Europe 2020

ESF

Entrepreneurship

Raymond Maes Acting Head of Unit

Youth employment, Entrepreneurship, Microfinance Facility

DG Employment, Social Affairs & InclusionEuropean Commission

Entrepreneurship

at the heart of

the Europe2020 strategy

EU economy: where do we stand?

23 million people (10% of active population) now unemployed

In 2009, EU GDP fell by 4% ; industrial production dropped by 20% to 1990s levels

National deficits at 7% of GDP on average, national debts at over 80% of GDP on average

EU‘s growth potential has halved as a result of the crisis

High political expectations: a strong effort for a successful exit!Policies and actions have to show the social face of

Europe

4

Europe 2020: 3 interlinked priorities

Smart growth: developing an economy based on knowledge and innovation

Sustainable growth: promoting a more efficient, greener and more competitive economy

Inclusive growth: fostering a high-employment economy delivering social and territorial cohesion

Europe 2020: 5 EU headline targets

By 2020:

75 % of the population aged 20-64 should be employed

3% of the EU's GDP should be invested in R&D

The "20/20/20" climate/energy targets should be met (including an increase to 30% of emissions reduction if the conditions are right)

The share of early school leavers should be under 10% and at least 40% of the younger generation should have a tertiary degree

20 million less people should be at risk of poverty

Job creation through establishment/consolidation of new businesses :

a significant role in achieving employment target of 75% for 2020

because

A significant share of the new jobs in the EU is created by

newly established firms. Almost 85% by micro-firms.

In the EU, these firms generate on average nearly 2 jobs, in

some Member States up to 3.

Up until now, Europe is far from exploiting its full potential in

this respect

The rate of business creation on a European average is

estimated at around 4.5 %, compared to 8% in the USA.

In Europe, entrepreneurship is less attractive for women:

men are twice more likely to be involved in early-stage

entrepreneurial activity than women.

Europe 2020 - Flagship initiatives (1)

"Innovation Union" to improve framework conditions and access to

finance for research and innovation so as to ensure that innovative ideas can be turned into products and services that create growth and jobs

"Youth on the move"

to enhance the performance of education systems and to facilitate the entry of young people to the labour market

Europe 2020 - Flagship initiatives (2)

"An industrial policy for the globalisation era"

to improve the business environment, notably for SMEs, and to support the development of a strong and sustainable industrial base able to compete globally

"An agenda for new skills and jobs"

to modernise labour markets and empower people by developing their of skills throughout the lifecycle with a view to increase labour participation and better match labour supply and demand, including through labour mobility

Europe 2020 Strategy - guidelines

Integrated guideline 7

Increasing labour market participation, reducing structural unemployment and

promoting job quality through: Adequate flexicurity policies

Review tax/benefit systems

Promote active ageing

Promote work-life balance

Combat youth unemployment

Europe 2020 Strategy - guidelines

Integrated guideline 8

Developing a skilled workforce responding to labour market needs and promoting

lifelong learning through: Adequate supply of knowledge and skills to match

labour demand

Access to lifelong learning and vocational training

Remove barriers to geographical and occupational

mobility

Europe 2020 Strategy - guidelines

Integrated guideline 9

Improving the quality and performance of education and training systems at all levels and increasing participation in tertiary or

equivalent education through: Modernise universities

Prevent early school leaving

Building national qualification frameworks

Making teaching carriers more attractive

Promote teacher and student mobilityHeadline target: aiming to reduce drop out rates to less than 10 %, and increase the share of 30-34 year-

olds having completed tertiary or equivalent education to at least 40 %.

Europe 2020 Strategy - guidelines

Integrated guideline 10

Promoting social inclusion and combating poverty through:

Modernise social security and pension systems

Ensuring access to affordable, sustainable and high quality services

Ensuring equal opportunities

Effective anti-discrimination

Headline target: aiming at promoting social inclusion, in particular through the reduction of poverty by

aiming to lift at least 20 million people out of the risk of poverty and exclusion.

The new multi-annual financial framework

Enhancing European added value

In line with the Budget Review:

Focus the ESF on securing the 2020 targets

Greater visibility and predictable funding volumes for the ESF

Contribution to European employment initiative

Main instruments under the current programming period

European Social Fund

European Globalization Fund

PROGRESS Microfinance Facility

PROGRESS Programme

EURES

…

Multi-Annual Financial FrameworkSimplification

Options for post-2013 Multi-Annual Financial Framework

Streamlining into the European Social Fund

Under Shared ManagementESF «Conditions for growth» including support for

microfinance«Emergency aid to workers made redundant» -

EGF

Under Direct Management An Initiative for employment, working conditions, social protection and social inclusionPROGRESSEURESProgress Microfinance

ESF - Conditions for growth Modus operandi

Part of Cohesion Policy under the Europe 2020 strategy (targets)

Conditionality to make assistance more effective

Thematic investment windows

Concentration on limited number of priorities in each Member State

Simplification

Performance orientation

Focus on European added value - European budget for European priorities

Options for ESF investment Windows

ESF Investment

windows

Relevance for

headline targets and

Flagships

Integrated

GuidelinesIndicative list of specific investment areas

The right to

work

Employment target -

Flagship “An agenda

for new skills and

jobs”

IGL 7

Access to employment; entrepreneurship and self-employment; new skills and jobs; green

jobs; labour mobility; active ageing, promoting health and safety in the workplace, labour

market institutions, linked infrastructure development.

Education and

Skills

Early school leaving

target

Tertiary education

target -

Flagship

“Youth on the move”

IGL 8

IGL 9

Modernization agenda for higher education; increasing participation in tertiary education;

reducing early school leaving; Knowledge economy, identification of skill needs, life-long

learning; recognition non-formal and informal learning; improving performance of

(vocational) education and training systems; investment in education and training

infrastructure.

An inclusive

society

Poverty target

Flagship -“European

Platform against

poverty”

IGL10

Labour market reintegration and anti discrimination of vulnerable or marginalized groups;

access to social and community services; child poverty; investment in social infrastructure

including social housing. Access to health services; capacity building; de-

institutionalization.

Institutional

capacityIGL 6

Strengthening public administration and public services; promotion of public administration

reform including reducing administrative burden on enterprises; capacity building; e-

government.

Entrepreneurship and ESF

What role under the new multi-annual financial framework?

Common weaknesses identified Lack of entrepreneurship culture within

many vulnerable groups

Access to support in rural/remote areas

Insufficient funding for training & coaching

Lack of social competences of consultants/advisors

Service offers not transparent/ quality and suitability not assessable

Only less than 1/3 of all start-ups use loan financing or business advisory services

Insufficient support for consolidation and growth

Lack of data, monitoring tools/ evaluations

Opportunities for the ESF identified

Support awareness raising actions on the value of entrepreneurship

Increase transparency of services

Invest in training the trainers and advisors

Make ESF funding conditional on quality standards & incentives for service providers

Improve co-operation between employment & industry ministries, between ESF and ERDF

Improve data collection on start-ups & needs of target groups

Challenges for ESF post 2013More, and more effective support towards entrepreneurship under the new ESF

How to give entrepreneurship a more prominent place under the ESF in terms of:

increasing its volume and scope,

supporting the scaling up of pilots and

enhancing its impact on target groups

How can the Commission assist in implementing effective support structures and actions?

How will the CoPIE activities and results contribute

to achieving this objective?