INCLUSIVE ENTREPRENEURSHIP IN THE PRINCIPALITY OF … · This report outlines a pilot study...

Good Practice in Inclusive Entrepreneurship

INCLUSIVE ENTREPRENEURSHIP IN THE PRINCIPALITY OF

ASTURIAS

D. Rafael Vigil Álvarez D. Guzmán García González-Posada

CIUDAD INDUSTRIAL DEL VALLE DEL NALÓN, S.A.U

Unidad Administradora del Fondo Social Europeo.

MINISTERIO DE TRABAJO Y ASUNTOS SOCIALES

May 2007

Inclusive Entrepreneurship in the Principality of ASTURIAS

Inclusive Enterpreneurship Community of Practice

2

CONTENTS PAGE

Executive summary .......................................................................................... 3

1. Introduction ............................................................................................. 7

1.1. What is the Community of Practice On Inclusive Entrepreneurship? ............................... 7

1.2. The process of testing the tool in asturias ........................................................................ 9

1.3. Main lessons from testing the tool in the principaliy of asturias...................................... 11

2. Enterprise Ecology ................................................................................ 12

2.1. Demographics: The area and its people ......................................................................... 12

2.2. Key employment challenges. .......................................................................................... 14

2.3. Entrepreneurial dynamics ............................................................................................... 15

3. The Policy Framework .......................................................................... 16

3.1. Administrative conditions and framework ....................................................................... 16

3.2. Strategy for inclusive enterprise ..................................................................................... 17

4. Stakeholder Assessment of Policies for Inclusive Entrepreneurship19

4.1. Introduction to section ..................................................................................................... 19

4.2. Creating the culture and conditions for entrepreneurship ............................................... 19

4.3. Start-up support and training .......................................................................................... 22

4.4. Support for consolidation and growth ............................................................................. 24

4.5. access to appropriate finance ......................................................................................... 27

4.6. Access to appropriate finance ........................................................................................ 29

5. Summary of key strengths and areas for improvement identified by stakeholders ................................................................................................... 30

5.1. Introduction ..................................................................................................................... 30

5.2. Strengths and weaknesses of the enterprise support system ........................................ 30

6. Possible solutions from other regions ................................................ 31

Annex 1 The Tool completed for Principality of ASTURIAS ...................... 34

Annexe 2 ASTURIAS SUPPORT SYSTEM .................................................... 44

Annexe 3 strentghs and policy challenges from prespective of specialist advisors and entrepreneurs .......................................................................... 51

Annexe 4 ASTURIAS INDUSTRY ................................................................... 53

Annexe 5 policy makers and specialist advisers ........................................ 54

This study and the Community of Practice on Inclusive Entrepreneurship has been co-funded by the European Commission



3

EXECUTIVE SUMMARY

This report outlines a pilot study undertaken in Asturias to test and evaluate a framework for the assessment of inclusive entrepreneurship and the identification of good practice. The study is part of a Community of Practice project involving Wales, Belgium, Spain, Portugal and Germany.

The framework is based on an Excel spreadsheet tool and has four sections for policy makers; one for enterprise ecology, one for specialist advisers and one for entrepreneurs from different target groups. These groups include unemployed, women, migrants and ethnic minorities, 50 plus, young people under 30, people with disabilities and social enterprises.

Interviews have taken place where individuals, within each of the stakeholder groups, were asked to comment on and score (4= totally agree to 1= totally disagree) a statement about entrepreneurship within the themes of strategy, culture, start-up support, consolidation and growth and access to finance.

Scores and comments were recorded in electronic form and a summary of scores produced for each of the stakeholder groups. This score was then colour coded, red, yellow or green, depending on the value and tables produced of the colour coded average score for each statement within each theme.

The tables are then analysed to identify where entrepreneurship activity is viewed to be good (green), fair but needs to be kept under review (yellow) and poor (red). This provides a tool which can form the basis of identifying where entrepreneurship practices are good and could be used as examples of good practice or where they may be gaps in provision or needs of particular groups of entrepreneurs.

In this pilot a relatively small number of interviews were undertaken as the main objective of the study was to evaluate the tool and process and then make recommendations for future developments. However, through the interviews and analysis of the results a number of conclusions have been discussed which identify existing good practice and where future challenges lie.

The project has also involved the identification of good practice within countries which are collated in an on-line database. This provides opportunities to search the database for examples of good practice from across Europe which could then be investigated and evaluated for potential implementation to address a gap in provision identified in the matrix tool.

The flexibility of the tool enabled the following to be evaluated:

The visual format of the output from the matrix analysis easily identifies where there are areas of good practice, gaps in provision or needs for specific target groups.

A number of “red” cells can identify where there are barriers experienced by various groups or there is a lack of provision.

The database of good practice can be searched to address areas where gaps are identified.

The results for each statement from entrepreneurs across the different target groups can be compared to identify any differences in experiences.

The average score from policy makers or specialist advisers to a statement can be compared with the response from entrepreneurs. This helps to evaluate whether programmes or facilities are being accessed by entrepreneurs.

OUTCOMES OF USING THE TOOL



4

The use of the inclusive entrepreneurship tool has allowed reviewing the main strengths of the Asturias system. For our stakeholders are the following:

Nevertheless, there are more areas to improve. The issues that have been found as key challenges thanks to the tool seem to be:



5



6



7

1. INTRODUCTION

This report outlines a pilot study undertaken in ASTURIAS (SPAIN) to test and evaluate a framework for the assessment of inclusive entrepreneurship and the identification of good practice. The study is part of a Community of Practice project involving Wales, Belgium, Spain, Portugal and Germany.

1.1. WHAT IS THE COMMUNITY OF PRACTICE ON INCLUSIVE

ENTREPRENEURSHIP?

CoPIE is a learning and communication platform for people who are passionate about inclusive entrepreneurship. We work on the design and delivery of policies which make it easier for under-represented groups to become self employed or start up a business. We have called this „inclusive entrepreneurship‟. It builds on the work carried out over the last five years by nearly 300 EQUAL partnerships on opening up business creation to all members of society. Many of the 12 countries involved in this work created National Thematic Networks to exchange and mainstream their findings. The Community of Practice also drew heavily on the experience of the EQUAL partnerships involved in the Social Economy.

Inclusive entrepreneurship

Inclusive entrepreneurship is a comprehensive approach to widening the range of people that start and grow their businesses. It drives up employment and activity rates and cuts unemployment. It is a diversity assured approach that works effectively in communities that are discriminated against. To widen entrepreneurship we have brought together a Community of Practice on Inclusive Entrepreneurship CoPIE led by Flanders and co-financed by the European Commission. CoPIE is an open network aiming make entrepreneurship an attractive and viable option for more people during the 2007-13 period. CoPIE has developed a new action planning approach which will be presented for the first time to around 300 delegates from the EU Member States at a Policy Forum in Hannover on 5-6 June 2007.

The Four entrepreneurial ladders out of exclusion

Although the definitions vary slightly in each Member State, the main themes dealt with in business creation are very similar across the countries. They have been described as the four parts of “an entrepreneurial ladder out of social exclusion”. The four parts are:

creating the culture and conditions for entrepreneurship;

integrated start-up support and training,

support for consolidation and growth and

access to appropriate finance

In all these areas there is already an important reservoir of good practice on how to promote inclusive entrepreneurship in many Member States. But this still generally takes the form of pilot projects and initiatives. At the end of Equal, there is a risk that this knowledge and experience can be lost. Our approach aims to combat this by helping regions to mainstream the good practice from all over Europe.



8

The founding partners

Flanders, Germany, Spain, Portugal and Wales are the founding members of CoPIE. France, the Netherlands, Greece and Wallonie are participating as observers. They have all had direct experience of trying to close the gap between employment and entrepreneurship policies. This gap exists because those concerned with social inclusion and employment policy tend to prioritise combatting exclusion through employment. European employment policy is increasingly concentrated on supply side solutions (like training, counselling and “flexicurity”) for helping the labour force adapt to a rapidly changing environment created by globalisation and an ageing population. Policies for business creation tend to receive less attention.

The people involved in the Community of Practice believe that many more people from disadvantaged groups can help to create their own future rather than hope that decent jobs “trickle down” from the high technology, high growth sectors. They argue that “entrepreneurship” should not be seen as the prerogative of a privileged few. It is already a survival strategy for millions of Europeans – and, with the right conditions and policies, it has the potential for unleashing the creativity of millions more.

Developing Action Plans for Inclusive Entrepreneurship

One of the first tasks of the Community of Practice has been to design a methodology for developing “action plans” for Inclusive Entrepreneurship. The action plans are built around a tool that takes the stakeholders systematically through an analysis of enterprise support in their region, sub region or city. The tool itself consists of four scorecards on excel spreadsheets which are already available on-line At present, this preliminary version of the tool and bank of good practices can be consulted on the CoPIE website.

The tool helps policy makers and practitioners concerned with entrepreneurship to identify the main gaps or challenges to the support system for entrepreneurship in the four main themes identified by EQUAL - from the point of view of specific groups. Policy challenges are identified from the scoring process.

