Europe 2020 ESF Entrepreneurship

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1 Europe 2020 ESF Entrepreneurship Raymond Maes Acting Head of Unit Youth employment, Entrepreneurship, Microfinance Facility DG Employment, Social Affairs & Inclusion European Commission

2 Entrepreneurship at the heart of the Europe2020 strategy

3 EU economy: where do we stand? 23 million people (10% of active population) now unemployed In 2009, EU GDP fell by 4% ; industrial production dropped by 20% to 1990s levels National deficits at 7% of GDP on average, national debts at over 80% of GDP on average EU s growth potential has halved as a result of the crisis High political expectations: a strong effort for a successful exit! Policies and actions have to show the social face of Europe

4 Europe 2020: 3 interlinked priorities Smart growth: developing an economy based on knowledge and innovation Sustainable growth: promoting a more efficient, greener and more competitive economy Inclusive growth: fostering a high-employment economy delivering social and territorial cohesion 4

5 Europe 2020: 5 EU headline targets By 2020: 75 % of the population aged should be employed 3% of the EU's GDP should be invested in R&D The "20/20/20" climate/energy targets should be met (including an increase to 30% of emissions reduction if the conditions are right) The share of early school leavers should be under 10% and at least 40% of the younger generation should have a tertiary degree 20 million less people should be at risk of poverty

6 Job creation through establishment/consolidation of new businesses : a significant role in achieving employment target of 75% for 2020 because A significant share of the new jobs in the EU is created by newly established firms. Almost 85% by micro-firms. In the EU, these firms generate on average nearly 2 jobs, in some Member States up to 3. Up until now, Europe is far from exploiting its full potential in this respect The rate of business creation on a European average is estimated at around 4.5 %, compared to 8% in the USA. In Europe, entrepreneurship is less attractive for women: men are twice more likely to be involved in early-stage entrepreneurial activity than women.

7 Europe Flagship initiatives (1) "Innovation Union" to improve framework conditions and access to finance for research and innovation so as to ensure that innovative ideas can be turned into products and services that create growth and jobs "Youth on the move" to enhance the performance of education systems and to facilitate the entry of young people to the labour market

8 Europe Flagship initiatives (2) "An industrial policy for the globalisation era" to improve the business environment, notably for SMEs, and to support the development of a strong and sustainable industrial base able to compete globally "An agenda for new skills and jobs" to modernise labour markets and empower people by developing their of skills throughout the lifecycle with a view to increase labour participation and better match labour supply and demand, including through labour mobility

9 Europe 2020 Strategy - guidelines Integrated guideline 7 Increasing labour market participation, reducing structural unemployment and promoting job quality through: Adequate flexicurity policies Review tax/benefit systems Promote active ageing Promote work-life balance Combat youth unemployment

10 Europe 2020 Strategy - guidelines Integrated guideline 8 Developing a skilled workforce responding to labour market needs and promoting lifelong learning through: Adequate supply of knowledge and skills to match labour demand Access to lifelong learning and vocational training Remove barriers to geographical and occupational mobility

11 Europe 2020 Strategy - guidelines Integrated guideline 9 Improving the quality and performance of education and training systems at all levels and increasing participation in tertiary or equivalent education through: Modernise universities Prevent early school leaving Building national qualification frameworks Making teaching carriers more attractive Promote teacher and student mobility Headline target: aiming to reduce drop out rates to less than 10 %, and increase the share of yearolds having completed tertiary or equivalent education to at least 40 %.

12 Europe 2020 Strategy - guidelines Integrated guideline 10 Promoting social inclusion and combating poverty through: Modernise social security and pension systems Ensuring access to affordable, sustainable and high quality services Ensuring equal opportunities Effective anti-discrimination Headline target: aiming at promoting social inclusion, in particular through the reduction of poverty by aiming to lift at least 20 million people out of the risk of poverty and exclusion.

13 The new multi-annual financial framework

14 Enhancing European added value In line with the Budget Review: Focus the ESF on securing the 2020 targets Greater visibility and predictable funding volumes for the ESF Contribution to European employment initiative

15 Multi-Annual Financial Framework Main instruments under the current programming period European Social Fund Simplification European Globalization Fund PROGRESS Microfinance Facility PROGRESS Programme EURES

16 Options for post-2013 Multi-Annual Financial Framework Streamlining into the European Social Fund Under Shared Management ESF «Conditions for growth» including support for microfinance «Emergency aid to workers made redundant» - EGF Under Direct Management An Initiative for employment, working conditions, social protection and social inclusion PROGRESS EURES Progress Microfinance

17 ESF - Conditions for growth Modus operandi Part of Cohesion Policy under the Europe 2020 strategy (targets) Conditionality to make assistance more effective Thematic investment windows Concentration on limited number of priorities in each Member State Simplification Performance orientation Focus on European added value - European budget for European priorities

18 Options for ESF investment Windows ESF Investment windows Relevance for headline targets and Flagships Integrated Guidelines Indicative list of specific investment areas The right to work Employment target - Flagship An agenda for new skills and jobs IGL 7 Access to employment; entrepreneurship and self-employment; new skills and jobs; green jobs; labour mobility; active ageing, promoting health and safety in the workplace, labour market institutions, linked infrastructure development. Education and Skills Early school leaving target Tertiary education target - Flagship Youth on the move IGL 8 IGL 9 Modernization agenda for higher education; increasing participation in tertiary education; reducing early school leaving; Knowledge economy, identification of skill needs, life-long learning; recognition non-formal and informal learning; improving performance of (vocational) education and training systems; investment in education and training infrastructure. An inclusive society Poverty target Flagship - European Platform against poverty IGL10 Labour market reintegration and anti discrimination of vulnerable or marginalized groups; access to social and community services; child poverty; investment in social infrastructure including social housing. Access to health services; capacity building; deinstitutionalization. Institutional capacity IGL 6 Strengthening public administration and public services; promotion of public administration reform including reducing administrative burden on enterprises; capacity building; e- government.

19 Entrepreneurship and ESF What role under the new multi-annual financial framework?

20 Common weaknesses identified Lack of entrepreneurship culture within many vulnerable groups Access to support in rural/remote areas Insufficient funding for training & coaching Lack of social competences of consultants/advisors Service offers not transparent/ quality and suitability not assessable Only less than 1/3 of all start-ups use loan financing or business advisory services Insufficient support for consolidation and growth Lack of data, monitoring tools/ evaluations

21 Opportunities for the ESF identified Support awareness raising actions on the value of entrepreneurship Increase transparency of services Invest in training the trainers and advisors Make ESF funding conditional on quality standards & incentives for service providers Improve co-operation between employment & industry ministries, between ESF and ERDF Improve data collection on start-ups & needs of target groups

22 Challenges for ESF post 2013 More, and more effective support towards entrepreneurship under the new ESF How to give entrepreneurship a more prominent place under the ESF in terms of: increasing its volume and scope, supporting the scaling up of pilots and enhancing its impact on target groups How can the Commission assist in implementing effective support structures and actions? How will the CoPIE activities and results contribute to achieving this objective?