brochure irp colombia 2014
DESCRIPTION
Brochure International Research Project Colombia 2014TRANSCRIPT
2014
international research projectcolombia
www.irp-maa.nl
international research project
colombia
InternatIonal research project 20144
InternatIonal research project 20145colombIa 5
preface
about
colombia
the netherlands & colombia
Financial arrangements
our expertise = your advantage
research method
research possibilities
Former clients
board of recommendations
contact
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content
InternatIonal research project 20146
In the midst of global financial crises and increasing scarcity of commodities, Latin America is enjoying an economic renaissance and rapidly becoming an important continent in terms of its (growing) size of markets, economic growth and source of natural resources and commodities.
Colombia, with its 48 million inhabitants, is one of these emerging economies in Latin America. There has been a gradual economic opening and economic growth has been strong during recent years. Colombia now ranks high on a global competitiveness survey for business sophistication, market size, and strength of investor protection. In 2012, Colombia’s GDP grew more than 4% to a total of 370 billion USD, positioning Colombia as the 30th economy in the world. The Free Trade Agreement with the European Union became effective in August 2013.
The bilateral trade relations between Colombia and the Netherlands has shown a spectacular increase in the past decade. Today, the Netherlands is, after Spain, the most important export destination for Colombia within the EU, positioning itself as the gateway to Europe.
a relationship in transition: from aid to trade
The Netherlands has supported Colombia for
over 50 years through development cooperation.
Although the internal armed conflict has not
yet been resolved, the overall security situation
has improved significantly over the past years.
Foreign companies now flock into the country to
set up new businesses.
In view of these changing conditions and new
economic opportunities, our focus is currently
on increasing the Dutch participation in the
growing Colombian economy. Against this
background, the Dutch embassy in Bogotá is
implementing the so-called transition strategy.
Its objective is to move from aid to trade,
expanding bilateral trade, and investment
between the Kingdom of the Netherlands
and Colombia. In that respect we focus on
the following priority sectors: agriculture,
water, ports & infrastructure, environmental
technology, oil & gas, life sciences and biomass.
preface
InternatIonal research project 20147
The establishment in 2013 of the Holland House
in Bogotá, the first of its kind in the world, will
certainly entice more Dutch companies to start
doing business in Colombia.
the only risk is that you want to stay
The Colombians use to say: the only risk is that
you want to stay with us! Indeed, this country
has a lot to offer. I am confident that many more
Dutch businesses will establish themselves in
Colombia in the upcoming years. As a member
of the MAA IRP 2014 Recommentation Board,
allow me to wish the participants the best of
luck in their preparations of this year’s research
project. At the same time, I recommend Dutch
companies to seize this opportunity to explore
the Colombian market through a dedicated
group of Netherlands based students.
Robert van Embden
Ambassador of the Kingdom of the Netherlands to Colombia
InternatIonal research project 20148
marketing association amsterdam (maa)
The MAA is an association for students who have an interest in marketing. The MAA fulfills an intermediary role between students, universities and businesses. Its aim is to promote and exchange marketing knowledge, skills and experience. This is accomplished by organizing various activities, such as the International Research Project.
International research project (Irp)
The IRP is the research project of the MAA, which is conducted by internationally oriented students following, for example, a marketing- or business-related study. Since 1990, successful research
has been conducted in many countries all over the world for multiple (Dutch) companies. The research group is formed by 18 highly motivated students (including the IRP board) from the Vrije Universiteit (VU) and the Universiteit van Amsterdam (UvA).
coordination of the project
The project is coordinated by the IRP board, which consists of six master students. The board is responsible for coordinating the entire project, which lasts for 18 months. In addition, the project is being supervised by one professor of the Vrije Universiteit (VU) and one of the Universiteit van Amsterdam (UvA). Moreover, the project is supported by the Board of Recommendations, which consists of both professors and business professionals.
Destination: colombia
In the summer of 2014, the IRP will travel to Colombia to conduct four weeks of research for Dutch clients. Colombia is an emerging and fast growing economy, offering many opportunities for internationally oriented companies. The IRP offers your company the opportunity to explore the business opportunities of one of the fastest growing countries of the world.
about
InternatIonal research project 20149
In the last decade, Colombia has transformed into one of the most important economies of Latin America. With its ideal location in the northern part of South America, Colombia is the international gateway to the entire continent. Because of the steady growth in GDP, Colombia was named as one of the CIVETS countries. These countries are the fastest rising economies in the world, which have the most promising investment opportunities. Over the last two years international investments in Colombia have indeed been growing strongly.
Over the past three years, Colombia’s real GDP has grown by an average of 5% per year, building on almost a decade of strong economic performance. Furthermore, the sound economic policies and promotion of free trade agreements by the government has led to a 30% increase in international trade within the last three years, and a generally transparent investment climate.
