Investment in soft infrastructure involves investing in improving the commercial environment for businesses. Possible projects include: Enabling or providing skills training
In communities where enterprise has not been a key priority, enterprise training could be targeted. Wherever possible this should be linked to education programs in schools. The provision of skills training should be demand-led, i.e. training should be provided in response to employer skills needs. Providing increased business focused education and access to education
The more schools can do to prepare young people for the ‘world of work’ the better. Projects could include: work ethics, information technology, basic entrepreneurship education and sector studies where students can study key business sectors of importance to their communities. Meanwhile, if adult literacy is a major problem, it could be addressed through education and outreach strategies. Supporting research and development
Research and development support can be provided through collaborative projects between businesses and institutions of higher learning. A local research fund could be established, or a graduate placement program, where new graduates can pass on their skills to local businesses. Providing business advisory services
This service could start with one person who just points people in the right direction, e.g., to lenders, skills training and so on. Clear sign posting is the key to good business advisory services. Good practice points to one-stop shops as an effective way of providing technical and financial support. Effective one-stop shops are usually housed in one building where local businesses may access all the technical support they need. Good practice also points to these facilities offering a one-stop service center for all local authority legal and regulatory issues as well as business issues. These services are often housed in buildings that have become redundant due to structural change so the one-stop shop facility may also be used to house incubator or managed work or office space, thus generating cost savings. The provision of access to capital and finance
At the most basic level, this could be a sign posting service where businesses are directed to potential sources of finance. Local authorities rarely become involved in detailed advice to businesses on funding issues as these services are provided by specialist institutions. However, local governments can provide information on national programs in this or other areas. Supporting the development of business and trade associations
This is a basic institution building process that could bring considerable benefits to the business community and LED efforts. Ideally all towns/cities should have a number of these organizations including Chambers of Commerce, Boards of Trade, etc. More specific groups can be supported such as town center promotion groups, sector activities such as a tourism marketing group or an exporters club. Most are likely to need some initial funding to start the scheme and capacity building support. Improving delivery of local government services to businesses
A key area as businesses are not only the drivers of the local economy, they are also potential ambassadors. A happy business person may well be able to attract more businesses to the area. All aspects of regulations, taxation and licensing are candidates for review to minimize cost, time and frustration for businesses, whilst maintaining appropriate necessary environmental and related standards. Social inclusion strategies
A first stage should be to establish who and where the most vulnerable communities are, and then develop strategies to include them. These strategies could include, for example, language programs for ethnic minority communities, helping women in/back to work, encouraging the recruitment of disabled people into the workplace, and encouraging social activities for the very young and elderly citizens. Crime prevention measures
Introducing good citizenship classes into the school curriculum; initiating after-school activities to keep young people busy. Other initiatives could include everything from drug-free zones to imposing curfews at night. Case Studies
(While we hope you might find the links below of interest, please note the World Bank is not responsible for the content of non-World Bank websites) Haiti -- (This is an example of investment in soft infrastructure) Indonesia -- (This is an example of encouraging local business growth and investment in soft infrastructure). Indonesia -- (This is an example of encouraging local business growth and promoting domestic inward investment). Malawi -- (This is an example of participation in policy reform and iInvestment in soft infrastructure). Ukraine -- (This is an example of investment in hard and soft infrastructure). South Africa, Winterveld -- (This is an example of investment in soft infrastructure) South Africa -- (This is an example of investment in soft infrastructure) Vietnam, Haiphong -- (This is an example of area targeting, encouraging local business growth and investment in hard and soft infrastructure). |
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