Designing policies and programmes   for inclusive entrepreneurship      Dr. Jonathan Potter, Senior Economist      LEED Di...
Introduction: Defining entrepreneurship• Entrepreneurial activity is the enterprising human action in pursuit  of the gene...
Total Entrepreneurial Activities Index, 2007-2011                                               TEA Index, 2007-2011      ...
Attitudes towards entrepreneurship•   Regardless of whether or not you would like to become self-employed,    would it be ...
Example 1: Key barriers to youth entrepreneurship1. Lack of awareness of potential for entrepreneurship , lack   of role m...
Example 1: Key policy responses for youth1. Lack of entrepreneurship awareness and skills   • Develop entrepreneurship ski...
Example 2: Key barriers to senior entrepreneurship1. Physical and cognitive health2. State benefits and retirement income ...
Example 2: Key policy responses for seniors1. Lack of entrepreneurial awareness and attitudes   • Promote lifelong learnin...
Options for policy delivery to disadvantaged groups1.    Full integration into mainstream support     •   Advantage: easie...
Policy recommendations for reaching target groups•   Targeted, specialist support is almost always more effective than gen...
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Designing policies and programmes for inclusive entrepreneurship by Jonathan Potter, Senior Economist, OECD LEED Programme

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Presentation from the capacity building seminar “Financing business start-up by under-represented groups”, 27-29 June 2012, Trento – Italy; organised by the Local Economic and Employment Development (LEED) Programme and its Trento Centre at the OECD in collaboration with the Directorate-General Employment, Social Affairs and Inclusion of the European Commission. See www.trento.oecd.org

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Designing policies and programmes for inclusive entrepreneurship by Jonathan Potter, Senior Economist, OECD LEED Programme

  1. 1. Designing policies and programmes for inclusive entrepreneurship Dr. Jonathan Potter, Senior Economist LEED Division, OECD
  2. 2. Introduction: Defining entrepreneurship• Entrepreneurial activity is the enterprising human action in pursuit of the generation of value, through the creation or expansion of economic activity, by identifying and exploiting new products, processes or markets• Entrepreneurship is entrepreneurial activity by business owners• Business creation is the realisation of entrepreneurship through creation of a new business entity 2
  3. 3. Total Entrepreneurial Activities Index, 2007-2011 TEA Index, 2007-2011 16% 14% 12% 10% 8% 6% 4% 2% 0%Source: Tabulations of the 2007-2011 Adult Surveys of the Global Entrepreneurship Monitor (GEM) 3
  4. 4. Attitudes towards entrepreneurship• Regardless of whether or not you would like to become self-employed, would it be feasible for you to be self-employed within the next 5 years? Sweden Finland Denmark Cyprus Poland Slovenia United Kingdom Ireland France Austria Germany Luxembourg Greece Romania Estonia Italy Latvia Spain Slovakia Lithuania Bulgaria Malta Hungary Portugal Netherlands Czech Republic Belgium EU27 0 10 20 30 40 50 60 4 Source: European Commission, 2009, ‘Entrepreneurship in the EU and beyond — A survey in the EU, EFTA countries, Croatia, Turkey, the US, Japan, South Korea and China’, Flash Eurobarometer 283.
  5. 5. Example 1: Key barriers to youth entrepreneurship1. Lack of awareness of potential for entrepreneurship , lack of role models, negative social attitudes2. Education and training programmes generally do not do enough to nurture entrepreneurial attitudes and skills3. Lack of prior work and entrepreneurship experience4. Fewer financial resources and difficulty obtaining external finance, including debt finance5. Limited business networks and business-related social capital6. Market barriers, including a bias in financial markets away from youth-owned businesses and ‘discrimination’ in product markets 5
  6. 6. Example 1: Key policy responses for youth1. Lack of entrepreneurship awareness and skills • Develop entrepreneurship skills within education system and through training outside of the education system2. Lack of entrepreneurship skills and networks • Disseminate information, provide advice, counselling, coaching and mentoring services3. Lack of financial resources and access to external finance • Provide ‘bridging’ finances for living expenses and working capital, as well as micro-financing and non-traditional start-up financing programmes for investment 6
  7. 7. Example 2: Key barriers to senior entrepreneurship1. Physical and cognitive health2. State benefits and retirement income may reduce the income incentive for self-employment3. Age discrimination– older people often seen as less flexible, less committed and less able to cope with technology4. Lack of entrepreneurship skills despite having high level of human capital5. Difficulty rebuilding the networks they had during their career, particularly when they operate small home-based businesses6. After working in paid employment, many older people may not be aware of the opportunities that self-employment can provide, nor how to start a business 7
  8. 8. Example 2: Key policy responses for seniors1. Lack of entrepreneurial awareness and attitudes • Promote lifelong learning2. Lack of entrepreneurship skills • Provide entrepreneurship training through adult education and specific programmes for seniors3. Lack of entrepreneurial networks • Grow networks with mentoring and coaching4. Disincentives in social support systems • Reduce disincentives to earnings and • Review health support systems 8
  9. 9. Options for policy delivery to disadvantaged groups1. Full integration into mainstream support • Advantage: easier to control quality of support • Disadvantage: more difficult to reach target clients; assumes target groups have same needs as mainstream entrepreneurs2. Targeted marketing services of mainstream agencies • Advantage: improved access to target clients • Disadvantage: assumes target groups have same needs as mainstream entrepreneurs3. Special services and delivery modes by mainstream agencies • Advantage: improved access to target clients and tailored services • Disadvantage: more resource intensive; trust may still be an issue with some target clients4. Specialist agencies to deliver specialised support • Advantage: effective at reaching clients and trust is easily established • Disadvantage: resource intensive; requires co-ordination with mainstream support agencies, particularly when bridging clients to mainstream support is a goal 9
  10. 10. Policy recommendations for reaching target groups• Targeted, specialist support is almost always more effective than general support, but should: – Be highly engaged and well co-ordinated with mainstream support agencies – Be differentiated from mainstream support to secure funding• Support for target groups with low densities of entrepreneurs should be integrated with the mainstream, but mainstream agencies should : – Work with existing community networks – Understand the way different communities do business – Define targets for delivering services to these groups, – Employ staff and business advisers from the target groups – Focus outreach efforts on media used by the target groups and be active in the community – Contract specialist community-based agencies when necessary 10
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