The MERIT project was designed to introduce innovative approaches to assist the development and diversification of Russian mono-activity mining towns. A clear set of guidelines was established by the project, focusing on four main themes:

• Creating effective approaches to development planning;
• Strengthening the management of local development;
• Developing diversification strategies and programmes;
• Obtaining more resources for development.

Under Theme 3 (developing diversification strategies and programmes), after intensive enquiry and discussion, it was agreed to establish a “package” of measures that integrated workspace for small business, micro-credits and training. Business support centres were established in each of five pilot towns: a dedicated incubator for women entrepreneurs in Kiselevsk, an all-purpose centre for business and employment in Kizel, Business Advice Centres in Kopeysk and Venev, and a major Business Park development in Novoshaktinsk. The centres became the main delivery mechanism for providing workspace for new businesses, a micro-credit fund targeted at businesses using the centres, and a full range of advisory and consultancy services.

Though small, the micro-credit funds established were sufficient to create the necessary mechanisms and to help generate a programme of investment and reinvestment. Local fund managers were trained and the business centres and micro-credits were supported by advice and training. A comprehensive “business support pack”, made up of the best practice in supporting start-ups and new businesses, was also created under the project.

The Kizel Business Centre can be seen as a good example of the type of facilities created under the MERIT project. This centre, which was registered as a non-profit organisation, went on to employ its own full-time staff and occupy almost an entire building in the centre of the town. It included a business incubator, with at one time over 15 local entrepreneurs waiting to rent space, a Social Employment Centre, IT services and an Internet Café.

The MERIT project involved both top-down (strategies, guidelines, planning approvals) and bottom-up (local plans reflect local needs and priorities, local implementation and sustainability) approaches, which are applicable to any local and regional development programme.