The missing entrepreneurs 2015 : policies for self-employment and entrepreneurship

196 Pages·2015·7.143 MB·English

by  OECD

The Missing Entrepreneurs 2015
POLICIES FOR SELF-EMPLOYMENT AND ENTREPRENEURSHIP
This publication examines how public policies at national, regional and local levels can support job creation The Missing Entrepreneurs
by encouraging business start-ups and self-employment by people from disadvantaged or under-represented
social groups. It shows that there is substantial potential to combat unemployment and stimulate social
2015
inclusion by promoting entrepreneurship in populations such as women, youth, seniors, the unemployed, and
migrants, if the specifi c problems they face can be addressed and if entrepreneurship policies are opened
up to all. Policy discussion in this report focusses on supporting business growth and developing effective
coaching and mentoring programmes, and offers the inspiration of existing good practices from across the POLICIES FOR SELF-EMPLOYMENT
European Union.
AND ENTREPRENEURSHIP
Contents
Executive summary
Reader’s guide
Chapter 1. Inclusive entrepreneurship policy in the European Union
Part I. Inclusive entrepreneurship in Europe – activity rates and barriers T
h
Chapter 2. Self-employment and entrepreneurship by women e
M
Chapter 3. Self-employment and entrepreneurship by youth
is
Chapter 4. Self-employment and entrepreneurship by seniors s
Chapter 5. Self-employment and entrepreneurship by the unemployed in
g
Chapter 6. Self-employment and entrepreneurship by the foreign-born E
n
Part II. Policies for inclusive entrepreneurship tr
e
Chapter 7. Supporting business growth among entrepreneurs from under-represented and disadvantaged p
r
groups e
n
Chapter 8. E ffective coaching and mentoring for entrepreneurs from under-represented and disadvantaged e
u
groups rs
2
Part III. Country profi les: Policy examples and key inclusive entrepreneurship data 0
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Consult this publication on line at http://dx.doi.org/10.1787/9789264226418-en. S
H
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ISBN 978-92-64-22638-8
84 2015 01 1 P

