PRIORITY 2

PRIORITY 2: BUSINESS DEVELOPMENT AND COMPETITIVENESS

Priority 2 relates primarily to businesses.

Rationale

The Objective 2 areas present clear sign of low economic activity and social exclusion. There are clear barriers to economic opportunity in these areas which suffer from industrial decline.

Aims

Priority 2 aims to encourage enterprise and innovation in order to create a range of sustainable, good quality employment opportunities which meet the needs and aspirations of local people.

The key goals of Priority 2 are:

• to enhance business performance in the Objective 2 area;
• to create employment opportunities; and
• to build a robust business base that ensures environmental good practice.

Activities

Priority 2 supports projects for the expansion of established and growing sectors. These projects should ensure that the needs of employers are met whilst also creating new sustainable employment opportunities for local residents.

Priority 2 also assists businesses in adopting and exploiting technological advances. This is done by advising and facilitating the adoption of new technology, ICT and e-business.

Last, Priority 2 helps SMEs to adapt and to take advantage of new opportunities associated with environmentally-friendly technologies and processes.

Key sectors

Priority 2 target business sectors which the London Development Agency (LDA) has identified as priorities for economic development within the capital. These sectors are:

• the creative and cultural industries;
• manufacturing and design;
• Information and Community Technology (ICT);
• the green economy;
• the social economy; and
• biotechnology.

Measures

Priority 2 includes seven measures.

Six measures are funded under the European Regional Development Fund (ERDF):

• Measure 2.1: Advice and Mentoring for SME start-ups;
• Measure 2.2: SME Business Development Programmes;
• Measure 2.3: Funding for Growth;
• Measure 2.4: Adopting New Technology, E-Commerce and ICT;
• Measure 2.5: Product, Process and Technology Innovation;
• Measure 2.6: Environmental Technology.

One Measure is funded under the European Social Fund (ESF):

• Measure 2.7: Developing a Competitive Workforce.