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iq consult
agency for social innovations


Norbert Kunz, CEO


OECD Leed, Capacity building seminar
Trento, 27-29 June 2012
EU General vs. Youth unemployment, Feb. 2012

  Umemployment                            Youth unemployment




                                                                                         iqconsult_Shaping development
 Source: derStandart.at
 http://derstandard.at/1333185006677/Februar-Hoechste-Arbeitslosigkeit-in-EU-seit-1997
 Accessed: 26/06/2012
EU Youth unemployment (<25), March 2012


  Greece                                            51.20%

    Spain                                           51.10%

 Portugal                                  36.10%

     Italy                                35.90%

       EU                        22.60%

Eurozone                        22.10%




                                                               iqconsult_Shaping development
       UK                       21.90%

  France                        21.80%

  Austria           8.60%

Germany             7.90%

         0.00%              20.00%        40.00%      60.00%


 Source: Eurostat
Youth unemployment in 2012


Facts


 EU unemployment rate reached 10,2 % in Feb. 2012
 EU youth unemployment rate more than 21% in Feb.
  2012




                                                         iqconsult_Shaping development
 Highest youth unemployment rates, over 50% !! …in
  Greece and Spain and over 30 % !!!
   in Italy, Lithuania, Portugal, Slovakia, Irland and
   Bulgaria
Perception of the Feasibility of Self-
employment in the EU, 2009


        EU 27

      15 - 24

      25 - 29

      40 - 54

        > 55




                                                                             iqconsult_Shaping development
Women (all)

    Men (all)

                0%         20%         40%         60%         80%    100%

                           Very or quite feasible
                           Not very or not feasible

 Source: Commission (2009), Eurobarometer, "Entrepreneurship in the
 European Union and Beyond"
Risks and Opportunities


Especially in the case of small enterprises risks
and opportunities are manageable !
The opportunities of self-employment for unemployed
people are twofold:
 The chance to own an income




                                                            iqconsult_Shaping development
 Preservation and further development of
  vocational skills
Self-determination and ownership is a different
motivation basis than many other professional
integration policies – which are often partially accepted
voluntarily.
Barriers - Youth Entrepreneurship (YE)


teachers
            role models                         key stakeholders
                                    migration
  awareness                                networks        social
family
            society                                        capital
                                        market
                                        barriers discrimination
                                                   in markets
                           YE




                                                                     iqconsult_Shaping development
                                            collateral
          attitudes                                      loans
 skills                                  financial
          education                      savings
                                                   credit history
  knowledge           work experience
               training
              programs
Barriers - Youth Entrepreneurship (YE)


teachers
            role models                         key stakeholders
                                    migration
  awareness                                networks        social
family
            society                                        capital
                                        market
                                        barriers discrimination
                                                   in markets
                           YE




                                                                     iqconsult_Shaping development
                                            collateral
          attitudes                                      loans
 skills                                  financial
          education                      savings
                                                   credit history
  knowledge           work experience
               training
              programs
State of support services in Europe


Experiences from COPIE – Community of Practice on
Inclusive Entrepreneurship


 Parallel structures
 Competition between service providers




                                                        iqconsult_Shaping development
 No offers for specific target groups
 Uncoordinated services
 No interaction between (micro-)finance institutions
  and start-up support organisation
Risks and Opportunities


The opportunities of a self-employment activity
increases significantly through,
 a good preparatory qualification,
 a proper assessment of the economic sustainability
  (business plan),




                                                       iqconsult_Shaping development
 an accompanying monitoring (advice and coaching),
  which helps to avoid mistakes,
 a timely crisis intervention.
Potentials for improvement


We need integrated start-up support services



   (micro-)
                                    Support
   Finance        Interaction
                                    servicies




                                                   iqconsult_Shaping development
 Institutions



Main roadblock:                  Main roadblock:

Bankability                      One size fits
                                 all offers
enterprise


Integrated start-up support model for youth unemployed




Help young unemployed to find their way through




                                                         iqconsult_Shaping development
                    self-employment


Building on the fact that an offer for young adults
without mediation and integration ends up failing.
the enterprise process




      Interaction between
(micro-) finance institutions and
        support services




                                    iqconsult_Shaping development
iqconsult_Shaping development
Tanja Hofmann

“Lekker Snoepjes”
Chocolate factory and coffee

Founded in 2008 in Potsdam

www.lekkersnoepjes.de
iqconsult_Shaping development
Daniel Thiede

„Die Saubermacher“
Maintenace services

Founded in 2011 in Groß
Woltersdorf/ Priegnitz
iqconsult_Shaping development
Susann Goldau

„Tischkultur Susann Goldau“
Interior designer

Founded in 2010 in Rathenow/
Havelland

www.deko-goldau.de
Evaluation of regional business start-up support
    infrastructure, Extremadura, Spain – Sep. 2010


5th Block – Evaluation of regional business start-up
support infrastructure
1. The infrastructure to start-up a business in my area reaches and is
   aligned to all interested groups
2. It is possible to obtain information through info-sessions or by other
   means about entrepreneurship and self employment in my area
3. The advising services in my region give a complete and transparent




