LOCAL POLICY GUIDE ON YOUTH ENTREPRENEURSHIP

Project "Grounds for better future of our youth" No CB007.1.21.343

The project is co-funded by EU through the Interreg-IPA CBC Bulgaria–Serbia

Programme

LOCAL POLICY GUIDE ON

YOUTH ENTREPRENEURSHIP

1

The Local Policy Guide is developed under project "Grounds for better future of our youth" No CB007.1.21.343 under the Interreg-IPA Cross-Border Cooperation Bulgaria - Serbia

Programme, CCI Number: CCI 2014TC16I5CB007.

This document has been produced in the framework of Project

CB007.1.21.343 "Grounds for better future of our youth". The project is funded by

the INTERREG-IPA Cross-Border Cooperation Bulgaria-Serbia Programme, CCI

Number 2014TC16I5CB007, Priority Axis 2 "Youth", Specific Objective 2.1 "Skills

and Entrepreneurship". Leading partner in the project is the Cultural and

Information Center Boljevac (Serbia), with project partner Chiprovtsi Municipality

(Bulgaria). The total budget of the project is 502,440.41 euro, with an

implementation period of 18 months.

This project aims to promote better understanding and cooperation among

partners, in particular addressing youth needs, improving their quality of life and

preparing them to succeed, as well as creating stronger links between the two

partner municipalities of Boljevac and Chiprovtsi.

This publication has been produced with the assistance of the European

Union through the Interreg-IPA CBC Bulgaria-Serbia Programme, CCI No

2014TC16I5CB007. The contents of this publication are the sole responsibility of

Chiprovtsi Municipality and Cultural-Educational Center Boljevac and can in no

way be taken to reflect the views of the European Union or the Managing

Authority of the Programme.

2



Introduction

The most urgent threat to the further development of the Chiprovtsi and

Boljevac regions is depopulation, which is mainly the result of youth migration

from smaller settlements to bigger cities due to their better prosperity

opportunities.

Current demographic trends and ever-increasing youth unemployment force

youth entrepreneurship to become a center of discussion and development of local

policies. Responding to the needs and rights of young people and their

empowerment is a priority for the municipality of Chiprovtsi and the municipality

of Boljevac.

In order to tackle the problem of high youth unemployment, which is

considered the main reason for the high migration of young people, a new focus

on young people's entrepreneurship is needed. Unfortunately, the Serbian and

Bulgarian education systems still do not recognize entrepreneurship as a topic to

be included in the regular curriculum, and young people in the region do not have

much knowledge and skills in terms of entrepreneurship. The purpose of the

studies, analyzes and seminars of this project is to overcome this discrepancy.

Young people in this region are seriously lacking suitable premises where

youth activities can be held. And the municipal authorities of Chiprovtsi and

Boljevac make considerable efforts to meet the needs of youth, but the migration

problem is still ongoing. At present, Boljevac Municipality has a Cultural and

Educational Center (CEC) as a designated place where youth activities are held.

Unfortunately, CEC does not meet the needs of youth due to the poor

condition of the building. As a result, the cost of operating the CEC is high, and it

is itself capable of providing very limited opportunities for young people to carry

out their activities.

3



Apart from the educational needs of the young people, Chiprovtsi

Municipality also focuses on meeting the needs for improving recreation areas,

parks and playgrounds as another approach to improving the quality of life of

young families and reducing the migration of young people.

The envisaged reconstruction of the CEC in Boljevac and 2 playgrounds in

the municipality of Chiprovtsi will increase the engagement of young people in the

production activities and will provide the most adequate space for activities related

to young people. In addition, youth entrepreneurship seminars, training and

practical guidance will improve the quality of life of young people.

In order for the planned activities to be as effective as possible to meet the

needs of young people in the region concerned, this Local Policy Guide on Youth

Entrepreneurship is planned and prepared. The document will be an important

contribution to the efforts of regional and local authorities to develop policies and

programs to promote youth entrepreneurship by providing a basis for job creation

through the development, expansion and growth of youth-managed enterprises.

The guide will be developed to support the cross-border Montana and

Zajecar region in order to create effective policies to unleash the potential of youth

entrepreneurship. The guide will also be important for decision-makers in NGOs

and development agencies involved in youth entrepreneurship.

4



Content

OBJECTIVES OF THE GUIDE ......................................................................... 7

Main objective of the Guide ....................................................................... 8

Specific objectives of the Guide ................................................................. 8

Expected results from the Guide ................................................................ 9

Direct beneficiaries .................................................................................. 9

OVERVIEW OF THE RESULTS OF THE STUDY AND ANALYSIS ON THE POTENTIAL

OF THE CROSS-BORDER REGION TO REDUCE YOUTH EMMIGRATION ............. 10

OVERVIEW OF THE CURRENT DEMOGRAPHIC TRENDS AND THE EXPLOSION OF

YOUTH UNEMPLOYMENT ............................................................................ 17

Demographic Trends and Youth Unemployment in the Montana region ......... 18

Demographic Trends and Youth Unemployment in the Zajecar region .......... 20

General characteristics of young people in the region ................................. 22

OVERVIEW OF THE BUSINESS ENVIRONMENTS AND TRENDS IN THE REGION . 25

OVERVIEW OF IMPLEMENTED POLICIES AND STRATEGIES FOR STIMULATING

EMPLOYMENT AND BUSINESS DEVELOPMENT IN THE REGION ....................... 28

OVERVIEW OF ENTREPRENEURSHIP EDUCATION AND SKILLS DEVELOPMENT IN

THE REGION ............................................................................................ 32

PRESENTATION OF EU POLICIES AND BEST PRACTICES IN THE DEVELOPMENT

OF YOUTH ENTREPRENEURSHIP ................................................................. 36

Policies and best practices at European level ............................................. 37

Policies and best practices from countries in the European Union ................. 41

Germany ........................................................................................... 41

Finland .............................................................................................. 43

Austria .............................................................................................. 47

Netherlands ....................................................................................... 49

Hungary ............................................................................................ 52

METHODS FOR STIMULATION OF YOUTH ENTREPRENEURSHIP, JOB CREATION

THROUGH THE DEVELOPMENT, EXPANSION AND GROWTH OF YOUTH-LED

ENTERPRISES .......................................................................................... 55

Measures for education, training and improvement of the employability ....... 56

5



Expansion of training programs for obtaining vocational education certificates

and training programs with a commitment for hiring ............................... 57

Development of programs through which unemployed persons who have left

the education system prematurely can obtain a diploma for completed

compulsory secondary education .......................................................... 57

Promoting entrepreneurship and self-employment ..................................... 59

Expanding the possibilities for applying unemployment benefits................ 59

Establishment of special services at the labor offices to provide advice and

assessments to the new entrepreneur ................................................... 60

Stimulating the recruitment of people with experience in creating new youth

projects ............................................................................................. 60

Targeting and improving the mediation of public employment services and their

co-operating organizations...................................................................... 61

Stimulating job opening and employment ................................................. 62

Stimulating part-time employment and providing vocational training ......... 62

First job ............................................................................................. 63

FORMULATION OF LOCAL YOUTH ENTREPRENEURSHIP STRATEGY ................. 64

Developing entrepreneurial skills among young people ............................... 66

Providing information, advice, training and mentoring ................................ 69

Providing financial support ...................................................................... 71

Development of entrepreneurial infrastructure .......................................... 74

SUGGESTIONS FOR OPTIMIZING THE REGULATORY ENVIRONMENT ............... 76

Management of the Public Administration ................................................. 77

Improve the mediation of employment services and their co-operating

organizations ........................................................................................ 80

Stimulating employment and use of flexible contracts ................................ 82

SUGGESTIONS FOR ENHANCING ENTREPRENEURSHIP EDUCATION AND SKILLS

DEVELOPMENT ......................................................................................... 83

Education ............................................................................................. 84

Training................................................................................................ 86

Improve language skills and use of technology tools .................................. 88

Promoting entrepreneurship and self-employment ..................................... 90

METHODS FOR FACILITATING TECHNOLOGY EXCHANGE AND INNOVATION .... 91

METHODS FOR IMPROVING ACCESS TO FINANCE ......................................... 93

6



METHODS FOR PROMOTING AWARENESS AND NETWORKING ........................ 95

ACTION PLAN FOR A PERIOD OF 3 TO 5 YEARS BASED ON THE PRESENTED

SUGGESTIONS AND METHODS FOR YOUTH ENTREPRENEURSHIP ................... 98

METHODS FOR ASSESSING THE EFFECTIVENESS OF THE LOCAL POLICY GUIDE

ON YOUTH ENTREPRENEURSHIP ...............................................................108

Indicators for performance and results ....................................................110

Impact indicators..................................................................................111

7



OBJECTIVES OF THE GUIDE

8



Main objective of the Guide

The main objective of the

Local Policy Guide on youth

entrepreneurship is to provide

working measures to regional and

local authorities to develop policies

and programs to promote youth

entrepreneurship by providing a

basis for job creation through the

development, managed by young

people as well as general youth

employment.

Specific objectives of the Guide

The following four specific goals are set for providing youth entrepreneurship

and employment in the region:

• Identification of measures to improve youth employment

• Offering solutions for raising the quality of young people as

entrepreneurs and labor and ensuring sustainability

• Promoting equal opportunities

• Encourage the entrepreneurial spirit among young people

9



Expected results from the Guide

The Local Policy Guide on youth entrepreneurship focuses on achieving the

following main results:

• formulating a national and cross-border entrepreneurship strategy;

• Optimizing the regulatory environment for youth entrepreneurship;

• Improving entrepreneurial education and developing the skills of

young people;

• Facilitating the exchange of technology and innovation;

• Improving access to finance;

• Promoting awareness and networking

Direct beneficiaries

The Local Policy Guide on youth entrepreneurship will be actively

disseminated and used by:

• directors of directorates,

• general Secretaries of Ministries,

• mayors and deputy mayors,

• secretaries of municipalities,

• directors of sectors in agencies,

• employees and other experts working in the fields of youth,

education and employment

• representatives of NGOs working with young people

• business representatives

• representatives of educational institutions

10



OVERVIEW OF THE RESULTS OF THE

STUDY AND ANALYSIS ON THE

POTENTIAL OF THE CROSS-BORDER

REGION TO REDUCE YOUTH

EMMIGRATION

11



Within project CB007.1.21.343 "Grounds for Better Future of Our Youth", a

sociological study and analysis of the potential of the cross-border region to reduce

youth emigration was conducted. The main purpose of this study and analysis is

to provide detailed information and understanding of the current migratory trends

of young people identified by quantitative research.

The survey includes not only

the economic development of the

two municipalities and areas, but

also the sociological perspectives

and aspects, educational

opportunities, living conditions and

all the reasons for the migration

process. It also addresses all aspects

of living conditions in the cross-

border region and seeks to link them

to the results of sociological research

to find direct links and effects

between economic, administrative

and living conditions in the region, and the views and attitudes of young people in

connection with immigration and the possibilities to decide to reside and live in the

region. Finally, the survey and analysis provide valuable information and measures

to reduce the number of young migrants to politicians and representatives of local

and regional authorities in decision-making in the field of youth policies, activities

and initiatives and other stakeholders.

The study and analysis show that the young population between 15 and 29

will progressively decrease, with the projected reduction of over 23% by 2020. In

particular, this will affect age groups 20-24 and 25-29 years.

12



Over 55% of the young population lives in cities. There is a tendency for the

largest territorial movement in the city-city direction. As in recent years there has

been a new rise in the desire for emigration among young people, especially in the

age of 20-29 years. It is positive that the educational structure of the emigration

flow is definitely changing - it is dominated by young people with an average

(11.9%) and lower education (10.2%). Higher faces are increasingly seeing

chances and prospects for a good material situation in their country.