The Missing
Entrepreneurs 2015
Policies for self-emPloyment
and entrePreneurshiP
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Please cite this publication as:
oecd/european union (2015), The Missing Entrepreneurs 2015: Policies for Self-employment and
Entrepreneurship, oecd Publishing, Paris.
http://dx.doi.org/10.1787/9789264226418-en
isBn 978-92-64-22638-8 (print)
isBn 978-92-64-22641-8 (Pdf)
european union
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Preface
Preface
T
he economic crisis has left us with a number of challenging legacies, including high
unemployment – particularly for youth. In many European countries, youth unemployment averages
around twice the adult rates. Other groups are also affected. Women, immigrants and seniors all
have higher levels of labour market inactivity or poorer labour market outcomes. OECD projections
suggest that these challenges are unlikely to be resolved soon.
We need an “all on board” approach to ensure a future built on both inclusion and growth. The
OECD’s Inclusive Growth initiative has pinpointed a number of policy areas that can achieve this,
including skills and entrepreneurship. This book focuses on inclusive entrepreneurship, i.e. ensuring
that people from all backgrounds have the opportunity to start up in business or self-employment.
Government policy can help people who are unemployed or disadvantaged in the labour market
to create their own jobs by helping them gain entrepreneurship skills and motivations, access to
finance and entrepreneurial networks so that they can have a chance to create their own job. At the
same time, it is important that policy makers complement such efforts by continuing to support the
development of entrepreneurial attitudes and culture.
The book provides data on rates of entrepreneurship and self-employment by women, youth,
seniors, the unemployed and the foreign-born in European Union countries and the nature of the
barriers they face. It also examines two key policy themes, namely the potential of entrepreneurs
from disadvantaged and under-represented groups to create strong, growth-oriented businesses and
the keys to designing effective entrepreneurship coaching and mentoring schemes for disadvantaged
groups.
There is evidence that policies for inclusive entrepreneurship can work. But we must be careful in
maintaining reasonable expectations. Entrepreneurship is not a suitable activity for everybody and it
will not resolve all of the labour market challenges in the European Union. The cost of doing nothing,
however, is extraordinarily high, and the opportunity should be seized to boost entrepreneurship and
self-employment support in the tools used by governments to promote labour market participation.
I would like to thank the Directorate General for Employment, Social Affairs and Inclusion of the
European Commission for partnering with the OECD on this important project and hope that policy
makers at the national, regional and local levels use the policy advice in this book while they are
designing and delivering actions to promote and support inclusive entrepreneurship.
stefan Kapferer,
acting director, centre for entrepreneurship,
smes and local development, and deputy secretary-General
of the organisation for economic co-operation and development
the missinG entrePreneurs 2015: Policies for self-emPloyment and entrePreneurshiP © oecd/euroPean union 2015 3
Preface
In June 2015, more than 23 million people were unemployed in the European Union and half
of them have been unemployed for more than one year. Job creation is clearly a top priority for the
EU and its Member States, and entrepreneurship is one of the most promising ways to create jobs.
The European Union strongly supports the development of entrepreneurship across all the
population. The Europe 2020 Strategy recognises entrepreneurship and self-employment as critical
levers for achieving smart, sustainable and inclusive growth, and several flagship European Union
initiatives explicitly support entrepreneurship, including the Agenda for New Skills and Jobs, Youth
on the Move and the European Platform Against Poverty and Social Exclusion. This strategy is
further reinforced by the Entrepreneurship 2020 Action Plan.
As we move into the new programming period 2014-20, we must not overlook some of the key
structural funds available to deliver these initiatives. The European Social Fund (ESF) is available
to support entrepreneurship and self-employment through the thematic objective of promoting
sustainable and quality employment and supporting labour mobility. European Union countries can
use the ESF to co-finance entrepreneurship training programmes and to build an entrepreneurship
support infrastructure. An extremely important initiative for the new programming period is the
Youth Employment Initiative (YEI), which includes the Youth Guarantee. This initiative offers
additional funds for efforts, including self-employment initiatives, to help young people enter the
labour market in the regions hit hardest by youth unemployment.
However, as of now, Member States are not taking full advantage of the European Union and
national resources available and are under-exploiting the potential of the entrepreneurship component
of their active labour market policies. It is my hope that this book increases awareness amongst policy
makers about the various approaches that can be taken to promote inclusive entrepreneurship. The
book, produced in partnership with the OECD, provides an evidence base and a source of inspiration
for policy makers. I encourage them to use the policy guidance and recommendations when designing
and implementing inclusive entrepreneurship projects, and to use the policy examples as a source of
inspiration.
Finally, I would like to thank the OECD for their partnership on this very important work
programme.
michel servoz,
director-General,
directorate General for employment,
social affairs and inclusion, european commission
4 the missinG entrePreneurs 2015: Policies for self-emPloyment and entrePreneurshiP © oecd/euroPean union 2015
acKnowledGements
Acknowledgements
t
his is the third report from an on-going collaboration on inclusive entrepreneurship
policies in europe between the local economic and employment development (leed)
Programme in the centre for entrepreneurship, smes and local development of the oecd
and the directorate General for employment, social affairs and inclusion of the european
commission.
the report was prepared and edited under the direction of Jonathan Potter, senior
economist at the oecd centre for entrepreneurship, smes and local development. he
was supported by david halabisky, economist in the leed Programme of the oecd, who
undertook substantial drafting and editing and co-ordinated written inputs from various
contributors.
material was drafted by the following oecd secretariat members and external experts:
david deakins, david halabisky, Jonathan Potter, stuart thompson, and Karl wennberg.
additional inputs were prepared by sergio destefanis, nadine levratto and Kerstin wilde.
the report benefited from comments and inputs from the european commission,
directorate General for employment, social affairs and inclusion. Key contributions were
made by ciprian alionescu, Jayson dong, Guy lejeune, andrea maier, frédéric merméty,
michal Petrik and mindaugas Veromejus.
the oecd established a steering group to guide the publication made up of carin
holmquist, david smallbone and friederike welter, who also provided valuable comments
and suggestions.
Key data contributions were received from niels Bosma and Jonathan levie of the
Global entrepreneurship research association.
a number of country correspondents provided input for the policy descriptions in Part
iii of this report, namely: rocky adiguna, leonie Baldacchino, inga Blaziene, lucie Bucˇinová,
anca dodescu, Paula fitzsimmons, denise fletcher, João Gonçalves, elias hadjielias, stefan
hardonk, eva heckl, carin holmquist, michael holz, annemarie Jepsen, marina Kaas,
dimitris Karantinos, teemu Kautonen, nadine levratto, francisco liñán, augusto medina,
anna Pilková, Panikkos Poutziouris, shirley Pulis Xerxen, olga rastrigina, Petra reszketo˝,
Paolo rosso, slavica singer, Karin Širec, Jacqueline snijders, douglas thompson, Kiril
todorov, Katarzyna trojnarska, amber van der Graaf, elisa Veronesi and friederike welter.
the missinG entrePreneurs 2015: Policies for self-emPloyment and entrePreneurshiP © oecd/euroPean union 2015 5

