Skills development services for SME’s in Finland

OECD LEED workshop - Skills development for SMEs and Entrepreneurship

28th of November 2012Mirke Turunen

1Mirke Turunen

Table of Contents

• Introduction of the Ministry of Employment and the Economy• Introduction of regional ELY Centres• Enterprises by number of employees in Finland• Specialist Product Services for SME’s• Specialist Product Services in 2014 +• Training services for management and key personnel in SMEs• Joint Purchase Training

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Ministry of Employment and the Economy: Organisation 1.6.2012

State SecretaryJouni Hakala

National Conciliator’sOffice

Esa Lonka

Co-operationOmbudsman’s Office

Helena Lamponen

MINISTER OF ECONOMIC AFFAIRSJan Vapaavuori

PERMANENT SECRETARYErkki Virtanen

MINISTER OF LABOURLauri Ihalainen

HUMAN RESOURCES ANDADMINISTRATION UNIT

Mikko Salmenoja

MEDIA ANDCOMMUNICATIONS UNIT

Mervi Liukkonen

MEE Group agencies, institutions and organisationsMEE Group agencies, institutions and organisations• Centre for Economic Development,

Transport and the Enviroment• Energy Market Authority• Finnvera plc• Finpro/IIF• Geological Survery of Finland

• National Emergency Supply Agency• Finnish Competition Authority• National Consumer Research

Centre• The National Consumer Agency• Finnish Tourist Board

• Employment and Economic Development Offices

• VTT• State Nuclear Waste Management Fund• Others

• Centre for metrology and accreditation• National Board of Patents and Registration of Finland• Tekes• Finnish Industry Investement Ltd• Finnsh Safety and Chemicals Agency

State SecretaryJanne Metsämäki

REGIONAL DEPARTMENTHeikki Aurasmaa

ENERGY DEPARTMENT

Esa Härmälä

ENTERPRISE AND INNOVATION

DEPARTMENTPetri Peltonen

KNOWLEDGEMANAGEMENTDEPARTMENT

Markku Wallin

LABOUR AND TRADEDEPARTMENT

Raimo Luoma

EMPLOYMENT ANDENTREPRENEURSHIP

DEPARTMENTTuija Oivo

• Research and foresight

• Steering and leadership of data administration

• Customer relationship and service models

• IT services

• eServices

• Information management

• Entrepreneurship development and enterprise support

• Employment and enterprise support

• Competencies and quality of working life

• Integration of immigrants

• Better regulation

• Labour law

• Internal market policy and business law

• Consumer policy and technical regulation

• Competition policy

• Regional development

• Structural funds

• Regional steering

• Energy markets

• Emissions trading

• Energy efficiency and technology

• Renewable energy

• Nuclear energy division

• Innovation policy

• Innovation environments

• Growth ventures

• Internationalisation and exports

• Industrial policies and enterprise financing

• Strategies, financial and management• Co-ordination of EU and international

affairs• Co-ordination of strategic projects

CORPORATE STEERING

Internal auditingJuha Pekka Niemi

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ELY Centre - Responsibilities and Offices

• Lapland: Rovaniemi, Kemi• Kainuu: Kajaani• North Ostrobothnia: Oulu, Ylivieska• Ostrobothnia: Vaasa, Kokkola • South Ostrobothnia: Seinäjoki, Vaasa, Kokkola • Central Finland: Jyväskylä• North Savo: Kuopio• North Karelia: Joensuu• South Savo: Mikkeli• Pirkanmaa: Tampere• Satakunta: Pori• Southwest Finland: Turku, Pori• Southeast Finland: Kouvola, Lappeenranta• Häme: Lahti, Hämeenlinna • Uusimaa: Helsinki

• Economic development, employment, competence and culture (E)

• Transport and infrastructure (L)

• Environment and natural resources (Y)

Mirke Turunen

• Population: 5.4 million, 15.8 inhabitants per km²

• Labour force 2,682 million people• Area total: 338,424 sq km• Water: 34,330 sq km• GDP per capita: 33,618 euros (2010)

Enterprises by number of employees 2009 (primary production not included) (Source: Statistics Finland)

Size of company Enterprises Share of all enterprises, %

Share of personnel, %

Share of turnover %

Small enterprises : < 50 employees

259931 98,9 45,4 34,5

< 2 employees 177035 67,1 7,4 5,6

2 - 9 employees 69296 26,3 17,7 11,5

10 - 49 employees 14486 5,5 20,3 17,4

Medium sizedenterprises: 50 – 249 employees

2334 0,9 17,0 16,5

Large enterprises :> 250 employees

608 0,2 37,6 49,1

Total 263759 100,0 100,0 100,0

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Specialist Product Services for SME’s

