AXESS Acquisition of Key Competences for Economic and Social Sustainability

Employability, self-employment and entrepreneurship


SI_2_EN  

 Title
Employability, self-employment and entrepreneurship

 Keywords
Employability, self-employment, entrepreneurship, EU opportunities, EU funding, social business.

 Author
IDP

 Languages
English

 Description
The module is aimed at putting forward the general concept of EU funding and support for self-employability. It also provides an overview of the EU programmes managed centrally by the EU Commission in support of entrepreneurship and resources to access ESF programmes and projects in the countries represented by the project.

 Results

• Develop knowledge concerning entrepreneurship and the capacities of an entrepreneur • Know the importance of Social Business and who are the missing entrepreneurs • Be able to identify EU opportunities for entrepreneurship and self-employability • Develop a basic understanding of European Social Fund (ESF) • Develop knowledge concerning entrepreneurship and the capacities of an entrepreneur
• Know the importance of Social Business and who are the missing entrepreneurs
• Be able to identify EU opportunities for entrepreneurship and self-employability
• Develop a basic understanding of European Social Fund (ESF)


 Contents in bullet points
Module name: Employability, self-employment and entrepreneurship
Unit 1: What is entrepreneurship
• What is entrepreneurship
• Social entrepreneurship
• Entrepreneurship vs social entrepreneurship
• What is needed to be entrepreneur
• Entrepreneurship features
Unit 2: The missing entrepreneurs
• The missing entrepreneurs
• EU support to missing entrepreneurs
• National support to entrepreneurship
• Real life example: Greece
• Real life example: Italy
• Real life example: Romania
• Real life example: Slovak Republic
• Real life example: Spain
Unit 3: EU opportunities for entrepreneurship and self-employability
• EU Support system to entrepreneurship
• The Internationalisation Portal
• The European Cluster Collaboration Platform
• The Enterprise Your Europe Network Supports
• European Social Fund opportunities
• EU financial instruments for SMEs
• COSME Programme
• Innove Fin-EU Finance for Innovators
• Creative Europe Programme
• EU programme for employment and social innovation



 Contents


 

Employability, self-employment and entrepreneurship



What is entrepreneurship What is entrepreneurship




  

WHAT IS ENTREPRENEURSHIP  WHAT IS ENTREPRENEURSHIP



Entrepreneurship is when you act upon opportunities and ideas and transform them into value for others. The value that is created can be financial, cultural, or social

(Moberg and Stenberg, 2012)

Often people think that being a successful entrepreneur means transforming the world by solving big problems i.e. initiating social change, creating an innovative product or presenting a new life-changing solution

This is not true and can be misleading

Entrepreneurship does not need to take the form of a revolutionary product, business or concept

You don’t need to be a brilliant thinker or a visionary to become an entrepreneur

Entrepreneurship means to be able to take the first step into making your own life better, and not necessarily to tackle big issues and make the entire world a better place

What really matters to be an entrepreneur is not to have the most striking idea but to meet a demand in the market

You can become a successful entrepreneur if you are able to identify people’s unsatisfied needs and satisfy them

People also think that:

Entrepreneurship requires large investment

Entrepreneurship means to have better work-life balance
Entrepreneurship is all about money and quick enrichment
Entrepreneurship is for younger people
Entrepreneurship is a niche activity

Actually, an entrepreneurial activity can also deal with cultural or social issues that are in no way linked to profit or do not need huge investments

Further, being an entrepreneur does not always mean having a better work-life balance since:

The entrepreneur is the first responsible of business results
Being an entrepreneur means to make the business successful, whatever it takes


  

SOCIAL ENTREPRENEURSHIP  SOCIAL ENTREPRENEURSHIP



Entrepreneurship is not necessarily a profit-oriented activity

Indeed, a Social Business is aimed at developing, funding and implementing solutions to social, cultural, or environmental issues

Muhammad Yunus (2009) defined a Social Business as a business:

Created and designed to address a social problem
Financially self-sustainable
Profits realised by the business are reinvested in the business itself (or used to start other social businesses)

