1. Stimulation of self-employment by public employment services. Ege Jaanso Estonian Unemployment Insurance Fund 2014

2. Labour market situation 17.08.20152Eesti Töötukassa

3. Rate of registered unemployment in labour force 17.08.2015Eesti Töötukassa3

4. Estonian Unemployment Insurance Fund  …is an independent public body - tripartite management (social partners and government)  Founded in 2001 to administer unemployment insurance  Since 1 May 2009 also in the role of employment services  Central office and 15 regional offices (ca 500 employees) 17.08.20154Eesti Töötukassa

5. 17.08.2015Eesti Töötukassa5

6. History  Business start-up grants for the unemployed were introduced in Estonia already in 2000. However, in 2010 Estonian PES launched a service package to encourage more unemployed to create their own job by starting a business for themselves. The service package is open to registered unemployed as well as redundant employees and it includes: 1) Business training programme 2) Business plan counselling 3) Business start-up grant up to 4474 EUR. 4) Mentor clubs 5) Further training and individual counselling costs 17.08.2015Eesti Töötukassa6

7. Business start-up subsidy  Intended to provide financial help for unemployed people to start a new business and create jobs for themselves  The maximum amount – 4474 EUR  The subsidy is granted to cover expenses that are realistic and indispensable to start a business activity. 17.08.20157Eesti Töötukassa

8. Who are eligible for business start-up grant  Registered unemployed people as well as jobseekers who have received the redundancy notice and  who are at least 18 years old  who have completed business training or have vocational or higher education in economics or previous experience in business 17.08.2015Eesti Töötukassa8

9. Basis for application 2011-2012 17.08.2015Eesti Töötukassa9

10. Business training  The EUIF clients can, if needed, enroll in a business training programme purchased by the EUIF.  This business training that lasts up to 120-160 academic hours and includes teaching participants how to develop a good business plan. 17.08.2015Eesti Töötukassa10

11. Business plan  On the web site of EUIF the support material for writing a business plan can be found, which is useful in preparing a business plan submitted to the EUIF. Help pages are designed to provide guidance for writing a business plan and also explain the general principles and key factors of a business plan.  Also on our website, business plan format can be found. The format is not mandatory, but recommended. 17.08.2015Eesti Töötukassa11

12. Business plan counselling  The EUIF regional employment offices have established cooperation with regional development agencies (MAK).  If needed, the EUIF can refer clients to these agencies or specialised counselling and guidance. The service is free of charge. In some regions MAK and EUIF organise joint events and workshops. 17.08.201512Eesti Töötukassa

13. Business start-up support is not given:  for expanding or starting business in an existing enterprise;  for becoming a shareholder in an existing enterprise;  to a person who is subject to a prohibition on business;  to a person who owes taxes to the state or local government;  to a person whose business plan is a high-risk;  to a person who owns or who owned for the preceding six- month period of submission an application more than 50% of a company;  to a person who has in a three-year period preceding the filing of an application received start-up support;  to operate in the area, which is contrary to the public interest. 23.09.2014 Eesti Töötukassa

14. Reasons for refusal of aid 17.08.2015Eesti Töötukassa14

15. Number of applications. 17.08.2015Eesti Töötukassa15

16. Proportion of applicants of registered unemployed 17.08.2015Eesti Töötukassa16

17. Number of applications, applications granted 2013 17.08.2015Eesti Töötukassa17

18. Beneficiary's profile Woman Man Age: 25-44 Education: higher secondary, vocational Previous line of work: office worker, sales craftsman 17.08.201518Eesti Töötukassa

19. Obligations inherent in obtaining start-up grant  In 6 months from receiveing the grant beneficiary has to : create a new company, or to register with the self- employed, and start economic activities according to business plan.  The beneficiary has to use the given grant for intended purpose according to the business plan.  The beneficiary shall submit a report to the EUIF at least two times a year after the grant bank account transfer day. 17.08.2015Eesti Töötukassa19

20. Support measures for start-up enterprises  compensating costs of further training related to the sphere of companys activities according to the business plan Training costs can be reimbursed up to EUR 959  compensating costs for individual business counselling up to 150 euros The EUIF compensates costs of further training as well as costs for individual business counselling within two years from receiving the grant from the EUIF. 17.08.2015Eesti Töötukassa20

21. Support measures for start-up enterprises  Mentoring This provides an opportunity to discuss the challenges, learn from other new as well as more experienced entrepreneurs and create new business contacts. It helps to ensure the companies development, competitiveness and sustainability. The recipients of business start-up grant can attend the mentor club within two years from receiving the grant from the PES. 17.08.2015Eesti Töötukassa21

22. Use of business support measures Approximately 30-40% of beneficiaries use at least one of the business support measures in 2014. 17.08.2015Eesti Töötukassa22

23. Results 17.08.2015Eesti Töötukassa23

24. 2908 Number of created new jobs in 01.01.2010- 31.12.2012 17.08.2015Eesti Töötukassa24

25. Number of applications and subsidies granted: 23.09.2014 Eesti Töötukassa

26. Survival rate of created enterprises by year 17.08.2015Eesti Töötukassa26

27. Business registration and business survival rate calculated on the basis of grants given Survival rate 1 – registered in Business Register Survival rate 2 - registered in Business Register + economic activity 17.08.2015Eesti Töötukassa27

28. Problems emerged during the first year of business: a variety of problems highlighted by the reporters 17.08.2015Eesti Töötukassa28

29. Case studies 17.08.2015Eesti Töötukassa29

30. Ants - transportation for people with disabilities  Unemployed 21.01.2008 -18.11.2012  Professional training for taxi drivers  Business training  Applied for start-up grant 24.04.2012 - denied  New application 05.10.2012  Grant given 15.11.2012  Created his company 28.11.2012 With the help of start-up grant: necessary licences and equipment for transporting disabled people 17.08.2015Eesti Töötukassa30

31. Inga - workbooks for preschoolers  Registered as unemployed 19.10.2010-19.04.2011  Had worked as a sales manager in the field of wood products  Applied 15.03.2011, granted 18.04.2011  Created her company 10.05.2011  Companys products have been on top-sellers list in bookstore chain Apollo in Estonia  16 different products by now 17.08.2015Eesti Töötukassa31

32. Rainer, Andrus, Nigul - plastic windows  Former workers of a company making plastic windows which bankrupt  Applied 14.02.2011, granted 07.03.2011  With the help of start-up grant bought the necessary equipment for producing windows from the bankrupt company  Created their company 15.03.2011  Now the company has factories in Pärnu and in Tallinn 17.08.2015Eesti Töötukassa32

33. 17.08.2015Eesti Töötukassa33 Thank You! Ege Jaanso ege.jaanso@tootukassa.ee www.tootukassa.ee