<ul><li>Support to SMEs </li></ul><ul><li>European Entrepreneurship Academy </li></ul><ul><li>Bruxelles, 03.11.2009 </li><...
EURADA Fields of Intervention <ul><li>Dialogue with the Community Authorities </li></ul>Promotion of common projects Disse...
Eurada: History <ul><li>Creation: December 1991 </li></ul><ul><li>150 members mainly in EU countries </li></ul><ul><li>3 s...
Eurada: Main areas of activities <ul><li>EURADA current work programmes focus on:   </li></ul><ul><li>Entrepreneurship </l...
Financial instruments 2007-2013 Cohesion Fund and Structural Funds CIP TENs LIFE+ 7th framework programme Life Long Learni...
Synergies among FP7 – ERDF – ESF – CIP FP7 (opportunity) Regions of knowledge Research potential Transnational collaborati...
The Promotion of Innovation in European Regional Policy:  a silent (r)evolution <ul><li>1989 -1993: approximately 4% for i...
Enterprise SME E E E Enterprise SME Big Firms Public Sector National/Regional Administration Business Consultants: Service...
Source: DG Regio Priority themes in 434 Operational Programs in 271 regions 344.305.598.427 Research and technological dev...
Challenge of economic development Source: Eurada
“ The human creativity is the ultimate economic resource!” Source : Richard Florida Universities and high schools become t...
The CHALLENGE <ul><li>How ensuring that the offer of public support services matches with the demand and expectations of e...
<ul><li>Enterprise hub </li></ul>
Ideas &  Money Research Talent Market Capital IPR Open innovation Collaborative Projects Infrastructure Creativity Educati...
Ways forward <ul><li>I. Enterprise life cycle </li></ul><ul><li>II.  Enterprise segmentation </li></ul><ul><li>III.  Suppo...
Entreprise Cycle   <ul><ul><ul><ul><li>Idea </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>People </li></ul></ul></ul></...
<ul><ul><ul><ul><li>Incorporation </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Start-up </li></ul></ul></ul></ul><ul><ul><...
<ul><li>Growth  </li></ul><ul><li>Overcoming death valley  </li></ul><ul><li>Market validation </li></ul><ul><li>Equity bu...
<ul><li>Maturity </li></ul><ul><li>IPR – Research capacity </li></ul><ul><li>IPO </li></ul><ul><li>Merger & Acquisition </...
Problem in Europe <ul><li>Start-up rate  Ok </li></ul><ul><li>Incubation performing well </li></ul><ul><li>But ... </li></...
SME Segmentation <ul><li>newly-developed companies; </li></ul><ul><li>spin-outs and spin-offs of large businesses, researc...
Support Service Value Chain
Knowledge intensity  in support services
<ul><li>Market failure: private sector: </li></ul><ul><li>Lack of provision of a support service </li></ul><ul><li>Asymmet...
<ul><li>Market failure: public sector: </li></ul><ul><li>Driven by offer, not by demand </li></ul><ul><li>Dogmatic approac...
Governance and strategy
Comparison DG Enterprise & Industry public consultation (SEC(2009)1197) and IRE expectations ENTERPRISES  EXPECTATIONS INT...
INNOVATION Product Process Business model <ul><li>High Tech </li></ul><ul><li>Manufacturing </li></ul><ul><li>Services </l...
 
IDEAS AND INNOVATION ROUTINE WORK  Done by people ROUTINE WORK  Done by machine s CREATIVE WORK  Talent Digitalisation Out...
Innovation by enterprises
Source: http://www.bayeconfor.org/media/files/pdf/InnovationDrivenEconomicDevelopmentModel-final.pdf
Business function and internationalisation
The paradox of access to finance <ul><li>Banks </li></ul><ul><li>Venture Capitalists  have money  </li></ul><ul><li>Stock ...
Access to funding <ul><li>OFFER  = availability of funding sources </li></ul><ul><li>DEMAND  = quality of business proposa...
Offer of Funding <ul><ul><li>Value chain </li></ul></ul><ul><ul><li>Due diligence </li></ul></ul>
What are the funding options for an entrepreneur? <ul><li>« All money is not the same ! » </li></ul><ul><li>Own money </li...
 
Areas for improvement Source: Sally Goodsell, Finance SouthEast
Resistance test: here we sell cactuses and balloons
Is the human creativity really the ultimate economic resource? Source : Richard Florida – revised by Christian Saublens
Thank you for your attention ! www.eurada.org – info@eurada.org European Association of Development Agencies    +32 (0)2 ...
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European Entrepreneurship Academy Nov2009

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How to build regional entrepreneurship strategies?

