1 The role of IAPMEI in the support to SME and Promotion of Entrepreneurship Jaime Prudente Department for the Promotion of Innovation

2 IAPMEI was set up in 1975 to support the development of the portuguese industrial SME. Until today, it has been enlarging its scope of intervention, in response to the increasing challenges faced by the SME, particularly within the context of the European Union and market globalization. Today, it is a public institution with specific legal statute and administrative autonomy, being responsible for the implementation of policies laid down by the Ministry of Economy and Innovation. LEGAL STATUS

3 Promoting and facilitating a strong and sustainable participation of SMEs in creating national wealth, helping SMEs to overcome their internal difficulties and external influences IAPMEI Mission IAPMEI aims to create a favourable environment to foster entrepreneurial spirit and competitiveness

4 IAPMEI Vision To be a recognized centre of competences, able to promote top quality SME support services and focused on economic growth in an SME-friendly external environment IAPMEI is the main instrument for Micro and SME company economic policy

5 - Acting on market failures - Fostering integration of a broad range of different actors - Promoting a systemic approach to SME support services - Testing new methods and pre-market solutions IAPMEI as a “network point” IAPMEI scope - Industry, Trade, Services and Building sectors (excludes Tourism and Agro Food)

6 Porto Coimbra Braga Setúbal Lisboa Leiria Aveiro Viseu Covilhã Viana do Castelo Bragança Guarda Évora Faro

7 Networking approach Enterprise Development Network - Participation in the share capital of the companies - venture capital - mutual guarantee - Technological support - business innovation centres - science and technology parques - interface university/company - Incubators - innovation and technology transfer centres - technology centres

8 Networking Complementary external partnership: - other public agencies - enterprise associations - private foundations - universities

9 Intervention areas Services provided to companies in the following fields: - institutional facilitation and disbureaucratisation - initiatives with entrepreneurial value - information and technical assistance

10 Support during the life cycle of companies: - fostering entrepreneurial spirit and the creation of new businesses. - development of dynamic factors of competitiveness - support to company restructuring processes - facilitation in company dissolution processes.

11 Legal creation and dissolution of company: Creation of a National Network of Business Formalities Centres, gathering the services of 6 Ministries. Nowadays the management of this network is under the Secretariat for the Administrative Modernization

12 Incentives schemes Subsidies (refundable and non-refundable) - innovation and competitiveness - training and investment in qualified human resources - business development - restructuring processes - start-up projects

13 Improvement of financing schemes To promote SME access to alternative sources of financing: - venture capital - mutual guarantee - qualification of companies and entrepreneurial projects - protocols with the banks

14 Fostering competitiveness Follow-up/technical support - preparation of business plans and demand of financing (innovative projects) - specific training / coaching and consultancy - benchmarking and improvement programmes - inter firm co-operation (networking) - fostering entreprise practices (use of ICT, environment, social responsibility,…)

15 Technical assistance and technological innovation Through vocacional structures: - technological centres. - innovation centres and technology transfer centres. - incubators. - technology and science parks.

16 Enterprise profitability Co-ordination of governamental actions: - in company restructuring and revitalization processes - insolvency and bankruptcy processes (reduction of social costs).

17 Entrepreneurship is a crucial element for achieving the political objectives set at the European Council Meeting in Lisbon in 2000, where the European Union committed itself to becoming, within a decade, the most competitive and dynamic knowledge-based economy in the world. Entrepreneurship is a driver for economic growth, competitiveness and job creation. Furthermore, it can be a vehicle for personal development and can help resolve social issues. Entrepreneurship The increasing importance

18 Entrepreneurship is a dynamic process through which individuals identify systematically economic opportunities, and answer developing, producing and selling products and services. Entrepreneurship The Concept towards the concretization - of business ideas into new innovative companies towards the promotion of the entrepreneurial spirit - induction of the appearance of new managers and new entrepreneurs The approach

19 Profile of the new Portuguese entrepreneurs and startup projects During the last decade we have assisted to an evolution of the profile of: the would be entrepreneurs and entrepreneurs in terms of: More academic qualifications and scientific knowledge; More high qualified women entrepreneurs; Increasing number of team owners, against individual owners the startups projects More knowledge and technology based projects Entrepreneurship

20 IAPMEI tools to foster entrepreneurship, innovation and technology IAPMEI strategy embodies the stimulation of knowledge, entrepreneurship, innovation, technology, social responsibility, design, training, benchmarking and good practices, as well as enterprise co-operation Business Idea Exchange Market Empreenda and BioEmpreenda FINICIA Programme Training Programs (Gerir and InovJovem) Entrepreneurship

21 The aim is to identify good innovative business ideas, promoted by entrepreneurs with high level of education and good entrepreneurial capacity and put the owners of the ideas and know-how together with the owners of the investment means (equity capital, management capability, machinery and equipment, buildings, means of transportation, etc.), viewing their association for the start-up of new companies. The selected business ideas benefit from financial support to the making of their business plans Business Ideas Exchange Market The specific tolls

