of their development assets and strengths. These people form the creative capital, which contributes to the development of the creative sector. This sector, to a large extend, determines the attractiveness of cities for inhabitants, visitors and investors. The size and nature of the creative sector depend on different factors, but the leading one is culture. In the development of civilization, creativity based on culture has always had an impact on the paths of urban development. New political ideas and social values, new lifestyles, new concepts of urban space arrangements or new technologies of urban life have always been determined by cultural development, which opens new perspectives and creates new chances and possibilities for development in social, economic and spatial dimensions. Public authorities ought to create proper conditions to capture and utilize creative capital in order to translate it into different forms of entrepreneurship. These conditions include available space to locate firms from the creative sector, the existence of supporting institutions and mechanism for cross innovation – transfer of innovations among different sectors. This article addresses issues related to the above-mentioned conditions in the context of the development of Warsaw. Warsaw is an example of a post-socialist city that faces challenges related to the transformation of the economic base for development. Deindustrialization has contributed to changes in the spatial and functional structure of the city. Social and demographic structures have also evolved. Neglected post-industrial sites are waiting for their second chance. It is claimed in the article that although the role of the creative sector in strengthening the economic base of the city and in urban renewal might be fundamental, in the practice of policy-making and development planning it is still underestimated. 15 MIROSŁAW GROCHOWSKI THE CREATIVE SECTOR The term creative sector is often used interchangeably with the notion of cultural or cultural and creative industries. It refers to a range of economic activities which are concerned with the generation or exploitation of knowledge and information (Hesmondhalgh 2002). It may also be referred to as the creative economy (Howkins 2001, 2001a), and most recently it has been denominated as the Orange Economy in Latin America and the Caribbean (Buitrago, Duque 2013). The European Commission defines creative industries as industries which use culture as an input and have a cultural dimension, although their outputs are mainly functional. They include architecture and design, which integrate creative elements into wider processes, as well as subsectors such as graphic design, fashion design or advertising (European Commission 2012). The definition adopted by the Conference of German Ministers of Economic Affairs says that culture and creative industries comprise all cultural and creative enterprises that are mainly market-oriented and deal with the creation, production, distribution and/or dissemination through the media of cultural/creative goods and services (Söndermann et al. 2009). Common to all definitions is that the activities encompassed by them are considered to be market-oriented and an integral part of the economy. The essence of the activities undertaken by firms and individuals from the creative sector consists in the use of culture as an incentive, inspiration or a kind of unique intangible or material input. Culture might also be seen as a factor that enforces an unconventional approach to the tasks to be performed (process of production, service delivery, spatial pattern of development, functionality of goods, information exchange mechanism, etc.). The creative sector requires a specific environment for its functioning. In 1978 Gunnar Tornqvist developed the notion of a creative milieu, that has four key features: information transmitted among people; knowledge, consisting in the storage of this information in real or artificial memories; competence in certain relevant activities, defined in terms of the demands of an external environment, which can be instrument–specific or region–specific; and creativity – the creation of something new out of all these three activities, which could be regarded as a kind of synergy (Tornqvist 1983). Despite technological development, which leads to “shrinking of space” and makes the geographic location of broadly defined producers and consumers less important, the territorial dimension of the creative milieu plays an important role in the development of the creative sector. The proximity, concentration and variety of actors and their activities – these are the elements that have an impact on the quality of the creative milieu. Like any other industry, the creative sector has its specific characteristics, but in terms of economic logic they all function in the same way. This provides the opportunity to collaborate along similar value chains, which supports cross-innovation. Due to its significance for the development of modern economies, the creative sector has become a major focus of the industrial 16 The Creative Sector – An Instrument to Strengthen the Economic Base ... policies in many countries. There are huge expectations put towards this sector as it is expected to contribute to the industrial renewal of urban, regional and national economies. The rapid roll-out of new technologies means a striking shift away from traditional manufacturing towards high-tech production and services. In order to remain competitive in the changing global environment, cities and regions need to put in place the right conditions for creativity to flourish in a new entrepreneurial culture. CREATIVITY, INNOVATIONS AND THE NEW ECONOMY Knowledge and creativity are essential for the generation of innovations, which are the driving force of modern economies. The creative milieu provides an environment for interactions among different actors, which contribute to the generation of innovations. The terms creativity and innovation are frequently used interchangeably. Sometimes the creative sector is perceived as the one in which (or in whose surroundings) innovations come to life or become development impulses for this sector, leading to the creation of new products and services. The definition of innovation introduced by the European Commission states that innovation is the implementation of new developments into economic practice: new or significantly improved solutions in respect of a product (goods or services), a process, marketing or an organization. An innovative solution may be the result of the research and development activities of the entrepreneur, and collaboration with other entrepreneurs and institutions, or it may be the result of purchasing knowledge in material or non-material form (European Commission 2010). Patented solutions should also be recognized as innovative. This definition clearly suggests that the distinction between creativity and innovation is necessary, and that creativity is a softer category. However, creativity and innovations must go together to make the processes of restructuring economies effective. Culture-based creativity is a condition that must be met to generate and introduce innovations in the sphere of the economy. Culture is a medium that has an impact on economic performance through generating internal and external demand. In development management culture serves as a tool for transmitting values and reaching a balance between tradition and innovation. Culture is also a tool enabling intercultural and inter-generation dialogue. Thus, culture has a direct impact on social cohesion and the creation of social capital, as it helps to integrate various social groups, mobilize them to act for the general good, and incorporate them into public life. From the perspective of mobilizing endogenous resources, culture is also very important. It strengthens territorial identity and the sense of membership in a community. Access to cultural facilities influences the shaping of civic conscience and the competencies necessary to participate in public life. Thus, culture-based creativity is the cornerstone of the new economy. A contemporarily successful business depends on the ability to generate, ac- 17 MIROSŁAW GROCHOWSKI cess and utilize knowledge, innovations and technologies (Kourtit et al. 2011, Kourtit, Nijkamp 2012). A proactive and creative attitude of firms to the changing business environment make them more economically viable, because they are prepared to serve the increasingly individualistic lifestyles (Scott 2006). Firms must meet new challenges and generate potential to unlock and serve new markets with high levels of macroeconomic uncertainty and a dynamic social and economic environment. This emerging “new economy”, which is related directly to the development of the creative sector, is characterized not only by new types of industry, but also by the fact that these emerging industries can make a significantly higher contribution to growth and innovation within a broader knowledge-based society (Kourtit et al. 2011). THE CREATIVE SECTOR AND URBAN DEVELOPMENT The creative sector needs specific conditions for development. The concept of the creative milieu mentioned above partly explains the logic of the location of the creative sector and the pace of its development. Cultural riches and diversity have a positive effect on the development of the creative sector and the overall economic performance of cities. This is because being linked to creative activities is a major source of competitiveness for multicultural cities, as it not only stimulates creative ideas and facilitates creative activities, but it also encourages cities to boost their international profile. Cultural diversity tends to contribute to the improvement of the creative capacities of cities (Florida 2002, Landry 2000, Landry 2007) and the “cultural mosaic” is a source of creative entrepreneurship (Gang et al. 2011). When it comes to the location of the creative sector within the city’s space there are many factors that have an impact. Firms from the creative sector need first of all, obviously, available physical space that meets their specific expectations resulting from the profile of their activities. They also need access to business environment institutions, services, transportation networks, and other technical infrastructure facilities. However, the creative sector also has some specific requirements. The creative sector appears to find important seedbed functions in old residential or industrial (and post-industrial) parts of cities. Especially clusters of creative activities appear to be the result of culturally-appealing urban facilities in historical districts. Creative activities contribute to the formation of creative spaces. They attract new firms, strengthening the initial “creative milieu”, which often takes on special, original urban forms incorporated within the old urban landscape. These new spaces and landscapes tend to become culturally-based creativity and social innovation-breeding places. Cultural appeal and urban quality of life are the modern attractiveness factors for creative business, where appropriate urban districts act as cognitive engines and spiritual centers of social capital. The concentration of creative firms and the formation of creative spaces have a multidimensional impact on urban development. In the book by Bruce 18 The Creative Sector – An Instrument to Strengthen the Economic Base ... Katz and Jennifer Bradley (Katz, Bradley 2013) these concentrations are called “innovation districts”. These districts contain different categories of assets that are very important not just for the creative sector but also for the city as a social and economic entity embedded in a specific spatial form. The first assets are economic ones. Among them one may distinguish innovation drivers. These are the research institutions, the large firms, SMEs, start-ups, and entrepreneurs focused on developing cutting-edge technologies, products and services for the market. Depending on the local and regional conditions, districts are comprised of a unique mix of innovation drivers. Next to high-value, research-oriented sectors such as applied sciences one may find highly creative fields such as industrial design, graphic arts, media, architecture, and a growing hybrid of industries that merge technologies with creative and applied design fields. These activities are supplemented by highly specialized manufacturing, such as advanced textile production and small artisan-oriented manufacturing. Innovation cultivators, another type of assets, are the companies, organizations or groups that support the growth of individuals, firms and their ideas. They include incubators, accelerators, shared working spaces, job training firms, and community colleges advancing specific skill sets for the innovation-driven economy. The rise of technology-driven industries in general is creating demand for supportive industries that employ highly-educated workers. The presence of firms and institutions has an impact on the area where they are located and on the surroundings. Residents and workers need services. The demand for a range and quality of services is rising. The diversity of services to be delivered is determined by the diversity of consumers. Workers who are newcomers to the area may generate demand for services which were not offered so far. Emerging new lifestyles may also result in demand that was not noticed earlier. New services, especially those offered to the public, reflect not only contemporary urban consumption patterns but also a distinctive “geography of amenity”, which complements the intensive social interactions of the new economy. The second category is physical assets. Three sub-categories of these assets may be distinguished: physical assets in the public realm, physical assets in the private realm, and physical assets that knit the district together. Physical assets may not only facilitate collaboration and connectivity. Urban design and architecture are also important components of the urban environment from the broader functional, structural and aesthetic perspective. Special significance is ascribed to physical assets in the public realm, which are the spaces accessible to the public. Public spaces enable social interactions and are creative spaces in this sense that they stimulate contacts between different professional groups. The accessibility and organization of these spaces encourage networking and offer an alternative and attractive place to work. These spaces might be transformed into living labs or used as venues for cultural events and entertainment. Arrangements and programs for public spaces are important, just like in the first category of assets, not only for the inhabitants and workers from the district. Public spaces 19 MIROSŁAW GROCHOWSKI make the whole city more attractive for its inhabitants and people from outside. At the same time public spaces perform economic functions, stimulating and facilitating information exchange and building professional contacts. Physical assets in the private realm perform equally important functions. These assets might be seen both as incentives for development and as a reaction to the ongoing development processes in the city. The adaptation of buildings to meet the needs of creative firms consists in flex work spaces, lab spaces, and smaller, more affordable areas for start-ups. Affordable housing with access to larger public spaces such as co-working spaces, entertainment spaces, and common eating areas is an instrument to attract individuals. Investments aimed to eliminate barriers that hinder relationshipbuilding and connectivity belong to the third sub-category of physical assets. In this case both the private and public sector are involved in activities that lead to the integration of the area through the modernization of public space, removing fences and building bike paths, sidewalks, and pedestrian-oriented streets. Economic and physical assets contribute to the formation of networking assets. Referring to Tornqvist’s creative milieu concept, the concentration of firms and institutions together with the adaptation of the physical fabric of a city to the new economic requirements, create an environment that encourages and enables the establishment of cooperation links. Networks are increasingly valuable and prolific within innovation-driven economic clusters, they help firms acquire resources and they strengthen trust and collaboration within and across sectors. Emerging innovation districts are an example of the model-like organization of the new economy in urban settings. However, to house the creative sector in a city and to use its potential for development, public authorities have to design and effectively conduct proactive development policies. To do so, partnerships with actors from the private, public and social sector (NGOs) are necessary. Development processes are to a large extend spontaneous and market-driven. Partnership offers more room for coordination than just legal regulations concerning location, zoning, etc. As it was described above, the role and significance of the creative sector for urban development is multidimensional. The creative sector may initiate changes in many spheres. It may lead to the urban renewal of historical areas or post-industrial sites, it may unlock entrepreneurship of the young population entering the labor market, it may change the labor market in terms of demand for workers with specific skills, it may also have an impact on the spatial and functional structure of the city. The directions and pace of the development of the creative sector as well as its impact on different spheres of cities’ public life and their physical structures depend on several factors. Among the most important ones are: the current level of development of the creative sector, the strength of existing economic, physical and networking assets, and the place of the creative sector in the city’s development policies. It is also important for the future of the creative sector itself 20 The Creative Sector – An Instrument to Strengthen the Economic Base ... and for its significance for the city’s economic development base, how the sector is perceived by policy-makers and planners. Their perception is being later translated into decisions on the allocation of financial resources and on the use of land and properties. It is relatively easy to hamper the development of the creative sector because this may happen after issuing few administrative decisions. And it is definitely very difficult to support the development and to use the potential of the creative sector in a systemic way, because this requires understanding its specificity and the way it operates as well as the cooperation of many actors from different organizational and institutional cultures. Additionally, these actors may have their particular interests to be realized in the city and consensus is needed to avoid conflicts and to build a platform for cooperation. Examples from EU countries and the United States prove that the list of institutions and individuals that are driving the growth of the creative sector and innovation districts might be a long one and just as differentiated as the creative sector itself (Katz, Bradley 2013). This list includes local and regional governments, land owners, developers, owners of commercial and non-commercial properties, university chancellors, managers of research campuses, financial institutions, faculty members, philanthropic investors, operators of incubators, accelerators, and other economic cultivators, social networking programmers and many others. Indeed, a lot of creativity is needed to bring together the interests of all these parties, identify common goals and decide on mechanisms of cooperation. PUBLIC AUTHORITIES AND THE CREATIVE SECTOR DEVELOPMENT The creative sector is formed by creative people, who can be referred to as creative capital. Creative capital – people that are entrepreneurial, energetic, well-educated, and have specialized skills – is a mobile capital. It moves easily from city to city looking for the best working and living conditions. The most important tasks for public authorities, that aim to build a solid base for future economic development, include capturing this capital and retaining it in the city. To achieve these goals city authorities may undertake different activities focused on improving the environment for the development of the creative sector. However, when looking at the components of this environment a question arises regarding the areas of intervention of public authorities. This question is justified, because the meaning of “improving the environment” is very broad. The scope of public intervention shall be narrowed and activities to be performed prioritized. Thus, the basic question that should be answered is: what role in supporting the creative sector is envisaged for the city government? The city government may assume the following roles in particular: Motivator –providing inspiration: an agent that makes information available on possible actions to be undertaken/projects to be implemented, pointing out their benefits. 21 MIROSŁAW GROCHOWSKI Pragmatic visionary–predicting future development paths: an agent that presents the city’s development scenarios and the envisaged role for the creative sector in development processes. Developer –new ideas for future development: an agent that makes projections and plans of specific, desired activities to be performed by the creative sector. Enabler –managing available resources: an agent that has an impact on the activities of other entities, which are supposed to provide assistance to the creative sector. Knowledge broker –information sharing: an agent that collects data / has access to data and information, possesses knowledge that is necessary to conduct business activities, organizes mechanisms of information distribution. Connector –building new relationships, facilitating contacts: an agent – matchmaker that uses information to bring together potential partners, organizes different events to create opportunities for networking. Provider –an agent that delivers assistance in the form of space, funds, facilities and other resources. Promoter –promoting idea of cross innovation through making its essence and mechanisms understandable. The roles listed above are not separable and they may overlap. The city government may play one or more different roles at the same time. Playing one role sometimes makes it easier to support the creative sector in another way (e.g. a “pragmatic visionary” is usually well-informed and an efficient “enabler”; the roles of “motivator” and “promoter” are supplementary). However, it is important that the city government does not try to substitute other agents, which are specialized in performing specific functions. When playing one or more roles the city government acts as a catalyst. The power of the catalyst depends on its ability to mobilize and coordinate activities of other actors within the framework of the creative sector development strategy. Looking at the powers and competences of city governments it seems that the priority sphere of public intervention should be space for the creative sector and an environment for cross innovations. From the perspective of urban policy-making the urban space may be considered in four dimensions: i) as a location for functions and activities; ii) as an urban asset that has an impact on the attractiveness and development potential of a city; iii) as a symbolic value embedded in the urban physical fabric that contributes to its cultural environment, and; iv) as a product resulting from development policies, offered to different users. 22 The Creative Sector – An Instrument to Strengthen the Economic Base ... In the case of creative spaces all dimensions should be perceived as important for the development of the creative sector and increasing its attractiveness. There are some specific types of creative spaces that are instrumental for the development of the creative sector. Among them are co-working spaces. Co-working spaces are not dedicated to any specific users group. Co-working spaces might be homes for different types of individuals and firms. This depends on the specific local conditions, which have an impact on the needs concerning this type of spaces. However, a heterogeneous group of users increases the potential of specific spaces for crossinnovation i.e. the transfer of ideas, technologies or products between sectors of the economy. At the same time, more homogenous groups of users offer, via cross innovation, new opportunities for the development of products and services because of interactions that stimulate competition. Fablabs represent another category of creative space. Although the concept of fab-labs is well-known and such spaces are believed to play an important role in the development of the creative sector and cross innovations, their establishment brings the necessity of substantial financial investments (costs of equipment). That is the reason why the supply of this kind of spaces is still limited. However, there are examples that the barrier of costs can be overcome. An effective instrument is cooperation with the industry sector, which might be willing to support fab-labs through the donation of equipment and / or subsidies or grants. The most popular creative spaces are incubators. There are different types of incubators, including “virtual incubators”. The incubation of a product may take place in different environments, not necessarily in the physical space specially arranged for this goal. An incubator can be perceived as a specific type of co-working space. What makes incubators different from co-working spaces is their institutional surrounding, which is characterized by a strong connection with other sectors of the economy. This strong connection enables easier commercialization of creative products. Another popular type of creative spaces are science parks. This type of space is predominantly dedicated for SMEs. The need for science parks results from the existence of creative individuals and creative groups looking for a non-corporate working environment. Science parks are homes for specific groups of users: mainly firms from the hightech sector. They offer an environment where products can be developed and prepared to enter a market. They also function using a mechanism of financing based on good working relationships between different users: researchers, investors, producers, and other business partners that are vital for running projects dedicated to the design, development and delivery of new products. The establishment and location of the above-listed spaces depend to a large extend on the public authorities that are responsible for the preparation of spatial development plans. Zoning regulations and other rules might be applied to promote the concentration of creative activities in selected parts of the city. The development of technical infrastructure may encourage the creatives to choose locations preferred by the city authorities. 