Colombia is known for several economic hotspots. Whereas the capital Bogotá is the political, financial and professional centre, cities like Medellín, Cali and Cartagena house many corporate headquarters as well. Medellín was named most innovative city of the world by the Wall Street Journal (2012).
Numerous new opportunities for foreign investment rise as a result of the transformational development, economic growth, and the stimulating government policies for international trade. Because of these developments, Dutch companies should seek their value in this upcoming market within the numerous possibilities for research. Exploring the endless opportunities of Colombia? The time is now!
colombia: the facts • Capital: Bogotá• Government type: Republic• Currency: Colombian Pesos (COP)• Population: 46.75 million (2013 est.)• GDP: $511.1 billion (2012 est.)• GDP per capita: $11,000 (2012 est.)• GDP growth rate: 6.6% (2011 est.),
4% (2012 est.)(statistics from the cIa World Factbook)
colombia
InternatIonal research project 201410
The Netherlands is one of Colombia’s largest export partner after the United States, Venezuela, Spain and China. Export to the Netherlands equals 4% of the total amount of Colombia’s export. The Dutch port of Rotterdam is the gateway to the European Union.
Besides exporting to the Netherlands, Colombia imports medical products, telecommunication equipment, machinery, and means of transportation from the Netherlands. Despite this, the Netherlands has a trade deficit with Colombia. This deficit is caused by the extensive Dutch import of coal, steel, vegetables, and fruit from Colombia. To reach a more equal trade balance, the Dutch government has initiated several projects to stimulate organizations to invest in Colombia. To improve the trade position with Colombia the Dutch government initiated several financial arrangements, which are described on page 11 – 15.
possibilities
The EU and Colombia concluded a Free Trade Agreement in 2012 to stimulate the export from Europe to Colombia. Since the Netherlands is a well educated country with a wide variety of knowledge and skills, it has the necessary capabilities to contribute to export these knowledge and skills.
As the Dutch are experienced in Building with Nature, this expertise is wanted regarding the development of ports and infrastructure. To control the floods that Colombia regularly faces Dutch knowledge is needed to develop water management systems or build floating houses. However, this does not imply other sectors are not successful in Colombia.
Thanks to Colombia’s location among the Equatorial zone and the tropic weather conditions, there are many opportunities for broad agricultural and farming investments. Other upcoming and growing sectors in Colombia are for example healthcare and pharmaceuticals, energy and ICT. More specific information about these and other interesting sectors can be found on our website.
the netherlands & colombia
InternatIonal research project 201411
Finance for international business
The Dutch government supports internatio-nal expansion of Small and Medium-sized Enterprises (SMEs) through the Finance for International Business (FIB) scheme. This scheme is established for Dutch SMEs that have identified opportunities for their bu-siness in an emerging market like Colombia. These SMEs have the necessary knowledge, vision and ambition to succeed but miss the financial clout. The FIB scheme ensures that part of the investment can be financed by means of a credit facility from the govern-ment, provided that a professional finan-cier comes forward with the remainder of the funding needed for the expansion plans, either by means of a loan or share capital.
• The government provides 35% of the financing required (up to a maximum of 875.000 Euros per company)
• Financing is granted by means of a loan
• A bank or investment company must provide the remaining 65%
• It is a five-year term loan, which must be fully repaid upon maturity
• No repayments are needed during this period
• Interest is payable on a yearly basis• A profit-related remuneration is due
after redemption of the loan
To be eligible a Dutch SME must meet two conditions:
• The business and the project have sufficient potential in terms of profitability and continuity
• The investment needed represents ‘fresh money’ for the company and is used to finance expansion projects in Colombia (i.e. the money cannot be used to pay off existing loans)
financial arrangements
InternatIonal research project 201412
private sector Investment programme
The Private-Sector Investment Programme (PSI), formerly known as PSOM, is a grant programme which supports investment projects in developing countries. The objectives of the PSI are to stimulate financial growth, to create employment opportunities and to generate income. It is designed for companies – both Dutch and non-Dutch – who are to make an innovative investment in one of the PSI countries in cooperation with a local business partner.
In order for a private sector investment proposal to meet its PSI criteria, the following requirements have to be met. In case the criteria are met, the next step is to discuss the project ideas with one of the project officers of Rijksdienst voor Ondernemend Nederland (RVO).
• Your company has a private local partner company that is registered in Colombia
• The investment budget does not exceed € 1.5 million
• The project is a pilot project, and allows for future follow-up investments
InternatIonal research project 201413
• The project is significantly innovative for Colombia, in terms of the product or service type, production method, or the way in which the service is provided
For more information about the PSI programme, visit the IRP website or go to: english.rvo.nl/subsidies-programmes/psi
DhK
Emerging markets offer opportunities for Dutch export and investment due to their rapid development. The Transition Facility allows companies to apply for financial support for demonstration projects, feasibility studies and knowledge acquisition (in Dutch: DHK).