22 Empreenda is an annual national event that aims to bridge the contacts between entrepreneurs presenting innovative business ideas and venture capitalists, banks, business angels and other private investors. The main objectives are: To allow seed and early stage technology based companies to present themselves to investors; To increase the chances of project leaders and emerging entrepreneurs for effectively negotiate with potential investors; To foster the networking among companies, venture capitalists, business angels and entrepreneurship support agencies. Empreenda – Idea & Venture Fair The specific tolls

23 METHODOLOGY  The Programme allows to answer the entrepreneurs needs all long the start-up process, making available tools to support them during the critical phases of the creation of a new company.  The Programme provides a tailor-made support service. Departing from a standard framework, the support scheme is designed having in consideration the characteristics of the entrepreneur and the scope of project. The support scheme goes through high level assistance viewing the preparation or upgrade of their business plan, and support the start-up, consolidation and development of the new companies. Empreender+ Programme The specific tolls

24 EMPREENDER+ Programme Objective To foster the revitalization of the Portuguese Enterprise Structure, promoting the appearance of new managers and the start-up of new companies, in strategic sectors with high growth potential and great innovation, towards the establishment of a knowledge- based economy. To reach this objective the Programme makes available a set of integrated tools viewing to qualify the entrepreneurs and their start-up projects The specific tolls

25 Objectivo Systematic realization of events near the universities, R&D centres, technology transfer centres, regional development agencies, enterprise associations…, promoting entrepreneurship and innovation 2.Identification and selection of business ideas Through the Regional Platforms Network – 14 entities that integrate each of them (Universities, R&D centres, technology transfer centres, regional development agencies, Venture Capital Companies, Business Angels Clubs and enterprise associations). EMPREENDER+ Programme 1.Promotion of entrepreneurship and innovation ACTIVITIES The specific tolls

26  Evaluation and development of entrepreneurial capacity;  Training for development of management and marketing skills;  Mentoring and coaching EMPREENDER+ Programme 3.Reinforcement of personal skills 4.Project making off  Virtual incubation - business oriented information, technology assessment and support to writing the business plan;  Support to physical incubation. ACTIVITIES (cont.) The specific tolls

27  Empreenda - Idea & Venture Fairs EMPREENDER+ Programme 5.Projects finance Annual national event that aims to bridge the contacts among excellent scientific, technological and management education entrepreneurs presenting fast growth business ideas and venture capitalists, banks, business angels and other private investors. In 2008 we started the organization of sectorial Idea & Venture Fairs. BioEmpreenda’08 (Idea & Venture Fair for Biotech and Life Sciences Projects took place in May 2008, with 140 Business meetings ACTIVITIES (cont.) The specific tolls

28 EMPREENDER+ Programme More than hours of technical assistance (training, consultancy, mentoring and coaching), provided by over than 160 experts; More than 500 business ideas identified and supported More than 50 innovative companies created More than 35 technology based companies More than 200 qualified jobs created Results (last five years) The specific tolls

29 Financial engineering instrument for the support of the start-up and early stage development of the new innovative companies. Venture Capital + Mutual Guarantee + Micro credit Structure Axle 1- HTGH start-ups projects with investment up to 2,5 M€ Axle 2 - Innovative small projects with investment up to 250 thousand € Axle 3 – Regional micro projects up to 45 thousand € FINICIA Programme The specific tolls

30  Last development (2009)  Creation of the Axle 0 – Support to R&D projects in pre-seed capital and proof of concept phases (Innovation Investment Fund / FEI)  FINICIA Axle 0 will operate in articulation with a Portuguese TTA structure (in development) FINICIA Programme The specific tolls

31 GEM Programmes and initiatives carried by IAPMEI and the other agents of the Entrepreneurship Brokers Network contribute for the recent development of Entrepreneurship in Portugal. The 2007 edition GEM-Global Entrepreneurship Monitor *, the most important world study on entrepreneurship, stresses: The Early Stage Rate, in Portugal is now 8,8 % - the double than in 2004 and the highest inside EU; The most relevant aspects for the promotion of Entrepreneurship in Portugal are the access to physical infrastructures (roads, communications, incubators…) and the social and cultural mind opening to innovation and change * Babson College and London School

32 Final Reflexions Entrepreneurship is a responsibility of the society (of all economic agents) Inducing behaviors towards the systematic innovation; Create dynamics viewing the life long learning. Acelerate the modernization process Acelalerate the growth process The public agencies like IAPMEI must be the drivers and facilitators of process of inclusion of entrepreneuship in the economic activities, but also in the school and the individual atitude. To stimulate de entrepreneurial spirit:

33 Conclusions Economic development and growth - the main challenges of Portugal Entrepreneurial and innovation cultures - a key priority for private and public actors Constrains to change Entrepreneurial Culture Historical behavior Low level of patent submissions Fifty years of closed industrial framework Culture is a set of stainable strategies that passes from one generation to another