SME and Entrepreneurship Policy of the EU Brussels, 7 November 2011 Marko Curavić – Head of the Unit E.1 - Entrepreneurship European Commission Enterprise and Industry European Commission Enterprise and Industry SMEs - EU’s growth engine 67.4% of private jobs and 80% of new private jobs 58% of total business turnover 33% 29% SMEs 17% 21% Micro Small European Commission Enterprise and Industry Medium Large Large Difficulties faced by SMEs • • • • • • Access to finance Business and regulatory environment Availability of skills Access to markets Access to research and innovation Networking among companies European Commission Enterprise and Industry The “Small Business Act” • Adopted in June 2008 • Main objective: create a common framework for SME initiatives and implement the “Think Small First” principle • 10 principles and a set of policy actions to implement them • About 90 policy initiatives and 5 legislative acts (national and European level) European Commission Enterprise and Industry The 10 SBA principles 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Support entrepreneurship Give a 2nd chance (failure) “Think Small First” (reduce burdens) Public administration responsive to SME needs (e-government) Improve access to public procurement & use of state aid Facilitate access to finance Benefit from Single Market opportunities Access to skills and innovation Eco-innovation/environment opportunities Access to external markets European Commission Enterprise and Industry Why a Review of the SBA? • Good progress since the adoption of the SBA but: Need to continue improving SME business and administrative environment to prepare for new challenges (crisis) Need for stronger governance to ensure the implementation of the SBA at European and national level European Commission Enterprise and Industry The SBA Review • Four priority areas: smart regulation access to finance access to markets promoting entrepreneurship • Enhanced governance • 48 new actions European Commission Enterprise and Industry SBA Review Examples of actions • Smart regulation - New goal: start a business in 3 days for €100 • Access to markets - A new strategy for EU SMEs going international • Access to finance - Simplify rules for greater access of SMEs to EU funds • Promoting entrepreneurship - Mentoring schemes for women entrepreneurs European Commission Enterprise and Industry Enhanced governance • The network of the SME Envoys: European and national SME Envoys & SME representatives at European level meet 2/3 times per year • SMEs will have their say with the SME Assembly: representatives of small businesses from all over the 27 Member States will gather yearly European Commission Enterprise and Industry The perception and attitudes of European citizens towards entrepreneurship lag most other countries… If you could decide between different types of jobs, which one would you prefer? 100% 80% 60% 40% 71 55 20% 51 45 39 0% EU27 US China self-employed European Commission Enterprise and Industry Japan Korea employee Source: Flash Eurobarometer 283, 2009 Preference for Self-Employment in Comparison 80 70 50 40 30 20 Countries European Commission Enterprise and Industry Source: Flash Eurobarometer 283, 2009 SK BE DK SE CZ MT JN HU ES AT DE FI NL NO HR CH LU EE EU27 UK LV SI IE LT BG TR PL FR KR PT RO IT US IS CY 0 EL 10 CN Percentage 60 Key Characteristics in Comparison Comparison EU - US - Asia 80 70 60 50 % 40 30 20 10 0 73 71 55 45 51 49 39 49 38 40 36 40 31 28 23 22 32 30 20 12 Preference for selfemployment EU27 European Commission Enterprise and Industry Feasibility of becoming Experience of starting self-employed a business US China Japan Favourable image of entrepreneurs South Korea Perceived Risks of Entrepreneurship Greatest fears when starting up a business – EU27 First mentions Second mentions The possibility of going bankrupt 28 The uncertainty of your income 21 22 The risk of losing your property 18 18 19 Job insecurity 9 11 The possibility of personal failure 8 10 Need too much energy or time 8 7 49 40 37 20 18 15 Q14. If you were to set up a business today, which are the two risks you would be most afraid of? Is it: Base: all respondents, EU27 European Commission Enterprise and Industry Source: Flash Eurobarometer 283, 2009 Barriers to entreneurship – EU27 Strongly agree Agree Disagree Strongly disagree It is difficult to start one's own business due to a lack of available financial support It is difficult to start one's own business due to the complex administrative procedures It is difficult to obtain sufficient information on how to start a business People who have started their own business and have failed should be given a second chance One should not start a business if there is a risk it might fail 35 46 29 17 10 2 7 42 34 28 19 DK/NA 16 4 9 29 53 31 9 12 10 3 7 33 13 5 Q18. Do you strongly agree, agree, disagree or strongly disagree with the following opinion? Base: all respondents, EU27 European Commission Enterprise and Industry Source: Flash Eurobarometer 283, 2009 Mission Statement – Promotion of Entrepreneurial Spirit “Winning the hearts and minds of European citizens” Building knowledge – “know about” Building skills – “know how to do” Changing attitudes – “wanting to do and being confident” Targeting the general population and selected groups European Commission Enterprise and Industry Definition of Entrepreneurship • Entrepreneurship refers to an individual’s ability to turn ideas into action. • It includes creativity, innovation and risk taking, as well as the ability to plan and manage projects in order to achieve objectives. This • supports everyone in day-to-day life at home and in society, • makes employees more aware of the context of their work and better able to seize opportunities, • and provides a foundation for entrepreneurs establishing a social or commercial activity (2006 Commission Recommendation on Key Competences for Lifelong Learning) European Commission Enterprise and Industry Entrepreneurship Education • Commission Communication entrepreneurial mindsets” (2006) on “Fostering • Oslo Agenda on Entrepreneurship Education in Europe (2007): a detailed menu of actions • Call for proposals on “Entrepreneurial Culture (2009) • High Level Reflection Panels on Entrepreneurship Education (5 Panels in 2009/2010), • Symposium "Teacher Education as a critical success factor” (April 2011) • Teacher Training Laboratories to exchange methods and good practice (4th quarter 2011 – 2nd quarter 2012) European Commission Enterprise and Industry Activities at EU level Efforts focus currently coordination so as to strategies. on increasing European develop more systematic Present goals: 1) Increase the exchange of experiences and practices across Europe, particularly among policy makers: - Expert Groups, High Level Reflection Panels, Symposium, Teacher Training Laboratories 2) Promote European projects that will become a model or a reference for the multiplication and dissemination of activities in this field: - 9 European projects currently funded under the CIP for EUR 3.2 million, second call planned for 2012 European Commission Enterprise and Industry Entrepreneurship Education – Key Issues • High importance of involving teachers • Make entrepreneurship an integral part of the Curriculum • Engage businesses • Engage non-profit / intermediary organisations • Besides formulating a national strategy, link entrepreneurship education into local and regional strategies European Commission Enterprise and Industry European network of female entrepreneurship ambassadors • Aim: Role models to inspire other women to become entrepreneurs by "telling their story". • 270 ambassadors in 22 European countries • In 2010, 141 events and workshops with over 8300 participants in 10 countries. • First results from 6 countries: 101 new women-led companies have been created. • 20 grants for EUR 976 000. European Commission Enterprise and Industry Female Entrepreneurship Ambassador – Dr. Karin Uphoff / Germany Uphoff pr & Marketing GmbH is a full-service agency, with a focus on small and medium-sized businesses as well as on companies and organisations in the healthcare industry. In 2003, Dr. Karin Uphoff set up her own business, and today has ten employees. Her company has received several awards, among them awards for “innovation”, “entrepreneurship”, and “family-friendly policies”. European Commission Enterprise and Industry Female Entrepreneurship Ambassador – Susanne Rostmark / Sweden Susanne Rostmark founded FriGeo in 2003 to commercialize the results from her research in environmental soil science. The technology is patented by Susanne and her co-workers. Freeze-Dredging is a technique used for uptake of contaminated sediments and objects. Firstly it stabilizes the contaminated sediment by freezing and then the frozen segment is lifted up and above the water. While the contaminated soil is frozen when lifted there is a very small risk for redistribution of contaminated sediment during uptake. Susanne lives in far north of the Arctic Circle in the cool, cold and creative, Kiruna and uses the joy of frozen water not only for business but also as an enthusiastic skier. European Commission Enterprise and Industry European Network of Mentors for Women Entrepreneurs • Call for proposals • Budget: EUR 1 million • Aim: coverage of 15 countries. Received 53 proposals. Evaluation report: 17 • AL, BE, CY, ES, FYROM, GR, HU, IRL, IT, MNTG, NL, RO, RS, SI, SLO, TUR, UK. • Objective: Mentors to assist women entrepreneurs by providing advice and support with the establishment, management and growth of their enterprises. European Commission Enterprise and Industry Other ongoing activities • The European Network to Promote Women’s Entrepreneurship (WES) 31 members - government representatives Annual activity report • Women Enterpreneurship Portal Women entrepreneur organisations, projects, conferences for WE European Commission Enterprise and Industry New and host entrepreneurs benefit from Erasmus for Young Entrepreneurs Benefits for Host Entrepreneurs • • • • Access new skills and innovative knowledge Work with a young fresh mind contributing new ideas Gain knowledge and intelligence about the foreign markets Opportunity to establish a new business partnership with an entrepreneur from another country European Commission Enterprise and Industry Benefits for New Entrepreneurs • • • • Get experience & advice from seasoned entrepreneur Develop international contacts Get knowledge about foreign markets Providers, clients, coventuring opportunities How does Erasmus for Young Entrepreneurs Work? European Commission – definition of strategic and financial framework Support Office: day-to-day operational management of the programme Intermediary organisations Local and national business support organisations active in business support (e.g. Chambers of Commerce, Regional Development Agencies, Innovation Centres…) European Commission Enterprise and Industry Manage and promote • Recruit and assess entrepreneurs • Proactively look for exchanges • Support new entrepreneurs before & during the stay • Promote Erasmus for Entrepreneurs at national, regional and local level • Co-financing of max 90% of eligible costs in accordance with the regulations for Erasmus for Entrepreneurs The Exchanges Between Entrepreneurs Erasmus for Young Entrepreneurs So far: • Almost 4000 accepted candidates from all over the EU (Spain and Italy are the main actors in EYE) • Approx.800 on-going or finished relationships • 80 grants for EUR 11.3 million • Positive feedback from entrepreneurs: 90%: exchange fulfilled objectives; 85% of NE recommend the programme; 85% of HE ready to repeat the experience. European Commission Enterprise and Industry For more information SBA and SBA Review http://ec.europa.eu/enterprise/policies/sme/small-business-act/index_en.htm European Small Business Portal http://ec.europa.eu/small-business/index_en.htm SME Performance Review http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/performance-review/index_en.htm Eurobarometer on entrepreneurial attitudes: http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/eurobarometer/index_en.htm Entrepreneurship education: http://ec.europa.eu/enterprise/policies/sme/promoting-entrepreneurship/education-trainingentrepreneurship/index_en.htm Female entrepreneurship: http://ec.europa.eu/enterprise/policies/sme/promoting-entrepreneurship/women/index_en.htm Erasmus for Young Entrepreneurs: www.erasmus-entrepreneurs.eu European SME Week: http://ec.europa.eu/sme-week Marko.Curavic@ec.europa.eu European Commission Enterprise and Industry