23 MIROSŁAW GROCHOWSKI However, there are other factors that are not easy to control and that have had and still have an impact on the establishment of creative spaces. Among them are: tt the changes in local urban economies related to changes that take place at the global, national and / or regional scale; tt the situation in the real estate market; tt the evolving approach to dealing with urban development problems; tt the evolving approach to urban renewal;, tt the changing role of urban planning; tt new modes of local economy organization; tt freelancers boom. The establishment of creative spaces is a response to an increased demand generated directly and indirectly by these factors. Post-industrial economies based on creativity and knowledge require specific spaces that, among other things, facilitate cross innovation. Creative spaces offer not just physical space arranged according to user needs, they also offer activities supporting the functioning of creative firms. The establishment of creative spaces brings development incentives to urban economies and is an important part of multi-dimensional urban renewal. The success of the undertakings that are aimed to lead to the establishment of creative spaces depends to a large extent on policy-makers who should have a vision for the development of creative spaces resulting from an understanding of and appreciation for their potential for cities. Space – as a priority sphere of public intervention – plays a key role in the earlier mentioned cross innovation. Thus, dealing with spatial arrangements that foster the development of the creative sector, public authorities also contribute to cross innovation. Cross innovation is usually defined as the innovation transfer between sectors. However, cross innovation is also embedded in creative and innovative products, i.e. goods and services, and might be identified as a result and, at the same time, as an added value of the cooperation between different creative firms. Cross innovation itself is an innovation understood as a new organizational method in business practices. It serves as a vehicle to share information, collaborate and work with other sectors to promote new thinking, new products and new services. Cross innovation, its forms and results, is determined by the development of technologies and the conditions for the diffusion of innovation among different branches of the industry. From the perspective of the dynamics of cross innovation and the actors involved in it, one may distinguish cross innovation as a spontaneous activity, which is composed of both informal and formal arrangements bringing together different actors. Spontaneous activities meet the needs of the creative sector providing the missing elements of the connections between individuals and firms. Guided activities are the results of institutional, organizational and managerial arrangements. These activities are codified in terms of rules that determine the mechanism of development policy 24 The Creative Sector – An Instrument to Strengthen the Economic Base ... formulation and implementation, focused on the creative sector. The existence of creative spaces supports cross innovation since geographic concentration facilitates contacts among firms. Other attributes may also be ascribed to the locating, making the creative space more attractive. In the era of electronic media physical space is accompanied by virtual space, broadening networks and opening new markets for creative products and services. Cross innovation is needed to use assets located in the city. To do so, cross innovation needs friendly ecosystems that are created by appropriate urban policies, an adequate institutional framework, and a proper allocation of tasks and responsibilities among different actors: firms from the creative and other sectors as well as institutions from public and private sectors. These ecosystems are spatially anchored – they operate in specific urban spaces that are under the control of public authorities. THE CREATIVE SECTOR IN WARSAW – DEVELOPMENT EXPERIENCE AND PROSPECTS Warsaw is a metropolis of great creative potential. All national media are located here – television and radio stations, internet portals and the editorial offices of most newspapers and periodicals with national coverage. The headquarters of foreign firms operating in Poland, the main offices of national and foreign financial institutions, mass media, educational institutions, R&D institutions, theatres, museums, etc. as well as people with university degrees and of high material status make Warsaw a leading centre – both in terms of creative potential and the market for products of the creative sector. There are 313,000 companies operating in Warsaw (GUS, 2009). Among them 3,114 can be granted the status of creative firms. An analysis of the size and structure of the creative sector presents problems associated with the availability of current and reliable data. The first and so far the only thorough analysis of the sector was conducted in years 2009–2010 (Grochowski 2010). According to the results of the analysis the creative sector in Warsaw is dominated by companies operating in the advertising business (21% of all creative firms), next in line are architecture (15%) and traditional publishing houses (10%). They are followed by design (7%), film and television (6%), and music and performance (5%). Most of the creative firms are located in the city centre and neighboring districts with post-industrial sites. However, there is a significant concentration of creative firms in the residential area of the district Ursynów (Fig.1). This is because small creative firms (usually one-person firms) are often registered at the same address as the place of residence of their owners and Ursynów is inhabited by the youngest and best-educated population in Warsaw, very often working on their own in the creative sector. 25 MIROSŁAW GROCHOWSKI Fig. 1. 26 The Creative Sector – An Instrument to Strengthen the Economic Base ... The favorite location of creative firms are the Praga Płd. and Praga Płn. districts (mainly their old parts, which are neglected, but offer affordable places to run businesses and generally lower costs of functioning; these old parts also offer a specific atmosphere of pre-war Warsaw; the location of the first creative firms in this area has quickly made it more attractive and fashionable). Another area perceived to be attractive is a corridor along the subway line. There are two main reasons why this location is considered to be attractive: easy accessibility via the subway and proximity of clients. The third most attractive area is the historically developed center of film production in Warsaw. The center has been transformed (after restructuring big state-owned enterprises from the film sector) into a location of smaller, private firms dealing with TV, video and film production. They have attracted advertising companies that are located in the close vicinity. Since the economy of modern Warsaw is dominated by companies operating in the broadly-understood service sector the presence of the creative sector is a natural result of shifting from the industrial to a post-industrial phase of the economic development of the city. The creative sector has found strong supporters in the City Hall. Warsaw authorities have initiated activities to inform about and to promote the development of the creative sector. Cyclical meetings called “Creative Mikser” have been organized since 2011. They bring together people from the sector and others, interested in establishing their own firms. The program “Innovative Warsaw 2020” prepared by the City Hall addresses the issue of entrepreneurship in the creative sector. Warsaw authorities are proactive in looking for the best practices to support the development of the creative sector. The international project “Creative Metropoles” implemented in the years 2007–2013 contributed significantly to the discussion on the role of the creative sector in city development. Other projects like the “European Creative Cluster Lab” (ECCL) addressed issues related directly to the environment of the functioning of creative firms. The project “Cross Innovations” focused the attention of city authorities on the development of creative spaces. The city’s approach to the creative sector becomes more comprehensive and practical. The establishment of the Center of Entrepreneurship (new investment: building that houses an incubator and a program offering different forms of support for entrepreneurship) and the plans for the establishment of the Center of Creativity (selected location: the Praga Płn. district) reflect the determination of the city authorities to continue their support for the creatives. This is accompanied by other projects focused on broadly defined entrepreneurship, a good example of which is the Capital Forum of Entrepreneurship, a project implemented by the city authorities in cooperation with the Entrepreneurship Center of the Kozminski University. The results of studies on the development of the creative sector in Warsaw provide information that allows to formulate the following statements about what is needed the most to foster this development (Grochowski 2010). First, easy access to reliable information on how to run a company 27 MIROSŁAW GROCHOWSKI is needed. Also important is information about Warsaw as a place of doing business: finding a place in the market is not an easy task for firms, especially new ones. Thus information about the structure of the Warsaw market and existing as well as potential demands for companies in a given branch (and with a particular specialization) is needed. Market research concerning the current supply of and demand for products and services should be undertaken. The same concerns research on market development trends. Creative firms are also looking for financial support from the banking sector, which is not easily available to them. New instruments are needed, such as the so-called “start-up packages” understood as a specific sum granted to companies at the beginning of their activities, intended to cover initial basic expenses; tax relief when purchasing the necessary equipment or services; preferential rates of rent or a temporary reduction of contributions to the ZUS (the National Insurance System). Some of the needs expressed by the representatives of the creative sector are obviously not sector specific. However, special emphasis was put by the creatives on support by public authorities in the form of promotional activities, such as organizing exhibitions of their works, putting information materials in media, etc. These kind of activities would additionally include free advertising for specific companies. A very important asset that is needed by the creative sector is space for their activities. Currently the most popular spaces in Warsaw are co-working spaces. There are also incubators and fab-labs, but their number is much smaller. The existing co-working spaces are not dedicated to any specific user group. However, they stress that the “good creative spaces” shall be established by or in cooperation with its future users. Spaces shall be customized not only to meet technical requirements but also to follow other needs and preferences of the users. Creative spaces shall be flexible, so that they can be adapted to the changing needs of users. Based on the research results one may state that the weakest component of the environment for the development of the creative sector is networking and cooperation. Cross innovation is still at its initial stages of development. The links between the R&D sector, traditional industrial sectors and the creative sector need strengthening. Additionally, different urban policies implemented by the city are not coordinated enough and as a consequence the results of different undertakings lack the synergy effect. There are no “innovative districts” in Warsaw. Aside from some concentration areas creative firms are dispersed and located in different places. CONCLUSIONS Warsaw has made enormous progress in terms of the development level of the creative sector and activities aimed at its support. However, the city authorities are still looking for an optimal way of cooperation with the creatives and using the creative potential for the city development. It is neces- 28 The Creative Sector – An Instrument to Strengthen the Economic Base ... sary for the city authorities to define their role and position vis-à-vis the creative sector. At this stage the city authorities play different roles, such as knowledge broker, enabler, promoter. Important for the development of creative spaces in Warsaw may be the new, currently under preparation, program of urban renewal, which is planned for parts of the three districts in Warsaw: Praga Północ, Praga Południe and Targówek. Some of these areas have become popular among the creatives some time ago. It seems that the cross innovation processes may play an important instrumental role in the urban renewal process. There are also post-industrial sites that wait for new concepts for their development (Grochowski, Bogiel 2013). It seems that they might be used to house creative spaces, such as fab-labs. The development of post-industrial sites for the purposes of the creative sector may play an important role in the differentiation of the base for the economic development of the city. Additionally, they may contribute to smart re-industrialization, which shall be considered as an alternative for the fragile service sector. REFERENCES Buitrago P., Duque I. (2013). The Orange Economy: An Infinite Opportunity. Washington, DC: Inter-American Development Bank 2013. European Commission (2010). Green Paper – Unlocking the potential of cultural and creative industries, COM(2010) 183. European Commission (2012). Materials: research and innovation in the creative industries. Report on the round table discussion. Florida R. (2002). The rise of the Creative Class. Basic Books, New York. Gang J., Higgins B., Rodriguez R.L., Simpkins A., Zaikos M.M. (2011). From melting pot to mosaic: The cultural opportunities and challenges of immigration. Moving Forward: The Immigration Debate and Chicago’s Experience. The Chicago Council on Global Affairs, Chicago, Ill.: pp. 45–60. Grochowski M. (2010). The Creative Sector in Warsaw: the Potential and Development Conditions, in: Jeziorek P., Le Nart A., Petruk E., Świątkowska B. (eds.) Creative people. Creative living in Warsaw. Guide to Warsaw’s creative sector, Warsaw. Grochowski M., Bogiel M. (2014). Warszawa ery post-industrialnej – stan i perspektywy rozwoju terenów poprzemysłowych; in: Madurowicz M. (ed.) Kształtowanie współczesnej przestrzeni miejskiej, wyd. UW, Warsaw. Hesmondhalgh D. (2002). The Cultural Industries, SAGE. Howkins J. (2001a). The creative economy, Allan Lane, London. Howkins J. (2001). The Creative Economy: How People Make Money From Ideas, Penguin. Katz B., Bradley J. (2013). The Metropolitan Revolution, How Cities and Metros Are Fixing Our Broken Politics and Fragile Economy, Brookings Institution Press, WDC. 29 MIROSŁAW GROCHOWSKI Kourtit K., Nijkamp P. (2012). Creative firms as change agents in creative spaces. Quaestiones Geographicae 31(4), Bogucki Wydawnictwo Naukowe, Poznań, pp. 19–31. Kourtit K., Nijkamp P., Lowik S., van Vught F., Vulto P. (2011). From islands of innovation to creative hotspots. Regional Science Policy and Practice, 3 (3): pp. 145–161. Landry C., (2000). The creative city: A toolkit for urban innovators. Earthscan, London. Landry C., (2007). Creative cities. Earthscan, London. Scott A.J., (2006). Creative cities: Conceptual issues and policy questions. Journal of Urban Affairs, 28: pp. 1–17. Söndermann M., Backes Ch., Brünink A. (2009). Cultural and creative industries in Germany – defining the common characteristics of the heterogeneous core branches of the “cultural industries” from a macro-economic perspective, Study commissioned by the Federal Ministry of Economy and Technology. Tornqvist G. (1983). Creativity and the renewal of regional life, in: A. Buttimer (ed.) Creativity and Context: A Seminar Report, pp. 91–112. Lund Studies in Geography. B. Human Geography, No. 50. Lund: Gleerup. 30 Katarzyna Rostek, Agnieszka Skala A Profile of the High-Technology Manufacturing Sector in Warsaw ABSTRACT The aim of this paper is to identify and characterize Warsaw’s high-technology (HT) manufacturing sector. Within this topic the usability of Internet data as the source complementing the analysis of statistical data is indicated, and the main profiles of enterprises from the tested group are presented. The analysis uses REGON databases from December 2012 and the data obtained from websites of the companies in the first half of 2013. For the initial study group all Warsaw enterprises were chosen whose Polish Classification of Activity (PKD) indicated manufacturers of high technology. Then those entities were separated that are active, have a website and whose offer is in accordance with the declared activity in the area of high technology. Those enterprises were defined as the Warsaw HT sector and characterized by the means of the method of descriptive statistics. Subsequently, their segmentation was carried out. In order to perform this, Ward’s clustering method was applied, and then automatic profiling of the segments was conducted. The presented analysis of the Warsaw high-technology manufacturing sector was carried out as part of the Project “Warsaw Entrepreneurship Forum”. Keywords: entrepreneurship, manufacturing, high-technology, characteristics, Warsaw 31 Katarzyna Rostek, Agnieszka Skala Profil przedsiębiorstw sektora wytwórczego wysokich technologii w Warszawie ABSTRAKT Celem pracy była identyfikacja oraz scharakteryzowanie warszawskiego sektora przetwórczego wysokich technologii (HT). Przy tej okazji wykazano użyteczność danych internetowych jako źródła uzupełniającego analizę danych statystycznych oraz przedstawiono główne profile podmiotów z badanej grupy przedsiębiorstw. Do analizy wykorzystano dane bazy REGON z grudnia 2012 r. oraz dane pozyskane ze stron internetowych firm w pierwszej połowie 2013 r. Do wyjściowej grupy badawczej wybrano wszystkie warszawskie przedsiębiorstwa, których klasyfikacja PKD wskazywała na produkcję wyrobów wysokiej techniki. Spośród nich wyodrębniono te podmioty, które są: aktywne, mają strony internetowe oraz ich oferta jest zgodna z deklarowaną działalnością w zakresie wysokich technologii. Przedsiębiorstwa te określono jako warszawski sektor HT i scharakteryzowano za pomocą metody statystyki opisowej, a następnie dokonano ich segmentacji. W tym celu zastosowano klasteryzację metodą analizy skupień Warda, a następnie automatyczne profilowanie segmentów. Przedstawiona analiza warszawskiego sektora przedsiębiorstw produkcyjnych high-tech została wykonana w ramach projektu „Stołeczne Forum Przedsiębiorczości”. Słowa kluczowe: przedsiębiorczość, wytwórczość, wysoka technologia, charakterystyka, Warszawa 32 A Profile of the High-Technology Manufacturing Sector in Warsaw INTRODUCTION The presented analysis of the Warsaw high-technology manufacturing sector was carried out as part of the Project “Warsaw Entrepreneurship Forum” 1. The aim was to identify and characterize the high-tech manufacturing sector in Warsaw2. The first research problem was to identify these companies among other business entities registered in Warsaw. Subsequently, the study aimed to identify the characteristics that differentiate the sector being researched from other sectors and that create its nature – provided this nature actually exists. There are 374 thousand business entities registered in Warsaw (37% of all business entities registered in Poland) and, as a result, the number of companies per one resident of the capital city is more than two times higher than the average value for the country (3.5 thousand companies per 10 thousand residents in Warsaw vs. the average ratio value in Poland equal to 1.7 thousand). It is also worth noting that, on average, in Poland there are seven deregistered companies per ten newly registered ones; in Warsaw this ratio is five to ten – and this is a sign of a higher “vitality” of companies in Warsaw. Salaries in Warsaw are, on average, 40% higher than the country’s average, and this makes the capital city a significant market. There are 250 thousand university students in Warsaw, so the city is the biggest academic center in Poland and offers a flexible labor market, where employees of the highest qualifications can be found3. Taking into account the presented data, one can assume that Warsaw is a good place for manufacturing activities in the field of high technology. This type of activity plays a significant role in the economy for many reasons, out of which we will list some of the most important ones. First, high-tech companies (HT) are characterized by a high growth dynamic and this is beneficial for employment. Second, workplaces created this way are well-paid and intended for qualified specialists. Third, these entities are the sources and car The European Project entitled: Stołeczne Forum Przedsiębiorczości (Warsaw Entrepreneurship Forum) – Development, promotion and pilot implementation of new methods of collaboration between Warsaw authorities and businesses in order to ensure efficient management of economic change, co-funded by the EU under the European Social Fund, agreement no. UDA-POKL.08.01.02-14-137/11. 2 In this article the expressions ‘high-tech’ and ‘high technology’ as well as the abbreviation ‘HT’ are used interchangeably. 3 All data retrieved from the Central Statistical Office of Poland – GUS. (stat.gov.pl) 1 33 KATARZYNA ROSTEK, AGNIESZKA SKALA riers for the innovations that are spreading under their influence, and they raise the technological and organizational level of near and distant business environments. Finally, these companies are mainly exporting leaders, influencing the level of competitiveness of the country in regional markets as well as globally [Acs 2006; Turowski 2007; Thurik 1999; Zakrzewska-Bielawska 2011]. It must be added that all the above factors are important from the point of view of the whole economy and they decide on its significance on the local and regional level. Cities like Warsaw, being the academic centers and labor market focal points, are interested in HT companies being established and operating in their areas. The expected results include guarantee of employment for the best-qualified employees, stimulation of cooperation between scientific and business organizations and an increased interest of prospecting customers, subcontractors and venture capital institutions. All the above means a greater attractiveness of the city, also in the financial dimension. The analysis of the Warsaw HT business environment shall show the real growth potential of this sector in the capital city and probably will allow for more general conclusions. The main focus points include the identification of the structure of this group of companies and the recognition of the entrepreneurs creating them. Planned in-depth interviews will, in a further stage of the study, make it possible to recognize the wider context of operation of this sector. RESEARCH METHOD High technology refers to areas of manufacture and products that are highly science-intensive, i.e. they are characterized by a high level of R&D intensity [Matusiak 2011]. There are three criteria that define a specific business entity as a high-technology manufacturing entity: sectoral, the manufactured products and the patents owned. In accordance with the sectoral criterion, the high-tech manufacturers group consists of entities with the main area of activity in the scope of two branches and one subclass of the NACE European classification, with their equivalents in the Polish Classification of Activities (PKD) [Eurostat 2014, Annex 3]: tt section 21: manufacture of basic pharmaceutical substances; tt section 26: manufacture of computers, electronic and optical equipment; tt subclass 30.3: manufacture of air and spacecraft and related machinery. On the basis of the manufactured product criterion, nine HT product groups are distinguished [Eurostat 2014, Annex 5]: tt aviation and space industry products; tt computers; tt electronic and telecommunication products; tt pharmaceuticals; tt research and development equipment; tt electric machinery; 34 A Profile of the High-Technology Manufacturing Sector in Warsaw chemicals; non-electric machinery; tt weapons and ammunition. tt tt Both criteria, sectoral and product-based, are in some aspects ineffective. The sectoral criterion: some companies declaring themselves as being hightech companies do not, in fact, manufacture any products that fulfill the criteria of high technology and vice versa – companies from other sectors do. “In consequence, technological intensity in some sectors may be overestimated and in other sectors – underestimated (it is assumed that, for example, a great part of R+D investments in the space industry is spent on electronics and, as a result, technological intensity in the first area is overestimated and R+D intensity in the second area is underestimated).” [Matusiak 2011]. The product criterion solves this problem theoretically, however it is hindered by the lack of detailed data on all products manufactured by companies and requires very labor-intensive analyses. Therefore, in the process of identifying high-tech companies, two additional criteria are applied (rather locally than globally, mainly due to the lack of adequate data to, for example, compare companies on the international level). The first criterion refers to patents registered or license agreements signed by a company in areas perceived as HT areas. The second criterion is the level of employment of highly qualified research and technical personnel in a company [Trajtenberg 2001]. However, the OECD stresses that due to the lack of such data in a wider dimension, only the sectoral criterion can be useful for international comparisons. The research study described in this article is divided into three stages: tt identification of business entities belonging to the sector being studied; tt descriptive analysis of the sector; tt segmentation analysis of the sector. The identification and descriptive characteristics were conducted on the basis of a statistical analysis of two data sets: tt a dataset retrieved from the Central Statistical Office of Poland (GUS) (REGON database), supplemented by an indicator of the Polish Social Insurance Institution (ZUS) and the export-import activity ratio, valid for December 2012; tt a dataset created on the basis of surveys of the websites of Warsaw HT companies, valid for June 2013. From the Central Statistical Office of Poland, the REGON database was obtained, limited to those organizations that are registered in Warsaw, which declare their main area of activity in the HT sections (PKD: 21, 26 and 30.3) of the Polish Classification of Activities (PKD). As a result, the initial database with 1,363 entities seated in Warsaw (18 districts) was created. Subsequently, out of the set of all attributes in the REGON database those were selected which were regarded as useful classifiers for the descriptive analy- 35 KATARZYNA ROSTEK, AGNIESZKA SKALA sis. The classifiers are characterized by a finite number of discrete values and informative significance for a descriptive and a classification analysis. Table 1 shows the list of classifiers within the GUS dataset. Table 1. Classification attributes within the GUS and ZUS datasets (own compilation) Item Name 1 High-Tech 2 Description Type Length PKD class Characters 4 GD Municipality identification number Characters 3 3 OP Type of legal personality Characters 1 4 FP Type of legal form Characters 2 5 FW Type of ownership form Characters 3 6 FZ_1 Is this a foreign form of ownership? Numbers 8 7 LPRAC Employment size bands Numbers 8 8 WWW Does the company have a website? Numbers 8 9 E_I Export-import activity indicator Numbers 8 10 WA ZUS activity indicator Characters 1 On the basis of previous research experiences, it was assumed at this stage that a significant number of these companies are inactive or suspended and that this fact is not shown in the REGON database. Therefore, the verification of the initial database was originally intended to “filter” these entities. For this purpose data was obtained that allowed the identification of active social security premium payers in the population being studied. The activity indicator of ZUS (WA) had binary values: WAЄ{0;1}. This step of the study appeared more difficult than was initially assumed, for two reasons: tt on the basis of a sampling analysis it was determined that the business entity database, being the assumed basis for analysis of the HT sector, contained a significant number of entities that cannot be counted as such; tt available statistics concerning the sector were not clear as for their methodology and results. Therefore, some actions to increase the credibility of the identification of organizations belonging to the HT sector were taken. In addition to the previously mentioned activity indicator (WA) that allowed to remove inactive entities from the database, it was decided to conduct a qualitative analysis 36 A Profile of the High-Technology Manufacturing Sector in Warsaw of the websites of companies being studied. On these websites companies themselves, freely, in their own best interest, publish comprehensive data concerning their offers, as well as information on: the technologies employed, patents and certificates owned, main customers, cooperation with scientific institutions, etc. This analysis of websites was performed in two steps and included: tt verification if the company really conducts the activity declared as its main activity; an analysis was performed by comparing the product offer published on the website with the declared PKD activity. The analysis result was expressed as a binary value: PKDЄ{0;1}; tt for positive verification results, i.e. PKD indicator = 1, an in-depth analysis of the website was performed, to obtain the company’s in-depth characteristics and to identify the features that distinguish it from other companies in the market. The list of those features follows the structure shown in Table 2. Table 2. Classification attributes in the Internet dataset (own compilation) Item Name Description Type Length 1 EMPLOY Does the company employ workers? Numbers 8 2 AKTIV Is the company active? Is the data on the website up to date? Numbers 8 3 SOCIAL Does the company have social media accounts? Numbers 8 4 PATENT Does the company hold a patent or trademark registration? Numbers 8 5 SCIENCE Does the company cooperate with research centers? Does it have own research laboratories? Numbers 8 6 LANG Does the company have a website in a foreign language? Numbers 8 7 B2C Does the company sell to individual customers? Numbers 8 8 B2B Does the company sell to other companies? Numbers 8 9 EXPORT Does the company export? Numbers 8 10 CERT Does the company have certificates? Numbers 8 11 INNOV Does the company describe itself as innovative? Numbers 8 37 KATARZYNA ROSTEK, AGNIESZKA SKALA On the basis of the data from the set presented in Table 1, supplemented with data presented in Table 2, identification was performed, followed by a two-step analysis (descriptive and segmentation) of the resulting set of enterprises. The descriptive analysis and a further detailed analysis of the assumed features distinguishing the high-tech manufacturing sector were prepared on the basis of quantity distribution statistics of the features being analyzed, breaking them down to particular categories. The outcomes of this part of the project consist in a general knowledge on the population profile of the Warsaw HT manufacturing sector. The segmentation analysis was performed with the use of Ward’s clustering method and with segmentation profiling. The aim of this analytical stage was to distinguish, in the general population of Warsaw HT, outstanding subgroups and to define a classification description of each of these subgroups. To maintain the significance of the resulting characteristics, the number of created subgroups was limited to five – and this number appeared to be optimal in the view of further experiments. The analysis also allowed for the identification of the strongest features distinguishing Warsaw companies from the high technology manufacturing sector. The resulting classification can be applied for the identification of companies that are worth further in-depth analyses. RESEARCH RESULTS: IDENTIFICATION AND SIZE OF SECTOR For the identification of the Warsaw HT sector, the results of the conducted research were as follows: tt stage: REGON DATABASE, i.e. business entities declaring that their main business activity includes one of the three industries recognized as the HT manufacturing industries (pharmaceutics, electronics, aviation and space industry); 1363 companies; tt stage WA=1, i.e. after verification of the activity of these companies with the ZUS activity indicator, the set of active companies included 558 entities; tt stage www+, i.e. after taking into account companies with their own websites, the size of the set was 226; tt stage HT, i.e. upon positive verification of compliance between offers published on websites and declarations of type of activity in the REGON database, 137 business entities remained. It was surprising that only in 137 cases (51.5% of the active entities with websites and only 10% of the initial REGON database) the research result was positive, i.e. the particular enterprise really belonged to the HT manufacturing sector. Based on the above, it can be assumed that the classification of a company as high-tech based on the type of activity expressed by the PKD classification 38 A Profile of the High-Technology Manufacturing Sector in Warsaw code may be subject to substantial error in at least a half of the cases (Fig. 1). In light of these findings, unverified (declaratory) PKD classification cannot be treated as a reliable criterion for qualifying a company as hightech. 