Although there is an increasing number of young people in the region who

complete secondary education, in most cases young people have no practical and

professional experience in the postgraduate specialty after completing their

education and are difficult to enter the labor market.

Efforts need to be made to move young people from the school to the labor

market by extending traineeships and practices in the real sector. It is also

beneficial to keep young people in the region to invest by employers in the training

and qualification of young employees.

Assessing the possibilities of using state unemployment benefits or working

and pay conditions in major cities and European Union countries, young people are

disillusioned with the region's pay and prefer either not to work or seek outside

work. And although for many young people the development of their own business

is an attractive and prestigious opportunity, very few of them manage to realize

their own business plans.

The population aged between 29 and 35 is excluded from most programs

and initiatives for education, employment and funding of initial business initiatives.

And, on the other hand, there is not enough experience and skills to take

advantage of other opportunities for already established professionals or acting

firms. These even more burdensome conditions further encourage many people

between the ages of 29 and 35 to seek employment or even temporary

employment in larger cities and Western European countries.

13



The region is characterized by economic backwardness. The local labor

market remains in crisis, slowing income growth and improving the living

conditions of citizens. Infrastructure is in poor condition and access to the Internet

is very limited. Although local government receives predominantly positive

assessments of its work by both citizens and business, and the tax environment is

favorable, these factors are not sufficient to increase the investment activity of

enterprises and attract foreign capital.

State, regional and local authorities are aware of the shortcomings of the

region and the need to implement policies, programs and initiatives to improve the

economic situation of the region, attract investment and support to local

businesses, and improve living conditions and encourage young people to remain

and develop in the region.

Education is considered unsatisfactory due to the low success rate of local

students and the limited choice of high schools, vocational colleges and the lack of

a university in the region. This disadvantage is offset by the existence of a variety

of EU-funded programs and projects aimed at the development of vocational skills,

retraining, training of the disadvantaged population and others.

Regarding job opportunities in the region, the main economic spheres in

which the local population can find employment are agriculture, vehicle

manufacturing, food production, computer and communication equipment,

electronics and optical products, as well as in the service sector. These conditions

determine the need for professionals to be in precisely defined production areas,

the requirements of which most young people do not respond and to which they

are not so interested. There are no modern international companies working in the

field of IT technology, innovation communications and other more interactive areas

that are currently more popular among young people and allow them not only to

better develop their potential and to develop in their careers, but also have a

higher standard of living due to the higher average wages in these sectors.

14



The quality of the social environment and the environment in the area is

positively assessed. However, there are no varied and modern conditions for

spending leisure time and entertainment for young people, as well as the

development of their cultural life. Thus, besides attractive career opportunities for

young people in the region, there are also no attractive opportunities for social life

and entertainment.

Overall, long-term investments and initiatives by countries and businesses

in developing market competitiveness, attracting foreign firms and offering more

attractive working conditions have succeeded in attracting a significant proportion

of young people who have gone to study or work abroad. For the time being, this

effect is felt most strongly in the capitals and some of the larger cities of the two

countries. It is expected that, by further stimulating the economies of the different

regions in Bulgaria and Serbia, such an effect will be achieved and at least in terms

of the fact that the young people living in them will prefer to stay and develop in

them and in the future.

The statistics, policies and other conditions presented above, analyzed and

analyzed before the young people in the region serve to analyze the potential of

the cross-border region to reduce youth migration. Generally, from the information

presented, it can be concluded that the main potential for attracting young people

15



is through the opportunities for vocational training and development in highly

specialized industrial sectors, the existence of a peaceful environment for living

and clean nature, the existence of many policies and programs to young people

and their sustainable inclusion in economic life. However, the region has the

problem of attracting foreign investments and modern companies to compete with

the working conditions and career opportunities of companies in major cities. The

follow-up of the planned municipal plans and regional development strategies

should attract such investments, but to this end also the active involvement of

young people, representing a competent and desirable workforce, is necessary.

The results of the statistical and sociological analysis show that young

people in the region are declining more and many of those who have stayed there

would like to emigrate to another city or country.

16



The main reasons for these attitudes are:

• Lack of opportunities for varied vocational education;

• Insufficient satisfaction of the remuneration received in a region;

• Lack of opportunities for companies in the more modern economic

sectors working in the field of innovation and information

technologies, including foreign firms;

• Insufficient Internet access to allow young people to work remotely

for companies from other cities or countries;

• Lack of opportunities and incentives for young people to start their

own business

• Present and expectations of young people from the region that they

would receive higher salaries if they emigrate from the region

According to most of the young people, a positive feature of the region could

be the more relaxed and environmentally friendly living conditions.

17



OVERVIEW OF THE CURRENT

DEMOGRAPHIC TRENDS AND THE

EXPLOSION OF YOUTH UNEMPLOYMENT

18



Demographic Trends and Youth Unemployment in the

Montana region

As of December 31, 2015, the population of the Montana region is 137,188,

which represents 1.9% of the country's population, ranking the 18th place by

population. Compared to 2014, the population of Montana decreased by 2162, or

by 1.6%. Men are 67,227 (49.0%) and women - 69,961 (51.0%) or 1,000 men

are 1041 women.

The aging process of the population continues, which means increasing the

relative share of the population aged 65 and over and preserving the share of

children up to 15 years at the level of the previous year. The working age

population as of December 31, 2015 was 76,702, or 55.9% of the Montana

population, 41.226 men and 35 176. The number of working population declined

by 1,451, or by 1.9% in 2015 compared to the previous year.

In 2015 all municipalities in the area have a negative natural growth. The

least positive coefficient of negative natural growth is the Municipality of Montana

19



- minus 9.2 ‰, and with the largest - the municipalities G. Damyanovo - minus

36.5 ‰ and Chiprovtsi - minus 22.6 ‰. Significant influence on the number and

structures of the population is also the mechanical growth, which for 2015 is also

negative - minus 330 people. It is formed as the difference between the number

of 3875 people settled in the Montana region and 4205 people who have left the

province.

Contrary to the general trends for the country, employment in the Montana

region deteriorated sharply in 2015. The employment rate dropped to 53.7%,

which is the fourth lowest value after Silistra (49.2%), Vratsa (50.3%) and

Targovishte (51.6%), with an average for the country of 62.9%. Unemployment

drops from 16.3% in 2014 to 8.2% in 2015, but this is due to a collapse in the

economic activity of the population and not to the creation of jobs. In 2015, 58.5%

of the population aged 15-64 are economically active at 69.3% for the country.

Prospects for the development of the labor market also do not seem promising

against the backdrop of the low share of the population with university education

- 17.3%, with a 27.5% relative share in the country.

Montana region is considerably lagging behind the country's average levels.

GDP per capita in 2014 amounted to 6611 leva, which is more than 40% lower

than the country average.

20



Demographic Trends and Youth Unemployment in the

Zajecar region

According to the latest statistics for the region of Zajecar, the number of

inhabitants in it is 111 331, with the municipality of Boljevac being the last

inhabitant in the area - 11 761. For the region, this is a decrease by 1493 compared

to 2015. Thus, by number of inhabitants of area Zajecar ranks 7th in Region South

and East Serbia (the region covers a total of 9 districts).

In this area as well as in Montana there is an aging population, as the

population aged between 18 and 84 is 80% of the population and the youngsters

aged between 15 and 29 are 16,606 or only 14%.

For 2016, 2870 people

emigrated from Southern and

Eastern Serbia, with almost 63%

of these emigrants (1814 people)

forming the Zajecar region. The

youngsters from this region as

well as those from neighboring

Sumadija and Western Serbia

emigrate mainly to the Belgrade

region with positive mechanical

growth is the South Bachka

district.

By level of economic development, the Zajecar region is one of the last

places in the country with low contribution to GDP, low numbers of employees and

low wage income. The aging population leads to a large number of unemployed

21



people - over 68,000 people. The active population included in the labor market is

only 51 506 people. By age distribution, the largest group of unemployed is those

aged between 30 and 54 (59%), most of whom are women.

Looking at average wage levels for the country as well as for the Belgrade

region, we notice that there are significant unfavorable differences between the

country's average levels, those in the developed regions around the capital and

smaller areas and municipalities such as the Zajecar region and the Boljevac

Municipality. The average salary for the country in the first half of 2017 is 67 857

RSD (1 112.86 leva), for the Belgrade region - 84 054 RSD (1 378.50 leva), the

Zajecar region - 53 857 RSD (883.26 leva), Municipality of Boljevac - 53860 RSD

(883,35 leva).

22



General characteristics of young people in the region

The statistics of the two

countries show that the young

population aged 15-29 will

progressively decrease, with the

projected reduction of over 23% by

2020. In particular, this will affect age

groups 20-24 and 25-29 years.

Over 55% of the young

population live in cities. There is a

tendency for the largest territorial

movement in the city-city direction.

Significantly smaller and relative

share are the migration flows in the

direction of village-village. The

number of people who have moved

from the villages in the cities is bigger

than in the opposite direction "town -

village".

Following the sharp decline in

emigration tendencies in the period

2002-2006, in recent years there has

been a new increase in the desire for

emigration among young people,

especially in the age of 20-29 years.

It is alarming that every eight young

person has specific intentions in the

foreseeable future to emigrate. More

than a quarter of young people in the

country are clearly interested in

temporary labor migration abroad. It

is positive that the educational

structure of the emigration flow is

definitely changing - it is dominated

by young people with an average

(11.9%) and lower education

(10.2%). The superintendents are

increasingly seeing chances and

prospects for a good financial

situation in the country, and only

7,5% declare willingness to go

abroad. The share of young people

who work part-time (56.85) or

unemployed (48.1%) is the largest.

Although there is an increasing

number of young people in the region

who complete secondary education, in

most cases young people have no

practical and professional experience

in the postgraduate specialty after

completing their education and are

difficult to enter the labor market.

23



Efforts need to be made to

move young people on the labor

market smoothly to the labor market

by extending traineeships and

practices in the real sector. It is also

beneficial to keep young people in the

region to invest by employers in the

training and qualification of young

employees.

Assessing the possibilities of

using state unemployment benefits or

working and pay conditions in major

cities and European Union countries,

young people are disillusioned with

the region's pay and prefer either not

to work or seek outside work.

Young people are becoming a

potential resource of employment in

the gray economy. Insufficient

professional skills and practices in a

real environment, and the inability of

professional choice of learners from

the earliest age force some of the

school graduates to start the "first

possible job", most often in the field

of services, trade and service, without

requiring conditions labor.

For many young people,

owning and developing their own

private business is a sign of initiative

and entrepreneurial spirit. But despite

the great desire of young people and

the various projects and programs for

developing entrepreneurial skills and

financing the innovation activity, the

start-up of the business, the still

similarly implemented similar

business ventures are few.

One age group that is not

included in the definition of young

people defined in the statistics and

support programs is the population

aged 29-35. Unfortunately, these are

people who have not yet been able to

work professionally and look for

better opportunities in their current

education and job opportunities. But

these people are excluded from most

programs and initiatives for

24



education, employment and funding

of initial business initiatives. On the

other hand, they lack sufficient

experience and skills to take

advantage of other opportunities for

already established professionals or

acting firms. These are also people

who in most cases have families and

additional costs associated with them.

These even more burdensome

conditions further encourage many

people between the ages of 29 and 35

to seek employment or even

temporary employment in larger cities

and Western European countries.

25



OVERVIEW OF THE BUSINESS

ENVIRONMENTS AND TRENDS IN

THE REGION

26



The main economic spheres in

which the local population can find

work are agriculture, mining and

manufacturing, production of

vehicles, food production, computer

and communication equipment,

electronics and optical products, as

well as in the service sector.

The whole region is

characterized by low economic and

investment activity and lack of active

investor interest. There are two main

groups of companies active in the

region - micro-companies and large

industrial companies. Both groups

represent an unattractive opportunity

for work and professional

development of young people. Micro-

companies that do not have

technological progress, innovation

and competitiveness, and have a

lesser contribution to increasing

employment. For its part, large

industrial firms are technologically

obsolete, require highly specialized

expertise and do not offer many

opportunities for career growth.

The established business

structure in the region is slowing

down the development of the tertiary

service sector (e.g. trade, transport,

tourism, food, etc.) as well as the

knowledge and innovation sector.

These facts are demonstrated by the

lack of innovative elements used by

current entrepreneurs, which is a

27



factor in the loss of interest in looking

for a job in the field by more advanced

and ambitious young people.

As early as 2013, Montana

became the area with the most

unfavorable ratio between the

accumulated PES and the local

population. In 2014, a TIP of nearly 4

million euro has been reported, which

means that, relative to the

population, their value is 247.5 euro /

person, which is over 12 times lower

than the country average. Montana is

also one of the three areas (together

with Vidin and Pernik) where the costs

of the enterprises for acquiring

tangible fixed assets in 2014 amount

to less than BGN 1,000 per capita of

the average annual population at an

average of 2786 BGN per person for

the country. Unlike other less

developed areas like neighboring

Vidin and Lovech municipalities in

Montana region fail to surpass the

average for the country pace of

absorption of European funds.

Currently, there are no

statistics on foreign direct investment

in the Zajecar region, but according to

the total investments of the

companies in FTA, facilities, buildings

and equipment it is evident that they

are extremely low compared to the

ones in the country - only 0.47% of

the total investments in the country.

Investments are also significantly

lower than those in the leading

economic area in the country - the

Belgrade region (only 1.17% of the

investments in this area). The bulk of

these investments are in the

manufacturing sector, followed by the

mining industry, and the lowest in

tourist services, and in particular in

accommodation and catering. More

and more state and European

programs identify the region's

problems with economic development

and attracting investment, and seek

to stimulate business investment

attraction by offering different

preferences to companies wanting to

grow their business there. In addition,

following the planned municipal plans

and regional development strategies

should attract such investments, but

to this end also the active

involvement of young people to

represent a competent and desirable

workforce is necessary.

OVERVIEW OF IMPLEMENTED

POLICIES AND STRATEGIES FOR

STIMULATING EMPLOYMENT AND

BUSINESS DEVELOPMENT IN THE

REGION

The growing problem of youth

unemployment and the lack of staff

with the necessary practical education

and professional qualifications have

led national and regional government

agencies, administrations and others

to seek and implement different

policies and programs to stimulate

employment and business

development in the region.

In the Montana region, there

are various programs funded by the

European Union and the state budget

to stimulate the employment of

certain age groups, long-term

unemployed, people without

qualifications or others. Similar

programs are:

• Youth Employment Scheme -

mainly aimed at helping

companies to open new jobs for

young people

• National program "Activation of

inactive persons" - Activation

and inclusion of the inactive in

the labor market, incl.

discouraged and unemployed

by means of individual and

group application of tools and

services to attract and motivate

them to register with the Labor

Bureaux Directorates and

encourage their inclusion in

training and / or employment.

• Melpomena National Program -

Increasing employment by

opening jobs to support the

theater in Bulgaria.

• The Career Start Program - The

main goal of the program is to

provide opportunities for

employment for unemployed

youths who have completed

secondary or tertiary education

in order to facilitate the

transition between education

and employment.

In Serbia, there are several

active labor market incentives

programs created directly to increase

jobs for young people (up to 30 years

of age). The first of these is the "First

chance" program to support the

employment of unemployed youth,

created as a response to the growing

youth unemployment. This program

contains two components:

professional support for young people

and employment. Another measure

created directly to support youth

employment is a subsidy for

mandatory contributions. Employers

who hire young people up to the age

of 30 are entitled to a financial grant

from this measure.

We should also mention three

internationally funded projects that

support the mobilization of young

people on the labor market. These

include: Inclusion of vulnerable

groups in the labor market; Promoting

employment among young people

and Employment and migration of

young people. These projects are

being implemented in cooperation

with the National Employment

Service, UN agencies and donor

countries governments. The results of

all projects are regionally funded and

target young people with fewer

opportunities. The implementation of

the projects is supported by the

regional branches of the National

Employment Service in Belgrade, Novi

Sad, Vranya, Nis and Yagodina. The

key activities of the projects are:

provision of training, preparation of

young people for employment

(predominant activity),

administration of subsidies for self-

employment and subsidies for

unemployed young people with

disabilities.

In addition to the projects

providing direct funding for

employment and business

development in both countries,

different national, regional and

municipal strategies aimed at

developing business, the economic

and social environment, and young

people have been adopted. In

general, all national, regional and

municipal strategies in Bulgaria are

aimed at ensuring the sustainable

European development of young

people. The aim is to increase

31



economic activity, improve

competitiveness and economic

activity, improve the quality of human

capital and make fuller use of labor

potential.

The political framework in

Serbia is determined by the National

Employment Strategy for 2011-2020.

This strategy is geared towards

meeting the priorities set by Serbia's

economic development plan for 2020

to stimulate investment growth and

export-oriented economic sectors. On

the other hand, the employment

policies defined by the new Serbian

employment strategy are closely

linked to the EU 2020 Strategy in

order to coordinate the national

strategic objectives for employment

and growth with the EU framework. In

particular, the priorities are aimed at

increasing the employment of

vulnerable groups, including young

people, as well as increasing

employment in less developed

regions, improving human capital

through the promotion of further

education and training programs and

the implementation of active labor

market.

32



OVERVIEW OF ENTREPRENEURSHIP

EDUCATION AND SKILLS

DEVELOPMENT IN THE REGION

33



The ability to receive adequate education that meets both the interests of

young people and the needs of companies in the region helps young people to

choose their professional path. Unfortunately, there are no existing universities in

the region, but young people have a wide choice of vocational high schools that

direct them to a particular craft. Different funds and programs also support the

development of young people's professional qualifications and offer significant job

searching support.

One of the main issues affecting the education system in both countries is

its emphasis on memorizing critical thinking, problem solving, and teamwork. As

a result, there is little correlation between the education that young people receive

and the requirements of the labor market. Old-fashioned professional profiles and

the lack of sufficient training and skills development leave young graduates ill-

prepared for the labor market. Lack of career guidance and career guidance makes

34



young people less able to take active career development decisions or to think

creatively about employment opportunities. After graduation, many young people

find that they lack even basic information on how to compete in the labor market.

In order to overcome this “gap”, non-formal education programs and

organizations strive to increase the employability of young people by offering

retraining programs and out-of-class professional development. The civil sector is

particularly active in this regard, offering a variety of programs aimed at

stimulating entrepreneurship as well as offering career guidance. State institutions

are also making efforts in the field of prequalification.

In the education system of Montana region, the general education,

supplemented by the specialized schools (language, natural-mathematical, etc.)

Vocational schools keep their number - 12 vocational high schools. The vocational

schools are located in 9 municipalities, with the highest number being in the towns

of Montana and Lom. In addition to the education offered by the schools and high

schools in the area, a Career Orientation Center project is being set up which aims

to establish a network of centers in the region to provide information on the profiles

of education, professions and specialties in secondary and tertiary schools and

universities; to offer advice to students on the choice of education and careers; as

well as linking schools and the labor market.

Different funds and programs funded by the European Union to stimulate

and organize trainings and initiatives to stimulate the population to improve their

qualifications and to find work are also functioning. Popular programs are:

"Improving the employability of unemployed people through increased

professional and key competences"; "Chance of Success"; New horizons;

"Qualitative labor force - stable labor market" and others.

35



The schools in Zajecar region

enable young people to complete basic

or vocational education in certain

technological areas. Most young people

prefer technical vocational education,

probably because of the possibility of

finding jobs in industrial and

manufacturing companies in the area

and in the nearby bigger cities. The only

educational institution offering

opportunities for higher education is the

Faculty of Management at Belgrade

University, Megadrend, in Zajecar. Like

the Montana region, young people in the Zajecar region can benefit from a variety

of vocational and re-training programs organized by the Ministry of Youth and

Sports, the UN and private organizations. Such a program is, for example, "Young

people are the law", while various organizations working with young people - the

National Youth Council of Serbia; National Association of Youth Practitioners; Youth

services; German Society for International Cooperation in Serbia; Young talents

fund and others.

36



PRESENTATION OF EU POLICIES AND

BEST PRACTICES IN THE

DEVELOPMENT OF YOUTH

ENTREPRENEURSHIP

37



To develop policies and programs aimed at stimulating and supporting youth

entrepreneurship, regional and local authorities as well as non-governmental

organizations in the region can follow examples and practices from projects and

initiatives at both pan-European and other European Union countries.

Policies and best practices at European level

At European level, most initiatives to promote young people's creativity and

to promote entrepreneurship come from education and training policies. The

Entrepreneurship Development Plan, adopted in 2004, provides a strategic

framework for entrepreneurship enhancing and contains measures to promote

entrepreneurial thinking and to encourage young people to develop in the field of

entrepreneurship. Then, in March 2005, the promotion of youth entrepreneurship

became a key element of the European Youth Pact and in 2006 the Commission

launched the Lisbon Agenda to promote entrepreneurial mindsets through

education and training with a more active role in entrepreneurial culture in

education European Commission, 2006).

To recognize and overcome the barriers faced by entrepreneurs, the Small

Business Act was adopted in 2008. The law sets out principles to guide Member

States in implementing policies that could support start-ups for both young and

old entrepreneurs. As part of the implementation of the Small Business Act, many

Member States introduce entrepreneurship programs in curricula to encourage

entrepreneurial skills and attitudes among young people to make them more aware

of the possibility of starting their own business. The Council Resolution of

November 2009 on the framework for European cooperation in the youth field also

discusses the support of young people to enter the labor market, both as

employers and as employees. Support for youth entrepreneurship through

education, finance and mentoring is proposed to the Member States.

38



In March 2010, recognition of entrepreneurship and self-employment was

declared key to achieving smart, sustainable and inclusive growth as part of the

Europe 2020 strategy. In this respect, the inclusion of innovation and

entrepreneurship in education has been recognized as a way of stimulating the

relatively low level of entrepreneurship in the EU. The Europe 2020 strategy called

for a more favorable environment for entrepreneurship and for promoting

entrepreneurial culture and thinking. In addition, special efforts are being made

through the European Social Fund (ESF) to help women entrepreneurs,

disadvantaged groups and people with disabilities who are interested in setting up

their own businesses.

The importance of youth entrepreneurship is again highlighted in the

Commission's 2012 Communication Towards a job-rich recovery through the

Employment Package in response to the youth unemployment crisis (European

Commission, 2012). The Commission has emphasized the importance of promoting

the entrepreneurial spirit and the need for easier access for young people to start-

up funding and services to enable them to turn their creativity into a business. As

a result of the employment package, again in 2012, the Commission launched the

Youth Employment Package, which includes the Youth Guarantee. Actions and

39



interventions under the Youth Guarantee include the provision of a continuous

entrepreneurship mentoring for young people, which can be supported by the ESF.

The EU Youth Guarantee Initiative was formally adopted by the EU Council

of Ministers in April 2013 and endorsed by the European Council in June that year.

