AUTONOMOUS COMMUNITY OF THE BASQUE COUNTRY (CAPV)

Transcription

1 Good Practice in Inclusive Entrepreneurship INCLUSIVE ENTREPRENEURSHIP IN THE AUTONOMOUS COMMUNITY OF THE BASQUE COUNTRY (CAPV) Ainhoa Unamuno Iñigo Urkidi Javier Finez April 2008

2 CONTENTS PAGE CONTENTS PAGE... 2 CONTENTS TABLE...3 CONTENTS FIGURE... 3 EXECUTIVE SUMMARY INTRODUCTION WHAT IS THE COMMUNITY OF PRACTICE OF INCLUSIVE ENTREPRENEURSHIP? THE PROCESS OF TESTING THE TOOL IN THE CAPV MAIN LESSONS FROM TESTING THE TOOL IN THE CAPV ENTERPRISE ECOLOGY DEMOGRAPHICS: THE AREA AND ITS PEOPLE KEY EMPLOYMENT CHALLENGES ENTREPRENEURIAL DYNAMICS THE POLICY FRAMEWORK ADMINISTRATIVE CONDITIONS AND FRAMEWORK STRATEGY FOR INCLUSIVE ENTERPRISE STAKEHOLDER ASSESSMENT OF POLICIES FOR INCLUSIVE ENTREPRENEURSHIP INTRODUCTION TO SECTION ENTREPRENEURSHIP STRATEGY CREATING THE CULTURE AND CONDITIONS FOR ENTREPRENEURSHIP START-UP SUPPORT AND TRAINING SUPPORT FOR CONSOLIDATION AND GROWTH ACCESS TO APPROPRIATE FINANCE SUMMARY OF KEY STRENGTHS AND AREAS FOR IMPROVEMENT IDENTIFIED BY STAKEHOLDERS INTRODUCTION STRENGTHS AND CHALLENGES OF THE ENTERPRISE SUPPORT SYSTEM POSSIBLE SOLUTIONS FROM OTHER REGIONS ANNEX 1: THE TOOL COMPLETED FOR PRINCIPALITY OF ASTURIAS ANNEX 2: LINKING THE TOOL TO GOOD PRACTICE ANNEX 3: ENTITIES WHO HAVE PARTICIPATED IN THE STUDY ANNEX 4: PROMOTING ENTREPRENEURIAL CULTURE THROUGH DIGITAL MATERIAL ANNEX 5: BASQUE COUNTRY LAW ON INCLUSIVE ENTERPRISES ANNEX 6: SPANISH LAW ON INCLUSIVE ENTERPRISES

3 CONTENTS TABLE Table 1: Distribution of population Table 2: Distribution of population by age and nationality Table 3: Employment rate by Historic Territory, gender and age (2007) Table 4: Unemployment rate by gender and age (2007) Table 5: Number of business and employment per sector and Historic Territory (2006) Table 6: Employee Size, Number of enterprises and employment per Historic Territory (2006) Table 7: Number of new enterprises by sector Table 8: Average Scores for Entrepreneurs for Start Up Support Table 9: Summary of Strengths and Weaknesses for the CAPV from Piloting of Tool CONTENTS FIGURE Figure 1: CAPV employment rate by municipalities Figure 2: CAPV unemployment rate by municipalities Figure 3: Long Term Unemployment rate among 16 to 64 years old people by municipalities (2007).14 Figure 4: Women indefinite contract (2007) by municipalities Figure 5: Immigrant people from outside Europe 25 out of the total immigrant people by municipalities Figure 6: 45 Plus people indefinite contract (2007) by municipalities Figure 7: Young people under 24 years old employment rate Figure 8: Number of new enterprises by Employee Size Figure 9: Incubator or Start-up Centres geographical distribution Figure 10: Sectoral distribution of Inclusive and Solidary enterprises in the CAPV Figure 11: Services and infrastructure for Entrepreneurs Figure 12: Average Scores from Policy Makers for Culture and Conditions Figure 13: Average Scores from Policy Makers for Entrepreneurship Strategy Figure 14: Summary of Enterprise Culture score by specialist advisers Figure 15: Summary of enterprise culture scores by entrepreneurs Figure 16: Summary of Start up support by specialist advisers Figure 17: Summary of Start up support by entrepreneurs Figure 18: Consolidation and Growth from the Policy maker s point of view Figure 19: Consolidation and Growth from the Advisers point of view Figure 20: Consolidation and Growth from the Entrepreneurs point of view Figure 21: Policy Makers survey on Access to Appropriate Finance Figure 22: Specialist Advisers survey on Access to Appropriate Finance Figure 23: Entrepreneurs survey on Access to Appropriate Finance

4 EXECUTIVE SUMMARY This report outlines a pilot study undertaken in the Autonomous Community of the Basque Country (THE CAPV) to test and evaluate a framework for the assessment of inclusive entrepreneurship and the identification of good practice. The study is part of a Community of Practice project involving THE CAPV, Belgium, Spain, Portugal and Germany. The framework is based on an Excel spreadsheet tool and has three sections for policy makers; for specialist advisers and for entrepreneurs from different target groups. These groups include unemployed, women, migrants and ethnic minorities, 50 plus, young people under 30, people with disabilities and social enterprises. Interviews have taken place where individuals, within each of the stakeholder groups, were asked to comment on and score (4= totally agree to 1= totally disagree) a statement about entrepreneurship within the themes of strategy, culture, start-up support, consolidation and growth and access to finance. Scores and comments were recorded in electronic form and a summary of scores produced for each of the stakeholder groups. This score was then colour coded, red, yellow or green, depending on the value and tables produced of the colour coded average score for each statement within each theme. (See Annex 1). The tables are then analysed to identify where entrepreneurship activity is viewed to be good (green), fair but needs to be kept under review (yellow) and poor (red). This provides a tool which can form the basis of identifying where entrepreneurship practices are good and could be used as examples of good practice or where they may be gaps in provision or needs of particular groups of entrepreneurs. In this pilot a relatively small number of interviews, 42 in total (see Annex 3), were undertaken as the main objective of the study was to evaluate the tool and process and then make recommendations for future developments. However, through the interviews and analysis of the results a number of conclusions have been discussed in section 4 which identify existing good practice across the CAPV and where future challenges lie. The project has also involved the identification of good practice within countries which are collated in an on-line database. This provides opportunities to search the database for examples of good practice from across Europe which could then be investigated and evaluated for potential implementation to address a gap in provision identified in the matrix tool. The flexibility of the tool enabled the following to be evaluated: The visual format of the output from the matrix analysis easily identifies where there are areas of good practice, gaps in provision or needs for specific target groups. For example in Annex 1, a series of green cells such as those within the policy framework can be evidenced by the existence of different public and private entities that provide access to comprehensive and readily available business information and advice. A number of red cells can identify where there are barriers experienced by various groups or there is a lack of provision. In the CAPV access to healthy business networks is seen as a major barrier to entry into clusters and sectoral networks. This is seen very clearly in the matrix analysis for advisers and users where many cells in this theme are red. The database of good practice can be searched to address areas where gaps are identified. The results for each statement from entrepreneurs across the different target groups can be compared to identify any differences in experiences. In the CAPV we do not have interviewed entrepreneurs with disabilities and migrants but interviewed people indicated that they had all access to mentors. Nevertheless it can be raised as a challenge within the CAPV to recruit and promote more mentors for people with disabilities. The average score from policy makers or specialist advisers to a statement can be compared with the response from entrepreneurs. This helps to evaluate whether programmes or facilities are being accessed by entrepreneurs. Access to free, high quality and readily available business information from professional is seen by policy makers and 4

5 specialist advisers as good whereas most entrepreneurs see this as a complex process and not very quick. Outcomes and recommendations for using the tool In summary, the pilot study has resulted in the following outcomes: The tool was tested with 5 policy makers, 18 specialist advisers and 19 entrepreneurs across the CAPV (see Annex 3). All participants in the pilot were very positive about the project and willing to provide responses to all questions. The benefits of using the questionnaire within the framework of policy and best practice were seen as advantageous to policy makers and advisers. The potential of identifying gaps within provision for specific target groups and using examples of best practice from other regions or nations was seen to be a positive step forward. The ranking of 1 to 4 was appropriate as it did not provide the opportunity for a midpoint response. A 4 ranking was sometimes given with the comment we have that or I did that where respondent were involved with delivering or accessing particular initiatives. Sometimes a 2 ranking was given because I couldn t give it a 1 because it might look bad. Through personal interview this was explored and reasons noted. interview process proved very efficient and effective. The distances and time required to obtain responses from different target groups in various parts of the CAPV would have not been possible in such as short period of time. The CAPV covers 7,261square kilometres. By participants were open and honest and willing to share their knowledge and experiences. Questions could be queried and explained as needed. A personal perspective was gained through obtaining some business background from entrepreneurs as well asking the questions. The questions prompted stories from entrepreneurs which showed an insight into some of the barriers, issues and good practice experienced. The policy makers would not necessarily have the knowledge of all the areas covered in the framework and some were chosen because of their expertise within a theme to give a more balanced view. The means of identification of entrepreneurs to participate in such studies is an important element. For the CAPV pilot a database of entrepreneurs was available from the Centre for Enterprise and Innovation (CEI) which provided the necessary breakdown into target groups required within the tool. Across the CAPV there are significant differences in provision of support and infrastructure. The matrix is an excellent tool for highlighting these gaps and entrepreneur needs and which combined with the best practice framework could provide the basis for providing solutions. The tool could integrate within the enterprise ecology framework more information from the Global Entrepreneurship Monitor (GEM) project which attempts to describe and analyse entrepreneurial activity across a number of nations. This would provide a wider perspective of entrepreneurial activity to support the analysis of the tool. 5

6 1. INTRODUCTION This report outlines a pilot study undertaken in the CAPV (SPAIN) to test and evaluate a framework for the assessment of inclusive entrepreneurship and the identification of good practice. The study is part of a Community of Practice project involving Wales, Belgium, Spain, Portugal and Germany WHAT IS THE COMMUNITY OF PRACTICE OF INCLUSIVE ENTREPRENEURSHIP? CoPIE is a learning and communication platform for people who are passionate about inclusive entrepreneurship. We work on the design and delivery of policies which make it easier for underrepresented groups to become self employed or start up a business. We have called this inclusive entrepreneurship. It builds on the work carried out over the last five years by nearly 300 EQUAL partnerships on opening up business creation to all members of society. Many of the 12 countries involved in this work created National Thematic Networks to exchange and mainstream their findings. The Community of Practice also drew heavily on the experience of the EQUAL partnerships involved in the Social Economy. Inclusive entrepreneurship Inclusive entrepreneurship is a comprehensive approach to widening the range of people that start and grow their businesses. It drives up employment and activity rates and cuts unemployment. It is a diversity assured approach that works effectively in communities that are discriminated against. To widen entrepreneurship we have brought together a Community of Practice on Inclusive Entrepreneurship CoPIE led by Flanders and co-financed by the European Commission. CoPIE is an open network aiming make entrepreneurship an attractive and viable option for more people during the period. CoPIE has developed a new action planning approach which will be presented for the first time to around 300 delegates from the EU Member States at a Policy Forum in Hanover on 5-6 June The Four entrepreneurial ladders out of exclusion Although the definitions vary slightly in each Member State, the main themes dealt with in business creation are very similar across the countries. They have been described as the four parts of an entrepreneurial ladder out of social exclusion. The four parts are: Creating the culture and conditions for entrepreneurship; Integrated start-up support and training, Support for consolidation and growth and Access to appropriate finance In all these areas there is already an important reservoir of good practice on how to promote inclusive entrepreneurship in many Member States. But this still generally takes the form of pilot projects and initiatives. At the end of Equal, there is a risk that this knowledge and experience can be lost. Our approach aims to combat this by helping regions to mainstream the good practice from all over Europe. The founding partners Flanders, Germany, Spain, Portugal and Wales are the founding members of CoPIE. France, the Netherlands, Greece and Wallonie are participating as observers. They have all had direct experience of trying to close the gap between employment and entrepreneurship policies. This gap exists because those concerned with social inclusion and employment policy tend to prioritise combating exclusion through employment. European employment policy is increasingly concentrated on supply side solutions (like training, counselling and flexicurity ) for helping the labour force adapt to a rapidly changing environment created by globalisation and an ageing population. Policies for business creation tend to receive less attention. 6

