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Urban Entrepreneurism and Business Competitiveness: The State of Play for Rio de Janeiro Post-Games

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Conference presentation from the 2nd International Research Seminar and Workshop on Regeneration, Enterprise, Sport and Tourism (REST-2) at Liverpool John Moores University.

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Urban Entrepreneurism and Business Competitiveness: The State of Play for Rio de Janeiro Post-Games

  1. 1. Urban entrepreneurism and business competitiveness: the state of play for Rio de Janeiro post-Games Seth Kirby seth.kirby@anglia.ac.uk @sethkirbyaru Theme: The Enterprising City and Urban Entrepreneurialism, Public Policy and Inclusion/Exclusion Impacts
  2. 2. Session contents Quick snapshot… 1. Study background and context 2. Establish rationale and methodological approach 3. Main findings, discussion points and conclusions 4. Outputs, recommendations and implications
  3. 3. Study background • Drawing upon stakeholder theory, analysis extends insights on how conflicting stakeholder demands can be managed and negotiated in the host city legacy planning process • #RioZones: Forms part of a wider project – assesses the impacts of Rio 2016 on favelas, leveraging etc. • Region - focus is Porto Maravilha and the Olympic Boulevard (Boulevard Olímpico) • Porto Maravilha was a designated ‘live site’, assigned to host both cultural and sporting activities in the centre of the host city - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ► Freeman (1984)
  4. 4. #RioZones project riozones.wordpress.com
  5. 5. Rationale • Small and medium sized (SME) business interests and demands are frequently overlooked in mega-event planning and regeneration programmes • Establish the tangible (e.g. business outputs and profit generation) and intangible (e.g. knowledge sharing) outcomes from Rio 2016 for SMEs and micro orgs
  6. 6. Museum of Tomorrow Porto Maravilha Morro da Providência
  7. 7. Small business exclusion • Significant challenges and threats are posed for these businesses, largely stimulated by the execution of unprecedented event interventions • Powerful event stakeholders (e.g. Olympic committees) seemingly restrict and deny the allocation of resources for businesses • Research has indicated that small business ability to access mega-event sites to enhance their business ambitions has been negligible - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ► Andersson and Getz (2008); Heere, Van Der Manden and Van Hemert (2015)
  8. 8. Leveraging small business opportunities • During London 2012, a series of events (‘Playing your Part’ seminars) set up by bodies (e.g. London Business Network) were designed to support suppliers in delivering sustainability • Analysis of official event precincts across Rio 2016 illustrated how live site and ‘Last Mile’ spaces afforded opportunities for micro and small business inclusion - Regional food trucks and official Coca-Cola stands were able to sit side-by-side, enhancing the connectivity between local businesses and visitor crowds - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ► Duignan and McGillivray (2016); Timms (2015)
  9. 9. Understanding ‘stakeholder theory’ and analysis: Applied to the context of mega- events • Stakeholder theory affords event planners and policymakers to consider multiple perspectives across host cities, regions and communities - In this case primarily encompassing micro and small businesses • Enables researchers and practitioners to interpret and reconceptualise the dynamics of stakeholder interests and inclusion
  10. 10. Method/approach • Post-event questionnaire survey distribution, semi- structured interviews and visual ethnography • Survey: business federations, associations and groups based in Rio de Janeiro • 15+ interviews were conducted with a range of small and medium sized businesses - tour operators, educational institutions, food/drink traders, and cultural organisations e.g. museums • Walking methodology techniques were adopted to analyse spatial changes and tourism development
  11. 11. ‘Live site’ analysis • Changes in patterns of space across a mega-event can alter consumption patterns in and around ‘live sites’, and contribute to opportunities - short term enterprise promotional activities • These prevailing outputs were found to be present at a number of ‘fan zone’ Rio 2016 locations - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ► Duignan and McGillivray (2016)
  12. 12. Post-event SME analysis • Balance interests between Olympic/corporates and micro and smaller businesses: • Balancing act? • Transparency questioned - especially with regard to the use of Olympic funds • Negotiations and planning • Disclosure and involvement • Opportunities?
  13. 13. Small business superseded by corporates • Publicity restricted to the sponsoring brands • Limited to sponsors - increasingly lucrative results for ‘officials’ • Exclusivity preventing/making it an impossibility for diversity • Specific concerns raised by the inclusion of local micro and small enterprises
