ESA Business Incubators – Tallinn Creative Incubator

Anu LõhmusBoard member

Tallinn Creative IncubatorBusiness Support and Credit Management Foundation (ESA)

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ESA Concept and Main Objectives

• Business Support and Credit Management Foundation (Estonian acronym ESA) helps to grow new businesses in Tallinn area

• Founded by Tallinn City Council on 18 May 2006 (initially Foundation Tallinn Business Incubators); continuation of Tallinn City Enterprise Board project started in 2002

• ESA’s mission is to increase the competitiveness of young enterprises and minimize their start-up risks. To achieve this goal, we offer:

- wide range of consulting, training and soft-landing services

- quality working environment for every new business

- access to different financing sources and start-up networks in Estonia and abroad

- proven track record of incubating companies successfully for the last 6 years

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Foundation Funding

• Three business incubators in Tallinn:

- Two general incubators (Kopli Business Incubator, Ülemiste Business Incubator)

- Creative Incubator

• Financing:

- Main financier: municipality (City of Tallinn)

- EU/EAS projects (currently ca 52%)

- Self-income ca 10% of total budget

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Incubation Statistics (Aug 2006-Feb 2010)

• 230 applications for incubation services

• 127 companies have participated in the the pre-incubation training (business and entrepreneurship 101)

• 73 companies have defended their business plans

• 56 companies have been incubated, 31 of them have received various entrepreneurship support grants of EEK 2,1 mln (over EUR 135 000) in total

• Currently 46 companies in incubation (20 in Creative Incubator)

• 2 new pre-incubation groups (70 entrepreneurs) started in March

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Incubator Companies’ Statistics

• 2006-2009 total turnover for incubator companies ca EEK 140 mln (EUR 8.95 mln), incl. export ca EEK 29 mln (EUR 1.85 mln)

• Exporters 17, export turnover ca 20% of total turnover

• Jobs created: 2005 – 8; 2006 – 23; 2007 – 99; 2008 – 111; 2009 – 55

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Tallinn Creative Incubator

• Opened in September 2009 in the Baltika Quarter, the former administrative building of Baltika Group, the main Estonian garment manufacturer

• Total area 1100 m2, 23 studios and office spaces of 10-60 m2

• 45-50 workplaces

• Currently operates with 0% vacancy rate

• Main partners: Estonian Design Centre, Estonian Academy of Arts, Baltika Group, Interior Designers' Union of Estonia, etc.

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Support System: Strengths and Weaknesses

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• Entrepreneurship theory and practice hand in hand

• Access to quality business environment and support services

• Security: constant monitoring and mentoring

• Synergy derived from in-house connections (raising own business by being each others’ customers)

• Joint marketing opportunities, networking events, positive scale effect, etc.

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• “Learned helplessness” in the “real business world” as a possible drawback

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Success Story: Harriet’s Studio

• Started in 2005 with pregnancy photographies

• Constant development of service portfolio: business sessions (product photographies, portraits), wedding photographies, studio sessions, etc.

• Studio in Baltika Quarter, end of incubation period in 2010

• Turnover 2006: EEK 350 246

2008: EEK 1 354 269

• High customer loyalty, place convenience (provides services for Baltika Fashion Industry and Creative Incubator designers), outstanding quality and artistic value, …

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Thank you!

Anu Lõhmus

Member of the Board

Tallinn Creative Incubator, Business Support and Credit Management Foundation (ESA)

Mob +372 5646 5868

anu@esa.ee / www.esa.ee

Skype: anu.lohmus1