A Social Business is aimed at increasing social impact of its operations so it reivests profit in:

expanding the company’s reach
improving the products or services
in other ways subsidising the social mission

The main goal of a Social Business is not to maximise profits (although generating profits is desired) but to maximise the social impact

Furthermore, business owners are not receiving any dividend out of the business profits, if any



  

ENTREPRENEURSHIP vs SOCIAL ENTREPRENEURSHIP  ENTREPRENEURSHIP vs SOCIAL ENTREPRENEURSHIP



Social Business differs from a non-profit business because it is not dependent on donations or on private or public grants

Indeed, as any other business, it is self-sustainable because it is able to generate profits

Profits are reinvested in social actions to increase and improve the business’ operations and not distributed to shareholders



  

WHAT IS NEEDED TO BE AN ENTREPRENEUR  WHAT IS NEEDED TO BE AN ENTREPRENEUR



Irrespective of the field of activity, sector, type of business and location the entrepreneur needs a series of capacities and attitudes that make him/her the right person not only to start the business but to run it and to manage it in the long run

Capacity of an entrepreneur:

Sense of initiative

Willingness to do
Organisational abilities
Decision-making
Leadership
Risk-taking
Motivation

Capacity of an entrepreneur:

Independence/autonomy

Concentration
Foresight
Enthusiasm/passion
Ambition
Pragmatism
Optimism/positivity

Capacity of an entrepreneur:

Creativity

Self-confidence
Faith in others
Collaborationism
Prudence
Vitality and health
Self-control


  

ENTREPRENEURSHIP FEATURES  ENTREPRENEURSHIP FEATURES



Other important things to remember about entrepreneurship:

It can involve a new product, service or even a process not necessarily profit-oriented (social business)

It can be oriented to:

Consumers: business to consumer (B2C)
Other businesses: business to business (B2B)
Governments: business to government (B2G)

It can start from an already existing idea:

What is important is to improve and modify it to suit different audience, environment and circumstances
Most ‘new ideas’ can come from something seen or experienced in the past

It is beneficial to have an expertise in certain field, industry, market as one is better equipped to notice opportunities in these areas and come up with solutions

The initial idea or value proposition may and will change throughout the process:

To be successful is fundamental to evolve the idea and the business around it

The business should evolve and adapt to external conditions


The missing entrepreneurs The missing entrepreneurs




  

THE MISSING ENTREPRENEURS  THE MISSING ENTREPRENEURS



The missing entrepreneurs are all those people at risk of exclusion from the labour market due to their belonging to specific disadvantaged and under-represented groups, such as:

Women
Youth
Seniors
Unemployed
Immigrants
People with disabilities
Low-skilled people

It’s important to equip them with more skills and experience to increase their level of labour market activity

Public bodies make specific support available to them through:

Entrepreneurship training
Entrepreneurship coaching and mentoring
Financial support
Improved access to start-up financing


  

EU SUPPORT TO MISSING ENTREPRENEURS  EU SUPPORT TO MISSING ENTREPRENEURS



The European Union launched in 2017 the European Pillar of Social rights

It is aimed at delivering new and more effective rights to EU citizens

It is structured in 20 key principles divided in three categories:

I.   Equal opportunities and access to the labour market

II.  Fair working conditions

III. Social protection and inclusion

The aim of the European Pillar of Social Rights is to respond to current and future challenges which are directly aimed at fulfilling people’s essential needs, and towards ensuring better enactment and implementation of social rights

It expresses principles and rights essential for fair and well-functioning labour markets and welfare systems in 21st century Europe

The European Pillar of Social Rights has the objective to deliver a set of rights to help reaching full employment, social progress and equity within the Union

These will result in better working conditions for disadvantaged and under-represented groups, including adult low skilled women

The European Pillar for Social Rights implementation is a joint responsibility of the EU, Member States and all relevant stakeholders (social actors, third sector etc.)