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European Entrepreneurship Academy Nov2009

  1. 1. <ul><li>Support to SMEs </li></ul><ul><li>European Entrepreneurship Academy </li></ul><ul><li>Bruxelles, 03.11.2009 </li></ul><ul><ul><li>Christian SAUBLENS </li></ul></ul>
  2. 2. EURADA Fields of Intervention <ul><li>Dialogue with the Community Authorities </li></ul>Promotion of common projects Dissemination of information EURADA Cooperation with non EU agencies Exchange of experience between members New Ideas Accelerator
  3. 3. Eurada: History <ul><li>Creation: December 1991 </li></ul><ul><li>150 members mainly in EU countries </li></ul><ul><li>3 staff members </li></ul><ul><li>Budget: ± 450.000 € / year </li></ul><ul><li>Members are public or semi-public organizations under private law, but having public missions and strong links with regional authorities. The public missions are in the field of regional strategy and services support to enterprises. </li></ul>
  4. 4. Eurada: Main areas of activities <ul><li>EURADA current work programmes focus on: </li></ul><ul><li>Entrepreneurship </li></ul><ul><li>Enterprise support services (added value ones) </li></ul><ul><li>Regional strategy (innovation, clusters, RDT, enterprise, access to finance) </li></ul><ul><li>Role of higher education institutions in regional development </li></ul><ul><li>Regional competitiveness and attractiveness </li></ul><ul><li>Access to finance (“All money is not the same”, “Investment readiness”) </li></ul><ul><li>Models of regional value chain </li></ul><ul><li>Doing economic development in crisis time (next meeting: 18-19 June, Round Table of Practitioners in Economic Development). </li></ul>
  5. 5. Financial instruments 2007-2013 Cohesion Fund and Structural Funds CIP TENs LIFE+ 7th framework programme Life Long Learning State aids Environment ICT Culture EIB-EIF Rural Development Energy External Relations
  6. 6. Synergies among FP7 – ERDF – ESF – CIP FP7 (opportunity) Regions of knowledge Research potential Transnational collaborative project Risk Sharing Finance Facility (EIB) Pre Research <ul><li>Access to finance: </li></ul><ul><li>- spin-off </li></ul><ul><li>seed capital </li></ul><ul><li>Commercialisation of </li></ul><ul><li>research results: </li></ul><ul><li>- proof of concept </li></ul><ul><li>- technology transfer </li></ul><ul><li>- mentoring </li></ul><ul><li>Networking </li></ul><ul><li>Intellectual Property Rights </li></ul><ul><li>Training </li></ul>ERDF & ESF (Impulsion) Infrastructure Regional Platform (cluster) Training Regional Research Programme (enhancing regional capabilities) CIP (opportunity) Innovation Relay Centre Innovation EIF (GIF) Entrepreneurship Post
  7. 7. The Promotion of Innovation in European Regional Policy: a silent (r)evolution <ul><li>1989 -1993: approximately 4% for innovation (2 billion out of 50) </li></ul><ul><li>(L. Tsipouri, IPTS Report N° 40, 2004) </li></ul><ul><ul><li>Community initiatives: Science and Technology for Regional Development - STRIDE, TELEMATIQUE, ENVIREG, VALOREN… </li></ul></ul><ul><li>1994-1999: approximately 7% for innovation (7,6 billion out of 110) </li></ul><ul><li>(L. Tsipouri, IPTS Report N° 40, 2004) </li></ul><ul><ul><li>Pilot Projects: RIS, RIS+, RTTs, RISI, RISI2, IRISI, EBN, BICs </li></ul></ul><ul><li>2000-2006: approximately 11% for innovation out of 195 billion </li></ul><ul><ul><li>“ Regions in the new Economy”: PRAIS – Regional Programs of Innovative Actions 400 million </li></ul></ul><ul><li>2007-2013: approximately 25% for innovation (86 billion out of 345) </li></ul><ul><ul><li>Article 5 of the ERDF: innovation as a priority for the “Competitiveness” objective -31.000 R&TD projects identified in only 95 ERDF Programs (40% of total budget) (Nordregio 2009) </li></ul></ul><ul><ul><li>Regions for Economic Change </li></ul></ul>Source: DG Regio
  8. 8. Enterprise SME E E E Enterprise SME Big Firms Public Sector National/Regional Administration Business Consultants: Services Universities Technology Centres Finance- Banks Value Chain Clusters Mentoring Schemes... Innovation Support Schemes Business Innovation Centres Innovation Management Techniques Technology Audits Technology Foresights Intermediaries Cluster Policy… Business Forums Seed Capital venture Capital Business Angels Technology Transfer Projects R&D Valorisation Graduate Placement Schemes University-Enterprise Cooperation... The “Structural Competitiveness” of SMEs based on systemic relations, subject to policy action, within a territorial model Source: DG Regio