1400 1193 1200 1000 800 21 600 494 26 400 200 30.3 218 148 22 53 0 GUS baseline data ∑1363 39 11 WA=1 ∑558 9 www+ ∑266* 25 106 6 HT ∑137 Fig. 1. Structure of the number of companies according to the PKD type of business activity during the respective stages of the study (own compilation) * without branches of foreign companies RESEARCH RESULTS: DESCRIPTIVE ANALYSIS The descriptive analysis includes 137 companies, qualified to the Warsaw high-technology sector based on the conducted research. This set is characterized by features retrieved from the REGON database and from the websites of the companies. The results are presented in Table 3. Table 3. The results of the feature distribution characterizing the set of Warsaw high-tech enterprises (own compilation) Name of attribute Description of attribute REGON REGON number, set identifier AKTYW Assessment of activity Distribution of value Value Quantity Individual value 0 1 None 14 120 3 39 KATARZYNA ROSTEK, AGNIESZKA SKALA B2B Type of sale: B2B B2C Type of sale: B2C CERT Certificates EKSPORT Information on exporting from website E_I Import/export ratio FP Specific legal form FW FZ_1 40 Type of ownership Share of foreign capital 0 1 None 0 1 None 0 1 None 0 1 None 0 1 None 16 Joint-stock company 17 Limited liability company 18 General partnership 19 Civil law partnership 20 Limited partnership 21 Private unlimited company with share capital 40 Cooperative 99 One-man business 111 State Treasury 132 mixed sector ownership, with prevalence of public sector, including prevalence of state legal persons 214 ownership of domestic physical persons 215 other private domestic ownership 216 foreign ownership 224 mixed ownership in private sector, with prevalence of ownership of domestic physical persons 225 mixed ownership in private sector, with prevalence of other private domestic ownership 226 mixed ownership in private sector, with prevalence of foreign ownership 234 mixed sector ownership, with prevalence of private sector, including prevalence of ownership of domestic physical persons 235 mixed sector ownership, with prevalence of private sector, including prevalence of other domestic private ownership 0 1 None 7 127 3 89 45 3 51 83 3 59 75 3 38 99 0 15 54 5 10 1 1 2 49 1 1 95 15 7 5 2 5 2 4 124 13 0 A Profile of the High-Technology Manufacturing Sector in Warsaw GD HiTech INNO District of Warsaw PKD group Self-assessment of innovative nature 028 Bemowo 038 Białołęka 048 Bielany 058 Mokotów 068 Ochota 078 Praga-Południe 088 Praga-Północ 108 Śródmieście 118 Targówek 128 Ursus 138 Ursynów 148 Wawer 158 Wesoła 168 Wilanów 178 Włochy 188 Wola 198 Żoliborz 2110 Manufacture of basic pharmaceutical products 2120 Manufacture of medicines and other healthcare products 2611 Manufacture of electronic components 2612 Manufacture of loaded electronic boards 2620 Manufacture of computers and peripheral equipment 2630 Manufacture of communication equipment 2640 Manufacture of consumer electronics 2651 Manufacture of instruments and appliances for measuring, testing and navigation 2660 Manufacture of irradiation, electromedical and electrotherapeutic equipment 2670 Manufacture of optical instruments and photographic equipment 2680 Manufacture of unrecorded magnetic and optical media 3030 Manufacture of air and spacecraft and related machinery 0 1 None 8 10 12 9 3 12 4 9 2 5 15 14 2 3 11 15 3 9 17 17 6 16 11 5 35 9 5 1 6 36 98 3 41 KATARZYNA ROSTEK, AGNIESZKA SKALA LANG Website in foreign language LPRAC Number of employees NAUKA Cooperation with science centers PATENT Patents PRACOW Searching for new employees SOCIAL Social networking service account 0 1 None 0-9 10-49 50-249 250-999 >999 0 1 None 0 1 None 0 1 None 0 1 None 55 79 3 99 19 12 5 2 94 40 3 115 19 3 19 115 3 127 7 3 The general nature of the set of Warsaw high-tech companies is as follows: more than seventy five percent of the sector is comprised of companies manufacturing electronic products (77%), with the main groups including: the manufacture of instruments and appliances for measuring, testing and navigation; tt half of the sector (50%) consists of commercial law companies (joint-stock companies or limited liability companies); tt micro-companies are dominating (up to 9 employees); tt the companies are located in the whole area of Warsaw, mainly in Ursynów, Wola and Wawer; tt the dominating ownership type is ownership of domestic natural persons, foreign capital share is limited and includes less than 10% of the companies; tt most of the companies are active on the Internet and maintain websites in foreign languages; however, they do not maintain any social networking service accounts; tt most of the companies (72%) describe themselves as innovative; tt the companies strongly prefer B2B over B2C type of sale; tt the companies have certificates, but only 1/3 of them cooperate with science centers and only a few (14%) have their own patents; tt they are developing companies – active in exporting and searching for new employees. tt 42 A Profile of the High-Technology Manufacturing Sector in Warsaw RESEARCH RESULTS: SEGMENTATION ANALYSIS An in-depth analysis suggests that high-tech businesses differ from other companies with respect to the following features: conducting business to business (B2B) activity, export activity and searching for new employees. A certain ambiguity arose with respect to some activities related to science: cooperation with research centers, patents and obtaining certification. On the one hand, these seem to be the most important features of companies associated with high technology, but on the other hand, the number of companies that confirm conducting this type of activity is relatively low. To verify those assumptions, a segmentation analysis of the set was performed using two analytical methods: 1) Ward’s clustering method, by means of which 3 segments were identified; and 2) Kohonen’s self-organizing map (SOM), where 4 segments were identified. The segmentation carried out by means of two different methods confirmed that there is considerable variation between the criteria distinguishing particular subgroups of entities within the high-tech population. Segmentation by means of Ward’s method produced a visible gradation of companies in terms of their export activity and scientific activity, understood as: patenting, obtaining certification and cooperation in the field of research (or running own laboratories). On the basis of this segmentation, two growth segments were distinguished containing the exporting companies and the scientifically active companies (the segments differ in their level of development). The third segment includes companies that maintain their status quo rather than develop. Using the self-organizing map, four segments were distinguished. This type of segmentation also distinguished between companies with a lower and a higher level of exports and scientific activity. However, this description was enriched by adding new distinctive features. Thus, segment 1 included companies that were active in terms of exports and scientific research, but did not hold patents. Whereas segment 3 included companies that were active in terms of exports and held patents. Segment 4, the characteristics of which are very similar to segment 1, has the biggest foreign capital share of all groups. Segment 2, the specification of which is similar to that of segment 3, based on a cluster analysis, does not compare favorably with the other segments. It contains companies that currently do not have many features conducive to development. Based on the obtained results, it should be concluded that the strongest criteria differentiating Warsaw high-tech companies are, in the order of importance: tt export activity; tt scientific activity, understood as: obtaining certification, cooperation with research centers (or running own laboratories), holding patents; tt searching for and employing new workers; tt share of foreign capital in the form of ownership; tt preference of B2B sale over B2C sale. 43 KATARZYNA ROSTEK, AGNIESZKA SKALA summary The presented results of the study on the Warsaw high-tech population revealed that these companies are usually micro-enterprises involved in the manufacture of computers, electronic and optical equipment, with the dominating form of domestic ownership. However, the segmentation analysis of this group identified two subgroups, significantly different than the population’s average – segment no. 1 (enterprises active in the export/import area) and segment no. 5 (enterprises with the dominating form of foreign ownership). An analysis of the data supplemented with the results of a survey of websites indicated that Warsaw high-tech enterprises are developing companies (they employ new employees, own patents), operating in international markets (exporting), who positively assess their market activity and innovativeness. The segmentation analysis revealed two sectors that stood out: enterprises active in exports and enterprises with foreign capital share, supplementing the previously performed analyses. It appeared that exporting enterprises are particularly active in certification processes and cooperation with scientific centers. This analysis also identified an additional segment of companies active in the B2B area and employing new personnel. This is the basis for the most important criteria potentially shaping the development of Warsaw high-tech enterprises. These are mainly: export activity and cooperation with scientific centers, and secondly: increasing employment and foreign capital share in the ownership structures of companies. During this study a need arose for defining a standard procedure of gathering and verifying web data. Therefore, a method for enriching the analyzed data was created, which can be implemented in manual as well as automated survey studies of enterprises via their websites. The proposed method is a starting point for defining the design assumptions of an IT tool, standardizing the collection and use of web data for supplementing basic data. The presented research results and a draft of the method are a starting point for an in-depth analysis of Polish high-tech sector enterprises, aimed at answering the question on the features that characterize this sector and differentiate it from others. The revealed conclusions lead to a general observation that the PKD classification cannot be a reliable measure, because it generates many false assumptions. During the study, the scope of these errors was found to be surprisingly high and therefore the coherence between the activities that companies declared in the GUS databases and the actually performed activities (i.e. described on the company’s website) was diligently verified. The next stage of the in-depth study had two goals. The first one included gathering further information necessary for the creation of an image of the Warsaw high-tech sector, reliable and reflecting the real nature of the sector. The second goal was to analyze particularly prospective groups of enterprises, 44 A Profile of the High-Technology Manufacturing Sector in Warsaw identified at this stage, and to create their in-depth characteristics. This is to answer the question whether, and if yes, to what degree, the high-technology sector is exceptional in comparison to other sectors and whether it really has over-proportional development potential, justifying the specific attitude towards these entities, e.g. in the distribution of public funds. The issue of the methods that can be implemented and are worth implementing to give the answers to the above questions is a parallel, equally important research issue in the analyses. References [1] Acs, Z., How is entrepreneurship good for economic growth?, Innovations, 1(1), pp. 97–107, 2006. [2] Eurostat, Indicators of High-tech industry and knowledge-intensive services. Annex 3 – High-tech aggregation by NACE Rev. 2., 2014. [3] Eurostat, Indicators of High-tech industry and knowledge–intensive services, Annex 5 – High-tech aggregation by SITC Rev. 4 High-technology products., 2014. [4] Matusiak, K.B. Wysoka Technika. in: Matusiak, K.B. (ed.), Innowacje i transfer technologii. Słownik pojęć (ed. 3, pp. 328–331). Polska Agencja Rozwoju Przedsiębiorczości, Warsaw, 2011. [5] Trajtenberg M. (2001). Innovation in Israel 1968–1997: a comparative analysis using patent data. Research Policy, 30(3), pp. 363–389. [6] Turowski K. (2007). Mechanizm rozwoju sektora wysokiej techniki w warunkach polskiej gospodarki. III Konferencja Naukowa z cyklu Wiedza i Innowacje. Uniwersytet Jagielloński, Collegium Novum, Kraków. url: http://www.instytut.info/IIIkonf/referaty/1a/turowski.pdf. [7] Zakrzewska-Bielawska, A., Relacje między strategią a strukturą organizacyjną w przedsiębiorstwach sektora wysokich technologii, Zeszyty Naukowe Politechniki Łódzkiej, Vol. 1095, 2011. 45 Magdalena Kubów Entrepreneurship in Sports – The Local Dimension. A Case Study of Warsaw ABSTRACT The basic purpose of the article is to present the local determinants of entrepreneurship development in the fast-developing sports industry in Warsaw. The purpose of the research is to present the external factors of entrepreneurship development in the sports industry in the context of Warsaw. The field research, which was the main part of my research project, was done by means of the anthropological interview method. The research done so far reveals that entrepreneurs running their businesses in Warsaw can see the development potential resulting from working together with the city. During interviews, entrepreneurs outlined the areas of possible activities. The local government is a partner for the sports industry entrepreneurs who run their businesses in Warsaw. The project tackles an area that is interesting from the research point of view. This is due to the fact that so far no research taking into account such a wide context has been done in this area. My research is carried out in an environment which is hardly ever explored. A great need for contextual research on the entrepreneurship phenomenon has been recognized. JEL Classification: L2 Keywords: entrepreneurship, sports industry, local conditions 47 Magdalena Kubów Przedsiębiorczość w sporcie w wymiarze lokalnym. Studium przypadku miasta stołecznego Warszawy ABSTRAKT Celem niniejszego opracowania jest przedstawienie lokalnych uwarunkowań rozwoju przedsiębiorczości w branży sportowej w Warszawie. Uwypuklono także aspekt związku między przedsiębiorczością w sporcie w regionie a jego rozwojem. Badania terenowe, stanowiące zasadniczą część mojego projektu badawczego, są przeprowadzane z wykorzystaniem metody badań jakościowych – wywiadu antropologicznego. Część empiryczna poświęcona została na zaprezentowanie fragmentu wyników badań własnych dotyczących lokalnych uwarunkowań rozwoju przedsiębiorczości w branży sportowej. Wyniki badań wskazują na to, że przedsiębiorcy z branży sportowej dostrzegają możliwości współpracy z miastem. Pogłębienie rozumienia zjawiska przedsiębiorczości z uwydatnieniem specyfiki określonej branży w kontekście regionalnym jest tematem istotnym, gdyż tak ściśle zawężony obszar nie podlegał eksploracji na gruncie polskich badań naukowych. Słowa kluczowe: przedsiębiorczość, rynek sportowy, uwarunkowania lokalne 48 Entrepreneurship in Sports – The Local Dimension. A Case Study of Warsaw INTRODUCTION Sports is a significant area of the economic and social life. It is a result of both the policies of developed countries and the growing awareness of people with respect to the social and health benefits of practicing sports. The industry is functioning and developing in specific institutional, economic, social, cultural, historical and technological conditions. In the literature Kaczyński noticed that “the world of sport is a very important participant of the market game” (Kaczyński, 2007, p. 196). In the literature on the subject a lot of authors emphasize the aspect of economic significance of the sports sector in the whole economy of the country (Goldsby, Kuratko, Bishop, 2005; Godlewski, 2012). In the last years we can observe a raise in the value of the sports sector and its influence on the upswing of other sectors of the economy (Godlewski, 2012). As Pedersen, Miloch and Laucella noticed in the literature, because of its enormous size the sports industry is best understood when its various components are categorized into segments (Pedersen, Miloch and Laucella, 2007). One of the most widely accepted segmentation models was developed by Pitts, Fielding and Miller, sport management professors. “The three main segments are: tt the sport performance segment (e.g. sport businesses, fitness and sport firms, amateur and professional athletics); tt the sport production segment (e.g. outfitting products); tt the sport promotion segment (e.g. the media, sponsorship)” (Pitts, Fielding, Miller, 1994, p. 176). In 2010, according to the Report on the condition of the small and mediumsized enterprise sector in Poland elaborated by the PARP (Polish Agency for Enterprise Development), in Poland, there were 71,614 enterprises classified as businesses related to culture, entertainment, sports and recreation. The vast majority of them operated in the private sector (64,358) and 7,256 of them in the public sector. As regards newly established enterprises, only in 2011, 7,386 entities were created in the industry, of which a considerable number (7,189) belonged to the private sector (Tarnawa, Zadura-Lichota, 2012). The branch data is presented in statistical tables in a considerably general way, which is an essential limitation as far as my research area is concerned. 49 MAGDALENA KUBÓW THE POTENTIAL OF WARSAW AS AN ENTREPRENEURIAL CITY IN THE SPORTS AREA Warsaw is a special place, having multiple functions – as the capital of the country, the capital of the region, and finally, a European metropolis. It is the place of living and residence for over 2 million people. Since the beginning of the transformation the economic development of Warsaw is undergoing dynamic changes. Warsaw plays a significant role and holds a strong position on the national map of entrepreneurship. In Warsaw, there are approximately 146 thousand business entities, which amounts to 50% of active entities in the Mazovia region and over 8% of all enterprises in Poland. This means that every 12th active Polish entrepreneur has their registered office in Warsaw. The current Warsaw economy is based on the service sector, which employs over 70% of the city labor force. In 2011, in the Mazovia region, there were app. 10 thousand enterprises working in culture, entertainment and recreation (15.3% of all enterprises of this kind in Poland). Half of them did business in Warsaw (Strategia Rozwoju Województwa Mazowieckiego do 2030 roku Innowacyjne Mazowsze – “The Mazovia Voivodeship Development Strategy until 2030 Innovative Mazovia”, p. 30). The aspects of entrepreneurship in sports in Warsaw can be analyzed based on the studies conducted within the framework of the project “The Capital City Forum of Entrepreneurship” (Stołeczne Forum Przedsiębiorczości) – a project of the City Council Office and the Kozminski University (ALK). THE ROLE OF LOCAL GOVERNMENTS IN ENTREPRENEURSHIP IN SPORTS DEVELOPMENT. CONTEXT OF DOCUMENTS Warsaw is a special place, having multiple functions – as the capital of the country, the capital of the region, and finally, a European metropolis. It is the place of living and residence for over 2 million people. The potential for entrepreneurship development in Warsaw is related to, among other things, the strategy of the Capital City of Warsaw. In this document sports is regarded as a significant element of city promotion and development. In 2005 the “Development Strategy of the Capital City of Warsaw until 2020” (Strategia Rozwoju Miasta Stołecznego Warszawy do 2020 roku) was adopted. This strategy regards sports as an essential element of the city social policy. In 2008, the Council of the Capital City of Warsaw adopted as its resolution the document “The Warsaw Social Strategy” (Społeczna Strategia Warszawy). This document also considers sports to be an important factor for developing human capital and social capital. 50 Entrepreneurship in Sports – The Local Dimension. A Case Study of Warsaw Finally, in 2010, the Sports and Recreation Department of the City Council Office of Warsaw adopted a document entitled The Strategy of Sports Development in Warsaw until 2020 (Strategia Rozwoju Sportu w Warszawie do roku 2020). Moreover, on the central level, there is a document entitled Strategy of Sport Development in Poland until 2015. The strategy that is described in the document aims to establish the direction of sports development in general for the country as a whole. The potential for entrepreneurship development in sports in Warsaw, against the background of city development priority objectives, is huge. Entrepreneurship in the sports industry, against the background of the tasks outlined in the strategy, manifests itself in numerous opportunities of collaboration between entrepreneurs as well as the district sports and recreation departments. The entrepreneurs who were interviewed during the field research focused on this aspect. In the next part of the article I will present information about my research project and the main results. RESEARCH PROJECT The basic scientific purpose of my project is to widen the knowledge on the determinants of entrepreneurship development in the fast-developing sports industry. My objective is to characterize the ways of running business in the sports industry, taking into account such a wide context of factors. Moreover, I take into account the internal conditions of entrepreneurship development in the sports industry. The hypotheses concern both the aforementioned external and internal conditions: 1) Cultural and institutional determinants play a key role among the external factors of entrepreneurship in the sports industry. 