ENTREPRENEURSHIP PROJECT

Progress and proposition September 2015

Entrepreneurship on small islands

a challenge for their future

• After a long decline the population is recovering on some islands• A complete change of economy on most of small islands during last

century• Reduction of primary activities• New tourism related activities• Heritage discovery• Extra activities permitted with ICT

• From some decades, new entreprises on small islands• Most of new entreprises on islands are small & medium size : SME’s

Observation of recent developments on small

islands

• Economy is essential to maintain and increase population• From one Region/Country to another, very different

ways to counteract remoteness & isolation of small islands• Those different ways could be opportunities to

develop economy on small islands

from idea to project

Aims of the project• Identification of entrepreneurship mechanisms in small

European islands including: existing assets and constraints (economical, legislative & regulatory, social...)•Pooling, implementation and promotion of best practices

and favorable mechanisms for SMEs•Awareness of local, regional, national & European

governments to improve rules and support economic mechanisms for small islands• Support development of small islands & take care of their

resources for future (sustainability)

Can an INTERREG project meet ?

• « The European Union works to reduce disparities in the levels of development, growth and quality of life in European Regions through its coherence policy. »

• “ The Interreg Europe programme financed by the European Regional Development Fund (ERDF) aims to improve the implementation of regional development policies and programmes, in particular programmes for Investment for Growth and Jobs and European Territorial Cooperation”

Two type of actions

• Projects: Public organisations from different regions in Europe work together for 3 to 5 years on a shared policy issue. Action plans in the participating regions will ensure that the lessons learnt from the cooperation are put into action. Partners will monitor how far the action plans are implemented. Calls for project proposals are launched throughout the programming period.

• PlatformsA tool for faster and better sharing of knowledge to help policymakers do their job better

Eligibility area

• 28 EU Member States • Switzerland and Norway

Who can participate ?

• Public authoritiesNational, regional, or local authorities

• Public law bodies (bodies governed by public law) (a) they are established for the specific purpose of meeting needs in the general interest, not having an industrial or

commercial character; (b) they have legal personality; (c) they are financed, for the most part, by the State, regional or local authorities, or by other bodies governed by public law;

or are subject to management supervision by those authorities or bodies; or have an administrative, managerial or supervisory board, more than half of whose members are appointed by the State, regional or local authorities, or by other bodies governed by public law; • A private non-profit body

(a) they do not have an industrial or commercial character; (b) they have a legal personality; and (c) they are not financed, for the most part, by the state, regional or local authorities, or other bodies governed by public

law; or are not subject to management supervision by those bodies; or not having an administrative, managerial or supervisory board, more than half of whose members are appointed by the State, regional or local authorities, or by other bodies governed by public law.

Non-profit bodies cannot take on the role of a lead partner

Budget

•The program is financed by the European Regional Development Fund (ERDF). The total budget for the program is EUR 359 million.•EUR 322.4 m is for interregional cooperation projects implemented by EU partners. Partners from Norway and Switzerland will be co-financed by national funds from their respective countries.

Co-financing for projects

Co-financing rates for projects are as following:

• 85% ERDF for public bodies and bodies governed by public law from all 28 EU partner states• 75% ERDF for private non-profit bodies from all 28 EU

partner states• 50% Norwegian funding for public bodies governed by

public law and private non-profit bodies from Norway

Interreg Europe

Four topics :

Research and Competitiveness Low carbon Environment &Innovation of SMEs economy resources efficiency

What topic is Entrepreneurship

project ?

Competitiveness of SMEs

Other topic interesting small islands & entrepreneurship

Environment &

resource efficiency

Entrepreneurship on small islands

and resources efficiency

Interested partners • National federation• Association îles du Ponant• FÖSS• Åland• Irish Island association• Scottish islands federation• SRF• Greek islands• Croatia• Estonia

correspondant• Denis Bredin• To be precised• Christian Pleijel• John Walsh• SIF (camille Dressler)• Anna-Karin Utbult Almkwist• Lefteris ?• Interest to be precised • Interest to be precised (university)

Discussion: Esin involvement

• Esin Should give political suppport ?• Esin Should validate Lead partner ? Be lead partner ?• Esin Should validate national partner on behalf of

it’s national member ?• others…

Aims of the project

• Identification of entrepreneurship mechanism in small European islands including: existing assets and constraints (economical, legislative & regulative, social..);

• Pooling, implementation and promotion of best practices and favorable mechanism for enterprises;

• Awareness of local, regional, national & European government to improve rules and support mechanism for the economy of the islands.

Proposals to reach this objectives

link island stakeholders : • twinning , • exchange trips , •workshops, • island conferences •Web site (ESIN web site extension?) etc.

3 Major axes to the project

• 1 Comparative analysis of the situation of economic activities on the islands;

• 2 Analysis and comparison of significant economic successes and failures over the past 10 years;

•  3 Displaying the results and promoting entrepreneurship;

Comparative analysis of the situation of economic activities on the islands• insular over-costs (see French example) ;• specific impacts of laws and regulations on island situation;• compensation mechanisms existing on different Regions &/or Countries (ie VAT rate…, support to transport, solidarity mechanism, contribution to electricity services)…

 The impact of this mechanisms will be analyzed regarding the main economics components:

• Primary activity: agriculture Fishing Activity• Secondary activity : production transformation• Tertiary activity: tourism, services, transport, cultural activities ...

comparison of significant economic successes and failures the past 10 years

In order to get significant data allowing identification of positive and negative factors, each partner in its Region/Country, will identify and each main economic component: • 3 example of business success• 2 example of business failure

Analyze the reasons why it’s a success or a failure, in both cases, what to do or what to avoid : will be the main questions.

Displaying the results and promoting entrepreneurship

Share and promote, best success stories and situations, successful experiences, identification of limiting factors and strengths an assets 

The producible could be: the promotion and evaluation could take place during 2 years after the 3 first years of the main entrepreneurship project.

• Handbook explaining the main results and giving suggestion to :o improve regulations, o improve support mechanisms o set up compensation mechanisms

Points 1 & 2: How to do this jobThe project would call out specific contractors and consultants to carry and produce reports, 2 ways to discuss:

• 1 To ask to the lead partner to supervise each theme• 2 To set up working groups, each partner could supervise a theme

• web site (usual tool during the program)• educational program on entrepreneurship for pupils on

the islands• “island destination” could be a promotion program

under “ESIN flag” giving a better visibility of European small islands dynamics (could be: a book, TV programs, Radio programs etc.)

• Label “produced on islands: valuation of island products (to a better added value and sustainable management of island resources).

• Others ???

Suggested tools

Point 3 how to do it ?

1 To share actions in between partners under a coordination/action

2 To appoint contrcators to work under coordination of one partner/action

3 mix in between the 2 ways: depending of what the partners can offer.

lead partner is public : University, regional or local council, public organisation…

• UE grant 85% partners contribution : 15% Total 100%• 1 326 000 234 000 1 560 000

suggestion for financial and programPreparation cost : 15 000 €

this would be refunded if application successful, lost if unsuccessful

Program budget

Partner contribution can be staff time

imputationcommon cost

lead partner partner 1 partner 2 partner 3 partner 4 partner 5 Total

preparation cost 15 000,00 €administrative management 585 000,00 €reporting 120 000,00 € 10 000,00 € 10 000,00 € 10 000,00 € 10 000,00 € 10 000,00 €comptabilité 125 000,00 €suivi contracts 120 000,00 €coordination 120 000,00 € 10 000,00 € 10 000,00 € 10 000,00 € 10 000,00 € 10 000,00 €frais générauxcontractors 615 000,00 €surcoûts 140 000,00 €lolcal situation 140 000,00 €case study 335 000,00 €workshop 200 000,00 €start meeting 6 000,00 € 6 000,00 € 6 000,00 € 6 000,00 € 6 000,00 € 6 000,00 €surcoûts 6 000,00 € 6 000,00 € 6 000,00 € 6 000,00 € 6 000,00 € 6 000,00 €local situation 6 000,00 € 6 000,00 € 6 000,00 € 6 000,00 € 6 000,00 € 6 000,00 €case study 6 000,00 € 6 000,00 € 6 000,00 € 6 000,00 € 6 000,00 € 6 000,00 €final results 20 000,00 € 6 000,00 € 6 000,00 € 6 000,00 € 6 000,00 € 6 000,00 € 6 000,00 €workshop 39 000,00 €start meeting 1 200,00 € 1 200,00 € 1 200,00 € 1 200,00 € 1 200,00 € 1 200,00 €surcoûts 1 200,00 € 1 200,00 € 1 200,00 € 1 200,00 € 1 200,00 € 1 200,00 €local situation 1 200,00 € 1 200,00 € 1 200,00 € 1 200,00 € 1 200,00 € 1 200,00 €case study 1 200,00 € 1 200,00 € 1 200,00 € 1 200,00 € 1 200,00 € 1 200,00 €final results 1 200,00 € 1 800,00 € 1 800,00 € 1 800,00 € 1 800,00 € 1 800,00 €results site web 20 000,00 €teaching 20 000,00 € 10 000,00 € 10 000,00 € 10 000,00 € 10 000,00 € 10 000,00 € 10 000,00 € 80 000,00 €label 20 000,00 €handbook 20 000,00 €

Total 715 000 € 546 000 € 59 400,00 € 59 400,00 € 59 400,00 € 59 400,00 € 59 400,00 €Grand Total 1 558 000 €

travel accomodation

staff (nbre days) 1 day = 300€

And Now: •Lets Go ?•Who is partner ?•Who is lead partner ?•When do we apply ?