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Szombathely ReStart Program
Published on 30 June 2020
Hungary
Nyugat-Dunántúl
This is the good practice's implementation level. It can be national, regional or local.
About this good practice
Problem addressed:
Covid-19 – multinational companies reducing production or even closing down, service sector partially closed, but damaged by large employer shutdown.
How objectives are reached:
Key focus areas were defined by the municipality together with large employers and representatives of local businesses.
Definition of these key intervention areas:
1. Social assistance benefits – financial subsidy for the dismissed labor force due to Covid, suspension of the collection of rental and public utility debts during the pandemic situation
2. Three pillars of ReStart Program - Buy Local, Be Online, Spend Wisely
a. Buy Local – market voucher program, support and promotion of local supplier relationships, utilization of local producers for the public sector, promotional gifts with ReStart visuals
b. Be Online – financial support for SMEs to go online - webpage, webshop, social media representation, online invoicing software
c. Spend Wisely – rent allowance for SMEs, public space usage fee discount for SMEs, discounted advertising in the municipal media for SMEs. Targeted for companies with employee protection.
The main stakeholders are:
City of Szombathely, Chamber of Commerce and Industry of Vas County, Centre of Enterprises, representatives of multinationals, Szombathely Market Hall, municipal institutions, business entities and public utility companies, local universities
Covid-19 – multinational companies reducing production or even closing down, service sector partially closed, but damaged by large employer shutdown.
How objectives are reached:
Key focus areas were defined by the municipality together with large employers and representatives of local businesses.
Definition of these key intervention areas:
1. Social assistance benefits – financial subsidy for the dismissed labor force due to Covid, suspension of the collection of rental and public utility debts during the pandemic situation
2. Three pillars of ReStart Program - Buy Local, Be Online, Spend Wisely
a. Buy Local – market voucher program, support and promotion of local supplier relationships, utilization of local producers for the public sector, promotional gifts with ReStart visuals
b. Be Online – financial support for SMEs to go online - webpage, webshop, social media representation, online invoicing software
c. Spend Wisely – rent allowance for SMEs, public space usage fee discount for SMEs, discounted advertising in the municipal media for SMEs. Targeted for companies with employee protection.
The main stakeholders are:
City of Szombathely, Chamber of Commerce and Industry of Vas County, Centre of Enterprises, representatives of multinationals, Szombathely Market Hall, municipal institutions, business entities and public utility companies, local universities
Expert opinion
The Szombathely ReStart Program constitutes an interesting example how regional stakeholders can joint efforts to react rapidly to a crisis like the Covid-19 pandemic and implement measures aiming at mitigating its economic consequences.
It demonstrates the capacity of local actors to act fast and flexibly in comparison to large national schemes, which – although more significant in terms of amounts - take time to be implemented. A fast reaction is very important to address the needs of small and very small businesses not having the financial resources to bypass longer periods of reduced income.
The programme also points at areas of transformation, e.g. online sales, with the potential to generate long-term improvements of the local economy.
It demonstrates the capacity of local actors to act fast and flexibly in comparison to large national schemes, which – although more significant in terms of amounts - take time to be implemented. A fast reaction is very important to address the needs of small and very small businesses not having the financial resources to bypass longer periods of reduced income.
The programme also points at areas of transformation, e.g. online sales, with the potential to generate long-term improvements of the local economy.
Works at
Interreg Europe Policy Learning Platform
Resources needed
For the social benefits 1.4 mio euro social fund dedicated to specific actions and 0,5 mio euro dedicated to entrepreneurial actions.
Evidence of success
50% of the allocated budget spent for the social actions, 40% for entrepreneurial activities. Events have been organized dedicated to the action plans.
Concrete measures:
• 3.213 people have requested the financial subsidy for dismissed labor force due to Covid-19 (300 euro/person), one third of them have already got it at current processing
• 558 people got the market voucher (in value of 100 euro/person)
• 44 SMEs got rent allowance
• 16 SMEs got public space usage fee discount
Concrete measures:
• 3.213 people have requested the financial subsidy for dismissed labor force due to Covid-19 (300 euro/person), one third of them have already got it at current processing
• 558 people got the market voucher (in value of 100 euro/person)
• 44 SMEs got rent allowance
• 16 SMEs got public space usage fee discount
Potential for learning or transfer
- how to manage social demands and support for the entire ecosystem from a relatively limited funding pool
- how municipality could play a coordinative role between SMEs, multinational companies, local institutions etc. and exploit this opportunity for mutual trust building
- how to target multiple actors at the same time with one form of support (f.e. the market voucher program means a social support for our citizens who get the voucher and also a financial support for the local producers where the citizens spend their vouchers)
- how municipality could play a coordinative role between SMEs, multinational companies, local institutions etc. and exploit this opportunity for mutual trust building
- how to target multiple actors at the same time with one form of support (f.e. the market voucher program means a social support for our citizens who get the voucher and also a financial support for the local producers where the citizens spend their vouchers)
Further information
Website
Good practice owner
You can contact the good practice owner below for more detailed information.
Organisation
Szombathely City with County Rights
Hungary
Nyugat-Dunántúl
Contact
project manager