2) Passion, interests and sports experiences are the main sources of business ideas for entrepreneurs from the sports industry. The main purpose of the study is to present the external and internal factors of entrepreneurship development in the sports industry. I am interested in what role a wider social, cultural, legal and economic context plays in the development of enterprises in this industry. As regards the internal determinants, my goal is to describe who the entrepreneurs working in the sports industry are and what competencies they possess. Moreover, I am interested in how they define and shape their social roles. While describing the research area, I am going to concentrate on recognizing the possibilities of shaping a specific culture of the sports industry companies. Considering the above, the research objectives of the project are: tt characterizing the conditions of business activity in the sports industry while taking into account the working environment of the entrepreneurs from this industry; 51 MAGDALENA KUBÓW recognizing the nature of business activity in the sports industry as regards the external factors; tt characterizing the method of shaping social roles by entrepreneurs from the industry and the key factors in this process; tt describing the culture of the companies working in the sports industry. tt The account of meetings and in-depth interviews with sports industry entrepreneurs are to depict how particular behaviors and relationships may develop in other companies. The project tackles an area that is interesting from the research point of view. This is due to the fact that so far no research taking into account such a wide context has been done in this area. Thus, the gap will be completed. The project outcomes may be crucial to the discipline. Deepening the understanding of the entrepreneurship phenomenon while highlighting the nature of a particular industry – the sports industry – is a significant subject matter for several reasons. First, by focusing on the topic of entrepreneurship in sports I would like to fill a niche that I have noticed. Specialized literature mentions the fact that studies on entrepreneurship carried out in a given industry are extremely valuable because of the possibility of highlighting the nature of business activity (Gelderen, Masurel, 2012). A great need for contextual research on the entrepreneurship phenomenon has been recognized. My research is carried out in an environment which is hardly ever explored. Doing preliminary literature research, I did not encounter a study devoted strictly to the industry that is going to be the subject of my interest. What is more, there is no study covering such a wide context of external factors. The issues that I am interested in are, however, more and more often tackled by the leading academic journals devoted to entrepreneurship (Goldsby, Kuratko, Bishop, 2005; Ratten, 2011; McNamee, Fleming, 2007; Roy, Goss, 2007; Sheth, Babiak, 2010). Touching on the entrepreneurship determinants in sports and presenting the potential to generate entrepreneurial chances in this area, I am becoming part of the present global research trends. While there is a significant number of theoretical studies on entrepreneurship in general, the project devoted to entrepreneurship in a particular industry – the sports industry – that I have chosen seems to be inventive in comparison. Such a strictly narrowed area has not yet been subject to exploration in Polish academic studies, which is why it is extremely difficult to find research outcomes obtained so far. On the one hand, it is a chance and a challenge for me as a researcher. On the other, I can see that it is an essential limitation. As there are no references to other research outcomes, while concluding I will strictly follow the canons of anthropological work and make sure that the conclusions will not go beyond the empirical material. The research and theoretical significance of the project will be shown in the following areas: 1) knowledge – improving the knowledge in the area of generally understood entrepreneurship and the determinants of its development; improving 52 Entrepreneurship in Sports – The Local Dimension. A Case Study of Warsaw the knowledge regarding the nature of the enterprises connected with the industry; 2) systemization – the existing Polish and, first of all, foreign studies concerning the issues covered by the project will be systemized and presented in a synthetic form as part of the studies that are to be one of the final effects of the project; 3) recognizing the nature of running a business in Poland taking into account the wide context of entrepreneurial activity; 4) verification of popular opinions on entrepreneurship, entrepreneurs and the sports world taking into account the nature of the industry. A lot of publications from other countries are the result of understanding sports as a part of the economy. Unfortunately, there is a lack of such publications in Poland. Although there is some research and publications on defining and delineating the sports industry in other countries, there is a lack of that in Poland. For the purpose of this research project I use the definitions of sport and sports industry from Pitts, Fielding and Miller. In my research project I take into account entrepreneurs from the Sport Performance Segment. As a product, “sport performance” is offered to buyers primarily in two ways: as a product for participants and as a product for spectators. The most important for me as a researcher is the area where entrepreneurs offer sport performance to buyers as a product for participants. The expected theoretical effects of the project include improving the knowledge on the entrepreneurship development determinants with a special consideration of the nature of the examined industry. The expected influence of the research outcomes on further scientific advancements includes setting further directions in research on industry entrepreneurship factors through comparative analyses in this matter between Poland and other countries. It seems extremely interesting to conduct such analyses in the USA, the cradle of entrepreneurship and the source of numerous behavior models for the development of special industries, such as the sports industry. The general schedule of the research In order to conduct a thorough analysis of the examined problem, the research was carried out in several stages, which conforms to the principles of qualitative research methodology. I started with preliminary literature research. In the beginning I set the research area, problem, objectives and questions. The main stage of my research included non-directive interviews with entrepreneurs. The pilot research outcomes indicate that entrepreneurs pay attention to a wide institutional, social and cultural context of initiatives. Additionally, the pilot research revealed how widely the category entrepreneurship in sports may be understood and how diversified the group of entrepreneurs from this industry is. Thanks to the pilot research outcomes, 53 MAGDALENA KUBÓW I noticed the need to clarify what group of entrepreneurs will be examined at the stage of the real research. During the real research, I am going to focus on enterprises dealing with organizing sports, according to the perspective of Pitts, Fielding, Miller (Pitts, Fielding, Miller, 1994). My study did not cover entities producing sports goods, because they only manufacture and provide the necessary gear and accessories for practicing sports. As they do not directly deal with organizing sports, they do not have a crucial influence on the situation in the discussed market. I also excluded the entities that deal with sports promotion, meaning all kinds of sports media or sponsors. Those entities have an indirect influence on the discussed industry development and that is why I do not include them in my field research. The selection of interviewees was based on purposive sampling taking into account the diversity of potential activities conducted by entrepreneurs in this area. The names of the enterprises are anonymous, which results from the specificity of the research methods that I use in the project. The interviews were unstructured. A crucial factor is the researcher’s orientation to a continuous problematization – possessing the so-called anthropological frame of mind (Czarniawska, 2004). Methodology The field research, which is the main part of my research project, was done by means of the anthropological interview method. While selecting the research method, one should take into account that various paradigms of research make me, as a researcher, adopt the appropriate methodology. As a researcher of the determinants of entrepreneurship development in sports, I decided to select qualitative methods. I conducted 21 interviews with entrepreneurs from the sports industry, who are organizers of sports. In my study the selection of a method was strictly defined: it was ethnographic qualitative research on entrepreneurs in the sports industry in their natural and real business environment. Ethnographic methods allowed me as a researcher to describe the phenomena in a social context and to understand the social actors, who are, according to me, the entrepreneurs working in the selected industry (Kostera, 2003, p. 10). According to Kostera it is “the most frequently used type of interview in ethnographic research, and its character results from the lack of standardization” (Kostera, 2003, p. 123). The anthropological interviews that I conducted with the entrepreneurs were unstructured and non-directive. According to the guidelines by Czarniawska, as a researcher, I made an attempt to encourage my interviewees to tell stories about, for example, the beginnings of their business and developing their organization. This allowed me to understand the logics they followed while identifying or creating an entrepreneurial chance and deciding on its accomplishment within their business activity in sports (Kostera, 2003). In the later stage of the research process, I am going to apply another research method taken from ethnography, namely document analysis. As 54 Entrepreneurship in Sports – The Local Dimension. A Case Study of Warsaw Kostera points out, “organizations produce numerous documents, including those addressed to their own members and those addressed outside, to the environment” (Kostera, 2003, p. 14). I am going to conduct an analysis, with the content of enterprise websites being the most important subject of my analysis. Moreover, I will do a critical analysis of culture as regards the analysis of texts coming from the mass media. I will analyze materials from the press. Generally, in my research, a special emphasis was put on the examined industry context and thanks to this, I fulfilled one of the basic principles concerning ethnographic methodology, thus ensuring a complete methodological correctness. As Glinka noticed (Glinka, 2008), it is characteristic of the research paradigm that I selected that ethnographic methods (Garfinkel 2007, Kostera 2003), procedures of the grounded theory (Glaser and Strauss 2009; Konecki 2000; Charmaz, 2009) and various methods of culture text analysis (Denzin and Lincoln, 2010; Kostera, 2003) are applied. Referring to researchers’ opinions, the abovementioned author points out that applying those methods may appear to be useful in the analysis of the entrepreneurship phenomenon. The methods are characterized by the fact that a researcher’s objective is to verify the hypotheses formulated at the beginning of the research. A researcher’s goal is to articulate the working hypotheses emerging during the research. Thus, the researcher’s task is to answer research questions as completely as possible (Glinka, 2008, p. 51). To describe the determinants of entrepreneurial activity in a specific industry, I found the methodology of qualitative research to be the right one. It is worth mentioning that the selection of a method results from the research purpose. I would like to understand entrepreneurship in sports, and I am seeking this understanding – following Kostera’s guidelines – by interpreting the examined phenomena. Thus, concluding will be possible, but it must be based on similarity and social significance (Kostera, 2003, p. 9). Miles and Huberman express the opinion that qualitative research, by emphasizing experience, “is adjusted to recognizing meanings which people attribute to events and processes, and adjusted to relating these meanings to the people’s social environment” (Miles, Huberman, 2000, p. 10). According to the abovementioned authors, whose views are similar to Geertz’s (Geertz, 1973/2005), an unquestionable strength of qualitative research is its richness and comprehensive nature as well as the possibility of revealing complexity itself (...) while the data coming from the field deliver dense descriptions placed in the real context (Miles, Huberman, 2000). To make the research material multi-faceted and to avoid the accusation of unreliability, I applied triangulation, which is a process of making research more trustworthy (Kostera, 2005). This entailed that I used the empirical material gathered during the field research, and at the subsequent stage, I analyzed the material from the examined enterprises (document analysis, review of communication formulated by websites) and the media communication. The supporters of qualitative research often use texts as the supplementing sources of data (Charmaz, 2009. p. 55). I used the empirical mate- 55 MAGDALENA KUBÓW rial gathered during the interviews with the entrepreneurs as the basis of the project argumentation. I fulfilled the methodological requirement of triangulation by applying different ethnographic research methods. To follow the principles of the research procedure, I took notes and made observations. At the analysis stage, I used the grounded theory procedures. As Charmaz noticed, the methods of the grounded theory enable developing theoretical aspects of ethnographic research. The grounded theory can make it easier to penetrate the issues emerging in the examined field (Charmaz, 2009, p. 38). In the specialized literature on the subject it is pointed out that ethnographers who use the grounded theory can reach deeply into experience and obtain interpretative results. With the use of triangulation, it was possible to present the conclusions established in the field. While interpreting the research outcomes based on the interviews, I followed the guidelines formulated as part of the grounded theory (Glaser, Strauss, 2009). All the interviews were transcribed. The gathered empirical material was coded. Coding reveals categories and based on them, it is possible to compare different parts of the empirical material (Hensel, Glinka, 2012, p. 95). While interpreting the research material, I aimed at finding repeating themes. When coding the research material, such themes constituted categories. Thanks to the interpretation of the research results, it was possible to create a picture of entrepreneurship in sports, understand the nature of the functioning of entrepreneurs and the determinants that are crucial to shaping entrepreneurship in this specific industry in the regional context. Opportunities for cooperation of the local governments and enterprises of the sports industry in Warsaw – some results of the research project The research done so far reveals that entrepreneurs running their businesses in Warsaw can see the development potential resulting from working together with the city. During the interviews the entrepreneurs outlined the areas of possible activities. The local government is a partner for the sports industry entrepreneurs who run their businesses in Warsaw. The entrepreneurs enthusiastically talked about the opportunities resulting from such a form of collaboration with the city and about the relationship between them and the city council office. “I work together with several districts, with local councils. The Żoliborz district, the Bielany district are great examples of promoting an active lifestyle.” (ZT) During the interviews, one of the entrepreneurs explained the mechanism of starting collaboration with the city. He treats the local government as one of his key customers, or even partners, with whom he accomplishes all kinds of sports and recreation undertakings and projects. “It is like that – when a tender or a competition of offers is announced, then there is a specification which you have to conform with and a part of 56 Entrepreneurship in Sports – The Local Dimension. A Case Study of Warsaw ideas – when there is a general category for doing something, we suggested just a kind of stands or activities. If there was something clearly defined, if a specification was detailed, we just adjusted to it.”(SF) The beginning of cooperation with the city – in the account of one of the entrepreneurs – is not easy for everyone. Sometimes it is difficult to start this kind of cooperation. Trying to do it, one of the entrepreneurs offered to the city as much as he could to be noticed. “Every event, every kind of sport and recreational activity. For the Children’s Day Celebration, for every kind of local celebrations – everything in a sports context.” (BS) Establishing cooperation between an entrepreneur and a local government is sometimes made possible through a network of personal contacts. A network of contacts is in that case one of the determinants of gaining valuable information from the opportunity identification point of view. “I do not remember who the originator was, I wanted to create fitness lessons for seniors, and at the same time the mum of a friend of mine was working in one of the districts. I told her about my idea and it turned out that there is an opportunity to finance my project for seniors in the district.”(SF) A project realized in cooperation with the local government can be a huge challenge. A preliminary plan and optimistic approach do not always lead to a successful venture. “The fitness activities were very cheap for the inhabitants. At the start of the project they (seniors) took part in these activities regularly, but then it was a difficult moment when the financing from the district stopped. This venture was weakly promoted in the local community, and it turned out to be a failure.” (SF) A network of personal contacts is a very important factor, but more importantly, the mechanism of establishing cooperation is relatively universal. “We have a very friendly district, Bemowo. The local authorities promote sports very strongly, but it is necessary to fulfill the requirements and they can’t just take money out of their pockets and give it to you. They can support, help and advise us. (...) And they do this. There is a great woman there (...). And in other districts, I haven’t got much experience.” (SF) In this case it is worth emphasizing that the entrepreneur points to the need for flexibility. The entrepreneurs positively assessed co-working with the local government, outlining how this partnership was established. Networking is not necessary to appear in the local market. An entrepreneur who organizes sports events, for example, pays attention to the opportunity of participating in tender proceedings. Winning such a tender, fulfilling an order may become the beginning of a long-lasting partnership. “I find working with the city very positive. I organized two recreation events for the Bemowo district, which is part of the Capital City of Warsaw. I started the partnership after winning a tender and more precisely a competition of offers and I find this collaboration very positive.”(TS) 57 MAGDALENA KUBÓW Sometimes it is very difficult to respond to questions regarding the cooperation with local governments. One of the entrepreneurs found it difficult to evaluate this form of partnership. “For me the cooperation with the local government is a difficult subject. Every local government unit in every Warsaw district has got its budget planned in advance. Sometimes, unfortunately, only a small amount of money is dedicated to sports activity in the district. I am happy because of the fact that when there is a situation that in the district they have any extra money, they call and the say – let’s do something! Any sports event, sports activities for inhabitants!”(ZT) When making a critical assessment of the situation of tenders, one of the entrepreneurs showed that he is aware of the “rules of the market game”. “I know that there are rules, that there must be two applicants (firms) and the most important is the price. But this is not a good solution. Sometimes this low price for the service is connected with a low quality of it.”(SF) Looking at the situation realistically and critically, the examined entrepreneurs expressed their opinions on the collaboration with the city taking into account the aspect of the relationship between an entrepreneur and official. Generally speaking, the opinions of the industry entrepreneurs regarding the officials were positive. The interviewees praised the professionalism of the officials in the sports, recreation and culture departments. “Generally, they are smiling, not stressed out, slightly older, but having a very positive attitude to life, to what they do. I could see that they were great people, I would like to meet such people more often.” (TS) “As far as Bemowo is concerned, I can speak highly of them. Yet, there is a huge bureaucracy machine, which is difficult to move. First of all, I can’t see solidarity in society, people do not want to do something jointly.” (SF) The professionalism of local government workers was assessed by one of the entrepreneurs in the context of their approach to his personality. “I felt like they treated me as a person who knows what should be done. They did not try to disturb me in my work, they did not try to prove that they are the specialists in the field of sports. They trusted my knowledge and my work experience.”(TS) One of the entrepreneurs emphasized the open attitude of help presented by the local government worker. “Yes, yes, they were very helpful. The formal kind of contact with them is between 8 A.M and 4 P.M.. But the worker of the sports unit gave me her private phone number and there was the possibility to contact her at any time.”(TS) One of the entrepreneurs preferred the activity and openness of the officials in the sports departments over the activity of the district as a whole. If the employees are open and willing to act, the district has a development potential, and this, in turn, results in opportunities to fulfill orders by the industry entrepreneurs. 58 Entrepreneurship in Sports – The Local Dimension. A Case Study of Warsaw “The people that work in two districts – Żoliborz and Ursynów, these are very active districts in the field of sports. With a low budget you can organize great events and Zumba fits in here perfectly well.” (ZT) THE DEVELOPMENT POTENTIAL AND PERSPECTIVES OF COOPERATION IN THE ACCOUNTS OF THE ENTREPRENEURS The industry entrepreneurs can see the perspectives of working together with the city. Looking at this issue realistically, they pointed to the fact that this is one of the ways to find fulfillment in business – not the only or dominating, but a considerable one. “If there is a need, I will be willing to look for offers of this type. But they appear occasionally and it is always precisely defined who must fulfill what kind of requirements connected with experience as well as formal issues, who can enter, and unfortunately, I am not able to run as a potential contractor in all the events I would like to take part in, and this is because of those limitations.” (TS) The entrepreneurs showed a lot of advantages of starting a collaboration with the city. “It is worth starting a collaboration with the city, with the district, and based on their ideas, to do something useful; at the same time you get a money injection which lets you accomplish some projects and achieve your goals.” (ZS) One of the entrepreneurs shortly summarized his cooperation with the city council, outlining the directions for future collaboration. “Last year we started benefitting from the city financing programs, where I found out that you can do great things with children, for example, because a project of swimming lessons for the disabled was launched. We are also doing a program: “Seniors older and fitter”, so we collaborate with them in two ways. It is worth starting a collaboration with the city, with the district, and based on their ideas, to do something useful; at the same time you get a money injection which lets you accomplish some projects and achieve your goals.” (AQ) SUMMARY Sports has become a phenomenon that involves processes in the global economy and the economy of individual countries. Moreover, the sports sector significantly affects other sectors of the economy. In this article Warsaw is described as an entrepreneurial city, where sports is a tool for marketing and city development, and at the same time, it is a great area for entrepreneurship development. As demonstrated by the conducted research, there are many opportunities to develop entrepreneurship in sports in Warsaw through collaboration with the local government. The interviewees widely 59 MAGDALENA KUBÓW outlined the potential areas of such activities and assessed their usefulness as regards the functioning and development of their businesses. The entrepreneurs showed a lot of benefits of that kind of partnership. Moreover, the entrepreneurs emphasized the key factors of the development of sports enterprises in Warsaw, especially the significance of a network of personal contacts and an alertness for opportunities. What is more, this article illustrates the associations and possibilities of cooperation between sports entrepreneurs and the district governments. The article describes examples of such projects, where entrepreneurs identify the entrepreneurial opportunities of cooperation with district governments. REFERENCES Charmaz, K. (2009). Teoria ugruntowana. Praktyczny przewodnik po analizie jakościowej. Warsaw: PWN. Czarniawska, B. (2004). Narratives in Social Science Research. London: Thousand Oaks, New Delhi: SAGE Publications. 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Wasilczuk, Krzysztof Zięba The Impact of Urban Localizations on the Growth Possibilities for Small Firms ABSTRACT Purpose: The purpose of this study was to identify the differences in the profiles of firms and their owners in urban and non-urban locations and also to assess the impact of those differences on the possibilities of growth for firms from both types of locations. Design/methodology/approach: Based on the theoretical revision, a questionnaire was developed and administered to 1005 small firms in the selected powiats of the Pomeranian region in Poland. 436 small firms located in the urban powiats of Gdańsk, Sopot and Gdynia were then compared with 569 of their counterparts located in the outskirt areas of the Pomeranian region. The existing differences were identified and tested with the use of simple statistical techniques. Findings: We found that urban entrepreneurs are better educated, more experienced and more positively motivated. Their firms are more innovative, with more qualified employees and better access to entrepreneurial infrastructure. However, they are not growing better than non-urban ones. This is a powerful suggestion, meaning that all possible benefits coming from the urban environment may be balanced out by the accompanying disadvantages. Research limitations/implications: The research sample was limited only to the Pomeranian region. Some non-urban firms were located in small towns, which makes them somewhat similar to urban firms. The research should be continued using a more polarized sample, where the differences between urban and non-urban firms could be more significant. Originality/value: The research sheds some light on the influence of urban and non-urban location on the growth possibilities for SMEs, which remains an under-researched topic, especially in Poland. JEL Classification: L21, M13, P25, R39 Keywords: start-ups, firm growth, localization, profile of micro-firms 63 Julita E. Wasilczuk, Krzysztof Zięba Wpływ miejskiej lokalizacji na możliwości wzrostowe małych firm ABSTRAKT Cel: Celem badania była identyfikacja różnic między profilami firm oraz profilami ich właścicieli w zależności od miejskiej/pozamiejskiej lokalizacji firm. Ponadto, celem było zbadanie znaczenia tych różnic dla osiągania wzrostu przez firmy z obu rodzajów lokalizacji. Metodologia: W oparciu o studia literaturowe sporządzono kwestionariusz badawczy, którym przebadano 1005 małych firm z wybranych powiatów województwa pomorskiego. Porównano 436 małych firm zlokalizowanych w powiatach miejskich Gdańsk, Sopot i Gdynia z 569 firmami zlokalizowanymi na obszarach pozamiejskich. Zaobserwowane różnice przebadano pod kątem ich statystycznej istotności. Rezultaty: Miejscy przedsiębiorcy okazują się być lepiej wykształceni, bardziej doświadczeni i w większym stopniu wykazują się pozytywnymi motywacjami przedsiębiorczymi. Ich firmy są bardziej innowacyjne, częściej podnoszą kwalifikacje pracowników i mają lepszy dostęp do infrastruktury przedsiębiorczej. Jednakże nie rosną w tempie szybszym niż firmy pozamiejskie. To sugeruje, że korzyści płynące z lokalizacji miejskiej są równoważone towarzyszącymi im kosztami takiej lokalizacji. Ograniczenia badania: Badania były ograniczone jedynie do terenu województwa pomorskiego. Co więcej, niektóre firmy sklasyfikowane jako pozamiejskie były zlokalizowane w niewielkich miasteczkach, co czyni je nieco podobnymi do firm miejskich. Ten rodzaj badań powinien być kontynuowany z wykorzystaniem bardziej spolaryzowanej próby badawczej, gdzie zróżnicowanie obu grup podmiotów byłoby wyraźniejsze. Znaczenie: Przeprowadzone badania rzucają światło na problematykę wpływu miejskiej/pozamiejskiej lokalizacji małych firm na ich możliwości wzrostowe. W Polsce brak jest, jak dotąd, szczegółowych badań na ten temat. Słowa kluczowe: zakładanie firm, wzrost firmy, lokalizacja, profil mikroprzedsiębiorstwa 64 The Impact of Urban Localizations on the Growth Possibilities for Small Firms INTRODUCTION Region and especially the proximity of large cities has a tremendous influence on entrepreneurs. It applies to actual entrepreneurs already operating in the market, to potential entrepreneurs who are just considering starting up their business and to start-up owners. Certainly, so far much more attention has been given to entrepreneurs in cities and, as a result, we know more about starting a business in a city than running it in an urban environment. While analyzing the literature on the subject the impression is given that being a small firm in a big city is a great benefit. The most often stressed factor influencing the prosperity of small firms in big cities is the presence of a higher demand, easier access to support facilities and access to a knowledge environment, which makes it easier for firms to be innovative (Lee, Rodríguez-Pose, 2013). Additionally, the business creation rate is higher due to the presence of better developed education systems (Barreneche and García, 2014). It also seems that opportunity perception is regionally differentiated (Stuetzer, Obschonka, Brixy, Sternberg and Cantner, 2014). The interest in the topic of start-ups and setting new firms in the context of location gradually increases, even quicker than in entrepreneurship research itself (Sternberg, 2009). However we still know little about the advantages of being a firm in a big city. The number of publications is limited, therefore one can only expect that some of the factors suitable for starting operation in a city are also good for increasing the scale of this operation – for growth. The most often used proxy for growth of a firm is employment. This kind of data is much easier to obtain, especially when compared with financial statements from small firms, which are hardly available. Trying to identify what the possible benefits and disadvantages are of running a small firm in an urban environment, we decided to investigate the differences in the profiles of entrepreneurs and their firms. We also tried to link the observed differences with the alleged determinants of employment growth in small firms, which are relatively well identified in the existing literature. THE CITY AS A BUSINESS INCUBATOR The theory that the city is an incubator for entrepreneurship has been proved by quite a lot of researchers. No matter whether they use the reg- 65 JULITA E. WASILCZUK, KRZYSZTOF ZIĘBA istered number of new firms (Renski, 2011), the start-up intention (Stuetzer, Obschonka, Brixy, Sternberg and Cantner, 2013) or the self-employment start-ups (Eliasson, Westlund, 2012) as the entrepreneurship proxy, cities have a higher entrepreneurship rate than the suburban/rural locations. Generally, the city, and especially the metropolitan city, offers a good environment for starting and operating small firms. The difference between a city/urban environment and suburban/rural regions is not only in the population density (increasing the demand), but also in the quality of human resources, knowledge spillovers and entrepreneurship infrastructure, i.e. supporting agencies, possible networks, incubators, technology parks etc. The very first hypothesis about the relation between setting up firms and cities was formulated by Hoover and Vernon (1959), who stated that small manufacturing firms look for high density, easy access to space and of course human resources. This simple hypothesis, nowadays called the urban incubator hypothesis, was proved by its authors to be true on the basis of data from US cities, and then further supported by the work of Creamers (Struyk, Leone, 1976), mainly based on the data coming from manufacturing companies. Subsequently, investigators began to add more factors associated with the city, which may affect start-ups, like the innovation environment in cities, clusters of similar firms, as a co-opetition promises or knowledge spillovers. However, more recent researchers rather perceive specialization as a key factor, which helps new firms in starting up (Tödtling, Wanzenböck, 2003). This is more in line with the contemporary view on co-opetition, combining cooperation with competition, which is the feature of modern districts/clusters. In such an environment it is easier for start-ups and very new firms to benefit from the pool of knowledge and practice. Additionally, the specialization of the region/cities can bring tailor-made services. Those advantages can exist mainly in clusters of firms, which is mostly possible in cities. Nowadays, when developed economies are predominated by the service sector and not the manufacturing one, the urban incubator hypothesis seems to be even more convincing. Cities are the spaces where more citizens are looking for cultural, intellectual, habitual and other services connected with everyday life. The difference between the city and suburban/rural area in the context of service demand is even more obvious in Poland than in other western European countries. The idea of going out (for coffee, for dinner or just to sit, drink and talk) is almost nonexistent in Polish small towns and villages. This cannot be explained entirely with income differences; lifestyle differences between urban and rural areas come into play here as well. Some researchers state that it is not only the high rate of starts-ups that differentiates cities from peripheries, but also the characteristics of settled firms. In cities owners tend to possess better formal qualifications and they are involved in more technology- and knowledge-intensive products and services (Tödtling, Wanzenböck, 2003). 