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I d - turunen skills development services for sm-es in finland


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The upgrading of workforce skills is key to the competitiveness of SMEs. In today’s business environment there is a premium on innovation that enables firms to develop new products and services, new production processes and new business models. This requires both in-house innovation and the ability to absorb knowledge from other firms and organisations, both of which call for a skilled labour force. Skills are also a critical but understated resource for entrepreneurship seen in the sense of business creation. Similarly to workforce skills, entrepreneurship skills will boost the competitiveness of local businesses thanks to the improved strategic and management competences of the entrepreneur.

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I d - turunen skills development services for sm-es in finland

  1. 1. Skills development services for SME’s in Finland OECD LEED workshop - Skills development for SMEs and Entrepreneurship 28th of November 2012 Mirke TurunenMirke Turunen 1
  2. 2. 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 TrainingMirke Turunen 2
  3. 3. Ministry of Employment and the Economy: Organisation 1.6.2012 MINISTER OF ECONOMIC AFFAIRS MINISTER OF LABOUR State Secretary Jan Vapaavuori Lauri Ihalainen State Secretary Jouni Hakala Janne Metsämäki PERMANENT SECRETARY HUMAN RESOURCES AND Erkki Virtanen ADMINISTRATION UNIT CORPORATE STEERING Mikko Salmenoja MEDIA AND • Strategies, financial and management COMMUNICATIONS UNIT • Co-ordination of EU and international Mervi Liukkonen affairs • Co-ordination of strategic projects Internal auditing Juha Pekka Niemi ENERGY ENTERPRISE AND LABOUR AND TRADE EMPLOYMENT AND REGIONAL KNOWLEDGE DEPARTMENT DEPARTMENT INNOVATION DEPARTMENT ENTREPRENEURSHIP MANAGEMENT Heikki Aurasmaa Esa Härmälä DEPARTMENT Raimo Luoma DEPARTMENT Petri Peltonen DEPARTMENT Tuija Oivo Markku Wallin • Regional development • Energy markets • Innovation policy • Research and foresight • Better regulation • Entrepreneurship development and • Structural funds • Emissions trading • Innovation • Steering and leadership • Labour law enterprise support environments of data administration • Regional steering • Energy efficiency and • Internal market policy • Employment and technology • Growth ventures • Customer relationship and business law enterprise support and service models • Renewable energy • Internationalisation • Consumer policy and • Competencies and and exports • IT services technical regulation quality of working life • Nuclear energy division • Industrial policies and • eServices • Competition policy • Integration of enterprise financing immigrants • Information management MEE Group agencies, institutions and organisations• Centre for Economic Development, National Emergency Supply Agency • Centre for metrology and accreditation • Employment and Economic • National Conciliator’s Co-operation • Finnish Competition Authority • National Board of Patents and Development Offices Transport and the Enviroment • VTT Office Ombudsman’s Office• Energy Market Authority • National Consumer Research Registration of Finland• Finnvera plc Centre • Tekes • State Nuclear Waste Management Fund Esa Lonka Helena Lamponen• Finpro/IIF • The National Consumer Agency • Finnish Industry Investement Ltd • Others• Geological Survery of Finland • Finnish Tourist Board •Finnsh Safety and Chemicals AgencyMirke Turunen 3
  4. 4. ELY Centre - Responsibilities and Offices •Population: 5.4 million, 15.8 inhabitants per km² •Economic development, employment, •Labour force 2,682 million people competence and culture (E) •Area total: 338,424 sq km •Water: 34,330 sq km •GDP per capita: 33,618 euros (2010) •Transport and infrastructure (L) •Environment and natural resources (Y)• 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 4Mirke Turunen
  5. 5. Enterprises by number of employees 2009 (primary production not included) (Source: Statistics Finland) Size of company Enterprises Share of all Share of Share of turnover enterprises, % personnel, % % Small enterprises : 259931 98,9 45,4 34,5 < 50 employees < 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 sized 2334 0,9 17,0 16,5 enterprises: 50 – 249 employees Large enterprises : 608 0,2 37,6 49,1 > 250 employees Total 263759 100,0 100,0 100,0Mirke Turunen 5
  6. 6. Mirke Turunen 6
  7. 7. 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 ( ) • 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 customerMirke Turunen 7
  8. 8. Specialist product services for SME’s The goal is to develop the business skills of SME’s and make it easier for 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 eligibilityMirke Turunen 8
  9. 9. 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 Additional consultation 300 euros/day/productMirke Turunen 9
  10. 10. 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/productMirke Turunen 10
  11. 11. 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 01/2007 – 06/2012: •Over 6 000 services •Over 34 000 consultation daysMirke Turunen 11
  12. 12. Specialist Product Services in 2014 + Basic Analysis Internationalisation and growth Plan to Grow 15 days/ 3 years Change ProductivityMirke Turunen 12
  13. 13. 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 • A software for determining the needs • Electronic office platform for SME’s • Renew consultation methodsMirke Turunen 13
  14. 14. Mirke Turunen 14
  15. 15. 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 In 2012 • 32 training programmes • Over 400 participantsMirke Turunen 15
  16. 16. Joint Purchase Training Training Plan Employer Service Provider ELY CentreMirke Turunen 16
  17. 17. 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 employersMirke Turunen 17
  18. 18. Joint purchase training Training Recruitment ChangeTraining PreciseTraining Training Target group All employers All employers All employers, specially SMEs Situation The employer can not find skilled The training is connected Technological or employees from the existing labour to staff reductions or operational changes that markets cessation of operations. require updating of the The aim is to enchance entrepreneur’s and the skills of the job employees’ skills. Also seekers. suitable during periods of fixed-term lay-offs. Financing Government 70% Government 80% Government 25-80% Employer 30% Employer 20% Employer 20-75% Content Vocational training Vocational training or Vocational training (min. 10 days – 2 years/student, preparatory training (min. 10 days – 2 usually 3 -9 months) (min. 10 days – 2 years/student) years/student) 18Mirke Turunen
  19. 19. For more information please contact +358 50 396 4804Mirke Turunen 19