Unlocking enterprise in a changing economy

With an economy that is increasingly oriented towards creative problem solving, we must capitalise on the good ideas we have, whilst also positioning Victoria as a world leader that attracts and retains creative talent.

This will be critical if Melbourne is to create the 1.5 million new jobs forecast to 2050 under Plan Melbourne

Applying a holistic and coordinated precincts based approach, this policy paper offers a framework with which to understand and support ‘Enterprise Precincts’ as hubs for the emerging economy.

• Unlocking Enterprise in a Changing Economy (PDF, 1.5 MB)

Enterprise, the creation of something new, requires a combination of head, heart and hands. Good ideas (head) must be pursued with passion (heart), before being executed with skill and expertise (hands).

All three are crucial to innovation, and if the barriers to realising a good idea are insurmountable, enterprise goes begging.

Ensuring Victoria is ready to accommodate and benefit from changes in the global economy is a key function of responsible and proactive planning.

The challenge of creating the jobs of tomorrow comes at a time when industries across the economic spectrum are going through major changes driven by globalisation, advances in technology, disruption of existing business models, and shifting social attitudes and ways of working.

These factors are combining to make change more rapid, labour more mobile, and businesses more dynamic, often resulting in more collaborative working models and compressed time frames to turn ideas into new products, processes or services.

Innovation is becoming increasingly urban, with a growing preference for dense, accessible and amenity-rich precincts - "Enterprise Precincts".

Our future prosperity will reflect how well we manage the transition in our economy as well as the transition of the urban environment it operates within.

The Factors Driving the Success of Enterprise Precincts framework (PDF, 120.2 KB) (pictured right) provides a holistic approach to assess the strengths and weaknesses of Enterprise Precincts. It provides a useful aid in decision making about where to target efforts and form new partnerships.

To support this framework a new zoning tool – the Commercial 3 Zone – has been developed, giving planners an additional mechanism to realise Enterprise Precincts.

The new Commercial 3 Zone

The new Commercial 3 Zone is matched to the needs of the modern and emerging economy, and has a clear purpose to promote innovative and enterprising mixed-use precincts.

It aims to reduce the planning burden for a host of employment uses – from urban manufacturers and makers to co-working spaces – while allowing for complementary yet limited retail and residential uses where these uses are considered appropriate to support enterprise to flourish.

The Commercial 3 Zone was introduced into the Victorian Planning Provisions in October 2018.

More details on the Commercial 3 Zone and guidance on its application

In planning for Enterprise Precincts that align with changes in our economy and ways of working, there are many innovative approaches that can be utilised, including (but not limited to) the use of mechanisms such as:

• Precinct governance models
• Transport improvements
• Public amenity upgrades
• Creative uses of government land holdings
• Supportive funding streams and business assistance programs
• Aligned strategic planning policies and zoning
• Events, place making and programming

Facilitating and coordinating the many mechanisms that can be utilised to realise Enterprise Precincts will require strong partnerships aligned with a shared vision of what can be achieved and a shared commitment to achieve it.

Together we can build on Victoria’s long and proud history as a State of production and innovation, embracing the next wave of opportunities to unlock enterprise in a changing economy.