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УДК 332.14
Zlateva R. St. Assoc. Prof. PhD Konstantin Preslavsky University of Shumen Republic of Bulgaria SWOT ANALYSIS OF THE TERRITORY OF LOCAL INITIATIVE GROUP (AS PER THE EXAMPLE OF A NON-PROFIT ASSOCIATION
„MIG ZAVET - KUBRAT")
We do not help people to develop by telling them only the things they want to hear.
Loran Guel
Abstract: The article examines the performance of a SWOT analysis in the territory of the local initiative group - a public-private partnership aimed to develop, ensure capacity and implement the Strategy for Community-led local development of a certain territory. Special attention is paid to the resources and efficiency of the method in its application for the analysis of the territory of the NGO „ MIG Zavet - Kubrat".
Keywords: The local initiative group; territory; Strategy for community-led local development; SWOT analysis.
The local initiative group is a public-private partnership formed and registered under the Law for non-profit legal entities, established for public benefit activity with the aim to develop, provide capacity and implement the Strategy for Community-led local development of a specific territory and in which partnership the share of the public sector representatives, the business sector representatives and the non-profit sector representatives in the collective management body and the collective supreme body does not exceed 49%. The name of the legal entity should contain the denotation „Local Initiative Group" or the abbreviation „LIG". The strategy for community-led local development is a series of closely related activities aiming to satisfy local needs and necessities, containing certain elements mentioned in Art. 33, paragraph 1 of Regulation № 1303/2013. Each local initiative group operates on a territorial principle at municipality level or a group of neighboring municipalities and / or neighboring populated areas - part of municipality / ies which are strictly defined as eligible under the following conditions: 1. the territory is with uninterrupted borders; 2. the population of the territory is from 10 000 to 150 000 inhabitants, according to data provided by the National Statistical Institute at December 31, 2014; 3. the territory mentioned in point 1 includes territory from rural area specifically defined as eligible [1].
This SWOT (acronym of internal strenghts and weaknesses, and external opportunities and threats) analys has been developed for the purpose of the strategic planning for the territory of NGO „MIG Zavet - Kubrat". It needs to be
emphasized that the SWOT-analysis is a specific creative activity. What for one expert is an opportunity, for another one it can be a threat. In addition to this, the dynamics of the environment is very strong and very quickly opportunities or threats may occur which requires its update within a certain time.
As a result of the SWOT-analysis, four scenarios are being examined as possible. The first step made when conducting the present SWOT-analysis is examination of the territory's „strong" and „weak" sides. Then, we have proceeded towards division of the terriroty elements to „opportunities" and „threats".
Opportunities
II quadrant
Weaknesses
III quadrant
I quadrant
Strengths
IV quadrant
Threats
Figure 1. SWOT analysis
The strengths are shown as a resource, skill or other advantage which the territory possesses in comparison with others. The strength is seen as a distinctive quality that gives a comparative advantage. Some seemingly negative elements could turn out as a strength for the territory. Restrictions or the lack of resources, skills and abilities that seriously hinder the development of the territory are presented as weaknesses. They characterize its deficiency compared to other areas. A weakness example could be the lack of capacity of most of the staff. The present SWOT-analysis presents the most favorable elements of the external environment as opportunities. Their definition is based on the rule that the opportunities are the unused to the full resources of the environment. Otherwise, they are related to the strengths or weaknesses. The most unfavourable environment segments are defined as threats. They put the greatest barriers to current or future (desired) state of the territory. In general, threats are seen as elements of the environment which can not be influenced directly. These may be the legislative framework elements of centralization of certain services and others. In carrying out this SWOT-analysis many strengths, weaknesses, opportunities and threats are being revealed. However, only the top 10 of these have been selected and placed in the respective cells of the matrix.
There are certain dependencies between the four squares of the SWOT-analysis. The relationship between the opportunities and strengths gives an idea of
the development levarage. This is considered as a critical dependence that should be used in the construction of the strategy of NGO „MIG Zavet - Kubrat" On this basis, it should be decided which opportunities can be used, so that they develop new strengths of the territory. The main issues for the development of the territory are formed through the link between weaknesses and threats. The relationship between strengths and threats determines the development risks while the relationship between weaknesses and opportunities displays the restrictions on the development of the territory.
After the implementation of quantitative and qualitative analysis within the territory of NGO „MIG Zavet - Kubrat" the content according to the quadrants of the figure above was compiled. The next step of the SWOT-analysis is to quantify the key factors presented in the scheme. For this purpose, the method of the rating set by an expert for each item has been used (On a scale of 1 - 10 with 10 being the highest score). The rule that the higher the factor assessment is, the stronger its influence is is being followed. After the summation of the rating for strengths and weaknesses, opportunities and threats, their average rating is being calculated. It is obtained as the sum of each group gets divided by the number of factors in each group. The estimated grades are entered on the x-axis and y-axis in the coordinate system. Afterwards, a positioning of the area is carried out in accordence with the quadrant in which it occupies the largest area.
