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A business incubator helps project developers in Loiret, Centre-Val de Loire

  • 16 January 2020

Created in June 1994, the business incubator Pour une économie solidaire (PES45), based in Orléans, in the French Centre-Val de Loire region, is dedicated to promoting the growth of a solidarity-based economy that serves people and establishes a support and guidance centre with alternative and solidarity-based initiatives. PES45 reduces disparities in access to creating businesses in the Loiret department by helping project leaders at each stage of the process.

The ERDF co-finances the organisation. Thanks to this aid, the business incubator ‘Pour une économie solidaire’ (For a Solidarity-based Economy) is a recognized service of general economic interest under the authority of the Centre-Val de Loire region.

Mehdi Rhoulam, director of Pour une économie solidaire

Pour une économie solidaire enables on-the-ground validation of hypotheses formulated prior to creating a business. It creates a secure environment for project leaders and saves them time. It allows candidates for creating companies to strengthen personal, people and professional skills through a large system of individual and collective support. 

PES45 relies on its partner network to guide project leaders (chambers of commerce, employment centres, departmental council, associations, etc.). PES45 takes on 80 new project leaders a year. Of these 80, 50 new businesses are created and ten people transition back to employment.

Helping and creating a secure environment for business developers in the Loiret department

The programme’s operational objectives are, for the trial-run entrepreneurs, to target their customers and begin to produce and market, to learn the entrepreneurial profession, and to validate their initiative will. For them, it is about professionalising and organising their marketing strategies and getting very practical training in management tools, acquiring sufficient self-confidence to take the plunge and evaluating the economic viability of their project as a whole. 

Throughout the entire testing period, they retain their social rights (unemployment benefits, minimal social benefits). Finally, they become part of an initial network that enables them to exchange information about the issues they’re facing and to overcome isolation.

The geographic origin of those joining the PES45 business incubator programme indicates a stronger presence in the Loiret department each year. In 2015, the business incubator consisted of four centres (Orléans, Gien, Pithiviers and Montargis). There was a total of 87 candidates and 83 newly registered Support Contracts for Setting up a Business (CAPEs). 

In addition, support was given to 130 people, of which 93 were women and 37 men. Meanwhile, 77 people completed the programme, resulting in 47 businesses being created and 13 people returning to work, which is a 78% positive result. More than 5600 support hours were provided by staff of the incubator and partners (CCI [Chamber of Commerce and Industry], CMA [Chamber of Trades and Crafts ], RSI [French social security scheme for independent traders and freelancers], the Employment Centre, chartered accountants, notaries, insurance providers and banks), as well as by sponsor follow-up.

Stable revenues

For the 2016 fiscal year, in the Loiret department, PES45 registered 240 initial contacts with interested individuals. It participated in eight employment forums and helped 130 people working with a CAPE, of which at least 60% were women. Of these 130 people, 20% received RSA (Active Solidarity Income scheme) benefits, 15% came from inner city neighbourhoods and 10 were student-entrepreneurs. At the level of support contracts, 70 CAPEs were created, representing 14 admission committees. A total of 5 500 hours of intervention work in connection with the CAPE recipients were accounted for. Of the 130 CAPE recipients, 75 completed the programme, of which 50 created businesses and five returned to work. Finally, 20 sponsorship agreements with business creators were set up. 

Total investment and European funding

The ‘Loiret business incubator’ project received a total investment of EUR 207 952, with the European Regional Development Fund contributing EUR 60 990 under the ERDF Centre-Val de Loire cooperation programme for the 2014-2020 programming period. The investment falls under the ‘Employment, growth and investments’ priority area.