case study France ICT Adoption Program for Small Businesses Intel World Ahead Program Passport to Innovation and Growth French government drives innovation and economic growth by accelerating ICT adoption among small businesses Le Passeport pour l Économie Numérique (Passport to the Digital Economy) program has helped hundreds of thousands of France s small businesses compete more effectively in the digital economy. The Passport to the Digital Economy initiative, designed with assistance from the Intel World Ahead Program, is helping small companies across France integrate ICT solutions. Accelerating ICT Adoption Small businesses are an engine of economic progress in both mature and developing markets. A vibrant small-business sector generates jobs, increases innovation, fosters an entrepreneurial culture, and enhances national competitiveness. Information and communications technology (ICT) is an effective tool for building this vital business sector and addressing national policy objectives. France has more than 3.1 million companies, of which 2.9 million have fewer than 10 employees. To foster innovation and growth among these small businesses, the French government led by the Ministry for ICT and the Ministry of Commerce, Industry and Trade developed a comprehensive initiative, the Passeport pour l Économie Numérique (Passport to the Digital Economy). Despite its effectiveness, ICT integration can be challenging for small businesses. Companies with 20 or fewer employees often have limited understanding of how they can benefit from digital technologies and lack in-house technology expertise. Many have limited funds available to acquire and maintain technology, and little access to ICT training and support. Since it began in 2007, the Passport program has helped more than 170,000 small companies across France integrate digital technologies to support innovation, economic growth, and competitiveness. The Intel World Ahead Program supports the Passport initiative as IT industry liaison and coordinator.
Success Story: Le marche militaire Le Marche Militaire is an army surplus store. Working with the Passport program, the store s owner, Nadia Célérier, launched an online store in 2006. Interest in the online store was so strong that Célérier had to rapidly increase the number of products available through the web site. Within six months, the site had grown from 50 products to 300, and today, most products available in the physical store are also available online. The company s Internet sales now represent one-third of revenue and total revenue has increased nearly 50 percent since development of the online store. The online store costs little to run and maintain, and the company s online presence has also led to an increase in in-store visits. Web site: www.lesurplusmilitaire.fr Program Features More than 750 ICT consultants provide training sessions for small businesses at over 550 locations across France. An online purchasing guide provides small businesses with free information on more than 23,000 software packages and 450 product offers that include platforms, peripherals, and telecommunication services. More than 1,500 resellers in 23 regions provide ICT-related services and support to small businesses. Results From 2006 to 2010, France s PC equipment rate (percentage of small businesses with one PC or more) rose from 72 percent to 98 percent. More than 170,000 small businesses have obtained a digital passport. Program expanding within France with plans to export to other countries. 2
Five Steps to Success Through the five steps described below, the Passport program has supported the growth of small businesses across France. The program has also created a dedicated communication channel to expand connections between the ICT industry and small businesses. Step 1: Partner with Organizations Connected to Small Businesses In France and many other countries, small businesses comprise a fragmented sector that can be difficult to reach. While small companies are often eager for ICT solutions, the business and technology ecosystem that supports these businesses is itself highly fragmented. Collaborative approaches are essential in these environments, where no one organization can meet the needs of all small businesses. The Passport team searched for the best channel through which the government could reach and connect with a broad range of small businesses. Because small businesses rely on their local chambers of commerce, chambers of crafts, and vertical syndicates, the program team sought an organization that was already working with those networks. In France, this organization was CEFAC (www.cefac.com), which now plays a critical role in the ongoing success of the Passport program. Because CEFAC already worked with and trained advisers for small businesses, the organization had the contacts and expertise to address the small-business community and train ICT consultants. Through the Passport program, CEFAC has trained and now manages 750 consultants who are experts in ICT solutions for small businesses. In addition, CEFAC manages the Passport web site, which provides an online purchasing guide, ICT reseller database, and other essential resources for small businesses (www.econumerique.pme.gouv.fr). The Passport program shows how crucial strong partnerships are. CEFAC worked extensively to organize the relevant local networks, and Intel helped us engage with a wide range of industrial players and service providers. Since its founding in 1961, the Center for Studies and Training of Trade, Services and Tourism industries (CEFAC) has trained more than 2,000 advisers to support the economic development of small and medium businesses across France. Today, CEFAC also trains ICT consultants through the Passport program. Using its training experience and existing connections to small businesses, CEFAC has been able to train 750 ICT consultants in just two years. Jean-Claude Ermenault, director of ICT at CEFAC and director of the Passport to the Digital Economy program 3
Success Story: La Maison Millière La Maison Millière is a restaurant with an antique shop and teahouse that is owned by Jean-François Lieutet. Now 63 years old, Jean-François is a selfeducated man who started his career selling goods on the street. Little by little, he saved enough money to start his own business. Lieutet had limited previous experience with ICT, but through the Passport program, he quickly recognized the value it could add to his business. He now interacts with his suppliers and conducts almost all of his sales and marketing activity online. The Passport program also helped him become aware of social networking sites, which he uses to promote his business and communicate with his customers. Web site: www.maison-milliere.fr Step 2: Organize the Training Process Once CEFAC agreed to promote the government initiative, the Passport team developed the training process, which included identifying hundreds of training locations all over France, creating training session content, and building the Passport web site. The Passport team enlisted local trade organizations to host free ICT orientation