  9. 9. Source: DG Regio Priority themes in 434 Operational Programs in 271 regions 344.305.598.427 Research and technological development (R&TD), innovation and entrepreneurship 50.046.501.271 01 R&TD activities in research centers 5.783.265.653 02 R&TD infrastructure and centers of competence in a specific technology 9.899.436.081 03 Technology transfer and improvement of cooperation networks (Clusters and Business Networks). 5.577.995.235 04 Assistance to R&TD, particularly in SMEs (including access to R&TD services in research centres) 5.573.990.437 05 Advanced support services for firms and groups of firms 5.150.882.219 06 Assistance to SMEs for the promotion of environmentally-friendly products and production processes 2.504.554.193 07 Investment in firms directly linked to research and innovation 9.029.635.350 09 Other measures to stimulate research and innovation and entrepreneurship in SMEs 6.526.742.103 Information society 13.028.213.085 11 Information and communication technologies 3.597.833.221 12 Information and communication technologies (TEN-ICT) 523.787.206 13 Services and applications for citizens (e-health, e-government, e-learning, e-inclusion, etc.) 5.225.072.351 14 Services and applications for SMEs (e-commerce, education and training, networking, etc.) 2.144.358.160 15 Other measures for improving access to and efficient use of ICT by SMEs 1.537.162.147 Increasing the adaptability of workers and firms, enterprises and entrepreneurs 14.427.929.049 62 Development of life-long learning systems and strategies in firms; training and services for employees ... 9.752.889.678 63 Design and dissemination of innovative and more productive ways of organising work 1.897.998.513 64 Development of special services for employment, training and support in connection with restructuring of sectors ... 2.777.040.858 Improving access to employment and sustainability 3.247.192.561 68 Support for self-employment and business start-up 3.247.192.561 Improving human capital 4.926.200.421 74 Developing human potential in the field of research and innovation, in particular through post-graduate studies ... 4.926.200.421   Total for innovation in a broad sense 85.676.036.387
  10. 10. Challenge of economic development Source: Eurada
  11. 11. “ The human creativity is the ultimate economic resource!” Source : Richard Florida Universities and high schools become the raw material of economic development as coal mines were the raw material of the industrial age !
  12. 12. The CHALLENGE <ul><li>How ensuring that the offer of public support services matches with the demand and expectations of entrepreneurs? </li></ul>
  13. 13. <ul><li>Enterprise hub </li></ul>
  14. 14. Ideas & Money Research Talent Market Capital IPR Open innovation Collaborative Projects Infrastructure Creativity Education Life long learning Technology transfer Licensing Proof of concept Equity Grants Profit reinvesment Products Technology Entrepreneurship Investment readiness Incubators Clusters Source: EURADA Science parks Public procurements
  15. 15. Ways forward <ul><li>I. Enterprise life cycle </li></ul><ul><li>II. Enterprise segmentation </li></ul><ul><li>III. Support services value chain </li></ul><ul><li>IV. Knowledge intensity in support services </li></ul>
  16. 16. Entreprise Cycle <ul><ul><ul><ul><li>Idea </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>People </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Market driven </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Research results </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Innovation </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Entrepreneur by necessity </li></ul></ul></ul></ul></ul><ul><li>Incubation </li></ul><ul><ul><li>Seed funding </li></ul></ul><ul><ul><li>Business plan </li></ul></ul><ul><ul><li>Proof of concept </li></ul></ul><ul><ul><li>Entrepreneurial skills </li></ul></ul>
  17. 17. <ul><ul><ul><ul><li>Incorporation </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Start-up </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Equity </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>1st Clients </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Human Resources </li></ul></ul></ul></ul></ul>
  18. 18. <ul><li>Growth </li></ul><ul><li>Overcoming death valley </li></ul><ul><li>Market validation </li></ul><ul><li>Equity burning rate </li></ul><ul><li>Profits </li></ul><ul><li>Quality, design, innovation </li></ul>Life Style Entreprise Death
  19. 19. <ul><li>Maturity </li></ul><ul><li>IPR – Research capacity </li></ul><ul><li>IPO </li></ul><ul><li>Merger & Acquisition </li></ul><ul><li>Market development </li></ul>
