PROMOTING ENTREPRENEURS

HIP IN EU POLICIES

Olivier CoppensJournée “Promouvoir l’entreprenariat et l’exercice libéral aurpès des

jeunes en France et en Europe”Paris, 2 June 2015

Snapshot of the EU labour market

Employment rate (%), 2013 and 2014

Source: Eurostat

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Labour Market – Employment rate

Young people (15-24 yrs) not in employment, education or training (NEET) in EU Member States, 2013 and 2014

Source: Eurostat

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Labour Market – Youth Unemployment

Gaps between male and female full-time equivalent employment rates (FTER) and employment rate (ER) in 2014, women and men aged 20-64

Source: Eurostat

Labour Market - Unemployment

Entrepreneurship in EU policies

2 types of policies:•Promotion of social entrepreneurship – policies to support entreprises that have a social mission•Promotion of inclusive entrepreneurship – policies to support business creation by under-represented groups

Social entrepreneurship

An action plan: the Social Business Initiative3 types of objectives:•Improve funding for social enterprises•Improve visibility and recognition of social entrepreneurship•Improve the legal and regulatory environment for social enterprises

Inclusive entrepreneurship

What is the issue?•Schemes to support business creation under-represented groups (young people, women, disadvantaged groups)Why? •Because self-employment is an avenue for the unemployed to get into a job•Attractive for young people

Inclusive entrepreneurship

•But to launch a business you need capital•The question of self-employment is therefore linked to micro-finance

…and for liberal professions, it is essential that there are no disproportionate barriers to the access to those professions, as recommended in the European Semester

Inclusive enterpreneurship

What are we doing?•Increase knowledge on entrepreneurship and self-employment-> Convention with OECD•Awareness, mutual learning and capacity-building->Seminars for policy-makers in EU Member States with OECD (Local Economic Employment Programme) funded by European Social Fund

Convention with OECD on entrepreneurial activities in Europe: state of play

• Deliveries in 2013 -2014

• Prolongation of the current Convention until the beginning of 2015

Convention with OECD on entrepreneurial activities in Europe:

- Policy brief on entrepreneurship for people with disabilities (05/2014)

- Policy Brief #1 for Year 3 -> Expanding the networks of disadvantaged entrepreneurs (07/2014)

- Policy Brief #2 for Year 3 - >Sustaining self-employment activities (09/2014)

- Annual Report for Year 2 (10/2014)

- Policy Brief #3 for Year 3 - > Using entrepreneurship to formalise the informal economy (11/2014)

- Annual Report for Year 3 - > Growth potential of start-ups by disadvantaged group + Effective coaching and mentoring and Public procurement (02/2015)

Convention with OECD on entrepreneurial activities in Europe: 2014-2017 new convention

1. Business creation by under-represented and disadvantaged groups1. 10 rapid policy assessments: 5 assessments in year one and 5 in year two2. 3 in-depth policy reviews: first starting in January 2014, the second in spring 2014 and

the third in autumn 2014 (one year to complete each)3. 1 compendium of good practices (developed and published online in year one and

expanded with additional good practice examples in year two)4. 1 capacity building seminar: September 2014

2. Social entrepreneurship1. 2 in-depth policy reviews (1 policy in year one and 1 in year two)2. 2 capacity building seminars (1 in year one and 1 in year two)3. 2 policy briefs4. 1 compendium of good practices (developed in year1, and published in year 2)5. Possible dates of delivery in 20146. 1 Policy brief: first draft end of May, final draft end June/beginning July 7. Capacity building seminar: second part of the year (October 22-24 tbc)

• Case study review by OECD LEED (following the presentation at the EMCO Committee on 20th February by Dr Jonathan Potter OECD)

• Interest from MS: CZ, HU, LT, IT, DE, IE.

Inclusive entrepreneurship

What are we doing?•Support Entrepreneurship financially-> EaSI (new programme for Employment and Social Innovation (EaSI)•Investment Plan (“Juncker Plan”) – the European Fund for Strategic Investments

The new programme for Employment and Social Innovation (EaSI)

1.Design and implementation of employment and social reforms at European, national as well as regional and local levels by means of policy coordination, the identification, analysis and sharing of best practices.

2.919 million for the 2014-2020 period.

3.EaSI integrates and extends the coverage of :

• Progress (Programme for Employment and Social Solidarity),• EURES (European Employment Services)• and Microfinance and Social Entrepreneurship facilities,

EaSI - Microfinance and Social Entrepreneurship facilities

•Extends support provided to micro-credit providers under the current European Progress Micro-Finance Facility (EU budget + EIB)Some 193 million EUR for 2014-2020•Capacity building of micro-finance institutions: 8 million EUR for 2014-2020•Social Entrepreneurship development

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European Fund for Strategic Investment (EFSI)

EU guarantee

€ 16bn

Infrastructure & Innovation window

Long-term investments € 240 bn

SMEs and mid-cap firms € 75 bn

SME window

EFSI€ 21 bn

Total over 3 years: € 315 bn

EIB financing EIF financing

€ 5bn

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EFSI - SMEs and mid-cap window

SOURCES OF FUNDING

TYPICAL PRODUCTS OFFERED

Guarantees

European Fund for Strategic Investments

FINAL RECIPIENTS AND PROJECT

EXAMPLES

SMEe.g.

micro-loans to

a SME

Venture Capital

Growth finance

Securitisation

Mid-capcompany

e.g. equity in

a start-up

e.g. loans for R&D project

e.g. venture capital

for a

prototype

The Fund serves as

credit protection for new EIF activities

Other investors join in on a project

basis

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Key features of EFSI

Focus on investments in real economy Market-driven No political interference No geographic or sector pre-allocation

Economic viability

Additionality vs existing instruments

Higher risk-taking than EIB normal activity

Leverage / crowd-in private sector and third parties

Diversified portfolio (EU28, sectors, type of instruments)

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Status and next steps

Status• Political agreement by EU Institutions

reached end May, to be formalised by June.• Eight projects have already received EIB

pre-financing

Next steps• Project being submitted to EIB for EFSI

financing• EFSI and Advisory Hub operational Sep-Oct

2015• Investment Project Portal operational by

end 2015

Thank you for your attention – more information available:

http://ec.europa.eu/priorities/jobs-growth-investment/plan/index_en.htm

#investEU

Thank you!