As stated in the official note (14/571) published by the European Commission

under the Youth Guarantee, Member States should ensure that young people under

the age of 25 can, within four months of leaving school or losing their job, to find

work suitable for their education, skills and experience, or to acquire the education,

skills and experience required to find work in the future through internship,

practice or continuing education. "Youth Guarantee measures may range from

providing training to help young people by enrolling in further education or

providing specific internships, practices or jobs. This initiative is funded by the ESF

with additional 6 billion euros initiative for youth employment.

One of the specific objectives of the Youth Guarantee is to promote youth

entrepreneurship and to provide greater accessibility to start-up support services.

The Council of the EU Recommendation states that "promoting entrepreneurship,

providing early support and microfinance services, and setting up schemes to

make unemployment benefits into start-up grants will play an important role for

40



young people." In particular, under Recommendation 19, the Council states that

the Youth Guarantee must "provide more initial support services and raise

awareness of the chances and prospects of self-employment, including through

closer cooperation between employment services, and funding funds (micro).

In 2013, the European Commission published its Communication on the

Entrepreneurship Action Plan 2020 (European Commission, 2013). The document

proposes decisive action to unlock European entrepreneurial potential and remove

existing obstacles to entrepreneurship. These actions are grouped under three

pillars of support: education and training; creating an environment in which

entrepreneurs can thrive; and developing role models and reaching specific groups

that cannot exploit their full entrepreneurial potential. Again in 2013, with the

Social Investment Package, the Commission emphasizes the need to prioritize

investment to enable young people and women to make a full contribution to the

economy and society. This can happen through the social economy and social

entrepreneurship. Finally, and in the same direction as the Entrepreneurship Action

Plan 2020, the Commission proposes Youth Entrepreneurship Strategies (YES)

aimed at increasing the number of young entrepreneurs in Europe. The project,

funded by the European Regional Development Fund, focuses on new methods of

reviewing policies relating to youth entrepreneurship and the exchange of good

practice between regions and Member States. Likewise, Erasmus for Young

Entrepreneurs (EYE) is an EU exchange program that gives ambitious

entrepreneurs the opportunity to learn from other entrepreneurs in other Member

States.

41



Policies and best practices from countries in the European

Union

Germany

Germany is a good example of a model for financial support for young

entrepreneurs. The model is implemented in two national "Future Aids" projects

(Überbrückungsgeld) and "Start-up Subsidies".

" Future Aids " is a program for financial support for new entrepreneurial

ideas. Candidates who have the right to compete for the funds under this program

are unemployed for at least four weeks at the time of application and have

developed a quality business plan approved by the regional Chambers of

Commerce. Financial support lasts for six months. It covers statutory taxes and

contributions as well as the wage costs of the unemployed. Once the business plan

has been approved, the participants receive a subsidy (equal to that granted to

unemployed persons) for six months, plus additional benefits in the form of a 68%

contribution to the tax and contribution costs during that period.

42



"Start-up Subsidies" is a form of financial support for entrepreneurs with

new business ideas. The eligibility condition is a positive assessment of the

business plan and a requirement for regular payment of mandatory pension and

health insurance. Funding is provided within the program period, while

entrepreneurs' income is under 25,000 euros within this period. The application

may be renewed every three years. After approval of the business plan,

participants in the program receive a monthly allowance of 600 euros in the first

year. The second and third year, participants receive between 360 and 240 euros

per month. Payments are suspended once the entrepreneur has earned € 25,000.

In 2016 a new subsidy program called "Gründungszuschuss", which

combines the two subsidy programs, was introduced. This integrated program pays

entrepreneurs the minimum wage (otherwise paid by the unemployed) plus € 300

per month for social contributions for a nine-month period. After this period, the

payment of EUR 300 may be extended by six months if business develops and

becomes the main source of income for entrepreneurs (based on a special

commission's assessment).

A Business Incubator "Start-up Garage" was created in Hamburg to support

young people in the creative industries. The Incubator provides many forms of

financial and non-financial support to entrepreneurs. Candidates must be

unemployed young people up to 35 years of age. The support program lasts up to

six months and includes free work space for up to 45 young entrepreneurs.

Entrepreneurial ideas are supported in the following areas: music, movies, design,

television, architecture, advertising and software development and video games.

Entrepreneurs are applying with their business plans and are eligible to receive a

maximum of € 5,000 start-up capital. The sum of 500 to 5,000 euros is offered at

low interest rates. Loans are granted not only on the basis of business plan criteria

but also on the basis of project innovation. In addition to the financial resources

and the free use of space for a certain period of time, the main component of this

support is professional expert advice, training and weekly seminars on various

topics. In addition to free basic consulting for entrepreneurs, additional training is

43



available at a price of 10 euros per hour for up to 12 weeks and is available in

areas such as advertising and distribution, accounting, business administration,

and more. This development center is well connected to the business community

through a network of professionals who provide education, organize seminars and

trainings. It is also linked to the network of incubators in other German cities.

Statistics show that almost 90% of the selected candidates manage to run their

business projects and 80% manage to keep their jobs after six months, which is

the duration of the support.

Finland

In 2004, the Finnish Ministry of Education launched a comprehensive

entrepreneurship education policy - Yrittäjyyskasvatus. This policy has been

revised in 2009 and extended until 2015. Entrepreneurship training is strongly

supported by the Finnish Ministry of Education, which encourages Finnish schools

to put entrepreneurship education in the curriculum. In addition, entrepreneurship

education is seen as a national program, although it was envisaged that after 2015

the responsibility for entrepreneurship education would be transferred to local and

regional authorities.

The most important goals of entrepreneurship education in Finland are:

• creating entrepreneurial culture and climate conducive to

entrepreneurship among young people participating in the education

system;

• encourage entrepreneurial skills among young people, understood in a

broad sense, that relate to establishment and management of own

enterprises or to pro-active behavior in acting company. In this sense,

particular attention is paid to entrepreneurship as a realistic career

44



option and to raising the skills of those who want to set up their own

businesses.

Entrepreneurship training

extends to different levels of

education - from primary and

secondary general education to

vocational education, technical

education and universities. Different

goals are assigned to different

educational levels. The foundation of

the Finnish Entrepreneurship

Education System was originally built

during primary education (6-12-year-

old students). The main goals at this

stage are to understand entrepreneurship as a common concept and to encourage

their willingness to take responsibility, strengthen self-esteem of students and

encouraged to interact successfully with others, including in a team.

In secondary education (12-16 years), the main objectives of the Finnish

Entrepreneurship Education System are to strengthen pupils' ability to participate

and influence society at different points of view (political, economic, cultural, etc.)

in a broad perspective (local, national, European and global). At this stage, the

focus is on understanding the value of work, the importance of self-motivation,

autonomy and the role that entrepreneurship can play in society.

Entrepreneurial education has a more specific and targeted approach during

vocational education (16-19 years). At this stage, students are encouraged to

develop ideas related to companies, emphasizing collaboration with external

businesses and other stakeholders and networks. All vocational education and

training programs in Finland include at least five credits (study weeks) in

entrepreneurship and business studies. Finally, at university and polytechnic level,

45



entrepreneurship education is primarily intended to support and direct those

students who have idea of setting up their own enterprise based on the experience

gained during their university or polytechnic education.

The main methodology used to support entrepreneurship education is based

on "learning by doing", focusing on activity based learning, problem solving, and

teamwork. A good example of this approach is the Me & MyCity project targeting

Finnish 6th-grade children (12-13 years).

Taking into account all existing levels of education, Finnish students receive

an average of 12 years of entrepreneurship education as part of the compulsory

education system and between three and seven additional years of non-

compulsory education.

An additional important activity to support entrepreneurship education in

Finland is the so-called YES initiative. YES is an entrepreneurial education service

for teachers by providing training on entrepreneurship related to teacher

education, especially for developing entrepreneurship in schools and setting up

networks for school business. The service organizes events, seminars and training

programs at both regional and national level and participates in the development

of curricula and strategies. YES services were first established in Finland in 2001

and have since become a broad entrepreneurial network. YES was developed with

the help of ESF funds and local partners, and the initial project was mainly funded

and developed in cooperation with the Finnish National Education Board. The

services are available in 17 regions and settlements across the country. YES

partners include regional development centers, entrepreneurial organizations and

other organizations.

It is important to emphasize that entrepreneurship education is

implemented on a networked basis with the assistance of public authorities, mainly

the Finnish Ministry of Education and the Finnish National Education Council and

other public and private stakeholders such as local universities, educational

46



institutes, the Federation the Finnish Enterprises and the Finnish Young

Entrepreneurs Association.

The latter two organizations are extremely active in supporting Finnish

Entrepreneurship Education and are organizing various initiatives related to it,

such as the Young Entrepreneur of the Year contest to promote the image of

entrepreneurs and entrepreneurship among young people.

"Young Entrepreneur of the Year" aims to meet several important goals. On

the one hand, the competition aims to highlight the good work of some selected

young Finnish entrepreneurs and to disseminate information to them among

relevant stakeholders, including other entrepreneurs, media, potential investors

and the general public. On the other hand, the competition aims to inspire other

young people to become entrepreneurs, promote an open social debate on youth

entrepreneurship and challenge the notion that entrepreneurship is more suitable

for adults and professionals with long working experience.

Each regional office of the Federation of

Finnish Enterprises and the Federation of

Young Entrepreneurs selects a local

representative to take part in the annual

competition. This regional selection requires

the support of a minimum number of regional

entrepreneurs to be officially nominated.

There are several rules for participating in the national competition. First,

only entrepreneurs under the age of 35 can be nominated. The company concerned

must have been active on the market for at least three years and have appointed

at least one other person (in addition to the company's owner (s)). Also, the firm

must have a sound financial position with positive real prospects for the future.

47



There are a number of basic elements to be considered by the jury when

selecting the final winner of the competition. First, the winner must have proven

success in business as well as a strong entrepreneurial attitude. Second, the jury

highly appreciates young entrepreneurs who have a special ability to visualize and

exploit the opportunities of an enterprise in a new and innovative way.

The winner is announced at the "Get Together" event, which is held annually

by the Finnish Young Entrepreneurs Federation. The winner receives a prize of

1,500 euros, although the benefits are much greater due to the publicity and

coverage provided in the main Finnish media.

Austria

Austria is a good example of a country that encourages the development of

entrepreneurship among young people through special programs. The programs

systematically develop awareness of the importance of entrepreneurship in

children in the early stages of education.

The School and Farm in School Program (2014-2015) includes organized

visits of children and young people to farms and farmers in primary and secondary

schools. In both cases, farmers appear to be authentic ambassadors presenting

the benefits and importance of agriculture. The program aims to educate young

people on the importance of agriculture and the opportunities it provides. The

program is supported by creating newsletters, newsletters, personalized for young

audiences, print advertising, fairs and exhibitions, as well as a Facebook page with

content suitable for young audiences. Training is provided by the Institute for Rural

Training through a Task Force responsible for implementing the program, which

facilitates cooperation with relevant partners and stakeholders to ensure that the

project is successful.

48



The Young Farmers - A New Power of the Country Program was introduced

in 2014 by the Young Farmers Association in Upper Austria. This program includes

the creation of youth groups and their participation in seminars and training

sessions to raise awareness of the activities and costs of food production and the

production of other agricultural products. The project is promoted by a dedicated

website, social media campaigns, leaflets and brochures, articles in professional

magazines, etc.

A new Rural development program up to 2020 aims to promote rural

development. The program started in 2014 and serves to disseminate information.

Farmers' statements are used to communicate the relevant messages. They

explain the positive impact of the program in the various regions of Austria by

encouraging the development of entrepreneurial enterprises in agriculture. The

project includes media campaigns presenting real practical examples of successful

agricultural entrepreneurs. It provides a tour of the region and meetings with local

authorities. The program concerns the general public through special events

organized throughout Austria. Dissemination of information is carried out by a

dedicated website and social media to get the message from young people.