66 The Impact of Urban Localizations on the Growth Possibilities for Small Firms Despite the fact that research studies on entrepreneurship start-ups (at first referring only to production firms) have been conducted since the late 1950s (see Hoover and Vernon), authors dealing with this topic usually select new groups of factors affecting the process. As almost all of them are somehow connected with density and numbers of people, it may be concluded that the vast majority of them can be, in fact, derived from the first theory – the urban incubator hypothesis. The urban incubator hypothesis was based mainly on the higher density in cities than in a suburban/rural environment. This leads to higher demand, which is underlined in the market model, showing that the possibility to start up in an environment with an almost unlimited number of customers is much easier (Audresch, Fritsch, 2002). The resource model approach stresses the physical, financial, human and sociocultural resources, which are more available in bigger settings. Renski (2011) emphasizes skilled labor or producers and suppliers of intermediate goods. Moreover, indivisible public goods, such as infrastructure (also internet access), are not to be underestimated. While the milieu model relies on the role of the business climate – either physical or social, within this theory clusters and innovation networks can be analyzed, like the number of patents (Carlino, Chatterjee and Hunt, 2007), knowledge spillovers (Braunerhjelm, Acs, Audretsch and Carlsson, 2010), (Leyden, Link, 2013). But there is still no clear evidence that closeness to innovation hubs increases the activity or firms. However, a higher openness to cooperate, specialization in the sector and low entry barriers can definitely lead to a high density of SMEs. The career model refers to the fact that people very often start their activity in an environment that is well-known to them, which can be the place when they were born, where they worked or studied. As Sternberg states, it is important to differentiate between localization economies and urbanization economies (2009). The first are associated with the presence of other firms, which enables clustering together or gaining from knowledge spillovers (Leyden, Link, 2013). The latter refer only to the city itself with its infrastructure (human and technological) and higher density. However, in most cases, especially in Poland, both localization and urbanization effects go together, especially when we look at the service sector, which is chosen as a start-up activity by most entrepreneurs. It is the city where all the institutions operate that lead to creating the right atmosphere for start-ups, for example supporting agencies, incubators, business parks, universities. Apart from all the discussed advantages of higher density in a city/ urban area, there is also more competition in terms of customers, suppliers and grants for support. In case of Poland, for example, peripheral areas have a higher priority in granting money for entrepreneurship support. Higher costs of premises, congestions, a more anonymous environment are just a few potential disadvantages associated with locating a firm in a large city. 67 JULITA E. WASILCZUK, KRZYSZTOF ZIĘBA SURVIVING AND GROWING IN THE CITY One can predict that the advantages of setting up a business in a city also apply to company growth. However, good conditions for entry do not always mean good conditions for further performance. This especially refers to the young industries, with favorable conditions of entry, consequently leading to high competition (Stuart, Sorenson, 2003). Additionally, higher costs of operation, such as premises, municipal payments, including taxes, can be a burden for firms operating in a big city. Moreover, the higher density of firms makes the competition more demanding. On the other hand, some factors mentioned as favorable for start-ups can also be perceived as a future accelerator in the growth process. Renski (2009) analyzed new firms created in 1994 and 1995 for seven years to conclude about their performance. Generally, he found higher failure rates in cities, and at the same time, faster rates of employment growth. The explanation for the higher failure rates can be derived from the above-mentioned disadvantages of locating firms in big cities. It is a natural process of creating destruction. WHY FIRMS GROW The growth of firms is an area of entrepreneurship intensely studied for many years, but without much success – for an extensive literature review on growth see: (Coad, 2007). Some of the growth factors, however, have been confirmed in most of the studies reported in the literature. Some of them coincide with those that are referred to as conducive to start-ups in cities. This includes the existence of social networks. Extensive social networks lead to a better recognition of opportunities (Shane, 2000), and also help to understand risk factors. How social relations are important one can learn from Anderson, Dodd and Jack, who perceive entrepreneurs as a product of their social environment (2010). Extensive support for the innovation-growth relation thesis can be found in the literature, deriving from the seminal work of Schumpeter. Nowadays, a lot of research studies proved this relation (e.g. Thornhill, 2006, Coad and Rao, 2008, Coad, Blasco, and Teruel, 2013). This, in turn, goes hand in hand with the above-mentioned knowledge spillover, or the existence of university facilities, which in Polish conditions is the case only in large urban centers. Other factors that support the growth of firms are linked directly to the entrepreneur: the level of education, experience in the branch and in entrepreneurship, motivation, growth orientation, age (see more in Table 1). Faster growth of firms is influenced by greater experience of their owners (Nichter, Goldmark, 2009). 68 The Impact of Urban Localizations on the Growth Possibilities for Small Firms Table 1. Growth factors Factor Description Authors Higher education Some researchers point out that being too highly educated is not enough, while others shows that entrepreneurial skills go together with education. Storey, 1994 Davidsson, 1991 Barringer and Jonew, 2004 Omri, Ayadi-Frikha, 2014 Entrepreneurial experience Previous experience in business helps to avoid risk, increases the ability to recognize opportunity. Storey, 1994 Wasilczuk, 2005 Social and professional networks It increases access to information, capital, and intangible support, better opportunity recognition, helps growing through the use of an external network: clients, suppliers, competitors. Birley, 1985 Lechner and Dowling, 2003 Shane, 2000 Anderson et al., 2010 Growth orientations Those with growth plans and aspirations have higher incentives to achieve it. And those without growth orientations are not achieving their highest potential. Scott and Rosa, 1996 Wasilczuk, 2005 Planning Planning helps entrepreneurs to evaluate the potential of the firm, and set the path for growth. Storey, 1994 Zinger, LeBrasseur, 2003 Wasilczuk, 2005 Innovation Innovation keeps firms ahead of competitors. Coad, Blasco, and Teruel, 2013 Motivations Positive motives lead to higher possibilities of growth for firms. Gatewood, Shaver, Powers and Gartner, 2002 Geographic location: – providing pool of human resources – high buyer concentration – Being close to the cluster of firms helps to obtain better, qualified employees. – Demand concentration. – Renski, 2011 – Audresch, Fritsch, 2002 Source: own elaboration. RESEARCH PROBLEM AND METHODOLOGY In most studies the relation between localization and entrepreneurial activities is investigated with a focus on new venture creation, as researchers 69 JULITA E. WASILCZUK, KRZYSZTOF ZIĘBA use new firm formation as a proxy for entrepreneurship. However, as Renski (2009) pointed out, the “entry rate does not tell the whole story”. Apart from the creation of new firms, their survival and subsequent growth are just as important. In fact, relatively little is known about the relation between the success of entrepreneurs (measured as surviving or growing) and their location. Having knowledge about the factors that promote the growth of enterprises, we decided to investigate the characteristics of entrepreneurs and their firms in Tricity and the suburban/rural areas to examine the possibilities for growth in both types of locations. The research questions are as follows: 1. What are the differences in profiles of firms and entrepreneurs in both types of locations? 2. What is the impact of those differences on growth possibilities? Based on the theoretical revision, a questionnaire was developed and administered to small firms in selected powiats of the Pomeranian region in Poland. One of the main ideas behind the research was to find out what the major differences are between urban and non-urban small firms. Therefore, small firms located in the urban subregions of Gdańsk, Sopot and Gdynia (three cities of more than 750,000 inhabitants in total, forming a joint metropolis in the northern part of Poland) were compared with their counterparts located in the outskirt areas of the Pomeranian region. The existing differences were identified, investigated using contingency tables, verified with the use of simple statistical techniques and explained as much as possible. Research sample The research was carried out within the framework of the third edition of the Pomeranian Economic Observatory (PEO III). The research sample was composed of small firms from three groups of subregions (powiats): 1. The HU group: the subregions of Nowy Dwór, Sztum and Malbork (three non-urban subregions with the highest unemployment rate at the time of developing the methodology of PEO III). 2. The LU group: the subregions of Kartuzy, Wejherowo and Puck (three non-urban subregions with the lowest unemployment rate). 3. The URBAN group: the urban subregions of Gdańsk, Sopot and Gdynia. The choice of firms was limited to those that were set up in 2005 or later and – at the time of the research – were employing at least one employee (apart from the owner). This was a way to eliminate pure selfemployment (employees forced by their employers to set up their own business in order to reduce labor costs or businesses being a workplace exclusively for the owner). The total number of firms was 1005, out of which 160 belonged to the first group (Nowy Dwór, Sztum and Malbork), 409 belonged to the second group (Kartuzy, Wejherowo, Puck) and the 70 The Impact of Urban Localizations on the Growth Possibilities for Small Firms remaining 436 belonged to the urban group of Tricity (Gdańsk, Sopot and Gdynia). The difference in size between the first group and the other two is due to the limited availability of firms meeting the criteria set in the methodology. General information about the subregions The most intense economic activity was manifested by people living in Sopot, where per 1000 people almost 200 companies were registered (Fig. 1). The powiat of Sopot was followed by Gdańsk and Gdynia, both showing practically the same prevalence rate of businesses. This high rate of entrepreneurship in the whole URBAN group was quite predictable. The highest prevalence rate in non-urban powiats existed in the powiat of Puck (belonging to the LU group), which directly borders Gdynia. The powiat of Nowy Dwór was the next one with as much as 106.2 enterprises per 1000 inhabitants. And although it is bordered by Gdańsk, the unemployment rate was one of the highest in the region. Other four powiats, those belonging to the LU (Kartuzy and Wejherowo) as well as the HU group (Sztum and Malbork) had a prevalence rate ranging between 82.8 and 92.9. HU Malbork Nowy Dwór Sztum LU Puck Kartuzy Wejherowo URBAN Sopot Gdynia Gdańsk 0 50 100 150 200 250 Fig. 1. Number of registered firms per 1000 citizens in the researched powiats, based on GUS, 2008 The registered unemployment rate in 2008 in the surveyed powiats is shown in Figure 2. In the URBAN group the unemployment rate was between 1.9% and 2.6%, in the LU group: 6.3%–8.4%, while in the HU group: 16.9%– 21.9%. 71 JULITA E. WASILCZUK, KRZYSZTOF ZIĘBA 25.0% 21.9% 20.0% 17.8% 16.9% 15.0% 10.0% 5.0% 8.1% 1.9% 6.3% 8.4% 2.6% 2.3% 0.0% Fig. 2. Unemployment rate in 2008 in the researched powiats Findings and discussion The general conclusion from our research is that urban firms and their owners do not differ from their non-urban counterparts in any dramatic way. In fact, we found more similarities than we had expected. Nevertheless, some important and statistically significant differences have been identified. Urban entrepreneurs clearly tend to be better educated. Nearly 40% of them graduated from universities comparing with approximately 25% university graduates among non-urban entrepreneurs (Tab. 2). This supports the general urban incubator hypothesis about better education of entrepreneurs starting up their businesses. Table 2. Education of entrepreneurs (p-value<0.001) Education Entrepreneurs: HU n LU URBAN % n % n % 35 21.88% 112 27.38% 170 38.99% Non-higher 111 69.38% 239 58.44% 168 38.53% No answer 14 8.5% 58 14.18% 98 22.48% Higher Source: Own calculations based on PEO III data. Another advantage of urban entrepreneurs is based on their entrepreneurial experience. Before starting their current business, nearly 10% of 72 The Impact of Urban Localizations on the Growth Possibilities for Small Firms them had another business (twice as much compared to non-urban entrepreneurs) and another 12% used to be managers (again just about twice as much compared to non-urban entrepreneurs) (Tab. 3). Table 3. Entrepreneurial experience (p-value<0.001) Professional experience before starting business Entrepreneurs: HU n LU URBAN % n % n % 9 5.63% 20 4.89% 42 9.63% Manager 11 6.88% 32 7.82% 54 12.39% Employee 97 60.63% 233 56.97% 203 46.56% Business owner Source: Own calculations based on PEO III data. Being more entrepreneurially experienced, they less often perceive the act of setting up a business as something entrepreneurial. This is clearly visible when the respondents are asked about their self-perception as entrepreneurial individuals. Urban entrepreneurs less often perceive themselves as entrepreneurial (Tab. 4). Table 4. Entrepreneurial self-perception (p-value<0.001) Are you entrepreneurial? Yes, rather yes. Entrepreneurs: HU n 127 LU % 79.38% n 307 URBAN % 75.06% n 311 % 71.33% Source: Own calculations based on PEO III data. Another important difference is associated with entrepreneurial motivations. The motivation that pushes or pulls people to start up a business is not without future consequence for the growth of the firm. Those who follow positive motives (opportunity entrepreneurship), such as the need for autonomy, self-realization, or fulfilling dreams usually have a higher propensity to develop their firms and to grow, while those motivated by push factors, such as the lack of a job, the need for money (necessity entrepreneurship), are more passive in running their business. Bosma and Sternberg (2014), 73 JULITA E. WASILCZUK, KRZYSZTOF ZIĘBA using the Global Entrepreneurship Monitor (GEM), analyzed data from 47 urban areas in 22 EU countries and found that entrepreneurs from those areas were more opportunity-driven than their counterparts from other areas. This is in line with our findings presented in Table 5. Urban entrepreneurs are more frequently motivated by the need for autonomy and selfrealization. Table 5. Entrepreneurial motivations (p-value<0.001) Need for autonomy and self-realization Entrepreneurs: HU LU URBAN n % n % n % 49 30.63% 158 38.63% 214 49.08% Source: Own calculations based on PEO III data. There are also some interesting differences with regard to the actual firms. First of all, urban firms are more innovative. This difference is captured by finding firms performing absolutely no activities associated with innovation. As can be seen in Table 6, urban firms rarely belong to this category of business. The most evident difference is when they are compared to firms from the HU group. Table 6. Innovativeness of the business (p-value = 0.0191) Lack of innovative activities last year Entrepreneurs: HU n 14 LU % 8.75% n 20 URBAN % 4.89% n 14 % 3.21% Source: Own calculations based on PEO III data. Another observation is that urban firms more often invest in their employee qualifications, as presented in Table 7. This finding is in line with the identified greater innovativeness of those firms. Offering better products, operating more advanced machines, implementing organizational changes – all that requires more from the staff: more competencies, more knowledge, more skills. 74 The Impact of Urban Localizations on the Growth Possibilities for Small Firms Table 7. Employee training (p-value = 0.04) Increasing employee qualifications in the last two years Entrepreneurs: HU LU URBAN n % n % n % No 98 61.25% 218 53.30% 216 49.54% Yes 62 38.75% 188 45.97% 219 50.23% 0 0.00% 3 0.73% 1 0.23% No answer Source: Own calculations based on PEO III data. Our findings also suggest that the scale of IT use can be bigger in urban firms. The proxy for IT use was the fact of owning a business website. As can be seen from the data in Table 8, business website ownership is more popular among urban firms. However, urban entrepreneurs do not seem to be more enthusiastic about this form of maintaining contact with their business partners (suppliers or customers). Even though more urban firms posses a website, the intensity of its use (defined as frequency of modifications and updates) is similar across the whole research sample. Out of the website owners of all groups (HU, LU and URBAN) slightly more than half hardly ever update their websites. Table 8. Internet use (p-value<0.001) Owning and updating business website Entrepreneurs: HU n No website LU % n URBAN % n % 119 74.38% 252 61.61% 221 50.69% Frequent updates (at least monthly) 18 11.25% 57 13.94% 93 21.33% Infrequent updates (less than monthly) 19 11.88% 87 21.27% 110 25.23% Source: Own calculations based on PEO III data. The last important difference is presented in Table 9 and it applies to sources of business financing. Availability of business infrastructure, typical for the urban environment, results in a greater use of leasing among urban 75 JULITA E. WASILCZUK, KRZYSZTOF ZIĘBA firms. Surprisingly, non-urban firms use EU funds much more often than their urban counterparts. Table 9. Sources of business financing (p-value = 0.02 for leasing and <0.001 for EU structural funds) Sources of business financing Entrepreneurs: HU LU URBAN n % n % n % Leasing 13 8.13% 37 9.05% 62 14.22% EU structural funds 15 9.38% 20 4.89% 10 2.29% Source: Own calculations based on PEO III data. As it was already mentioned, apart from a few differences, urban and non-urban entrepreneurs and their firms proved to be relatively similar. We did not find any differences in the type of business activities (such as trade, services or production), even though one could expect to find more servicebased businesses among urban firms. There were no differences in business goals between urban and non-urban entrepreneurs, even though their business motivations differed. More entrepreneurial experience and better education do not make urban entrepreneurs different from their non-urban counterparts with respect to business planning activities. The most unexpected finding, however, was that urban and non-urban firms were similar in terms of size. This can be seen in Table 10. The firm size was measured based on the number of people employed on a full-time basis. Table 10. Size of firms measured with employment – no significant difference Business size Entrepreneurs: HU LU 2.35 URBAN 2.24 2.26 Source: Own calculations based on PEO III data. To sum up, we could say that the general picture of urban firms and their owners seems to be better in comparison with their non-urban counterparts. Urban entrepreneurs are better educated, more experienced and more 76 The Impact of Urban Localizations on the Growth Possibilities for Small Firms positively motivated. Their firms are more innovative, with more qualified employees and better access to entrepreneurial infrastructure. However, against expectations, they are not growing better than their non-urban counterparts. This is a powerful suggestion, meaning that all possible benefits coming from the urban environment are balanced out by the accompanying disadvantages. It seems that the level of competition in cities is significantly higher and that is why better education and greater experience do not help much – the competitors are also educated and experienced. There is probably greater pressure to be innovative, but since others do it as well, innovation-related activities do not give any substantial advantage over competitors. The same applies to increasing employee qualifications; this can be either the effect of needs (in order to handle more innovative business conduct) or the demand of employees (who can quit their current job if not satisfied). In any of those two cases, increasing employee qualifications may not contribute to achieving firm growth. If the benefits of running a firm in a city are balanced out by the disadvantages deeply rooted in the urban environment and therefore growth possibilities in cities are not greater than outside of them, it seems interesting to investigate whether the survival rates are also similar. 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Journal of Small Business and Entrepreneurship, Fall 2003, Vol. 17 (1), pp. 1–16. 79 PART II ENTREPRENEURSHIP – A MAJOR CHALLENGE FOR LOCAL AUTHORITIES część II przedsiębiorczość – ważne WYZWANIE DLA WŁADZ LOKALNYCH Lidia Kaliszczak The Development of a Favorable Climate for Entrepreneurship at the Local Level ABSTRACT The study tackles the issue of developing a climate of entrepreneurship by local municipality authorities, which constitutes a key factor in supporting economic activity. The aim of the study is to exhibit the role of local authorities in stimulating entrepreneurship in the context of developing a climate which favors entrepreneurial attitudes in the scope of undertaking and conducting business. The formulated thesis is an assertion that entrepreneurship at the local level is notably determined by the attitude of local authorities, manifested in behaviors expressing responsibility for creating conditions for entrepreneurship and subjectivity in governance processes. The analysis and evaluation of entrepreneurship stimulating processes at the local level in terms of shaping a business climate have been conducted based on survey research, carried out among 35 randomly selected municipalities of the Podkarpacie province. Participation has been declared by 25 rural and 10 urban as well as mixed (rural-urban) municipalities. The following issues have been evaluated during the research: –the competence of staff liable for activities supporting local initiatives, or creating such initiatives; –comprehending the essence of entrepreneurship by the employees of the municipality; –the values underlying behaviors and actions that support entrepreneurship. The research is of cognitive nature as regards the entrepreneurial orientation of the municipalities as an entity shaping the culture of entrepreneurship, which makes this study valuable. JEL Classification: A13, D04, H79 Keywords: J. Schumpeter, climate of entrepreneurship, municipality, local entrepreneurship 83 Lidia Kaliszczak Kształtowanie klimatu sprzyjającego przedsiębiorczości na poziomie lokalnym ABSTRAKT W opracowaniu podjęto problem kształtowania klimatu przedsiębiorczości przez władze samorządowe gmin, jako zasadniczego czynnika wspierania aktywności gospodarczej. Celem opracowania jest ukazanie roli lokalnych władz w stymulowaniu przedsiębiorczości w kontekście kształtowania klimatu sprzyjającego przedsiębiorczym postawom, w zakresie podejmowania i prowadzenia działalności gospodarczej. Przyjętą tezą badawczą jest twierdzenie, że przedsiębiorczość na poziomie lokalnym determinuje w znacznej mierze postawę lokalnej władzy publicznej, przejawianą w zachowaniach wyrażających odpowiedzialność za kreowanie przesłanek przedsiębiorczości i podmiotowości w procesach sprawowania władzy. Analizy i oceny procesów stymulowania przedsiębiorczości na poziomie lokalnym w aspekcie kształtowania klimatu przedsiębiorczości dokonano w toku sondażowych badań ankietowych, zrealizowanych wśród losowo wybranych 35 gmin województwa podkarpackiego. Udział w badaniach zadeklarowało 25 gmin wiejskich oraz 10 miejskich i miejsko-wiejskich. Przedmiotem analizy w realizowanych badaniach były takie zagadnienia, jak: –kompetencje pracowników odpowiedzialnych za działania wspierające lokalne inicjatywy bądź te inicjatywy tworzące; –pojmowanie istoty przedsiębiorczości przez pracowników gminy; –wartości stanowiące podstawę zachowań i działań na rzecz wspierania przedsiębiorczości. Badania mają charakter poznawczy w zakresie przedsiębiorczej orientacji gminy jako podmiotu kształtującego kulturę przedsiębiorczości, co stanowi cenną wartość pracy. Słowa kluczowe: J. Schumpeter, klimat przedsiębiorczości, gmina, przedsiębiorczość lokalna 84 The Development of a Favorable Climate for Entrepreneurship at the Local Level INTRODUCTION The concept of modern local development underlines the importance of an entrepreneurial orientation of the entire local community, including the local authorities. They create the municipality, which learns entrepreneurial “grasping” of development opportunities (Barczyk, Biniecki and Szczupak, 2002, pp. 83–84). The process of Schumpeter’s “creative destruction” generates a deep context of social changes, which must be accepted by the majority. This means the necessity for shaping a culture of entrepreneurship and innovations, an increase in societies’ entrepreneurial awareness, promotion of proactive attitudes and building cooperative relations between enterprises and both local and external partners: clients, suppliers, local administration institutions, universities, research centers, and support institutions. Cultural acceptance of entrepreneurial activity is expressed through the creation of an entrepreneurship climate (Matusiak, 2010, pp. 32–33), conducive to the creation of new economic entities and pro-development structural changes both in the local economy and in enterprises (Kuciński ed., 2010, p. 25; Drucker, 1992, pp. 271–272)1. Undoubtedly, local authorities play a significant role in this aspect. Primarily, it comes down to creating conditions conducive to the emergence of the desire to undertake and run a business. The primary focus is on developing entrepreneurial attitudes among citizens, which results in new, dynamic initiatives that activate socioeconomic development, on supporting learning and knowledge accumulation processes, on creating better functioning conditions for enterprises, and on initiating and co-creating supporting institutions. To summarize, literature references indicate a significant dependence of municipality development on the range of activities of local authorities. In the functioning process of municipalities, one may distinguish traditional and entrepreneurial authority approaches in terms of stimulating and supporting development. The traditional one is indirectly focused on the person, as it is based on the external conditions in the person’s activity process (regulatory, infrastructure, competence or tax support from the authorities and public institutions established to support economic activity). On the other hand, the actions of local authorities that develop an entrepreneurial Moreover, as noted by P.F. Drucker, “Innovation and entrepreneurship are needed to the same extent by the society, as well as economy, public institutions, and enterprises” (Drucker, 1992, pp. 271–272). 