P ROMOTING ENTREPRENEURSHIP IN EU POLICIES Olivier Coppens Journée “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 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 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 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 Initiative 3 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 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: new convention 1. Business creation by under-represented and disadvantaged groups 1.10 rapid policy assessments: 5 assessments in year one and 5 in year two 2.3 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 Social entrepreneurship 1.2 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 briefs 4.1 compendium of good practices (developed in year1, and published in year 2) 5.Possible dates of delivery in Policy brief: first draft end of May, final draft end June/beginning July 7.Capacity building seminar: second part of the year (October 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 million for the 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 Capacity building of micro-finance institutions: 8 million EUR for Social Entrepreneurship development

17 European Fund for Strategic Investment (EFSI) EU guarantee € 16bn 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

18 EFSI - SMEs and mid-cap window SOURCES OF FUNDING TYPICAL PRODUCTS OFFERED Guarantees European Fund for Strategic Investments FINAL RECIPIENTS AND PROJECT EXAMPLES SME e.g. micro- loans to a SME Venture Capital Growth finance Securitisation Mid-cap company 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

19 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)

20 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: ec.europa.eu/priorities/jobs- growth- investment/plan/index_en.htm #investEU

Thank you!