Member States are called to implement it within their competences and taking into account the different socio-economic situation and the diversity of national systems

For further information about the European Pillar for Social Rights:

https://ec.europa.eu/commission/priorities/deeper-and-fairer-economic-and-monetary-union/european-pillar-social-rights_en



  

NATIONAL SUPPORT TO ENTREPRENURSHIP  NATIONAL SUPPORT TO ENTREPRENURSHIP



At national level, a number of public policies exist to assist former employees after displacement, to support entrepreneurship and to tackle unemployment:

Active labour market programmes: job search assistance, training etc.

Passive labour market programmes: extension of unemployment benefit

Structural reforms that stimulate labour demand

Measures to enhance regional mobilities

After displacement, former employees can take several decisions:

Leave the labour market

Enter a new position in a new firm
Create a business

A former employee that wishes to start a business can decide to:

Buy the firm or a department/unit

Exploit patented technologies and products from the firm (through license agreements)
Exploit its knowhow and experience acquired in the firm to start a related business
Start unrelated business

Before starting a new business one should always keep in mind that public policies can influence business creation in either positive or negative way

In particular, the law can set a number of administrative and legal requirements that can make harder (or easier) the business creation process

Usually, public bodies support the establishment of a new business by disadvantaged groups (women, adults, disabilities etc.)

Public policy barriers to business creation and entrepreneurship

Direct entry barriers: can restrict/prohibit entry in specific economic sectors (necessity to acquire licenses or permits)

 Indirect entry barriers: administrative costs or burdens on new businesses

Public policy assistance to business creation and entrepreneurship

Direct incentives: increased opportunities for competition

Indirect incentives: simplified administrative and legislative burdens


  

REAL-LIFE EXAMPLE: GREECE  REAL-LIFE EXAMPLE: GREECE



• Several initiatives aimed at strengthening entrepreneurship (also targeted to disadvantaged groups) are available
Start-Up Entrepreneurship Programme (2016): support the creation of micro and small businesses
Access to finance for disadvantaged groups (2016): European Investment Fund and the Co-operative bank of Karditsa signed the first guarantee agreement to support micro-enterprises in Greece


  

REAL-LIFE EXAMPLE: ITALY  REAL-LIFE EXAMPLE: ITALY



A new Job Act (2015) was passed to give self-employed workers more security. In particular:

It hindered the possibility of misusing self-employment contractual forms (i.e. contracts of continuous and coordinated collaboration and contracts based on projects)

It made social security contribution compulsory for semi-subordinate workers
It established a new income support measure for self-employers whose contracts were expiring


  

REAL-LIFE EXAMPLE: ROMANIA  REAL-LIFE EXAMPLE: ROMANIA



The law established a service of consultancy and assistance for grassroots entrepreneurial or business initiatives, made available to employees that are about to be fired

Employers are required by law to notify the local employment agency at least 30 days before informing employees that they are going to be fired

In this time frame the employment agency prepares a suite of supports for the employees
In particular the employees will receive free consulting and advices on how to prepare a business plan and to start a business
Inclusive entrepreneurship support services are available to three key target groups: women, youth, non-agricultural entrepreneurs in rural areas
They provide several support forms, including entrepreneurship training and grants


  

REAL-LIFE EXAMPLE: SLOVAK REPUBLIC  REAL-LIFE EXAMPLE: SLOVAK REPUBLIC



A cohesive national policy framework for inclusive entrepreneurship has not been yet developed
However, several objectives and actions related to business creation and self-employment have been introduced


  

REAL-LIFE EXAMPLE: SPAIN  REAL-LIFE EXAMPLE: SPAIN



Entrepreneurs’ Law (2013): creating entrepreneurial motivation, tax and social security incentives, more flexible financial support, support for growth and development, international mobility
Equal Opportunities Strategic Plan (2014-2016): specific measures to support women’s entrepreneurship


EU opportunities for entrepreneurship and self-employability EU opportunities for entrepreneurship and self-employability




  

EU SUPPORT SYSTEM TO ENTREPRENEURSHIP  EU SUPPORT SYSTEM TO ENTREPRENEURSHIP



To promote and support entrepreneurship EU provides key support networks, tools and resources