1 85 LIDIA KALISZCZAK culture are causal – they are based on the stimulation of the person’s activity, the creation of a value system and attitudes opposed to passive acceptance of reality. They should therefore substantially exceed issues such as taxes, energy costs or lease rent rates. Therefore, the category of entrepreneurship sets new challenges for local authorities, pertinent to creating a culture, or rather as argued by Kuciński (2010, p. 25), to a climate of entrepreneurship for an efficient and effective implementation of the community’s objectives. The aim of the study is to exhibit the role of local authorities in stimulating entrepreneurship in the context of developing a climate which favors entrepreneurial attitudes in the scope of undertaking and conducting business. The formulated thesis is an assertion that entrepreneurship at the local level is notably determined by the attitude of local authorities, manifested in behaviors expressing responsibility for creating conditions for entrepreneurship and subjectivity in governance processes. The analysis and evaluation of entrepreneurship stimulating processes at the local level in terms of creating a business climate have been conducted based on survey research, carried out among randomly selected municipalities of the Podkarpacie province. The research was carried out in 35 municipalities, which answered the questions in the questionnaire. They constituted 23.1% of all municipalities, which can be considered to be a representative sample. The responses were analyzed in a group of municipalities in terms of their urban and rural character, which constitutes a certain reflection of their characteristics and level of development resulting from the state of the economy, its structure, as well as social, cultural, technical and institutional conditions (cf.: Kuciński, ed., 2010, p. 24). THE ESSENCE OF CREATING A CLIMATE OF ENTREPRENEURSHIP Entrepreneurship in its nature is primarily a culturally determined value. Entrepreneurship, as postulated by Barczyk, while constituting a demonstration of the social culture, also “produces” its own culture in a way which changes societies (Barczyk, 2010, pp. 79–80). The culture of entrepreneurship standards in the local community is very important for the competitiveness of municipalities. They reflect the climate, the atmosphere, or as argued by Schumpeter, the “spirit” of entrepreneurship. An important issue is to provide an answer to the question of defining the entrepreneurship supporting climate. This issue is often the subject of analysis at the level of enterprises which are interested in maintaining activity and a creative atmosphere. S.G. Isaken, K. Lauer, G. Ekvall and A. Britz (2001, p. 172, cited after Karwowski, 2003, pp. 123–124) define climate as “permanent behavior, attitudes, and feelings patterns, which characterize life in an organization”. On the other hand, “climate for creativity and change” is what supports the production and introduction of new products and solutions. This climate supports the development and assimilation of new, various proposals. The notion of cli- 86 The Development of a Favorable Climate for Entrepreneurship at the Local Level mate understood in this way is one of the variables that affect the organization’s ability to modernize and permanent development. In regard to the concept of local entrepreneurship and entrepreneurial local authorities, the perception of these types of terms is identified through a positive or skeptical attitude towards an entrepreneur. One can encounter skeptical social acceptance in places where phenomena of entrepreneurship are assessed negatively. In the cultures of many East European countries, including the Polish culture, the concept of entrepreneurship, and an entrepreneurial person focused on finding opportunities (an opportunist), similarly to the concept of an entrepreneur regarded as a “privateer” (pejorative association), do not indicate any positive development aspects of these phenomena. E. Bończak Kucharczyk, K. Herbst and K. Chmura attempted to define the climate of entrepreneurship at the municipality level (1998, p. 143). The culture of entrepreneurship, i.e. the social belief that entrepreneurship constitutes a standard behavior, may be identified through signals and information included in daily activities, which create a positive (or not) climate. The authors propose studying signs (c.f. Bończak Kucharczyk, Herbst and Chmura, 1998, pp. 151–153)2 of the entrepreneurship culture, such as: the approach of the inhabitants and municipality authorities towards entrepreneurs, expressed through colloquial terms, showing respect or even admiration for the risks and difficulties undertaken by the entrepreneurs, partnership – entrepreneurs participating in planning the municipality development, caring for a professional and quick service of entrepreneurs, the approach of authorities towards innovations, promoting cooperation between various institutions, especially the ones acting to stimulate activity. RESEARCH RESULTS AND DISCUSSION In the process of performing the tasks of local authorities, employee competence should constitute an essential condition for working in a particular position. The notion of competence encompasses a wide array of components – formal qualifications, experience, knowledge and practical professional skills, attitudes (e.g. commitment), internal motivation (Janowska 2001, cited after J.M. Moczydłowska, 2011, p. 71), and according to some authors – personal abilities (Oleksyn, 2006; Moczydłowska, 2011, pp. 71–76). The conducted research showed that in 44.4% of the entities covered by the research (16 municipalities), there is a separate unit for entrepreneurship support and promotion, as well as 13 full-time jobs. In two municipalities the employees whose range of activities included duties pertinent to The authors also mention specific forms of supporting the development of entrepreneurship by municipalities, such as: coordinating the activities of institutions and organizations important to the development of entrepreneurship, cooperation with non-profit organizations supporting entrepreneurship. Cf.: E. Bończak Kucharczyk, K. Herbst and K. Chmura, (1998, pp. 151–153). 2 87 LIDIA KALISZCZAK business activity issues, performed them on a part-time basis. In another municipality however, two full-time jobs were distinguished. Most frequently in municipalities the posts associated with entrepreneurship (activity of smaller enterprises as a rule) and servicing external investors are separated. In the group of municipalities under research, such a post was distinguished in six units (16.6%), including four urban municipalities. The overall number of posts was 8, including one rural municipality where there were four full-time jobs associated with servicing external investors (located in close proximity to Rzeszów), in two municipalities – this was a part-time job. In the municipalities under research women were most frequently entrusted with the task of dealing with entrepreneurship issues. In the rural environment they constitute a vast majority – almost 70% of posts associated with entrepreneurship. While analyzing the formal education of people employed in some municipalities in independent posts dealing with entrepreneurship or people whose range of duties includes dealing with issues pertinent to business activity, it was concluded that there is a decided advantage of people with university degrees both in the rural and urban environment. Taking into account the education profile, people with a degree in law and administration constitute 47.1% in urban municipalities. In rural municipalities however, there is a bigger percentage of people with a technical education. In the course of the research it was attempted to find out the respondents’ opinions on the education and skills required by the post they occupy. These opinions, admittedly subjective, enabled the assessment of the usage level of the qualifications that they have. More than 70% of the respondents answered this question. The biggest percentage of respondents – 33.3% believe that their work may be successfully performed by a person with secondary education. However, 25% of them claim that their work requires higher education, and 13.9% say that both a university degree and years of practice are required. At the local level entrepreneurship is perceived in terms of activities conducted to improve economic and social life. Schumpeter considered entrepreneurs leaders of changes, promoters of “the process of creative destruction”. Thanks to their creative, changes-oriented attitude, endogenous production factors remain used and are useful – it may refer both to tangible assets (resources) and to human work or potential markets. This activity is usually institutional – in economic practice, conducting entrepreneurial behaviors is reflected in efforts of organizing and running one’s own business, taking into account risk and responsibility. Simultaneously, the nature of these actions is emphasized, which should change current patterns (Osborne, Gaebler, 1992)3. However, it needs remarking that nobody any longer demands the very notion of entrepreneurship to be reduced to the establishment of new An interesting viewpoint on issues regarding local authority entrepreneurial actions was presented in the book: D. Osborne, T. Gaebler (1992). 3 88 The Development of a Favorable Climate for Entrepreneurship at the Local Level companies. It may well be said that we deal with entrepreneurship everywhere where a process of connecting people occurs in terms of creative, innovative acts of adding new values, thanks to a new combination of measures that has not been applied before or is unknown in a particular environment. This is due to many various entrepreneurs who cooperate or interact with each other and other processes participants (Barczyk, 2010, p. 72). Recognizing these interactions is of crucial importance as regards determining a municipality’s ability to strengthen the entrepreneurial potential of the local community, and consequently the competitiveness and attractiveness of a particular area. It may be assumed that this kind of approach is expressed in interpreting the notion of entrepreneurship itself. Table 1. Comprehension of the notion of entrepreneurship by municipality employees (% of answers) Nature of the municipality Specification a)person’s attitude towards reality, characterized by initiative, dynamics, resourcefulness, inclination to taking risk, ability to solve problems b)individual economic activity at one’s own risk c)innovative ideas, solutions, projects leading to obtaining particular profits d)mettle, cleverness, resourcefulness, ability to manage in any situation e)economic activity in the SMEs sector f )development of economic undertakings and companies g)organizing and running one’s own business h)other* Municipalities in Rural and Rural mixed general municimunicipalities palities 61.1 25.0 63.6 36.4 60.0 20.0 19.4 18.2 20.0 2.8 5.0 0.0 27.3 4.0 24.0 16.7 30.6 2.8 18.2 18.2 9.1 16.0 36.0 0.0 Source: Own elaboration based on surveys. * One of the respondents perceived entrepreneurship as an action targeted at making as much profits as possible (income). The respondents indicated more than one answer, therefore the answers do not add up to 100. An analysis of the signs of identifying the notion of entrepreneurship by the municipality employees under research indicates that most respondents perceive entrepreneurship in terms of an attitude (Table 1). The second most popular answer of the respondents was perceiving entrepreneurship as a process – especially in terms of organizing and running one’s own business. On average, 30.6% of all the respondents showed ac- 89 LIDIA KALISZCZAK ceptance of this definition, particularly in the environment of rural municipalities (36% of the respondents). The respondents’ opinions also point to a bigger acceptance of defining entrepreneurship through the prism of individual activity and of indicating an entrepreneur as a main actor of creating the competitiveness potential of local communities in the SMEs sector. It needs remarking that 25% of municipalities, as regards the very notion of entrepreneurship, took into account the risk taken by anybody who runs their own business. Innovative ideas and solutions that lead to particular profits (in accordance with Schumpeter’s definition), were mentioned by only 19.4% of all the respondents, and slightly more frequently by those from rural municipalities (20%). All in all, interpreting the entrepreneurship phenomenon emphasizes to a great extent the meaning of an individual’s active attitude, expressed through initiative, courage (taking risk) and the ability to solve problems, resulting in organizing and running one’s own business. The subject of entrepreneurship – mainly an individual entrepreneur in the SMEs sector – is more recognizable, which is expressed through a substantially bigger percentage of people considering entrepreneurship as organizing and running one’s own business (Table 1). Comprehending the essence of the notion of entrepreneurship by local authorities is of substantial importance, taking into account their role in the field of methods and sources that they use for supporting local initiatives in the field of socioeconomic development. It is also essential while identifying the nature of one’s own actions in the field of public utility. An “external” example is always more effective. Promoting certain values results in behaviors and actions; then values like resourcefulness, innovativeness, entrepreneurship are viable to become commonplace in a social community. The attitude of local authorities towards acknowledging the undertaken initiatives and conducted tasks as entrepreneurial was reflected in the respondents’ opinions. On average, one out of three municipalities under research believes that local authority activities in the field of public utility can be considered entrepreneurial (33.3%). Among the urban municipalities, this view is shared by 45.4%, but among rural municipalities only by 19.5%. Examples of these actions do not extend typical activities, constituting the scope of the authorities’ own tasks in terms of the municipality being a basic administrative unit, i.e. attention to development and improvement in the quality of life of the local community. These examples include renovations, modernizations, building district and municipality roads, building and modernizing water and sewage drain systems, garbage collection, land and real estate management. Only in two urban municipalities actions promoting entrepreneurship in terms of its institutional support were indicated. These actions are: establishing the Mielec Regional Development Agency, the Euro-Park Mielec Special Economic Zone and supporting it, establishing the IN-MARR Entrepre- 90 The Development of a Favorable Climate for Entrepreneurship at the Local Level neurship Incubator in Mielec, the Mielec Industrial Park, and the Incubator of New Technologies. In the course of the research an empirical verification was conducted as regards the attitude of inhabitants and municipality authorities towards entrepreneurs and widely understood entrepreneurship in terms of a slightly simplified picture of the values present in a society, its co-existence culture and management, as well as attitude and behavioral patterns. The picture may preliminarily be seen through the identification of everyday speech of entrepreneurs (Table 2). Table 2. Terms referring to entrepreneurs, identified among municipality inhabitants (% of indications) Specification Municipalities in general Urban and mixed municipalities Rural municipalities entrepreneur 75.0 90.9 68.0 producer 11.1 – 16.0 businessman 38.9 54.5 32.0 trader 16.7 18.2 16.0 “privateer” 41.7 36.4 44.0 Source: Own elaboration based on surveys. The research results prove the advantage of defining an enterprise owner as an “entrepreneur”. However, this term is replaced by over 40% of the respondents with another one – “privateer” – and has a clearly pejorative connotation. It was created by the previous system. This is particularly noticeable in rural municipalities4. Another question that dealt with the attitude of inhabitants and municipality authorities towards entrepreneurs demonstrated an attitude of respect or even admiration for entrepreneurial difficulty and risk. According to 72.2% of the respondents, entrepreneurs deserve to be called particularly valuable citizens (since they work more, take business risks, pay bigger taxes than ordinary citizens). Only 19.4% of the respondents expressed a negative opinion (including 9.1% in urban municipalities and 24% in rural municipalities; the rest have no opinion). Another problem of the analysis of entrepreneurship culture encompassed the range of entrepreneurial participation in planning the municipality’s 4 Furthermore, the respondents were asked if the chosen terms are also used by the municipality employees in everyday speech. The given answers depict the entrepreneurship climate similarly as in the case of inhabitant terms – 72.2% of the respondents confirmed using these terms (including 90.9% in urban municipalities and 64% in rural municipalities). 91 LIDIA KALISZCZAK development. On average, every fourth municipality under research considers entrepreneurs as partners in planning and conducting the development, and 36.1% do it sometimes (including 45.4% of urban and 32% of rural municipalities). The context of this approach may reveal the authorities’ approach to private and public property, and consequently the way of comprehending the role of municipality authorities, and even the way of understanding the very definition of municipality and economic development in terms of local democracy5. When creating a favorable climate for entrepreneurship, it is also essential to take care of professional and quick service for investors, since 80.5% of the municipalities under research, rural ones in particular, declared attention to the quality of this service. Among examples of concrete actions, the following ones were mentioned (the order according to the answer frequency): the “one window” institution (the most answers), obtaining and employing workers whose qualifications ensure efficient servicing of entrepreneurs; comprehensive service by deploying competent employees, dealing with issues “offhand”, establishing a Client Service Office or an office of stakeholder service, adjusting office working hours, assistance in filling out application forms, implementation of the ISO 9001:2008 Quality Management System and others. The attitudes of municipality authorities in terms of causation are also revealed through the approach to innovation. The objective was to examine the attitudes in terms of expressing acceptance for new ideas, innovative problem solving, which creates an appropriate activity climate. The atmosphere that is conducive to innovativeness supports the activity of all local community participants. The research results demonstrate an awareness of the role of such an approach in (on average) 66.7% of the municipalities under research, especially in rural municipalities. Meetings of all employees organized at least once a month constitute a sign of the aforementioned attitude. The workers discuss the future of the municipality, they share ideas on how the work of the authorities may be improved, so that the municipality is perceived in a better way by stakeholders (33% of indication on average), the most interesting ideas are rewarded (2.8%), and other actions (19.4%). 44.4% of municipalities did not provide any answer in this case. Promoting cooperation with various institutions, especially those operating for the stimulation of activity, also constitutes an important sign of creating an entrepreneurial climate at the local level. The research results indicate that on average every third municipality under research presents such attitudes. Almost half of them (47%) however, do not undertake such activities (no answer was given by 19.5% of the municipalities, which may be an indication of a lack of activity in this regard). As examples of such 5 In the beginning of the 1st term of office of the local authorities in 1990, a municipality was most frequently defined through the prism of common communal property. It was not noticed however, that an individual citizen, an entrepreneur, creates this community on equal rights (Bończak Kucharczyk, Herbst and Chmura, 1998, p. 144). 92 The Development of a Favorable Climate for Entrepreneurship at the Local Level cooperation, most frequently participation in Local Action Groups were indicated as well as activities undertaken with the District Labor Office for the establishment of new workplaces and organizing trainings. The research results prove that creating an entrepreneurial climate is considered by the respondents to be the most important instrument of stimulating and supporting entrepreneurship (Table 3). This was pointed out by 52.8% of the respondents, and given priority to income and outcome instruments. Only in urban municipalities the importance of outcome instruments was highly ranked, including investment and other entrepreneurship supporting expenses conducive to local development. Table 3. The place of “entrepreneurship climate” in a group of entrepreneurship support instruments (% of indications) Specification Municipalities in general Urban municipalities and mixed municipalities Rural municipalities Outcome instruments 38.9 54.5 32.0 Income instruments 27.8 18.2 32.0 Creating a “climate” of entrepreneurship 52.8 54.5 52.0 Respondents indicated more than one answer, therefore the answers do not add up to 100. Source: Own elaboration based on surveys. In economic practice, at the local level, entrepreneurship is usually identified with the SMEs sector. Their role in balancing the local socioeconomic development is underlined in terms of employment, diversity in production and services offer for purchasers, financial support of the municipality budget through taxes. The respondents expressed their opinion regarding whether local authorities should or should not support entrepreneurship through creating a special support program for the SMEs sector (Table 4). While analyzing all the answers given by the respondents, one may notice the distinctive fact that the percentage of people supporting and that are undecided is the same. In rural municipalities, local authorities target their actions to a greater extent at supporting small and medium enterprises. Local authority consciousness towards the expectations of entrepreneurs regarding particular sorts of support may result in the fact that aid policy will be effective. Only in one municipality a positive answer was given to the question of whether municipality authorities are familiar with the expectation of entrepreneurs in the field of the necessary support. More than half of the respondents (58.3%) said “rather yes”. In urban municipalities there is a bigger level of awareness of these expectations (72.2%) than in rural 93 LIDIA KALISZCZAK municipalities (36.1%). Among the kinds of support that is mostly desired by entrepreneurs, as far as municipality employees’ opinion is concerned, the following ones were enumerated: tax reductions (80.6% on average), comprehensive promotion of companies in a municipality by the local authorities (36.1%), and creating an entrepreneurial climate (friendly atmosphere for entrepreneurs – 30.6%), as well as improving administration services (longer working hours, establishing a center for servicing investors, or an information center – 30.6%). Table 4. Opinions on whether municipality authorities should support entrepreneurship through creating a special support program for the sector of small and medium enterprises (% of indications) Specification Definitely yes Municipalities in general Urban municipalities and mixed municipalities Rural municipalities 8.3 9.1 8.0 Rather yes 38.9 27.3 44.0 Rather no 5.5 9.1 4.0 It is hard to determine 38.9 27.3 44.0 No answer 8.4 27.3 – Source: Own elaboration based on surveys. Summing up the results, one may infer that in the awareness of local authorities the importance of entrepreneurial climate increases, as regards processes of stimulating economic activity when compared to the commonly applied outcome instruments and to a smaller extent income instruments. In the practice of acting in favor of supporting entrepreneurship, the traditional dimension predominates. This is confirmed by the answers of the respondents, which determine the forms of supporting entrepreneurship. These are in particular: the development of road infrastructure and providing areas with water and sewage drain systems, passing plans of spatial planning for business locations, gaining EU funds for infrastructure investments and social initiatives, reduction of timeframes for obtaining construction and zoning conditions, municipality promotion, and free promotion of entrepreneurs on the municipality website. Local authorities have limited possibilities of helping entrepreneurs, resulting from budget arrangements. These limits may be divided into two problem groups: pertinent to local authority actions in the field of supporting entrepreneurship, and resulting from the attitudes and behaviors of 94 The Development of a Favorable Climate for Entrepreneurship at the Local Level entrepreneurs. The most essential barrier of entrepreneurship stimulation in municipalities was the lack of financial resources to support it. Particularly this lack was pertinent to budget resources that restrict introducing exemptions and concessions for entrepreneurs. Furthermore, the complex procedures associated with applying for EU funding exacerbate the difficulties of gaining them. Amid the constraints, also the lack of investment areas was indicated. Staff constraints in municipalities constitute another factor (too few posts in comparison with the scope of duties). CONCLUSION The research results demonstrate that in the policy of entrepreneurship promotion and support, the “hard” instruments clearly predominate compared to the “soft” ones. Therefore, it seems necessary to change the approach to “investing” in people – entrepreneurs. Hence, entrepreneurship support focused on creating personality potential is postulated, and especially in the case of creating entrepreneurial attitudes. Developing entrepreneurial behavior requires a change of governance style – from administration to leadership (Kaliszczak, 2012a; 2012b). Creating an entrepreneurship climate should result in an increase in undertaken initiatives and activities of inhabitants. REFERENCES 1.Barczyk Z., Biniecki J., Szczupak B. (2002). Przedsiębiorczość gminna a rozwój lokalny: nowa faza przemian w samorządach lokalnych, [in:] Górnośląskie Studia Przedsiębiorczości, tom I. Chorzów: Oficyna Wydawnicza Górnośląskiej Wyższej Szkoły Przedsiębiorczości im. Karola Goduli w Chorzowie. 2.Barczyk S. (2010). Przedsiębiorczy samorząd lokalny i jego instytucje. Katowice, Wydawnictwo AE w Katowicach. 