• The services are subsidised by 75-80 % (de minimis aid)• 11 different products for various needs and stages of the SME’s

lifecycle• Duration from one to eight consultation days• Suitable for all types of SME’s, no industry, size or age limitation• Approximately 400 sertified consultants (www.asiantuntijahaku.fi )

• The entrepreneur chooses the most suitable one • The consultants have been procured and certified by the

Ministry of Employment and the Economy• Application to the regional ELY Centre

• Checks eligibility• Assists in the selection of the consultant• Handles the payment to the consultant and sends an invoice to the

customer

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Specialist product services for SME’s

The goal is to develop the business skills of SME’s and make it easierfor the SME’s to use consultative services

Target Groups:• Individuals who are planning to become entrepreneurs• Personnel and management of SME’s

• The definition of an SME by the EU• Less than 250 employees • Annual turnover does not exceed 50 milj. € or the balance sheet total does not

exceed 43 milj. €• The SME’s credit rating must be good

• No outstanding invoices for ELY Centres• De minimis aid causes some restrictions on eligibility

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Additional consultation 300 euros/day/product

Specialist Product Services

• Programme for evaluation and development of business ideas• 2 meetings, 100 euros

• Programme for the development of product and service ideas • 100 euros/ 1st day, 120-300 euros additional days

• Programme for creating or updating a business plan• 350 euros/2 days, 700 euros/4 days

• A specialist programme for marketing and sales development • 3,5 days/500 euros

• Programme for developing business activities through information technology solutions

• 2 meetings, 600 euros

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Specialist Product Services

• Development programme for internationalisation• 3 days/760 euros

• Productivity development programme for manufacturing enterprises, 600 euros/3,5 days, 850 euros/5 days

• Development programme for economic management and financing, 550 euros

• Programme for developing business operations• 2 days/450 euros

• Development Programme for executing a controlled generation shift, 3 days/840 euros

• A simplified environmental management system for SMEs 300 euros/day, 3-8 days

• Additional consultation 300 euros/day/product

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Specialist product services

• Provides SMEs with• An independent evaluation of the current state of the company• Concrete solutions for development and growth• Final report with a development and growth plan• New skills to evaluate and develop independently

• Positive feedback (Survey on Effectiveness 2012)• 85% of the SME’s would recommend the services• 85% think the services are efficient

• Critique • The structure does not always meet the customers needs• Outdated

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01/2007 – 06/2012:• Over 6 000 services• Over 34 000 consultation days

Specialist Product Services in 2014 +

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Internationalisation and growth

Change Productivity

Application

Application

Basic Analysis

15 days/ 3 years

Plan to

Grow

Plan to

Grow

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Specialist Product Services in 2014 +

• The aim of the renewal is to• Offer services that meets the customers needs more efficiently• Develop services that are flexible• Limit the amount of services

• Basic analysis 1-2 days• 15 days within 3 years on

• Internationalisation and growth• Change• Productivity

• Develop a electronic service process in www.enterprisefinland.fi • A software for determining the needs• Electronic office platform for SME’s

• Renew consultation methods

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Training services for management and key personnel in SMEs

• Five different training programmes• Management (20 days + 1 consultation day)• Finance (8 days)• Sales and marketing (8 days + 2 consultation days)• Internationalisation (8 days + 3 consultation days)• Growth (10 days + 4 consultation days)

• The programmes include 1-5 additional consultation days

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In 2012 • 32 training programmes • Over 400 participants

Joint Purchase Training

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Employer

ELY Centre

Service Provider

Training Plan

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Joint Purchase Training

• Based on joint planning, purchasing and financing by the employer, the training institution (service provider) and the employment and economic development administration (usually ELY Centre)

• Joint Purchase training can be used to • help secure the availability of workforce• promote the employer’s operating conditions• contribute towards prolonging working lives, maintaining jobs and

preventing unemployment • Joint Purchase training can not be used to

• Ordinary induction and staff training• The trainings are always made to meet the company’s or participants’

needs• Suitable for a network of employers

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Joint purchase trainingTraining Recruitment

Training ChangeTraining PreciseTraining

Target group All employers All employers All employers, specially SMEs

Situation The employer can not find skilled employees from the existing labour markets

The training is connected to staff reductions or cessation of operations. The aim is to enchance the skills of the job seekers.

Technological or operational changes that require updating of the entrepreneur’s and employees’ skills. Also suitable during periods of fixed-term lay-offs.

Financing Government 70%Employer 30%

Government 80% Employer 20%

Government 25-80%Employer 20-75%

Content Vocational training(min. 10 days – 2 years/student, usually 3 -9 months)

Vocational training or preparatory training (min. 10 days – 2 years/student)

Vocational training(min. 10 days – 2 years/student)

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Mirke Turunen

For more information please contactMirke.turunen@tem.fi

+358 50 396 4804

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