                                                                                iqconsult_Shaping development
   information on their support services
4. It is easy for entrepreneurs to find adequate support services in my
   region
5. In my region there are suitable individual advising and support offers for
   those interested in the pre-start-up phase (free or at a reasonable cost)
6. In my region there are suitable individual advising and support offers for
   those interested in the post-start-up phase (free or at a reasonable cost)
7. There are appropriate funding sources for small business start-ups in my
   region (with small or reasonable warranties)
8. The business start-up advisors are good qualified for their work
Evaluation of regional business start-up support
      infrastructure, Extremadura, Spain – Sep. 2010

5.0
  

4.5


4.0


3.5




                                                                                                    iqconsult_Shaping development
3.0
                       …support services reaches and
                       is aligned to all interested
2.5
                       groups?
2.0
          5.1        5.2         5.3        5.4         5.5        5.6         5.7        5.8

              Entrepreneurs             Businessmen/-women (<2y)                  Advisors

      Source: Community of Practice on Inclusive Entrepreneurship – QM Survey on requirements
      for business advisors and evaluation of the regional infrastructure for business start-ups.
      Extremadura, Spain. September 2010
Quality


What are the most significant quality characteristics
of a business start-up support system?

 Integrated start-up support model in all phases of
  business creation.




                                                           iqconsult_Shaping development
 Target group oriented services increase the
  willingness to tackle the question of self-employment.
 High quality counseling offers
 Finance: access, monitoring and interaction with
  support services
 Positive start-up environment
A concept of iqconsult




iqconsult is an agency for social innovation based in




                                                             iqconsult_Shaping development
Germany with almost 20 years of experience. We design
and implement social innovative concepts in the areas of
regional development and inclusive-, cultural- and social-
entrepreneurship.
Norbert Kunz
kunz [at] iq-consult [.] com



                               They can, if they
                               become the right
                               support !!


                               „enterpriseVorein of me the
                               „With the support
                               Annegret provides
                                            has given




                                                                iqconsult_Shaping development
                               comprehensiveSpeechadvisors
                               professional business therapy
                               Start-up idea: into self-
                               courage to step advice on all
                               issues relatedself-employment
                               my dream of and self-
                               www.logopraxis-potsdam.de
                               employment to transform my
                               employment.career“ tovital
                               has come true and the the
                               passion into Thanks
                               tirelessVaorin of 20.000 Euro
                               start-upsupport of my business
                               Maria credit
                               advisors, idea: byalway & very
                               was approved Fashion felt
                               Start-up I have the bank.
                               You have been great, thank you
                               comfortablephotography
                               advertising and proficiently
                               very much!“
                               www.mariavaorin.de
                               supported!“
                               Maria Vaorin
                               Martin Rolle Fashion &
                               Annegret Vorein
                               Start-up idea:
                                               Boat rental
                               Start-up idea: Speech therapy
                               advertising photography
                               www.geboote24.de
                               Age at founding: 2527

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An integrated support system for inclusive entrepreneurship – what are the most appropriate supports to increase the chances of success of financial support? By Norbert Kunz, Founder, IQconsult

