Social challenge and reasons for project’s initiation

Immediacy of the social problem

Backbone enterprises in Russian monotowns are going through a hard crisis: markets for their products are declining,  it is becoming more and more difficult to service their foreign currency debts. All this results in production cutback and mass layoffs, – registered unemployment in monotowns has been growing rapidly each year. Providing additional employment and development of self-employment is one of the priority tasks in monotowns.

External reasons for project’s initiation

“Atomredmetzoloto” LLC (ARMZ) – is the managing company of the Mining Division of State Corporation “Rosatom”. ARMZ develops the assets of uranium mining at the territory of Russia. Infrastructure investments are a very important aspect of ARMZ social responsibility. Due to the fact that the Holding’s enterprises are located in various regions of the Russian Federation, ARMZ takes into account all possible social – economic impacts of the decisions taken and is in close cooperation with its stakeholders in regions.

Krasnokamensk is the second largest populated town in Zabaikalye Territory (55 000 people). It is monotown of the 1^st category.

Demand and prices on the world uranium have significantly dropped after Fukushima nuclear disaster in 2011. Because of that, the company had to cutback its uranium production since 2013 and develop a break-even program. One of the program’s component is headcount  optimization. In a monotown, where the majority of its population works in the uranium production company, headcount reduction can significantly send down the standards of living of its citizens and shatter the economic resilience of the town. Therefore, there is a great need to provide conditions for social adaptation of the population, create favorable environment for the development of social entrepreneurship, develop programs to provide additional employment, encourage self-employment.

Internal reasons for project’s initiation

While in need to implement its break-even program and optimize personnel, the company has proved responsible and took a decision to launch a program on developing self-employment for the population of Krasnokamensk. 

At the very beginning of the project’s implementation the emphasis was made on using the mechanism of a grant contest, which is a tool of the general strategy of the social responsibility and sustainable development of “Atomredmetzoloto” LLC. It is aimed at supporting and developing non-profits and public initiatives, based of the principles of transparency, simplicity, partnership and efficiency.

Following the Policy of Participation in Social Development of Territories of Company’ Presence of ARMZ, as well as strategic priorities of sustainable development, in 2014 the company developed the Program providing contest support (grants) to community-focused entities of small and medium business (V Contest of Charity and Social Projects of Municipal Settlement “Krasnokamensk Town – 2018” Occasioned with the 50th Anniversary of  PAO “PPGHO”). The Program has been implemented in Krasnokamensk since 2014 on an annual basis.

Project description

The grant contest is implemented with financial support from “Atomredmetzoloto” LLC and in partnership with the Foundation of Support to Small Entrepreneurship in Krasnokamensk.

The project is aimed at supporting the target groups, public initiatives and engaging local community in social problems  solving.

From the very beginning the company headed towards providing easy access to the information on the contest, transparency of its conduct and winners selection process. Contest launch is announced on local TV, City Administration and the Foundation of Support to Small Entrepreneurship web-sites, company’s corporate newspaper, as well as in social media.

In 2014, the first year of projects’ implementation, the company held various events aimed at attracting as many participants, as possible – youths, students of professional colleges, young specialists. The company also held a large-scale consulting campaign, a series of educational webinars.  

Since 2017 the company has been organizing the day of Social Entrepreneur, which includes an educational unit “School of Social Entrepreneurship”. 

ARMZ strives to provide a high level of expertise, credibility of experts, engaging representatives of all groups of stakeholders into the Contest Committee. A special attention is paid to monitoring and assessment of the results and efficiency of the public initiatives implemented in the town. Since 2017 the company has been providing grants to implement projects, initiated by volunteers.

Team and partners 

Partners

Partners:

• Government of Zabaikalye Territory,
• Foundation of Support to Small and Medium Enterprises of Krasnokamensk,
• Administration of Krasnokamensk,
• Foundation of Zabaikalye Territory Development,
• Foundation of Regional Social Programs “Our Future”.

Resources

Financial resources

Contest Fund:

2014 г. – 2 mln RUB.;

2015 г. – 1,5 mln RUB.;

2016 г. – 2 mln RUB.;

2017 г. – 2,5 mln RUB.;

2018 г. – 2,5 mln RUB.

