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COSME

12 March 2014

Anna DantiPolicy OfficerUnit EnterpreneurshipDirectorate General for Enterprise and Industry

Why clusters are powerful policy tools, and particularly relevant to SMEs?

Clusters offer a vibrant environment for SMEs (cooperation, infrastructure, skills);

SMEs can get top-quality customised business services through cluster organisations;

Cluster organisations facilitates SMEs access to

international markets;

What is the key objective of the EU strategy?

It is to assist Member States developing more world-class clusters in traditional and emerging industries by:

• strengthening cluster management• promoting cluster cooperation • providing a sound statistical analysis

On Cluster Excellence:European Cluster Excellence Initiative Benchmarking and trainings; 525 cluster organisations (bronze), 36 (gold); 5 CIP projects (40 new instructors and about 100 cluster managers trained).

On Cluster Cooperation:European Cluster Collaboration Platform 7 international MoUs signed; 6 CIP projects are currently supported; Opening up to 4 MEDA countries.

On Cluster Analysis:European Cluster Observatory EU Cluster mapping; Framework conditions for emerging industries

CIP

Clusters in COSME

Invest on cluster

excellence

Promote cluster cooperation

Cluster Analysis

Cluster Excellence Programme(First Call for proposals in Q1 2014)

Cluster Internationalisation Programme for SMEs(First Call for proposals in Q1 2014)

European Cluster Observatory

Clusters in other EC policies/programmes

• Structural Funds (especially as part of smart specialisation strategies)

• INTERREG Europe initiative

• Horizon 2020 (first specific Call in 2015 under the Innovation Instrument)

COSME: Programme for the Competitiveness of Enterprises and SMEs

What is COSME aiming at?• Improving access to finance• Improving access to markets• Improving the framework conditions of EU businesses • Promoting entrepreneurship

Budget: €2.3 billion for 2014 – 2020

1. Improving access to financeBudget allocated ca. €1.4 billion _

SMEs problems with bank loans

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• Constantly about one third of SMEs who applied for a loan did not get the finance they had planned for

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SME finance trends

Rejected loan applications

Interest rates (new loans ≤€0.25m)

2013 H1 Nov 2013

EU avg 13% 3.76%

France 13% 2.11%

Germany 3% 3.68%

Greece 31% 7.12%

Italy 16% 4.88%

Spain 15% 5.22%

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Objective 1: Improving access to finance

COSME will provide:

•A loan facility (to provide guarantees to cover loans for SMEs with a particular focus on financing of SMEs up to €150.000)

•An equity facility (to invest in SMEs predominately at the growth & expansion stage)

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COSME will build on the success of CIP

• With a budget of 1.1 billion EUR for financial instruments, the CIP has mobilised so far:

• €14 billion of loans for SMEs

• €2.3 billion of venture capital for SMEs

• More than 240,000 SMEs have been helped to access finance, incl:

Zero bureaucracy fro SMEs: funds go directly to banks and venire capital funds

access2eufinance.ec.europa.eu

• Type of finance

1. Company category

1. Amount of finance

2. Investment focus

3. Sources of finance

2. Improving access to marketsBudget allocated ca. €500 million _

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Objective 2: Improving access to markets One-stop-shop for SMEs: Enterprise Europe Network •Providing information and advice on EU funding programmes and EU legislation•Facilitating cross-border business cooperation, R&D and technology transfer•Providing SMEs information on how to expand outside EU e.g. Your Europe Business portal, new portal on access to markets outside EU, China IPR helpdesk

Future of Enterprise Europe Network Mid-January: Currently call for future network 2015-2021End 2014: Completion of evaluation procedure for future EEN

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COSME builds on CIP successes so far

The China IPR SME Helpdesk provides training for European SMEs on how to protect their IP when doing business in China. So far, it offered over 400 private confidential consultations. As a result of Helpdesk advice, 30 % of the users took a specific course of action (e.g. retaining lawyers, registering trademarks, undertaking administrative enforcement).

Enterprise Europe Network•600 business support organisations in 53 countries•Total impact on sales growth: 625 million EUR (220,000 EUR per company)•More than 4,400 jobs created between 2008 and 2012•More than 9,000 concluded cross-border partnership agreements

3. Improving framework conditionsBudget allocated ca. €260 million _

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Objective 3: Improving framework conditions

• Reducing administrative burden

• Supporting smart regulation: • SME test, • Competitiveness proofing, • Fitness checks

• Strengthening coordination of Member States industrial and SME policies

• Reinforcing the use of the 'Think Small First' principle

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CIP successes so far

By early 2012, the Commission had proposed measures that reduce administrative burdens by approximately 33 %. The Council and European Parliament have so far adopted some of these measures, amounting to a reduction of almost 25 %. The measures proposed by the Commission to date could lead to savings of more than 40 billion EUR.