Armed with this knowledge they can locate the good practices developed elsewhere to meet similar challenges in the area of culture and conditions, start-up support and training, consolidation and growth and access to appropriate finance.

Finally, they can bring both elements together to design an action plan or strategy for inclusive entrepreneurship for the next period. Now that CoPIE has established a sound basis for co-operation we plan to grow the existing community of practice by adding five to ten new member regions from a range of different Member States. We are particularly keen to expand our network to include the new Member States

The rest of this report describes how the tool has been tested by one of the members of CoPIE.



9

1.2. THE PROCESS OF TESTING THE TOOL IN ASTURIAS

This work displays the first results of the use in Spain of the tool designed to present the inclusive entrepreneurship policies in Europe.

The region chosen is the Principality of Asturias, for two reasons. Firstly, the local employment and economic situation, in being very representative of industrial regions in decline which are overcoming this stage, while moving towards a more open, service-oriented economy, but still with employment problems for certain sectors and groups.

And secondly, for the efficient system of support for entrepreneurs and business, with many organizations working along these lines for many years now. Asturias is the only Spanish region that may count on a specific local program for the promotion of the entrepreneurial culture throughout society, from primary education to the consolidation of business projects.

Ciudad Industrial del Valle del Nalón, S.A.U – VALNALÓN - is a public management society created in 1987 with a specific goal which is: the design and development of a regeneration project of the land and premises previously occupied by DURO FELGUERA steelworks, after its closure in 1984. In the early years, VALNALON was only focused on infrastructure development. As a result, nowadays two business incubators are located within VALNALON premises, one of them exclusively for ICT companies. Also we launched the Industrial Estate, with a 24 companies, an IT Training Centre and demonstration unit, a catering school, an Internet Resource Centre, and recently it has been chosen by the IT company, CAPGEMINI, to set up a centre where more than 300 young people work.

Valnalon belongs to the regional government, through the Institute for the Economic Development of the Principality of Asturias (Industry and Employment Department) and its site in the centre of Asturias, in the coal mining area of Langreo, in the river Nalon´s valley.

Several of VALNALON initial goals have been achieved. Hence, we keep encouraged to keep on working focusing our efforts on stimulating cultural mindset change in the inhabitants of our region. The lack of entrepeneururial culture makes necessary to develop entrepreneurship skills and attitudes of people. In order to meet such need, Valnalón designed a training strategy in 1990, known as CADENA DE FORMACIÓN DE EMPRENDEDORES (Training Programme for Entrepreneurship). The training program follows a chain-like pattern where the first link is Primary Education and the last one represents “graduate” firms. Our project aims are motivating, training, giving advice and supporting “would-be” entrepreneurs.



10

VALNALON TECHNOLOGICAL CITY



11

In order to prepare this work there has been a selection from among the principal policy- makers for entrepreneurial promotion, mostly at the regional level (60% of those selected), this being where there is found the main legal competence in the subject-matter. However, there was also the need to know the opinion of the municipalities, urban as well as rural. Most of all, the participation was needed of those who maintain their own programs in support of self-employment, and who have created services in general for entrepreneurs in their areas. In the annex are found some of the more representative persons and organizations.

Regarding expert advisors, there were 43 that it was possible to interview, all of them working in organizations, businesses, and public foundations, and in daily official contact with the object-groups of the program.

To help the entrepreneurs or the users of this program, a search was made for entrepreneurial profiles with recently created business, people that might have a broad view of all the process, including consolidation. To this end there were 29 interviews of persons that could be representative of women, immigrants and ethnic minorities; of those over 50 years of age, and of under 30 years old; disabled people, and social enterprises. The largest group was that of women (44, 82%). Every individual program participant was allowed to choose the group with whom that user most identified.

During the months of April and May 2007 the questionnaires were answered and personal interviews were arranged. As means of delivery, electronic mail was used with the policy makers for entrepreneurial promotion that were chosen, those that had responded within a period of ten days. The opportunity to have 27 expert advisors available (in a workshop from the program ' Steel Cities, an entrepreneurial space ' Equal programme) was used to distribute the above referenced surveys, and personal interviews were arranged with 16 other advisors. All the entrepreneurs have been interviewed directly.

1.3. MAIN LESSONS FROM TESTING THE TOOL IN THE PRINCIPALIY OF

ASTURIAS

It has been extremely useful to show the strengths and weaknesses of the entrepreneurial support system. In Asturias case, the tool has showed how strong the entrepreneur supporting system is with information, premises and business centers for start up, but the weaknesses of the financial management support.

It also helps to deal with the focus groups, because it signals what kind of tasks have been done properly, and how and in which way the issues have to improve. The microcredit system in Asturias is running in a proper way with women, but it´s not reaching other groups like migrants or people with disabilities.

Give a quick analysis as a first step to go deeper searching the real causes of the problems. Why the Asturias policy makers and entrepreneurs know the need of more premises for growth and consolidation, but do not the young under 30 and women advisors?



12

2. ENTERPRISE ECOLOGY

2.1. DEMOGRAPHICS: THE AREA AND ITS PEOPLE

The Principality of Asturias is situated in the north west of Spain, and has an area of some 10.600 km2. The population is slightly higher than one million inhabitants (1.076.896 persons), and has generally been stable for over than the last five years (growing by 1,31% during this time). The population older than 65 years of age represents 22,10% of the total, while the number under 15 years of age reaches 12,96%

This composition highlights the slight weight carried to this day by the immigrant population and ethnic minorities, nearly to 25.000 persons now. That number represents the 2,6 % of the total population, and most of them (18.869) came from outside the UE.

The number of handicapped persons is over 9, 7 % of the total population, since the Spanish average is about the 9 %.

Asturias presents a strong territorial contrast: In the central area, viewed from the cities of Gijon and Aviles in the north and the mining areas of Mieres (Caudal) and Langreo (Nalon) to the south, including the capital, Oviedo, in the center of this extension, are recorded 857, 795 inhabitants, being close to 80 % of the total Asturias population. This is an urbanized area, where is found nearly all the commercial and industrial activity of the region. In many localities the political-territorial limits are no longer noticeable, which gives the sensation of being in one metropolitan zone, all of which has come to be called "Astur- City".



13

On the other hand, the “wings” of the Asturias region, i.e. the western and eastern sections, contain declining percentages of the overall population, with a high degree of demographic ageing. These are the areas where the principal activities are agriculture and husbandry, and food-processing industries. In the coastal towns of this zone there is a concentration of tourist activity; with the additional weight of the real-estate market included as well, primarily second homes.

There is a severe problem of depopulation of the rural areas and the mining districts. From the years 1991 to 2005, all Asturian districts have lost population, with the exception of the metropolitan areas of Oviedo and Gijon: Eo-Navia, -13,29 %; Narcea,- 19,33 %; Avilés, -3,40 %; Caudal, -14,37 %; Nalón, -10,78 %; Oriente, -7,39 %. The area around Oviedo has grown by 5, 53% and that of Gijon by 4, 85%.

Ageing of the population, with an impending drastic fall in the young population over the next 10 years. Asturias has the lowest birth rate in all Spain (7,07% in the year 2005. national average, 10,75%), and a constant negative growth rate.

In spite of the challenges faced by the possibilities for job-creation, as explained in the following chapter, Asturias presents positive aspects. Educated Population.: the region has one of the highest indexes of formal education in the country, including the one of the largest rate of population that pass access exams to university compared to the overall population: 46,8 % (national average, 38,9 %). This rate is higher in women: 57 % (national women average, 46, 8%)

Utilization of Information Technology- The population with wide-band coverage is 55, 50% of the total. There is a general institutional consensus to bring IT access to all social sectors. Asturias has been one of the first regions in Spain to create a public network of internet resources centres and consulting services in new technology for business development.



14

2.2. KEY EMPLOYMENT CHALLENGES.

Table 1 Employment Challenges in ASTURIAS

Problem Key points

Low employment and activity rates

Activity rate of 49,86 % (Spanish average, 58,33%)

High female unemployment Women unemployment rate of 13,03 % (UE27:8,3 %) Women activity rate, 40,65 % (Spanish average, 47,95%)

High youth unemployment Under 25 unemployment rate, 23,7 % (UE27: 16,6 %)

Low pay, casual employment

Casual employment represents the 30,67 % of the total contracts. The man pay is over the 3,64 % of the national average for men; the women pay is under the 10, 34 % of the national average for women.

Loss of jobs last 5 years In the last 5 years the agriculture has lost 12.443 jobs, and coal mining 4.407.