49



Netherlands

Dutch politicians' focus on supporting entrepreneurship among young

people focuses mainly on the development of entrepreneurial education among

young people and students of all ages.

In order to promote

entrepreneurship and the

convergence of education and

business, in 2008 the government

launched an Education and

Entrepreneurship Program

(Actieprogramma Onderwijs en

Ondernemen). The aim of the

program is to improve the

entrepreneurial spirit and attitudes among students by creating entrepreneurial

skills and knowledge through the curriculum, so that entrepreneurship gains a

permanent position in the Dutch education system. The program includes seven

different schemes:

• Entrepreneurship Network in Education: The aim of the Enterprise

Education Network is to bring education and business closer together

and strengthen their cooperation. With this scheme, the Dutch

government invests in regional and / or sectoral networks. Within

these networks, educational institutions cooperate with business and

social organizations to stimulate entrepreneurial behavior not only

among students, but also among teachers and school leadership.

50



• Establish entrepreneurship centers that focus on raising awareness of

entrepreneurship by offering a wide range of (extra-curricular)

activities (for example, inspiring lectures, briefings, business weeks).

In this respect, they develop in-depth knowledge of skills and

attitudes in the field of entrepreneurship. On the other hand,

entrepreneurship centers continue to help students create or expand

their business by offering various activities such as mentoring,

incubators and networking events.

• Providing training to entrepreneurship teachers: Teacher training at

all levels of the Dutch education system is being developed and

offered, as the success of entrepreneurial education is largely

dependent on entrepreneurs. In 2009, the Stichting Leerplan

Ontwikkeling began developing an entrepreneurship education

program for teachers and managers in the field of education.

• Certification of entrepreneurship education: As part of the Program,

a certificate for vocational education in entrepreneurship has been

developed. The Entrepreneurship Module, eligible for certification,

describes the type of entrepreneurship that is needed to start and

manage a business. The MP is a package of skills, knowledge and

experience for a basic education program for students in vocational

education. The MJ includes seven key competences (including

individual responsibility, innovative capabilities, effective work, social

skills and commercial thinking). In addition, the MO offers courses for

business plan preparation and the initial steps needed to start a

business and maintain and develop the business after its launch. The

MJ is part of the national qualification and can be used in all Vocational

Education Institutions in all sectors. The MP was introduced in the

school year 2011-12. Institutions offer and recognize MJ as an

51



additional plus program. In addition, a certificate for students from

the universities of applied sciences has recently been introduced.

• Entrepreneurship Scholarship Program: Higher Education Institutions

set students for an internship program in the US, Scholarship

program for entrepreneurship. This internship program was created

in cooperation with the Kaufmann Foundation and the Global

Scholarship Program. Each year, a maximum of 10 students are

selected for this apprenticeship program and they are given the

opportunity to learn more about entrepreneurial skills and gain more

knowledge about entrepreneurship. Students attended workshops at

the Harvard, Stanford and MT universities. Sloan, as well as

companies in the Silicon Valley.

• Research and Impact Assessment of Dutch Policy and Program: The

Dutch Government conducts evidence-based studies on the impact of

the program. A major measurement was carried out in 2007, followed

by a first measurement in 2010 to review the entrepreneurial

education situation in the Netherlands. A second measurement is

published in 2012. The results of this measurement show that,

compared to the previous measurements in 2007 and 2010,

entrepreneurship in education has become a permanent feature in

training organizations and the courses are being offered by an

increasing number of educational institutions.

• Creating awareness of entrepreneurship education and facilitating the

dissemination of knowledge: To raise awareness of entrepreneurship

education, the Dutch government supports national initiatives such

as Stichting Jong Ondernemen and the Business Venture Business

Awards competition for student entrepreneurs. In addition, a Global

Entrepreneurship Week in the Netherlands is organized. The Global

Entrepreneurship Week, founded by the Kaufmann Foundation, is an

52



international initiative that inspires young people to embrace

innovation, imagination and creativity by uniting students and young

entrepreneurs.

Hungary

Hungary is a good example of a country with a developed program to

support youth entrepreneurship in all sectors. Non-profit organization The

Hungarian Foundation Live Wire was established in Hungary in 1998 to promote

entrepreneurship among young people between the ages of 18 and 32. The

program is funded by Shell AG, which donates money to support the program. In

order to reduce unemployment and promote entrepreneurship, the Foundation

operates on the principle of: organizing mentoring, promoting successful young

entrepreneurs, and supporting application to financial institutions for micro-credit.

More than 15,000 young people have participated in the Foundation's

programs from the outset. The main activities of the Foundation are:

• Organizing a national network of highly qualified consultants who

provide free business consultancy services to young people during the

creation and development of their business;

• Issuing marketing guides tailored for young people without business

experience;

• Education through various training programs;

• Marketing support needed for business development and

communication with the target group;

53



• Organizing a Young Entrepreneur of the Year competition at regional

and national level, awarding attractive prizes and ensuring significant

popularity in the media;

• Services for companies applying for microcredit by banks as the last

resort for funding.

The free consulting service of the Foundation is available to all interested

young people who want to become entrepreneurs in Hungary. The advisory service

includes legal advice, business advisory services (financial, tax), market

development advice and product and service promotion, and more. The team of

consultants consists of 50-60 highly qualified lawyers, accountants and managers

who help young entrepreneurs to turn business ideas into business plans (free of

charge). The consultants are volunteers and the only form of compensation they

receive is the bonus for outstanding achievements of young entrepreneurs who

are mentors. Counselors bring young people into the business community,

entrepreneurial organizations and chambers of commerce, and often help them

identify their target market. The Foundation has produced business guides tailored

for young entrepreneurs. The manuals contain all the information they need to

start and manage their business.

The Foundation develops special educational programs for young people. A

team of experts helps young people to realistically assess their entrepreneurial

idea before registering a firm. This helps a lot in reducing costs and time for

unrealistic business ideas. Young people are taught how to prepare their business

plans and how to get the necessary capital to finance their business.

54



The Foundation holds an

annual “Young Entrepreneur of

the Year” contest to encourage

young people to develop their

business ideas. Since the

founding of the Foundation,

competitions have been

organized with about 1,500

business plans for new

companies submitted for consideration. The Committee consists of bankers,

successful entrepreneurs, as well as young people elected in previous competitions

that have set up their business and have acquired the necessary entrepreneurial

experience and therefore the competence to evaluate the new ideas of young

entrepreneurs. Numerous sponsors contribute to the award-winning prize fund

that benefits young entrepreneurs in the early stages of business (mobile phones,

computers, software, or free ad space in business editions). Valuable prizes are

also the products offered by young entrepreneurs whose entrepreneurial idea was

supported by the Foundation. Best business plan competitions are supported by

the media as a major initial impetus for market entry and connect with

entrepreneurs who have a successful experience. One of the Foundation's main

positive results is the sending of a message that young people have an alternative

and prospects for the future and that they do not have to be unemployed. In terms

of distribution, the overall beneficial effect far exceeds the launch of thousands of

companies supported by the Foundation.

55



METHODS FOR STIMULATION OF

YOUTH ENTREPRENEURSHIP, JOB

CREATION THROUGH THE

DEVELOPMENT, EXPANSION AND

GROWTH OF YOUTH-LED

ENTERPRISES

56



The listed policies, good European practices as well as the established

problems and needs of young people in the region show that youth

entrepreneurship and job creation for young people in firms created by them or in

other established firms are most effectively stimulated through measures aimed

at education and training, stimulating companies to open job positions, support

entrepreneurship and improve mentoring.

Measures for education, training and improvement of the

employability

Education, training and improvement of employability measures are aimed

at improving the employability and professional inclusion of unemployed young

people and at giving young people who have left school at an early age to obtain

a diploma for completed compulsory secondary education. These measures are

mainly expressed in:

57



Expansion of training programs for obtaining vocational education

certificates and training programs with a commitment for hiring

The objective here is to take action aimed at improving the employability,

qualification and professional integration of young unemployed.

To achieve this objective, it is recommended that public employment

services be called upon to integrate vocational training in their services through

the development of training programs and the inclusion of young people under the

age of 30 in the labor market by providing at least one of the following trainings:

• Training aimed at obtaining vocational training certificates or

certificates for completed certain vocational modules and specialties.

• Trainings involving a commitment for hiring - after passing the

training, a certain percentage of the young people involved are to be

employed in the company not later than three months on a part-time

or full-time contract with a duration of at least six months. If a young

person does not complete the training, he / she can join a company

through a contract that includes a condition for completing a

vocational training.

Development of programs through which unemployed persons who have

left the education system prematurely can obtain a diploma for completed

compulsory secondary education

The objective is to provide training to young people who have left school at

an early age and who currently have no job opportunities due to lack of necessary

education to join the labor market.

58



Many young people have dropped out of education due to the employment

opportunities offered by low-skilled sectors of low-skilled labor, and many are

currently without education or work.

In this way, and bearing in mind that employment and education are linked,

it is recommended to implement a special program and financial assistance

through which unemployed young people with low qualifications can voluntarily

resume their education.

This kind of assistance can be determined on the basis of the income of

young people and linked to the acquisition of an educational level and a

commitment to active job search or job search by public employment services at

the end of the program and in accordance with the applicable procedure.

The income of the young people will serve to determine the amount of aid

and will in no way restrict access to, or participation in, the program by potential

beneficiaries.

Upon receiving the education degree, young people wishing to access

secondary vocational education and those wishing to join the labor market will be

able to participate in job search programs.

In parallel, all actions in the field of education aimed at combating early

school leaving should be reinforced.

59



Promoting entrepreneurship and self-employment

These are measures aimed at promoting entrepreneurship and starting a

business, improving funding opportunities and protecting self-employed workers

and entrepreneurs. These measures include various forms of support and funding

for young people wishing to start their own business.

Expanding the possibilities for applying unemployment benefits

Since many young people prefer to use unemployment benefits instead of

looking for work, it is useful to apply schemes that enable young people to use

these benefits and invest them in starting their own business and investments.

In this sense, opportunities can be created to apply unemployment benefits

to encourage young people to enter into entrepreneurship in the following ways:

1. Possibility to use unemployment benefits up to 100% by making

contributions to the capital of all types of start-ups, subject to the establishment

of a relationship of indefinite nature with the company.

2. Possibility to use unemployment benefits to acquire specific consultancy,

training and information services, as well as to cover the costs of setting up a new

company.

60



Establishment of special services at the labor offices to provide advice and

assessments to the new entrepreneur

The aim is for the labor

offices to be able to consult

young people who are

unemployed and want to start

their own business. Alongside

measures to increase

capitalization capacities, it is

advisable to take initiatives to

monitor and support

entrepreneurs who have opted

for the possibility of investing

their unemployment benefits through technical assistance and training formulas to

maximize the success of their project.

Stimulating the recruitment of people with experience in creating new

youth projects

The objective is to facilitate the incorporation of experience in self-employed

youth projects. This can be achieved by encouraging young people starting a

business to hire unemployed people over the age of 45 to offer them the necessary

experience to succeed in business. Such an incentive may be provided by the

conclusion of a permanent full-time or part-time contract with a reduced share of

the social security costs for the company and total unforeseen costs of up to 100%

in the first year of the employment contract.

61



Targeting and improving the mediation of public

employment services and their co-operating

organizations

Public services must have

technological tools that allow for

greater applicability and greater

efficiency and effectiveness in

the design and implementation

of public policies.

It is recommended that measures are taken to facilitate mediation and job

search through information technology and communication. This can be achieved

through the creation of a portal with useful information for young people to offer

them tools that facilitate job search or business start-up in co-ordination with the

business.

