ENTREPRENEURSHIP - YOUTH ENTREPRENEURSHIP
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1 ENTREPRENEURSHIP - YOUTH ENTREPRENEURSHIP Ankica Paun Jarallah Director General Hrvatski zavod za zapošljavanje (HZZ) May 2014, Turkey WAPES Conference
2 Who is an entrepreneur? An entrepreneur is a person who organizes and manages the business undertaking, assuming the risk in order to make a profit. Entrepreneurship is the willingness of an individual or more partners to enter into a business venture with investment of capital and financial underwriting with the aim of making profit.
3 What motivates a person to entrepreneurial venture?. to be their own boss,. to enjoy financial benefits,. to be employed after a job loss,... to be independent,. to produce an innovative product, that is to implement an innovative service. Simply put - to create and make something new!
4 GLOBAL PERSPECTIVE ON ENTREPRENEURSHIP Global Entrepreneurship Monitor (GEM) states: In all regions entrepreneurs exhibit relatively higher rates of subjective well-being in comparison to individuals who are not involved in the process of starting a business or owning and managing a business. Necessity-driven entrepreneurs have lower rates of subjective well-being compared to opportunity-driven entrepreneurs. Growth expectations and aspirations of early-stage entrepreneurs represent a key dimension of entrepreneurial impact. Individuals in factor-driven economies tend to have more positive attitudes on entrepreneurial measures such as: perceived opportunities to start a business; perceived skills to start a business.
5 Fear of failure when starting a business can deter an individual from exploiting perceived entrepreneurial opportunities. Entrepreneurial intentions tend to be the highest in factor-driven economies where fewer good job alternatives are available and more necessity-based entrepreneurship can be expected. Entrepreneurship as a good career choice tends to be a positive attitude on individual level. Necessity-driven entrepreneurs indicate that they started their business because there were no better options for work rather than because they saw the startup as an opportunity.
6 FACTS YOUTH ENTREPRENEURSHIP It has been estimated that 73 million young people are unemployed; studies by the International Labour Office (ILO) indicate that the youth are three times more likely than adults to be unemployed. The traditional job for life career path has become uncommon and the youth entrepreneurship will need to be seen as an additional way of allowing the youth into the labour market and as a way of promoting job creation. Young people are likely to have fresh ideas and are more likely to hire fellow young persons. Young people, who are self-employed, have higher life satisfaction. Entrepreneurship offers unemployed/discouraged youth an opportunity to build sustainable livelihoods and a chance to integrate themselves into a society. Entrepreneurial experience and/or education help the youth develop new skills that can be applied to other challenges in life.
7 YOUTH ENTREPRENEURSHIP Who are potential entrepreneurs? Individuals who believe that they have adequate entrepreneurial skills and who perceive business opportunities. Individuals who are actively involved in setting up a business. Individuals, who are confident that they possess the skills to start a business, are four to six times more likely to be involved in entrepreneurial activity. Individuals who intend to pursue a business opportunity.
8 YOUTH ENTREPRENEURSHIP Motivation for starting the business is a great business idea and the right opportunity in the market. the desire for independence. Family members had some influence on their decision to start a business. Young entrepreneurs have a strong belief in themselves and their products/services.
9 Hrvatski zavod za zapošljavanje YOUTH ENTREPRENEURSHIP European context Only 17.3 percent of the youth indicate that they believe that there are good business opportunities as well as that they have the skills and knowledge necessary to start a business. Young people indicate that fear of failure would prevent them from starting a business. Europe has the lowest percentage of the youth that believe that starting a business is a good career choice. New businesses in Europe started by young persons are not overly concentrated in retail, hotel and restaurant sector and are well represented in the IT sector. Few young persons, who started new businesses, have high growth expectations and expect to offer employment to 20+ people within the next 5 years.
10 Activites of the Croatian Employment Service informing and self-employment
11 Preconditions to support for self-employment Counselor for self-employment support to unemployed persons and self-employed persons through counselors for self-employment trainings for counselors for self-employment regional coverage 22 regional offices 52 counselors for selfemployment data created availability of relevant information on institutions providing free-of-charge seminars, counseling sessions, workshops for early-stage entrepreneurs continuous informing of counselors about labour market trends related to self-employment, loan grants, workshops, etc.
12 Preconditions to support for self-employment Partnerships for self-employment Agreements signed at the national level: Croatian Chamber of Economy, Croatian Chamber of Trades and Crafts, Croatian Employers Association. meetings held and cooperation agreed upon at the local level. The goal is to develop partnerships within the framework of local partnerships for employment in order to open up a possibility for financing self-employment programmes at the local level and from EU resources.
13 Activities with persons with clear entrepreneurial idea Individualno counseling savjetovanje with sa counselor savjetnikom for selfemployment za samozapošljavanje Informing about options being offered at the local level about workshops, seminars, loan grants, partnerships, support, etc. Pomoć Help with pri business izradi poslovnog plan design plana Request Zahtjev for za sufinanciranje co-financing samozapošljavanja of self-employment and/or fori/ili one-time za jednokratnu payment isplatu of unemployment NN benefits Positive Pozitivna assessment odluka i potpisivanje and signingugovora a contract Support, Podrška, follow-up praćenje 12 mjeseci months
14 Activities with persons with no clear entrepreneurial idea Individual counseling with counselor for self-employment Informing about possibilities being offered at the local level, loan grants, entrepreneurship, partnerships, support, etc Referring to workshops in the CES as well as to workshops, seminars and additional counseling sessions outside the CES Help with a business plan design Submitting a request for co-financing and/or one-time payment of unemployment benefits Support, follow-up 12 months
15 workshops trainings Regional office Counselor for self-employment and unemployed person Business plan Co-financing Team: counselor for self-employment, counselor from a division in charge for active employment policies, regional office and others when necessary. Partnership for selfemployment, network with partners at local level. Support and follow-up.
16 Financing of Self-employment National Employment Incentive Plan de minimis support One-time payment of unemployment benefits Other sources counties, cities, business banks, business angels One-stop shop counselor for self-employment in charge for all communication until the request has been granted
17 Data for 2013 In 2013 the total of 186 thematic group informing sessions were held, aimed at self-employment and entrepreneurship promotion. Self-employment counselors organized 11,500 individual counseling sessions for 9,538 persons. The total of 202 workshops for self-employment were held (business plan design, raising awareness about entrepreneurial possibilities, self-employment subsidies) The total of 5,730 persons were beneficiaries of selfemployment subsidies.
18 Follow-up of self-employed persons continuous support during the first year of business visits to entrepreneurs (self-employed persons) every three months resolving difficulties (in cooperation with other institutions) creating partnership relations through regular contacts and visits support with hiring new employees
19 Instead of conclusion Support to self-employment of unemployed persons is possible only through team work. Newly created work places will continue to exist only with continuous support during the most critical first year of business. We will be more successful with a support of partners at the local level. Local partners should also provide support, but it is us that our clients trust most, and they have greatest expectations from us. Networking will enable acquiring knowledge in the field of self-employment our counselor must be informed and have all the info which could be helpful to self-employed persons.
20 HRVATSKI ZAVOD ZA ZAPOŠLJAVANJE Radnička cesta Zagreb hzz@hzz.hr *** HVALA NA POZORNOSTI!
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