The measure serves to support young founders of a new business. The location of businessmen has positive effects on the environment. Jobs close to the place of residence are supposed to contribute to social stabilisation and to an improved urban district economy.

The neighbourhood “Boxhagener Platz” in Berlin, which has an area of about 75 ha, since the nineties has been passing through restructuring processes caused by a loss of industrial jobs, vacancies of a large number of industrial buildings and the migration of families and employed persons. Following integration into the “Social City” programme in 1999, the neighbourhood was enhanced based on an integrated concept for action and by involving the population, i.e. the local “community” of founders of a new business was supported by providing them with low-priced industrial premises. These premises are located in the former administrative building “Gründerbox M25” and consist of 34 commercial units of 12.5 to 48 sqm.

The project was initiated under the „Social City“ programme. The industrial premises are let for a price of 3.50 euros/sqm per month (including additional costs). Tenants should have been self-employed for three years maximum before and must conduct a “quiet” trade. Central infrastructure such as sanitary arrangements or modern telecommunication is to the same degree available to all tenants. After twelve months, the granting of a housing allowance of 3.50 euros/sqm provided by the “Social City” programme, stops. The founders of a new business are assisted and advised by a consultant and by a representative of a local business development institution.

There was a high demand for the project especially from the part of new media and design. As a consequence, another project called “S23” was offered after a short while in addition to “Gründerbox M 25”. Just under 70 companies with 150 employees have established which has enhanced the neighbourhood’s image. Furthermore, the property, which was difficult to rent, can be maintained with regard to its value.

The measure first of all addresses young founders of a new business. However, the neighbourhood residents also benefit from positive effects (image improvement, social stabilisation).

The measure was carried out under the “Social City” programme subsidised by the Federation and the Länder.

Internationales Handelszentrum GmbH
Germany
http://www.ihz.de
Andrea Jakob, tel. +49 (0)30/29355431

01/06/2003

case

Urban Policy > Economy knowledge & employment > Urban economy

Business support