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Employability, self-employment and entrepreneurship
Entrepreneurship is when you act upon opportunities and ideas and transform them into value for others. The value that is created can be financial, cultural, or social
(Moberg and Stenberg, 2012)
Often people think that being a successful entrepreneur means transforming the world by solving big problems i.e. initiating social change, creating an innovative product or presenting a new life-changing solution
This is not true and can be misleading
Entrepreneurship does not need to take the form of a revolutionary product, business or concept
You don’t need to be a brilliant thinker or a visionary to become an entrepreneur
Entrepreneurship means to be able to take the first step into making your own life better, and not necessarily to tackle big issues and make the entire world a better place
What really matters to be an entrepreneur is not to have the most striking idea but to meet a demand in the market
You can become a successful entrepreneur if you are able to identify people’s unsatisfied needs and satisfy them
People also think that:
•Entrepreneurship requires large investment
Actually, an entrepreneurial activity can also deal with cultural or social issues that are in no way linked to profit or do not need huge investments
Further, being an entrepreneur does not always mean having a better work-life balance since:
Entrepreneurship is not necessarily a profit-oriented activity
Indeed, a Social Business is aimed at developing, funding and implementing solutions to social, cultural, or environmental issues
Muhammad Yunus (2009) defined a Social Business as a business:
A Social Business is aimed at increasing social impact of its operations so it reivests profit in:
The main goal of a Social Business is not to maximise profits (although generating profits is desired) but to maximise the social impact
Furthermore, business owners are not receiving any dividend out of the business profits, if any
Social Business differs from a non-profit business because it is not dependent on donations or on private or public grants
Indeed, as any other business, it is self-sustainable because it is able to generate profits
Profits are reinvested in social actions to increase and improve the business’ operations and not distributed to shareholders
Irrespective of the field of activity, sector, type of business and location the entrepreneur needs a series of capacities and attitudes that make him/her the right person not only to start the business but to run it and to manage it in the long run
Capacity of an entrepreneur:
•Sense of initiative
Capacity of an entrepreneur:
•Independence/autonomy
Capacity of an entrepreneur:
•Creativity
Other important things to remember about entrepreneurship:
It can involve a new product, service or even a process not necessarily profit-oriented (social business)
It can be oriented to:
It can start from an already existing idea:
It is beneficial to have an expertise in certain field, industry, market as one is better equipped to notice opportunities in these areas and come up with solutions
The initial idea or value proposition may and will change throughout the process:
•To be successful is fundamental to evolve the idea and the business around it
The missing entrepreneurs are all those people at risk of exclusion from the labour market due to their belonging to specific disadvantaged and under-represented groups, such as:
It’s important to equip them with more skills and experience to increase their level of labour market activity
Public bodies make specific support available to them through:
The European Union launched in 2017 the European Pillar of Social rights
It is aimed at delivering new and more effective rights to EU citizens
It is structured in 20 key principles divided in three categories:
I. Equal opportunities and access to the labour market
II. Fair working conditions
III. Social protection and inclusion
The aim of the European Pillar of Social Rights is to respond to current and future challenges which are directly aimed at fulfilling people’s essential needs, and towards ensuring better enactment and implementation of social rights
It expresses principles and rights essential for fair and well-functioning labour markets and welfare systems in 21st century Europe
The European Pillar of Social Rights has the objective to deliver a set of rights to help reaching full employment, social progress and equity within the Union
These will result in better working conditions for disadvantaged and under-represented groups, including adult low skilled women
The European Pillar for Social Rights implementation is a joint responsibility of the EU, Member States and all relevant stakeholders (social actors, third sector etc.)
Member States are called to implement it within their competences and taking into account the different socio-economic situation and the diversity of national systems
For further information about the European Pillar for Social Rights:
https://ec.europa.eu/commission/priorities/deeper-and-fairer-economic-and-monetary-union/european-pillar-social-rights_en
At national level, a number of public policies exist to assist former employees after displacement, to support entrepreneurship and to tackle unemployment:
• Active labour market programmes: job search assistance, training etc.
