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National Youth Guarantee Schemes

Capacity Building Seminar – Supporting Youth in Entrepreneurship

Brussels, 22-23 September 2014

Ulrike STOROST, Team LeaderUnit Sectorial Employment Challenges, Youth Employment & Entrepreneurship

European Commission - DG Employment, Social Affairs and Inclusion

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Key problems for youth employment

• Macro-economic environment• Young people dropping out of education or work; low skilled youth most at

risk of unemployment and exclusion in the longer term• Difficult school-to-work transitions• Growing skills and geographical mismatches 2 million vacancies across EU• Transitions more difficult in countries with segmented labour markets

Macro-economic instruments Youth Guarantee schemes Increase the supply of high-quality traineeships and apprenticeships Reforms in labour market regulation Labour mobility

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A Youth GuaranteeCouncil Recommendation of 22 April 2013: Member States

ensure that all young people up to 25 receive a good-quality offer of

employment, continued education, an apprenticeship or a traineeship

within four months of becoming unemployed or leaving formal education.

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Self-employment under the Youth Guarantee

• Self-employment is a valid offer under Youth Guarantee, if appropriate and if it is likely to lead to sustainable labour market participation the quality element

• The Council Recommendation mentions incentives for self-employment and start-ups among the measures that can make the Youth Guarantee schemes a success.

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Examples of measures to support YG on entrepreneurship and self-employment

• YG recital 14 on entrepreneurship education

• Encourage schools and employment services to promote and provide continued guidance on entrepreneurship and self-employment for young people.

• YG recital 19 on start-up support

• Ensure greater availability of start-up support services

• - Training of employment services’ staff and teachers

• - Development & implementation of entrepreneurship courses in secondary education

• - Training for unemployed young people

• - Cooperation between employment services, business support and finance providers (e.g. employment fairs and networking events)

• - SME start-up support• - Self-employment support• - Training in business skills for e.g. for

unemployed persons, accompanied by entrepreneurship grants

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Youth entrepreneurship in the YGIPs

• Youth Guarantee Implementation Plans (YGIPs) from all 28 MS setting out national YG schemes:14 Member States – entrepreneurship

integrated into the YG schemes7 Member States – no explicit mentioning of

entrepreneurship as part of their YG schemes7 Member States – very limited allusion to

entrepreneurship in YGIPs

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Some promising examples…

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Promising example from Estonia

• Entrepreneurship education is already embedded into school system.

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Promising example from Lithuania

• Entrepreneurship education will be provided as continued education.

• YGIP provides a list of initiatives to develop a network of vocational guidance services in a real and virtual environment, to organise entrepreneurship promotion events and to disseminate information about the YG.

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Promising example from Portugal

• The Youth Investment Initiative is a new measure, which aims at supporting the creation of new businesses by providing "financial support to the investment in the form of a repayable subsidy".

• Entrepreneurship education is provided, however only at higher education level.

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Promising example from Finland

• Measures include supporting and developing new forms of entrepreneurship through training, guidance and start up grants, which have already been piloted by regional authorities.

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Promising example from France

• Entrepreneurship are envisaged to be a part of school programmes.

• PEPITES are partnership programmes between secondary and higher education. Common programmes between PEPITE and "missions locales" aim to increase access to entrepreneurship for low qualified young people.

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Promising example from Malta

• There is a specific measure (Youth Entrepreneurship Scheme) to promote entrepreneurship.

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Promising example from Poland

• The Youth Guarantee includes support for entrepreneurship.

• The Academic Career Offices are mentioned in the context of informing about career possibilities; there will be special measures targeted at the graduates of higher education (e.g. stimulation of entrepreneurship, financial support for starting a company, voucher for a further training, counselling, practical training in a company, etc.)

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Promising example from Ireland

• Entrepreneurship education is a new measure, which was initiated in 2014.

• All newly unemployed with low probability of finding another job quickly have group engagement within 2 weeks and individual session with case officer for setting up a Personal Progression Plan - this can include referral to entrepreneurship.

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Promising example from Croatia

• Entrepreneurial learning is being rolled out nationally at all levels, and there are well-presented plans on support for entrepreneurship as an employment option at all levels.

• It is positive that there are tailor made programmes for specific sectors, in the Croatian case for young farmers.

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Promising example from Slovenia

• Entrepreneurship education is integrated at all levels of education.

• YGIP identifies a need for the entrepreneurial training of teachers which will help to ensure that entrepreneurship education is embedded into the curriculum.

• There is a one-stop-shop for young entrepreneurs for training, advice and assistance.

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Promising example from Slovenia (2)

Implementation The Plan explicitly addresses "preventive action" and foresees some measures including in the field of entrepreneurship and innovation.

Hiring incentives are planned, as well as start-up support. Financial incentives for recruitment of young people are indicated, also in sectors such as social entrepreneurships, youth and NGOs organisations, in the field of agriculture.

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Promising example from the UK

• Support to entrepreneurs is provided through the New Enterprise Allowance providing access to business mentoring and offering financial support to unemployed people aged 18 and over who want to start their own business.

• Start Up Loans scheme supports entrepreneurship. It provides applicants with a mentor, access to resources (including free accounting software) and a loan.

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Promising example from the UK (2)

• Entrepreneurship included in schools' careers advice.

• Support for entrepreneurship as a career is provided, both financially and through 'enterprise clubs' which encourage the exchange of support and advice.

• Entrepreneurship is being supported through start up loans and allowances.

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Promising example from Spain• The ES YGIP fits into a comprehensive national

strategy, called the Youth Entrepreneurship and Employment Strategy 2013-2016

• Entrepreneurship education is foreseen both in schools and at public employment services with the collaboration of dedicated stakeholders (microcredit providers, employer support entities).

• Associations of young entrepreneurs and representative youth organisatiosn participated in the consultation process.

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But also, lack of strategic approach to entrepreneurship

within the YG schemes…

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Country A

• There is no indication if entrepreneurship education is, or will be provided in school or as continued education, only reference to an entrepreneurship seminar for beneficiaries under the Integrated Intervention measure.

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Country B

• There is no information on the provision of entrepreneurship education, although measures to support the young unemployed to become entrepreneurs are included.

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Country C

• Entrepreneurship initiatives exist but integration into the strategic framework of the YG scheme rather underdeveloped.

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Country D

• No explicit reference to entrepreneurship education i.e. at secondary level. This could be an integral part of career guidance for secondary school pupils.

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Country E

• School based entrepreneurship education is not reflected in the formal education system.

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Country F

• There is no information on the provision of entrepreneurship education, although some measures to support the young unemployment to become entrepreneurs are mentioned.

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Good measures are listed in the YG schemesbut

need for a more strategic and integrated approach to fostering youth entrepreneurship!

•Good practice: Enhancing skills to facilitate labour market integration

through integration of entrepreneurship education into schools/higher education/vocational training centres

Active role for employment services to promote and provide continued guidance and courses on entrepreneurship and self-employment

Ensure greater availability of start-up support services

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Youth employment/entrepreneurship –

top political priority

President Juncker – Political Guidelines for next Commission: Emphasis on climate of entrepreneurship and job creationImportance of fostering entrepreneurial mind-sets, of making start-up support services and microfinance more availableUse of EU funding to support young entrepreneurs

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What are we doing?

1) Increase knowledge on entrepreneurship and self-employment2) Raise awareness, facilitate mutual learning and build capacities in Member States and regions3) Support entrepreneurship financiallyThe ESF Regulation 2014-2020 investment priority "self-employment, entrepreneurship and business creation"