In this way, in the same web space and with the assistance of public

institutions and social partners, it is possible to link job vacancies and young

jobseekers by ensuring that all offers comply with current legislation. The portal

may also include information on the main sources of employment for young people

who are still studying to help them choose one or another training course.

This portal should also be geared towards interoperability with the most

common information channels (social networks, blogs, forums, etc.). Also, young

people may have a personalized and up-to-date CV containing all the necessary

information for them on the portal to make it easier to link them to vacancies and

jobseekers. The portal can also have a virtual assistant to help young people learn

and optimize their job opportunities.

62



Stimulating job opening and employment

In order to stimulate job creation and employment, it is necessary to take

measures aimed at enabling young people to enter the labor market or to get their

first professional experience.

Stimulating part-time employment and providing vocational training

The objective is to stimulate employment while enabling young people to

improve their job opportunities by combining training and professional experience.

Measures include encouraging part-time employment with binding vocational

training, which allows unemployed people to gain professional qualifications

related to the labor market. In this way, unemployed youth can receive both

temporary employment and applicable vocational training. The offered training

may be either accredited or through courses at a firm or training institution, as

well as foreign language training or information and communication technology

training.

63



First job

The aim is to implement

measures to encourage and help

young people find their first job. Such

a measure is to support companies

that hire young people without

previous experience, and these

companies may receive various

financial incentives - reducing the

rate of social security for these employees, receiving subsidies to pay these

employees for a certain period of time, and others. The amount of subsidies and

reduced taxes may also vary depending on the profile of the employee - women,

disadvantaged young people and others.

64



FORMULATION OF LOCAL YOUTH

ENTREPRENEURSHIP STRATEGY

65



Entrepreneurship can play an important role in supporting job creation and

inclusion in the labor market. This can be achieved through different types of

programs and policies. However, practice shows that there are no quick solutions

to ensure the integration of all young people into the labor market. Although some

countries are doing better than others, all countries face pressure and challenges

to help their young population. Economic growth and job creation at the

macroeconomic level are an essential part of the solution, but will not guarantee

the active inclusion of young people in the labor market.

Recognizing that

entrepreneurs face multiple

barriers, the European

Commission has developed

and adopted the Small

Business Act to help small

businesses prosper and grow.

The law outlines 10 principles

that guide the development

and implementation of policies

at both EU and national level, which can greatly contribute to helping newly created

entrepreneurs both for young and old entrepreneurs. Many local and national

governments in the EU Member States have already taken measures to improve

the start-up business environment by simplifying administrative procedures and

regulations, especially in regards to the start-up and registration of enterprises.

Measures such as these are a positive step forward and governments and regional

and local institutions should continue their efforts to reduce the administrative

burden for all newly established businesses.

In addition to the Small Business Act recommendations and the actions at

national level to achieve targeted results tailored to the specific economic

66



development of individual regions, it is advisable to create and adopt specific local

strategies that provide for measures to stimulate and support youth

entrepreneurship. Depending on the specificities of the region, these strategies

may include different sets of measures, among which:

Developing entrepreneurial skills among young people

Entrepreneurial skills programs aim to tackle obstacles related to lack of

entrepreneurial knowledge, skills and attitudes, as well as lack of experience in

work and entrepreneurship. Such programs should enrich young people with skills

and competences such as opportunity recognition, business planning and pilot

business development, including soft skills such as sense of initiative, creativity,

autonomy and teamwork. These skills and competences will be beneficial to their

own (future) business or employee work while helping young people become more

aware of self-employment as a career opportunity.

Entrepreneurship skills programs are often included in the education

system; with their goals varying for different age groups. In primary education,

the goal is to raise awareness of entrepreneurship as a career option and to

develop a set of knowledge, skills and attitudes that will contribute to

entrepreneurial behavior. Often this is done by inviting local entrepreneurs to visit

the classroom to talk with students about business management and other

programs take students to local businesses to spend the day watching and learning

about the day-to-day business of a small company.

In secondary education, entrepreneurship education should include a

greater emphasis on providing specific technical skills using macro firms and

activities related to active learning and real-life situations. For example, students

need to learn about business planning and access to start-up funding by creating

simulation or real business ventures. This is even more important at the university

67



level, where it is important for students to acquire basic skills to start and manage

business, as well as to learn about the value of networks. Traditional approaches

at this level are to set up entrepreneurial schools in universities or integrate

entrepreneurship into traditional training. There is a growing tendency to adopt

multidisciplinary approaches such as Sheffield University's "Make It Happen"

program. It is a multidisciplinary module that teaches in business,

entrepreneurship and innovation through online classes, networking events and

group startups.

It is also important to consider the role of entrepreneurship education in

professional training, including studying how professional schools (universities)

interact with industry. Current entrepreneurship training in vocational training

emphasizes formal business plans, and although this is important, the focus should

be on business development and ensuring that students receive real-world

knowledge. Capacity building to stimulate entrepreneurial behavior in professional

programs will require significant changes in the way programs are delivered.

Within the current system two approaches can be used. The first requires a new,

more radical approach that creates a separate school for managers and

entrepreneurship that is linked but is located outside of the professional schools.

This would provide a targeted development of entrepreneurial skills that can be

applied simultaneously with the professional skills students have learned or studied

at the same time. Secondly, a more evolutionary approach could be applied to

provide more opportunities for entrepreneurship in curricula, to create new teacher

guides and training, to develop new forms of evaluation and accreditation, and to

include a more effective engagement with entrepreneurs.

68



Entrepreneurial skills can

also evolve beyond the education

system. Authorities can run

programs with community and

business organizations to get

students out of school and

introduce them into the business.

These programs usually provide

students with a first-hand look at

the day-to-day work of small

companies. As an alternative,

entrepreneurship mentoring programs, such as the Erasmus for Young

Entrepreneurs Program, could be adopted to help new entrepreneurs acquire the

skills to manage small businesses by interacting with other entrepreneurs.

69



Providing information, advice, training and mentoring

Young people who want to

start a business need "soft" support,

such as information, advice,

mentoring and counseling, to help

them overcome their gaps in

education. This is especially true for

young entrepreneurs who not only

have no self-employment experience

but also have no experience in the

labor market. Business support

during and after start with “soft” support is important because it complements

what students have learned about entrepreneurship at school and helps fill gaps

that remain unaddressed by the school system.

The first approach to "soft" support is the dissemination of information. This

can be achieved through the Internet, state institutions and social networks of

young people or by more experienced mentors. Although it is important, the

provision of information should only be considered as the first step that can be

complemented by basic online training or consultation. For example, the UK

government launched the Web Services for Growth and Enhancement Services in

November 2011. This website provides plenty of information and tips on starting

a small business, including information on available financial support and other

support programs. It also includes tips for different elements of business

management and ways to find business tools to help entrepreneurs find tools

tailored to their specific needs.

70



Counseling and advising are another way to promote entrepreneurship

among young people. For example, the Industrial and Commercial Chamber in

Potsdam has a specific bureau for start-up services. The Bureau provides

consultancy and brokerage services to ensure successful start-up and job creation.

The Nachfolge-Navigator program (Takeover Navigator) also supports those

transferring businesses and young entrepreneurs who buy them to use consultancy

and training measures with up to 70% reduction of their associated costs. Such

programs usually offer basic training that provides common business skills, but

some also offer specialized training and can be combined with financial support.

Training and mentoring can also be valuable tools that can provide young people

with skills to help them overcome the lack of experience. An example is the

European Commission's Erasmus for Young Entrepreneurs program, which

provides training and mentoring to young entrepreneurs at work through exchange

program where young entrepreneurs who start or run new businesses can travel

abroad for a period up to six months to learn from more experienced

entrepreneurs. The program not only provides practical experience but also

improves the business network of young entrepreneurs.

71



Providing financial support

The lack of initial capital and

difficulties in obtaining funding from

private creditors are often identified

as the most significant barrier to

business start-ups for entrepreneurs

and a particularly serious problem

for young people. Approximately half

of the start-ups require access to

foreign capital, besides what can be

achieved by following the easiest

ways to raise capital - the

entrepreneur's own savings, if any,

and then the often-quoted triad ”Family, friends and well-wishers". In some types

of business, this capital is required for investments in machinery and equipment,

such as vehicles and computers, or for the renovation of premises. In other cases,

it is necessary to buy shares and cover the cash flow. Attracting equity is

impossible for a small start-up firm. In terms of loans, young disadvantaged

entrepreneurs often find it difficult to obtain loans from banks because they cannot

offer collateral or repayment security. In response, public authorities can develop

various financial programs designed to help young entrepreneurs.

One commonly used policy tool is to support young entrepreneurs by

covering their costs for a certain period of time. Examples of these approaches are

many. Some countries, such as France, have programs that provide monthly

allowances of up to € 450 to help young people start their business while other

countries provide more support. Greece has a more generous approach, providing

up to € 29,000 a year to support innovative businesses. Another example is the

72



Thurigian Elevator Pitch project in Germany, which aims to bring together young

entrepreneurs and business angels: each event leads to a number of new

cooperative relationships and deals.

Alternatively, some government programs provide funding for investment

and working capital to young entrepreneurs to help them get started. One of the

possibilities is to provide grants. Such programs usually have very strong selection

criteria to determine who has the right to get the financial support. Many of the

grants are awarded through a competition where applicants are assessed on the

basis of their business plans. An example is the DEFi jeunes program in France. A

second example is the EXIST start-up fund in Germany, which supports students

to develop their business ideas in business plans that then develop into products

and services. To cover their food costs, entrepreneurs receive a grant of 800-2500

euros per month for a maximum of 12 months. In addition, they can receive

subsidies for materials and equipment (€ 10,000 for an individual start-up

company and € 17,000 for team owned company), training funding (€ 5,000), and

if necessary a child allowance of up to € 100 per month per child. Universities can

also offer access to infrastructure.

Another possibility is to provide micro funding, which requires young

entrepreneurs to repay the loan at a lower interest rate than the market value.

There are relatively few micro funding schemes targeted specifically at young

people, but one example is Belgium's Self-employment Plan, which provides low-

interest loans for young people under the age of 30. A third option is to provide

micro funding through financial institutions by providing loan guarantees. In these

schemes, the state institution takes a certain risk on behalf of the financial

institution by covering a significant portion of the outstanding loans.

In recent years, other nontraditional funding programs for start-ups and

studies have been explored on the opportunities offered by business angels and

various forms of venture capital that broaden the scope of the financial

73



opportunities available to young entrepreneurs and are used more strongly with

private sources of funding.

74



Development of entrepreneurial infrastructure

Authorities can also support young entrepreneurs by providing support

infrastructure that can help overcome barriers related to lack of networks, skills,

office, and access to associated support. Important measures in this category

include support for young entrepreneurs and business incubators.

Youth business networks and associations are important for young

entrepreneurs as they provide opportunities for mutual learning, business contacts

and collective opportunities to present youth interests to the government and the

industry. For example, Ajujaht's Estonian business initiative, co-funded by the

European Social Fund, has launched business clubs for young people to help them

develop business ideas and enable them to develop their networks and meet with

investors. Internationally, Junior Chamber International has more than 200 000

young people aged between 18 and 40 in more than 100 countries. Each year they

organize local, regional, national and international conferences to bring together

young people to share experiences. It also provides training and recognizes the

achievements of members with an award ceremony.