• Passive labour market programmes: extension of unemployment benefit
• Structural reforms that stimulate labour demand
After displacement, former employees can take several decisions:
• Leave the labour market
A former employee that wishes to start a business can decide to:
• Buy the firm or a department/unit
Before starting a new business one should always keep in mind that public policies can influence business creation in either positive or negative way
In particular, the law can set a number of administrative and legal requirements that can make harder (or easier) the business creation process
Usually, public bodies support the establishment of a new business by disadvantaged groups (women, adults, disabilities etc.)
Public policy barriers to business creation and entrepreneurship
• Direct entry barriers: can restrict/prohibit entry in specific economic sectors (necessity to acquire licenses or permits)
Public policy assistance to business creation and entrepreneurship
• Direct incentives: increased opportunities for competition
A new Job Act (2015) was passed to give self-employed workers more security. In particular:
• It hindered the possibility of misusing self-employment contractual forms (i.e. contracts of continuous and coordinated collaboration and contracts based on projects)
The law established a service of consultancy and assistance for grassroots entrepreneurial or business initiatives, made available to employees that are about to be fired
• Employers are required by law to notify the local employment agency at least 30 days before informing employees that they are going to be fired
To promote and support entrepreneurship EU provides key support networks, tools and resources
1.The Portal - aims to give SMEs clear and easy access to the broad range of existing public services. Presently, 35 target markets around the world are covered. It includes a useful Market Access Database – that is free, open to the public and contains some 300 service providers that cover approximately 1200 support services
https://ec.europa.eu/growth/tools-databases
To promote and support entrepreneurship EU provides key support networks, tools and resources
2.The European Cluster Collaboration Platform, focusing on supporting internationalisation of European Businesses and SMEs
https://www.clustercollaboration.eu/
http://een.ec.europa.eu/
http://ec.europa.eu/small-business/index_en.htm
Tools include:
http://een.ec.europa.eu/
The “Database”
Tools include:
http://een.ec.europa.eu/content/events-0
Created by DG Growth:
http://ec.europa.eu/DocsRoom/documents/21750
https://www.clustercollaboration.eu/international-cooperation
Export of products or services to new markets
http://een.ec.europa.eu/
Established under the EU programme COSME
Divided into 8 main sections:
The ESF helps entrepreneurs and the self-employed in many ways, including support for training in basic management, legal and financial skills for setting up a business
Growth by Leadership
(Denmark, 2012-2015)
http://ec.europa.eu/esf/main.jsp?catId=46&langId=en&projectId=2879
The ESF funds projects that are helping millions of people looking for work to find a job. In addition, ESF help puts a particular focus on those who find it more difficult to get a job than others for a variety of reasons, for example because their skills are outdated or because they have no qualifications
A way out of the unemployment circle
(Slovak Republic, 2015-2018)
http://ec.europa.eu/esf/main.jsp?catId=46&langId=en&projectId=2860
More information about ESF projects in your country:
http://ec.europa.eu/esf/main.jsp?catId=45&langId=en
Fixing key concepts...
