1. 10. Financial Instruments: SelfieEmployment
Malta, June 14th 2017

2. ITALY SELFIEmployment a revolving Fund for youth self-employment

3. Table of Contents Summary Strategic context Ex-ante assessment
Design and set-up
Lesson learned, feedback and recommendations
State of implementation on May 24

4. Promoting employment and supporting labour mobility
Summary
Thematic
Objective 8
Key characteristics:
All regions in Italy (20 regions)
ESF OP, Thematic Objective 8
Fund Manager: Invitalia (Italy)
Microloans, Extended microloans, Small loans
Final beneficiaries: NEETs (young people Not in Employment, Education or Training)
The age range is years old
Financed through: YEI NOP, SPAO NOP, open to regional contribution
Total amount: EUR 103m (EUR 53m YEI NOP and EUR 50m SPAO NOP)
Promoting employment and supporting labour mobility

5. Strategic context Background
Regional ESF OPs
Abruzzo
Piemonte
Basilicata
Puglia
Calabria
Sardegna
Campania
Sicilia
Emilia-Romagna
Toscana
Friuli Venezia-Giulia
Trentino Alto Adige (Province of Trento and Province of Bolzano)
Lazio
Liguria
Umbria
Lombardia
Val D’Aosta
Marche
Veneto
Molise
Unemployment: 2015: EU 9,4%, Italy 11,9% 2017 (feb): EU 8%, Italy 11,5% Youth unemployment: 2015: EU 19,6%, Italy 40,3% 2017 (feb): EU 17,3%, Italy 35,2% NEET 2015: EU 21,7%, Italy 35,2% 2017 (feb): EU 21,5, Italy 32,9%
revised

6. Ex-ante assessment
Overview. Feedback on learning from process, no description of the content of the study

7. The ex-ante assessment showed that:
Market failure and unmet demand
The ex-ante assessment showed that:
a market failure exists in quantitative terms
NEET registered to YG aged and proxied by self-employment propensity
No measures specifically addressing NEET
Risk of cannibalization and crowding-out effect for NEET due to excessive fragmentation of resources
Need to address the demand with tailored and specific measures for promoting NEET self-employment initiatives
A FI fills a market gap without negatively affecting competition
The measure is complementary to existing financial instruments and training measures, not only within the YG scheme
Whole number of NEET able to be targeted only via a revolving mechanism
A FI at national level ensures a greater critical mass compared to its implementation at regional level
Overview. Feedback on learning from process, no description of the content of the study

8. Market assessment – Market failure, suboptimal investment
• 43% unemployment for under 25s (2014)
• NEETs: 26% of under 25s, 31% of under 29s
• NEETs cost EUR 32.6 bn, 2% of Italian GDP (2011)
• 16% of employed under 25 are self-employed (vs. EU 2.6%)
Financial instrument may fill the financing gap
Ex-ante assessment highlights lack of instruments for NEETs and estimates gap between supply and demand
Ex-ante assessment confirmed the financial instrument would not compete with public sector initiatives or “crowd out” private sector finance
Identification of market problems
Analysis gap between supply and demand
Quantification - methods and instruments used for collecting and analysis of the information, stakeholders consulted
Notes:
NEET in Italy is second highest in Europe, after Greece

9. Market assessment – Lessons learned Success factors and challenges
Self-employment and self-entrepreneurship measures are crucial to create new enterprises
No collateral required means easier access to finance
Revolving funds have longer duration
Combining financial and non-financial services is crucial
Stronger requirements for applicants helps select proposals
Overview past experience similar instruments
Main success factors / pitfalls of those past experiences
Using collected information to enhance performance envisaged FI

10. Design and set-up
Overview. Feedback on learning from process, no description of the content of the study

11. TIMELINE Begin of ex-ante assessment Completion of ex-ante assessment
Launch of the 1st call to final recipients
First disbursement to final recipients
July
2015
End of
2023
September 2016 a a a a a a a a
May
2015
December
2015
March 2016
October
2016
revised
MoU between MA and Invitalia
Amendments to selection criteria
Funding agreement
End of eligibility

12. National Microcredit Institute
Stakeholders
Managing Authority
Fund Manager
Chambers of Commerce
11 Italian Regions YEI +
20 Regions SPAO
Revised – to be further explained?
Different stakeholders involved (other ministries, financial intermediaries, project promotors, sector associations,…)
Engagement and commitment to work with FIs
National Microcredit Institute

13. Implementation structure
Key advantages
In-house agency meant fast implementation
Invitalia already manages national incentives for new enterprises and start-ups
Who is the financial intermediary?
An Italian Government in-house body with:
national territorial coverage (also through the Chambers of Commerce)
significant experience with microfinance
provides tutoring for 24 months (financed through NOP SPAO) for final recipients during start-up
has an on-line platform for similar financial instruments
Invitalia is responsible for:
Design and implementation of the managing platform
Application evaluation
Providing loans
Coordination and control
Management of loans
Tutoring
Argumentation, link with SWOT, as appropriate

14. Schematic overview Managing Authority: ANPAL YEI NOP SPAO NOP
Fund manager: Invitalia
Managing Authority: ANPAL
YEI NOP
EUR 53 million
SPAO NOP
EUR 50 million
SELFIEmployment financial instrument
Ente Nazionale per il Microcredito
Unioncamere and
Regions
Final recipient:
Businesses run by NEETs € €
Non financial services
Business Development Services

15. Non-financial services:
Schematic overview
Non-financial services:
Ente Nazionale Microcredit provides support with the proposal and technical aspects of the application
Business development services:
Invitalia provides tutoring service during the initial months
7.1 business skills training nationa level (Unioncamere)
7.1 business skills training regional level
Actions to be supported

16. Max reimbursement period
Financial products provided
The Investment Strategy follows directly from the results of the market analysis and lessons learnt 1
Microfinance within €
no guarantees required 2
Extended Microfinance between € and € no guarantees required
Small loans between € and € :
1° Tranche: Max 50% of the eligible expenditure
2° Tranche: Residual part of the eligible expenditure, at the completion of the expenditure plan 3
Actions to be supported
Max reimbursement period
7 years

17. Amendments to selection criteria
7.1 Strengthening entrepreneurial skills (business skills training) regional level
7.1 Strengthening entrepreneurial skills National level «Crescere Imprenditori» managed by Unioncamere
NEET autonomus without participating in 7.1 National / Regional
SELFIEmployment
Fund
ANPAL and INVITALIA
9 points reward
Through the project "National Microcredit Support Facility for the enhancement of access to the SELFIEmployment Fund", 60 branches have been activated to support the compilation of funding applications

18. Iter and Timing

19. State aid (final recipients)
Eligible initiatives: NEET Must have the age of 18
Individual companies, professional associations or companies constituted for no more than 12 months from the date of submission of the application provided that they are inactive;
Individual companies or companies not yet constituted, provided that they are constituted within 60 days of any admission procedure.
State aid (final recipients)
Under de minimis thresholds (Reg. 1407/2013)
Eligible sectors:
Tourism & HoReCa
Health care and social
ICT
Manufacturing
Renewable energies and energy efficiency
Service industry

20. Monitoring, control and reporting system in place for FIs (MA)
Monitoring Committee
Managing Authority i
Invitalia
Final recipients
Monitoring is crucial to track the performance of the financial instrument
Reports on: progress of the Investment Strategy, cofinanced activities, financial outputs
Reports are: Weekly, Quarterly, Annual
MA can audit the management system
Fund Manager carries out on the spot verifications on final recipient.
Revised
System, procedures, templates
Note reporting regulation - according to Reg. (EU) n. 1303/2013

21. Marketing and awareness raising
Support from Regions, Chambers of Commerce and Ente Nazionale Microcredito
Online and social media campaign
Workshops organised through the Regions
Tutorial video
#Crescereimprenditori initiative, promoted by Ministry of Labour and managed by Unioncamere
Overview of marketing strategy and product advertising amongst targeted final recipients - timing, TV, radio campaign, workshops and newspaper ads, etc.

22. Lesson learned, feedback and recommendations
Overview. Feedback on learning from process, no description of the content of the study

23. Lessons learned
SELFIEmployment better with stronger communication at municipality level (close to final recipients)
Southern regions presented many more applications than the rest of Italy
Regional network fundamental to success
Entire application procedure is on-line (saving time, helping monitoring)
Feedback
Final recipients found some difficulties when filling out the project application
Many applications rejected for lack of digital signature or attached documents
SELFIEmployment is a new financial instrument for targeted final recipients (new market)

24. For Managing Authority
Recommendations
For Managing Authority
More involvement of regions and municipalities would help raise awareness
Enhance communication: better when close to recipients (municipality level) and supported by local institutions
Strategical role of business development services
Difficulties in combining different forms of support
Need to clarify the eligibility criteria for the selected target groups
For Fund Manager
Simpler and smoother application procedure
Revised
Note on standardised common indicators - could reduce the complexity of the identification of those indicators

25. State of implementation on May 24
Overview. Feedback on learning from process, no description of the content of the study

26. N. Applications submitted
SELFIEmployment Fund
N. Applications submitted
1.361
N. test autovalutazione superati
N. Accepted
285
Loan amount
Microfinance
31%
Extended microfinance
24%
Small loans
45%
updating 24 may 2017

27. Funding by region
updating 24 may 2017

28. Type of activity funded
updating 24 may 2017

29. SELFIEMPLOYMENT: Successful cases
Business name: Twin recording di Fucito Angelo
Activity Description: Film post-production activities, video and television programs and organization of dubbing courses
Location: Puglia Region
Age: 29 years old
Product: microfinance
Loan amount: € ,72

30. SELFIEMPLOYMENT: Successful cases
Business name: Le Sissi
Activity Description: Digital evolution of handcraft tailoring: design application, which allows you to draft and sketch dress
Location: Veneto Region
Age: 28 years old
Product: microfinance
Loan amount: € ,00

31. Thank you!