1.The  Portal - aims to give SMEs clear and easy access to the broad range of existing public services. Presently, 35 target markets around the world are covered. It includes a useful Market Access Database – that is free, open to the public and contains some 300 service providers that cover approximately 1200 support services

https://ec.europa.eu/growth/tools-databases

 

To promote and support entrepreneurship EU provides key support networks, tools and resources

2.The European Cluster Collaboration Platform, focusing on supporting internationalisation of European Businesses and SMEs

https://www.clustercollaboration.eu/

 

3.The Enterprise European Network, providing  access to market information and partnership

http://een.ec.europa.eu/

 

4.The Europe Business portal: a guide to doing business in Europe

http://ec.europa.eu/small-business/index_en.htm

All of them are available in the 24 official languages of the European Union


  

1. THE “INTERNATIONALISATION PORTAL”  1. THE “INTERNATIONALISATION PORTAL”



Tools include:

Guidebooks on internationalisation support for micro-enterprises
An extensive Export Helpdesk
Formulation of the Enterprise Europe Network as a support tool for the internationalisation of micro-enterprises, providing advice for international growth

http://een.ec.europa.eu/

 

The “Database”

Tools include:

Partnering opportunities, divided into countries and sectors 
Event calendar for international growth opportunities
Business matchmaking events, intel on trade missions, conferences and workshops

http://een.ec.europa.eu/content/events-0 



  

2. THE “EUROPEAN CLUSTER COLLABORATION PLATFORM”   2. THE “EUROPEAN CLUSTER COLLABORATION PLATFORM”



Created by DG Growth:

It is an overview of EU Instruments contributing to the Internalisation of European Business to help improve the knowledge of potential business internationalisation stakeholders on funding possibilities and existing instruments (both direct and indirect) and supporting SME internalisation beyond the EU

http://ec.europa.eu/DocsRoom/documents/21750

https://www.clustercollaboration.eu/international-cooperation



  

3. THE “ENTERPRISE EUROPE NETWORK SUPPORTS”   3. THE “ENTERPRISE EUROPE NETWORK SUPPORTS”



Export of products or services to new markets

Acquiring CE marking for products
Finance guidance and mentoring for growth plans
Protection of intellectual property assets in another country
 
The Network has some 600 partners (SME support service providers) in more than 50 countries

http://een.ec.europa.eu/



  

4. YOUR EUROPE BUSINESS PORTAL  4. YOUR EUROPE BUSINESS PORTAL



A convenient guide for micro-enterprises wishing to go abroad and fully exploit opportunities of the EU Single Market
Intends to provide practical information on rights, obligations and opportunities for entrepreneurs who wish to do business throughout the EU
Covers a wide range of topics i.e. e-procurement, IPRs, standardisation, EU funding

Established under the EU programme COSME

Divided into 8 main sections:

1.Start and Grow
2.Product requirements
3.Selling abroad
4.Public contracts
5.Human Resources
6.Finance and Funding
7.Environment
8.Fiscal requirements


  

EUROPEAN SOCIAL FUND (ESF)  EUROPEAN SOCIAL FUND (ESF)



The ESF is Europe’s main tool for promoting employment and social inclusion.
It helps people to get a job, integrating disadvantaged people into society and ensuring fairer life opportunities for all.
Every year, the Fund helps some 10 million people into work, or to improve their skills to find work in future.
ESF goals are:
1.to mitigate the consequences of the current economic crisis, especially the rise in unemployment and poverty levels
2.to create an inclusive society, as part of Europe’s strategy to remodel its economy
The European Social Fund Plus, part of the EU’s budget from 2021-2027, will be the main financial instrument to strengthen Europe’s social dimension. In this period, the ESF will provide some €80 billion in funding to train people and help them get into work
The ESF drive to boost employment aims at all sectors and groups of people who can benefit. However, there is a focus on groups who are suffering most or who can benefit significantly from ESF activities in these areas:
1. Boosting business
2. Opening pathways to work


  

