Donosita – 29th July 2008

International Summer School on Social Innovation

Community of Practice on Inclusive Entrepreneurship

(COPIE)

Lessons from the Basque Country

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Capítulo. Sección…Título Punto 1.1.CONTENT

1. THE BASQUE COUNTRY IN FIGURES

2. THE BASQUE COUNTRY KEY EMPLOYMENT

CHALLENGES

3. THE CONTEXT OF COPIE STUDY

4. KEY STRENGTHS AND CHALLENGES

5. QUESTIONS FOR FURTHER DISCUSSION

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Capítulo. Sección…Título Punto 1.1.1. THE BASQUE COUNTRY IN FIGURES

Total landmass: 7.261 km2

Urban and Rural diversity

Bilbao: strong industrial tradition reconverted towards service sector

San Sebastian: tourist amenities

Vitoria-Gasteiz: From sleepy and devitalised town into an administrative and service centre

2.129.339 inhabitants equally distributed (gender). Half of the population is concentrated in the Historic Territory of Bizkaia

Unemployment rate of people of working age: 3,1%

GDP per cápita (2006): 28.821 € (23.400€ - UE)

Immigrant people: 4,5%

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Capítulo. Sección…Título Punto 1.1.2. KEY EMPLOYMENT CHALLENGES

Problem Key pointsLow youth employment activity rates Activity rate of 31,5 % (below the CAPV average, 68%)

High youth unemployment Under 25 unemployment rate, 7,1 %

Main territorial disparities Bizkaia is the most active territory in comparison with Gipuzkoa and Araba but it also represents the main negative figures for employment and unemployment rate

Highest unemployment rate by territories

Bizkaia has the highest unemployment rate (3,9%) in comparison with Gipuzkoa (2,4%) and Araba (2%)

Women suffer worse working conditions The massive presence of women in the service sector makes the distance to men working conditions greater. Service sector is less structured, has greater employee rotation and poorer contractual conditions than the industrial sector. In general women suffer worse working conditions

High Basque Government expenditure in Social Salaries (5.060€ per person)

The Basque Government expenditure in Social Salary summed up 139.212.355€ in 2005. The Basque Government expenditure in Bizkaia was 103.034.988€, in Gipuzkoa 21.498.936€ and Araba 14.678.431€.

Gipuzkoa province has the highest expenditure in Social Salaries

Bizkaia Regional Government expenditure in Social Salary 1.121.000€, Gipuzkoa Regional Government expenditure in Social Salary 6.038.000€ and Araba Regional Government expenditure in Social Salary 4.402.000€.

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Capítulo. Sección…Título Punto 1.1.

Type of Users

31%

16%11%

0%

11%

26%

0%

5%NO SPECIFIC GROUP

UNEMPLOYED

WOMEN

MIGRANTS AND ETHNICMINORITIES>50

YOUNG PEOPLE UNDER30DISSABILITIES

SOCIAL ENTERPRISE

3. CONTEXT OF COPIE STUDY

42 interviews5 policymakers 18 specialist

advisers19 Users

Mainly face to face interviews

E-mail interviews when distances and time required time to obtain responses

ObjectiveGAIN

QUALITATITATIVE VIEW OF THE STUDY

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Capítulo. Sección…Título Punto 1.1.3. CONTEXT OF COPIE STUDY

Framework of the Study…

Strategy

Culture & Conditions

Start up support & Training

Support for consolidation & Growth

Access to Finance

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Capítulo. Sección…Título Punto 1.1.3. CONTEXT OF COPIE STUDY

Remarkable aspects…

All participants were positive and willing to participate

Questions to entrepreneurs prompted stories , barriers, etc.

Facilitates identifying existing gaps in the provision of support and infrastructure

Facilitates identifying existing different entrepreneurship views across policy makers, specialist advisers and users

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Capítulo. Sección…Título Punto 1.1.4. KEY STRENGTHS AND CHALLENGES

Strengths Challenges

Strategy • Defining a possible framework for a more integrated entrepreneurship policy between Basque Public Institutions

• The need for an overall and a global strategy to coordinate all initiatives (no collaboration and coordination mechanism & methods)• Lack of a more comprehensive and inclusive entrepreneurship strategy

Culture and conditions

• Entrepreneurship culture is developing • Pre-start support is good • Growing development of adapted teaching materials• Lots of initiatives and programmes at regional and local levels• Lots of public budget for entrepreneurship activities

• The need to embed entrepreneurship and enterprise within core teacher training programmes • Pre–start support to the 50+, people with disabilities and people under 30 • More events in regional areas • Involve business education in schools• There are complex and slow administrative processes for start up

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Capítulo. Sección…Título Punto 1.1.4.

Strengths Challenges

Start-up support

• There is good access to mentors • Lots of people are available to give support and advice • Subsidies and grants to start ups

• Coordinated support for start-ups • Scarce provision of incubators and lack of space • Lack of specific mentors for people with disabilities • Lack of mentors with real business experience • No accredited training for business advisors• Scarce access to networking opportunities

Growth and Consolidation

• There is free access to mentoring for Social Economy Enterprises

• Need for a more joined-up approach for growth • Availability and accessibility of premises for post start up • Mainstream business networks around clusters/ sectors

Access to Finance

• Great competitive activities between Financial Institutions • Special financial service providers, e.g. “Cajas de Ahorro” through their “Social Tasks” programme

• Variety of financial products for entrepreneurs - particularly in growth sectors• Banks need to provide more debt crisis advice • Need for financial management support for grants • Scarce financial services for socially excluded groups

KEY STRENGTHS AND CHALLENGES

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Capítulo. Sección…Título Punto 1.1.ENTREPRENEURIAL DYNAMIC

Entrepreneurial Programs…

Inter-Institutional Planning for employment

Emprender On-line

HASI etaHAZI

EJE program

KOSMODISEA

GipuzkoaEmprendedora

1. Culture &Conditions

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2. Start-up support

ENTREPRENARI

SUSTATUEMEKIN

SARBIDE

EKINTZAILE

TXEKIN

URRATSBAT

PRONUE

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3. Consolidation & GrowthINCUBATION

STRATEGY

CENTRE FORINCLUSIVE

ENTERPRISES

2

FINANCIALINSTITUTIONS

HAZIBIDE SEED

CAPITAL

SEED CAPITALBIZKAIA

SPRI

FIARE

ELKARGI

4. Access to Finance

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Capítulo. Sección…Título Punto 1.1.ENTREPRENEURIAL SUPPORT

Specialist advisers…

Centre forEnterprise and

Innovation(CEI)

SPRI – Society forIndustry Restructuring

and Promotion

Chambers ofCommerce

Local DevelopmentAgencies

Specific target groupsupport

Social and VoluntaryAgents

Centre for Inclusive Enterprises in San

Sebastian…

Gipuzkoa

Bizkaia

Araba

Gipuzkoa

Bizkaia

Araba

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Capítulo. Sección…Título Punto 1.1.4. QUESTIONS FOR FURTHER DISCUSSION

How can Public & Private Institutions

move to a more

comprehensive and inclusive

entrepreneurship?

What can be done to get socially excluded people to be involved

in entrepreneurial processes?

What can be done to involve business in

Education?

How can these entrepreneurs develop

Networking

opportunities ?

How can we adapt current Financial

availability?

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Donosita – 29th July 2008

International Summer School on Social Innovation

Thank you very much for your attention!!!

For further information please contact:

Ainhoa Unamuno unamuno@mik.es Iñigo Urkidi urkidi@mik.es