What is entrepreneurship
WHAT IS ENTREPRENEURSHIP
Entrepreneurship is when you act upon opportunities and ideas and transform them into value for others. The value that is created can be financial, cultural, or social
(Moberg and Stenberg, 2012)
Often people think that being a successful entrepreneur means transforming the world by solving big problems i.e. initiating social change, creating an innovative product or presenting a new life-changing solution
This is not true and can be misleading
Entrepreneurship does not need to take the form of a revolutionary product, business or concept
You don’t need to be a brilliant thinker or a visionary to become an entrepreneur
Entrepreneurship means to be able to take the first step into making your own life better, and not necessarily to tackle big issues and make the entire world a better place
What really matters to be an entrepreneur is not to have the most striking idea but to meet a demand in the market
You can become a successful entrepreneur if you are able to identify people’s unsatisfied needs and satisfy them
People also think that:
•Entrepreneurship requires large investment
Actually, an entrepreneurial activity can also deal with cultural or social issues that are in no way linked to profit or do not need huge investments
Further, being an entrepreneur does not always mean having a better work-life balance since:
SOCIAL ENTREPRENEURSHIP
Entrepreneurship is not necessarily a profit-oriented activity
Indeed, a Social Business is aimed at developing, funding and implementing solutions to social, cultural, or environmental issues
Muhammad Yunus (2009) defined a Social Business as a business:
A Social Business is aimed at increasing social impact of its operations so it reivests profit in:
The main goal of a Social Business is not to maximise profits (although generating profits is desired) but to maximise the social impact
Furthermore, business owners are not receiving any dividend out of the business profits, if any
ENTREPRENEURSHIP vs SOCIAL ENTREPRENEURSHIP
Social Business differs from a non-profit business because it is not dependent on donations or on private or public grants
Indeed, as any other business, it is self-sustainable because it is able to generate profits
Profits are reinvested in social actions to increase and improve the business’ operations and not distributed to shareholders
WHAT IS NEEDED TO BE AN ENTREPRENEUR
Irrespective of the field of activity, sector, type of business and location the entrepreneur needs a series of capacities and attitudes that make him/her the right person not only to start the business but to run it and to manage it in the long run
Capacity of an entrepreneur:
•Sense of initiative
Capacity of an entrepreneur:
•Independence/autonomy
Capacity of an entrepreneur:
•Creativity
ENTREPRENEURSHIP FEATURES
Other important things to remember about entrepreneurship:
It can involve a new product, service or even a process not necessarily profit-oriented (social business)
It can be oriented to:
It can start from an already existing idea:
It is beneficial to have an expertise in certain field, industry, market as one is better equipped to notice opportunities in these areas and come up with solutions
The initial idea or value proposition may and will change throughout the process:
•To be successful is fundamental to evolve the idea and the business around it
The missing entrepreneurs
THE MISSING ENTREPRENEURS
The missing entrepreneurs are all those people at risk of exclusion from the labour market due to their belonging to specific disadvantaged and under-represented groups, such as:
It’s important to equip them with more skills and experience to increase their level of labour market activity
Public bodies make specific support available to them through:
EU SUPPORT TO MISSING ENTREPRENEURS
The European Union launched in 2017 the European Pillar of Social rights
It is aimed at delivering new and more effective rights to EU citizens
It is structured in 20 key principles divided in three categories:
I. Equal opportunities and access to the labour market
II. Fair working conditions
III. Social protection and inclusion
The aim of the European Pillar of Social Rights is to respond to current and future challenges which are directly aimed at fulfilling people’s essential needs, and towards ensuring better enactment and implementation of social rights
It expresses principles and rights essential for fair and well-functioning labour markets and welfare systems in 21st century Europe
The European Pillar of Social Rights has the objective to deliver a set of rights to help reaching full employment, social progress and equity within the Union
These will result in better working conditions for disadvantaged and under-represented groups, including adult low skilled women
The European Pillar for Social Rights implementation is a joint responsibility of the EU, Member States and all relevant stakeholders (social actors, third sector etc.)
Member States are called to implement it within their competences and taking into account the different socio-economic situation and the diversity of national systems
For further information about the European Pillar for Social Rights:
https://ec.europa.eu/commission/priorities/deeper-and-fairer-economic-and-monetary-union/european-pillar-social-rights_en
NATIONAL SUPPORT TO ENTREPRENURSHIP
At national level, a number of public policies exist to assist former employees after displacement, to support entrepreneurship and to tackle unemployment:
• Active labour market programmes: job search assistance, training etc.