Boosting business  Boosting business



The ESF helps entrepreneurs and the self-employed in many ways, including support for training in basic management, legal and financial skills for setting up a business

Growth by Leadership

(Denmark, 2012-2015)

http://ec.europa.eu/esf/main.jsp?catId=46&langId=en&projectId=2879

 

With “Growth by Leadership” project participants learned how to translate their strategic intentions into actions, and to create the necessary framework that companies require to grow
They also had personal development training, learning about different leadership styles, and working with mentors and consultants to get a deeper understanding of their business and their contribution to its success


  

2. Opening pathways to work  2. Opening pathways to work



The ESF funds projects that are helping millions of people looking for work to find a job. In addition, ESF help puts a particular focus on those who find it more difficult to get a job than others for a variety of reasons, for example because their skills are outdated or because they have no qualifications

A way out of the unemployment circle

(Slovak Republic, 2015-2018)

http://ec.europa.eu/esf/main.jsp?catId=46&langId=en&projectId=2860

 

Employers in seven of the less-developed regions of Slovakia have been encouraged to help unemployed people with a new initiative – and it’s already got thousands of people into work
The project “A way out of the unemployment circle” offers employers a significant financial contribution in return for creating job opportunities for long-term unemployed and low-skilled jobseekers. It is hoped that the over-50 age group in particular, would benefit from newly-created roles across the country


  

Who to contact about ESF support and activities  Who to contact about ESF support and activities



In Italy, you can contact The Ministry of Labour and Social Policies about ESF support and activities http://europalavoro.lavoro.gov.it/EuropaLavoro/Info/Contatti
In Spain, you can contact the UAFSE (Unidad Administradora de Fondo Social Europeo) http://www.mitramiss.gob.es/uafse/es/coordenadas/index.html

More information about ESF projects in your country:

http://ec.europa.eu/esf/main.jsp?catId=45&langId=en



  

EU FINANCIAL INSTRUMENTS FOR SMES  EU FINANCIAL INSTRUMENTS FOR SMES



1.COSME Programme
2.InnovFin – EU Finance for innovators
3.Creative Europe programme
4.EU Programme for Employment and Social Innovation
1.COSME Programme
The programme for the Competitiveness of Enterprises and Small and Medium-sized Enterprises (COSME) is improving access to finance for SMEs through two financial instruments
COSME has a budget of over EUR 1.3 billion to fund these financial instruments that facilitate access to loans and equity finance for SMEs where market gaps have been identified
 
2.INNOVFIN – EU FINANCE FOR INNOVATORS
InnovFin financing tools cover a wide range of loans, guarantees and equity-type funding, which can be tailored to innovators’ needs 
InnovFin is available across all eligible sectors in EU Member States and Associated Countries, under the EU Research and Innovation programme Horizon 2020
With InnovFin – EU Finance for Innovators, the EIB Group can provide financing starting at EUR 25 000 for investments in research and innovation (R&I) to companies and other entities of all sizes and age
 
3.CREATIVE EUROPE PROGRAMME
The Creative Europe programme has set up a €121 million guarantee facility, to enhance the access to finance for SMEs in the cultural and creative sector (CCS), operational as of 2016. It will support the scaling up of cultural and creative projects and help the sector in becoming more competitive
The European Commission has committed to partially cover financial intermediaries' potential losses when they engage with CCS projects. Coverage will reach up to 70% of individual loans' losses and up to 25% for portfolios
 
4.EU PROGRAMME FOR EMPLOYMENT AND SOCIAL INNOVATION (EASI)
EaSI programme is a financing instrument at EU level to promote a high level of quality and sustainable employment, guaranteeing adequate and decent social protection, combating social exclusion and poverty and improving working conditions
One of its objectives is to strengthen ownership of EU objectives and coordination of action at EU and national level in the areas of employment, social affairs and inclusion
EaSI programme supports the development of adequate social protection systems and labour market policies and geographical mobility and boost employment opportunities by developing an open labour market






This project has been funded with support from the European Commission. This web site and its contents reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein.