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European Social Fund ENTREPRENEURIAL LADDERS OUT OF SOCIAL EXCLUSION Brussels 11 October 2006.

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Presentation on theme: "European Social Fund ENTREPRENEURIAL LADDERS OUT OF SOCIAL EXCLUSION Brussels 11 October 2006."— Presentation transcript:

1 European Social Fund ENTREPRENEURIAL LADDERS OUT OF SOCIAL EXCLUSION Brussels 11 October 2006

2 European Social Fund JOBS, JOBS JOBS BUT FROM WHOM AND FOR WHOM? Unlocking business potential particulary of SMEs is one of 4 priorities of revised Lisbon Agenda 22 million new jobs have to be created But entrepreneurship and local economic development have been taken out of the Employment Guidelines and moved to the Microeconomic Guidelines Employment Guidelines focus on labour supply Microeconomic Guidelines deal with labour demand but focus on innovative high growth clusters. What mechanisms exist to ensure that the jobs created also benefit those groups and areas far from the labour market?

3 European Social Fund THE MONEY IS THERE. BUT WILL IT REACH THE PEOPLE WHO NEED IT? Support for entrepreneurship is raised under all three objectives of the Regional Fund. 14% of the Social fund or 8 billion euros goes on entrepreneurship related measures (mainly training, start-ups, networks..) Entrepreneurship is seen to contribute to SF objectives for activation, adaptability and social inclusion. But there is no overall vision of the main obstacles, opportunities and steps required to increase access to entrepreneurship to a broader public Risk: A thousand flower bloom – many projects for grant aid, many projects for training. Major gaps for people furthest from the labour market, poor take-up, duplication, lack of viability.

4 European Social Fund EQUALS RESPONSE A broader concept of entreprenreneurship (the right to take economic inititiatives) More varied motives : survival, work-life balance, personal satisfaction, social objectives (social economy) + also getting rich. A larger target group. Not just registered unemployment but also those inactive and the 30 million existing entrepreneurs in the informal economy. Women, ethnic minorities, youth, older…. Not just a question of isolated obstacles, or opportunities but a pathway of steps that are difficult for everyone but specially for those far from the labour market.

5 European Social Fund SO WHY A LADDER?

6 European Social Fund Creating the culture and conditions How to instill inclusive entrepreneurship in schools and educational establishments How to promote positive attitudes (role models, media….) How to create the right policy framework (interdepartmental coordination, training advisors, tax, SS, licenses, ….

7 European Social Fund EQUAL SOLUTIONS From technical competences to broader attitudes Guides, computer games, modules Curricula change Support for teachers Linking schools to business (mentors, placements… Role models, media Interdepartmental coordination, training advisors, Changes in licensing, tax- benefit.

8 European Social Fund Integrated business support How to take business information and support closer to particular target groups. How to ensure mainstream business support services respond to the needs of specific groups? How to ensure the coordination and networking of specialist and mainstream business support providers Specially adapted training

9 European Social Fund EQUAL SOLUTIONS Different forms of outreach Developing specialised support for certain phases and activites (incubators, mentors, specialist centres) Building integrated pathways of business support (developing the concept of one stop shops) Using lead agencies as brokers within partnerships between public, community, business and financial players. Developing tools, quality standards and recognised training for inclusive business support (Enterprise passport).

10 European Social Fund Access to appropriate finance How to make (microfinance) work in different contexts? How to adapt existing sources of (bank) finance to the needs of specific groups? How to engineer public funding mechanisms so that the meet the needs of specific groups?

11 European Social Fund EQUAL SOLUTIONS Better understanding of real financial needs of disadvantaged groups. For example, ADIE. Combining mentoring and business support with finance (San Cosme Innova Barcelona) Adapting products and methods to meet needs (very small loans, step lending, peer lending, no interest loands, waiving guarantees, global and fast track grants, financial capacity building, …. ) Using partnerships to build bridges with financial and community organisations Networks to increase sustainability (DMI)

12 European Social Fund IMPROVING SUSTAINABILITY How to provide different kinds of post start-up support? How to build sustainable networks of entrepreneurs and other actors. How to link with potential growth areas (care, environment, knowledge economy, culture…,

13 European Social Fund EQUAL SOLUTIONS Post start-up systems, IT tools, self screening methods, action plans Networks – IT support, guides, tools, benchmarks. Franchising Transfer of existing establishments. Growth areas: Culture, IT, Care, Environment – (Procurement regulations, joint planning of local services (social economy), training and capacity building in firms, quality marks, joint marketing

14 European Social Fund GENERAL LESSONS Not so much a question of innovation as implementation. Requires measures of cost effectiveness, adaptation to different circumstances and target groups, transferrable procedures, systems for controlling quality, etc. General gaps at start and end of the ladder – conditions and mindsets – and connection with markets But each region needs to develop an overview of the barriers and opportunities faced by different groups. Need for overall strategy and action plan for opening up entrepreneurship to all Need to coordinate community and national instruments so they genuinely provide an entrepreneurial ladder out of social exclusion.

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