• Passive labour market programmes: extension of unemployment benefit
• Structural reforms that stimulate labour demand
After displacement, former employees can take several decisions:
• Leave the labour market
A former employee that wishes to start a business can decide to:
• Buy the firm or a department/unit
Before starting a new business one should always keep in mind that public policies can influence business creation in either positive or negative way
In particular, the law can set a number of administrative and legal requirements that can make harder (or easier) the business creation process
Usually, public bodies support the establishment of a new business by disadvantaged groups (women, adults, disabilities etc.)
Public policy barriers to business creation and entrepreneurship
• Direct entry barriers: can restrict/prohibit entry in specific economic sectors (necessity to acquire licenses or permits)
Public policy assistance to business creation and entrepreneurship
• Direct incentives: increased opportunities for competition
REAL-LIFE EXAMPLE: GREECE
REAL-LIFE EXAMPLE: ITALY
A new Job Act (2015) was passed to give self-employed workers more security. In particular:
• It hindered the possibility of misusing self-employment contractual forms (i.e. contracts of continuous and coordinated collaboration and contracts based on projects)
REAL-LIFE EXAMPLE: ROMANIA
The law established a service of consultancy and assistance for grassroots entrepreneurial or business initiatives, made available to employees that are about to be fired
• Employers are required by law to notify the local employment agency at least 30 days before informing employees that they are going to be fired
REAL-LIFE EXAMPLE: SLOVAK REPUBLIC
REAL-LIFE EXAMPLE: SPAIN
EU opportunities for entrepreneurship and self-employability
EU SUPPORT SYSTEM TO ENTREPRENEURSHIP
To promote and support entrepreneurship EU provides key support networks, tools and resources
1.The Portal - aims to give SMEs clear and easy access to the broad range of existing public services. Presently, 35 target markets around the world are covered. It includes a useful Market Access Database – that is free, open to the public and contains some 300 service providers that cover approximately 1200 support services
https://ec.europa.eu/growth/tools-databases
To promote and support entrepreneurship EU provides key support networks, tools and resources
2.The European Cluster Collaboration Platform, focusing on supporting internationalisation of European Businesses and SMEs
https://www.clustercollaboration.eu/
http://een.ec.europa.eu/
http://ec.europa.eu/small-business/index_en.htm
1. THE “INTERNATIONALISATION PORTAL”
Tools include:
http://een.ec.europa.eu/
The “Database”
Tools include:
http://een.ec.europa.eu/content/events-0
2. THE “EUROPEAN CLUSTER COLLABORATION PLATFORM”
Created by DG Growth:
http://ec.europa.eu/DocsRoom/documents/21750
https://www.clustercollaboration.eu/international-cooperation
3. THE “ENTERPRISE EUROPE NETWORK SUPPORTS”
Export of products or services to new markets
http://een.ec.europa.eu/
4. YOUR EUROPE BUSINESS PORTAL
Established under the EU programme COSME
Divided into 8 main sections:
EUROPEAN SOCIAL FUND (ESF)
Boosting business
The ESF helps entrepreneurs and the self-employed in many ways, including support for training in basic management, legal and financial skills for setting up a business
Growth by Leadership
(Denmark, 2012-2015)
http://ec.europa.eu/esf/main.jsp?catId=46&langId=en&projectId=2879
2. Opening pathways to work
The ESF funds projects that are helping millions of people looking for work to find a job. In addition, ESF help puts a particular focus on those who find it more difficult to get a job than others for a variety of reasons, for example because their skills are outdated or because they have no qualifications
A way out of the unemployment circle
(Slovak Republic, 2015-2018)
http://ec.europa.eu/esf/main.jsp?catId=46&langId=en&projectId=2860
Who to contact about ESF support and activities
More information about ESF projects in your country:
http://ec.europa.eu/esf/main.jsp?catId=45&langId=en
EU FINANCIAL INSTRUMENTS FOR SMES