The benefit of having a local development agency

The Croatian town of Novska has become synonymous with video games in a few short years, but as the Economic.bg reporter team criss-crossed it to uncover this bold transformation, we asked ourselves: “What about the people who don’t see themselves working in gaming? Wouldn’t they be left behind?”

It turned out that parallel with the work done for the development of the PISMO incubator for video game studios, there was ongoing work on the part of the municipality to create a local development agency that would fight for the business interests of the community by convincing external investors to consider setting up shop in Novska and by giving local entrepreneurs invaluable support in their dealing with the EU maze so that they, too, would stay in town.

Called NORA, Novska’s development agency was founded in 2018 and in a few short years it has been at the help of implementing impactful changes in the city’s socio-economic fabric.

“In addition to the writing of projects and leading training sessions, the development agency provides support and advice in the preparation of education, but it is also there for everything that actually means ‘city development’. There is also the writing of strategies and programs for future projects, the organization of various events, whether it is business events, cultural programs and parades,” Marija Kušmiš, the Mayor of Novska, lists the wide range of activities that go on behind the unassuming façade of the development agency.

Dual mission

Given that NORA has quite a lot on its plate both in terms of presenting an environment that would be appealing to external investors and fostering local entrepreneurship, it would come as a surprise that it was initially staffed with only 2-3 people. It quickly became clear, however, that a larger staff would be needed and currently, there is a dedicated team of 12 professionals dealing with a broad range of responsibilities.

The agency began with modest projects, many valued at just a few thousand euros. Over time, as expertise and confidence grew, it expanded to handle multimillion-euro initiatives. One of NORA’s unique strengths lies in its adaptability and commitment to inclusivity. During periods without funding opportunities for entrepreneurs, the agency turned its attention to strengthening civil society organizations, providing them with resources to grow independently of the city budget.

These efforts have brought new life to previously neglected spaces in rural areas. For instance, by utilizing small projects funded by the European Social Fund, NORA has repurposed abandoned public buildings, creating hubs of activity for the community. A notable example is the development of a modern studio space for young people, equipped for podcasting, music production, and video creation. This initiative has strengthened collaborations with schools and civil organizations, fostering a culture of creativity and innovation.

Another example of a standout project is the establishment of a social enterprise centered around wood reuse, located in a community center that had been underutilized. By renovating the space and equipping it for a new purpose, the initiative not only created jobs but also contributed to sustainability and skill development.

Autonomy and comprehensive approach

Although the NORA development agency works as part of the municipal administration, it physically exists in a separate location, with its own expert staff and the autonomy to deal with business development – an area in which public administrations are traditionally not considered competent. These days, however, development experts, who are also civil servants, can also be the necessary link advocating for a region in front of EU authorities and foreign investors while at the same time helping small entrepreneurs navigate the EU bureaucratic maze successfully.

And the results are already here. Since the establishment of NORA, the development agency has supported the creation of approximately 150 new startups across various sectors. These businesses are not only operational but thriving, employing more people (200 new jobs since the start of NORA) and contributing to the local economy.

NORA’s efforts extend to equipping entrepreneurs with the skills and knowledge needed for sustainable growth. Through tailored programs, developed by analyzing entrepreneurs' needs, NORA ensures business owners are empowered to succeed. These programs, often executed via EU Cohesion Policy funded projects such as "NORA for Enterprising Novska," seek to boost the competitiveness of small companies.

The modern approach of NORA as a development agency is its understanding of the importance of marketing for promoting one’s products, services and even existence in the wider market, which these days goes far beyond the local or regional scope. That’s why NORA has its Marketing and Branding Department staffed with experts who can advise, consult and support entrepreneurs in promotional strategies suitable for their businesses. They even help out with the creation of things like logos.

Another expert line is financing, which is a constant issue for startups regardless of their business. While initial grants from the city or national bodies like the Croatian Employment Service can provide a critical lifeline, scaling up often requires accessing EU funds. The lengthy administrative processes and waiting times associated with these funds, however, can pose significant challenges for entrepreneurs.

This is where NORA once again provides crucial assistance not only with making sense of EU funding application requirements, but it also suggests alternative forms of financing, such as loans or other sources.

The Future of NORA and Novska

NORA has ambitious plans for continued growth and innovation. Over the next five years, the agency aims to expand both its team and its range of services to meet the increasing demands of its users. Mayor Kušmiš emphasized the importance of investing in human capacity as a cornerstone of NORA’s development, ensuring that the agency remains a leader in fostering Novska's progress.

A more concrete example of this would be a new program, which will provide specialized support for young entrepreneurs under 30 and women in business. It will be available in the period 2025 – 2029. By increasing financial grants and adapting their programs to meet evolving needs, NORA seeks to create more jobs and drive economic growth across all industries.

Seeing the work done by NORA across the town of Novska was a poignant reminder that expert support can be a necessity in struggling communities. As modern digital industries emerge public bodies such as this one truly can ensure that development reaches every corner of local societies in a way that no one gets left behind in the green economic transition.

Co-Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union. The European Union cannot be held responsible for them.