Human resources

On average – 13 people anually.

Achieved results

Immediate results:

2014

The following events were conducted:

–  educational programs andconsultations on employment incentives;

–  educational course “Start up your social business”;

–  consultations on projects submitted by social entrepreneurs, international cases;

–  master-classes from successful social entrepreneurs;

– a series of educational on-line seminars (webinars) “The basis of social entrepreneurship”;

– informational campaign in local media;

–  exhibition fair of social ideas “The city is us” (June 2014);

–  exhibition ofprojects of social entrepreneurship (August 2014);

–  consultations of tax, crediting, registration, etc.;

–  grant contest “Start your business”.

Results of 2014:

• 21 applications;
• 18 grant recipients.

Grants amounted to 50 000 RUB each.

• 12 real working social businesses;
• 2 entrepreneurs received grants in municipal contest;
• 3 entrepreneurs became winners in grant contest in 2015.

2015

Grant contest for community-focused entities of small and medium entrepreneurship on terms of co-financing not less than 30% of grant amount.

2015 results:

• 14 applications;
• 10 grant recipients;

Grants amounted to 150 000 RUB each.

• 9 real working social businesses.

2016

Grant contest for community-focused entities of small and medium entrepreneurship on terms of co-financing not less than 30% of grant amount.

2016 results:

• 17 applications;
• 11 grant recipients.

Grants amounted to 200 000 RUB each.

2017

 «Contest of charitable and social projects of Krasnolamensk town” – grant contest for community-focused entities of small and medium entrepreneurship for development of existing business and (or) launch and development of a new business, as well as for non-profits, state and municipal organizations, volunteers and public organizations.

2017 results:

Day of Social Entrepreneur

• 20 grant recipients

Grants – up to 200 000 RUB each.

2018

• V Contest of Charity and Social Projects of Municipal Settlement “Krasnokamensk Town – 2018” Occasioned with the 50th Anniversary of  PAO “PPGHO
• Day of Social Entrepreneur.

2018 results:

• 25 grant recipients.

Grants – up to 200 000 RUB each.

During all years of grant contest conduct, 66 participants became winners, including:

• Social entrepreneurs – 31,
• State organizations – 6,
• volunteers – 18,
• public organizations – 5,
• municipal institutions – 4,
• non-profits – 1.

Social results:

• created conditions for social adaptation of the population;
• created favorable environment for the development of social business in Krasnokamensk;
• raised credibility of social entrepreneurs due to the large-scale informational campaign in local media;
• created conditions for the organization and further development of social services in  town, especially for children’s activities, in the sphere of education, wellness, etc.;
• boosting employment – created new employment opportunities;
• increased level of self-employment, created additional jobs for hired workers;
• contribution into the economic stability of the town, – new economic entities occurred.

Internal project assessment:

The company applies different methods to assess the project.

Quantitative indicators:

• the quantity of supported programs in the sphere of social protection, health care, education, youth initiatives, culture, etc.;
• the quantity of agreements signed (based on budgets for financing);
• the quantity of events held while implementing the programs (conferences, seminars, trainings, consultations, etc.);
• the quantity of people taking part in conduct of events within the project (the number of men and women, labor veterans);
• the quantity of organizations and institutions, which received support of their initiatives (the name, number of working people and organization’s profile);
• the quantity of organizations of all forms of ownership, involved into the implementation of supported programs.

Qualitative indicators are defined by the following:

• the content of studied and analyzed laws and other regulatory instruments;
• the content of published articles, presentations in media (author, volume, circulation);
• the profile of newly founded public organizations, non-profits;
• conditions of created new employment opportunities (occupation, number of jobs, payment, etc.;
• type of people taking part in various educational events, etc.

External project assessment:

External assessment is held on a regular basis by Foundation of Support to Small and Medium Enterprises of Krasnokamensk, the company (media monitoring).

Challenges and solutions

• distance, remoteness (7 000 km), 
• different mindset (life in a closed city with special supply system),
• closeness to China with a different level of civilization,
• a big number of special correctional facilities nearby (a certain type of people among population).

Plans of further development   

ARMZ plans to continue and further develop the project.