The Administration contribute an amount of money in bonds into circulation to try to reactivate the economy in a city, helping local companies and citizens.
The bonus are those with which customers obtain an extra discount for free, specifically, in our case, 20% of the amount of the bonus they buy.
This initiative works through a website (https://deteruelparateruel.com/) where consumers choose a local business and then they buy a voucher with a 20% discount. This extra discount is covered by the Administration.
For example, a customer pays 40€ and gets a 50€ voucher.
Bonus are aimed at all people who want to support the local trade and professional services in their city and this also means a small financial aid to maintain their purchasing power.
The local Government has injected 100.000€ in local economy (enterprises of our territory):
-20.000€ by Local Government
-80.000€ by consumers
>Actors involved:
-Administration (Bonus issuer).
-Chamber of Commerce (manager).
-Trade and business Associations (collaborator and adviser).
-Citizens (economically beneficiary)
-Local business (they are promoted)
Resources needed
An injection of funds by Administrations and/or any Entities to start the launch.
-The Local Government in Teruel (Spain) has injected 20.000€.
-A technical advisor & management (Chamber of Commerce, Trade and Business Associations).
-Computer Technical support – Digital platform
Evidence of success
-Buying this bonus customers obtain an extra discount for free, specifically in our case, 20% of the amount of the bonus they buy. For example, a customer pays 40€ and gets a 50€ voucher.
-The final injection of liquidity in local economy is a minimum of 100.000€ (and we are realising that it will be more than double).
-We have already implemented it in five different municipalities of our Province.
Difficulties encountered
-Awareness of local consumption importance by the population and Entities involved that work for SMEs competitiveness survival after COVID-19 pandemic.
-Coordination of several Entities.
Potential for learning or transfer
Local business support as a solution to reactivate the local economy after COVID-19 pandemic.
>Key success factors:
-Agreement to work together (Local Government with local Entities)
-Collaboration and involvement of Business Associations
-Digital platform simple and intuitive
>Negative aspects:
-Bureaucratic procedure
-Excution period due to Administration process
-Limited digitalization knowledge of retail sector
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Tags: Cooperation, Circular economy, COVID-19, Local, SME