3. Bończak Kucharczyk E., Herbst K. Chmura K. (1998). Jak władze lokalne mogą wspierać przedsiębiorczość. Warszawa, Polska Fundacja Promocji i Rozwoju Małych i Średnich Przedsiębiorstw. 4.Drucker P.F. (1992). Innowacja i przedsiębiorczość. Praktyka i zasady. Warszawa: PWE. 5.Isaken G., Lauer K., Ekvall G., Britz A. (2001). Perceptions of the Best and Worst Climates for Creativity: Preliminary Validation Evidence for the Situational Outlook Questionnaire. “Creativity Research Journal”, Vol. 13, No. 2. 6.Janowska Z. (2001). Zarządzanie zasobami ludzkimi, Wyzwania XXI wieku, Warszawa: PWE. 7.Kaliszczak L. (2012a). Warunki stymulowania twórczości, innowacyjności i przedsiębiorczości – wyzwania wobec przywódców współczesnych przedsiębiorstw. “Management”, J. Stankiewicz (ed.), CD-ROM, pp. 367–378. 95 LIDIA KALISZCZAK 8.Kaliszczak L. (2012b). Przywództwo w procesie kształtowania kreatywności i innowacyjności w organizacji wobec imperatywu przedsiębiorczości, [in:] Człowiek w organizacji. Teoria i praktyka, P. Wachowiak (ed.), Warszawa: Oficyna Wydawnicza SGH. 9.Karwowski M. (2003). Twórcze przewodzenie. Warszawa: Wydawnictwo Instytutu Przedsiębiorczości i Samorządności. 10.Kuciński K. (ed.) (2010). Przedsiębiorczość a rozwój regionalny w Polsce, Warszawa: Difin. 11.Matusiak K.B. (2010). Budowa powiązań nauki z biznesem w gospodarce opartej na wiedzy. Rola i miejsce uniwersytetu w procesach innowacyjnych. Warszawa: SGH w Warszawie. 12.Moczydłowska J.M. (2011). Predyspozycje osobowościowe w kompetencjach zawodowych pracowników administracji publicznej. Ekonomika i Organizacja Przedsiębiorstwa, No. 4. 13. Oleksyn T. (2006). Zarządzanie kompetencjami. Teoria i praktyka. Kraków: Oficyna Ekonomiczna. 14.Osborne D., Gaebler T. (1992). Rządzić inaczej. Jak duch przedsiębiorczości przenika i przekształca administrację publiczną. Poznań: Media Rodzina of Poznań. 96 Małgorzata Osińska Hong Kong Was an Island. The Process of Creating a Global City ABSTRACT Purpose: This paper is about to examine the process of constructing a global city based on the example of Hong Kong, which during its relatively short history was transformed from a fishing village to a megacity, from an isolated island to the heart of the Pearl River Delta (PRD) region. Methodology/Approach: Based on the historical perspective the article will present the successive steps of Hong Kong’s integration with Mainland China, especially with Shenzhen. It also analyzes how small-scale changes in urban space between and inside the PRD cities impact the integration process of the whole conurbation. Findings: The article stresses that these interventions reconstruct the urban space of the cities and the communication networks between them. At the same time they redefine the concept of city center and periphery, and they reconfigure the social, political and economic geography of the region. The relation between Hong Kong, Shenzhen and the PRD has changed during last 30 years, becoming complementary rather than competitive. Value/Originality: The analysis of the bilateral relation between Hong Kong and Shenzhen can result in a better understanding of the local context of this place. By understanding the changes in the urban structure one can have a better knowledge of the strategic location of the business and production centers in the region. JEL Classification: R49 Keywords: entrepreneurship, global city, Hong Kong, Shenzhen, urbanization 97 Małgorzata Osińska Hongkong był wyspą. Proces powstawania globalnego miasta ABSTRAKT Cel: Celem poniższego artykułu jest analiza procesu powstawania globalnego miasta na przykładzie Hongkongu, który w czasie swojej stosunkowo krótkiej historii dokonał transformacji z małego portu rybackiego w megamiasto, z odizolowanej wyspy w główne centrum całego regionu Delty Rzeki Perłowej (DRP). Metodologia: Przyjmując perspektywę historyczną w artykule zostaną przedstawione kolejne stopnie integracji Hongkongu z Chinami kontynentalnymi, w szczególności zaś z Shenzhen. Artykuł ma również na celu przeanalizowanie jak niewielkie zmiany w przestrzeni miejskiej pomiędzy oraz wewnątrz miast regionu DRP wpływają na proces integracji całej konurbacji. Wnioski: Artykuł podkreśla, iż te interwencje rekonstruują przestrzeń danych miast oraz sieć połączeń komunikacyjnych pomiędzy nimi. Jednocześnie redefiniując przy tym koncepcję centrum i peryferii, a także rekonfigurując znaczenie geografii społeczno-politycznej i ekonomicznej całego regionu. Relacja między Hongkongiem, a Shenzhen i regionem DRP w ciągu ostatnich 30 lat przekształciła się z konkurencyjnej w komplementarną. Wartość/Oryginalność: Analiza dwustronnej relacji pomiędzy Hongkongiem a Shenzhen może pomóc w lepszym zrozumieniu lokalnego kontekstu tego miejsca. Poprzez lepsze poznanie infrastruktury regionu poszerza się również wiedza o lokalizacji i strategicznym położeniu centrów biznesowych i linii produkcyjnych. Słowa kluczowe: Hongkong, globalne miasto, przedsiębiorczość, Shenzhen, urbanizacja 98 Hong Kong Was an Island. The Process of Creating a Global City INTRODUCTION Hong Kong is a place with a relatively short history, especially when compared to many other Chinese cities. But during that history it went through a tempestuous process, which has transformed this place from a fishing village into a megalopolis with the world’s tallest skyline and one of the most densely populated cities in the world (Photo 1). Moreover, the transformation is still going on, and under it, Hong Kong is becoming an integral part of the whole Pearl River Delta region, which in turn is one of the fastest developing regions in the world. Photo 1. Most famous view of Hong Kong from Victoria’s Peak. Photo: M. Osińska I would like to show how the process of historical and political events combined together with slight shifts in the urban structure between Hong Kong and other cities in the Pearl River Delta (PRD), on the one hand are transforming Hong Kong into an integral part of the whole PRD region, and on the other hand are also changing the structure and shape of the whole conurbation. The term ‘global city’ refers to a process rather than a place, similar to Manuel Castells’ definition (Castells, 1996). This process is not only changing the visible urban structure of the PRD region and Hong Kong, but it is also creating better conditions for entrepreneurship. 99 MAŁGORZATA OSIŃSKA Structuring my essay based on a historical perspective, I first analyzed how the geographical, historical, political and cultural factors served to isolate Hong Kong from the Mainland. Then I presented a short history of entrepreneurship in Hong Kong and the role of Shanghainese people in building Hong Kong’s entrepreneurial class. That paragraph will end with the description of the present situation of entrepreneurship in Hong Kong and the role of small and medium-sized enterprises (SMEs). Next, I shift my focus to the bilateral relation between Hong Kong and Shenzhen and I examine how the increasing economic interdependence and inexorable cultural differences are molding Hong Kong and Shenzhen into one enormous city, separated only by a frontier. Finally, I am going to focus on the relation between Hong Kong and the Pearl River Delta, to see how even a small change in one of the PRD centers may potentially shake the whole region and how those small changes are transforming the whole region into one inseparable network, which in the future might become one city. AN ISOLATED ISLAND Hong Kong is a territory located in Southern China, bordering the Guangdong Province on the north and facing the South China Sea to the east, west and south. In the Western imagination Hong Kong always was a place apart, apart from the Mainland but also apart from Great Britain – a politically, geographically and culturally isolated island. Indeed, Hong Kong’s territory in the beginning was located on the island (Hong Kong Island). But later on it also became a part of the Mainland: Kowloon and the New Territories. Beside those three main areas, Hong Kong also has more than 260 smaller islands, with a total surface area of 1,104 sq km of land. It is worth noting that only around 25% of Hong Kong’s whole surface is developed land, whereas parks and nature reserves constitute 40% of that surface. This is in part because of the fact that the land where Hong Kong is located was formed from volcanic rocks. The vertical character of the topography makes it even more difficult to plan a city. The history of Hong Kong was always strongly connected with events going on in Guangzhou – the main city of the Guangdong Province and the Pearl River Delta. Today’s Hong Kong is a result of the Opium Wars between China and Great Britain. Hong Kong Island was occupied by British forces in 1841, and formally ceded to Britain under the Treaty of Nanking at the end of the First Opium War, one year later. It is worth noting that none of the conflicted parties respected the Treaty. But before the decision came to London, and back to Hong Kong it was too late – The British established a Crown Colony with the founding of Victoria City the following year. In 1860, after defeating China in the Second Opium War, a part of the Mainland known as the Kowloon Peninsula (South of Boundary Street) and Stonecutter’s Island were ceded to Britain under the Convention of Beijing. In 1898 100 Hong Kong Was an Island. The Process of Creating a Global City Britain obtained a 99-year lease of Lantau Island and the adjacent northern lands, which became known as the New Territories. As we can see, the entire territory named Hong Kong was under British control from the very beginning, but each part with a different status. Of course the most complicated was the status of the New Territories, which later became an excuse to start negotiations between Great Britain and China about the handover. Before the handover Hong Kong could be described as “a Chinese city, but unlike other Chinese cities it has never before belonged to China. It is also a British city, but its Britishness is only a kind of decoration, a memory, and more fiction than reality. Hong Kong was neither created by Great Britain nor by China. It was created by British people who were free from Great Britain’s commitments and by Chinese people who have never been subordinated to China”1. BUILDING AN ENTREPRENEURIAL CITY The economic success of Hong Kong is very much based on entrepreneurship, which is a dynamic force for business innovations. Hong Kong’s present day entrepreneurship is characterized by SMEs. SMEs are defined as any manufacturing business, which employs fewer than 100 persons in Hong Kong, or any non-manufacturing business, which employs fewer than 50 persons in Hong Kong (Hong Kong Legislative Council Paper, 2007). SMEs account for over 98% of the total number of business units. According to this definition, at present there are 320,000 SMEs in Hong Kong, which employ 1.3 million people (47% of total employment). Most of the SMEs are in the import/export trade and wholesale industries, followed by the retail industry. They account for over 50% of the SMEs in Hong Kong and represent about half of SMEs employment2. The success of Hong Kong as a world business center would not be possible without the migration of Shanghainese people to Hong Kong, first during the second Sino-Japan War in 1937, and later during the Chinese Civil War resumed in 1946. In total, about 1.4 million people are estimated to have fled to Hong Kong, among them many were former entrepreneurs, who had lost their fortunes after the Communist takeover of the country. Ming Chan of the Hoover Institution describes this exodus as “nothing less than the exile of Chinese capitalism to Hong Kong” and it definitely has contributed to the Hong Kong transformation from a small fishing port into a manufacturing power (Burton, 1999). The significance of that group is proven by the fact that under the British colonial government and the laissez-faire policy they built, and in many cases rebuilt, their fortunes, mainly working for the textile and manufacturing industry. Shanghai’s connections are still present and important in contemporary Hong Kong. For example, the prominent politicians in Translated from Polish. Darewicz, 1997, p. 6. Data available online: http://www.success.tid.gov.hk/english/lin_sup_org/gov_dep/servi- 1 2 ce_detail_6863.html (last accessed: 10 August 2014). 101 MAŁGORZATA OSIŃSKA Hong Kong, including the former Chief Executive, Tung Chee Hwa, have Shanghai roots. During the British colonial period, Hong Kong was always regarded as a “window to the world for China”, especially after 1949 when the Communists came into power. But after the handover, in 1997, it became an integral part of the Mainland (though, the real integration process started in 1980 when the first Special Economic Zone was opened in the small fishing port located just next to the border with Hong Kong – Shenzhen). Actually, to many entrepreneurs Hong Kong, with its population of around 7 million people, is considered a small market, but with its strong integration with the Mainland (especially with all the small changes in the urban structure between Shenzhen and Hong Kong) and with its colonial (Western) past it can be regarded, especially for the Mainland entrepreneurs, as a window to the world. Hong Kong’s manufacturing sector employs about 5 million workers in the Mainland. By mid-1999, 55% of all foreign-invested projects in China came from Hong Kong companies, mostly in the Pearl River Delta. By the end of 2001, the cumulative value of Hong Kong’s realized direct investment was US$187 billion, accounting for 48% of the total external direct investment3. Mainland private investors consider Hong Kong as, first of all, a place to access market intelligence, and second of all, as a strategic location to manage regional business activities. Hong Kong’s SMEs are extended to the Mainland in the following proportions: PRD – 59.7%; Guangdong (other than PRD) and Fujian – 12.4%; Yangtze River Delta (including Shanghai, Jiangsu and Zhejiang) – 14%; other coastal areas – 5.9%; inland provinces – 8%4. From the above data we can clearly see how strong the connection is between Hong Kong and the Greater PRD region, as well as its connection with Shanghai and the entire Yangtze River Delta (partly because of the past and the migration from Shanghai to Hong Kong in the first half of the twentieth century). In 2001, transport and other infrastructure were the main deciding factors for overseas companies with regional headquarters in Hong Kong to locate their investments in Hong Kong5. Now, when the transportation system and whole infrastructure between Hong Kong and the PRD region is well-developed, Hong Kong has started connecting with other main Chinese cities. There are direct trains from Hong Kong to Beijing and Shanghai – which with all the high-speed railway system inside and outside of China are called China’s New Silk Railroads (Lee Chor Pharn and Sim Phei Sunn, 2011). A better connection between Hong Kong and the Mainland provides better import and export Hong Kong’s Investment in the Mainland. Hong Kong Government, Financial Services Bureau (June 2002), in: Bee-Leng Chua, p. 9. 4 Hong Kong’s Trade and Trade Supporting Services: New Developments and Prospects. Hong Kong Trade Development Council, (January 2002), in: Bee-Leng Chua, p. 10. 5 Annual Survey of Regional Offices Representing Overseas Companies in Hong Kong conducted by the Census and Statistics Department (2001). 3 102 Hong Kong Was an Island. The Process of Creating a Global City facilities for all kinds of goods, as well as a better mobility of people6, which in the end might have a great influence on the creation of an entrepreneurial city. ONE COUNTRY, TWO SYSTEMS The real breakthrough in Hong Kong’s history came in 1978, when Deng Xiaoping proclaimed the reforms and decided to open a Special Economic Zone (SEZ) in Shenzhen in 1980 – a small fishing village located in the immediate neighborhood of Hong Kong. At that time Hong Kong already was the middleman between China and the West in trade relations, and the decision to open a SEZ just on the border with it was going to improve the role of Hong Kong as a ‘window’ for China in contacts with Western countries, although at that time, i.e. the end of the 1980s, Shenzhen was just a small fishing village (as Hong Kong used to be when the British overtook it in 1842). At the same time both sides – Great Britain and China – were preparing for the negotiations about the future of Hong Kong. From the very beginning it was quite obvious that Hong Kong could not be split between China and Great Britain. First, because that would mean that the border would have to be set up on Boundary Street, which was located in the middle of the city. Second, because Hong Kong could not exist without the New Territories – which constitute 80% of the whole Hong Kong land area and are the main sources of water and energy supplies. Third, because Great Britain was unable to protect Hong Kong. Based on these facts we can clearly see that the core of negotiations was not about if Hong Kong should return to China, but the conditions for the handover and how much autonomy it would be given. Finally, both sides agreed on Deng Xiaoping’s concept: “One Country, Two Systems”, which was originally conceived for Taiwan. The Sino-British Joint Declaration was signed by the two countries in 1984, and both sides agreed to transfer the sovereignty of Hong Kong to the People’s Republic of China in 1997, stipulating that Hong Kong will be governed as a Special Administrative Region, retaining its laws and a high degree of autonomy for at least fifty years after the handover. Hong Kong was going to be an integral part of China and there was no turning back. The Hong Kong Basic Law, which would serve as the constitutional document after the transfer, was ratified in 1990, and the transfer of sovereignty occurred at midnight on the 1st of July 1997, marked by a handover ceremony at the Hong Kong Convention and Exhibition Centre. The concept of “One Country, Two Systems” has changed the relation between Hong Kong and China forever, although the real process of integration began almost 20 years earlier with the opening of the SEZ in Shenzhen, the real starting point for connecting Hong Kong with the Mainland. 6 However, the inland migration between Chinese cities is still controlled by the hukou system. 103 MAŁGORZATA OSIŃSKA TWO SYSTEMS, ONE CITY7 In the early 1980s Shenzhen was a fishing village, and now it is one of China’s most important cities, the urban hub of China’s southeastern coast. It was designed as China’s first SEZ, which means that it was also the first Chinese city allowed to receive foreign investment. This spectacular success was, to a large extent, possible thanks to the huge support of the Chinese government, as well as the coastal location and proximity to Hong Kong and Taiwan (a major source of investment capital). In 2009 the central government decided to set up ChiNext in Shenzhen, a NASDAQ-style stock exchange. Three years ago Beijing chose Shenzhen to be a model city for Kashgar – one of the latest designed SEZs in China (Fish, 2010). Not to mention that one of the first trips of the new president Xi Jinping was to Shenzhen. All those facts show how the role of Shenzhen has changed and how it developed, but this success would not be possible without Hong Kong. In the last 20 years the relations between Hong Kong and Shenzhen have changed a lot, as Shenzhen has transformed from a subordinate city to a serious partner. The main reason for this transformation is, of course, the increasing economic interdependence, but cultural differences are also of great importance. Increasingly, the two cities cannot exist without each other and they are quickly transforming into one twin-city, separated with a border between the Special Administrative Region and Mainland China. “South of the border is Hong Kong, a sophisticated global financial hub whose cosmopolitan, if aging, population enjoys personal and professional ties around the world. On the other side is Shenzhen, a brash, nouveau-rich upstart whose chaotic landscape encapsulates both the admirable and deplorable dimensions of China’s meteoric rise.” (Hirsh, M. and Solomon, Jonathan D, 2012, p. 99). The central government is still paying much of its attention to developing this unique and complex union between Hong Kong and Shenzhen, and there are many top-down megaprojects that will change the networks of communication between Hong Kong and Shenzhen – especially the underground high-speed train that will cut travel time between Hong Kong and Shenzhen to 8 minutes. Among those megaprojects, there are also many small-scale, bottom-up interventions in the urban space of both cities, which are constantly changing the space of this twin-city megalopolis. One of the latest of such interventions is the development of cross-border airport check-in facilities. “Located inside inner-city shopping centers, these airport terminals are reconfiguring the social and political geography of the Pearl River Delta, as well as redefining conceptions of center and periphery in a twin-city megalopolis.” (Hirsh, M. and Solomon, Jonathan D, 2012, p. 99). Elements The phrase first used by Hirsh, M. and Solomon, Jonathan D. in their article about the bilateral relations between Hong Kong and Shenzhen: Does Your Mall Have An Airport? In: Bracken G. (editor), Aspects of Urbanization in China: Shanghai, Hong Kong, Guangzhou (pp. 99–106). Amsterdam: Amsterdam University Press. 7 104 Hong Kong Was an Island. The Process of Creating a Global City in Hong Kong and Kingkey Banner New Lifestyle Center in Shenzhen provide an international check-in service and a cross-border bus connection between the two airports. The bus goes over the 5-kilometer bridge across Shenzhen Bay, which is a part of a larger infrastructure project called the “Hong Kong-Shenzhen Western Corridor Link”. The bridge is not interesting for its architectural form or materials used in the construction, but for the ways in which the political borders were manipulated to accommodate the cross-border facilities. There is just a single checkpoint located in Shenzhen Bay Point, but it required an extension of Hong Kong’s territory across the deck. This means that the border-crossing facilities are legally located in Hong Kong – the deck, but from a geographical point of view they are in the territory of Shenzhen – the ground (Picture 1). What is also worth mentioning is that the original intention of building the bridge was to alleviate the traffic of commercial goods at Hong Kong’s other borders, but the tolls on the bridge successfully dissuaded truck drivers from using it. Despite the fact that the original intentions of designing the bridge failed to materialize, it has developed other important facilities and uses. And these, in turn, are completely changing the political geography of the twin-city. The airports of Shenzhen and Hong Kong are much like the two cities – connected in symbiotic and interdependent relations: Hong Kong, the Picture 1. The location of Elements Mall and Kingkey Mall and both airports: Hong Kong Airport and Shenzhen Airport with marked Shenzhen Bay Point – where the border facilities between Shenzhen and Kong Kong are located. 105 MAŁGORZATA OSIŃSKA gateway to the world, connected with Shenzhen, the gateway to Mainland China. PEARL RIVER NETWORK-CITY The Pearl River Delta is one of the 11 megadeltas8 in the costal zones of Asia that are continuously being enlarged by sedimentation from rivers originating in the Tibetan Plateau. The PRD is built on land that has been created with rapid filling of the topsoil of upstream deforestation in the late-imperial times. The PRD with its biggest city Guangzhou was already recognized as one of the macroregions during the Qing Dynasty (Spence, 1991, pp. 91–92), although until modernity the Yellow and Yangtze Rivers were much more important than the Pearl River as a connection with global trading networks, because both of them were much closer to Beijing. Being far from the political center later gave the PRD an opportunity for rapid development when the treaty ports were established in the mid-19th century. The distance from the political center also allowed the PRD to become the first place in China with a SEZ – an experiment which was later exported north to cities on the Yangtze River. Picture 2. Hong Kong and Pearl River Delta region with the biggest cities. A megadelta is defined as an area of more than 10,000 sq. km (Haar and Marshal 2013, p. 146). 8 106 Hong Kong Was an Island. The Process of Creating a Global City The PRD is one of the fastest developing regions in the whole of China. Some of the changes, which are going on in the region, have been of a violent and abhorrent nature, but are perhaps unavoidable. Those changes are transforming the relation between Hong Kong and the PRD, which in the past was more competitive, and nowadays is more complementary. For example, the original heavy dependence on Hong Kong transportation facilities to handle the transit of goods produced in the PRD is now challenged by the increasing number of container terminals in Shenzhen and other PRD cities. As ports get closer to production lines, more highways and roads are using infrastructure to connect and minimize the distance with other Mainland provinces. These circumstances trigger a situation where each city depends on other cities – the PRD, with its cities and whole infrastructure, is like a network, where everything and everyone is a part of everything (Picture 2). Even a small change in one of the centers potentially has an impact on the whole PRD conurbation. But as much as they reinforce the cultural and political differences, they also allow for a smooth transportation of goods through the region. Recently political and economic elites have initiated a program for a 45-kilometer-long bridge between Hong Kong, Macau and Zhuhai, designed for a smoother integration and a short-cut between the east and west sides of the PRD. This project might also facilitate travel opportunities between each part of the PRD for millions of travelers visiting Hong Kong. CONCLUSION The problems raised in this paper are meant to point to areas for future investigation and research, not as an indictment. The “global city” is not without its tensions, especially in a city like Hong Kong, where economic goals face cultural traditions and development imperatives face a lack of ground, and where urban space is very limited. In a long historical perspective, Hong Kong transformed from an isolated island into a key part of the PRD. The process continues as China’s political and economic elites are paying a lot of attention to continuously developing this region. Can this phenomenon be transferred to other Chinese megadeltas? Does this way of small urban intervention help to create more sustainable places for living in a region that is already defined by politics and infrastructure? When we look at the whole PRD it looks more like a patchwork, a mixture of cultures, where each center has its own unique specification and function. But somehow this place turned into a coherent whole instead of being a fragmented competitive region. 107 MAŁGORZATA OSIŃSKA REFERENCES Books by author: Castells, M. (1996). The rise of the network society. Oxford: Blackwell Publishers, http://dx.doi.org/10.1002/9781444319514. Darewicz, K. (1997). Hongkong historia niezwykła. Warsaw: Presspublica. Spence, Jonathan D. (1991). The Search for Modern China. New York: W.W. Northon & Company. Chapters in books: Haar, Sh., Marshall, V. (2013). Mega Urban Ecologies. In: McGrath, B. (editor), Urban Design Ecologies (pp. 144–159). New York: Willey. Hirsh, M., Solomon, Jonathan D. (2012). Does Your Mall Have An Airport? In: Bracken G. (editor), Aspects of Urbanization in China: Shanghai, Hong Kong, Guangzhou (pp. 99–106). Amsterdam: Amsterdam University Press. Solomon, Jonathan D. (2010). Abhorrent Infrastructure. Three Dimensional Sovereignty: Pearl River City. In: Stoll K., Lloyd S. (editors), Infrastructure as architecture: designing composite networks (pp. 112–117). Berlin: Jovis. Articles in journals – many authors: Lee Chor Pharn, Sim Phei Sunn (2011). China’s New Silk Railroads. Global Asia. Vol. 6 No.1, pp. 60–67. Articles in newspapers: Burton, S. Exodus of the Business Class. Time (09.1999). Online: http://content.time.com/time/world/article/0,8599,2054251,00.html (last accessed: 10 August 2014). Fish, Isaac Stone. China’s Hottest Cities and Kashgar. Newsweek (09.2010). Online: http://www.newsweek.com/chinas-hottest-cities-and-kashgar-72333 (last accessed: 9 June 2013). Internet sources – articles: Annual Survey of Regional Offices Representing Overseas Companies in Hong Kong conducted by the Census and Statistics Department (2001). Online: http://www.statistics.gov.hk/pub/B11100042011AN11B0100.pdf (last accessed: 10 August 2014). Chua, Bee-Leng. Entrepreneurship in Hong Kong: Revitalization of entrepreneurship. Online: http://www.mansfieldfdn.org/backup/programs/program_pdfs/ent_hongkong.pdf (last accessed: 10 August 2014). Hong Kong Legislative Council Paper (2007). Legislative Council Panel on Commerce and Industry. Small and Medium Enterprise (SME) Funding Schemes. Online: http://www.legco.gov.hk/yr06-07/english/panels/ci/papers/ ci0612cb1-1849-3-e.pdflast accessed: 10 August 2014). Hong Kong Trade and Industry Department. Support and Consultation Centre for SMEs. Online: http://www.success.tid.gov.hk/english/lin_sup_org/ gov_dep/service_detail_6863.html (last accessed: 10 August 2014). 