The Missing Entrepreneurs

The Missing Entrepreneurs

Policies for Inclusive Entrepreneurship in Europe You do not have access to this content

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Author(s):
OECD, The European Commission
Publication Date :
18 Dec 2013
Pages :
248
ISBN :
9789264188167 (PDF) ; 9789264188150 (print)
DOI :
10.1787/9789264188167-en

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Entrepreneurship development is an important requirement for achieving of smart, sustainable and inclusive growth. It is also a means to respond to new economic challenges, to create jobs and to fight social and financial exclusion. The impact of the global financial and economic crisis calls for giving entrepreneurship and self-employment a stronger role in economic and social development policies.

This book collects and synthesizes information and data on entrepreneurship activities in Europe, focusing on people that are at the greatest risk of social exclusion. These groups include young people, older people, women, ethnic minorities and migrants, people with disabilities and the unemployed.

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    Preface

    More than five years after the onset of the global financial and economic crisis, tackling unemployment is at the top of our priorities. In the European Union, approximately 4 million jobs are needed to return to pre-crisis employment levels. Groups such as youth, women, seniors, ethnic minorities, and the disabled face particularly high risks of being marginalised in the labour market. Policies should leave no stone unturned in delivering a response, and one of the under-explored avenues is action for entrepreneurship and self-employment, targeted at disadvantaged and under-represented groups.

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    Executive summary

    On the most recent count, some 25.9 million EU residents were unemployed and actively seeking work, representing 10.7% of the labour force. In addition, there are discouraged workers who have given up looking for jobs, and people outside of the labour market for other reasons, who may welcome new work opportunities. One of the most promising and under-explored avenues for governments seeking to address these problems is promotion of business creation by people who are disadvantaged or under-represented in entrepreneurship and self-employment. Many inspiring policy practices are already in place across the nations and regions of Europe, but much more can be done.

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    The meaning and importance of policies for inclusive entrepreneurship

    The economic crisis has impacted greatly on labour markets in the European Union and many countries and regions are experiencing very high levels of unemployment and labour market exclusion. Certain social groups are experiencing particular problems – including women, youth, seniors, ethnic minorities, and people with disabilities – but at the same time have under-recognised potential for entrepreneurship. Policies for inclusive entrepreneurship aim to ensure that all members of society have an equal opportunity to start-up and operate in business and self-employment or to use the experience of engagement with entrepreneurship to increase their skills and employability.

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  • Expand / Collapse Hide / Show all Abstracts Inclusive entrepreneurship activities in Europe

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      Self-employment

      This chapter presents evidence on the quantity and quality of self-employment activities by disadvantaged and under-represented groups, including women, young people, older people, ethnic minorities and immigrants, those with low education and income levels, the disabled and the unemployed. Together these groups account for the majority of self-employment activities in Europe. The prevalence of self-employment activities varies widely across and within groups. Moreover, the activity levels vary greatly across EU member states.

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      Inclusive entrepreneurship over the business life cycle

      This chapter presents evidence on business start-up and operation by disadvantaged and under-represented groups using data from the Global Entrepreneurship Monitor, an international household survey. Data are presented for women, young people, older people, ethnic minorities and immigrants, those with low education and income levels, the disabled and the unemployed. In addition to the self-employed, this survey also identifies those who are trying to start or already running their own business, including those who employ others. The data suggest that, taken together, the disadvantaged and under-represented groups account for the majority of business start-up activities in Europe. However, rates of business start-up and operation within each group tend to be lower than in the mainstream population. The chapter also presents information from various sources on the prior labour market experience and motivations of self-employed people and people starting businesses.

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      Impact of self-employment and entrepreneurship

      This chapter examines the impact of business start-ups, both in terms of economic contribution and in terms of individual benefit. Data presented provide an overall picture of enterprise dynamics in the EU, including business entry and exit, as well as survival. The data show that entrepreneurs from disadvantaged and under-represented groups have businesses that are relatively small and have lower growth potential than those of the population as a whole. Nonetheless, there are important labour market attachment benefits for the entrepreneurs themselves and other benefits, including improved life satisfaction.

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      Part I Reader's Guide

      This chapter provides information and methodological notes on the data sources used in Part I of this book: 1) OECD-Eurostat Entrepreneurship Indicators Programme, 2) Eurostat Labour Force Survey, 3) Global Entrepreneurship Monitor, 4) Flash Eurobarometer, 5) Structural Business Statistics, 6) Factors of Business Success Survey, 7) European Working Conditions Survey, and 8) Statistics on Income and Living Conditions. It also contains the references used throughout Chapters 2, 3 and 4.

