Enterprise and Industry Directorate General ERASMUS for Young Entrepreneurs Concept & Roles Marko Curavić Head of Unit Network Meeting – 28th-29th January 2010

Objectives and principles

What is the overall objective? “.. to facilitate exchange of experiences, learning and networking for new EU entrepreneurs through periods spent at SMEs of experienced entrepreneurs in other EU Member States.”

What is the specific objective? Fostering of Entrepreneurship Internationalisation Competitiveness of start-up entrepreneurs and newly established SMEs in the EU

- a European level Support Office (SO) - 32 European Partnerships European Commission in cooperation with - a European level Support Office (SO) - 32 European Partnerships - and 118 intermediary organisations (IOs) at national / regional level coordination support quality matching induction 1200 Host entrepreneurs in another EU Member State 1200 New entrepreneurs 1 – 6 months stay This scheme tells at least three things: There will be support for mobility of new entrepreneurs to existing entrepreneurs in another Member State. The stay should be between 1 and 6 months and can be done in a flexible way (min. 1 week within overall period of 1 year). The matching of new entrepreneurs and existing entrepreneurs should be done by intermediary organisations working closely together with the Support Office and the Commission There should be a mutual learning and exchange process between the new entrepreneurs and the existing entrepreneurs. Both should benefit from the activity new entrepreneurs benefit in particular in terms of knowledge, training and exchange of experience existing entrepreneurs/SME benefit in particular in terms of innovation transfer, partnership/networking and access to new markets Both benefit in terms of inter-cultural learning. Exchange of experiences, market access, networking, learning on the job

Roles & Methodology

Process model This scheme tells at least three things: There will be support for mobility of new entrepreneurs to existing entrepreneurs in another Member State. The stay should be between 1 and 6 months and can be done in a flexible way (min. 1 week within overall period of 1 year). The matching of new entrepreneurs and existing entrepreneurs should be done by intermediary organisations working closely together with the Support Office and the Commission There should be a mutual learning and exchange process between the new entrepreneurs and the existing entrepreneurs. Both should benefit from the activity new entrepreneurs benefit in particular in terms of knowledge, training and exchange of experience existing entrepreneurs/SME benefit in particular in terms of innovation transfer, partnership/networking and access to new markets Both benefit in terms of inter-cultural learning.

Relationship between IO, NE & HE INTERMEDIARY BODY FOR YOUNG ENTREPRENEURS FOR HOST HOST ENTREPRENEUR YOUNG Country A Country B This scheme tells at least three things: There will be support for mobility of new entrepreneurs to existing entrepreneurs in another Member State. The stay should be between 1 and 6 months and can be done in a flexible way (min. 1 week within overall period of 1 year). The matching of new entrepreneurs and existing entrepreneurs should be done by intermediary organisations working closely together with the Support Office and the Commission There should be a mutual learning and exchange process between the new entrepreneurs and the existing entrepreneurs. Both should benefit from the activity new entrepreneurs benefit in particular in terms of knowledge, training and exchange of experience existing entrepreneurs/SME benefit in particular in terms of innovation transfer, partnership/networking and access to new markets Both benefit in terms of inter-cultural learning.

Main Actors New entrepreneurs (NE) Host entrepreneurs (HE) Intermediary organisations (IO) European Partnerships (EP) European level Support Office (SO) European Commission (COM)  Relationships

The potential benefits for NEs Obtain a wider business experience from an established business; Develop international connections and knowledge about foreign markets; Benefit from possible co-venturing opportunities and the development of cross-border markets; Gain insights into a different cultural and organisational setting/workplace; Understand the regulatory framework in another EU country.

The potential benefits for HEs Work with a NE who has strong analytical and strategic skills Access new skills and innovative knowledge in the NE that an SME often does not have Work with a young fresh mind contributing new ideas and views Gain knowledge and intelligence about the foreign markets and an opportunity to internationalise the business; Explore an expansion of the business to a new country; Network with the other HEs as part of a dynamic European network of successful entrepreneurs.