taBle of contents
Table of contents
Executive Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Reader’s Guide. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Chapter 1. Inclusive entrepreneurship policy in the European Union . . . . . . . . . . . . . 23
what is inclusive entrepreneurship policy? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
why is inclusive entrepreneurship policy important?. . . . . . . . . . . . . . . . . . . . . . . . . 25
a roadmap for reading this publication. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
references . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
PART I
Inclusive entrepreneurship in Europe – activity rates and barriers
Chapter 2. Self-employment and entrepreneurship by women. . . . . . . . . . . . . . . . . . . 31
self-employment activities by women. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
activities by women over the entrepreneurship life-cycle . . . . . . . . . . . . . . . . . . . . . 37
hours worked by self-employed women . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
self-employment earnings for women. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
entrepreneurship skills as a barrier to business creation for women. . . . . . . . . . . . 47
references . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Chapter 3. Self-employment and entrepreneurship by youth . . . . . . . . . . . . . . . . . . . . 49
self-employment activities by youth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
self-employment activities by youth over the entrepreneurship life-cycle . . . . . . . 54
entrepreneurship skills as a barrier to business creation for youth . . . . . . . . . . . . . 57
references . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Chapter 4. Self-employment and entrepreneurship by seniors . . . . . . . . . . . . . . . . . . . 59
self-employment activities by seniors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
activities by seniors over the entrepreneurship life-cycle . . . . . . . . . . . . . . . . . . . . . 64
entrepreneurship skills as a barrier to business creation for seniors . . . . . . . . . . . . 68
references . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
the missinG entrePreneurs 2015: Policies for self-emPloyment and entrePreneurshiP © oecd/euroPean union 2015 7
Table of conTenTs
Chapter 5. Self-employment and entrepreneurship by the unemployed 71
seeking self-employment from unemployment 72
entering self-employment from unemployment 75
references 76
Chapter 6. Self-employment and entrepreneurship by the foreign-born 77
self-employment among the foreign-born 78
references 80
PART II
Policies for inclusive entrepreneurship
Chapter 7. Supporting business growth among entrepreneurs
from under-represented and disadvantaged groups 83
The growth potential of entrepreneurs from under-represented and
disadvantaged groups 84
factors that influence growth 86
policy support for growth for entrepreneurs from under-represented and
disadvantaged groups 91
delivering schemes that support growth 101
conclusions and policy recommendations 102
references 103
Chapter 8. Effective coaching and mentoring for entrepreneurs
from under-represented and disadvantaged groups 107
The nature and definition of coaching and mentoring 108
The benefits of coaching and mentoring 110
policy approaches to providing coaching and mentoring for entrepreneurs from
under-represented and disadvantaged groups 111
Keys to the effective design of coaching and mentoring schemes
for entrepreneurs from under-represented and disadvantaged groups 120
conclusions and policy recommendations 123
references 124
PART III
Country profiles: policy examples and key inclusive entrepreneurship data
austria: der Mikrokredit (“Microcredit”) 130
belgium: hazo vzw 132
bulgaria: The entrepreneurship development network (edn) 134
croatia: project a c T i V e – activity and creativity Through ideas
and Ventures = employment 136
cyprus: agrotoepixeirein: strengthening youth and female entrepreneurship
in rural areas 138
8 The Missing enTrepreneurs 2015: policies for self-eMployMenT and enTrepreneurship © oecd/european union 2015