The Steinbeis experts in Villingen-Schwenningen are coordinating an economic development project for three municipalities in the black forest
The Steinbeis Transfer Center Economy, Foundation, Commune in Villingen-Schwenningen has been directing and managing the multi-community economic development project “EGON” for over two years. So now is a suitable time for a first look back at the scopes identified as requiring action and what the Steinbeis experts have been doing locally to address them.
The “EGON” business startup initiative was launched around a decade ago and for the past few years has encompassed the common economic zone comprising the municipalities of Dauchingen, Deisslingen and Niedereschach in the Black Forest region of Baar-Heuberg. Two years ago, the Steinbeis Transfer Center Economy, Foundation, Commune was engaged to take over the project management as part of a realignment process. Metaphorically speaking, the Steinbeis experts used the first few weeks and months to turn over every single stone in the area covered by the EGON initiative. This helped them identifying untapped potential, unmet needs and scope for additional actions, providing a picture of how the successful project could be developed for the future.
A new approach: from one pillar to three
The economic development program was originally focused on supporting business start-ups. However, since taking over the project management, the Steinbeis experts have added another pillar that focuses directly on the needs and challenges of established companies. They have also created a third pillar aimed at significantly ramping up general economic development activities such as public relations (PR) and location marketing. The team members´ diverse network of from both inside and outside the Steinbeis Network is also proving to be a key success factor. Given the frequently complex, multifaceted nature of the issues confronting businesses, the ability to draw on this network at short notice as and when necessary is a valuable asset.
Another feature of the new approach is that it seeks to systematically and continuously identify the needs of start-ups and in particular established companies. With this in mind, during the first few months the team held a series of informal group discussions with entrepreneurs from the EGON economic zone, analyzed their needs, challenges and expectations, and forged contacts. They simultaneously started carrying out company visits that provided a wealth of additional information. Both of these actions preceded the key step of undertaking a systematic needs analysis in the shape of a standardized company survey. The economic development measures could then be specifically targeted to address the survey’s findings.
The action areas: cooperation, digitalization and training
Based on the company survey, the Steinbeis experts identified a wide range of needs, along with potential actions to address them. In quantitative terms, three action areas have proven to be especially important. The first of these areas concerns networking and cooperation. The survey results clearly indicated that established companies felt there was a need for better information about opportunities for cooperation within the EGON economic zone. They also highlighted a lack of spaces for networking and discussion. Several participants in the survey expressed an interest in initiating and/or strengthening local partnerships. “We addressed this need directly by organizing regular pub evenings and meetings for companies in the EGON economic zone”, says Steinbeis Entrepreneur Wolfgang Müller. The themes of these get-togethers vary and are communicated in advance by email and in the municipalities’ official bulletins. They have been very well received so far, and a number of promising partnerships are already in the offing.
The second key action area identified relates to the digital transformation occurring across the entire EGON economic zone. Around two thirds of the businesses that took part in the survey said they plan to introduce or expand digital business processes in the near future. The fact that better Internet connectivity was furthermore the most frequently selected option from a list of ten potentially relevant location factors made it clear that urgent action is required in this area. At first, it seemed it would be challenging to achieve a rapid and lasting improvement in Internet connectivity. Unlike promoting local cooperation, this could only be done by involving at least one external actor, for example the Internet service provider. A fast and reliable Internet connection is absolutely vital for many businesses in the economic zone, especially industrial enterprises. “So we were delighted to find a partner very quickly who was able to rapidly provide a fiber-optic network with a minimum of bureaucracy”, enthuses Steinbeis project assistant Marcel Reiner. The new network can comfortably handle even large volumes of data. The EGON project also regularly runs a virtual digitalization clinic providing advice on questions that have been submitted in advance.
The third key action area is (vocational) training. Just about 30 percent of the companies that took part in the survey currently offer vocational education positions. This is unsurprising given the predominance of small businesses in the EGON economic zone, since small businesses are less likely to take on apprentices. However, since vocational education is a key strategy for recruiting the y offspring that will help to secure a company’s future, it is safe to say that the benefits outweigh the cost, regardless of a company’s size. Moreover, the demographics of rural areas mean that it is in the municipalities’ interest to offer
employment prospects to young people that encourage as many of them as possible to stay in the area. After all, it is far from certain that young people who do their training elsewhere – often in urban will return to the region afterwards. Furthermore, after consulting interested young people and their parents, it became clear to the Steinbeis experts that although they are often interested in training locally, there is not enough information about the available opportunities. There is thus also a need for action in this area. This realization led to the establishment of a career guidance and job finding project shortly after the survey was completed. One aspect of the project involves enhancing the structures for connecting interested students with local businesses through the creation of a resource that pools details of local internships. The project also plans to involve multiple actors with a direct connection to the labor market, especially the regional Employment Agency (Agentur für Arbeit). By connecting with these actors, it is intended to improve local communication and use of existing structures and services with a view to simplifying the recruitment process for companies and the internship-seeking process for young people. A labor recruitment partnership with the Employment Agency is also run in order to integrate Ukrainian refugees into the EGON economic zone’s labor market. As part of this initiative, a very well-attended “speed dating” event for refugees and businesses looking to recruit new staff was held in July 2024. The partnership falls under the auspices of the Federal Ministry of Labor and Social Affairs “Job-Turbo” initiative, a nationwide program to accelerate the integration of refugees into the labor market.
Still more to come
After two years, the projects, partnerships and positive response from businesses all bear witness to the fact that the Steinbeis experts’ approach is working. The decision to continue the partnership beyond its original two-year term was already taken some time ago. And it’s safe to say that there will be as much if not more to do. The recommendations derived from the company survey remain on the agenda and it is likely that the future will bring new, external developments and innovations that will affect the EGON economic zone and the competitiveness of the local economy. While it is not yet possible to say what actions the EGON project will take to address these new challenges, we can confidently state that there are no limits for an initiative that has gathered genuine momentum.
You can find more information about the origins and concept of the “EGON” project in Steinbeis TRANSFER magazine 01/2023, p. 85f.
Contact
Marcel Reiner (author)
Project assistant
Steinbeis Transfer Center Economy, Start-Up, Commune (Villingen-Schwenningen)
www.start-mit-steinbeis.de