Main territorial disparities Central area, and side areas

Main growth sectors/opportunities

Information Technologies (IT), Harbours and Sea development industry, Energy

Other

Table 2 Employment change by sector 1990 - 2005

Key sectors Employment 1990 (or 91)

Employment 2000 (or 2001)

%change 1990 - 2001

Employment 2005 (or 2006)

% change 2000-2005

Agriculture 64.678 37.293 - 42,34 % 24.850 - 33,37 %

Mining and extraction

25.012 9.334 - 62,68 % 4.927 - 47,21 %

Manufacturing 63.575 52.375 - 17,62 % 55.308 + 5,60 %

Services 196.391 223.897 + 14,01 % 269.180 + 20,22 %

Construction 35.920 43.290 + 20,52 % 47.355 + 9,39 %



15

2.3. ENTREPRENEURIAL DYNAMICS

Table 3 Enterprise characteristics of ASTURIAS

Firms Notes

Total 70.115

% Micro* 90,80%

% Small* 4,22%

% Social* 1,18%

Birth rates 12,70% Cantabric area

Survival + 5 years 10,5 % Cantabria area

SECTOR % companies % of working population

companies with more than 20 employees

INDUSTRY 6,22 % 8,61 % 9,84 %

CONSTRUCTION 14,01 % 15,43 % 3,57 %

TRADE 26,66 % 75,13 % 1 %

OTHER SERVICES 53,11 % (included above) 1 %

In the services sector, the 74, 06 % of the companies have two or less employees.

More than the 90, 00 % of the firms are micro companies. A fixture in local economic statistics is that the 51, 95 % of existing companies lack workers. In this item Asturias leads the nation

The self-employment rate is 17, 71 %, higher than national (16, 2%), and European rates (13 %).

The number of self-employed workers reaches more than 69.000 persons in Asturias, primarily dedicated to agriculture and husbandry (23, 49%), general trade and repair of automobiles (23, 34%), construction (11, 86%), and the hotel and catering trade (11, 27%).

The evolution of each group of self-employed during this time has been different. In the year 1996, there were 106, 269 self-employed workers in Asturias. The largest drop in this employment has been in the agriculture and animal husbandry sector that has gone from 41, 60% of the total to what is now 23, 49%.

In the annexe 5 it can be find information about the ASTURIAS INDUSTRY.



16

3. THE POLICY FRAMEWORK

3.1. ADMINISTRATIVE CONDITIONS AND FRAMEWORK

STATEMENT EVIDENCE

Administrative procedures for setting up a business are better

than the European average

Since the year 2003 the legal norms that regulate Limited Liability Companies (LLC) offer the possibility of arranging the paperwork and start-up for LLC's (SLNE) by electronic means, avoiding disruptions and delays for the entrepreneur and producing a substantial saving of time and costs. In 48 hours it´s possible to set up a company.

It is NOT possible to set up a company and test trade for a

period (6 month, 1 year, 2 years) without losing benefits

The self-employment social security regulation does not allow maintain the benefits.

There is exemption from tax, and/or social charges for start-ups

and companies below a certain turnover

Start-ups and all companies regardless of turnover a liable to pay VAT

Exemption of IAE to self-employment and companies under one million euros turnover.

Simple account system to reduced dimension companies and SLNE.

Specific tax system to business running by self-employments.

It is NOT possible to combine self employment with other activities

without extra cost or administrative burdens

It‟s compulsory to maintain two systems in parallel (self employment and general for employees, for instance), by the social security regulation.

Integrated financial programmes are available to support

unemployed/inactive people becoming self employed.

Public subsidies, up to 3.000,00 €

Specific loan programmes with low rates

Possibility of ask for the unemployed subside left in one payment.

Employment and social security offices recognise and encourage

the self employment option

Explicit Asturias WEB referral guidance: autonomoastur.net

Self-employment guides for specific proposes in national employment and social services WEBS: public helps, loans, payment of the unemployed subsidies for running a business

Tax and benefit authorities will negotiate with people in the

informal economy to help them become legal

In Spain, a great effort is being made to facilitate the process for the creation and registration of corporations, through the Conference of Lisbon. Our country has been traditionally among the slowest in Europe; however this tendency is changing thanks to the use of the electronic system CIRCE, from the Dirección General de la PYME, and the existence of "all-in-one windows", in the Chambers of Commerce of



17

all the local capitals in the province, where the entrepreneur can find in just one office all the functionaries from the necessary services to start-up their company.

As to what concerns the inclusion of the target groups in this present work, it seems that the rigid norms which regulate the regime and benefits to Social Security create obstacles in the compatibility of said benefits with the start-up of a business, as well as in the case of self-employment where these could be combined with those relating to standard employment in a separate business, without extra costs and/or administrative charges. Currently the system only allows for the capitalization of any pending benefit due the unemployed person that may want to create their own business. The unemployment benefits are automatically suspended with the beginning of a new activity such as self-employment.

In comparison with other countries in this study, like the UK and Germany, there is no threshold for VAT. All companies and self employed have to pay VAT regardless of their turnover.

3.2. STRATEGY FOR INCLUSIVE ENTERPRISE

Program for the Promotion of an Entrepreneurship Culture

The entrepreneurial initiative has become a strategic factor in the economic and social development of Asturias. As a result the regional government has design a program that covers form primary education through the consolidation of business projects with those basic lines:

MAKING the educational community (students, teachers, parents) AWARE about the importance of an entrepreneurship culture promotion for the personal and professional individual development.

BROADCASTING and MOTIVATING the whole society for an entrepreneurship activity: interest, aptitude and attitude.

PROVIDING with necessary means to add to the educational topic and the teaching activity didactic elements which support the promotion of an entrepreneurship culture.

PROVIDING with the training, advising and tutoring to those people interested in the development of a Project.

SUPPORTING those entrepreneur people with technical and financing means so they can carry out their ideas.

CONSOLIDATING the tackled projects as a mechanism of support and improvement.

The programme is being leading by the Industry and Employment Department (integrated both in one area in Asturias), with a budget of 57.407.292, 00 € from 2005 to 2008.



18

Services to entrepreneurs

In the central areas there are a completed entrepreneurs services. In the main cities these services are coverage by the municipalities, employment offices, and Chambers of Commerce, which have offices in the town, and they use to be the first step where the unemployment persons go searching for help to set up their business. The main regional services for self-employment and social enterprises can be found at the capital, Oviedo, and for more specialist advice and business information it has to use the information resources of the Regional Development Agency, site at a business park, the Regional Technological Park, in the centre of the region. For these issues the entrepreneur has to travel. There are not public transport lines to the regional technological park.

The business project incubators also are a resource used by entrepreneurs when they are thinking to run a business. All of them have an information service attended by an advisor. This service is normally found in the Business Centres that form part of the ACEPPA (CENTERS FOR BUSINESS DEVELOPMENT), organization that integrates the number of eleven regional and local public business centres. They are placed all over Asturias, both urban and regional areas, and they are managed by regional government companies, and municipalities.

In the rural areas, the main resource use to be development agent, a figure support by the regional government but inside the municipalities‟ structure, created to help the improvement of the economic development of these areas. Sometimes these resources are used for other issues. Rural entrepreneurs also use to go to the unemployment offices site at the capital of the county to ask for information. Recently all the Chambers of Commerce has opened branches in the main towns.

The main gaps for all the disadvantaged groups are produced by the double system they have to use to reach for advice. In Asturias there are a completed separation between the social services and the entrepreneur‟s information system. That means that social advisers do not have information and training in business creation to help and aim the entrepreneurs, and neither the business advisers know the real needs of the focused groups they are dealing with.


4. STAKEHOLDER ASSESSMENT OF POLICIES FOR INCLUSIVE

ENTREPRENEURSHIP

4.1. INTRODUCTION TO SECTION

In the charts bellow it can be seen the results of the interviews with the different stakeholders. They have score from 1 to 4 if they have found the issue very weak, weak, good, or very good. Advisors and entrepreneurs have answered by groups: unemployment, women, young people under 30, people with disabilities, migrants and ethnic minorities, and social enterprises.

4.2. CREATING THE CULTURE AND CONDITIONS FOR ENTREPRENEURSHIP

Chart 1 Summary of Enterprise Culture scores by policy makers

In the issue Creating the culture and conditions for entrepreneurship the policy makers have evaluated the efforts that are being made in the educational system, particularly focused in reference to the specific materials that have been developed for teaching. According to the opinions presented, the main weaknesses are due to those enterprises that do not regularly become involved in educational system activities.

There is prestart

support for building

entrepreneurial capacity

and business ideas

Schools and colleges

have introduced

entrepreneurship into

the curriculum

Teachers have been

trained to w ork on

enterprise issues

Specially adapted

teaching materials have

been developed

Children/ students are

able to form real or

simulated companies to

learn about trading

Businesses are

regularly involved in

school activities.

the subject of setting up

a business is presented

comprehensively and

regularly by both

regional and national

media

events and trade fairs

targeted at start ups

take place regularly

0

1

2

3

4

Serie1Score

Average



20

Chart 2 Summary of enterprise culture scores by general and specialist advisers

0

1

2

3

4

No specif ic target

group

Unemployed Women Migrants and

ethnic minorities

50 plus Young people

under 30

People w ith

disabilities

Social Enterprises

There are (prestart) capacity and confidence raising activities among target groups and communities.

Teaching materials relate to specific groups

Role models relate to specific groups

All the advisors together make a similar evaluation as the policy makers do, one that is slightly higher. The principal strength is seen in the capacity and confidence regarding the planning of activities between focus-groups, and communities. The formative materials in general receive a good evaluation, but are believed to fail to adapt to the needs of immigrants and ethnic minorities. The main weakness for is seen in the lack of sufficient role models that directly relate to the focus-groups, especially for those over 50 years of age, immigrants and ethnic minorities.