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      Policies to improve institutions

      This chapter looks into policies which aim to make institutions more favourable to business start-up and operation by groups that are disadvantaged or under-represented in entrepreneurship. Institutions include regulations that directly affect the costs of conducting business activities, as well as the values, standards and norms that indirectly influence entrepreneurship through defining acceptable roles within a society. These can both constrain and enable entrepreneurship and self-employment by influencing whether they are perceived as desirable and feasible. The chapter illustrates the impact of institutions on entrepreneurship and self-employment by disadvantaged and under-represented groups and offers policy recommendations.

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      Policies for entrepreneurship skills

      This chapter examines variations in entrepreneurship skills levels and challenges across disadvantaged and under-represented groups in entrepreneurship. It also examines policy actions that help entrepreneurs to develop entrepreneurship skills through formal education, stand-alone training and counselling, coaching and mentoring.

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      Policies for financing

      Financing business creation and development is a challenge for all entrepreneurs, but those coming from disadvantaged and under-represented groups face even greater obstacles. Some will experience discrimination in the credit market while others will have difficulties because of lack of savings, collateral and credit history or lack of knowledge about financing sources. This chapter examines the barriers, examines the finance sources, including new alternatives such as mutual guarantees, bootstrapping and crowdsourcing, and explores how policy can help.

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      Delivering policies to the target group

      This chapter focuses on ensuring that entrepreneurship and self-employment programmes reach out to disadvantaged and under-represented groups. Without adaptation of delivery mechanisms or the introduction of special programmes there are a number of barriers that are likely to reduce programme take up and impact among these target groups. The strengths and weaknesses of alternative delivery models need to be considered, ranging from full integration of target groups into mainstream programmes and organisations to specialist programmes and organisations for each target group. It is argued that the effectiveness and efficiency of the different delivery models is highly dependent on the context but that there are many common actions that can be taken to improve delivery to target groups whatever model is adopted.

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      Data and inspiring practices in inclusive entrepreneurship policy: Country examples

      This chapter presents inspiring policy practices from 27 EU member states together with a set of tables that benchmark key indicators for entrepreneurship and self-employment in under-represented and disadvantaged groups against the European Union averages.

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      Austria: Mingo Migrant Enterprises

      Description: Mingo Migrant Enterprises is an integrated support scheme for entrepreneurs with a migrant background in Vienna. It provides business consultancy services for immigrants and ethnic minorities and referrals of immigrants to other mainstream business support schemes in German and various other languages.

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      Belgium: Activity Co-operatives ("Activiteitencoöperaties")

      Description: Activity Co-operatives support business start-up by unemployed people and people receiving state income support in Flanders. It provides a comprehensive suite of training, business advisory services and coaching. Moreover, it provides guaranteed access to social benefits for 18 months during the preparation and start-up of their business activities.

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      Bulgaria: Employment through entrepreneurship

      Description: This integrated entrepreneurship support scheme provides training, start-up financing and business advisory services to support unemployed people in starting a business.

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      Cyprus: The Women's Co-operative Bank

      Description: The Women’s Co-operative Bank, launched by the Cyprus Federation of Business and Professional Women (ΚΟΓΕΕ), is a private sector initiative that promotes and supports entrepreneurship by women.

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      Czech Republic: Assistance Centres for Female Entrepreneurship

      Description: This project provides an integrated support offer to women entrepreneurs, including training, business advisory services and mentoring in two regions of the Czech Republic (Jihomoravský and Zlínský Region).

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      Denmark: Ethnic Coach for Ethnic Minority Entrepreneurs

      Description: This project motivates and supports ethnic minority and immigrant entrepreneurs by providing business advisory services with coaches that are from the same local ethnic minority community.

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      Estonia: ENTRUM (Youth Entrepreneurship Development Programme)

      Description: ENTRUM’s mission is to promote the development of an entrepreneurial mind set and provide free entrepreneurship education to young people in Estonia. Its goal is to train at least 2 000 people (approximately 15% of all Estonians aged 14-19 years old) in all 15 counties between 2010 and 2014.

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      Finland: Start-Up Grant

      Description: The Start-Up Grant promotes and supports business start-ups and self-employment by helping to secure a subsistence income for new entrepreneurs for 6 months (it can be extended for up to 18 months) while their business start-up becomes established. The grant is available to unemployed people and those moving from full-time studies or paid employment into self-employment.

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      France: Auto Entrepreneurship

      Description: "Auto Entrepreneur" status is a legal provision that promotes the legal recognition of self-employment, simplified administrative procedures for self-employed individuals and reduces their social and fiscal contributions. It came into effect in the Law on Economic Modernisation on 1 January 2009.

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      Germany: Start-Up Subsidy

      Description: The Start-Up Subsidy is an active labour market policy programme that provides financial support to unemployed people who start a business.