The DHK-subsidy system is aimed at Dutch (SME) companies with international ambitions and with interest in emerging markets, such as the Colombian market. The Ministry of Foreign Affairs finances the DHK-subsidy system, whereas RVO is empowered to implement it. Up to 50% of the project costs will be reimbursed, with a minimum of 10,000 Euros and a maximum of 50,000 Euros per beneficiary.
Applications will be assessed against various criteria, according to the regulations and the counsil framework decision EZ-subsidies.
Feasibility Studies
Your business can receive funding for studies on the technical and commercial feasibility of a project in Colombia, e.g.:• A project design study aimed at convincing
a foreign client to invest in Dutch capital goods and services
• A business plan that can be used to approach lenders and investors for the financing of a project
Knowledge Acquisition
Your business can receive funding for part of the costs when hiring the IRP. We can advise and assist in positioning your business on the Colombian market. The advice and guidance may relate to specific market information, selecting local partners, strategy for market entry, and positioning.
For more information about the DHK-subsidy (in Dutch), visit the IRP website or go to:www.rvo.nl/dhk
InternatIonal research project 201414
transition facility
Transition is about the process of moving forward from one phase to the next. This certainly applies to Colombia, which previously received development aid from the Netherlands and now has been declared as a ‘transition country’.
It has a relatively good investment climate, an adequate economic policy and a developed financial sector. Additionally, the country has a rapidly expanding middle class, a relatively young population and a stable political environment. These are key factors for sustainable local economic growth and enables the relationship between the Netherlands and Colombia to change from a development aid relationship to a situation that is mutually beneficial.
To help the SMEs in creating a healthy trade relationship with countries such as Colombia, RVO offers the Transition facility. The aim of the Transition facility is to encourage the Dutch business sector to provide extra support in transition countries in order to create a promising market in those countries.
The Transition facility is intended for Dutch SMEs and Dutch knowledge institutions. The facility consists of different forms of (financial) support, such as subsidies for:
• Contribution to improvements in the investment climate in Colombia
• Knowledge acquisition used for entering the Colombian market
• Conducting export feasibility studies
• Conducting demonstration projects
The Transition facility focuses on the following main sectors:
• Agriculture (including bio-based economy, climate adaptation and green technology)
• Financial services
• Health care
• Logistics and water management
InternatIonal research project 201415
Whenever it is needed, the facility supports initiatives by eliminating and reducing obstacles organizations might encounter. For example, problems caused by a limited-developed infrastructure, inadequate laws and regulations, or a lack of knowledge in Colombia.
For more information about the Transition facility (in Dutch) visit the IRP website or go to:
www.rvo.nl/transitiefaciliteit
Groeifaciliteit
The Dutch government increases the availability of risk capital in the Netherlands with a special facility called the Groeifaciliteit (“Growthfacility”). The Groeifaciliteit provides a fifty percent guarantee on investments in risk capital. If the investment leads to a loss for the financial institution, the government reimburses fifty percent of that incurred loss. This reduces the risk of the investment substantially, thereby promoting investments in risk capital.
Requirements to use the Groeifaciliteit
A company has to comply with the following criteria in order to be able to obtain the guarantee:
• The company is based in the Netherlands and the business activities predominantly take place in the Netherlands
• Continuity and profitability prospects of the company are satisfactory
• The funding does not replace previously granted credit (fresh money requirement)
• There have been no excess capital withdrawals during the last twelve months
• The investment will be used to finance its own operations or business
If a financial institution wishes to use the Groeifaciliteit, then a request to participate has to be submitted to RVO. More information, like the key requirements for a financial institution to participate can be found at our website.
InternatIonal research project 201416
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= Knowledge The IRP is affiliated to the Vrije Universiteit (VU) and the Universiteit van Amsterdam (UvA) and is being supported by two professors1.
experienceSince its start in 1990, the International Research Project has performed many successful studies in several countries such as China, Brazil and India. For case studies please visit our website.
selectionThe members of the International Research Project are carefully selected out of a large pool of applicants.
non-profit
Our aim is to gain experience, not to earn a profit. You will only pay for the costs made in the preparation phase, the research costs at destination and the costs made during the preparation of the final report.
high research qualityResearch conducted by the IRP will provide valuable insights and recommendations, build upon scientific knowledge. The accumulation of years of experience ensures that the research is conducted in a professional manner. Careful selection ensures that all members of the project are highly qualified, motivated and experienced.
customized research at a cost priceCosts will only vary with the level of complexity and size of the research. All members of the IRP are strongly motivated to ensure all costs are kept to a minimum.