21

Chart 3 Summary of enterprise culture scores by entrepreneurs

Entrepreneurs like me are

well presented in the media

There are role models to

encourage people like me to

go into enterprise

I have attended events and

trade fairs targeted at start

ups

I was exposed to enterprise

ideas while at school

I found the administrative

processes for setting up a

business straightforward and

quick

0

1

2

3

4

Serie1Score

Average

The entrepreneurs find this area to be somewhat worse by contrast with that of the 'advisors' and 'policy makers'. It is seen as 'very weak' especially with respect to people with disabilities. The administrative processes involved with the creation of an enterprise have been evaluated in general as slow and time-consuming, especially for those over 50 years of age and social enterprises. Nearly all the groups do not identify with entrepreneurs that are shown in the mass-media, with the exception of young people under 30 years of age, who do see themselves well-reflected.

KEY AREAS OF IMPROVEMENT

Involve businesses in the activities that are conducted in schools. (policy makers)

More frequent events and commercial fairs for start-ups. (policy makers)

Adequate role models for the focus-groups in question. (advisors)

Streamline the existing administrative processes for the creation of enterprises. (entrepreneurs)

Ensure that the mass-media correctly portrays the entrepreneurs. (entrepreneurs)



22

FOCUS GROUPS RECOMMENDATIONS

WOMEN.- The majority of these participants have not experimented with business ideas during their schooling.

IMMIGRANTS AND ETHNIC MINORITIES.- Mass-Media does not present a real image of entrepreneurs that belong to this grouping.

OVER 50 YEARS OF AGE AND SOCIAL ENTRERPRISES.- These find especially difficult the administrative processes for setting up a business.

PEOPLE WITH DISABILITIES.- Unfamiliar with role-models for reference to inspire entrepreneurs of this grouping in business creation.

4.3. START-UP SUPPORT AND TRAINING

The policy makers have a strong view of this area. It has obtained the best results of the entire tool for the group.

Chart 4 Summary of start up support and training by advisers

The advisors view here is more moderate. The main strong-points are, firstly, the fact that newly-created business can access without cost available high-quality information, facilitated by professionals, above all by those that work with the over-50 demographic. The exception to this strength is information directed to immigrants and ethnic minorities. Another good point is the existence of incubators and/or centres for newly-created business, and that these are accessible for the given groups. None the less, the advisors find that those that serve immigrants, handicapped persons, and social enterprises are not adequately accessible.

Incubators have been

established and are

accessible to target groups

Ready aviable business

information

Finding out about the real

barriers to business

creation among target

groups

outreach services go into

communities

Mentors/coaches with

business experience are

recruited from the

community

Business advice take

account of the needs of

each target group

Quality standards for

business advice

Business advisors are

sensitive to the needs of

target groups

0

1

2

3

4

Serie1Score

Average



23

The principal weakness is the lack of mentors/ coaches with real business experience, recruited from the community to work with entrepreneurs. A secondary weakness is the lack of quality standards for business consulting.

Chart 5 Summary of start up support and training by entrepreneurs

There are affordable business

premises with easy to enter

conditions

there are networking

opportunities for start ups

like ourselves

It is possible for me to obtain

recognition and accreditation

for training and experience

which reflects my real skills

Specialised training and

materials are available which

meets my needs

I have had access to a

mentor

The business support

available is friendly and

answers my needs

The advice system is easy to

access and to get around

0

1

2

3

4

Serie1

In general, there is a slightly more positive perception held by the entrepreneur than that of the advisor. For the entrepreneurs there are fewer weaknesses. In practice all the groups have had the possibility to gain access to a business coach or mentor. The main weakness is found in the business support, unresponsive to their needs.

Score

Average



24

START UP SUPPORT AND TRAINING


There is a lack of mentors/ coaches with real business experience, recruited from the community to work with entrepreneurs (advisors)

There is a lack of quality standards for business consulting. (advisors)

Need to be sensitive to the needs of the target groups (advisors)


IMMIGRANTS AND ETHNIC MINORITIES.- From the point of view of the specialist advisors, it has been observed special weaknesses in this group.

4.4. SUPPORT FOR CONSOLIDATION AND GROWTH

Chart 6: Summary of consolidation and gowth by policy makers

Premises are

available for post

start ups

it is easy to find

information for

business

development

(products, markets,

export,

technology..)

Post-start up

support is easily

available

0

1

2

3

4

Serie1

The view from the policy makers about Consolidation and Growth is god, but moderate. Positive regarding the existing supports, and somewhat weaker as far as the availability of information for the development of business and facilities for entrepreneurial consolidation

Score

Average



25

Chart 7: Summary of consolidation and growth by advisors

Much weaker than that shown by the first group. Together with finance, this area is one of the main problems shown. Those who saw the weakest points were the advisors that work with immigrants, over 50, and handicapped persons. The only strong is the possibility to access information and consulting about technology, markets, and export opportunities.

Public procurement

procedures have been made

accessible to local private and

social enterprises

More advanced business

information is accessible to all

entrepreneurs

Specific support is available for

breaking into potential growth

markets

Premises are available for

post start upsMechanisms are in place to

support thexpansion of existing

businesses

There are business to

business networks which are

open to all entrepreneurs

There are effective measures

to promote the quality and

image of local products and

services

0

1

2

3

4

Serie1Score

Average



26

Chart 8: Summary of consolidation and growth by entrepreneurs

Public sector contracts are

accessible to entrepreneurs

like ourselves

There are sufficient premises

of an affordable nature to

allow for business growth

It is easy to join mainstream

business networks

Entrepreneurs like us can

easily access high quality

training in the areas required

for business expansion

All entrepreneurs are able to

obtain high quality advice for

a period after start up

0

1

2

3

4

Serie1

Practically all the groups of entrepreneurs share a worse vision than their respective advisors. This is seen as especially weak by social enterprises.


There is not availability of instalallations that allow for the growth of the business entreprise (policy makers and entrepreneurs)

The lack of sufficient business networks by sector, open to all entrepreneurs. (advisors)

Difficulties for local business to access public contracts (advisors and entrepreneurs)

Lack of mechanisms that support the transmission and expansion of existing business. (advisors)


SOCIAL ENTERPRISES.- The group that note the most weakness, aside from the general weakness seen by all sectors, are those Social Enterprises.0

IMMIGRANTS AND ETHNIC MINORITIES.- The group of advisors that treat with immigrants and ethnic minorities are those that see a significant weakness in the area of consolidation. Except for the case of information, all areas are seen as weak.

Score

Average



27

4.5. ACCESS TO APPROPRIATE FINANCE In general, the policy maker‟s view is positive, especially regarding the existing supports for newly-created business. Support for the financial process is seen as weak.

Chart 9: Summary of access to appropriate finance by advisers

Financial management

support is available with

grants and loans

Grants are fast and flexible

and help cover the most

important start-up costsPolicy incentives exist to

encourage for financial

service providers to provide

services to the socially

excluded

Banks provide debt crisis

advise

Specialist micro finance

providers work together with

business support

organisations and financial

institutions

Mechanisms are in place for

finding out the real financial

needs of different kinds of

entrepreneurs

0

1

2

3

4

Serie1

This is one of the worst-valued sections by the advisors. The strongest point is generally found in the fact the organizations that facilitate microfinance are able to work together with the entrepreneurial promotion agencies and with financial institutions. Weaknesses in general in financial and bank services.

Score

Average



28

Chart 10: Summary of access to appropriate finance by entrepreneurs

It is easy to get support for

managing the financial

aspects

Public grants help cover

some of the most important

costs of setting up a

business

Banks provide a wide range

of financial products to

entrepreneurs like us

It is easy for all to open a

current based bank account

0

1

2

3

4

Serie1

Subsidies generally are considered inadequate. The available subsides do not cover the most important cost in the start up of a new enterprise, and that these need to be easer to obtain. The financial products that the banks offer are moderately valued. The majority of users responded that “the banks offer a wide range of financial products, but it‟s not easy to get them”

Score

Average



29

4.6. ACCESS TO APPROPRIATE FINANCE


Support for the processing and development of the financial aspects of business (policy makers and entrepreneurs)

Subsides, easer to obtain and covering the most important cost in the start-up of a new enterprise (advisors and entrepreneurs)

Difficulty in obtaining advise from the bank in case of debt crisis. (advisors)

Lack of policies that bring the financial services to facilitate services to the socially-excluded groups (advisors)


WOMEN. The advisors for this group, oddly enough, are those that in general best value the accessibility of appropriate financial measures, especially in the processing of micro credits.

PEOPLE WITH DISABILITIES. The only group that strongly values, and considers sufficient, the subsidies received for covering of the principal cost of staring a new business, and that these have been ease to obtain.

SOCIAL ENTREPRISES. This group gives the worst evaluation to the accessibility of finance of all the given groupings, in referent to financial institutions, as well as regarding subsidies. Worse evaluation than the immigrant grouping.