4. Promoting entrepreneurship and entrepreneurial cultureBudget allocated ca. €58 million _

The EU citizens are less eager to be entrepreneurs...Answer to the question “Do you prefer to be self employed or an entrepreneur to being an employee?”

37%

51%

56%

There is a lesser appetite for entrepreneurship in Europe compared with the US and China

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Objective 4: Promoting entrepreneurship

• Goal: Re-igniting the entrepreneurial spirit in Europe

• Context: • Europe 2020 – growth and higher employment• Industrial Policy Communication – real economy

• Joint actions needed: EU + Member States, all levels, long-term engagement for lasting, deep impact

Action Pillars of Entrepreneurship2020

• Entrepreneurial education and training• create new generations of entrepreneurs

• Creating an environment where entrepreneurs can flourish and grow• offer effective support or get out of entrepreneurs’

way!

• Role models and reaching out = radical cultural change• entrepreneurship as 'the new cool

Action Pillar 1 – Education & Training

• New foundations: investing in entrepreneurial education is one of highest return investments possible

• Practical experience and learning is key• Involve real-world entrepreneurs• Build knowledge, skills (business basics, creativity, responsibility,

initiative, sense of achievement) and interest in entrepreneurship

• New frontiers: higher education for entrepreneurship• European Institute of Technology (EIT) example• Universities more entrepreneurial: beyond transfer of

knowledge towards active support for developing entrepreneurial ventures

Action Pillar 2 – Environment where Entrepreneurs Flourish & Grow

• Improve access to finance• Effective support at crucial stages in

business lifecycle• New business opportunities, need for new skills

& capabilities for digital age• Transfers of business• Efficient bankruptcy procedures and second

chance for honest bankrupt entrepreneurs• Reduce regulatory burden

Action Pillar 3 – Role models and reaching out to specific groups

• Entrepreneurship as attractive career option and more well-known entrepreneurs celebrated as role models

• Practical positive communication about rewards and recognition of achievements.

• New horizons: reaching out to and mobilising untapped entrepreneurial potential• Women• Seniors• Migrants• Unemployed• Young people

Women constitute, on average, 30% of entrepreneurs in the EU (36% start-ups, 20% industry)

Women enterprise differently than men.

European Network of Female Entrepreneurship ambassadors-22 countries more than 400 ambassadors

European Network of Mentors. 17 countries. 250 mentors

Supporting women entrepreneurs

Female creativity and entrepreneurial potential are an under-exploited source of economic growth and new jobs that should be further developed.

Erasmus for Young Entrepreneurs

“.. to facilitate exchange of experiences, learning and networking for new EU entrepreneurs through periods spent at SMEs of experienced entrepreneurs in other EU Member States.”

• Get experience & advice from seasoned entrepreneur

• Develop international contacts

• Get knowledge about foreign markets

• Providers, clients, co-venturing opportunities

• Access new skills and innovative knowledge

• Work with a young fresh mind contributing new ideas

• Gain knowledge and intelligence about the foreign markets

• Opportunity to establish a new business partnership with an entrepreneur from another country

Benefits for New Entrepreneurs

Benefits for Host Entrepreneurs

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Objective 4: Promoting entrepreneurship

• Developing and promoting skills and attitudes

• Promoting entrepreneurial education and self-employment at school and University e.g. through best practice exchange (Guide for educators)

• Workshops and exchanges of best practices (European Network of Mentors for Women Entrepreneurs)

• Supporting entrepreneurs' mobility across Europe to develop and practice know-how, skills, attitudes, management, technological capacity (Erasmus for Young Entrepreneurs exchange programme)

• Awareness raising activities (European SME Week)

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In the Netherlands, following measures taken by the government to promote the teaching of entrepreneurship in schools, the number of students in secondary education who say they want to be an entrepreneur has risen from 13 % to 23 %.

EU Network of Female Entrepreneurship Ambassadors: Active in 22 CIP countries. As a result of the first wave of Ambassadors in 10 countries, 210 new women-led companies have been started.

Mobility: 2,000 exchanges (7,000 entrepreneurs registered) launched under Erasmus for Young Entrepreneurs

Trainings: Projects preparing teachers to introduce entrepreneurship education into the classroom with 45 countries participating in 2011.

Promoting EntrepreneurshipSnapshot - One of many success stories

Thank you for your attention!

Find out more:

http://ec.europa.eu/enterprise/cosme/