Tasks for IOs Providing information to NEs Promotion and searching for HE Verification of applications from NEs and HEs Pro-active matching of the relationships Induction training for NEs in the country of origin Management of commitments & agreements Assistance on the practicalities /logistical support Administering financial assistance Ensuring high standards and evaluation feedback Organising active networking amongst IOs and “alumni” Reporting

Role of European Partnerships Organise and execute 30-50 successfully matched relationships each (of which 50 % with other partnerships) Lead IO represents the partnership Co-ordinate the administrative tasks for the IOs within the EP in particular the financial monitoring Provides first level help and guidance on day-to-day operation to the IOs Ensures quality, evaluation, reporting and active networking of all the IOs in the EP

Tasks of the Support Office Coordinate marketing and promotion Guidance and support to EPs/IOs Coordination and animation Operation of the central website Development of online training material Networking amongst IOs Reporting and monitoring Organising 3 Network Meetings in Brussels

Tasks of the European Commission Creation and Design Overall Coordination Financial and Budgetary Administration Contracts and Payments IT Tools development and operation Approval of individual relationships Program Evaluation and Improvement Future evolution

The 10 steps of a relationship 1. Applications from NE 2. Applications are checked by IO 3. HE states interest to participate 4. File is checked by IO 5. Matching of NE and HE by IOs 6. NE, HE and IOs establish agreements 7. NE does pre-departure induction 8. NE‘s IO deliver financial assistance 9. NE receives support from HE‘s IO 10. NE and IO submit reports

Financial framework parameters Maximum EU grant per EP € 140,000 Maximum amounts that may be paid to NEs €100,000 in total and €10,000 per each third party Maximum amount to NE per month of staying with the HE € 1100 Maximum amount to European partnerships for each successfully matched relationship €900 (of which €600 for EP of HE; €300 for EP of NE) Maximum rate of expenditure for services to financial assistance paid to NEs 50% Maximum amount to European partnerships for failed relationships €560 (of which €280 for each EP involved) The total budget of €2.85 million available for the call will be used to support around 20-23 European partnership projects and 1 Support Office. The remaining €150,000 will be used for horizontal tasks such as the evaluation of project proposals, database development and promotion/visualisation. The Commission’s grant for each selected European partnership will not more than €140,000 or 90% of eligible costs. The latter concerns expenses related to information, promotion, compiling applications, matching relationships, management of contracts, financial and logistical support to entrepreneurs etc. The maximum financial support to individual new entrepreneurs who go abroad is limited to €1100 per month. The maximum financial support European Partnerships can expect is €900 per successfully matched relationship.In case of an ‘inter-consortia relationship’ 2/3 of this amount goes to IO of the HE and 1/3 goes to the IO of the NE. The EP’s expenditure for information, promotion, matching, induction, etc. is limited to 50% of the amount they paid to NE. In case of a failed relationship EPs can expect a Commission support of max. €560. In case of an ‘inter-consortia relationship’ this is €280 for each participating EP.

Recommended amounts to NEs per month Country where the HE stays per month in € Belgium, Spain, Germany, Luxembourg, Netherlands 830 Bulgaria, Romania, Lithuania 560 Czech Republic, Poland, Latvia, Slovakia 610 Denmark 1100 Estonia, Hungary 670 Ireland, United Kingdom 1000 Greece, Portugal, Cyprus 780 France, Italy, Austria 900 Malta, Slovenia 720 Finland, Sweden 950 The total budget of €2.85 million available for the call will be used to support around 20-23 European partnership projects and 1 Support Office. The remaining €150,000 will be used for horizontal tasks such as the evaluation of project proposals, database development and promotion/visualisation. The Commission’s grant for each selected European partnership will not more than €140,000 or 90% of eligible costs. The latter concerns expenses related to information, promotion, compiling applications, matching relationships, management of contracts, financial and logistical support to entrepreneurs etc. The maximum financial support to individual new entrepreneurs who go abroad is limited to €1100 per month. The maximum financial support European Partnerships can expect is €900 per successfully matched relationship.In case of an ‘inter-consortia relationship’ 2/3 of this amount goes to IO of the HE and 1/3 goes to the IO of the NE. The EP’s expenditure for information, promotion, matching, induction, etc. is limited to 50% of the amount they paid to NE. In case of a failed relationship EPs can expect a Commission support of max. €560. In case of an ‘inter-consortia relationship’ this is €280 for each participating EP.