  • 1. iq consult agency for social innovations Norbert Kunz, CEO OECD Leed, Capacity building seminar Trento, 27-29 June 2012
  • 2. EU General vs. Youth unemployment, Feb. 2012 Umemployment Youth unemployment iqconsult_Shaping development Source: derStandart.at http://derstandard.at/1333185006677/Februar-Hoechste-Arbeitslosigkeit-in-EU-seit-1997 Accessed: 26/06/2012
  • 3. EU Youth unemployment (<25), March 2012 Greece 51.20% Spain 51.10% Portugal 36.10% Italy 35.90% EU 22.60% Eurozone 22.10% iqconsult_Shaping development UK 21.90% France 21.80% Austria 8.60% Germany 7.90% 0.00% 20.00% 40.00% 60.00% Source: Eurostat
  • 4. Youth unemployment in 2012 Facts  EU unemployment rate reached 10,2 % in Feb. 2012  EU youth unemployment rate more than 21% in Feb. 2012 iqconsult_Shaping development  Highest youth unemployment rates, over 50% !! …in Greece and Spain and over 30 % !!! in Italy, Lithuania, Portugal, Slovakia, Irland and Bulgaria
  • 5. Perception of the Feasibility of Self- employment in the EU, 2009 EU 27 15 - 24 25 - 29 40 - 54 > 55 iqconsult_Shaping development Women (all) Men (all) 0% 20% 40% 60% 80% 100% Very or quite feasible Not very or not feasible Source: Commission (2009), Eurobarometer, "Entrepreneurship in the European Union and Beyond"
  • 6. Risks and Opportunities Especially in the case of small enterprises risks and opportunities are manageable ! The opportunities of self-employment for unemployed people are twofold:  The chance to own an income iqconsult_Shaping development  Preservation and further development of vocational skills Self-determination and ownership is a different motivation basis than many other professional integration policies – which are often partially accepted voluntarily.
  • 7. Barriers - Youth Entrepreneurship (YE) teachers role models key stakeholders migration awareness networks social family society capital market barriers discrimination in markets YE iqconsult_Shaping development collateral attitudes loans skills financial education savings credit history knowledge work experience training programs
  • 8. Barriers - Youth Entrepreneurship (YE) teachers role models key stakeholders migration awareness networks social family society capital market barriers discrimination in markets YE iqconsult_Shaping development collateral attitudes loans skills financial education savings credit history knowledge work experience training programs
  • 9. State of support services in Europe Experiences from COPIE – Community of Practice on Inclusive Entrepreneurship  Parallel structures  Competition between service providers iqconsult_Shaping development  No offers for specific target groups  Uncoordinated services  No interaction between (micro-)finance institutions and start-up support organisation
  • 10. Risks and Opportunities The opportunities of a self-employment activity increases significantly through,  a good preparatory qualification,  a proper assessment of the economic sustainability (business plan), iqconsult_Shaping development  an accompanying monitoring (advice and coaching), which helps to avoid mistakes,  a timely crisis intervention.
  • 11. Potentials for improvement We need integrated start-up support services (micro-) Support Finance Interaction servicies iqconsult_Shaping development Institutions Main roadblock: Main roadblock: Bankability One size fits all offers
  • 12. enterprise Integrated start-up support model for youth unemployed Help young unemployed to find their way through iqconsult_Shaping development self-employment Building on the fact that an offer for young adults without mediation and integration ends up failing.
  • 13. the enterprise process Interaction between (micro-) finance institutions and support services iqconsult_Shaping development
  • 14. iqconsult_Shaping development Tanja Hofmann “Lekker Snoepjes” Chocolate factory and coffee Founded in 2008 in Potsdam www.lekkersnoepjes.de
  • 15. iqconsult_Shaping development Daniel Thiede „Die Saubermacher“ Maintenace services Founded in 2011 in Groß Woltersdorf/ Priegnitz
  • 16. iqconsult_Shaping development Susann Goldau „Tischkultur Susann Goldau“ Interior designer Founded in 2010 in Rathenow/ Havelland www.deko-goldau.de
  • 17. Evaluation of regional business start-up support infrastructure, Extremadura, Spain – Sep. 2010 5th Block – Evaluation of regional business start-up support infrastructure 1. The infrastructure to start-up a business in my area reaches and is aligned to all interested groups 2. It is possible to obtain information through info-sessions or by other means about entrepreneurship and self employment in my area 3. The advising services in my region give a complete and transparent iqconsult_Shaping development information on their support services 4. It is easy for entrepreneurs to find adequate support services in my region 5. In my region there are suitable individual advising and support offers for those interested in the pre-start-up phase (free or at a reasonable cost) 6. In my region there are suitable individual advising and support offers for those interested in the post-start-up phase (free or at a reasonable cost) 7. There are appropriate funding sources for small business start-ups in my region (with small or reasonable warranties) 8. The business start-up advisors are good qualified for their work
  • 18. Evaluation of regional business start-up support infrastructure, Extremadura, Spain – Sep. 2010 5.0  4.5 4.0 3.5 iqconsult_Shaping development 3.0 …support services reaches and is aligned to all interested 2.5 groups? 2.0 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 Entrepreneurs Businessmen/-women (<2y) Advisors Source: Community of Practice on Inclusive Entrepreneurship – QM Survey on requirements for business advisors and evaluation of the regional infrastructure for business start-ups. Extremadura, Spain. September 2010
  • 19. Quality What are the most significant quality characteristics of a business start-up support system?  Integrated start-up support model in all phases of business creation. iqconsult_Shaping development  Target group oriented services increase the willingness to tackle the question of self-employment.  High quality counseling offers  Finance: access, monitoring and interaction with support services  Positive start-up environment
  • 20. A concept of iqconsult iqconsult is an agency for social innovation based in iqconsult_Shaping development Germany with almost 20 years of experience. We design and implement social innovative concepts in the areas of regional development and inclusive-, cultural- and social- entrepreneurship.
  • 21. Norbert Kunz kunz [at] iq-consult [.] com They can, if they become the right support !! „enterpriseVorein of me the „With the support Annegret provides has given iqconsult_Shaping development comprehensiveSpeechadvisors professional business therapy Start-up idea: into self- courage to step advice on all issues relatedself-employment my dream of and self- www.logopraxis-potsdam.de employment to transform my employment.career“ tovital has come true and the the passion into Thanks tirelessVaorin of 20.000 Euro start-upsupport of my business Maria credit advisors, idea: byalway & very was approved Fashion felt Start-up I have the bank. You have been great, thank you comfortablephotography advertising and proficiently very much!“ www.mariavaorin.de supported!“ Maria Vaorin Martin Rolle Fashion & Annegret Vorein Start-up idea: Boat rental Start-up idea: Speech therapy advertising photography www.geboote24.de Age at founding: 2527