Entrepreneurship in the EU policies Brigitte DEGEN Youth employment, Entrepreneurship, Microfinance Facility Unit

1. Entrepreneurship in the EU policies Brigitte DEGEN Youth employment, Entrepreneurship, Microfinance Facility Unit DG Employment, Social Affairs & Inclusion European Commission

2. Entrepreneurial landscape in the EU

3. Varying appetite for entrepreneurship self-employed employee Source: Flash Eurobarometer 283, 2009

4. Preference for self-employment Source: Flash Eurobarometer 283, 2009

5. Source: Flash Eurobarometer 283, 2009

6. Source: Flash Eurobarometer 283, 2009

7. SMEs however are the engine of Europe’s economy • 23 million SMEs in Europe representing: • 58% of the value added in goods & services • 2/3 of total private sector employment • 80% of new jobs • 99.8% of all companies • 92% employ less than 10 persons • A significant share of new jobs in the EU is created by newly established firms, of which almost 85% by micro-firms. • In the EU, these firms generate on average nearly 2 jobs, in some Member States up to 3.

8. Small Business Act for for Europe (1) • Adopted in June 2008 • 3 main objectives- Promote: • SMEs’ growth, • Entrepreneurship, and • the “Think Small First” principle • 10 principles and a set of policy actions to implement them (both for the MS and the COM) • About 90 policy initiatives and 5 legislative acts

9. Small Business Act for for Europe (2) The 10 principles: • Entrepreneurship • 2nd chance • “Think Small First” • Public administration • Public procurement + state aid • Access to finance • Single Market • Skills and Innovation • Eco-innovation • External markets

10. Small Business Act for for Europe (3) • Principle1 reads as follows: • The EU and Member States should create an environment within which entrepreneurs and family businesses can thrive and entrepreneurship is rewarded. • They need to care for future entrepreneurs better, in particular by fostering entrepreneurial interest and talent, particularly among young people and women, and by simplifying the conditions for business transfers.

11. Promotion of entrepreneurship by DG ENTR In particular: • 2nd chance for entrepreneurs • Erasmus for “young” entrepreneurs • Promotion of female entrepreneurship (ambassadors & mentors) • Promotion of entrepreneurship education • Support to creation and transfer of business • Better Access to finance • Support to SMEs internationalisation • Enterprise Europe Network • European SME Week

12. Entrepreneurship at the heart of Europe2020 strategy (adopted in 2010)

13. EU economy: what is the picture? 23 million people (on average 10% of active population) now unemployed In 2009, EU GDP fell by 4% ; industrial production dropped by 20% to 1990s levels National deficits at 7% of GDP on average, national debts at over 80% of GDP on average EU‘s growth potential has halved as a result of the crisis

14. Europe 2020: 3 interlinked priorities • Smart growth: developing an economy based on knowledge and innovation • Sustainable growth: promoting a more efficient, greener and more competitive economy • Inclusive growth: fostering a high-employment economy delivering social and territorial cohesion 14

15. Europe 2020: 5 headline targets By 2020: • 75 % of the population aged 20-64 should be employed • 3% of the EU's GDP should be invested in R&D • The "20/20/20" climate/energy targets should be met (including an increase to 30% of emissions reduction if the conditions are right) • The share of early school leavers should be under 10% and at least 40% of the younger generation should have a tertiary degree • 20 million less people should be at risk of poverty

16. 7 Flagship initiatives Of which 3 linked to employment & social inclusion with actions to promote entrepreneurship and/or self-employment: • Agenda on New skills for new jobs: Member States are invited to remove measures that discourage self-employment • Youth on the move will dedicate a section to supporting youth entrepreneurship and self-employment. • European platform against poverty will refer to the role microfinance and entrepreneurship can play in overcoming social exclusion Plus • An industrial policy for the globalisation era to improve the business environment, notably for SMEs

17. Achieving employment target of 75% for 2020 by job creation • Up until now, Europe is far from exploiting its full potential in this respect: • The rate of business creation on a European average is estimated at around 4.5 %, compared to 8% in the USA. • Entrepreneurship is less attractive for women • Men are twice more likely to be involved in early-stage entrepreneurial activity than women • Need for expanding the scope of entrepreneurship promotion! • While DG ENTR activities concentrate on competitiveness & innovation (i.e. fast-growing start-ups "gazelles" and innovative SMEs) • DG EMPL activities developed from an employment and social inclusion perspective, therefore complementary to those of DG ENTR

18. Promotion of entrepreneurship & self-employment by DG EMPL (1) • A new Unit created in January 2011 • With a mandate still under approval by EMPL hierarchy, which will focus on: • business start-ups by unemployed and people from disadvantaged groups, as well as on • the sustainability and quality of work of self-employed business owners and micro-entrepreneurs. • Building upon (mostly) already existing activities, main aim is to better coordinate and create synergies inside EMPL and with other concerned DGs (EAC, ECFIN, ENTR, ESTAT, JUST, REGIO, RTD)

19. Promotion of entrepreneurship & self-employment by DG EMPL (2) • Framework of action around 4 objectives: • Increase knowledge on entrepreneurship and self-employment • Raise awareness, facilitate mutual learning and build capacities in EU Member States and regions • Promote voluntary standards and protective measures for entrepreneurship and self-employment • Support entrepreneurship financially

20. Promotion of entrepreneurship & self-employment by DG EMPL (3) • A few examples of concrete activities: • First report on "entrepreneurial activity in Europe" focus of which will be the social and employment aspects of entrepreneurship (in particular by economically and socially disadvantaged groups). • Capacity building in improving quality & performance of support systems for business starters from vulnerable groups – Via an open call for tenders, assistance will be accessible to national and regional authorities and responsible public bodies (i.a. business service providers and financial intermediaries) willing to improve the quality of their entrepreneurial support systems.

21. Promotion of entrepreneurship & self-employment by DG EMPL (4) • Integration of entrepreneurship in the guiding principles for job creation as announced in the flagship initiative "Agenda for New Skills and Jobs". In particular, focus on ways to address administrative and legal obstacles to creating new businesses and to self-employment, and on effective support to entrepreneurship. • * Encouraging Member States to prepare for more, and more effective support towards entrepreneurship under the new ESF ** Facilitating access to finance through the European Progress Microfinance Facility

22. Some relevant links – DG ENTR Your Europe Business Portal • http://ec.europa.eu/youreurope/business/index_en.htm Promoting entrepreneurship • http://ec.europa.eu/enterprise/policies/sme/promoting-entrepreneurship/index_en.htm SME Portal • http://ec.europa.eu/small-business/index_en.htm Enterprise Europe network • http://www.enterprise-europe-network.ec.europa.eu/index_en.htm CIP financial instruments • www.access2finance.eu European SME Week • http://ec.europa.eu/sme-week

23. Some relevant links – DG EMPL European Progress Microfinance Facility • www.ec.europa/epmf ESF support to entrepreneurship • http://ec.europa.eu/esf Supporting entrepreneurs and the self-employed • http://ec.europa.eu/social/main.jsp?catId=952&langId=en Social Europe • http://ec.europa.eu/social More on EU micro-credit initiatives • www.ec.europa.eu/microfinance