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Acquisition of Key Competences for Economic and Social Sustainability
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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
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
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
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
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 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
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:
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
• 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
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
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
• 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
• 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 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
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”
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
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
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”
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
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)
•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
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
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•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
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
•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: 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
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Keywords
Employability, self-employment, entrepreneurship, EU opportunities, EU funding, social business.
DescriptionThe 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.
- https://ec.europa.eu/commission/priorities/deeper-and-fairer-economic-and-monetary-union/european-pillar-social-rights_en
- https://ec.europa.eu/growth/tools-databases
- https://www.clustercollaboration.eu/
- http://een.ec.europa.eu/
- http://ec.europa.eu/small-business/index_en.htm
- http://een.ec.europa.eu/content/events-0
- http://ec.europa.eu/DocsRoom/documents/21750
- https://www.clustercollaboration.eu/international-cooperation
- http://ec.europa.eu/esf/main.jsp?catId=46&langId=en&projectId=2879
- http://ec.europa.eu/esf/main.jsp?catId=46&langId=en&projectId=2860
- http://europalavoro.lavoro.gov.it/EuropaLavoro/Info/Contatti
- http://www.mitramiss.gob.es/uafse/es/coordenadas/index.html
- http://ec.europa.eu/esf/main.jsp?catId=45&langId=en