OPPORTUNITES
WEAKNE SESSES
Diversification strategy Aggressive strategy
Defensive strategy Turnaround strategy
STRENGTHS
THREATS
Figure 2. Strategic positions and development strategies
There are four possible different positions which can identify four strategies for development of the territory. The most favorable strategic position is in the first quadrant and with it it is recommended that an aggressive strategy is undertook. The second quadrant is formed by the position between weaknesses and opportunities. The development strategy, which this quadrant defines, may be called diversification strategy, because it is directed to the use of existing
favorable conditions for development and reducing weaknesses. The defensive strategy which is the most unfavorable one is positioned in the third quadrant. This strategy is locked between the weaknesses and threats. Following exposure to this position, one should seek an opportunity for survival and then try to switch to one of the other quadrants. The turnaround strategy is in the fourth quadrant. Its position is between strengths and threats. The main direction of the strategic development is aimed towards the recovery of weaknesses and reduction or limitation of the threats as much as possible at the same time.
SWOT-analysis: the analytical conclusions from the information on the current status and potential of the territory are specified and the results are limited to those shown in Table 1.
Table 1.
SWOT-analysis of the territory of NGO „MIG Zavet - Kubrat"
STRENGTHS Rating (from 1 to 10) WEAKNESSES Rating (from 1 to 10)
1. Preserved natural environment and wealth of natural resources -forests, flora, fauna, natural monuments and protected areas. 8 Lack of organized access to natural landmarks, overlooked opportunities for development of alternative types of tourism. Lack of identification of tourism resources which defines them as such, based on classification indications. 5
2. Production experience and traditions in logging and wood processing, agriculture, engineering and pharmaceutical industry 10 Low competitiveness and degree of modernization of the local economy, lagging behind in technological development and competitiveness of the production sphere. 10
3. Rich cultural calendar with a strong local identity - traditional events and local festivals of the local community, existence of library building fund for the realization of cultural activities in every populated area in the territory. 8 Depreciated library building fund in the settlements in the territory and limited opportunities for cultural and social activities. 3
4. Preserved traditional agricultural practices such as growing fruit trees, vegetables and livestock. Availability of large areas of agricultural land suitable for organic farming. 9 Presence of many farmers growing crops only for subsistence.Outdated technology in the agricultural farmings and difficult cultivation of crop areas leading to growing limited number of crops. 9
5. Availability of demographic potential in the administrative 6 Risk of depopulation of large parts of the territory due to 4
centers - the towns Zavet and Kubrat as well as availability of labor and workforce, relatively cheap labor.
migration, negative natural and mechanical growth, shortage of skilled manpower, high unemployment rate and low incomes. Presence of vulnerable and minority groups in social exclusion.
6. Reformed and restructured industries and service activities of the tertiary sector (education, health, social affairs, culture).
Educational, health and social infrastructure concentrated in municipal centers.Low provision of the population with medical personnel._
7. Built, reconstructed and rehabilitated infrastructure
funded by European projects in part of the territory.
Infrastructure deficits - poor condition of the road network, lack of canalization in almost all settlements in the territory, built treatment facilities only in the Kubrat town.
8. Availability of free building fund and terrain in the area suitable for investment in productions._
Lack of ideas and funds for alternative usage of available infrastructure.
9. Built new multifunctional sports facilities with public investment.
Low involvement of the private sector in most of the service activities of the tertiary sector (education, sports and recreation, culture)._
10. A clear vision, desire and motivation for transformation of the territory of the "Zavet Kubrat" - "Together we are stronger" and its transformation into a socio-economically developed center, providing the local community with security, better living environment and welfare. Increased local initiative and development opportunities locally._
10
A small number of local specialists to work on projects with active attitude towards the problems of the territory, limited financial resources.
75/10=7,5
55/10=5,5
OPPORTUNITIES
THREATS
1. Sustainable use of natural resources - forests, flora, fauna, natural monuments and protected areas (herbs, fruits, mushrooms, trees, game, etc.)._
10
Violation of biodiversity. Worsening of the environment and disruption of the natural landscape.
2. Organized farmers in international
participation of national and exhibitions.
10
Insufficient use of standards for quality and poor advertising.
5
6
7
7
4
6
8
3
2
5
7
Creation and establishment of emblematic in national aspect local product, development of organic farming.