7 The people involved in the Community of Practice believe that many more people from disadvantaged groups can help to create their own future rather than hope that decent jobs trickle down from the high technology, high growth sectors. They argue that entrepreneurship should not be seen as the prerogative of a privileged few. It is already a survival strategy for millions of Europeans and, with the right conditions and policies, it has the potential for unleashing the creativity of millions more. Developing Action Plans for Inclusive Entrepreneurship One of the first tasks of the Community of Practice has been to design a methodology for developing action plans for Inclusive Entrepreneurship. The action plans are built around a tool that takes the stakeholders systematically through an analysis of enterprise support in their region, sub region or city. The tool itself consists of four scorecards on excel spreadsheets which are already available online at present, this preliminary version of the tool and bank of good practices can be consulted on the CoPIE website. The tool helps policy makers and practitioners concerned with entrepreneurship to identify the main gaps or challenges to the support system for entrepreneurship in the four main themes identified by EQUAL - from the point of view of specific groups. Policy challenges are identified from the scoring process. Armed with this knowledge they can locate the good practices developed elsewhere to meet similar challenges in the area of culture and conditions, start-up support and training, consolidation and growth and access to appropriate finance. Finally, they can bring both elements together to design an action plan or strategy for inclusive entrepreneurship for the next period. Now that CoPIE has established a sound basis for co-operation we plan to grow the existing community of practice by adding five to ten new member regions from a range of different Member States. We are particularly keen to expand our network to include the new Member States The rest of this report describes how the tool has been tested by one of the members of CoPIE THE PROCESS OF TESTING THE TOOL IN THE CAPV The region of the Autonomous Community of the Basque Country (CAPV) has been chosen for two reasons. Firstly, the local employment and economic situation, in being very representative of industrial regions in decline which are overcoming this stage, while moving towards a more open, service-oriented economy, but still with employment problems for certain sectors and groups. Unemployment rate remains low (3.1%) but still there is certain people and groups with difficulties to access to the labour market. Second, the system of support for entrepreneurs and business is quite recent (less than 10 years) and even more recent the inclusive entrepreneurship. It is our objective to draw up and figure out the entrepreneurship and business support squeleton in order to compare it with other regions and extract lesson from them. As already stated, the tool was tested with 5 policy makers, 18 specialist advisers and 19 entrepreneurs across the CAPV. Initial contact was made through personal approaches giving an overview of the pilot, its aims and objectives and a request for an interview. Interviews were then arranged at a specific date and time to suit the interviewee. The pilot has been also tailored by in order to cover a broader area. At the first instance, the process was carried out on individual basis through face to face interviews, in order to test out methods to obtain the responses and looking for a more qualitative and high quality information. The study has been completed through responses. On average a face-to-face interview lasted about minutes and an response took an average of two days to get response. The policy makers interviewed included representatives from different departments within the Basque Government with particular responsibility for enterprise, education, social inclusion and business support for under represented groups and growth businesses, and community development. Other 7

8 organisations such as the Regional Government of Gipuzkoa and the Regional Government of Bizkaia have been also interviewed. The CAPV is formed of the three Provinces, or Historic Territories of Bizkaia, Gipuzkoa, and Araba. Following Basque tradition, the three historical territories also enjoy a large degree of autonomy: just as the CAPV, they each have their own parliament ( Junta General ) and provincial government ( diputacion foral ) nominated by the former. Thus, if the Basque Government enjoys a large degree of autonomy, as compared to most regions in Europe, it shares many powers with its three constituent parts, entailing complex co-ordination mechanisms and practices. The Basque Government defines the general support lines and grants to which entrepreneurs can have access once they decide to start up a business. Thus, the three historical territories run their own programmes and strategic action lines to foster and pouring entrepreneurship and business support. Interviews for the specialist advisers were selected from these organisations and from further public, private and voluntary sectors. Some of the advisers were able to provide responses for a number of groups. There is a great and extent support infrastructure for entrepreneurs and business support. Entrepreneurs were initially identified through ARIADNA EQUAL project. It was possible also to identify from the above listed specialist advisers database so representative selections of 15 entrepreneurs were ed with a request to be part of the pilot. Entrepreneurs from a range of businesses were interviewed. From the 15 entrepreneurs 1 response was entered due to the multiple target group representation of some entrepreneurs. For example, a woman who is under 30 may have responded from different perspectives. During the interview individuals were asked to score (4,3,2,1) their level of agreement. A score of 4 means that they totally agree with the statement and normally means that provision is very good, a 3 means they agree and provision is good, 2 means disagree and provision is not good whereas 1 means they totally disagree and provision is very poor and there are major gaps in provision. The statements are structured under themes of strategy, culture, start-up support, support for consolidation and growth and access to finance. In the final analysis, the scores were averaged for policy makers, specialist advisers and entrepreneurs under each theme and then coloured green (over 3), yellow (2-3) and red (less than 2). This method provides a visual framework from which conclusions can be drawn MAIN LESSONS FROM TESTING THE TOOL IN THE CAPV All participants in the pilot were very positive about the project and willing to provide responses to all questions as well as an insight into their experiences of enterprise and expertise of developing enterprise programmes across the CAPV. The structure of the questionnaire and the process of interviews with policy makers, advisers and entrepreneurs worked very well and raised general awareness of issues and developments from those with different perspectives and areas of responsibility. Inclusive entrepreneurship, as evidenced throughout the interviews, has had a high degree of discussion in the CAPV. The ranking of 1 to 4 was appropriate but it is not the usual ranking system used in the CAPV. It did not provide the opportunity for a midpoint response. A 4 ranking was sometimes given with the comment we have that, I did that or we developed this and a 2 ranking because I couldn t give it a 1 because it might look bad o we do little but we do something. Through personal interview this was explored and reasons noted. ing proved very efficient and effective. The distances and time required to obtain responses from different target groups in various parts of the CAPV would have not been possible in such as short period of time. A personal perspective was gained through obtaining some business background from entrepreneurs as well asking the questions. The questions prompted stories from entrepreneurs which showed an insight into some of the barriers, issues and good practice experienced. 8

9 The policy makers would not necessarily have the knowledge of all the areas covered in the framework and some were chosen because of their expertise within a theme to give a more balanced view. Some of the questions presented a dichotomy for the interviewee. For example grants are fast and flexible and advisers receive accredited training and are sensitive to the needs of target groups. This can produce responses such as How do I score that they are flexible but not fast? Questions like outreach services go into communities to reach target groups was not applicable in the CAPV, that could mean an important gap in comparison with other European regions. It was fortunate that a database of potential participants was available which provided target group information. In a wider study special consideration should be given on how to access entrepreneurs. Across the CAPV there are significant differences in the provision of support and infrastructure. For example, incubators. The matrix is an excellent tool for highlighting such gaps in provision or identifying entrepreneur needs. It could be used in different regions of the CAPV to identify where the challenges are and where potential funding streams could be targeted. This can be supported by accessing the information in the best practice database which can help provide the basis for possible solutions. It has been extremely useful to show the strengths and weaknesses of the entrepreneurial support system. In the CAPV case, the tool has showed how strong the entrepreneur supporting system is with information, premises and financial access for start up, but the weaknesses this support because its too diverse and does not exist an unique umbrella to give and deliver this support. There is no an accredited training for business advisors, but there are some business advisors especially focused on a specific targeted group or in the creation of a specific type of business like cooperative enterprises. Give a quick analysis as a first step to go deeper searching the real causes of entrepreneurial problems. Why the CAPV policy makers, advisors and entrepreneurs know the need of more premises for growth and consolidation and there is nothing related to it? 9

10 2. ENTERPRISE ECOLOGY 2.1. DEMOGRAPHICS: THE AREA AND ITS PEOPLE The CAPV is situated in northern Spain, facing the Bay of Biscay and extending on the coast to the border of France. Juan Carlos I became King of Spain at the end of 1975, the first free elections being held in 1977, followed by the approval in 1978 of a new Constitution allowing the formation of a type of federal system of government. Seventeen Autonomous Communities covering all of Spain were created between 1979 and 1983, the first ones being the Basque Country and Catalunya. As set out in the Spanish Constitution, all of the Autonomous Communities have a parliamentary form of government similar to the central government structure, set their own election dates, and have substantial law-making power. The creation of the Autonomous Community of the Basque Country ( Comunidad Autonoma del Pais Vasco or CAPV), as authorised by the Constitution, was approved by the central government on December 18, 1979, after the vote of a Basque Country Status defining regional competencies. The CAPV is formed of the three Provinces, or Historic Territories of Bizkaia, Gipuzkoa, and Araba. Following Basque tradition, the three historical territories also enjoy a large degree of autonomy: just as the CAPV, they each have their own parliament ( Junta General ) and provincial government ( diputacion foral ) nominated by the former. Thus, if the Basque Government enjoys a large degree of autonomy, as compared to most regions in Europe, it shares many powers with its three constituent parts, entailing complex co-ordination mechanisms and practices. Its total landmass is of 7,261square kilometres. The Basque Country is a land of urban and rural diversity. The strong industrial tradition is represented by Bilbao (Bizkaia) and its former steel mills and shipping industry, with a remarkable recon version towards the service sector, symbolised by the Guggenheim museum, located on a former industrial site. San Sebastian (Gipuzkoa) is well known for its tourist amenities and its fashionable reputation as a seaside casino town. Vitoria (Alava), the capital chosen by the CAPV, has grown over the past twenty years from a sleepy and devitalised town into a bustling administrative and service centre. Rural areas located close to these three cities are submitted to intense urban pressure, creating challenges but also offering opportunities for rural development in these fringes. On the whole, rural areas represent more than 90% of the territory of the Basque Country, but the population is predominantly urban. The population in 2006 was of inhabitants with an equal distribution among men and women. Half of the population is concentrated in the Historic Territory of Bizkaia, followed by Gipuzkoa and Araba latest. The population density is about 300,4 inhabitants per square metre. 10

11 Table 1: Distribution of population TOTAL Population density (inhab/km 2 ) TOTAL MEN WOMEN CAPV ,4 Historic Territories Araba / Alava ,2 Bizkaia ,7 Gipuzkoa ,7 The population below 19 years old represents 16,5% of the total population. Most of the population concentrates in between 20 and 64 years old (64,9%) and the people older than 65 years old sum up the 18,6% of the total population. Among the total population immigrants represent the 4,5% of the population, of whom 1,1% are from the European Union. Due to the economic and social prosperity of last 10 years and the dynamics of the labour market the CAPV welcomes a new wave of immigrants. It begins to be a representative figure. Half of the immigrants come from Latin America (Colombia, Ecuador, Morocco, Portugal and Romania and one out of 5 come from Africa. Table 2: Distribution of population by age and nationality Age group % Foreigners % >65 UE Rest CAPV 16,5 64,9 18,6 1,1 3,4 Historic Territories Araba / Alava 16,8 66,6 16,7 1,3 5,0 Bizkaia 16,0 64,8 19,2 0,9 3,3 Gipuzkoa 17,3 64,3 18,4 1,3 2, KEY EMPLOYMENT CHALLENGES The Labour Market Employment rate By the end of the year 2007 the employment rate of people of working age in the CAPV stands at 68% ( people), people more than in the first semester of the year It presents a slight positive variation from 2006 and an important increase in comparison with the employment rate at The Historic Territory which leads the increase in the employment rate is Gipuzkoa with a positive variation of 0,8% (4.000 employments more), followed by Araba with and increase of 900 employments. Nevertheless Bizkaia losses almost 700 employments. The improvement of the employment rate affects basically to women employment rate which has suffered a light increase from the previous three months with women employed and a positive growth over the last six years until it reaches the 58,6%. The employment rate for men stands at 77,2% with a slight decrease that counts of employees, and little variation over the last six years. Women employment rate still stands clearly behind men employment rate. If we have a look at the employment rate by age, we can appreciate a dynamic 25 and 44 years old workforce (83,2% of employment rate). The 61,4% of people older than 45 years is at the workplace. It is the young people who have difficulties in the access to the labour market with and employment rate of 31,5%. 11

12 Table 3: Employment rate by Historic Territory, gender and age (2007) Historic Territory Gender Age CAPV Álava Bizkaia Gipuzkoa Men Women >45 s 2007 I 66,9 68,1 64,5 70,3 76,4 57,1 29,6 82,6 60,0 II 66,3 68,1 63,9 69,5 76,1 56,2 30,0 82,0 59,2 III 67,7 68,9 66,0 69,9 77,8 57,3 32,6 83,3 60,2 IV 68,0 69,3 66,0 70,7 77,2 58,6 31,5 83,2 61, ,6 64,6 56,6 62,6 73,3 45,7 29,8 76,3 52, ,7 67,3 59,9 65,4 75,8 49,4 32,6 78,3 56, ,6 67,8 60,5 66,8 75,3 51,6 31,6 78,5 57, ,4 67,2 62,1 67,1 74,8 53,9 32,4 79,5 58, ,3 68,0 62,7 68,5 75,7 54,8 32,6 79,7 59, ,5 68,6 64,0 69,7 75,8 57,0 32,1 81,3 60,1 Figure 1: CAPV employment rate by municipalities As it has been already stated in table 3, Bizkaia province presents lower employment rates than Gipuzkoa and Araba (red circle). Unemployment rate By the end of the year 2007 the unemployment rate of people of working age in the CAPV stands at 3,1% who presents a slight decrease from 2006 and an important decrease in comparison with the unemployment rate in 2001 (11,1%). Bizkaia has the highest unemployment rate which stands at (3,9%) representing an increase of unemployed people. Araba and Gipuzkoa have decreases the number of unemployed people until 2% of unemployment rate in Araba and 2,4% in Gipuzkoa. Men unemployment rate has decreased slightly from 7,5% in 2001 to 2,8% in 2007 but has increased in 0,1% over the last three months. But it is women unemployment rate who has shown an important unemployment decrease varying from 16,5% to 3,6% from 2001 to last 12

13 trimester of It shows the massive access of women into the labour market. It still continuous decreasing by 0,1% from the previous three months of the year Young unemployment rate is the highest unemployment rate (7,1%). Table 4: Unemployment rate by gender and age (2007) Gender Age Total Men Women > I 3,4 3,3 3,7 9,2 3,6 2,1 II 3,4 3,4 3,4 7,0 4,1 1,8 III 3,1 2,7 3,6 7,2 3,3 2,0 IV 3,1 2,8 3,5 7,1 3,7 1, ,1 7,5 16,5 25,5 11,1 6, ,3 5,7 12,1 19,5 8,6 4, ,6 6,5 11,5 22,2 9,2 3, ,8 6,5 9,6 20,5 8,1 3, ,7 4,7 7,0 13,5 6,4 2, ,1 3,7 4,5 8,2 4,7 2,2 Figure 2: CAPV unemployment rate by municipalities As it has been expressed in the previous pharagraphs, Bizkaia (red circle) province presents highest unemployment rates in coparison with Gipuzkoa and Araba province. 13

14 Key Challenges for disadvantaged people 1) Economically Inactive Long term unemployment rates show a positive trend in the last 5 years. The CAPV is situated among those European regions with lower long term unemployment rates such as Hungary and Portugal, and above Spain, France and Germany In many European countries women long term unemployment rates are higher than men long term unemployment rates. In the CAPV women long term unemployment rate scores 2,5% whilst men long term unemployment rate stands at 1,7%. Figure 3: Long Term Unemployment rate among 16 to 64 years old people by municipalities (2007) According to figure 1, it can be appretiated that these positive figures show unequal distribution of Long Term Unemployment rates across different municipalities of the CAPV. Thus, the western (Bizkaia) and eastern (Gipuzkoa) municipalities of the CAPV suffer greater Long Term Unemployment rates. 2) Women Even women unemployment has decreased till 3,5%, they still lay beyond men in those indicators related to the evaluation of the quality of the work. One of the causes of this poor quality of work consists in the presence of women in those economic activities that tend to be precarious. According to the document about Employment in the CAPV (2006) 1, almost nine out of ten women (approximately 85,3%) are employed in the service sector. 95% of women are employed at Domestic activities and the 71,3% at Health activities. Welfare work, trading, business services and hotel and bar businesses mostly employ women. This massive presence of women in the service sector makes the distance to men working conditions greater. Service sector is less structured, has greater employee rotation and poorer contractual conditions than the industrial sector. In general women suffer worse working conditions. 1 LANBIDE, 2006, Employment in the Basque Country 2005: Trends and perspectives in the European context, Observatory for the Labout Market. 14

15 Figure 4: Women indefinite contract (2007) by municipalities According to figure 4, women indefinite contract level is equally distributed across the CAPV, althoug there are some municipalities (dark lilac cells) more active than others and some municipalities less active than others (green cells) 3) Immigrant people Among the total population immigrants represent the 4,5% of the population. Due to the economic and social prosperity of last 10 years and the dynamics of the labour market, the CAPV welcomes a new wave of immigrants. The 80% of these immigrants are under 45 years, so far they represent a great working age population. The Second Basque Country Immigration Plan 2 counts of immigrant people from whom 70% have already regulated their situtation whilst 30% still stands at irregular basis. Figure 5: Immigrant people from outside Europe 25 out of the total immigrant people by municipalities 2 Second Basque Country s Immigration Plan ( ), Basque Government, Housing and Social Affairs Department,

16 As it is shown in figure 5, in almost all municipalities in the CAPV 50% out of the total immigrant people living in the municipalities comes from outside Europe 25, specially in Bizkaia and rural areas of Araba. 4) 45 Plus Even work opportunities are increasing, people who age more than 45 years old find difficulties in accessing the labout market. EUSTAT (The Basque Country Official Statistics Office) counts of people who demand a job; 39,7% out of this group aged more than 45 years old; 38,1% out of these people are women and 61,8% men. Nevertheles, second trimester of 2007 (EUSTAT) show that 7% out of contracts of employment are for people aged more than 45 years old, aproximately contracts of employmnet. 42% out of the employed people are women, this mean an equilibrium between men and women contracts of employment for people (see figure 3). Figure 6: 45 Plus people indefinite contract (2007) by municipalities Figure 6 illustrates a more unbalanced distribution of indefinite contracts for people over 45 years old than for women. Nevertheless, Gipuzkoa province has been the mos active one (red circle). 5) Young people They are one of the most affected community of the Basque Country. As it has already been stated, the employment rate under 25 years old stands at 31,5% and the unemployment rate is clearly higher than any other working age unemployment rate, 7,1%. 16

17 Figure 7: Young people under 24 years old employment rate Gipuzkoa and eastern part of Araba Province show the highest young people employment rate in comparison with Bizkaia province. According to the Basque Employment Plan final document (2007) 3, unemployment under 25 years old mainly affects to those that: Present low skills and do not have the right education level Do not have any working experience (such as students that have finished their studies) Long term unemployed people Live in specially deprived geographical areas or geographical areas with high unemployment rates. 6) Disabled people The document Real situation of Employment activity for Disabled People 4, counts of a total population of disabled at people; 3,4% of the total population, from whom (60%) are men and (40%) women. People over 35 years old are physically disabled whilst people under 35 years old are mostly intellectualy disabled (31%) and suffer a mental illness (18%). These figures affect once more to young people. If higher education rates among the population between 16 and 64 years old stands at 52%, this figure comes down till 40% high educated disabled people. Disabled people employment rate stands at 47%, below the overal employment rate for the CAPV (68%). Three out of ten disabled people are unemployed in the CAPV. Unemployment affects mainly to young people, women, people with mental illness and to those who have a great handicapped. 3 Employment Plan, , Basque Government, Department of Justice, Employment and Social Security, Real situation of Employment activity for Disabled People, in Employment Plan, , Basque Government, Department of Justice, Employment and Social Security,

18 60% of disabled people is emplyed at Service Sector. Industry employs one out of three disabled people. Agriculture and Building sector, on the other hand, employ less than 7%. Nevertheles, Industry is the main sector that employs intelectualy disabled people (53%). 91% of disabled people have a contract for employment, 67% out of 91% at the private sector and the 22% at the public sector. Only 7% of disabled people are entrepreneurs. Only 1% of disabled people are member of cooperatives. 7) People that perceive Social Salary The profile of people that perceive social salary in the Basque Country corresponds to poverty features, that is women (unmorried women wih children, immigrant people and people plus 60 to complete their wages. In Decembre 2006 there were people that perceive social salary and this figure raised til in 2007 due to the increase of people plus 60 that perceives low wages and immigrant people. 68,3% out of these people are women and 30% are immigrant. The people that prevail in Bizkaia province perceiving social salary (2,17%) doubles the figure of people that perceives social salary in Araba province (1,16%) and trebles the figure of people that perceives social salary in Gipuzkoa province (0,77%). Most of the people that perceives social salary in Bizkaia is concentrated in Bilbao City. The Labour Market by Sector The following table shows number of enterprises and employment per sector and Historic Territory: Table 5: Number of business and employment per sector and Historic Territory (2006) Total CAPV Araba Bizkaia Gipuzkoa Nº. Emplo. Nº. Emplo. Nº. Emplo. Nº. Emplo. Total CAPV Industry and Energy Construction Commerce Hotel Business Transport and Communications Banking, Insurance and Business Services Other Service Activities The Basque Statistics Institute (EUSTAT) counts of a total of businesses, more than in 2006, employing people, employees more than in 2006, showing the dinamism of the labour market during the last year. Half of the businesses are settled in Bizkaia (95.871) employing employees. The local employment and economic situation of the CAPV is been represented by a great industrial activity, that still persists. Nevertheless the CAPV begins to move towards a more open, service-oriented economy as it is shown in the above table. The Service Sector is the more dynamic one by creating employments. The Banking, Insurance and Business Service sector has grown 9,5%, followed by Commerce and Hotel Business both with an increase of 4,7%. Same characteristics are shown by Other Service Activities. The Construction sector is the second strongest sector with employments more. In the other hand the Industry Sector has decreased the number of employments by people unemployed. The service sector comprehends approximately the 64,0% of total employment. Industry sector accompasses the 26,2% of the employment and Construction sector the 9,8%. According to the Basque Statistics Institute (EUSTAT) the 93,2% of the total enterprises employ less than 10 employees. They only soak up the 32,4% of the total employment in the CAPV. Small and Midium Enterprises (SMEs) represents the 6,5% of the total enterprises but encompasses almost the 41% of the total employment. There are only 0,03% that employ more than 250 people. They represent about 27,5% of total employment. 18

19 Table 6: Employee Size, Number of enterprises and employment per Historic Territory (2006) Total Araba / Alava Bizkaia Gipuzkoa Nº. Emplo. Nº. Emplo. Nº. Emplo. Nº. Emplo. Total CAPV =< >= The distribution of enterprises with less than 10 employees, SME and with more than 250 employees is similar for the three Historic Territories. In summary in the CAPV unemployment is not generally an issue although there are areas where closures and restructuring in the industrial sector has led to high numbers of job losses due mainly to Globalization and Off-Shoring processes. This, over time, is being replaced by the creation of new businesses through entrepreneurship development and the growth of new clusters such as biotechnology, creative industries and the strength of the automotive and machine sectors. The main employment challenges for the CAPV are: Problem Key points Low youth employment activity rates Activity rate of 31,5 % (below the CAPV average, 68%) Highest unemployment rate in Bizkaia Bizkaia has the highest unemployment rate (3,9%) in comparison with Gipuzkoa (2,4%) and Araba (2%) High youth unemployment Under 25 unemployment rate, 7,1 % Main territorial disparities Bizkaia is the most active territory in comparison with Gipuzkoa and Araba but it also represents the main negative figures for employment and unemployment rate Women mainly employed in service This massive presence of women in the service sector sector makes the distance to men working conditions greater. Service sector is less structured, has greater employee rotation and poorer contractual conditions than the industrial sector. In general women suffer worse working High Basque Government expenditure in Social Salaries Gipuzkoa province has the highest expenditure in Social Salaries conditions The Basque Government expenditure in Social Salary summed up in The Basque Government expenditure in Bizkaia was , in Gipuzkoa and Araba Bizkaia Regional Government expenditure in Social Salary , Gipuzkoa Regional Government expenditure in Social Salary and Araba Regional Government expenditure in Social Salary Main growth sectors/opportunities Information Technologies (IT), Harbours and Sea development industry, Energy 19

20 2.3. ENTREPRENEURIAL DYNAMICS The following figure shows the number of new registered businesses by employee size in 2006 and totals employing about people. Most of the registered businesses are micro companies (97,6%). Nevertheless they employ the 64,7% of the total new employment. The 2,3% of new SMEs employ the 27,4% of new employment and the new companies with more than 250 employees (0,1%) employ the 7,9% of total new employment. Figure 8: Number of new enterprises by Employee Size Total Nº. Employment The Service Sector is the most dynamic and active sector followed by the Construction Sector. The Industrial Sector is the less dynamic sector of the CAPV even it is our traditional and historical economic activity with only 600 new companies created in the sector. The 26,7% of total new companies are Business service companies. Table 7: Number of new enterprises by sector New Enterprises Nº. Employment Total C. Extractive industries - - D. Manufacturing industries E. Energy, gas and water F. Construction G. Commerce H. Hotel Business I. Transport, sttorage and communications J. Financing K. Business services L. Public Administration M. Education N. Health Services O. Other social activities Existing incubators or start-up centres have been mainly established around and promoted by Local Development Agencies, Centres por Enterprise Innovation (CEIs) and Bilbao, Donostia and Vitoria- Gasteiz City Councils. As it can be seen in Figure 9, the geographical situation of the existing 20

21 incubators or start-up centres in Araba are largely concentrated around the Vitoria-Gasteiz City. In Gipuzkoa they also mostly are concentrated around the City of San Sebastian but there are other incubators or start-up centres located in the western side of Gipuzkoa, exactly in Debagoiena and Debabarrena Counties, which has one of the highest GDP per capita in Gipuzkoa. Bizkaia s incubators or start-up centres are mainly concentrated around Bilbao City and the Metropolitan Area of Bilbao, such as Barakaldo, Leioa (next to the Basque Country University) and Basauri. Figure 9: Incubator or Start-up Centres geographical distribution Bizkaia Gipuzkoa Araba Special attention has to be paid to the Municipal Centre for Social Inclusion Enterprises established in San Sebastian 14 months ago. It consists on square metres and it is nowaday 85% occupied by three inclusive enterprises. It was promoted by the Social Affairs and Economic Departments of San Sebastian City Council that offers site and financial facilities to those people that intend to promote inclusive enterprises employing socially excluded people or people with difficulties in accessing the labout market. These people are recruited from Social Affairs and Economic data bases available at the City Council. Most of them perceive social salary. 21

22 3. THE POLICY FRAMEWORK 3.1. ADMINISTRATIVE CONDITIONS AND FRAMEWORK STATEMENT Administrative procedures for setting up a business are better than the European average(eu 27,5 days) It is possible to set up a company and test trade for a period without losing benefits There is exemption from tax, VAT and/or social charges for start-ups and companies below a certain turnover It is possible to combine self employment with other activities without extra cost or administrative burdens Integrated financial programmes are available to support unemployed/inactive people becoming self employed Employment and social security offices recognise and encourage the self employment option EVIDENCE Average time depends on type of business. Since the year 2003 the legal norms that regulate Limited Liability Companies (LLC) offer the possibility of arranging the paperwork and start-up for LLC's (SLNE) by electronic means, avoiding disruptions and delays for the entrepreneur and producing a substantial saving of time and costs. In 48 hours its possible to set up a company in the case of a sole traders. For the rest of the companies the minimum time is about 2-3 weeks, similar to the European average The self-employment social security regulation does not allow maintain the benefits. There is an exemption from specific tax like the ITP and AJD for cooperative businesses. There is also an exemption in the IAE if the new company does not reach a maximum of turnover. The Corporate tax, Impuesto de Sociedades (IS), is different depending on the type of business. The three Historic Territories has defined different Corporate tax rate. Any company has to pay between 30%-32,5% but A cooperative business usually pay the 21%. Thus, if they reach a minimum of employees and turnover they do pay the 19% It s compulsory to maintain two systems in parallel (self employment and general for employees, for instance), because of social security regulation. Public subsidies depend of the type of company you start up and the place you go for advice. The subsidy vary from to Specific loan programmes with low rates but it depends on Financial Institutions Possibility of ask for the unemployed subside left in one payment The Basque Government employment services, LANBIDE, have a specific guide that offers advice and support for entrepreneurs. 22

23 In Spain, a great effort is being made to facilitate the process for the creation and registration of corporations, through the Conference of Lisbon. Our country has been traditionally among the slowest in Europe; however this tendency is changing thanks to the use of the electronic system CIRCE, from the Dirección General de la PYME (it only runs for some Autonomous Communities not the CAPV), the Chambers of Commerce of all the local capitals in the province, Local Development Agencies, Social Agents and Private Sector, where the entrepreneur can find all the information and services necessary to start-up their company. As to what concerns the inclusion of the target groups in this present work, it seems that the rigid norms which regulate the regime and benefits to Social Security create obstacles in the compatibility of said benefits with the start-up of a business, as well as in the case of self-employment where these could be combined with those relating to standard employment in a separate business, without extra costs and/or administrative charges. Currently the system only allows for the capitalization of any pending benefit due the unemployed person that may want to create their own business. The unemployment benefits are automatically suspended with the beginning of a new activity such as selfemployment. In comparison with other countries in this study, like the UK and Germany, there is no threshold for VAT. All companies and self employed have to pay VAT regardless of their turnover STRATEGY FOR INCLUSIVE ENTERPRISE The entrepreneurial initiative has become a strategic factor in the economic and social development of the CAPV. As a result the Basque Government and different Regional Governments have developed and designed different programmes. Programme for the Promotion of an Entrepreneurship Culture There are different programmes and initiatives developed especially to promote and foster Entrepreneurship Culture in the CAPV. Thus, these programmes and initiatives derive from different public institutions such as the Basque Government, Regional Government of Gipuzkoa and Bizkaia, etc. 1. Inter-institutional Planning for Employment ( ) The Inter-institutional Planning for Employment ( ) developed by the Basque Government was devoted to promote entrepreneurship culture, self-employment and the start up of microcompanies and it has the following action lines: Sensitize actions among young people about entrepreneurship To stimulate about Business Creation Stimulation actions to generate new ideas that could end up in a new business activity Support for Business Plans Support to start up the new business Financial support for investments Management training from entrepreneurs Support for growing and consolidation through continuous improvement processes 23

24 2. ACT Nº 305/2000 of 26 th of December 2000 about Inclusive Enterprises, Basque Government It is the act that regulates the creation of inclusive enterprises, the process to start-up an inclusive enterprise and the act that creates the register for inclusive enterprises (see Annex 5). It is dependant from the Department of Justice, Employment and Social Security of the Basque Government 5. This law has facilitated the promotion of different initiatives such a: to provide the access of unemployed people to social economy enterprises and to promote self-employment opportunities. These two initiatives together with other initiatives have derived into the Basque Country Inclusive Planning, regulated by article number 15 of the Law against Social Exclusion. Under this Law and according to a publication from LAMEGI EQUAL project 6 in November 2007, over the last 8 years there have been created and promoted 61 inclusive and solidary enterprises from whom 45 were inclusive enterprises. There are 8 inclusive and solidary enterprises registered in Araba, 39 in Bizkaia and 13 in Gipuzkoa. Last figures results on 52 inclusive enterprises ( tml ). The sectoral distribution responds to (see figure 10): Figure 10: Sectoral distribution of Inclusive and Solidary enterprises in the CAPV Textil 3% Culture and leisure 3% New technologies 3% social services 7% Industry Assistants 3% chemical 2% food 2% Graphic Arts 5% Trading 3% Building 11% Consulting 3% Structure Assembly 7% Education 3% Kitchen Assembly 2% Transport and courier 3% Environmental Activities 20% Cleaning and Maintenance 11% Hotel, Restaurante and bar business 8% 42 of 60 inclusive and solidary enterprises have recently created the Basque Country Association of Inclusive Enterprises. This law has been reinforced by the recently approved Spanish Law 44/2007, on the 13 th of December 2007 (see Annex 6), who regulates the creation and registration of inclusive and solidary enterprises in Spain and that for the first time include social clauses in order to favour the participation of social enterprises in public procurements REAS Euskadi, 2007, Empresas de Inserción y Solidarias en la CAPV, EQUAL LAMEGI. 24

25 3. HASI eta HAZI programme It consists of several workshops at classrooms. It is an educative project oriented to develop human and personal competencies to carry out a project. Teaching material has been developed for children between 6 to 12 years old (guides for teachers and some material for students) to work on different scenarios oriented to teachers and adapted to each classrooms real case, where each student individually or by group- works on values associated to entrepreneurship culture. These materials have been developed on paper and CD-ROM. It is envisaged that all the material will be adapted for secondary school. 4. ENTREPRENARI programme It is a joint collaboration between a BIC Berrilan (CEI) and the University of the Basque Country (county of Gipuzkoa) to facilitate Knowledge and Technology Transfer processes by the start up of new Technology and Innovation based Enterprises and Knowledge Intensive Enterprises. This is conducted through: Promotion of entrepreneurship culture among teachers, researchers, fellowships and university students. Monitoring the process of start up of new projects into the market. 5. Empresa Joven Educativa (EJE) programe It is an initiative run by TKNIKA (Innovation Centre for Occupational Training) at Occupational Training Centres and its running in the CAPV at 20 centres. It is the objective of this programme to promote entrepreneurship culture across students and to overcome the fear to failure. Students have to create their own business. Among other things they have to negotiate the access to credits with Financial Institutions. For that purpose, this EJE programme is developed in collaboration with three basque financial institutions. 6. Gipuzkoa Emprendedora programe Gipuzkoa Emprendedora intends to promote entrepreneurship culture, foster entrepreneurship thinking, embrace new business creation and create a favourable environment for change and the creation of new SMEs and entrepreneurs. It has been developed by the Regional Government of Gipuzkoa. 7. Guide for Entrepreneurs The Innovation and Knowledge department of the Regional Government of Gipuzkoa publishes a special Guide for Entrepreneurs which comprehends different series on specific thematic editions about different aspects of entrepreneurship, that is, Innovation and Entrepreneurship Forum that allows different regional actors to establish their own entrepreneurship dynamics and Entrepreneurship School that checks all the efforts at the educational field, documentation, diffusion and participation processes made by a group of professionals on the field of entrepreneurship. 8. KOSMODISEA programe KOSMODISEA programme consists on a 12 months programme that pursues the promotion and fostering of entrepreneurship values and culture among primary and secondary education. It consist on and interactive and cooperative web based game In this first Kosmodisea edition has concluded into four main ideas and projects to be developed in a second phase and have participated 34 primary and secondary educational institutions, 76 teachers, 127 groups and 1037 students. 25

26 9. The Regional Entrepreneurship Monitor (REM) The Regional Government of Gipuzkoa gives support and monitorizes the well-known Regional Entrepreneurship Monitor (REM) study. This study reveals a long battery of entrepreneurship indicators for the region of Gipuzkoa and it is uses by the department to define, develop and implement new and innovative entrepreneurship programmes and activities. 10. TXEKIN programe The more traditional programme named TXEKIN gives advice, support and guidance to those who decide to start an entrepreneurship process. 11. EKINTZAILE programe It is an initiative launched by SPRI The Society for Industry Restructuring and Promotion (see figure 2) that aims to foster new and innovative business ideas coming from already existing companies, that is, it aims to promote intra-entrepreneurship. It is an initiatives developed in close collaboration with Centres for Enterprise and Innovation (CEIs see figure 2) that gives to those entrepreneurs along the process of start up by giving advice and support about infrastructure, etc. It gives support to new, technological and innovative business ideas. This support consists of a mentoring process to entrepreneurs from the idea definition and business plan to the final setting up of the business idea. 12. EMEKIN programme It is an initiative launched by the Regional Government of Gipuzkoa, Caja Laboral (Financial Institution from Mondragon Corporación Cooperativa, the best known cooperative movement in the world) and the Association of Business Women ASPEGI, who is responsible for the management of this programme. It is an initiative that will run from 2007 to 2013 and it is 50% co-financed by the European Social Fund. It is the aim of this programme to promote the opportunities to start up for women to gain and develop equal opportunities for men and women. It is the objective of this programme to promote employment by promoting new business ideas stirred up by women in the Historic Territory of Gipuzkoa through articulating an integrated and personalized mentoring system across the entire start-up process. There are several public and private entities certified to provide this integrated and personalized mentoring system across Gipuzkoa Territory. 13. SARBIDE programe SARBIDE programme promotes and facilitates self-employment opportunities for socially excluded people. It pursues the social inclusion of less favoured people through support to access to the labour market. It has been designed for those promoters or group of promoters that has a new start-up idea or project and employs people who have social difficulties to access to the labour market and for those tutelary projects that also employ people who have social difficulties to access to the labour market. 14. SUSTATU programe It was developed by the Regional Government of Bizkaia in 2004 to promote new business initiatives in the province of Bizkaia. 15. URRASTS-BAT programe The objective of this programme is to promote entrepreneurship attitudes among Occupational Training Schools. During , 35 occupational training schools have participated in this programme. During the first year of programme implementation they are encourage to identify entrepreneur people that wants to access to the labour market by setting up their own business. Afterwards, the objective is to start up a business enterprise per year. 26

27 16. PRONUE (Promoting New Business Ideas programme) This programme launched by the Regional Government of Araba aims to promote Araba s industrial activity through the start-up of new business ideas, diversification of existing industrial companies and to attract companies to the Historic Territory of Araba. It gives support to the start-up process of new and innovative business ideas. 17. HAZIBIDE, SEED CAPITAL It is a seed capital promoted by the Regional Government of Araba, Vitoria Council, TALDE and Caja Vital financial institution to give support to those SME and entrepreneurs who wants to develop their business activity or start-up a new business idea. Entrepreneurs can get a maximum of to develop their ideas. 18. EMPRENDER ON-LINE program It is an initiative developed by the Economic Department of Vitoria-Gasteiz Council, city capital of Araba. It is the objective of this programe to promote and boost entrepreneurship culture and values among young people. This programe intends to contribute to a more creative, active, self-confident and socially responsible young people. It is an on-line interactive programe developed for teachers and students at Secondary Schools, which in a playful and didactic way to facilitate to work on those attitudes and values associated with entrepreneurship culture, such as plannig, creativity, working groups, observation, curiosity, information search, etc. 19. AJEBASK ARABA It is an Association created by Young Businessmen and Businesswomen settled in the province of Araba. It is their objective to promote young entrepreneurs interests and give support to the start-up of new business ideas in order to contribute to economic and social development of their community. It manages a start-up centre that gives temporary support to recently created enterprises that comes from NYE. It is the objective to promote and support those innovative enterprises that will contribute to the creation of employment in this NYE. Services to Entrepreneurs There are complete entrepreneur services in all the counties distributed along the three provinces. There could be identified different places which are the first step where a person can go searching for help to set up a business. They all usually work with no specific target group but there are some social and voluntary private entities that work especially with disadvantage people. There are other entities focused in the development and creation of a specific type of companies such as cooperative businesses. The following figure resumes the available infrastructure: Figure 11: Services and infrastructure for Entrepreneurs Centre for Enterprise and Innovation (CEI) SPRI Society for Industry Restructuring and Promotion Chambers of Commerce Local Development Agencies Specific target group support Social and Voluntary Agents 27