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      Greece: Self-Employment for the Vulnerable Unemployed

      Description: This scheme provides grants to cover business start-up costs for unemployed people from vulnerable groups (i.e. women, older workers, low-skilled workers and young workers without experience).

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      Hungary: Social Co-operative Support Scheme

      Description: This project provides training for groups seeking to start social co-operatives that aim to integrate people from disadvantaged groups (people with disabilities, the long-term unemployed, those with low education levels and women returning from maternity leave) into the labour market.

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      Ireland: Going for Growth

      Description: Going for Growth supports women entrepreneurs by inspiring them to be more ambitious. Support is provided through mentoring, collaborative peer relationships and networking events.

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      Italy: Affirmative Action for Female Entrepreneurship (Act No. 215/1992)

      Description of programme: This Act is one of several Italian laws that aim to encourage entrepreneurship and self-employment by providing financial support, mentoring and training to female entrepreneurs.

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      Latvia: Grants for Business Start-Ups

      Description: This scheme provides financial support and advisory services to help unemployed people start businesses.

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      Lithuania: Entrepreneurship Promotion Fund

      Description: The Entrepreneurship Promotion Fund was launched to promote and support business creation and new business owners (less than one year) with loans, training and business advisory services. A minimum of 30% of training spaces and 15% of loans must be allocated to people from priority groups (the unemployed, people with disabilities, young people and people over the age of 50).

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      Luxembourg: Federation of Women Chief Executives

      Description: The Luxembourg Federation of Women Chief Executives (Fédération des Femmes Cheffes d’Entreprises du Luxembourg) is a professional association of business women that promotes and supports women entrepreneurs in Luxembourg.

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      Malta: Start Your Own Business

      Description: The Start Your Own Business project provides an integrated support package that includes training, mentoring and financial support for unemployed people that want to start a business.

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      Netherlands: Start-up Credit for Partially Occupationally Disabled Persons

      Description: The start-up credit provides loans for business creation to people who have been designated as partially occupational disabled (i.e. those who have a disability that does not prevent them from participating in some capacity in the labour market). The goal is to help them enter the labour market through self-employment.

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      Poland: Promotion of Entrepreneurship and Self-Employment

      Description: This project provides funding, training and business advisory services to people from vulnerable groups in the labour market to help them start their own businesses. The project’s six target groups are the long-term unemployed (over 12 months in the last 2 years); youth under the age of 25; people over the age of 45; people with disabilities; people living in rural areas; and women, particularly single mothers and women entering or re-entering the labour force.

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      Portugal: Programme for Entrepreneurship and Self-Employment

      Description: The Programme for Entrepreneurship and Self-Employment (Programa de Apoio ao Empreendedorismo e à Criação do Próprio Emprego) facilitates access to start-up financing and provides training to business creation among the populations that have the greatest difficulties accessing the labour market. The groups supported are the unemployed, young people, and people with low incomes.

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      Romania: AntrES Women's School of Entrepreneurship

      Description: The AntrES Women’s School of Entrepreneurship provides entrepreneurial training and advisory services for women who want to start a business. The school also provides training for female students in Economic Sciences who wish to become business start-up trainers.

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      Slovak Republic: Training and Advisory Services for Potential Entrepreneurs

      Description of Programme: This project offers training and business advisory services to unemployed people, youth, women during and after maternity leave, seniors and immigrants to support the development of business plans.

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        http://oecd.metastore.ingenta.com/content/8412061ec036.pdf
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      Slovenia: Self-Employment Subsidy

      Description: This programme provides an income support subsidy during the first two years of business operation for unemployed people and people with disabilities (eligibility depends on the extent and nature of their disability).

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      Spain: EMEKIN

      Description: EMEKIN is a project in the Gipuzkoa province in northern Spain that provides entrepreneurship training and financial support to women who want to start a business. The project also matches new women entrepreneurs with more experienced entrepreneurs who provide mentoring.

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        http://oecd.metastore.ingenta.com/content/8412061ec038.pdf
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      Sweden: Reform of the social insurance system for self-employed workers

      Description: The Swedish government recently launched several reforms to the social security system for self-employed workers that took effect on 1 July 2010. The aim is to reduce the risks associated with moving from wage-employment to self-employment and to provide an incentive to enter self-employment.

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      United Kingdom: The Prince's Trust Youth Business Scotland

      Description of Programme: The Prince’s Trust Youth Business Scotland (PTYBS) provides tailored funding and support services to young people across Scotland to help them start and develop their own business, with a focus on the most disadvantaged and those businesses with most potential to grow.

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        http://oecd.metastore.ingenta.com/content/8412061ec040.pdf
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      Glossary
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