5. SUMMARY OF KEY STRENGTHS AND AREAS FOR IMPROVEMENT

IDENTIFIED BY STAKEHOLDERS

5.1. INTRODUCTION

The tool has discovered that in Asturias the main area to improve is about financials, and our culture and conditions and consolidation and growth conditions need a review in some aspects. The strength is in the start up and support training system, but advisors also see some challenges for working with the maximum quality standard.

5.2. STRENGTHS AND WEAKNESSES OF THE ENTERPRISE SUPPORT SYSTEM

Strengths Weaknesses

Culture and conditions Program for the Promotion of an Entrepreneurship Culture

Teaching materials

Involve businesses in the activities that are conducted in schools

Adequate role models for the focus-groups

Ensure that the mass-media correctly portrays the entrepreneurs

Start up support &training Access to business information by start up.

Affordable business premises for start up

Information for business growth

Mentors/coaches with business experience recruited from the community

Quality standards for business advice

Accredited training for advisors, and sensitiveness to target groups.

Consolidation & growth Advice support after start up is available

Premises for post-start ups

Public procurement procedures

Appropriate finance Financial management support

Grants for covering start up costs



31

6. POSSIBLE SOLUTIONS FROM OTHER REGIONS

The Community of Practice on Inclusive Entrepreneurship builds on the work carried out over the last five years by nearly 300 EQUAL development partnerships that have tested methods for opening up the process of business creation to all members of society. Many of the 12 countries involved in this work created National Thematic Networks to exchange and mainstream their findings. The Community of Practice has also drawn heavily on the work carried on within EQUAL in the Social Economy and from other EU, national and international programmes on entrepreneurship

One of the most remarkable results of all the work within EQUAL was that, although the definitions vary slightly in each Member State, the main themes dealt with in business creation were very similar across the countries. They have been described as the four parts of “an entrepreneurial ladder out of social exclusion”:- creating the culture and conditions for entrepreneurship; integrated start-up support and training, support for consolidation growth and access to appropriate finance.

The fact that so many projects were concerned with similar issues was one of the reasons for designing the tool for inclusive entrepreneurship around the same four themes. This allows the Community of Practice to create a bridge between the strengths and weaknesses in the business support system detected by the tool and the good practice that has been developed by EQUAL and other pilot (and mainstream) initiatives in other countries.

So far seven countries or regions have provided over 100 examples of good practice. These are Germany, Spain, the UK, Portugal, Flanders, France and Wallonie. But the aim is to extend and improve the data base as more countries and regions become members of the Community of Practice

The search facility and data base on the COPIE website allows people to search for new ideas which are directly linked to their areas of weakness. For example, if the tool for inclusive entrepreneurship indicates that there is a particular weakness in providing microfinance to ethnic minorities, it is simply necessary to go to the data base and click on the button for appropriate finance – this then shows all the cases that have been found on this subject. The searcher can then either home in on a more precise category of project like microfinance or they can look at all the projects that have focussed on a particular target group like ethnic minorities.



32

THEMES AND SUB THEMES

NO SPECIFIC TARGET GROUP

FORMERLY UNEMPLOYED

WOMEN MIGRANTS AND ETHNIC MINORITIES

50 PLUS YOUNG PEOPLE UNDER 30

PEOPLE WITH DISABILITIES

SOCIAL ENTERPRISES

PROGRAMMING RESEARCH, STRATEGY, MONITORING, EVALUATION

Click Click Click Click Click Click Click Click

CREATING THE CULTURE FOR ENTRE-PRENEURSHIP


START UP


CONSOLIDATION AND GROWTH


ACCESS TO APPROPRIATE FINANCE

Click

For example, in both Berlin Mitte and Flanders the tests carried out with the tool for inclusive entrepreneurship suggested that entrepreneurship education should be improved in schools through the provision of materials and the better training of teachers. A search of the data base of good practice in the COPIE website shows up a range of helpful examples including the experience of Valnalón in Asturias.

In order to foster the early development of entrepreneurship skills in Young people Valnalon has designed programmes for each educational stage with specific training materials for teachers, students and parents. More than 16,000 students are now using them in the region and the methods have been applied in several other regions and countries

In Wales, the tests using the tool for inclusive entrepreneurship pointed out that pre-start support and role models for people with disabilities and the patchy provision of incubators were challenges. The data base of good practice in the COPIE website points to some good German examples of incubators and a very promising project for people with disabilities in France

Led by a French project (CAPH), three EQUAL partnerships concerned with support to business creation by handicapped people have produced a guide for business advisors called “Beyond the barriers (Au delà des Barierres). The guide introduces business advisors to the barriers faced by entrepreneurs with disabilities and provides them with a series of suggestions for overcoming them in the different stages of creating a business.



33

In Asturias, the lack of mentors and coaches with business experience, recruited from the community and the absence of quality standards and accredited training for advisors were seen as challenges for business support to disadvantaged groups. Once again the data base throughs up a series of promising projects in both the UK and Germany

For example, in the UK, the partnership Business Mentoring: An Equal Partnership Ied by the Princes Trust has developed National Occupational Standards for Business Mentors

In Germany a number of EQUAL project came together to create the National Association of Start-up Initiatives (VDG) which now has 47 members. VDG has created a minimum quality standard for business advisors based on good practice in the first round of EQUAL

The combination of the tool and data base of good practice also allows regions and countries to identify areas in which they want to work together in the future. They can decide to test out further innovative solutions in common priority areas, share the lessons and monitor the results on the enterprise support system via the tool. This allows them to constantly improve their plans and strategies for entrepreneurship – and unleash the creativity of more and more people.


ANNEX 1 THE TOOL COMPLETED FOR PRINCIPALITY OF ASTURIAS

POLICY FRAMEWORK

Region ASTURIAS

Name of Expert Rafael Vigil Álvarez VALNALON

THEME STATEMENT SCORE 1-4

STRATEGY There is an overall strategy for encouraging entrepreneurship in the area 3,67

There is a strategy which takes account of the needs of disadvantaged areas and groups 2,67

The main organizations work together 3,34

Total score strategy 3,22

CULTURE AND CONDITIONS Schools and colleges have introduced entrepreneurship into the curriculum 2,5

Teachers have been trained to work on enterprise issues 2,67

Specially adapted teaching materials have been developed 3,17

Children/ students are able to form real or simulated companies to learn about trading 2,83

Businesses are regularly involved in school activities. 1,33

the subject of setting up a business is presented comprehensively and regularly by both regional and national media

2,5



35

events and trade fairs targeted at start ups take place regularly 2

There is prestart support for building entrepreneurial capacity and business ideas 3,33

Total score enterprise culture 2,54

START-UP SUPPORT AND TRAINING Business start ups can access comprehensive and readily available business information and advice 3,5

There are affordable business premises with easy to enter and exit conditions 3,67

Total score start-up and training 3,58

SUPPORT FOR CONSOLIDATION AND GROWTH Post-start up support is easily available 3

it is easy to find information for business development (products, markets, export, technology..) 2,83

Premises are available for post start ups 2,83

Total score consolidation and growth 2,89

ACCESS TO FINANCE subsidies are provided to business start ups 3,67

Loans are affordable and easily available 3,17

Financial management support is available 2,34

Total score access to finance 3,06



36

Name of region ASTURIAS

SPECIALIST ADVISERS FILL IN THE COLUMNS THAT THEY DEAL WITH

Statement no specific target group

Unemployed women migrants and ethnic minorities

50 plus Young people under 30

People with disabilities

Social Enterprises

There are (prestart) capacity and confidence raising activities among target groups and communities.

2,91 2,76 2,43 2,50 2,50 2,46 3,75 3,00

Teaching materials relate to specific groups 3,05 3,05 2,71 1,75 3,00 2,88 3,17 2,50

role models relate to specific groups 2,70 2,56 2,24 1,63 1,50 1,75 2,33 3,00

Score for enterprise culture 2,89 2,79 2,46 1,96 2,33 2,36 3,08 2,83

business start ups can access free, high quality and readily available business information from professional

3,32 3,44 3,44 2,75 4,00 3,46 3,00 3,00

Business support organisations have established mechanisms for finding out about the real barriers to business creation among target groups (research, monitoring, proofing, regular contact..)

2,72 2,73 2,60 1,88 4,00 2,17 2,67 2,00

outreach services go into communities to reach target groups

2,58 2,47 2,64 2,75 2,00 2,46 2,33 3,00



37

Mentors/coaches with business experience are recruited from the community to work with new entrepreneurs

2,05 1,84 1,92 1,38 1,00 1,38 1,83 1,50

Business advice and planning methods take account of the needs of each target group

2,85 2,89 2,84 1,75 2,00 2,75 3,00 2,50

There are quality standards for business advice which reflect the needs of target groups

2,04 2,10 2,11 1,88 1,50 1,54 1,83 1,67

Business advisors receive accredited training and are sensitive to the needs of target groups

2,55 2,47 2,58 2,13 1,00 2,33 2,67 2,00

Incubators or start-up centres have been established and are accessible to target groups

3,44 3,31 3,58 1,63 4,00 3,88 2,17 2,50

score for start up 2,69 2,66 2,71 2,02 2,44 2,49 2,44 2,27

More advanced business information and advice on technology, markets, export is accessible to all entrepreneurs

2,91 2,86 2,80 2,13 2,50 3,00 3,33 3,00

Specific support is available to entrepreneurs for breaking into potential growth markets and sectors

2,73 2,65 2,51 1,75 2,50 2,50 2,83 2,00

Premises are available for post start ups 3,03 2,72 2,73 1,38 2,00 2,88 2,33 2,50

Mechanisms are in place to support the transmission, replication and expansion of existing businesses (franchising, cooperatives…)

2,26 2,16 2,34 1,38 1,50 2,21 2,17 1,50

There are healthy business to business networks around clusters/sectors which are open to all entrepreneurs

1,96 1,82 1,60 1,38 1,00 1,50 2,00 1,50



38

There are effective measures to promote the quality and image of local products and services

2,36 2,57 2,35 1,38 2,50 2,21 2,33 2,00

Public procurement procedures have been made accessible to local private and social enterprises

2,38 2,12 2,29 1,50 2,00 1,79 1,00 1,50

score for consolidation and growth 2,52 2,41 2,37 1,55 2,00 2,30 2,29 2,00

Mechanisms are in place for finding out the real financial needs of different kinds of entrepreneurs

2,91 2,71 2,76 1,63 1,50 2,29 3,33 1,00

Specialist micro finance providers work together with business support organisations and financial institutions

3,10 2,80 3,12 1,88 3,00 2,38 1,83 3,00

Banks provide debt crisis advise 1,79 1,67 1,58 2,00 2,00 1,42 1,33 1,50

policy incentives exist to encourage for financial service providers to provide services to the socially excluded e.g. community reinvestment act

1,96 1,76 1,79 1,13 1,50 1,33 2,50 1,50

grants are fast and flexible and help cover the most important start-up costs (running costs, advice, test trading…)

1,77 1,78 1,75 1,63 2,00 1,63 2,17 2,00

financial management support is available with grants and loans

2,67 2,51 2,64 1,75 3,00 2,29 2,33 2,50

score for access to appropriate finance 2,37 2,20 2,27 1,67 2,17 1,89 2,25 1,92



39

ENTREPRENEUR QUESTIONS

SCORE 1 to 4 where 4 is good

Name of region ASTURIAS

Name of expert VALNALON

THEMES no specific target group unemployed women

migrants and ethnic minorities 50 plus

Young people under 30

People with disabilities

Social Enterprises

CREATING THE CULTURE FOR ENTRE-PRENEURSHIP

I found the administrative processes for setting up a business straightforward and quick 2 2 2,08 2 1 2,43 2 1

I was exposed to enterprise ideas while at school 1 1 1,25 4 3 1,86 1 1

Entrepreneurs like me are well presented in the media 1 1,5 1,92 1 1 2,43 1 4

I have attended events and trade fairs 3 2,5 3,08 4 2 2,86 3 4



40

targeted at start ups

There are role models to encourage people like me to go into enterprise 4 2 2,5 3 2,5 2,86 1 1

AVERAGE SCORE 2,2 1,8 2,17 2,8 1,9 2,49 1,6 2,2

START UP SUPPORT

The advice system is easy to access and to get around 3 1,5 2,42 2 2,5 3 1 2

The business support available is friendly and answers my needs 2 1,5 2,42 2 3,5 2,43 2 1

I have had access to a mentor 3 3,5 3 3 2 3,86 1 3

Specialised training and materials are available which meets my needs 2 2,5 2,33 3 2,5 2,43 2 1

It is possible for me to obtain recognition and accreditation for training and experience 1 1 2,83 3 3 2,43 4 2



41

which reflects my real skills

there are networking opportunities for start ups like ourselves 3 2 2,92 2 3,5 2,86 2 2

There are affordable business premises with easy to enter conditions (short leases, etc) 4 2 3,25 3 3,5 3,14 4 4

AVERAGE SCORE 2,57 2 2,74 2,57 2,93 2,88 2,29 2,16

CONSOLIDATION AND GROWTH

All entrepreneurs are able to obtain high quality advice for a period after start up 3 2 2,91 3 3 2,57 4 1

Entrepreneurs like us can easily access high quality training in the areas required for business expansion (ITC, marketing, 3 1,5 3 3 2,5 2,86 3 1



42

financial management…)

It is easy to join mainstream business networks 1 2 1,5 3 2,5 2,43 4 1

There are sufficient premises of an affordable nature to allow for business growth 3 1,5 2 2 1,5 2,14 2 1

Public sector contracts are accessible to entrepreneurs like ourselves 2 2 1,75 2 2 1,43 1 1

AVERAGE SCORE 2,4 1,8 2,23 2,6 2,3 2,28 2,8 1

ACCESS TO APPROPRIATE FINANCE

Banks provide a wide range of financial products to entrepreneurs like us 3 2,5 2,25 2 2 2,14 2 1

It is easy for all to open a current based bank account 4 3,5 3,75 1 4 4 4 4



43

Public grants help cover some of the most important costs of setting up a business and are easy to access. 1 1,5 2,33 2 2,5 1,57 3 1

It is easy to get support for managing the financial aspects of the business 1 1,5 2 2,5 2,5 2,57 2 1

AVERAGE SCORE 2,25 2,25 2,58 1,87 2,75 2,57 2,75 1,75


ANNEXE 2 ASTURIAS SUPPORT SYSTEM

PROMOTING THE ENTREPRENEURSHIP CULTURE AT THE EDUCATIONAL SYSTEM

There was need to foster entrepreneurial training in all stages of education, including in the earliest grades, throughout all levels of schooling. The formative activity was not to be limited to students, but extended- to the trainers, as well as in the family environment. It is extremely important to uproot the prejudice that may be associated with the word "entrepreneur" with the 'abhorrent' concepts of "exploitation" or "boss". To this end, it is not enough to act regarding the student-body; it becomes necessary to harmonize with the general milieu as well.:

Programmes running by the Council for Industry and Employment of the Government of the Principality of Asturias:

PRIMARY SCHOOL "A Business In My School" (VALNALON)

SECONDARY SCHOOL Elective subject- "European Young Business" (VALNALON)

COLLEGE PREPARATORY AND TRADE SCHOOL "Entrepreneurial Workshop" (VALNALON)

UNIVERSITY LEVEL in close collaboration with the Council for Education and Science for the Government of the Principality of Asturias and with the University of Oviedo:

Scheduled days of presentation for entrepreneurial projects developed by students; informative events; organization of the "entrepreneurial zone" in the Employment Forum of the University of Oviedo; the "Uniemprende" program. OVIEDO UNIVERSITY (OTRI SERVICES)

Motivational talks given to the upper-class university student body, post-graduate alumni, educators and researchers. EUROPEAN CENTER FOR BUSINESS AND INNOVATION (CEEI)

Training courses in the generation of business ideas meant for the upper-class student body, post-graduate alumni, educators and researchers. EUROPEAN CENTER FOR BUSINESS AND INNOVATION (CEEI)

Motivational talks given to the upper-class university student body. GIJÓN LOCAL AGENCY FOR THE PROMOTION OF BUSINESS AND EMPLOYMENT (ALPEE)

Working together in the presentation of entrepreneurial projects developed by students. GIJÓN LOCAL AGENCY FOR THE PROMOTION OF BUSINESS AND EMPLOYMENT (ALPEE)

Motivational talks given to the upper-class university student body. (VALNALON)



45

SUPPORTING START-UPS

In Asturias there are various organizations specialized in consultation for the support of 'start-ups'

A. SOURCES OF GENERAL INFORMATION

There are networks of general training resources that deal with all types of entrepreneurial projects, or can direct those interested to such organizations that can help:

AGENCIES FOR LOCAL DEVELOPMENT (ADLS)

CHAMBERS OF COMMERCE, INDUSTRY AND SHIPPING; IN OVIEDO, GIJON AND AVILES, INCLUDING THEIR RESPECTIVE SATELLITE BRANCHES

CENTERS FOR BUSINESS DEVELOPMENT (ACEPPA)

ASTURIAS BUSINESS FEDERATION (FADE)

YOUTH BUSINESS ASSOCIATION (AJE)

OVIEDO UNIVERSITY (OTRI UNIVERSIDAD DE OVIEDO)

SPAIN SENIORS FOR TECHNICAL COOPERATION (SECOT)

For projects with specific technological or innovative components, some places that could help:

THE EUROPEAN CENTER FOR BUSINESS AND INNOVATION (CEEI)

OVIEDO UNIVERSITY, OTRI

For those interested in formulas of social economy (co-operatives and labor associations), the place for information:

FOUNDATION FOR THE DEVELOPMENT OF SOCIAL ECONOMY(FFES)

B. TUTORIALS

The work that is done in tutorial sessions is orientative, not directly involved with taking actions or decisions for the entrepreneurial person. The economic initiative is supported with continuous professional consultation during the development of the business idea.

The organizations that consistently offer this type of tutorial service in support of the development of business plans:

AGENCIES FOR LOCAL DEVELOPMENT (ADLS)

CENTERS FOR BUSINESS DEVELOPMENT (ACEPPA)


Specifically geared for business-projects of social economy:

FOUNDATION FOR THE DEVELOPMENT OF SOCIAL ECONOMY (FFES)

For persons associated with the University in Oviedo:

OVIEDO UNIVERSITY, OTRI

For business projects with a high degree of innovation and technology:



46

THE EUROPEAN CENTER FOR BUSINESS AND INNOVATION (CEEI)

C. CENTERS FOR PRE-DEVELOPMENT

These are locations for those who seek to more fully grow their business idea. Besides physical space and material infrastructure, there is made available personalized consultation, suited to the maturity of the intended project. There are various types of centers for pre-development.

BUSINESS PROJECT INCUBATORS

Installations of shared use meant for entrepreneurial persons intended to develop their business idea, provided with the use of office space and equipment, internet connections, access to common services, individualized tutors, etc.

This service is normally found in the Business Centers that form part of the ACEPPA (CENTERS FOR BUSINESS DEVELOPMENT), organization that integrates the number of eleven regional and local business centers.

"OFFICE-NESTS" (fostering business development)

With the same philosophy of support for maturation of business ideas, the "office-nests" are furnished surroundings for exclusive use, with access to telecommunication infrastructures, common services and individualized tutoring. This variation is available in (CEEI) THE EUROPEAN CENTER FOR BUSINESS AND INNOVATION

D. FORMAL EDUCATION

A formal education for start-ups, both special and general, is offered periodically through dedicated organizations:

OFFICIAL COLLEGE OF INDUSTRIAL ENGINEERS

OFFICIAL COLLEGE OF CHEMISTS

UNIVERSITY OF OVIEDO

ACEPPA (CENTERS FOR BUSINESS DEVELOPMENT)


FADE (ASTURIAS BUSINESS FEDERATION)

ADLS-CIES (AGENCIES FOR LOCAL DEVELOPMENT)

GENERAL ADMINISTRATION FOR "PROFESSIONAL FORMATION", DEPARTMENT OF EDUCATION (TRADE AND TECH SCHOOLS)

FFES (FOUNDATION FOR THE DEVELOPMENT OF SOCIAL ECONOMY)



47

E. SERVICES FOR THE LEGALIZATION AND START-UP OF ENTERPRISES

SERVICE CENTERS FOR CONSULTATION AND LEGALIZATION OF NEW LIMITED LIABILITY BUSINESS ORGANIZATIONS(PAITS)

Since the year 2003 the legal norms that regulate Limited Liability Companies (LLC) offer the possibility of arranging the paperwork and start-up for LLC's (SLNE) by electronic means, avoiding disruptions and delays for the entrepreneur and producing a substantial saving of time and costs.

For this the entrepreneur must directly contact the above-mentioned Service Centers (PAITS), where advice and consultation can be given in relation to the defined project objectives, and where the process of official legal organization and start-up can obtain by electronic applications. These services can be found at:

ENTREPRENEURIAL PROMOTION SECTION. MUNICIPAL CORPORATION OF AVILES

MUNICIPAL CORPORATION OF CASTRILLON

CME GIJON (MUNICIPAL BUSINESS CENTER OF GIJON)

CHAMBER OF COMMERCE IN GIJON, CENTRAL OFFICE

CHAMBER OF COMMERCE IN GIJON, LANGREO BRANCH

CEEI ASTURIAS (THE EUROPEAN CENTER FOR BUSINESS AND I NNOVATION)

IDEPA (INSTITUTE FOR THE ECONOMIC DEVELOPMENT OF THE PRINCIPALITY OF ASTURIAS)

FADE ASTURIAS (ASTURIAS BUSINESS FEDERATION)

VUE ("SINGLE BUSINESS WINDOW" OF THE OVIEDO CHAMBER OF COMMERCE)

An all-in-one space where the means are available to arrange applications necessary to start-up and legalize an enterprise, as related to the matters of Internal Revenue, the General Treasury of Social Insurance, the Autonomous Community, and the Municipal Corporation of Oviedo



48

GROWTH AND CONSOLIDATION

LOCATION AND INCUBATION SERVICES. The Business Centers are buildings with modular office space and industrial warehouse areas meant to house newly-created businesses that, through the varied modalities of contract, are located in optimal conditions with access to common services such as: voice and data lines, reception and answering service, meeting-rooms, etc, as well as permanent business consulting available to all participants as needed. The Public Business Centers of the Principality of Asturias are now integrated in a collaborative network though the organization ACEPPA (ASTURIAS CENTERS FOR BUSINESS DEVELOPMENT) that has achieved the number of eleven centers. They are mainly regional, managed by instrumental companies created by the regional government (VALNALON, CEEI ASTURIAS, NALON BUSINESS CENTER, CAUDAL BUSINESS CENTER), and recently by the Chambers of Commerce (OLLONIEGO BUSINESS CENTER, LUANCO BUSINESS CENTER), but also with important local initiatives (GIJÓN BUSINESS CENTER, SCIENCE TECHNOLOGICAL PARK OF GIJON, AVILES BUSINESS CENTER “LA CURTIDORA”, LLANES BUSINESS CENTER, and others)

MENTORING. This is a supplementary instrument for entrepreneurs in development, effectuated by administrators of established business organizations who take the role of mentors in the given case. This service is given by the Women´s business association, and SECOT (Spain Seniors for Technical Cooperation).

INDUSTRIAL LAND. - The Principality of Asturias has undertaken significant industrial land promotion schemes, at very competitive rates. There are currently 300 Ha of industrial sites available at a range of estates and business parks around the Region. Asturias also has two high-quality city locations offering specialized services for the installation of innovative companies and projects with a high level of technological input: the Asturias Technology Park and the Gijón Science and Technology Park.

SMEs INDUSTRIAL PREMISES FOR LEASE.- The Asturias government, facilitating the transfer of industrial premises ownership to small companies, offers SMEs industrial premises for lease with a purchase option over a period of 12 years. This scheme, which has developed and awarded several workshops (250-750 sq) to coal mining areas companies from 2003, has been possible by the Plan Complementario de Reactivación de las Comarcas Mineras del Carbon.

ACCESS TO APPROPIATE FINANCE

CAPITAL GRANTS.

Asturias offers various non-repayable capital grants programs covering up to 40 % of the investment, the maximum limit established by the European Union. The most important are the Regional Economic Incentives Act (LIR), funding aimed at job creation projects that promote alternative development in coal areas (MINER), and direct



49

subsidies for business investment in the Principality of Asturias.

There are also regional public grants and subsidies for investment, finance, research, employment and other areas that are processed through IDEPA (INSTITUTE FOR THE ECONOMIC DEVELOPMENT OF THE PRINCIPALITY OF ASTURIAS)

Specific to self-employment and social enterprises are given by the General Administration for Commerce, self-employed and social economy of ASTURIAS, a department of the Industry and Employment Council

Specific to the creation of technology-based business, managed by the Foundation for the Generation in Asturias of Scientific Investigation applied to Technology (FICYT), and CEEI ASTURIAS, the European Center for Business and Innovation.

SUBSIDIES FOR CREATION OF JOBS. Regional subsidies also exist for the creation of temporary or permanent jobs within the framework of public employment schemes. In the case of specific training programs, the needs of the companies are assessed when awarding subsidies. Many of these grants are managed by the municipal corporations, in the case of Gijón and Avilés.

This overview is only for basic orientation. Detailed information on these credits is available at www.idepa.es

PUBLIC VENTURE CAPITAL

. Venture capital is an investment support mechanism for new business projects whereby public shareholders acquire a stake in the equity. The participation is usually a minority shareholding and the entrepreneur thus maintains control of the business. Public shareholders seek the most appropriate formula for divestiture of their holding in the medium to long term after the project has become firmly established.

There are two public venture capital companies in Asturias: The Regional Promotion Agency (Sociedad Regional de Promoción, SRP), which operates throughout the Region; the Agency for the Development of Coal Mining Areas (Sociedad para el Desarrollo de las Comarcas Mineras, SODECO), active in mining areas only.

PARTICIPATIVE LOANS

This type of loan is long-term, with the possibility of delayed amortization, with the Interest linked to the output of the enterprise that creates the indicated project, usually one with a large component of innovation.

The participative loan is considered as personal funds, regarding capital deductions and the dissolution of entities as indicated in the mercantile legislation

SOFT LOANS

The Regional Government of Asturias has entered into a number of agreements with several financial institutions under which business with investment projects may qualify for loans under more advantageous conditions than those offered on the market. The Region

http://www.idepa.es/



50

also has a specific interest free credit facilities for projects involving innovation and technological development.

MICRO CREDITS

Loans of smaller amounts are denominated "micro credits". These are credits for less than 30,000 €, with amortization periods shorter than 5 years, with the possibility of grace periods, very competitive interest rates and without costs, fees or other charges.

In order to obtain this type of finance no collateral property is needed, as the loan is guaranteed by a mutual credit association which co-signs for the responsibilities due the lending organization that finances the transaction. The warranty is the actual business plan, which must be validated by entities designated for this purpose. In Asturias there are various organizations through which a "certificate of validation" for the said business project may be obtained, and where are made available to the entrepreneur different lines of micro credits: CEEI ASTURIAS, VALNALON, Municipal Business Center of Gijón, Avilés Local Economic Development Agency, and others.

GUARANTEES

Asturias has created a variety or guarantee formulas to help small and medium-sized companies gain access to funding for their investments and commercial transactions through the Sociedad de Garantía Recíproca de Asturias, ASTURGAR (guarantees and preferential financing)



51

ANNEXE 3 STRENTGHS AND POLICY CHALLENGES FROM PRESPECTIVE OF

SPECIALIST ADVISORS AND ENTREPRENEURS

Advisors (A) and Entrepreneurs (E):

STRENTGHS:

WOMEN MIGRANTS 50 PLUS YOUTH DISABLES SOCIAL E.

Events and trade fairs (E)

Start up premises (E)

Access to quality training (E)

Microfinance (A)



Advise after start up (E)

Business information start up (A)

Start up premises (A)



Microfinance (A)

Media (E)


Friendly business support which meet the needs (E)

Advanced business information (A)

Capacity and confidence (A)


Accreditation for training and experience (E)





Public grants (E)

Media (E)

Outreach services (A)

Start up premises (U)



Microfinance (A)



52

POLICY CHALLENGES:

WOMEN MIGRANTS 50 PLUS YOUTH DISABLES SOCIAL E.

Enterprise ideas at school (E)

Media (E)

Accreditation for training and experience (E)

Friendly business support which meet the needs(E)

B2B networks around sectors(A)

Join to mainstream business networks (E)

Public procurement procedures (E)

Bank crisis advise (A)

Fast and flexible grants (A)

Formative materials (A)

Role models (A)

Media (E)

Business information start up(A)


Mentors/ coaches (A)


Transmission and expansion of business (A)

Public procurement procedures (A)

Current bank account (E)

Microfinance (A)

Real financial needs (A)


Role models (A)

Administrative process (A)

Media (E)






Public procurement procedures (A-E)

Public grants (E)



Role models (E)

Media (E)


Mentor/coaches (E)


Premises for business growth (E)

Microfinance (A)


Administrative process (A)


Friendly business support which meet the needs (E)





Join to mainstream business networks (E)

Premises for business growth (E)

Public grants (E)

Financial management (E)





53

ANNEXE 4 ASTURIAS INDUSTRY

Having completed the restructuring of traditional industries, Asturias has embarked upon the diversification of its industrial base. With the historical presence of large companies, a key factor in the industrial sector is the activity of numerous small and medium-sized enterprises.

Steel making together with mining is one of the Asturias defining features. The leading group is Arcelor group (along with European groups Ardeb and Usinor), Spanish‟s leading producer of steel and the main supplier to the automotive industry nationwide. Coal mining industry still being an important economic resource, running by public HUNOSA (Hulleras del Norte) the biggest of the Spanish coal mining companies. The 98 % of their sales are made to power plants. The importance of these two sectors has led to the creation of numerous metal forming companies in Asturias.

Asturias industry also produces aluminium, zinc and copper with the companies ALCOA-INESPAL, the national leader of the sector, and Asturiana de Zinc (AZSA) which produces the highest output of electrolytic zinc in the world.

The quemical sector has factories in the region to produce carbon-based chemicals, fertilizers, pharmaceutical products, cosmetics, and paper, with main players as Química del Nalón, Bayer, Empresa Nacional de Celulosa. In addition DuPont manufactures other specialized products.

Others industries embrace refractory products with the glass industry (SAINT GOBAIN, RIOGLASS, CURVET AND VITRO), the automotive sector (SUZUKI, TENNECO AUTOMOTIVE, SINTERSTAHL (PLANSEE) and MILIKEN, plastics, electrical equipment and the consumer goods sector.



54

ANNEXE 5 POLICY MAKERS AND SPECIALIST ADVISERS

Relación de decisores que han participado en el estudio.-

Nombre CARGO INSTITUCIÓN

Mar Martínez Salmerón DIRECCIÓN GENERAL DE COMERCIO, AUTÓNOMOS Y ECONOMÍA SOCIAL

CONSEJERÍA DE INDUSTRIA Y EMPLEO

GOBIERNO DEL PRINCIPADO DE ASTURIAS

Paulo González González CONCEJAL DE DESARROLLO INDUSTRIAL Y EMPLEO

AYUNTAMIENTO DE LANGREO

Pilar Valera Díaz CONCEJAL DE HACIENDA Y PROMOCIÓN ECONÓMICA

AYUNTAMIENTO DE AVILÉS

Gonzalo González Espina GERENTE AGENCIA LOCAL DE PROMOCIÓN ECONÓMICA Y EMPLEO

AYUNTAMIENTO DE GIJÓN

Javier Cuesta DIRECTOR GENERAL CÁMARA COMERCIO DE OVIEDO

Pablo Priesca Balbín DIRECTOR GERENTE FUNDACIÓN CENTRO TECNOLÓGICO DE LA INFORMACIÓN Y COMUNICACIÓN

Victor González Marroquín DIRECTOR GERENTE

INSTITUTO PARA EL DESARROLLO ECONÓMICO DEL PRINCIPADO DE ASTURIAS


Luzdivina Rodríguez Duarte SOCIEDAD REGIONAL DE PROMOCIÓN


Relación de asesores que han participado en el estudio:-

Asesor Entidad para la que trabaja

Elena Álvarez CÁMARA COMERCIO DE OVIEDO. Antena Local de Mieres

Rosana Suárez CÁMARA DE COMERCIO DE OVIEDO

Montse Queipo CÁMARA COMERCIO OVIEDO. Antena Local Narcea



55

Noelia Llano CAMARA DE COMERCIO DE OVIEDO. Antena Local Narcea

Eugenia Villabello FUNDACIÓN DE FOMENTO DE LA ECONOMÍA SOCIAL

Dolores Nuño FUNDACIÓN DE FOMENTO DE LA ECONOMÍA SOCIAL

Marta aRANGO FUNDACIÓN DE FOMENTO DE LA ECONOMÍA SOCIAL

Verónica Álvarez CENTRO EURPEO DE EMPRESAS E INNOVACIÓN (BIC)

Belén Flecha CENTRO EUROPEO DE EMPRESAS E INNOVACIÓN (BIC)

Sandra García CENTRO EUROPEO DE EMPRESAS E INNOVACIÓN (BIC)

Roberto Larrondo CENTRO EUROPEO DE EMPRESAS E INNOVACIÓN (BIC)

Rogelio de la Vega CÁMARA DE COMERCIO DE OVIEDO. Antena Local Llanes

Eduardo González SOCIEDAD DESARROLLO COMARCAS MINERAS

José B. Otero SOCIEDAD DESARROLLO COMARCAS MINERAS

Marta García Programa EQUAL “EMPEZAR”

Fernando Zapico FEDERACIÓN ASTURIANA DE EMPRESARIOS

Ignacio Calvo Unidad Salud Mental SERVICIOS SANITARIOS ASTURIAS

Juan Pérez Lozana AYUNTAMIENTO DE AVILÉS

Carmen Fernández FUNDACIÓN MUJERES

Alvaro Gutierrez FUNDACIÓN SECRETARIADO GITANO

Lidia Antuña Programa EQUAL “Ciudades del Acero”

Ana Mª Méndez CENTRO EUROPEO DE EMPRESAS E INNOVACIÓN (BIC)

Susana Rodríguez Programa EQUAL “Empezar”

Mª Jesús Gayol Programa EQUAL “La Igualdad crea Empresa”

Concepción Fernández FUNDACIÓN METAL

Eva Pando CENTRO EUROPEO DE EMPRESAS E INNOVACIÓN (BIC)

Beatriz García AYUNTAMIENTO DE GIJÓN

Mª del Carmen Arias AYUNTAMIENTO DE CORVERA

Enrique Loredo UNIVERSIDAD DE OVIEDO

Marino Sánchez AYUNTAMIENTO DE CORVERA



56

FUNDOSA SOCIAL CONSULTING

María Hernández AYUNTAMIENTIO DE CARREÑO

Irene Sobrido AYUNTAMIENTO DE GOZÓN

Monserrat Fernández AYUNTAMIENTO DE GIJÓN (CENTRO EMPRESAS)

Fernando Bravo FUNDACIÓN SAN MARTÍN

Victor Fernández AYUNTAMIENTO DE AVILÉS

Olga Carmona AYUNTAMIENTO DE AVILÉS

Marta López ASOCIACIÓN DE CENTROS DE EMPRESAS

Nuria Canel FEDERACIÓN ASTURIANA DE EMPRESARIOS

Victoria Ceñal CÁMARA COMERCIO DE GIJÓN

Miguel Angel Juesas AYUNTAMIENTO DE AVILÉS (CENTRO DE EMPRESAS)

Eva Irazu FUNDACIÓN MUJERES

Mónica Barettino CENTRO EMPRESAS VALNALON

INCLUSIVE ENTREPRENEURSHIP IN THE PRINCIPALITY OF … · This report outlines a pilot study...

Documents

Transcript of INCLUSIVE ENTREPRENEURSHIP IN THE PRINCIPALITY OF … · This report outlines a pilot study...