3. Enrichment and development of cultural events by revival local art forms - folklore, gastronomy. Development of local production of goods and souvenirs. 7 Loss of cultural identity, affects lifestyle and cultural values of the local population. 3
4. Access to investments in new technologies for the development of modern agriculture, forestry, certifications of agricultural and forestry products. 10 Ignorance of the advantages of establishment of organizations of farmers as a key element of the sustainable development of the territory. Lack of investments in technological equipment. 5
5. Reduction of unemployment rate and enhancement of welfare of the local population. 8 Poor educational structure of the population leading to inability for implementation of an economy based on knowledge. Low competitiveness of the workforce.Increase in the level of aid-dependent population. 6
6. Social inclusion of vulnerable groups in the planning and development of social services. Improvement of the Health facilities. 8 Living in isolated communities, persistent lack of income antisocial acts. Low quality of health care services leading to lower health status of the population. Unbalanced healthservice - a prerequisite for high social morbidity. 7
7. Creation and reconstruction of existing infrastructure. Updating the building fund and green areas of settlements. 7 Lack of investments for improvement of infrastructure. Economic inefficiency in the implementation of infrastructure projects in small settlements with decreasing population. 6
8. Attraction of investments. 6 Low entrepreneurial culture due to inadequate skills and general entrepreneurial environment within the territory. Lack of investments in the local economy. 4
9. Encouraging the development of sports. 7 Lack of ability to rationalize the free time of children and young people - sports, recreation, etc .. 3
10. Establishment of a connection between education and the needs of the labor market in the territory. Modernization of vocational education in according 7 Lack of strategic vision for the role of education.Lack of connection between the profile of vocational education and needs of the labor market. Lack of 2
with the main directions for development of the territory. Realization of measures for continuing vocational training and requalification. expertise.
80/10=8 48/10=4,8
The results of the SWOT-analysis indicate that the territory of the NGO „MIG Zavet - Kubrat" based on the expert assessment is positioned mainly in quadrant I, which requires priority implementation of an aggressive development strategy while efforts can be focused on using existing favorable conditions for the development and reduction of the weaknesses of the territory.
- The proposed „aggressive strategy" may be directed to:
- Undertaking of proactive steps in preparation for entering new markets for the territory - attractive field for new investments based on comparative advantages, marketing advertising, informed and motivated local business, consolidation of efforts, introduction of Standards and Technology suggesting competitiveness.
- Betting on the sectors for growth and support by all means acceptable for the citizens of the territory and supported by them;
- Strengthening the capacity of NGO „MIG Zavet - Kubrat" for impact on the overall development of the territory (resources, administration, partnerships, information);
- Preparation for maximum utilization of funds from the RDP through the method „Community-led local development", creating a „bank of local strategic projects".
The implementation of such a strategy suggests creation of a vital socioeconomic complex and sufficient funds for investment in people, business and living environment.
Obvious is the high level of opportunities for sustainable use of natural resources, for unification of the farmers with the aim to create and enforce domestic product, for investments in new technologies for the development of modern agriculture, forestry, certifications for agricultural and forest products, and high grades of existing threats. Actions are required for the use of the opportunities and elimination of the threats for future periods, which appears as a priority mission of the NGO „MIG Zavet - Kubrat" with the aim not to allow negative influences on the development of the territory.
As a result of the SWOT-analysis the following conclusions could be drawn:
- Using the strengths and opportunities of the territory, the Strategy and measures of the NGO "MIG Zavet - Kubrat" should lead to a higher share of the chart in the I quadrant.
- The distance between the strengths and weaknesses shows that the achieval of the necessary results will require a period of time and adequate actions.
- The level of threats is relatively high which means that there is a particular risk in the implementation of the strategic goals.
- Based on the carried out SWOT-analysis two basic approaches which can be used for the future development of the territory could be drawn:
- Resource approach built mainly on the use of existing natural resources and development of productions with a higher degree of processing of raw materials in industry and agriculture.
- Investment approach in which stakeholders (representatives of the public, business and non-profit sector) play an essential role in the supply, development and realization of implementation of strategically important local investment projects in the territory of the NGO „MIG Zavet - Kubrat".
The performed SWOT-analysis allows the conclusion that the territory of the NGO „MIG Zavet - Kubrat" has a significant potential for future development in the direction of strengthening the territory by transforming the „covenant of Kubrat" - „Together we are stronger" and its transformation into socio-economically developed center providing the community with safety, better living environment and welfare.
References:
1.Наредба № 16 от 30 юли 2015 г. за прилагане на подмярка 19.1 ,Домощ за подготвителни дейности" на мярка 19 „Водено от общностите местно развитие" от Програмата за развитие на селските райони за периода 2014 -2020 г. [Electronic resource] - Access regime - // URL: http://www.mzh.government.bg/MZH/Libraries/%D0%9D%D0%BE%D1%80%D 0%BC%D0%B0%D 1 %82%D0%B8%D0%B2%D0%BD%D0%B0_%D 1 %83%D 1%80%D0%B5%D0%B4%D0%B1%D0%B0_%D0%9F%D0%A0%D0%A1%D 0%A0/%D0%9D%D0%90%D0%A0%D0%95%D0%94%D0%91%D0%90_%E2 %84%96_16-%D0%9C19_1.sflb.ashx (Retrieved 10.01.2017).
УДК 338.48
Zlateva R. St.
Assoc. Prof. PhD Konstantin Preslavsky University of Shumen Republic of Bulgaria TOURISM DEVELOPMENT AND THE ACTIVITY
OF ACCOMMODATION FACILITIES IN THE TERRITORY OF
IVANOVO MUNICIPALITY Abstract: The article examines the unity between the presence of an adequate infrastructure and the promotion of cultural-historical and natural resources as a condition and factor for unleashing the potential of tourism in the Ivanovo Municipality. The aim of the study is to highlight the relationship between the activity of accommodation facilities and tourism development in the territory.
