1. Promoting self-employment and enterpreneurship from ESF through JEREMIE initiative LT practice ESF TWG, Bruges

2. Background Consequences of financial crisis:
Unemployment rate 13%
Downturn more than 10% GDP
Narrowed access to finances (high risk and interest rates)
Only training, consultation, orientation activities were not sufficient to enhance employment
 triggered to search for new interventions to create more jobs and enhance enterpreneurship

3. Intervention scheme Targets:
To enhance self employment and start ups as a sustainable way to keep people active in business and labour market
To reach economically inactive people in distressed areas
To make intervention attractive, but “in touch with reality” (offer some additional incentives)
Key elements of intervention:
Provide micro credit for start ups combined with consulting
One-stop-shop principle applied
Additional incentives to promote instrument and encourage self employment and start-ups

4. Intervention scheme - facts
Established “Enterpreneurship fund”, portfolio – 14 mln. Euro
Ceilings of loan (up to 90%) – up to Euro (micro credit) for start up
Project duration (repayment period) – 3-5 years
Loans provided under “De minimis” scheme (also applies for eligibility of activities)
Indicators
Jobs created – 1000
Number of individuals/ ME/ SME received loans 1200

5. Social aspects of intervention
Promotion of social target groups:
Unemployed
Disabled
Youth under 29 years old
Persons over 50 years old
Star-ups in most distressed regions and regional centers
Who can apply for micro credit:
Individuals working with business licence, SME’s not older than year.

6. Implementation phases
Promotion phase
Assessment of skills and needs
Trainings (advanced or basic)
Consultation on preparation of Business Plans
Micro credits
Mentoring

7. ESF JEREMIE scheme

8. What makes it attractive?
Type of aid
Max amount
Loan (loan will cover up to 90% of the total costs of the business project)
Up to Euro
Interest rate rebate
Not more than 5% of interest rate
State guarantee
No need for deposit
Additional incentives for maintaining workplace at least 2 years
For priority groups up to 30% repayment or up to 870 Euro per project
For all other groups – up to 27% repayment or up to 783 Euro per project

9. Key challenges Reach and encourage economically inactive people
Risk for demand of micro credit
Ensure quality of trainings and assessment of needs
Make the intervention attractive and realistic at the same time
Too many additional incentives could lead to not market based conditions

10. Thank you for your attention!
Ramunas Dilba
Ministry of Finance of the Republic of Lithuania
Operational Programmes Management Department
Human Resource Development Operational Programme
Management Division
J.Tumo-Vaižganto str. 8a/2, LT-01512, Vilnius
Phone: , Fax: