There are approximately 20 million small and medium-sized enterprises (SMEs) in the EU. They account for 99 % of the total number of companies, employ two-thirds of the total workforce and generate nearly 60 % of EU value added (see Box 5)(30).
During the economic crisis several Member States have introduced new measures to stimulate self-employment and business start-ups.
In Bulgaria, a scheme to promote self-employment was launched in 2009 and runs until end-2013, providing training for the unemployed, start-up grants for successful trainees and consultancy services.
In Estonia, a business start-up subsidy is provided, together with counselling and special training from the beginning of 2010 until at least 2013.
In Finland, the value of existing start-up grants for unemployed people (and existing workers) has been increased.
In Lithuania, opportunities for the unemployed to start a business have been increased through finance provided by the European Globalisation Fund.
In Malta, a scheme has been offered to former shipyard employees who want to start their own businesses, by offering support in acquiring entrepreneurship skills and a financial grant.
In Poland, the ceiling of grants to unemployed people for the start-up of a new business has been increased.
In Portugal, subsidised credit is provided to young unemployed people who start a new business provided they meet certain criteria, including registration with the public employment services.
In Slovenia, funds have been provided for the education and training of unemployed people who want to become self-employed. However, in 2010 the rules for eligibility have been narrowed (obligatory consultation on suitability - competences for entrepreneurship).
Until end-2010, Slovakia has introduced a temporary exemption from health insurance payments (up to 24 months) for people entering self-employment after a period of three months on the jobseekers register.
In Spain, the capitalisation of unemployment benefits(31) to encourage self-employment was raised from 40% to 60% (the percentages were later increased to 80% for young people aged up to 30 and women up to 35).
In the United Kingdom, business start-up incentives for job seekers have been brought forward. Those who make the move into self-employment are eligible to receive Self-Employment Credit for the first 16 weeks, and ongoing mentoring support is provided for those who need it.
In Greece, two programmes to help with the start-up of businesses were introduced in 2009. The aim of the first programme is to help young graduates (up to 34 years of age), such as engineers, medical doctors, pharmacists, lawyers, etc, to establish an independent professional activity. The second programme targets all unemployed people; enabling young unemployed people wishing to become self-employed to receive a subsidy, provided that they first participate in an entrepreneurship course.
In France, support was granted to firms in the housing and automobile industries among others and some government-funded programmes for businesses were accelerated, especially for SMEs. Access to finance has been eased by providing additional funding for SMEs via reattribution of regulated savings, to help finance loans for that category of business for a total amount of € 22 billion, i.e. around 1 % of GDP.
In Germany personal income tax credit for services supplied by self-employed people for household repairs can be as high as 20 % (ceiling: EUR 6 000, i.e. maximum aid = EUR 1 200), and this over an unlimited period.
At European level, the establishment of the European Microfinance Facility was agreed in March 2010. This facility provides loans to people who have lost their jobs and want to start or further develop their own small business. A budget of EUR 100 million is being made available over four years but this can be increased to more than EUR 500 million in a joint initiative with international financial institutions, in particular the European Investment Bank. Those helped under the initiative will also be able to benefit from mentoring, training and coaching as well as assistance in preparing a business plan, in close cooperation with the European Social Fund(32).
Although the above-mentioned measures target well-specified groups, it should be recognised that promoting self-employment is a process that creates new jobs primarily in the medium to long term, especially if one takes into consideration the difficulties in starting a business during an economic downturn. Moreover, such start-ups may crowd out existing businesses, leading employees to revert to self-employment in order to take advantage of the support measures.
(30) | See also European Commission (2009f). |
(31) | Unemployment capitalisation consists of receiving a sole payment of the total or partial amount - depending on the category- of unemployment benefit at contribution level. Its objective is to boost employment, since the person without work can, from the start, have money available to invest in a self-employmentbased activity. See .... |
(32) | For more details on the European Microfinance Facility, see http://ec.europa.eu/social/main.jsp?langId=en&catId=89&ne wsId=730&furtherNews=yes |