28 As it can be appreciated in the figure above, there are six different ways to access to entrepreneurial processes. The Centre for Enterprise and Innovation (CEI) aims to stimulate and promote the creation of new entrepreneurial activities, preferably on innovative fields and technologically advanced ideas, to foster and enable the creation of not easy-off-shore jobs. The SPRI is the Basque Government s Agency for Enterprise Development whose mission is to support and give service to all kind of Basque Entrepreneurship and Enterprises. The Chambers of Commerce, settled each in one historic territory, give service and support to all kind of entrepreneurs and businesses. Local Development Agencies are public based agents that give also support to all kind of entrepreneurs and businesses and can also rely more on a specific group (women entrepreneurship and/ or focused on immigrants) depending on the area they cover and represent. There are also other private and social agents who reach and give support to specific target groups or to a specific type of business, as in the case of the creation of cooperatives. The business project incubators also are a resource used by entrepreneurs when they are thinking to run a business. All of them have an information service attended by an advisor. The SPRI, the Centre for Enterprise and Innovation (CEIs) and Local Development Agencies have their own incubators that are used by entrepreneurs for a maximum period of three years. The Regional Government of Bizkaia granted an order to develop ELKARTEGIAK, different building and infrastructure available for entrepreneurs in different municipalities across the province of Bizkaia. Entrepreneurs are also invited to stay for a maximum period of three years but they are not attended by an advisor. The main gaps for all the disadvantaged groups are produced by the double system they have to use to reach for advice. In the CAPV there are a completed separation between the social services and the entrepreneur s information system. That means that social advisers do not have information and training in business creation to help and aim the entrepreneurs. The business advisers know the real needs of the focused groups such as women, immigrants and young people under 30 but they do not know the real needs of even more disadvantaged groups with personnel and professional problems and real difficulties to access to the labour market. 28

29 4. STAKEHOLDER ASSESSMENT OF POLICIES FOR INCLUSIVE ENTREPRENEURSHIP 4.1. INTRODUCTION TO SECTION The tables shown in Annex 1 are the averaged scores obtained from piloting the tool with 5 policy makers, 18 specialist advisers and 19 entrepreneurs across the CAPV. In the tables for the specialist advisers and entrepreneurs separate columns provide responses for different target groups. The advisers completed the columns for the particular groups which they provided specialist support for. In this case there are no responses or specialist advisers only focused on people older than 50 years, young people under 30, people with disabilities and social enterprises. Most of the respondents were offering support to no specific target groups. Entrepreneurs were selected to provide feedback across each of the target groups but eventually there are no entrepreneurs from migrants and ethnic minorities and disabled people. Any comments given in the far right hand columns are examples of good practice identified by the interviewees. The averaged results are coloured Green (score over 3), Yellow (score 2-3) and Red (score less than 2). Table 8 is a snapshot from Annex 1 and illustrates how this method provides a visual framework from which questions can be raised as to Why? and what can be done to address this? Shown in table 8 are the average scores from the interviews with entrepreneurs for the statements relating to creating the culture for entrepreneurship. Table 8: Average Scores for Entrepreneurs for Start Up Support No specific target group Unemployed Women Mgrants and ethnic i iti 50 plus CREATING THE CULTURE FOR ENTREPRENEURSHIP Young people under 30 People with dissabilities Social enterprises The advice system is easy to access and to get around The business support available is friendly and answers my needs 2, ,8 2,5 2, I have had access to a mentor 3,2 3 3, Specialised training and materials are available which meets my needs It is possible for me to obtain recognition and accreditation for training and experience which reflects my real skills there are networking opportunities for start ups like ourselves There are affordable business premises with easy enter conditions (short leases, etc.) 2,8 3 2, ,25 4 2,5 2 2, , ,5 3 1,8 1,75 1, AVERAGE SCORE 2,614 2,321 2,428 2,428 1,964 2,428 29

30 We can see from the Green cells in Table 8 for the first statement that all entrepreneurs in the pilot study from almost all the groups states that they had access to a mentor. However when asked about affordable business premises with easy enter conditions all groups except young people under 30 disagreed with the statement. Graphs have been drawn to provide examples of the potential value of the tool in evaluating and comparing results obtained. Figure 12 shows the averaged responses from policy makers for each statement under the theme of culture and conditions. From this, we would be able to identify where there are responses which indicate good practice (the highs) and where there are potential gaps or areas of need (the lows). Figure 12: Average Scores from Policy Makers for Culture and Conditions Policy Makers Average score-culture 4 3,5 3 2,5 2 1,5 1 0,5 0 Schools and colleges have introduced entrepreneurship Teachers have been trained on enterprise issues Specially adapted teaching materials have been developed Students form real or simulated companies Businesses are regularly involved in school activities. Ssetting up a business is presented comprehensively Events and trade fairs targeted at start ups take place regularly There is prestart support for building entrepreneurial It should be noted that this was a pilot study to test the tool, the process and the appropriateness of the questions. The number of individuals interviewed was small and in some cases there may be only one response per column for advisers and entrepreneurs. It is therefore difficult to draw many conclusions from the results and this supports the need for tool to be applied and analysed by experts who have the appropriate knowledge and experience ENTREPRENEURSHIP STRATEGY This section has been only evaluated by Policy Makers in order to explore about the Entrepreneurship Strategy developed in the CAPV. Figures in Table 8 show in general poor scores. The first statement intends to explore whether there is a global strategy for encouraging entrepreneurship or not across the Basque Government and Regional Governments. Although they all recognise that there are lots of initiatives around entrepreneurship, lots of public and private institutions working in the area of entrepreneurship and many resources compromised and involved to foster entrepreneurship in the CAPV they all agree that there is no a global Strategy that encourages entrepreneurship in the area. In the same case the all agree that there is no a Strategy that takes into account especially the needs and characteristics of disadvantages areas and groups analysed in this study. They all approach entrepreneurial activities in a general way. Nevertheless, there have been significant advances in regulating and fostering Social Economy through the impulse experienced by cooperative businesses and through the regulation and definition of the new law regarding Inclusive Entrepreneurship approved by the Spanish Parliament on the 13 th of December 2007, and a specific entrepreneurship programe for women under the already mentioned EMEKIN program. 30

31 In the issue The main organisations work together the policy makers agreed that the main public and private organisations do not work together at all; it holds the poorest score. As it has been stated in the previous page, there area lots of initiatives and entities working in the area but they all run and manage their own entrepreneurship programmes and action lines. Figure 13: Average Scores from Policy Makers for Entrepreneurship Strategy Policy Makers Average score-strategy 4 3,5 3 2,5 2 1,5 1 0,5 0 There is an overall strategy for encouraging entrepreneurship in the area There is a strategy w hich takes account of the needs of disadvantaged areas and groups The main organisations w ork together KEY AREAS OF IMPROVEMENT To develop an overall and a global strategy that embraces and coordinates all the local and regional initiatives, programmes and resources invested in entrepreneurship To develop a more comprehensive and inclusive entrepreneurship strategy in harmony with the previous overall entrepreneurship strategy To establish and define collaboration and coordination methods and patterns across all the public and private institutions working in the area 4.3. CREATING THE CULTURE AND CONDITIONS FOR ENTREPRENEURSHIP Policy Makers In general policy makers disagreed with the format and the range of the statements and they are all red coloured, apart from the one related to Events and Trade fairs and the pre-start support that scores well and is green coloured (Annex 1). Policy Makers found this area to be somewhat worse by contrast with that of the advisors. The policy makers agreed about the low level of activity that has been undertaken in this area over recent years in the Educational System of the CAPV. Nevertheless, they recognise their lack of awareness about these statements because of a lack of departmental communication and consciousness about the different programmes and initiatives run by the different Regional Authorities. Although Policy Makers agree there are some seminars and talks about entrepreneurship at schools they were not able to respond in a positive way regarding the statement schools and colleges have introduced entrepreneurship into the curriculum. However, they recognise that some efforts have been made to define and introduce entrepreneurship materials in the curriculum of Occupational 31

32 Training Schools, Secondary School and with young people that are not at school but with scarce success. Almost the same situation is replicated regarding specially adapted teaching materials have been developed although they were not aware about their final application. Other weaknesses they appointed is due to those enterprises that do not regularly become involved in educational system activities. From Figure 12 the statement Teachers have been trained to work on enterprise issues shows a low score and is a red cell (Annex 1). It was commented that at the moment there are no this kind of initiatives across the CAPV. They all recognise the need to embed entrepreneurship and enterprise within core teacher training programmes. The yellow cell (Annex 1) and the high in Figure 12 support the existence of Events and trade fairs for start ups that are tailored regularly by the three capital cities (Donostia, Bilbao and Gasteiz). The green (Annex 1) and high in Figure 12 holds up the pre-start support for building entrepreneurial capacity and business ideas. They comment this is provided by Local Development Agencies. Specialist Advisers Figure 14: Summary of Enterprise Culture score by specialist advisers 4 3,5 3 2,5 2 1,5 1 0,5 0 no specific target group Unemployed w omen migrants and ethnic minorities 50 plus Young people under 30 People w ith disabilities Social Enterprises There are (prestart) capacity and confidence raising activities among target groups and communities. Teaching materials relate to specific groups role models relate to specific groups As it has been already stated there are no advisers especially focused on supporting people in their 50 s, young people under 30, disable people or social enterprises. They all work in general terms with no restriction. In this case advisers are much more positive than policy makers are regarding the statements about programmes and activities that foster entrepreneurship culture and conditions. As seen from Figure 13 the availability of pre-start activities, teaching materials related to specific groups and role models score similarly. Especially, they evaluated very positively the efforts that are made in pre-start capacity and confidence raising activities among target groups and communities and in the development of teaching materials related to specific groups. The CEIs commented they usually collaborate with Universities in promoting entrepreneurship by seminar, talks, etc. among researcher groups. They have now started the programme named KOSMODISEA to promote entrepreneurship culture at primary and secondary schools. In this case, teaching materials are adapted to children between 6 and 16 year old. Nevertheless, all advisers come together when they say that pre-start activities, teaching materials and role models are not sufficiently developed or oriented to migrants and ethnic minorities. Advisers commented that the provision in all regions across the CAPV was variable and challenges will be to mainstream existing provision and investigate provision for migrants and ethnic minorities. The tool could be adapted to identify the gaps across regions in specific themes. 32

33 Entrepreneurs Entrepreneurs do not find straightforward and quick all the administrative processes required for setting up a business, they score the statement poorly. Generally speaking, they find these processes as complex, slow and never ending stage. Some of them have opted for setting up the company by the guidance of a private consultancy company. I was exposed to enterprise ideas at school produced very low scores for all groups. I attended events and trade fairs also produced very low scores as they are red coloured cell (Annex 1). Although policy makers stated there are some events and trade fairs especially organised for entrepreneurs, not many entrepreneurs had attended events and trade fairs. An entrepreneur commented Events are often held in the day or at working time and I am unable to attend. Very few entrepreneurs have attended these events, but they find the experience very positive and interesting. Figure 15: Summary of enterprise culture scores by entrepreneurs Average Score 3,00 2,50 2,00 1,50 1,00 0,50 0,00 I found the administrative processes for setting up a business straightforw ard and quick I w as exposed to enterprise ideas w hile at school Entrepreneurs like me are w ell presented in the media I have attended events and trade fairs targeted at start ups There are role models to encourage people like me to go into enterprise It is remarkable that the presence of entrepreneurs in the media for social entrepreneurs and people older than 50 years old score green (high peak in figure 15) in comparison with the rest of targeted groups. Especial focused has been paid to people in their 50 as unemployment rates started to rise slightly and Social Enterprises started to grow rapidly because of the recent law approved by the Spanish Parliament. Nevertheless, entrepreneurs and some advisers find that entrepreneurial people are becoming a reference for the society. For example, MIK S.Coop. is collaborating with the Regional Government of Gipuzkoa to promote and develop the entrepreneurial culture through films and TV digital material. It can be visited at (see Annex 4). 33

34 KEY AREAS OF IMPROVEMENT Introduce entrepreneurship into the curriculum of the Educational System (policy makers) Involve businesses in the activities that are conducted in schools and train teachers to work on enterprise issues (policy makers) Streamline and accelerate the existing administrative processes for the creation of enterprises (entrepreneurs) More frequent and adapted events and commercial fairs for start-ups taking into account their characteristics and needs (entrepreneurs) Ensure that the mass-media correctly portrays the entrepreneurs (policy makers and entrepreneurs) 4.4. START-UP SUPPORT AND TRAINING Policy makers Over the past six years the number of programmes available to support the creation of new businesses has increased dramatically in the CAPV. Some programmes are provided through the Basque Government and Regional Governments in provinces in collaboration with mainstream support organisations and most of them have been developed through support from European structural funds (see point 3.2. and Annex 2). The Basque Government and Regional Governments have developed different entrepreneurship programmes that provide support and guidance for new and existing businesses. This support and guidance is offered and delivered by different public and private organisations accredited by the Government. As it has already been stated there is only one inclusive entrepreneurship programme focused especially on women and it has been recently introduced. This availability (scored green by policy makers) is reflected by the green cell from advisers and yellow cell from entrepreneurs that consider a little bit more complex to access to the advice system. The availability of affordable business premises scored yellow because although there has been developed an incubator strategy, these incubators are not spread equally among all the advisers nor the three territories. Thus, all the incubators are already fully occupied. At the moment there is only one Centre for Inclusive Enterprises and it is located in San Sebastian (Gipuzkoa). Specialist Advisers Figure 16 shows the average score given by advisers to each of the statements in the theme of startup support and training and the overall average score for the theme. The advisors view here is more moderate. From figure 8 accesses to business information and business advice and planning methods adapted to the needs of each target group is seen as good ( green cells). Another good point is the fact the outreach services go into communities to reach target group. Nevertheless it is not usual they go into communities to reach target groups unless advisers focus especially in these target groups (for example Social Agents of some Local Development Agencies). From our understanding this statement has not been correctly understood by many advisers. 34

35 Figure 16: Summary of Start up support by specialist advisers Advisers Average Score 4,00 3,50 3,00 2,50 2,00 1,50 1,00 0,50 0,00 Access to business information Mechanisms for finding out barriers Outreach services Mentors/coaches Business advice and planning methods Quality standards Accredited training Incubators or start-up centres The principal weakness is the lack of mentors/ coaches with real business experience recruited from the community to work with entrepreneurs. A secondary weakness is the lack of sufficient incubators and/or centres for newly-created business, and especially for women. From Annex 1 it can be noted the averages for this statement is marked by the red cells for advisers working with women. Understanding the barriers and needs, quality standards and accredited training have not been fully addressed but are positioned around the average score. Business advisors are sensitive to the needs of target groups but they are not officially accredited by any institution. In this case, the Basque Government and Regional Governments, depending on the entrepreneurial programmes and actions, decide which entities are accredited to provide support and guidance to entrepreneurs. Then, advisers are trained in these entrepreneurial programmes and actions defined by the Government. Entrepreneurs In general (see figure 17), there is a slightly less positive perception held by entrepreneurs than that of the advisors. For the entrepreneurs there are more weaknesses. The main weakness is found in the access to affordable business premises with easy to enter conditions. Entrepreneurs comment that all the incubators available are busy and thus they are designated for industrial or high tech projects and not for commerce or services. Other entrepreneurs say rentals are very high for a new business. A second weakness relies on the recognition and accreditation for training and experience reflecting their real skills. They do not obtain any especial recognition for training and experience when they setup the company but most of them agree that it could not be very difficult to accredit their experience. Entrepreneurs also think that the advice system could be improved in order to make it less complex and straightforward. 35

36 Figure 17: Summary of Start up support by entrepreneurs Average Score 4,00 3,50 3,00 2,50 2,00 1,50 1,00 0,50 0,00 The advice system is easy to access and to get around The business support available is friendly and answ ers my needs I have had access to a mentor Specialised training and materials are available w hich meets my needs Possible to obtain recognition and accreditation w hich reflects my real skills there are netw orking opportunities for start ups like ourselves There are affordable business premises w ith easy to enter conditions The main strength is the access to a mentor. Every target group except young under 30 say they have continuously access to a mentor. Advisers have even commented there is always a mentor at incubators to give support to entrepreneurs. They also count positively that training and materials meet their needs, especially for unemployed people and people over 50s. An area of need which arose during the interviews was that several entrepreneurs lacked networking opportunities except for those entrepreneurs operating in high-tech sectors that gain access rapidly to the existing sectoral support systems and networks. KEY AREAS OF IMPROVEMENT There is a lack of mentors/ coaches with real business experience, recruited from the community to work with entrepreneurs (advisors) The lack of space in the existing incubators or start-up centres and the access to them (advisors and entrepreneurs) To provide networking opportunities for start ups (entrepreneurs) Need to be sensitive to the need of recognize and accredit training and experience which reflects the real skills of entrepreneurs (entrepreneurs) 4.5. SUPPORT FOR CONSOLIDATION AND GROWTH Policy Makers First comment of many of policy makers interviewed is that consolidation and growth is one of the most ignored areas when working with entrepreneurs: Lots of effort are done at the beginning and after consolidation it looks like as they got to survive alone, There is much more support for Business Creation that for subsequent operational running are some selected comments in this sense. The above comments explain clearly why the average scoring of Consolidation and Growth is low, as can be seen in Figure 18, which means that Policy makers are not very keen on services but especially not on premises. In this sense, it is remarkable the fact that none of the policy makers interviewed rated premises higher than services. 36

37 Concerning the extremely low punctuation scored by question Premises for post start ups some comments stated by policy makers can help to explain this: Only fixed assets investments are financed, not premises or infrastructures and recently constituted companies are allowed to stay in incubators during 3 years, after that they definitely have to leave the place for others and there not exist protected premises for those companies leaving incubators. Figure 18: Consolidation and Growth from the Policy maker s point of view Policy Makers Average score-consolidation&growth 4 3,5 3 2,5 2 1,5 1 0,5 0 Post-start up support is easily available it is easy to find information for business development (products, markets, export, technology..) Premises are available for post start ups Specialist Advisers The average score for support for consolidation and growth amongst advisers is above 2.5, which means they are relatively happy, except in two facets: There are business to business networks around cluster which are open to all entrepreneurs, with three main groups of responses to justify the scoring (form negative to positive): Simply such networks don t exist in their territory, Big regional clusters such as Biotechnology or Machine Tool where individual entrepreneurs have difficult access and finally Only road goods transportation (due to CAPV border with France) and Storefronts, and Public procurement procedures have been made accessible to local, private and social enterprises. This area scores low because normally Public contracts are issued through public open calls where every company can bid independently of their size or location. However, when contracts don t go through public calls (low budget contracts) local, small companies are promoted. Finally, as a positive aspect in this area, the Municipality of Barakaldo is set to include Social Clauses on their Public Contracts such as: Companies bidding need to have a Gender Equity Plan, Work-life balance plan, etc. Now this changes positively due to the new Spanish Law on Inclusive Enterprises. Migrants and ethnics minorities score in the average of other groups except in two parts: Business to business networks and Accessibility to Public Procurement Procedures, curiously the same areas quoted above. According to advisers of these collectives, the reasons that explain this low punctuation in both cases are, on the one hand, the isolation and difficulty to relate with others outside their nationals and on the other hand they don t show much interest on taking part in public contracts or contests. 37

38 On the other hand, advisers working specifically with unemployed entrepreneur score on top the average nearly in every aspect. From the answers provided by this group it is inferred that high rating is due to the fact that in the phase of Consolidation and Growth entrepreneurs that have been previously employed (in same or similar sector) have a better understanding of the market and more easy access to networks, premises and so on. Figure 19: Consolidation and Growth from the Advisers point of view 4 3,5 3 2,5 2 1,5 1 0,5 0 More advanced business information and advice on technology, markets, export is accessible to all entrepreneurs Premises are available for post start ups There are healthy business to business networks around clusters/sectors which are open to all entrepreneurs Public procurement procedures have been made accessible to local private and social enterprises no specific target group Unemployed women migrants and ethnic minorities 50 plus Young people under 30 People with disabilities Social Enterprises Average Score by Question Entrepreneurs As can be seen in figure 20, accordingly with advisers, entrepreneurs also score low on average the fact that find easy to join mainstream business networks in their regions. Also, it scores low the piece of information referring to sufficient premises of an affordable nature to allow for business growth, matching in this case agrees with the low scoring also presented by Policy makers on this same issue. What is really surprising is that entrepreneurs look more optimistic towards the fact of accessibility to Public sector contracts than their fellow advisers, especially Social Enterprises and 50+. These high scores might derive form the fact that under a certain budget public contracts don t need to go through Public Call and can be assigned directly to selected (social enterprises) local companies. Other comments gathered from these groups accentuating high scores are: It is easier when you rely on Local Development Agencies that know the nuts and bolts of public contracts or On bureaucracy issues local entrepreneurs have preference over no residents (especially, when contracts don t need to undergo a Public Cal ). Finally underline one curious fact: Young people under 30 and Unemployed score systematically in all questions below the average of the 8 interviewed groups, as can be seen in figure 11. While in the case of Young under 30, the explanation can be that most of them are still in early stages of starting up and have not awareness of what is available on this stage, in the case of Unemployed we cannot find a clear explanation for this pessimistic scoring and a further research should be done in order to be able to launch hypothesis on this issue. 38

39 Figure 20: Consolidation and Growth from the Entrepreneurs point of view 4 3,5 3 2,5 2 1,5 1 0,5 0 All entrepreneurs are able to obtain high quality advice for a period after start up Entrepreneurs like us can easily access high quality training in the areas required for business expansion (ITC, marketing, financial management ) It is easy to join mainstream business netw orks There are sufficient premises of an affordable nature to allow for business grow th Public sector contracts are accessible to entrepreneurs like ourselves no specific target group Unemployed w omen migrants and ethnic minorities 50 plus Young people under 30 People w ith disabilities Social Enterprises Average score by Question Finally in this part of Support for Consolidation and Growth we venture to draw the following general facts: KEY AREAS OF IMPROVEMENT Further work has to be done, mainly by advisers and policy makers, to ease the access and join of entrepreneurs to mainstream business networks around clusters/sectors already up and running in the CAPV (Advisers and Entrepreneurs). Clearly, there exist a lack of sufficient premises and infrastructure of an affordable nature to allow for post start up (Policy makers and Advisers) It is clear that exists unadjusted between professional adviser s skills and knowledge and new collectives of entrepreneurs (Migrants and Ethnic Minorities) knocking on their doors Why not train as professional advisers members of the different Migrants and Ethnic Minorities in order to provide advice to their nationals in a more natural and trust building way? Some are already testing this approach: Association of Community based Business Advice, 39

40 4.6. ACCESS TO APPROPRIATE FINANCE Policy makers Figure 21: Policy Makers survey on Access to Appropriate Finance Policy Makers Average score-accessfinance 4 3,5 3 2,5 2 1,5 1 0,5 0 subsidies are provided to business start ups Loans are affordable and easily available Financial management support is available From the Policy makers point of view, the most valued service offered to entrepreneurs are the subsidies provided to business start ups, which are mainly destined to cover viability studies and consultancy, but no premises or networking. Perhaps it could be useful to improve the questionnaire to prompt policy makers the access to finance in different stages: Start up and Consolidation & Growth. Next score goes for loans affordability and availability. Some tools or mediators quoted as being used to support financially entrepreneurs are: Microcredits, Solidarity Banking, EQUAL projects have opened the path but still much work to do. Entities start to be more sensitive on these issues and Ethic Banking as FIARE Foundation constituted in 2003 in CAPV. Finally the lowest score goes to Financial Management Support, in fact all Policy markers interviewed answered that, although some training in Financial Management is offered in the roadmap to setting up the business, as far as they know most entrepreneurs subcontract these services to externals. One opinion in this sense affirms: Entrepreneurs haven t got a clue of enterprise financial management issues, so they have to spends resources and rely on private accounting firms. Specialist Advisers Specialist Advisers spread all over the territory stated that their entities have collaboration agreements with different local Savings and Loans Banks that allow entrepreneurs backed by their institutions to access loans and micro credits in favourable conditions. 40

41 Figure 22: Specialist Advisers survey on Access to Appropriate Finance 4 3,5 3 2,5 2 1,5 1 0,5 0 Mechanisms are in place for finding out the real financial needs of different kinds of entrepreneurs Specialist micro finance providers w ork together w ith business support organisations and financial institutions Banks provide debt crisis advise policy incentives exist to encourage for financial service providers to provide services to the socially excluded e.g. community reinvestment act grants are fast and flexible and help cover the most important start-up costs (running costs, advice, test trading ) financial management support is available w ith grants and loans no specific target group Unemployed w omen migrants and ethnic minorities 50 plus Young people under 30 People w ith disabilities Social Enterprises Average Score by Question A curious fact reflected in Figure 22 is that average score on question Financial Management support is available with grants and loans stands under the media but the different specialist advisers interviewed quoted as least 4 different entities supplying this service: INEM Employment National Institute, their local Development Agency, TXEKIN and BIZKAIBERRI which are specific programs from the Regional Government of Gipuzkoa and Bizkaia respectively. This paradox can be explained by the difference between Financial Management Advice that can be offered superficially by any of the above entities and Day to day, real and practical company financial management that need to be subcontracted to professional accounting companies. Where definitely the Specialist Advisers scoring is at its minimum is in the question Policy incentives exist to encourage financial service providers to provide services to socially excluded with many of them simply don t know about it and others saying that only Saving and Loans banks provide these services but just for very special and rare cases. However the highest scoring are for questions such as Mechanisms for finding the real financial needs of different kinds of entrepreneurs cause for all advisers represents a must-check point in their roadmap previous to constitution of the new company. Also high rating gets the part of Working together of Micro finance providers, business support organisations and financial institutions derived from the collaboration agreements signed between Entrepreneurs support agencies and Savings and Loans banks as stated before. A group of specialist advisers especially critic with Financial issues is the one dealing with Unemployed entrepreneurs, maybe due to the fact that their clients look to be under more pressure on economic issues and subsistence that other entrepreneur groups. 41