  20. 20. Problem in Europe <ul><li>Start-up rate Ok </li></ul><ul><li>Incubation performing well </li></ul><ul><li>But ... </li></ul><ul><li>No growth accelerator </li></ul>
  21. 21. SME Segmentation <ul><li>newly-developed companies; </li></ul><ul><li>spin-outs and spin-offs of large businesses, research centres and universities; </li></ul><ul><li>start-ups (less than five years in existence); </li></ul><ul><li>locally-rooted companies (micro-businesses and craft companies); </li></ul><ul><li>entrepreneurial growth companies; </li></ul><ul><li>innovative businesses and companies leveraging RTD outcomes; </li></ul><ul><li>companies in the process of being transferred; </li></ul><ul><li>subcontractors; </li></ul><ul><li>companies at risk of bankruptcy; </li></ul><ul><li>multinationals </li></ul><ul><li>social economy driven enterprises </li></ul>
  22. 22. Support Service Value Chain
  23. 23. Knowledge intensity in support services
  24. 24. <ul><li>Market failure: private sector: </li></ul><ul><li>Lack of provision of a support service </li></ul><ul><li>Asymmetry of information </li></ul><ul><li>Geography </li></ul><ul><li>Costs </li></ul><ul><li>Lack of mature demand for support services </li></ul><ul><li>Problem with target audience </li></ul><ul><li>Provision of early stage finance </li></ul>
  25. 25. <ul><li>Market failure: public sector: </li></ul><ul><li>Driven by offer, not by demand </li></ul><ul><li>Dogmatic approach </li></ul><ul><li>Fashion versus capability </li></ul><ul><li>Bureaucracy, red tapes, … </li></ul><ul><li>Lack of flexibility </li></ul><ul><li>Lack of investment willingness </li></ul><ul><li>Lack of financial engineering </li></ul>
  26. 26. Governance and strategy
  27. 27. Comparison DG Enterprise & Industry public consultation (SEC(2009)1197) and IRE expectations ENTERPRISES EXPECTATIONS INTERMEDIARIES EXPECTATIONS IRE Acces to finance Address new needs of innovative Post 2013 Internationalisation Better promotion of innovative SMEs Role of regions Networking Specific support for high growth potential enterprises From incubators to fast growing companies Intelligence Increase gross added value in the region Business involvement Knowledge/technology transfer Support enterprises in service sectors Impact of clusters
  28. 28. INNOVATION Product Process Business model <ul><li>High Tech </li></ul><ul><li>Manufacturing </li></ul><ul><li>Services </li></ul><ul><li>Non-technology </li></ul><ul><li>Technology integration </li></ul>Creativity Solved here Invented here start up incubation acceleration Challenges: Threats/opportunities: automatisation outsourcing digitalisation
  29. 30. IDEAS AND INNOVATION ROUTINE WORK Done by people ROUTINE WORK Done by machine s CREATIVE WORK Talent Digitalisation Outsourcing Automatisation Research Development Design Marketing and sales Global supply chain management Customisation Networks
  30. 31. Innovation by enterprises
  31. 32. Source: http://www.bayeconfor.org/media/files/pdf/InnovationDrivenEconomicDevelopmentModel-final.pdf
  32. 33. Business function and internationalisation
  33. 34. The paradox of access to finance <ul><li>Banks </li></ul><ul><li>Venture Capitalists have money </li></ul><ul><li>Stock Exchange </li></ul><ul><li>But argue that there aren’t enough good projects </li></ul><ul><li>What is a good project? </li></ul>
  34. 35. Access to funding <ul><li>OFFER = availability of funding sources </li></ul><ul><li>DEMAND = quality of business proposals </li></ul>
  35. 36. Offer of Funding <ul><ul><li>Value chain </li></ul></ul><ul><ul><li>Due diligence </li></ul></ul>
  36. 37. What are the funding options for an entrepreneur? <ul><li>« All money is not the same ! » </li></ul><ul><li>Own money </li></ul><ul><li>Family and Friends’ money </li></ul><ul><li>Loans with or without guarantees </li></ul><ul><li>Public grants </li></ul><ul><li>Equity </li></ul><ul><ul><li>Business angels </li></ul></ul><ul><ul><li>Seed capital </li></ul></ul><ul><ul><li>Venture capital </li></ul></ul><ul><ul><li>Mezzanine </li></ul></ul><ul><li>IPO on stock exchange </li></ul><ul><li>NB: Delay of payments – Advance on payments </li></ul>
  37. 39. Areas for improvement Source: Sally Goodsell, Finance SouthEast
  38. 40. Resistance test: here we sell cactuses and balloons
  39. 41. Is the human creativity really the ultimate economic resource? Source : Richard Florida – revised by Christian Saublens
  40. 42. Thank you for your attention ! www.eurada.org – info@eurada.org European Association of Development Agencies  +32 (0)2 218 43 13 -  +32 (0) 2 218 45 83 Eurada – Avenue des Arts 12 – Bte 7 – B-1210 Brussels

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