1 The two professors who support the International Research Project are drs. E.F.J. Lancee, lecturer at the Economics and Business Administration faculty of the Vrije Universiteit (VU), and drs. R.E.W. Pruppers, lecturer at the Economics and Business faculity of the Universiteit van Amsterdam (UvA).
our expertise = your advantage
InternatIonal research project 201417
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IndependentSince the International Research Project is conducted by students, and is not affiliated to any (commercial) company, our research is independent.
recruitmentAll of the participants are in the final stage of their study and are ready to enter the labour market.
Innovative and multi-disciplinalThe students participating in the IRP have diverse educational backgrounds and are trained to approach research problems in new and different ways.
objective informationIndependence ensures that the results are objective in nature and that information can easier be retrieved from other companies. Obviously, all findings will be treated confidentially.
potential young professionalsThis project enables your company to get into contact with 18 highly motivated, talented and internationally oriented students.
new and daring perspectivesThe multi-disciplinary background of the participants and our innovative attitude will result in daring new views and recommendations for your company.
our expertise = your advantage
InternatIonal research project 201418
preparation June 2013 – April 2014
Before the actual desk and field research is conducted, the project starts with selecting 12 researchers. They will contribute to the project team and are carefully selected based on their skills, motivation and experience. The researchers are all in the last phase of their study. The board and the researchers will all prepare for the project by enhancing their knowledge regarding the Colombian economy, culture and political structure. In this period, they will visit several guest lectures, seminars and fairs to become experts and gain as much knowledge to make the project a success. All 18 researchers will now start acquiring clients who wish to conduct research in Colombia.
Desk research May 2014 – June 2014
Once both the client and the researchers have an agreement about the purpose of the assignment, a research proposal can be written.
When the proposal has been accepted, the preliminary desk research will start as a preparation for the actual field research in Colombia. This is to to gain a more detailed insight in the target group and sectors that will be investigated.
Field research July 2014
In July, the research team will visit Colombia for four weeks to conduct the field research. Depending on the size and nature of the assignment, three to four researcher will be allocated to each project. During this period, various companies, government agencies and universities will be visited. All necessary information will be gathered during these four weeks in Colombia.
presenting results September – October 2014
In the final phase of the research project the findings and recommendations will be presented to the clients in detailed reports, supported by presentations.
Preparation Desk research Field researchPresenting
results
june 2013 - april 2014
july 2014may 2014 - june 2014
september 2014 - october
2014
research method
InternatIonal research project 201419
Our main expertise is deploying customized research by matching your specific needs and requests as a client. Please note that each of the following researches can be extended or adjusted to fit the needs and wishes of your company.• Market research• Sector analysis• Competition analysis• Feasibility study• Consumer behaviour• Outsourcing opportunities• Investment opportunities• Logistics and distribution analysis
“The IRP research gave us some additional insights, so we were better able to determine how and where we could expand our business in China”.Kees schepers, managing Director Vitablend (Irp china 2012)
“I was extremely satisfied about the collaboration with the MAA International Research Project“philips International (Irp India 2010)
research possibilities
InternatIonal research project 201420
• For more information about case studies please visit our website at www.irp-maa.nl
former clients
InternatIonal research project 201421
prof. dr. D.c. van den boom
Rector magnificus and member of the
Executive Board of the UvA/HvA
j. bestebreurtje
Chairman of the Netherlands-Latin
American Business Council (NLABC)
b. houdijk
CEO of Houdijk Holland
drs. l.t.c. Fillipini
Founder of the Marketing Associatie
Amsterdam 1991-1992, owner of
Tele’train BV
prof. dr. F.a. van der Duyn schouten
Rector magnificus of the Vrije Universiteit
r. van embden
Ambassador of the Netherlands to Colombia
drs. b.j. Koopman
Managing Director at Fenedex
e.e. van der laan, ll.m
Mayor of the city of Amsterdam
drs. r. Zijlstra
Group Head Balance Sheet Management (ALM)
board of recommendations
InternatIonal research project 201422
the Irp board of 2013-2014 consists of (first stairs from left to right, then below):
Chairwoman Marlieke van der Linden
Marketing Marieke van Heijst
External Affairs Minke Kiers
Secretary Annick Versluis
External Affairs Mark Bottinga
Treasurer Bart Grouls
• If you are interested, we would like to make an appointment to discuss the research possibilities for your company. Do not hesitate to contact us if you have any questions.
•• external affairs• • Mark Bottinga• E: [email protected]• T: +31 (0)6 46 03 32 44•• Minke Kiers• E: [email protected]• T: +31 (0)6 31 67 42 72•• address• • MAA International Research • Project Colombia• Roetersstraat 11 - Room E2.06• 1018 WB Amsterdam• • W: www.irp-maa.nl
contact
www.irp-maa.nl