by Howard Green
The pepinieres d’entreprises are the French equivalent of managed workspace. Their development has attracted increasing attention in France since 1985, when DATAR, the French Government regional economic development and planning ministry, formally approved their value in local economic and employment development policy.
As the term implies (pepiniere is the French for nursery, in the horticultural sense), the properties adopt a seed-bed philosophy and provide space in which start-up businesses can develop and expand.
The pepinieres consist of:
(1) Space for both commercial and manufacturing businesses to operate.
(2) Administrative/service facilities (secretaries, telephone facilities, photocopying etc, frequently referred to as services classiques).
(3) Management and business advice.
The range of services provided varies between the different types of space, and as in the British examples there are detailed subcategories of units.
The current pattern
It is difficult to establish precisely how many pepinieres have been developed in France. Lack of central co-ordination and various interpretations of what constitutes a pepiniere make it difficult to establish the true picture. However, there are certainly more than 60 currently established and operating, and in addition another 20 schemes are in the process of development.
The geographical distribution of the pepiniere is fairly widespread throughout France, although there is a concentration in the Nord Pas-de-Calais region, the Ile de France and in the Lyon region. To some extent, this geographical distribution is explained by the unemployment problems of the areas and, perhaps more particularly, by the dynamism of the regions in which they are located and the enterprise of the various groups who form the pepinieres in these regions.
General characteristics
There is no one common formula to the pepiniere in terms of their overall size; diversity characterises the developments in France, just as in the UK. They vary from 1,500 m2 overall subdivided into modules to one large area of 500 m2 in the Ecole des Mines at Douai. Individual units within these broad areas vary, from spaces of 15 m2 in the commercial business-related scheme at Cergy-Pontoise to the seven buildings of 100 m2 and 200 m2 at Parthenay.
There is also a wide variety in the charges for the space, which vary significantly between the different types, whether they be for industrial workshop or commercial space. In Cergy-Pontoise, for example, individual units of 150 m2 are charged at the rate of Fr500 per month for the first six months, Fr800 per month for the following six months and then Fr4,000 for the last month. Many of the developments make this sliding charge through the period of 23 months, and most differentiate between the cost of workshop space and office space. Parthenay, for example, provides space free for the first months, at Fr1,000 per month for the following six months and Fr1,500 for the next six months.
All the schemes offer standard services which include telephone, telex, photocopying and secretarial assistance, but some offer additional services and facilities. These include the use of information technology equipment at the Ecole des Mines in Douai, a conference room at Evry, access to laboratories at Grenoble and information technology terminals and equipment at Ales.
The terms on which small embryo businesses take up this space vary in detail between the individual pepinieres, but one common feature is the length of tenancy granted to each tenant. Because of the nature of French commercial law, each tenant can stay in a pepiniere for only 23 months. After 23 months, however, it becomes necessary to grant a commercial lease, which alters the character of the pepiniere from a short-term seed-bed development with “easy in and easy out” terms into a fully leased workshop. As it is not the philosophy of the movement to provide long-term established work spaces, but to provide the seed-bed opportunity for small businesses, there is no question — in theory at least — that after a period of 23 months companies move from the pepiniere. In practice, however, when the decision has to be made, businesses do stay after the 23-month period.
The developers
A wide range of developers are involved in these schemes, which are generally developed by groups of individuals or authorities rather than by one single authority. These groupings may represent a local economic development group, which in itself will have brought together different interests in the local economy, or it may be the local authority, municipality or some other body.
It is possible to identify four broad groups of agencies involved in the development:
(1) Socio-professional bodies. The chambers of commerce have a different status to those in the UK. The chambers are limited companies, and all businesses in their area subscribe to their maintenance. They run a wide selection of activities ranging from educational and training initiatives to property developments.
(2) Local authorities. Many local authorities are now giving serious consideration to the pepiniere concept: some are developing units. The full range of authorities are involved from the commune to the regional councils. At Evry, a new town south of Paris (for example), the new town development corporation has been active.
(3) Private sector. A variety of private-sector initiatives are observed in France, and the private sector is taking an increasing interest in pepiniere development. Schemes take on a variety of characteristics and different approaches to financing. Partnerships with local authorities and the chambers of commerce are increasing.
(4) Educational and research institutions. One of the innovations in the workspace movement is their development by research and educational institutes. Some of these developments are related to the national Technopole policy, others to more local initiatives.
Financing developments
A range of financial packages are used in the funding, and partnerships and packages are the principal way in which funds are assembled. The state does provide some sources of funding, but in general state funds are not automatic and are given project by project. In many cases European funds have been involved.
In general, the French have resisted the temptation to develop pepinieres in converted buildings: the majority are developed in new buildings, many of which have a hi-tech image.
Conclusion
The development of pepinieres is quite recent in France and the pace of development is increasing year by year as the impetus of small business policy increases and creates a demand for workspace. Although there are similarities between the UK and France, there are some major differences. Perhaps the most important of these is the use of the 23-month tenancy agreement which should ensure that the pepiniere is not used as cheap long-term space by established businesses. The close links with institutions of higher education is another important difference.
There is as yet, however, no critical evaluation of the pepiniere concept which would allow an assessment to be made of their effect on small business development and growth and allow meaningful comparison to be made of developments between the two countries.