Another policy tool that often shows success is the business incubator. In

addition to the initial funding, business incubators provide a place for a physical

workplace where newly created entrepreneurs unite and in most cases also provide

additional support, including coaching, mentoring, consulting and access to an

experienced network of experts. Often programs focus on providing young people

with good access to an incubator serving entrepreneurs in general, although many

universities have incubators specific to young people, their students and

graduates. An example of connecting students to existing facilities is the

Technology Center Gruenderzentrum (Technology Center and Business Incubator)

in Brandenburg, which now houses 45 companies and organizations where start-

75



ups can use an "initial package" that includes services such as tax consultancy,

advertising and banking services and office equipment. Students from the nearby

Brandenburg University of Applied Sciences are given access through the

Studentenim TGZ (Students in TGZ) program, which frees them from paying rent

in the incubator for 6-12 months. Students are selected for this support through a

business plan competition.

76



SUGGESTIONS FOR OPTIMIZING THE

REGULATORY ENVIRONMENT

77



Through strategies and policies, local authorities can take measures to

improve the regulatory environment through better governance of public

administration as well as by developing proposals for more flexible employment

contracts.

Management of the Public Administration

It is essential to adapt the functioning of public structures that manage

supply and demand for employment within the framework of the efficient use of

available resources, highlighting the need to maximize efficiency in meeting the

objectives set for these structures and administrations. Exemplary measures to

improve public service activities and services include:

• Modernizing public employment services, as well as promoting

new governance models that include flexibility, specialization,

innovation, transparency and proximity to citizens so as to better

meet their needs.

• Encourage the evaluation of employment policies by public

administrations. This impact assessment may include an analysis

of the situation in which the administration operates (ex ante

evaluation), evaluation during policy implementation (interim

evaluation) and final evaluation (ex post evaluation) to ensure

maximum efficiency and maximum social and economic return on the

investment made. In this way, it will be possible to understand

whether the planned policies and measures are always tailored to the

needs of the labor market and it will be possible to assess whether

these measures achieve the expected results.

78



• Establish an inter-authority commission to develop and

monitor the youth entrepreneurship strategy. It is

recommended to set up an inter-authority commission to ensure the

achievement of the objectives set out in the strategy and the

consistency with the proposed measures. The aim is to ensure the

inclusion of any proposals that can contribute to the consolidation and

proper development of the adopted strategy from the point of view of

the general public administration within the framework of the

necessary coordination and cooperation.

• Facilitating administration tools and organizing forums for

exchange of good practices with the public administrations of

other countries that have put in place programs, action guidelines and

measures that are consistent with those set out in the adopted

strategy.

• Coordination, from a synergistic point of view, the actions deriving

from the implementation and development of the adopted strategy

with other public administration plans that include measures that

affect entrepreneurs and the employment of young people.

• Creating conditions to achieve greater freedom of access and

exercise of professional activities, removing unjustified barriers

to the provision of professional services, which would facilitate access

and improve competition.

• Promoting employment monitoring and control policies, in

order to ensure compliance with the labor regulations and social

security of young people, it is advisory to pay particular attention to

the proper use of the scholarship system and practices in companies.

Also, to strengthen the control of possible unlawful receipt of social

security benefits or fraud.

79



• Development of employee training for employees in the

employment services to ensure that they can offer personal attention

and adapt to the diverse profiles and needs of the unemployed.

80



Improve the mediation of employment services and their

co-operating organizations

Accompanying young people in

the job search process or early business

should be a priority for all staff involved

in developing policies that favor the

inclusion of young people in the labor

market.

Personal attention, access to information and advice, such as initiating or

complementing training and education programs in the field of employment,

knowledge of labor rights and the effectiveness of public employment services can

become key elements for progress in achieving the finding or maintaining

employment.

The proposed measures for targeting and consulting young people in the

preparation and implementation of their own business initiatives include:

• Expand the information that young people receive about the

labor market conditions, which concerns both young people in

secondary education and universities, so that they know the

opportunities for employment as well as the regulatory framework of

labor relations.

• Improving information and advice and guidance to employers

on support measures and opportunities for hiring young people.

• Adopt and expand programs that facilitate and encourage the return

of young people who have started their professional career in other

81



countries and encourage their participation in entrepreneurial

projects.

• Attract and disseminate, through the public employment services, job

offers from abroad, guaranteeing the labor rights of those who

choose to work abroad.

• Encourage and expand the activities of public employment

services in the care of unemployed people who wish to start their

own business. In line with the above, it is necessary to identify

unemployed persons registered with public employment services who

have the appropriate training and experience in order to inform them

about the opportunities for access to the labor market as

entrepreneurs.

• Creation of specific programs for orientation towards the

collective self-employment of young entrepreneurs through

organizations in the social economy. These programs should

include training, administrative and bureaucratic support for start-ups

and other types of initial support.

• Encourage public employment services to identify employment

niches and business opportunities in rural areas in view of

achieving a sustainable economy. Promotion of collaboration between

representative structures of workers and rural entrepreneurs and

public administrative structures.

82



Stimulating employment and use of flexible contracts

In this line of action, a set of

measures is formulated to encourage

companies to provide more

opportunities for young people to

work. For this purpose, it is proposed

to:

• Improve the unregulated contracting through existing

contractual formulas, as well as the adoption of contracts for training

and employment for an indefinite period.

• Propose the use of relief contracts, when the new worker joining

the company does so as a result of the partial retirement of a worker

who has reached the statutory retirement age and has therefore

voluntarily extended his employment.

• Encourage the use of different types of training contracts,

which incorporate the acting labor law and encourage the use of a

training and employment contract that aims at the professional

qualification of workers in a system involving rotation with paid work

in a company.

• Use of various forms of employment - part-time, floating-time,

home office and others

83



SUGGESTIONS FOR ENHANCING

ENTREPRENEURSHIP EDUCATION

AND SKILLS DEVELOPMENT

84



There are four sets of methods that can be applied in a youth

entrepreneurship strategy, which are related to improving the education and

training of young people in the field of entrepreneurship as well as additional

training to improve the general skills of young people.

Education

It is important to define

measures aimed at reducing

students’ failure and early school

leaving, enhancing the quality and

prestige of different education

programs, improving general

comparative results and fostering

consistency in the education system

and accessibility and constancy in the labor market. Such measures are:

• Extend the content of curricula, related to entrepreneurship and

professional opportunities, as well as knowledge of labor relations and

the labor market.

• Strengthening the respect for teachers and their primary role

and promoting a culture of responsibility and self-

improvement.

• Ensuring equal opportunities by public administrations through

prevention, intervention and compensation measures to promote

consistency in the education system and to improve the results

85



obtained and to guarantee access to the labor market under the

conditions of equality.

• Strengthening all actions at the educational level aimed at

combating early school leaving.

• Facilitate measures for educational reintegration for young

people who want to complete their education after they have lost their

jobs in order to be able to obtain an academic qualification that allows

them access to jobs other than those they have had.

• Encourage entrepreneurship and innovation as well as

entrepreneurship initiatives in education.

• Improving the links between education and business.

86



Training

The labor market offers job opportunities to people with a specific training

profile. Thus, the lack of proper training for the reality of the current labor market

and the lack of recognition of the accumulated work experience are the

disadvantages faced by many young people, especially those who have left their

education early and who cannot find opportunities for work at the moment.

To address these realities, steps should be taken to achieve the adequacy

of young people's training for company needs as well as new initiatives aimed at

encouraging young people to acquire the training and skills needed to find a job,

either through an employment contract or through self-entrepreneurship. Possible

measures include:

• Promoting pilot projects for vocational training, ensuring that

the training is adequate to the requirements of a particular business

sphere to which it is targeted, intended primarily for students who

have left the education system prematurely and are seeking

employment.

• Implementation of specific programs in rural areas, so that

young people could have real opportunities for employment or self-

employment in order to favor the rejuvenation of the population.

• Increasing the number of certification trainings and recognition

of work experience as well as offering interactive and online training.

• Encourage the introduction to e-Learning courses and the use of

advanced training technologies.

• Implementing training programs with differentiated special

funding so that young people acquire knowledge in certain activities

87



and get employment opportunities that may entail job creation as well

as entrepreneurship opportunities.

• Extending the implementation of internship programs in

companies related to the acquisition of academic or professional

qualifications during the last years of the training.

• Improving the social protection of the professional practices in

order to facilitate the transition from training to work through the

establishment of bases so that training graduates can continue their

training through time-limited non-working practices and specific

social protection formulas.

88



Improve language skills and use of technology tools

The labor market is an environment in which those seeking professional

realization must have the skills required by companies, highlighting aspects such

as language skills, qualification in technology tools or innovative and

entrepreneurial spirit. Everyone, apart from developing the skills and abilities

acquired during their training, must learn to make them profitable and complement

them with others that are suitable for the needs of the labor market.

Knowing languages or

improving the skills for working with

technology increases the

accessibility and sustainability of the

work, improves the working

conditions, helps in relocating in

case of loss of job, and is also useful

in developing own business. These

skills can be supported by the

following measures:

• Expanding the scope of language learning, which already exists

in employment training programs and official language centers,

adapting it to the existing needs.

• Encourage the study of the most sought after and used

languages in the manufacturing sectors, which require a high

level of professional qualification. To this end, it will be necessary to

89



develop training tailored to the needs of the highly qualified jobs

offered.

• Facilitating the use of technology tools, enabling access to e-

learning content to promote self-learning.

90



Promoting entrepreneurship and self-employment

In the current social and

economic context, self-employment

and entrepreneurship are particularly

important as an alternative to paid

employment, as young people are

offered the opportunity to start

professional projects to enable them

to develop their skills and

professional lives.

• Encourage young entrepreneurs to implement digital marketing

training courses and encourage the use of social networks and other

digital communication forums as a promotional platform and

demonstration of ideas.

• Analyze and select measures that enable self-employed workers and

entrepreneurs who fail to have a second chance.

91



METHODS FOR FACILITATING

TECHNOLOGY EXCHANGE AND

INNOVATION

92



For the creation of competitive companies in the market is necessary the

use of modern technologies and the application and development of innovative

methods, products and services. Most young entrepreneurs do not have the

necessary financial means and skills to acquire and develop their own technologies

and innovations, and they need support in order to be able to get access to them.

Measures that can facilitate access to technology and innovation include:

• Stimulating mentoring programs between successful companies

and start-ups of young people through which start-ups have access

to information and technology provided by the mentoring company;

• Establishment of incubators providing access to technology and

innovation and stimulating the development of new ones;

• Supporting young entrepreneurs to apply for funding programs for

the acquisition of modern technologies and the development

of innovations;

• Stimulating public-private partnerships aimed at creating and

supporting youth businesses.

93



METHODS FOR IMPROVING ACCESS TO

FINANCE

94



The lack of initial capital and

difficulties in obtaining funding from

private creditors are often identified

as the most significant barriers to

business start-ups for entrepreneurs

and a particularly serious problem for

young people. Possible measures

that can be included in policies to

promote youth entrepreneurship

include:

• Supporting young entrepreneurs through funding to cover certain

costs over a certain period of time;

• Promoting the role of mutual guarantee campaigns, especially to

promote access to credit for self-employed young people and social

economy entities under preferential terms.

• Supporting the search for alternative microcredits to help young

people start a business.

• Providing grants to finance investment and working capital for

young entrepreneurs to help them start their business

95



METHODS FOR PROMOTING AWARENESS

AND NETWORKING

96



Establishing business contacts, building networks of suppliers,

intermediaries and clients requires long-term efforts and market experience that

young entrepreneurs do not have. Local policies and strategies to support youth

entrepreneurship can accelerate this process by taking measures to speed up the

connections between youth businesses and their business contacts. Such

measures are:

• Organizing competitions and presentations of young

entrepreneurs' ideas and business plans to business

representatives, investors and others;

• Encouraging business incubators and joint workplaces with a

technological or innovative base to guide young people and provide

them with a place to start business, share experiences and ideas, and

implement collaborative projects;

• Encourage the internationalization of companies created by

young people and encourage companies to participate in public and

international projects and public procurements, especially in sectors

with a high added value component.