108 Leszek Kwieciński, Agnieszka Młodzińska-Granek A Systemic Approach to Entrepreneurship on the Regional and Local Level ABSTRACT Currently entrepreneurship and innovation do not only include technological or economic aspects. Particularly when it comes to the creation of local or regional initiatives that should comprise all endogenous elements, it is crucial to focus on all indicators, even if it is exclusively innovation itself that is being considered. The European Commission and the OECD created a new dimension for regional development, taking into account social and institutional factors. In the paper the authors introduce a new approach for understanding and describing the regional innovation system, called the systemic approach to entrepreneurship on the regional and local level. Keywords: entrepreneurship, regional innovation systems, innovation policy 109 Leszek Kwieciński, Agnieszka Młodzińska-Granek Przedsiębiorczość na poziomie regionalnym i lokalnym – podejście systemowe ABSTRAKT Obecnie przedsiębiorczość i innowacyjność nie dotyczą wyłącznie aspektów technologicznych, czy ekonomicznych. Szczególnie w przypadku tworzenia lokalnych i regionalnych inicjatyw, uwzględniających endogeniczne elementy, kluczowe są wszystkie czynniki dotyczące innowacji. Komisja Europejska i OECD stworzyły nowy wymiar dla rozwoju regionalnego, w którym uwzględnia sie również czynniki społeczne i instytucjonalne. W artykule autorzy prezentują nowe podejście do rozumienia i opisywania regionalnego system innowacji, mianowicie: systemowe podejście do przedsiębiorczości na poziomie regionalnym i lokalnym. Słowa kluczowe: przedsiębiorczość, regionalne systemy innowacji, polityka innowacyjna 110 A Systemic Approach to Entrepreneurship on the Regional and Local Level Introduction The study presents the concept of a system, i.e. a holistic approach to the creation, promotion and development of entrepreneurship. This study is based on the methodology of social sciences and economics. The main objective is to propose and define a framework for the creation and development of an entrepreneurship system support, especially on the regional and local level. This concept is the result of the international research project entitled “Culture of entrepreneurship in the humanities and social sciences. Comparative study based on the example of Poland and Germany”. The project is conducted by Leszek Kwieciński and Agnieszka Młodzińska-Granek, and the Fraunhofer Institute MOEZ from Lepizig, Germany. However, the very concept introduced in the article is an individual proposal of the Polish authors. From the Regional Innovation System to a systemic approach to entrepreneurship – composite elements The Regional Innovation System (RIS) is a set of various entities (actors) that affect the processes of innovation and the connections (relations) taking place between them. This is a system of entities, interactions and events, which as a result of synergy are generated in a specific territory and increase the capacity to absorb and diffuse innovations in the region. The regional innovation system is a system of interdependencies and connections taking place among the spheres of science, R&D, industry, finances and public authorities, which favor the processes of adaptation and collective learning. The existence of network connections and an innovation environment is the basis for such an activity (Kwieciński, 2011). The OECD identified four forms of connections in such a regional innovation system1: tt enterprise-enterprise connections, including the connections with commercial knowledge-intensive services for business (e.g. joint R&D activities, common products, patents) – frequently, as a result of such connections, clusters develop; 1 See more in: OECD (1999), Managing National Innovation Systems, OECD Paris. 111 LESZEK KWIECIŃSKI, AGNIESZKA MŁODZIŃSKA-GRANEK e nterprise-sphere of knowledge and research connections as well as public transfer of technology institutions (joint R&D activities); tt market transfer of technology, i.e. diffusion of knowledge and innovations by e.g. the purchase of machinery, equipment, licenses (indirect expenditures on R&D); tt mobility of employees and transfer of hidden and unidentified knowledge. tt The regional innovation system consists of complementary and interdependent subsystems, which include (Markowski, 2000): tt a production and services subsystem, which is created by business entities dealing with technological and industrial operations, implementations and the commercialization of new solutions; tt a research and development subsystem, which comprises different kinds of research and development entities, universities and other institutions of science operating in the area of innovations and transfer of technology; tt an institutional subsystem, which consists of the whole myriad of entities supporting the course of innovation processes (centers supporting innovations and transfer of technology), such as parks and incubators of technology, transfer of technology centers; tt a financial subsystem, which is composed of financial entities and instruments facilitating the generation of innovations and transfer of technology to the economy, such as loan funds, banks, venture capital and private equity funds; tt a social and cultural subsystem, which constitutes the cultural features characteristic and specific of a given region (tradition, history), systems of values, forms and channels of communication, level of trust – system of specific behaviors and unrepeatable cultural and structural features of a given region, which at the same time is a consultation platform with social and civic partners. Scheme 1. Regional Innovation System – traditional approach Public authority on the regional or local level (public offices, agencies) R&D Sector Universities Research Institutions Institutions of business development and support Regional development agencies Centers of knowledge and technology transfers Academic and technology incubators Technology parks Finance institutions: Venture capital, business angels networks, Loan and Guarantee Funds Clients, customers, stakeholders Source: Own proposal. 112 Business sector SMEs especially: spin-offs, spin-outs, start-ups A Systemic Approach to Entrepreneurship on the Regional and Local Level Thus, the regional innovation system is a complex, territorial and systemic approach to the problem of innovativeness of the economy. Its functioning favors the reduction of innovation risk for a specific business entity, it facilitates the absorption of different kinds of knowledge, it provides the possibility of interactive learning and an exchange of experiences. It is the basis for building competitiveness of the region in the era of a global economy where innovation, knowledge and the process of learning are the key factors of business success. It also allows for the adaptation of the regional economies to the process of globalization (Tödling, 1999). The regional innovation policy should be created on the basis of the aforedefined regional innovation system, through which it becomes a kind of materialization of the provisions of the regional innovation strategy. The regional authorities are the element binding the activities of individual elements of the regional innovation system together. Regional innovation systems are usually administratively separate systems. In addition to the administrative approach, each region should rely on its historically determined sense of regional identity or geographic conditions. Based on human, social and endogenous factors, the authors suggest that there is a need for a wider approach for understanding and describing the RIS. The authors’ systemic approach related to social sciences is understood as the recognition of macro- and medium-ranged enterprises, and it encompasses entrepreneurship at three levels: input, system, output. At the level of input behavioral aspects are being identified, e.g. potential resources (human, relational [network], social capital) related to entrepreneurial attitudes. It is based on the Theory of Planned Behavior (Icek Ajzen, 1991) and the Model of Entrepreneurial Event (A. Shapero, I. Sokol, 1982). In this aspect quantitative research (surveys) should be conducted. The Theory of Planned Behavior (Ajzen, 1991), to a great extent, belongs to the psychological research field. It assumes that human behavior is the outcome of intentions that are determined by three factors associated with perception: tt the perception of the attractiveness of the object or activity (attitude) that is presented towards these objects or activities; tt the perception of the social norms, i.e. the belief whether society accepts a given behavior or not; tt the perception of control over behavior, i.e. predicting the possibilities and constraints of a given behavior. The Model of Entrepreneurial Event (Shapero i Sokol, 1982) assumes that it is the intention that preludes an entrepreneurial behavior. If there is a proper opportunity, this kind of behavior will occur. It depends first of all on the individual’s perception of her/his own willingness (perceived desirability) and feasibility of her/his intentions (perceived feasibility). Both these factors depend on the external impacts. The third indicator of human intentions is the propensity to act. Events play an extremely important role in 113 LESZEK KWIECIŃSKI, AGNIESZKA MŁODZIŃSKA-GRANEK the process of activating entrepreneurship. Events are specific incentives that invigorate economic activity. An event might be a graduation, institutional incentives or market offer, but also the loss of a job. Basing on the above theoretical assumptions, the authors suggest that surveys should be the used research tool. The proposed general content of the surveys is as follows: 1. Entrepreneurial attitudes (assessment of own entrepreneurship, education and activity during studies, motivation to start own company). 2. Issues concerning planned activity after graduation. 3. Evaluation of innovation and entrepreneurship centers by students, researchers and graduates. The second level – the system – is defined as a network of public and private institutions and programs, which comprise support for entrepreneurship. This system has been described in the Concept of Innovative Milieu (Jean-Claude Perrin, 1989) and the Concept of a Growth Pole (F. Perroux, 1949; A.O. Hirschman, G. Myrdal). Institutions are understood here as described in the neo-institutional approach (J.G. March and J.P. Olsen) (March and Olsen, 2005). The Concept of Innovative Milieu is based on the geographical conditions (economic, social, physical) of production. Jean-Claude Perrin has defined the “innovative environment” as a territorial distinct, where innovation networks evolve through cooperation of actors who exchange their stocks, through cooperation (convergence). This exchange generates very specific effects for innovation. In the Concept of a Growth Pole economic growth does not develop equally, but appears in points/poles with different intensity. These poles are fundamental for new entrepreneurial activities. A crucial element of this concept is the communication infrastructure (institutions of business development and support), which is necessary for gaining and processing information regarding innovation processes (Kwieciński, 2005). These elements should be identified by quantitative and qualitative research in the form of in-depth interviews (IDIs) with selected public and private institutions. Quantitative research should include the number and type of support institutions and programs, which are dedicated to entrepreneurship and innovation in the local or regional dimension. At the third level – the output side – the available company resources are being identified. The theoretical basis is the Economic Base Theory (Robert Murray Haig, 1928). This theory helps to describe the endogenous factors and possibilities of SMEs (city, region), and it allows to identify the so-called basic activities (products, services), which are specific to “the power of region or city”, especially in terms of internationalization. Currently the European Commission is implementing this concept, among other things, within the idea of smart specialization (Kwieciński, 2005). The elements should be identified by quantitative and qualitative research in the form of IDIs with SMEs. Quantitative research should include the 114 A Systemic Approach to Entrepreneurship on the Regional and Local Level number and type of innovative and non-innovative SMEs, the type of innovation and internationalization activities, which are strongly linked to the local or regional resources. As a result, having the identified effects on the output side, and using the feedback mechanism, it is possible to determine the elements of the system, which should be modified both on the input (education, skills) as well as on the very system side (institutions, programs). The above-described approach allows to determine the endogenous and the actual characteristics and properties of the system, fully based on its strengths and weaknesses. This could be particularly useful for comparative research. Based on this approach, the authors have already conducted research in Wrocław, Poznań and Kraków (Kwieciński i Młodzińska-Granek, 2014). INPUT (entrepreneurship attitudes, human resources) SYSTEM (Institutions, Organizations, Programs) OUTPUT (firms, products, services, factors of competitiveness) Feedback Scheme 2. Systemic approach to entrepreneurship – original concept Source: Own proposal. Summary There is a clear drawback in the perception of innovation policies, especially on the regional and local level. It seems that the traditional approach towards the RIS does not cover all the necessary factors that influence the development of innovativeness of regions. Hence, more and more approaches appear that emphasize the significance of factors other than just the technology or economy of the region. The proposal introduced in the article also underlines the meaning of such factors, and these are, among others: the institutional environment, human resources, entrepreneurial attitudes, or support programs. Furthermore, the significance of communication between all the elements of the system is emphasized. Such holistic approaches might bring more actual changes not only to the field of research on innovation policy, but also to the realm of regional entrepreneurship and innovativeness. 115 LESZEK KWIECIŃSKI, AGNIESZKA MŁODZIŃSKA-GRANEK References Ajzen I. (1991). The Theory of Planned Behavior, Organizational Behavior and Human Decision Processes, Vol. 50. Kwieciński L. (2005). Parki technologiczne jako element polityki badawczo-rozwojowej w Polsce i w krajach Unii Europejskiej, Wydawnictwo Uniwersytetu Wrocławskiego, Wrocław. Kwieciński L., Młodzińska-Granek A. (2014). Academic Entrepreneurship in the Humanities and Social Sciences. Research Conducted among Students of Wroclaw University, Horizons of Education, Entrepreneurship Education, Vol. 13, No. 26. Kwieciński L. (2011). The creation of the Regional Innovation System – interdisciplinary point of view. In: A. Trzcielińska-Polus, B. Curyłło, S. Garsztecki (eds.), Collective identity, international cooperation and national interest in Europe and beyond. Wydawnictwo Instytut Śląski, Opole. March J.G., Olsen J.P. (2005). Instytucje. Organizacyjne podstawy polityki. Wydawnictwo Scholar, Warsaw. Markowski T. (2000). Regionalne systemy innowacji w aspekcie strategii rozwoju regionalnego Polski 2000–2006. In: J. Szlachta (ed.), Narodowa Strategia Rozwoju, Biuletyn KPZK PAN nr 191/2000, Warsaw. OECD (1999). Managing National Innovation Systems, Paris: OECD. Shapero A., Sokol L. (1982). Social Dimensions of Entrepreneurship. In: C. Kent, D. Sexton, K. Vespers (eds.), The Encyclopedia of Entrepreneurship, Prentice-Hall: Englewood Cliffs, New York. Tödling F. (1999). Innovation Networks. Collective Learning and Industrial Policy In Regions of Europe, European Planning Studies 7, Brussels. 116 abstrakty abstrakty Mirosław Grochowski Sektor kreatywny – instrument wzmacniania bazy rozwoju ekonomicznego miasta ABSTRAKT Celem artykułu jest zarysowanie roli sektora kreatywnego w procesach rozwoju ekonomicznego miast oraz wskazanie sfer interwencji władz publicznych, których celem jest mobilizacja, wsparcie rozwoju i efektywne wykorzystanie potencjału rozwojowego sektora kreatywnego. W artykule wykorzystano wyniki dwóch projektów: Creative Metropoles i Cross Innovations, realizowanych w ramach Programu Współpracy Międzyregionalnej INTERREG IVC, w których udział brało Miasto Stołeczne Warszawa. Sytuację i doświadczenia Warszawy wykorzystano w artykule dla zilustrowania zawartych w nim tez i rekomendacji, dotyczących m.in. roli i zadań władz publicznych we wspieraniu rozwoju sektora kreatywnego. Słowa kluczowe: sektor kreatywny, rozwój miast 119 abstrakty Katarzyna Rostek, Agnieszka Skala Profil przedsiębiorstw sektora wytwórczego wysokich technologii w Warszawie ABSTRAKT Celem pracy była identyfikacja oraz scharakteryzowanie warszawskiego sektora przetwórczego wysokich technologii (HT). Przy tej okazji wykazano użyteczność danych internetowych jako źródła uzupełniającego analizę danych statystycznych oraz przedstawiono główne profile podmiotów z badanej grupy przedsiębiorstw. Do analizy wykorzystano dane bazy REGON z grudnia 2012 r. oraz dane pozyskane ze stron internetowych firm w pierwszej połowie 2013 r. Do wyjściowej grupy badawczej wybrano wszystkie warszawskie przedsiębiorstwa, których klasyfikacja PKD wskazywała na produkcję wyrobów wysokiej techniki. Spośród nich wyodrębniono te podmioty, które są: aktywne, mają strony internetowe oraz ich oferta jest zgodna z deklarowaną działalnością w zakresie wysokich technologii. Przedsiębiorstwa te określono jako warszawski sektor HT i scharakteryzowano za pomocą metody statystyki opisowej, a następnie dokonano ich segmentacji. W tym celu zastosowano klasteryzację metodą analizy skupień Warda, a następnie automatyczne profilowanie segmentów. Przedstawiona analiza warszawskiego sektora przedsiębiorstw produkcyjnych high-tech została wykonana w ramach projektu „Stołeczne Forum Przedsiębiorczości”. Słowa kluczowe: przedsiębiorczość, wytwórczość, wysoka technologia, charakterystyka, Warszawa 120 abstrakty Magdalena Kubów Przedsiębiorczość w sporcie w wymiarze lokalnym. Studium przypadku miasta stołecznego Warszawy ABSTRAKT Celem niniejszego opracowania jest przedstawienie lokalnych uwarunkowań rozwoju przedsiębiorczości w branży sportowej w Warszawie. Uwypuklono także aspekt związku między przedsiębiorczością w sporcie w regionie a jego rozwojem. Badania terenowe, stanowiące zasadniczą część mojego projektu badawczego, są przeprowadzane z wykorzystaniem metody badań jakościowych – wywiadu antropologicznego. Część empiryczna poświęcona została na zaprezentowanie fragmentu wyników badań własnych dotyczących lokalnych uwarunkowań rozwoju przedsiębiorczości w branży sportowej. Wyniki badań wskazują na to, że przedsiębiorcy z branży sportowej dostrzegają możliwości współpracy z miastem. Pogłębienie rozumienia zjawiska przedsiębiorczości z uwydatnieniem specyfiki określonej branży w kontekście regionalnym jest tematem istotnym, gdyż tak ściśle zawężony obszar nie podlegał eksploracji na gruncie polskich badań naukowych. Słowa kluczowe: przedsiębiorczość, rynek sportowy, uwarunkowania lokalne 121 abstrakty Julita E. Wasilczuk, Krzysztof Zięba Wpływ miejskiej lokalizacji na możliwości wzrostowe małych firm ABSTRAKT Cel: Celem badania była identyfikacja różnic między profilami firm oraz profilami ich właścicieli w zależności od miejskiej/pozamiejskiej lokalizacji firm. Ponadto, celem było zbadanie znaczenia tych różnic dla osiągania wzrostu przez firmy z obu rodzajów lokalizacji. Metodologia: W oparciu o studia literaturowe sporządzono kwestionariusz badawczy, którym przebadano 1005 małych firm z wybranych powiatów województwa pomorskiego. Porównano 436 małych firm zlokalizowanych w powiatach miejskich Gdańsk, Sopot i Gdynia z 569 firmami zlokalizowanymi na obszarach pozamiejskich. Zaobserwowane różnice przebadano pod kątem ich statystycznej istotności. Rezultaty: Miejscy przedsiębiorcy okazują się być lepiej wykształceni, bardziej doświadczeni i w większym stopniu wykazują się pozytywnymi motywacjami przedsiębiorczymi. Ich firmy są bardziej innowacyjne, częściej podnoszą kwalifikacje pracowników i mają lepszy dostęp do infrastruktury przedsiębiorczej. Jednakże nie rosną w tempie szybszym niż firmy pozamiejskie. To sugeruje, że korzyści płynące z lokalizacji miejskiej są równoważone towarzyszącymi im kosztami takiej lokalizacji. Ograniczenia badania: Badania były ograniczone jedynie do terenu województwa pomorskiego. Co więcej, niektóre firmy sklasyfikowane jako pozamiejskie były zlokalizowane w niewielkich miasteczkach, co czyni je nieco podobnymi do firm miejskich. Ten rodzaj badań powinien być kontynuowany z wykorzystaniem bardziej spolaryzowanej próby badawczej, gdzie zróżnicowanie obu grup podmiotów byłoby wyraźniejsze. Znaczenie: Przeprowadzone badania rzucają światło na problematykę wpływu miejskiej/pozamiejskiej lokalizacji małych firm na ich możliwości wzrostowe. W Polsce brak jest, jak dotąd, szczegółowych badań na ten temat. Słowa kluczowe: zakładanie firm, wzrost firmy, lokalizacja, profil mikroprzedsiębiorstwa 122 abstrakty Lidia Kaliszczak Kształtowanie klimatu sprzyjającego przedsiębiorczości na poziomie lokalnym ABSTRAKT W opracowaniu podjęto problem kształtowania klimatu przedsiębiorczości przez władze samorządowe gmin, jako zasadniczego czynnika wspierania aktywności gospodarczej. Celem opracowania jest ukazanie roli lokalnych władz w stymulowaniu przedsiębiorczości w kontekście kształtowania klimatu sprzyjającego przedsiębiorczym postawom, w zakresie podejmowania i prowadzenia działalności gospodarczej. Przyjętą tezą badawczą jest twierdzenie, że przedsiębiorczość na poziomie lokalnym determinuje w znacznej mierze postawę lokalnej władzy publicznej, przejawianą w zachowaniach wyrażających odpowiedzialność za kreowanie przesłanek przedsiębiorczości i podmiotowości w procesach sprawowania władzy. Analizy i oceny procesów stymulowania przedsiębiorczości na poziomie lokalnym w aspekcie kształtowania klimatu przedsiębiorczości dokonano w toku sondażowych badań ankietowych, zrealizowanych wśród losowo wybranych 35 gmin województwa podkarpackiego. Udział w badaniach zadeklarowało 25 gmin wiejskich oraz 10 miejskich i miejsko-wiejskich. Przedmiotem analizy w realizowanych badaniach były takie zagadnienia, jak: –kompetencje pracowników odpowiedzialnych za działania wspierające lokalne inicjatywy bądź te inicjatywy tworzące; –pojmowanie istoty przedsiębiorczości przez pracowników gminy; –wartości stanowiące podstawę zachowań i działań na rzecz wspierania przedsiębiorczości. Badania mają charakter poznawczy w zakresie przedsiębiorczej orientacji gminy jako podmiotu kształtującego kulturę przedsiębiorczości, co stanowi cenną wartość pracy. Słowa kluczowe: J. Schumpeter, klimat przedsiębiorczości, gmina, przedsiębiorczość lokalna 123 abstrakty Małgorzata Osińska Hongkong był wyspą. Proces powstawania globalnego miasta ABSTRAKT Cel: Celem poniższego artykułu jest analiza procesu powstawania globalnego miasta na przykładzie Hongkongu, który w czasie swojej stosunkowo krótkiej historii dokonał transformacji z małego portu rybackiego w megamiasto, z odizolowanej wyspy w główne centrum całego regionu Delty Rzeki Perłowej (DRP). Metodologia: Przyjmując perspektywę historyczną w artykule zostaną przedstawione kolejne stopnie integracji Hongkongu z Chinami kontynentalnymi, w szczególności zaś z Shenzhen. Artykuł ma również na celu przeanalizowanie jak niewielkie zmiany w przestrzeni miejskiej pomiędzy oraz wewnątrz miast regionu DRP wpływają na proces integracji całej konurbacji. Wnioski: Artykuł podkreśla, iż te interwencje rekonstruują przestrzeń danych miast oraz sieć połączeń komunikacyjnych pomiędzy nimi. Jednocześnie redefiniując przy tym koncepcję centrum i peryferii, a także rekonfigurując znaczenie geografii społeczno-politycznej i ekonomicznej całego regionu. Relacja między Hongkongiem, a Shenzhen i regionem DRP w ciągu ostatnich 30 lat przekształciła się z konkurencyjnej w komplementarną. Wartość/Oryginalność: Analiza dwustronnej relacji pomiędzy Hongkongiem a Shenzhen może pomóc w lepszym zrozumieniu lokalnego kontekstu tego miejsca. Poprzez lepsze poznanie infrastruktury regionu poszerza się również wiedza o lokalizacji i strategicznym położeniu centrów biznesowych i linii produkcyjnych. Słowa kluczowe: Hongkong, globalne miasto, przedsiębiorczość, Shenzhen, urbanizacja 124 abstrakty Leszek Kwieciński, Agnieszka Młodzińska-Granek Przedsiębiorczość na poziomie regionalnym i lokalnym – podejście systemowe ABSTRAKT Obecnie przedsiębiorczość i innowacyjność nie dotyczą wyłącznie aspektów technologicznych, czy ekonomicznych. Szczególnie w przypadku tworzenia lokalnych i regionalnych inicjatyw, uwzględniających endogeniczne elementy, kluczowe są wszystkie czynniki dotyczące innowacji. Komisja Europejska i OECD stworzyły nowy wymiar dla rozwoju regionalnego, w którym uwzględnia sie również czynniki społeczne i instytucjonalne. W artykule autorzy prezentują nowe podejście do rozumienia i opisywania regionalnego system innowacji, mianowicie: systemowe podejście do przedsiębiorczości na poziomie regionalnym i lokalnym. Słowa kluczowe: przedsiębiorczość, regionalne systemy innowacji, polityka innowacyjna 125 ABOUT AUTHORS About authors Prof. Jerzy Cieślik Akademia Leona Koźmińskiego e-mail: cieslik@kozminski.edu.pl Mirosław Grochowski, Ph.D. University of Warsaw e-mail: m.grochowski@uw.edu.pl Lidia Kaliszczak, Ph.D. University of Rzeszów e-mail: lidia.kaliszczak@neostrada.pl Prof. Izabela Koładkiewicz Akademia Leona Koźmińskiego e-mail: izabela@kozminski.edu.pl Magdalena Kubów, MA Warsaw University e-mail: mkubow@wz.uw.edu.pl Prof. Leszek Kwieciński University of Wrocław e-mail: leszek.kwiecinski@uni.wroc.pl Agnieszka Młodzińska-Granek, MA, Ph.D. Candidate University of Wrocław e-mail: agnieszka.mlodzinska@uni.wroc.pl Małgorzata Osińska, Ph.D. Candidate Zhejiang University in Hangzhou, China e-mail: malosi1875@gmail.com Katarzyna Rostek, Ph.D. Warsaw University of Technology e-mail: K.Rostek@wz.pw.edu.pl 127 ABOUT AUTHORS Agnieszka Skala, Ph.D. Warsaw University of Technology e-mail: askala@wt.pw.edu.pl Prof. Julita E. Wasilczuk Gdańsk University of Technology e-mail: jwas@zie.pg.gda.pl Krzysztof Zięba, Ph.D. Gdańsk University of Technology e-mail: kzieba@zie.pg.gda.pl 128 T his book contains the results of the Conference “Entrepreneurial Cities”, which was organized in July 2014 as part of the Project “The Warsaw Entrepreneurship Forum” by the Kozminski University in collaboration with the Authorities of the City of Warsaw. It brought together Polish and foreign researchers from various research centers. The by them presented research results allowed for a broader perception and a better understanding of the complex issue of urban entrepreneurship, especially in large metropolitan areas, which offer a unique environment for business activity that translates into their further development. Urban entrepreneurship can be perceived and studied on many different levels and in various dimensions. There is no doubt, however, that its basic components are the local business communities and entrepreneurial city authorities. Without the collaboration of these actors, the creation of an entrepreneurial city would not be possible. The starting point for this cooperation should be a mutual understanding of each other between these groups. City authorities should start by getting to know the needs and expectations of entrepreneurs, while entrepreneurs should be aware of the possibilities for action that the ofcials of local government units have and what limitations there are in this respect. We hope that this book will be an inspiration to undertake further studies of the phenomenon of entrepreneurial cities, and that the obtained results will expand our knowledge in this eld. Prof. ALK dr hab. Izabela Koładkiewicz Prof. ALK dr hab. Jerzy Cieślik P110 90 10 1 Publikacja współfinansowana przez Unię Europejską w ramach Europejskiego Funduszu Społecznego
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