  14. 14. Business competitiveness Varied outcomes: • Unusually - positive, underscoring the strength of the brand through the media • Partly - in the educational market of Rio de Janeiro there is not much competitiveness • No impact • Increased due to increased capacity for new management projects • Business preparedness and adaptability - after the Olympic Games there was a sudden drop in the number of city tourists. Those who had the ability to adapt survived and became stronger
  15. 15. Sustainability and CSR tactics • There was great concern about issues of sustainability and corporate social responsibility, but little support – although these were largely incompatible with the organisers aims • Few actions by the government, including venue reutilisation
  16. 16. Re-animated event zones? • Abandonment of Rio’s ex-Olympic spaces • Redundant sites/warehouses • No permanent fixtures – barring the Museum of Tomorrow • Lack of planning and coordination stifling the development of Porto Maravilha • White elephants?
  17. 17. Re-animated event zones?
  18. 18. Abandoned Olympic sites
  19. 19. Porto Maravilha – no spontaneous animation and limited local value/appeal
  20. 20. Tangible benefits: Bhering Factory
  21. 21. Theoretical reconceptualisation of small business interests in mega-event management • Components of corporate social responsibility and stakeholder theory to assemble a framework for reinterpreting how a series of mechanisms can be deployed for SMEs • Devised a system which repositions and accounts for pre-event SME business planning and bidding procedures • The processes and activities outlined serve to apply and capitalise on SME business efficiencies, extend productivity and innovation, drive competitiveness and support enterprise initiatives
  22. 22. Critical points and conclusions • Hosting the Olympic Games was unable to adequately realise SME objectives and outcomes • Failings of the Rio 2016 national organising committee and government to build carefully crafted and strategically integrated plans • Analysis offers a theoretical reconceptualisation which re- centers micro and small businesses as primary stakeholders • Highlights the strategic activities and partnerships that could be forged between key stakeholder groups e.g. business communities and the NOC - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ► The Guardian (2016)
  23. 23. Key considerations, “outputs” and implications • Examined how Rio 2016 has impacted post-event entrepreneurial capabilities and SME business competitiveness • The Olympic Business and CSR Model could make a valuable contribution to stakeholder theory and analysis theoretically and managerially • Practical steps and actions for balancing small business inclusivity - Implications for the redistribution of business interests - mechanisms provide an impetus to achieve a greater balance for SME inclusion
  24. 24. Any questions? Contact me at: seth.kirby@anglia.ac.uk @sethkirbyaru anglia.academia.edu/sethkirby riozones.wordpress.com
  25. 25. References and further reading • Andersson, T. D., Getz, D., (2008). Stakeholder Management Strategies of Festivals. Journal of Convention and Event Tourism. 9 (3), 199-220. • Duignan, M. B., McGillivray, D., (2016). How Rio 2016 satisfied the sponsors while leaving room for the people. Retrieved July 17, 2017, from http://theconversation.com/how-rio-2016-satisfied-its-sponsors-while- leaving-room-for-the-people-64071 • Freeman, E. R., (1984). Strategic Management: A Stakeholder Approach. Boston: Pitman. • Heere, B., Van Der Manden, P., Van Hemert, P., (2015). The South Africa World Cup: The Ability of Small and Medium Firms to Profit from Increased Tourism Surrounding Mega-Events. Tourism Analysis. 20 (1), 39-52. • McGillivray, D., Frew, M., (2015). From Fan Parks to Live Sites: Mega events and the territorialisation of urban space. Urban Studies. 52 (14), 2649-2663.
  26. 26. References and further reading • Pappalepore, I., Duignan, M. B., (2016). The London 2012 Cultural Programme: a Consideration of Olympic Impacts and Legacies for Small Creative Organisations in East London. Tourism Management. 54, 344-355. • The Guardian., (2016). Food trucks rescue shortfall of Olympic vendors, a sign of Rio scene on the rise. Retrieved October 27, 2017, from https://www.theguardian.com/world/2016/aug/11/rio-olympics-brazil-food- near-me-street-vendors-trucks • Timms, J., (2015). A Socially Responsible Business Legacy: Raising standards in procurement, supply chains and employment at the London Olympics of 2012. In: Holt, R., Ruta, D., (eds). Routledge Handbook of Sport and Legacy: Meeting the Challenge of Major Sports Events. London: Routledge, 217-228. • Wood, D. J., (1991). Corporate Social Performance Revisited. Academy of Management Review. 16 (4), 691-717.

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