• Promoting the young entrepreneur's figure by promoting the

importance of employees who are looking for alternatives and

innovative activities for their company to make it more competitive.

• Stimulating the business mentorship and support for youth

businesses

• Encourage the media to communicate the positive vision of youth

entrepreneurship as well as the importance of entrepreneurs and

workers in society. Also, promote the dissemination of corporate

97



values related to respecting the labor law and commitment to

corporate social responsibility.

98



ACTION PLAN FOR A PERIOD OF 3 TO 5

YEARS BASED ON THE PRESENTED

SUGGESTIONS AND METHODS FOR

YOUTH ENTREPRENEURSHIP

99



Based on the profile of the region, the study and analysis of the potential of

the cross-border region to reduce youth emigration and the identified approaches

and measures to build a strategy for stimulating and supporting youth

entrepreneurship, this Local Policy Guide for Youth Entrepreneurship provides a

major framework of a medium-term action plan that could be included in local

strategies and policies in the field of youth entrepreneurship development.

The action plan includes

appropriate measures and

activities proposed and deadlines

for their implementation within a

five-year period. The plan may be

amended and supplemented by

relevant local authorities and

institutions or non-governmental

organizations that decide to

implement the plan or part of the

measures implemented to develop and implement strategies and policies for youth

entrepreneurship.

100

The Local Policy Guide is developed under project "Grounds for better future of our youth" No CB007.1.21.343 under the Interreg-IPA Cross-Border Cooperation Bulgaria - Serbia Programme,

CCI Number: CCI 2014TC16I5CB007. .

Measure Activities Indicators for

monitoring

Term of

execution

Responsible institution (s) Source of

funding Leading

institution (s)

Partner

institution (s)

Measure 1:

Education,

training and

improvement

of

employability

and self-

development

among young

people

Activity 1.1:

Stimulating the

organization of

professional certified

trainings

Number of

young people

successfully

completed

professional

training courses

3 years Public

administration /

agency / NGO /

private

business

Public

administration /

agency / NGO /

private

business

Own budget /

European

funding /

Activity 1.2. Creating

training programs

from and in

companies with

commitment to hire

or mentor young

people to start their

own business

Number of

young people

trained and

hired or started

their own

business

initiative

3 years Public

administration /

agency / NGO /

private

business

Public

administration /

agency / NGO /

private

business

Own budget /

European

funding /

Activity 1.3.:

Organization of

language training and

use of information

and communication

technologies courses

Number of

young people

successfully

completing

courses in

language or

information and

3 years Public

administration /

agency / NGO /

private

business

Public

administration /

agency / NGO /

private

business

Own budget /

European

funding /

101


CCI Number: CCI 2014TC16I5CB007.


monitoring

Term of

execution


funding Leading

institution (s)

Partner

institution (s)

communication

technologies

Activity 1.4:

Development and

implementation of

internship programs

in companies and

government

institutions

Number of

young people

who have

successfully

completed

internship

programs

3 years Public

administration /

agency / NGO /

private

business

Public

administration /

agency / NGO /

private

business

Own budget /

European

funding /

Measure 2:

Information,

counseling and

mentoring to

find a job or

start up own

business

Activity 2.1:

Improving the

functioning of the

employment services

and the information

they offer

Number of

trained

employees of

the labor offices

Created modern

platform for

providing

information on

finding

employment and

/ or creating

links between

4 years Public

administration /

agency / NGO /

private

business

Public

administration /

agency / NGO /

private

business

Own budget /

European

funding /

102




monitoring

Term of

execution


funding Leading

institution (s)

Partner

institution (s)

young people

and businesses

Activity 2.2: Creating

programs for basic

training in general

business skills,

finding mentors and

financial support

Number of

established and

functioning

businesses by

young

entrepreneurs

4 years Public

administration /

agency / NGO /

private

business

Public

administration /

agency / NGO /

private

business

Own budget /

European

funding /

Activity 2.3:

Organization of

events and

competitions for

presenting business

ideas to young

entrepreneurs and

finding mentors,

funding and

supporting

companies

Number of

established and

functioning

businesses by

young

entrepreneurs

4 years Public

administration /

agency / NGO /

private

business

Public

administration /

agency / NGO /

private

business

Own budget /

European

funding /

103




monitoring

Term of

execution


funding Leading

institution (s)

Partner

institution (s)

Measure 3:

Creating

infrastructure

and conditions

for young

entrepreneurs

to start a

business

Activity 3.1:

Stimulating

mentoring programs

between successful

companies and start-

ups of young people

through which start-

ups have access to

information and

technology provided

by the mentoring

company

Number of

established and

functioning

businesses by

young

entrepreneurs

4 years Public

administration /

agency / NGO /

private

business

Public

administration /

agency / NGO /

private

business

Own budget /

European

funding /

Activity 3.2: Creation

of incubators

providing access to

technology and

innovation and

stimulating the

development of new

ones

Number of

established

incubators and

companies of

young

entrepreneurs

using their

services and

capabilities

5 years Public

administration /

agency / NGO /

private

business

Public

administration /

agency / NGO /

private

business

Own budget /

European

funding /

104




monitoring

Term of

execution


funding Leading

institution (s)

Partner

institution (s)

Activity 3.3:

Supporting young

entrepreneurs'

companies to apply

for programs to

finance the

acquisition of modern

technologies and the

development of

innovations

Number of

companies of

young

entrepreneurs

received funding

under

programmes

4 years Public

administration /

agency / NGO /

private

business

Public

administration /

agency / NGO /

private

business

Own budget /

European

funding /

Activity 3.4:

Stimulating public-

private partnership

aimed at creating and

supporting youth

businesses

Number of

established and

functioning

businesses by

young

entrepreneurs

5 years Public

administration /

agency / NGO /

private

business

Public

administration /

agency / NGO /

private

business

Own budget /

European

funding /

Measure 4:

Facilitating the

funding of

young people's

Activity 4.1: Helping

young entrepreneurs

through funding to

cover certain costs

Delegated

budget for

financing young

entrepreneurs

5 years Public

administration /

agency / NGO /

private

business /

Public

administration /

agency / NGO /

private

business /

Own budget /

European

funding /

credits and

105




monitoring

Term of

execution


funding Leading

institution (s)

Partner

institution (s)

entrepreneurial

initiatives

over a certain period

of time

Number of

businesses of

young

entrepreneurs

who have

received funding

and have

continued their

business

successfully

credit and

funding

institutions

credit and

funding

institutions

private

funding

Activity 4.2:

Promoting the role of

mutual guarantee

campaigns, in

particular access to

credit for self-

employed young

people and social

economy entities

under preferential

terms

Number of

businesses of

young

entrepreneurs

who have

received credit

and have

continued their

business

successfully

4 years Public

administration /

agency / NGO /

private

business /

credit and

funding

institutions

Public

administration /

agency / NGO /

private

business /

credit and

funding

institutions

Own budget /

European

funding /

credits and

private

funding

106




monitoring

Term of

execution


funding Leading

institution (s)

Partner

institution (s)

Activity 4.3:

Supporting the

search for alternative

microcredit, to help

young people start a

business

Number of

businesses of

young

entrepreneurs

who have

received credit

and have

continued their

business

successfully

4 years Public

administration /

agency / NGO /

private

business /

credit and

funding

institutions

Public

administration /

agency / NGO /

private

business /

credit and

funding

institutions

Own budget /

European

funding /

credits and

private

funding

Activity 4.4:

Providing grants to

finance investments

and working capital

for young

entrepreneurs to help

them start their

business

Delegated

budget for

financing young

entrepreneurs

Number of

businesses of

young

entrepreneurs

who have

received funding

and have

5 years Public

administration /

agency / NGO /

private

business /

credit and

funding

institutions

Public

administration /

agency / NGO /

private

business /

credit and

funding

institutions

Own budget /

European

funding /

credits and

private

funding

107




monitoring

Term of

execution


funding Leading

institution (s)

Partner

institution (s)

continued their

business

successfully

Activity 4.5:

Presentation of

information and

supporting the

contact and

application to funds

offering financing for

business ideas of

young entrepreneurs

Number of

businesses of

young

entrepreneurs

who have

received funding

and have

continued their

business

successfully

4 years Public

administration /

agency / NGO /

private

business /

credit and

funding

institutions

Public

administration /

agency / NGO /

private

business /

credit and

funding

institutions

Own budget /

European

funding /

credits and

private

funding

108

The Local Policy Guide is developed under project "Grounds for better future of our youth" No CB007.1.21.343 under the Interreg-IPA Cross-Border Cooperation Bulgaria -

Serbia Programme, CCI Number: CCI 2014TC16I5CB007.

.

METHODS FOR ASSESSING THE

EFFECTIVENESS OF THE LOCAL POLICY

GUIDE ON YOUTH ENTREPRENEURSHIP

109



The tasks for monitoring and assessing the

objectives are focused on continuous monitoring

of the planning, progress, implementation, results

and impact of local policies and strategies

including proposed measures for youth

entrepreneurship. Two main sets of indicators to

be tracked are defined for this purpose:

• Indicators for performance and results, the purpose of which is

to measure the level of development and advancement of the

measures included in the guide and strategies based on the guide.

• Impact indicators, the aim of which is to know the effectiveness of

the measures on the development of the labor market, the reduction

of youth unemployment and the development of youth

entrepreneurship.

110



Indicators for performance and results

The performance and results indicators immediately measure the scope and

level of development of each of the measures foreseen in the guide and integrated

into a youth entrepreneurship strategy. It is suggested to monitor the following

indicators:

• Number of measures taken - number of strategies and policies or

individual actions for language learning, use of information and

communication technologies, vocational training and others to

improve the employability of young people or their own business

start-up skills

• Budgets assigned to implement measures - total costs of

carrying out the developed actions for training, education and

vocational training.

• Number of beneficiaries - number of young people who have

successfully undergone training.

In addition, as shown in the Action Plan above, for each action under the

Youth Entrepreneurship Strategy, own performance and results indicators should

be set up in order to assess the contrast of the results obtained with the expected

results. Thus, during the implementation period of the guide and any strategy

undertaken, it will be possible to assess intermediate results and to take timely

measures for improvement.

111



Impact indicators

The impact indicators will

measure the outcomes of the

guide and the strategies based on

the measures proposed to remedy

the main deficiencies and

imbalances so that one can

monitor the development of the

state of entrepreneurship and

employment among young people.

In order to achieve this goal, the results achieved on reducing youth

unemployment and promoting youth entrepreneurship will be monitored annually

on the basis of generally accepted criteria reflecting the evolution of the main

variables affecting young people:

• Employment rate among young people (16-24 years old)

• Employment rate among young people (25-29 years old)

• Youth unemployment (16-24 years old)

• Youth unemployment (25-29 years old)

• Percentage of young people employed on a part-time basis

• Degree of sustainability of youth employment over time

• Percentage of young people at risk of social exclusion

112



• Percentage of young people who left the education system early

• Percentage of young people with low qualifications

• Percentage of students in secondary vocational schools and vocational

schools compared to those in ordinary secondary schools

• Percentage of young people with foreign language skills

• Percentage of young people with knowledge of information and

communication technologies

• Number of young self-employed

• Percentage of total entrepreneurial activity

• Percentage of entrepreneurial activity among young people

• Received financing and credits for young entrepreneurs

• Number of newly created businesses by young entrepreneurs

Documents

LOCAL POLICY GUIDE ON YOUTH ENTREPRENEURSHIP