42 Entrepreneurs Figure 23: Entrepreneurs survey on Access to Appropriate Finance 4 3,5 3 2,5 2 1,5 1 0,5 0 Banks provide a w ide range of financial products to entrepreneurs like us It is easy for all to open a current based bank account Public grants help cover some of the most important costs of setting up a business and are easy to access. no specific target group Unemployed w omen It is easy to get support for managing the financial aspects of the business migrants and ethnic minorities 50 plus Young people under 30 People w ith disabilities Social Enterprises Average Score by Question As presumable the highest score goes to It is easy for all to open a current bank account due to the fact that in Spanish banking system to open an account is an straight forward operation and also by the fact that the collective more vulnerable to this issue which are Migrants and Ethnic minorities are not as numerous in the survey as the rest of groups of entrepreneurs. Another remarkably aspect observed in figure 23 is that Young people under 30 score systematically in all questions below the average of the 8 interviewed groups. This opinion might derive from the evidence that banking system used to be more reluctant to offer loans and credits to young people due to the fact that normally have less material assets (car, house, savings ) to serve as collaterals or guarantee in case of failure. In general, all entrepreneurs agree in the fact that it is easier for them to access financial support from banks and microfinance providers when they associate to entrepreneurs support entities and have undergone the whole roadmap that ends in constitution of their business. Referring the question Public grants help cover some of the costs of setting up a business and are easy to access all agree that are important but always arrive late Always come late, better you have some savings or ask for a loan, They just help you to start, They just help, you can start up a business just with these grants, Sometimes they promise more that what we finally get Finally in this part of Access to Appropriate Finance some areas of improvement and recommendations can be drawn: 42

43 KEY AREAS OF IMPROVEMENT Some kind of day to day real accounting and financial management needs to be implemented in order to discharge entrepreneurs from subcontract burdens. (Advisers and Entrepreneurs). Encourage financial service providers to provide their services to socially excluded is an area that clearly needs to draw our attention if we want to take advantage of their entrepreneur spirit and redeem them from the black market, social benefits and so on (Policy makers and Advisers). Clearly banks and micro finance providers must wide the range of financial products negotiated with Entrepreneur s support agencies to be offered to entrepreneurs and ease the conditions to access those. Some pressure has to be put on these entities by policy makers, advisers and society in general. (Policy makers and advisers). 43

44 5. SUMMARY OF KEY STRENGTHS AND AREAS FOR IMPROVEMENT IDENTIFIED BY STAKEHOLDERS 5.1. INTRODUCTION The tables in Annex 1 showing the averaged results for each statement for policy makers, specialist advisers and entrepreneurs within each target group have been discussed in section 4. The samples used in the pilot are small and as outlined the aim of this study was to test the tool not to undertake a comprehensive review of the support system within the CAPV. Form the interviews performed with key stakeholders in enterprise support some areas have been identified as good practice or as a gap or challenge which needs to be addressed. These are summarised in the next section STRENGTHS AND CHALLENGES OF THE ENTERPRISE SUPPORT SYSTEM Table 9: Summary of Strengths and Weaknesses for the CAPV from Piloting of Tool Strengths Strategy Lots of initiatives and programmes at regional and local levels Lots of public budget for entrepreneurship activities Lots of people working in the area of entrepreneurship Culture and conditions Start-up Support Growth and Consolidation Access to Finance Entrepreneurship culture growing up Pre-start support is good Growing development of adapted teaching materials Access to a mentor Lot of people giving support and advice Subsidies and grants to start up There is free access to mentoring for Social Economy Enterprises Great competitive activities between Financial Institutions Special financial service provides, Cajas de Ahorro through their Social Tasks programme Weaknesses The need for an overall and a global strategy to coordinate all local an regional initiatives Lack of a more comprehensive and inclusive entrepreneurship strategy There are no collaborations and coordination methods and mechanisms The need to embed entrepreneurship and enterprise within core teacher training programmes Pre start support 50 plus, people with disabilities and young people under 30 More events in regional areas Involve businesses at schools Complex and slow administrative processes for star up Coordinated support for start-up Patchy provision of incubators and lack of space Lack of specific mentors for people with disabilities Lack of mentors with real business experience Scarce access to networking opportunities Need for more joined up approach for growth Availability and accessibility of premises for post start up Mainstream business networks around clusters/ sectors Raw variety of financial products for entrepreneurs Banks need to provide more debt crisis advice Need for financial management support for grants Scarce financial sevices for socially excluded community 44

45 In the CAPV the strategic framework for entrepreneurship, through the different entrepreneurship programmes and actions, has historically been very active and much activity over the past 6 years has been driven forward from this. This has been based on principles of opportunity for all although some programmes and services have been oriented for high-tech based new enterprises. The challenge for the future will be to ensure sustainability and mainstreaming in the Educational System. Access to European structural funds has led to substantial increases in entrepreneurship and enterprise development especially for women entrepreneurship programmes. Expanding the use of the tool in the CAPV would help identify the good practices across provinces and counties in the CAPV and where gaps exist in provision. This would help identify areas for targeting of projects under new structural funds. Developing an enterprise culture in the CAPV is still a key challenge for the Basque Government and Regional Governments. Changing attitudes and embedding entrepreneurship education are key actions that are already producing and will produce a wide number of initiatives as outlined in Annex 2. Ensuring a coordinated regional programme of support and creating more new businesses could also be key actions. The need for a more coordinated action among the different departments in the Government seems to be evident. The potential partnership has been a good example of some organisations working together to deliver enterprise across a wide range of target groups. Finance or more appropriately access to finance and support to manage finance has been identified through the study as an ongoing need to be addressed. This is particularly relevant in the new era of growth businesses which new European Structural funds will be directed towards. The tool could be used to target growth sectors to investigate the needs and gaps particularly for under represented target groups. 45

46 6. POSSIBLE SOLUTIONS FROM OTHER REGIONS The tool has been piloted in Wales, Belgium, Spain, Germany and Portugal. Each country will report on their experiences in working with the tool and have identified good practice. The next stage will be to share these experiences and the good practices from other countries which could provide potential solutions for the further development of inclusive entrepreneurship in our own countries. The Community of Practice on Inclusive Entrepreneurship builds on the work carried out over the last five years by nearly 300 EQUAL development partnerships that have tested methods for opening up the process of business creation to all members of society. Many of the 12 countries involved in this work created National Thematic Networks to exchange and mainstream their findings. The Community of Practice has also drawn heavily on the work carried on within EQUAL in the Social Economy and from other EU, national and international programmes on entrepreneurship One of the most remarkable results of all the work within EQUAL was that, although the definitions vary slightly in each Member State, the main themes dealt with in business creation were very similar across the countries. They have been described as the four parts of an entrepreneurial ladder out of social exclusion :- creating the culture and conditions for entrepreneurship; integrated start-up support and training, support for consolidation growth and access to appropriate finance. The fact that so many projects were concerned with similar issues was one of the reasons for designing the tool for inclusive entrepreneurship around the same four themes. This allows the Community of Practice to create a bridge between the strengths and weaknesses in the business support system detected by the tool and the good practice that has been developed by EQUAL and other pilot (and mainstream) initiatives in other countries. So far seven countries or regions have provided over 100 examples of good practice. These are Germany, Spain, the UK, Portugal, Flanders, France and Wallonie. But the aim is to extend and improve the data base as more countries and regions become members of the Community of Practice The search facility and data base on the COPIE website allows people to search for new ideas which are directly linked to their areas of weakness. For example, if the tool for inclusive entrepreneurship indicates that there is a particular weakness in providing microfinance to ethnic minorities, it is simply necessary to go to the data base and click on the button for appropriate finance this then shows all the cases that have been found on this subject. The searcher can then either home in on a more precise category of project like microfinance or they can look at all the projects that have focussed on a particular target group like ethnic minorities. 46

47 THEMES AND SUB THEMES NO SPECIFIC TARGET GROUP FORMERLY UNEMPLOYED WOMEN MIGRANTS AND ETHNIC MINORITIES 50 PLUS YOUNG PEOPLE UNDER 30 PEOPLE WITH DISABILITIES SOCIAL ENTERPRISES PROGRAMMING RESEARCH, STRATEGY, MONITORING, EVALUATION CREATING THE CULTURE FOR ENTRE-PRENEURSHIP Click Click Click Click Click Click Click Click Click Click Click Click Click Click Click Click START UP Click Click Click Click Click Click Click Click CONSOLIDATION AND GROWTH Click Click Click Click Click Click Click Click ACCESS TO APPROPRIATE FINANCE Click For example, in both Berlin Mitte and Flanders the tests carried out with the tool for inclusive entrepreneurship suggested that entrepreneurship education should be improved in schools through the provision of materials and the better training of teachers. A search of the data base of good practice in the COPIE website, shows up a range of helpful examples, including the experience of Valnalón in Asturias. In order to foster the early development of entrepreneurship skills in Young people Valnalón has designed programmes for each educational stage with specific training materials for teachers, students and parents. More than 16,000 students are now using them in the region and the methods have been applied in several other regions and countries In Wales, the tests using the tool for inclusive entrepreneurship pointed out that pre-start support and role models for people with disabilities and the patchy provision of incubators were challenges. The data base of good practice in the COPIE website points to some good German examples of incubators and a very promising project for people with disabilities in France Led by a French project (CAPH), three EQUAL partnerships concerned with support to business creation by handicapped people have produced a guide for business advisors called Beyond the barriers (Au delà des Barierres). The guide introduces business advisors to the barriers faced by entrepreneurs with disabilities and provides them with a series of suggestions for overcoming them in the different stages of creating a business. In Asturias, the lack of mentors and coaches with business experience, recruited from the community and the absence of quality standards and accredited training for advisors were seen as challenges for business support to disadvantaged groups. Once again the data base through up a series of promising projects in both the UK and Germany. 47

48 For example, in the UK, the partnership Business Mentoring: An Equal Partnership Ied by the Princes Trust has developed National Occupational Standards for Business Mentors. In Germany a number of EQUAL project came together to create the National Association of Start-up Initiatives (VDG) which now has 47 members. VDG has created a minimum quality standard for business advisors based on good practice in the first round of EQUAL. The combination of the tool and data base of good practice also allows regions and countries to identify areas in which they want to work together in the future. They can decide to test out further innovative solutions in common priority areas, share the lessons and monitor the results on the enterprise support system via the tool. This allows them to constantly improve their plans and strategies for entrepreneurship and unleash the creativity of more and more people. 48

49 ANNEX 1: THE TOOL COMPLETED FOR PRINCIPALITY OF ASTURIAS POLICY FRAMEWORK Region Autonomous Community of the Basque Country (CAPV) Name of Expert Ainhoa Unamuno - MIK S.Coop. THEME STATEMENT SCORE 1-4 STRATEGY There is an overall strategy for encouraging entrepreneurship in the area 2,8 There is a strategy which takes account of the needs of disadvantaged areas and groups 2,6 The main organisations work together 1,2 Total score strategy 2,2 CULTURE AND CONDITIONS Schools and colleges have introduced entrepreneurship into the curriculum 1,2 Teachers have been trained to work on enterprise issues 1,2 Specially adapted teaching materials have been developed 1,2 Children/ students are able to form real or simulated companies to learn about trading 1,2 Businesses are regularly involved in school activities. 1,2 the subject of setting up a business is presented comprehensively and regularly by both regional and national media 1,6 events and trade fairs targeted at start ups take place regularly 2,6 There is prestart support for building entrepreneurial capacity and business ideas 3 Total score enterprise culture 1,65 START-UP SUPPORT AND TRAINING SUPPORT FOR CONSOLIDATION AND GROWTH Business start ups can access comprehensive and readily available business information and advice 3,2 There are affordable business premises with easy to enter and exit conditions Total score start-up and training 3 Post-start up support is easily available 2,6 It is easy to find information for business development (products, markets, export and technology.) 1,8 2,8 Premises are available for post start ups 1,4 Total score consolidation and growth 1,93 ACCESS TO FINANCE Subsidies are provided to business start ups 35 Loans are affordable and easily available 2,4 Financial management support is available 1,6 Total score access to finance 2,33

50 SPECIALIST ADVISERS Name of region Autonomous Community of the Basque Country (CAPV) THEMES Statement no specific target group Unemployed women migrants and ethnic minorities 50 plus Young people under 30 People with disabilities Social Enterprises CREATING THE CULTURE FOR ENTRE- PRENEURSHIP There are (prestart) capacity and confidence raising activities among target groups and communities. 2,71 3,00 3,00 2,00 # DIV/0! # DIV/0! # DIV/0! # DIV/0! Teaching materials relate to specific groups 2,57 3,00 3,00 2,00 # DIV/0! # DIV/0! # DIV/0! # DIV/0! Role models relate to specific groups 2,86 3,00 2,67 2,00 # DIV/0! # DIV/0! # DIV/0! # DIV/0! Score for enterprise culture 2,71 3,00 2,89 2,00 # DIV/0! # DIV/0! # DIV/0! # DIV/0! START UP Business start ups can access free, high quality and readily available business information from professional 3,43 4,00 3,67 3,67 # DIV/0! # DIV/0! # DIV/0! # DIV/0! Business support organisations have established mechanisms for finding out about the real barriers to business creation among target groups (research, monitoring, proofing, regular contact..) 2,71 2,50 2,67 3,00 # DIV/0! # DIV/0! # DIV/0! # DIV/0! Outreach services go into communities to reach target groups 1,85 4,00 3,00 4,00 # DIV/0! Mentors/coaches with business experience are recruited from the community to work with new entrepreneurs 1,71 3,00 2,00 2,33 # DIV/0! Business advice and planning methods take account of the needs of each target group 3,29 3,50 3,67 3,00 # DIV/0! There are quality standards for business advice which reflect the needs of target groups 3,00 3,00 3,33 2,33 # DIV/0! Business advisors receive accredited training and are sensitive to the needs of target groups 2,57 3,00 2,67 3,33 # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! Incubators or start-up centres have been established and are accessible to target groups 2,86 2,00 1,67 2,67 # DIV/0! # DIV/0! # DIV/0! # DIV/0! CONSOLIDATION AND GROWTH score for start up 2,68 3,13 2,83 3,04 # DIV/0! # DIV/0! # DIV/0! # DIV/0! More advanced business information and advice on technology, markets, export is accessible to all entrepreneurs 2,86 2,50 3,00 2,67 # DIV/0! Specific support is available to entrepreneurs for breaking into potential growth markets and sectors 2,00 3,00 3,00 2,67 # DIV/0! Premises are available for post start ups 2,57 3,00 2,33 2,67 # DIV/0! Mechanisms are in place to support the transmission, replication and expansion of existing businesses (franchising, cooperatives ) 2,21 3,00 2,33 2,67 # DIV/0! There are healthy business to business networks around clusters/sectors which are open to all entrepreneurs There are effective measures to promote the quality and image of local products and services Public procurement procedures have been made accessible to local private and social enterprises 1,79 1,50 1,33 1,00 # DIV/0! 1,71 3,00 2,67 2,67 # DIV/0! 1,79 2,00 1,67 1,00 # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! score for consolidation and growth 2,13 2,57 2,33 2,19 # DIV/0! # DIV/0! # DIV/0! # DIV/0!