sessions at 550 locations across France, including overseas territories. Led by the 750 CEFAC-trained consultants, these sessions provide the trade organizations small-business members with a detailed introduction to digital technology tools and their potential business impact. The trade organizations receive multimedia presentation materials for the sessions, which they can customize according to each industry s requirements and concerns. Training modules are available on 23 topics, such as how to create your own e-commerce web site and how to manage customer and supplier communication with the help of ICT. Upon completion of the sessions, smallbusiness managers earn a Passport to the Digital Economy certificate that entitles them to access the online purchasing guide and ICT reseller database. Step 3: Improve Business Access to ICT While building the training process, the Passport team also worked with the ICT industry to develop end-to-end solutions specifically targeted at small businesses. This was necessary to ensure that once they received training, small businesses would not be abandoned and in fact would be accompanied throughout ICT purchase and implementation. Intel helped the Passport team contact and collaborate with a variety of local hardware manufacturers, software vendors, resellers, and other technology companies. Together, they developed ICT solutions that included networking connectivity, specialized software, service plans, and more all specifically designed to meet the needs of small businesses. The Program team also launched a recruitment campaign to engage with resellers who could provide services to very small businesses. The campaign rewarded the resellers, who generated new leads through the program. The campaign also benefited the government, which gained access to a valuable database of small businesses that today includes 1,500 resellers. Thanks to the Passport program, small businesses all over the territory have been oriented on the critical role that ICT can play in their business and how they can find local assistance. André Marcon, chairman of CEFAC and vice-chairman of the French Chamber of Trade and Industry 4
Step 4: Continually Update Program Content and Tools The Passport team continually refreshes and improves key elements of the program to remain relevant and to take advantage of changes in technology and business requirements. Recently, for instance, the program team has: Developed new training modules Rebuilt the Passport web site Simplified the enrollment program for business managers Step 5: Expand and Enhance Program Capabilities The Passport program is designed to scale easily. Already, a variety of new capabilities have been added or are being considered to deepen the connection between education, entrepreneurship, and employment: Trainings for new start-ups. Introduced by the Ministry of Industry in 2008, the auto-entrepreneur program encourages creation of small-scale start-up companies. The Passport team provides dedicated training sessions for these new start-up businesses (see sidebar on page 6). Online tools. A new train the trainer online tool will help ICT consultants follow a personalized learning path, share best practices with fellow consultants, and create new training modules. The online tool s innovative, bottom-up approach will alleviate the need for the Passport team to develop content for all of the training sessions, as it will allow consultants to integrate their own experiences from the field into new training modules. Entrepreneurship courses for students. To prepare young entrepreneurs, Intel plans to partner with universities, chambers of commerce, and business and vocational schools to integrate entrepreneurship-related curricula, content, and new courses. Support for small-business partnerships. Small businesses in France can partner with related businesses to expand their market reach and capabilities. These governmentsupported small business clusters will soon be trained through the Passport program on how to integrate their separate ICT processes. The Passport program will also provide advanced training modules to help the businesses effectively expand their ICT usage. Add-on programs. The French government plans to launch a second Passport program called the Passport for Sustainable Development. The program will rely on the existing structure for training small businesses, and will focus on corporate social responsibility and other topics related to sustainable development. 5
Passport Program Impact The Passport to the Digital Economy program benefits thousands of small businesses across France, and has the potential to create new jobs and keep the French economy vibrant and strong in an evolving global environment. The Passport program helps small businesses become aware of the benefits of ICT and enhances their ability to develop innovative new products, processes, and services. The program also strengthens the support system of the ICT resellers that work with small businesses. Best of all, the program s collaborative approach and success in influencing the hard-toreach small-business sector provides a sustainable model that can be exported to other countries around the world. Already, the Passport program has inspired a similar effort in Morocco. CEFAC shared its expertise with the Moroccan government, which plans to reuse much of the program s methodology and content, and customize other elements based on local business needs and requirements. The program team plans to export the Passport program to more countries in the years to come providing a new and innovative way to support the growth and development of small businesses. Auto-entrepreneur program In the past, high start-up costs and legal obligations deterred would-be entrepreneurs in France from setting up their own businesses. Today, through the autoentrepreneur program, new entrepreneurs pay tax and social contributions at a flat percentage rate of turnover. Charges are only due where there is income: If turnover is zero, nothing is owed. Most auto-entrepreneurs are also exempt from the value-added tax (VAT), as long as their income remains below a certain threshold. Anyone aged 18 or over who is not already trading as a business can register as an auto-entrepreneur, including students, retired people, and employees seeking to supplement their income. Since the initiative launched in 2008, auto-entrepreneur status has been granted to nearly 500,000 people. These new entrepreneurs are then eligible to receive specialized training through the Passport program. Achieve Your Vision Contact your Intel representative to discuss opportunities to support small businesses in your area. To Learn More: France Digital Passport Program (www.econumerique.pme.gouv.fr) Intel World Ahead Program (www.intel.com/worldahead) Passport Program training material (www.annuaires-econum.fr) Copyright 2011 Intel Corporation. All rights reserved. Intel and the Intel logo are trademarks of Intel Corporation in the U.S. and other countries. *Other names and brands may be claimed as the property of others. 0111/GO/HBD/PDF Please Recycle 324981-001US