51 THEMES Statement no specific target group Unemployed women migrants and ethnic minorities 50 plus Young people under 30 People with disabilities Social Enterprises ACCESS TO APPROPRIATE FINANCE Mechanisms are in place for finding out the real financial needs of different kinds of entrepreneurs 2,85 3,00 2,33 3,33 Specialist micro finance providers work together with business support organisations and financial institutions 2,79 3,00 3,00 3,33 Banks provide debt crisis advise 2,00 3,00 2,33 3,00 Policy incentives exist to encourage for financial service providers to provide services to the socially excluded e.g. community reinvestment act 1,50 1,00 1,67 1,67 Grants are fast and flexible and help cover the most important start-up costs (running costs, advice, test trading ) 2,43 1,50 2,00 2,00 Financial management support is available with grants and loans 2,29 2,50 2,67 2,00 # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! # DIV/0! score for access to appropriate finance 2,31 2,33 2,33 2,56 # DIV/0! # DIV/0! # DIV/0! # DIV/0! 51

52 USER QUESTIONS Name of region Autonomous Community of the Basque Country (CAPV) Name of expert Ainhoa Unamuno MIK S.Coop. THEMES no specific target group unemployed women migrants and ethnic minorities 50 plus Young people under 30 People with disabilities Social Enterprises CREATING THE CULTURE FOR ENTRE-PRENEURSHIP I found the administrative processes for setting up a business straightforward and quick 1,6 2 2 # DIV/0! 2 1,8 # DIV/0! 2 I was exposed to enterprise ideas while at school 1,4 1 1, # DIV/0! 1 1,6 # DIV/0! 1 Entrepreneurs like me are well presented in the media 2,6 2,75 2, # DIV/0! 3 1,6 # DIV/0! 3 I have attended events and trade fairs targeted at start ups 1,8 1,25 1, # DIV/0! 1 1 # DIV/0! 1 START UP SUPPORT There are role models to encourage people like me to go into enterprise 2 2 2, # DIV/0! 2 1,6 # DIV/0! 2 AVERAGE SCORE 1,88 1,8 1, # DIV/0! 1,8 1,52 # DIV/0! 1,8 The advice system is easy to access and to get around 2,8 2 2, # DIV/0! 2 2 # DIV/0! 2 The business support available is friendly and answers my needs 2,8 2,5 2, # DIV/0! 2 2 # DIV/0! 2 I have had access to a mentor 3,2 3 3, # DIV/0! 4 2,2 # DIV/0! 4 Specialised training and materials are available which meets my needs 2,8 3 2, # DIV/0! 4 2,2 # DIV/0! 4 It is possible for me to obtain recognition and accreditation for training and experience which reflects my real skills 2,5 2 2, # DIV/0! 1 2 # DIV/0! 1 There are networking opportunities for start ups like ourselves 2,4 2 2 # DIV/0! 3 1,6 # DIV/0! 3 There are affordable business premises with easy to enter conditions (short leases, etc) 1,8 1,75 1, # DIV/0! 1 2 # DIV/0! 1 AVERAGE SCORE 2, , , # DIV/0! 2, # DIV/0! 2,

53 THEMES no specific target group unemployed women migrants and ethnic minorities 50 plus Young people under 30 People with disabilities Social Enterprises CONSOLIDATION AND GROWTH All entrepreneurs are able to obtain high quality advice for a period after start up 3,2 2,5 3 # DIV/0! 2 1,8 # DIV/0! 2 Entrepreneurs like us can easily access high quality training in the areas required for business expansion (ITC, marketing, financial management ) 2,6 2,25 3 # DIV/0! 3 2,4 # DIV/0! 3 It is easy to join mainstream business networks 2 1, , # DIV/0! 2 1,4 # DIV/0! 2 There are sufficient premises of an affordable nature to allow for business growth 1,4 1,25 2 # DIV/0! 2 1,4 # DIV/0! 2 Public sector contracts are accessible to entrepreneurs like ourselves 2 2,25 2,5 # DIV/0! 3 2 # DIV/0! 3 AVERAGE SCORE 2,24 1, , # DIV/0! 2,4 1,8 # DIV/0! 2,4 ACCESS TO APPROPRIATE FINANCE Banks provide a wide range of financial products to entrepreneurs like us 2,2 2,25 2, # DIV/0! 3 1,4 # DIV/0! 3 It is easy for all to open a current based bank account 3,6 3, , # DIV/0! 4 2,2 # DIV/0! 4 Public grants help cover some of the most important costs of setting up a business and are easy to access. 2,4 2,75 2, # DIV/0! 3 1,8 # DIV/0! 3 It is easy to get support for managing the financial aspects of the business 2 1,5 2, # DIV/0! 3 1,2 # DIV/0! 3 AVERAGE SCORE 2,55 2, ,75 # DIV/0! 3,25 1,65 # DIV/0! 3,25 53

54 ANNEX 2: LINKING THE TOOL TO GOOD PRACTICE Project Name Products and Tools Description Website CULTURE AND CONDITIONS Inter-Institutional Planning for Employment ( ) Inter-Institutional Planning for Employment ( ) It is devoted to promote entrepreneurship culture, self-employment and the start up of micro-companies. Gipuzkoa emprendedora Gipuzkoa emprendedora To promote entrepreneurship culture, foster entrepreneurship thinking, embrace new business creation and create a favourable environment for change and the creation of new SMEs and entrepreneurs. KOSMODISEA Web based game It pursues the promotion and fostering of entrepreneurship values and culture among primary and secondary education. It consists on and interactive and cooperative web based game. TKNIKA EJE Programe It is an initiative run at Occupational Training Centres and its running in the CAPV at 20 centres. It is the objective of this programme to promote entrepreneurship culture across students and to overcome the fear to failure. HASI eta HAZI Teaching materials It consists of several workshops at classrooms. It is an educative project oriented to develop human and personal competencies to carry out a project. Teaching material has been developed for children between 6 to 12 years old (guides for teachers and some material for students) to work on different scenarios oriented to teachers and adapted to each classrooms real case, where each student individually or by group- works on values associated to entrepreneurship culture EMPRENDER ONLINE Web based interactive and on-line programe It is an on-line interactive programe developed for teachers and students at Secondary Schools, which in a playful and didactic way to facilitate to work on those attitudes and values associated with entrepreneurship culture, such as plannig, creativity, working groups, observation, curiosity, information search, etc.

55 Project Name Products and Tools Description Website START-UP SUPPORT TXEKIN Business mentoring for entrepreneurs The more traditional programme named TXEKIN gives advice, support and guidance to those who decide to start an entrepreneurship process ENTREPRENARI Business mentoring for young people at Universities It is a joint collaboration between a BIC Berrilan (CEI) and the University of the Basque Country (county of Gipuzkoa) to facilitate Knowledge and Technology Transfer processes by the start up of new Technology and Innovation based Enterprises and Knowledge Intensive Enterprises EKINTZAILE Business mentoring for entrepreneurs EMEKIN Business mentoring for women entrepreneurs SARBIDE Business mentoring for socially excluded people SUSTATU Business mentoring for entrepreneurs URRATS BAT Business mentoring for entrepreneurs at occupational training school It is an initiative launched by SPRI The Society for Industry Restructuring and Promotion that aims to foster new and innovative business ideas coming from already existing companies, that is, it aims to promote intraentrepreneurship It is the aim of this programme to promote the opportunities to start up for women to gain and develop equal opportunities for men and women. Promotes and facilitates self-employment opportunities for socially excluded people. It was developed by the Regional Government of Bizkaia in 2004 to promote new business initiatives in the province of Bizkaia The objective of this programme is to promote entrepreneurship attitudes among Occupational Training Schools PRONUE Business mentoring and support for entrepreneurs To promote Araba s industrial activity through the start-up of new business ideas, diversification of existing industrial companies and to attract companies to the Historic Territory of Araba. It gives support to the start-up process of new and innovative business ideas 55

56 Project Name Products and Tools Description Website CONSOLIDATION AND GROWTH INCUBATION STRATEGY Incubation Strategy Specific incubation facilities. CENTRE FOR INCLUSIVE ENTERPRISES Inclusive incubation strategy Specific incubation facilities for people with difficulties in accessing the labour market ACCESS TO FINANCE ELKARGI Finance the CAPV enterprises Improves the structure and financial conditions of enterprises FIARE Finance the CAPV enterprises Provides financial support, loans and deposits. CAPV.gov.uk SPRI Investment grants, Loans Financial grants for new enterprises SEED CAPITAL BIZKAIA Risk Capital Fund Management of a Risk Capital Fund for new enterprises HAZIBIDE SEED CAPITAL Risk Capital Fund To give support to those SME and entrepreneurs who wants to develop their business activity or start-up a new business idea. Entrepreneurs can get a maximum of to develop their ideas. CAJAS DE AHORRO Social Affairs Department Provides loans and finance package for businesses 56

57 ANNEX 3: ENTITIES WHO HAVE PARTICIPATED IN THE STUDY POLICY FRAMEWORK AFFILIATION OF THE INTERVIEWEED PERSON DEPARTMENT 1 GOBIERNO VASCO Manager of Social Inclusion Justice, Employment and Social Security 2 GOBIERNO VASCO Responsible for European Justice, Employment and Social Security Social Fund 3 GOBIERNO VASCO Project Manager Justice, Employment and Social Security 4 DIPUTACIÓN FORAL DE Technician Social Affairs GIPUZKOA 5 VITORIA GASTEIZ COUNCIL Responsible for Enterprise Economic promotion Department Support 6 DIPUTACIÓN FORAL DE ARABA Technician Innovation and Economic promotion Department SPECIALIST ADVISERS AFFILIATION TYPE OF ENTITY 1 MANCOMUNIDAD ALTO DEBA General Manager Local Development Agency 2 BILBAO CHAMBER OF COMMERCE Responsible for Start-up programme Private entity 3 GIPUZKOA CHAMBER OF COMMERCE Innovation and Studies assistant Private entity 4 DEBEGESA Responsible for Innovation and Local Development Agency Enterprise 5 ELKARLAN Adviser Cooperative 6 BIDASOA ACTIVA Adviser Local Development Agency 7 BIDASOA ACTIVA Adviser Local Development Agency 8 SAIOLAN Responsible for Start-up programme Centre for Enterprise Innovation (Arrasate) 9 INGURALDE Adviser Local Development Agency 10 INGURALDE Adviser Local Development Agency 11 BAI-AGENCIA DE INNIVACIÓN DE BIZKAIA Adviser Agencia de Innovación (DFB) 12 CARITAS Adviser Social Entity (private) 13 CARITAS Adviser Social Entity (private) 14 INGURALDE Adviser Local Development Agency 15 INGURALDE Adviser Local Development Agency 16 BIC BERRILAN KOSMODISEA programme coordinator Centre for Enterprise Innovation (Eibar- Donostia) 17 CEIA Project Analyst Centre for Enterprise Innovation (Araba) 18 INGURALDE Responsible for Innovation and Enterprise Local Development Agency USERS NO SPECIFIC GROUP 6 UNEMPLOYED 3 WOMEN 2 MIGRANTS AND ETHNIC MINORITIES 0 >50 2 YOUNG PEOPLE UNDER 30 5 DISSABILITIES 0 SOCIAL ENTERPRISE 1 TOTAL 19 5% 0% 26% 11% 0% 11% Type of Users 16% 31% NO SPECIFIC GROUP UNEMPLOYED WOMEN MIGRANTS AND ETHNIC MINORITIES >50 YOUNG PEOPLE UNDER 30 DISSABILITIES SOCIAL ENTERPRISE

58 ANNEX 4: PROMOTING ENTREPRENEURIAL CULTURE THROUGH DIGITAL MATERIAL

59 ANNEX 5: BASQUE COUNTRY LAW ON INCLUSIVE ENTERPRISES

60 ANNEX 6: SPANISH LAW ON INCLUSIVE ENTERPRISES 60