SMart Case Study (V6) - alex-bird.com › ... › 2009 › 12 › SMart-Case-Study.pdf · their own space in the system, within which they post their contracts, and send out order

SMart.Be-ACo-operativefortheSelf-Employed Page1of13

SMart.BeACo-operativefortheSelf-Employed

OneofaseriesofcasestudiesbyAlexBirdMay2017

www.alex-bird.com


casestudies…….

I’vewrittenmanypapersovertheyears,fewofwhichseethelightofdaythroughpublication,soI’mputtingtogetherafewoftheminaninformalseries,andpublishingthemonmywebsite.

TheycoverarangeofsubjectsthatIhopewillbeofinterest.

Someareofhistoricalinterest,somearetopicsfordiscussion.

Somehavealreadybeenpublishedsomewhere,inwholeorinpart.

Mosthaven’tmadeit.

Havingputinsomuchthoughtandeffort,seeingthemlieinadigitalvaultsomewhereonmylaptopseemslikeawaste–hencethissmall-scalepublicationeffort.

Allarefreetodownloadfrommywebsiteat:-http://www.alex-bird.com/download-publications/

Hopeyoufindthemofinterest.SpecialthanksgotomycolleaguePatConatywhoaccompaniedmeforsomeoftheresearchonthisproject,andtotheSMartcolleagueswemet,whoprovidedsomuchinformation:-

RogerBurton,LiezaDessein,SophieBodarwé,SophieYpersiel,FrisiaDonders,SergioGiorgi,SarahdeHeuschRibassin,andSandrinoGraceffa.

ThisworkislicensedundertheCreativeCommonsAttribution-NonCommercial4.0InternationalLicense.Toviewacopyofthislicense,visithttp://creativecommons.org/licenses/by-nc/4.0/AlexBird2017www.alex-bird.com


SMart(SociétéMutuelled’Artistes),wasformedin1998toenableartists,techniciansandintermittentworkerstofacetheadministrativecomplexityoftheartssectorinBelgium.

TheassociationwasbornundertheleadershipofPierreBurnotteandJulekJurowicz.Since2015SandrinoGraceffa(CEOSMartFr)actsasManagingDirector.

"Ihavebeenaconcertpromoterforalongtime,"saysPierreBurnotte."OutofrespectfortheworkofartiststhatIinvited,Iwantedtopaythemproperly.Althoughitwasnotlargesums,backthenitwaseasiertosettleupincashratherthanfollowingtherules.Workinginthiswaywasnotasolutiongiventherisksthatthisimpliesforboththeorganizerfortheartist,mostofwhowereunemployed.Buttheformalmechanismswereparticularlyunsuitedtotherealitiesofthisenvironment.SoIstartedtotakecareoftheadministrationofcertainbands.Mostcouldnotliveontheirartandbesides;theydidnotknowhowtodeclareoccasionalincome.Theyjuggledwiththelegislation,hopingnottocommitafauxpasorbeidentified.Artistshavebeensanctionedorexcludedfromunemploymentbenefitforexposingpaintingsoraplayingaconcert.Artistsdidn’tknowmuchabouttheirrightsanddutieswhiletheGovernmentadministration,TradeUnionsorSocialSecurityknewverylittleofthepeculiaritiesofthismedium...".

JulekJurowicz,whohadbeenworkinginfilmcirclesforsometime,experiencedsimilarproblemsthere.

Basedontheirexperience,thetwofuturepartnersconsideredvarioussolutions.TheystartedSMart,theassociationtomanagetheadministrativeaspectsofmusiciansbusiness,andthengraduallybroughtinothercategoriesofartists.Buttodothismanuallyistediousadministrativework,andfartoomuchforoneperson.

PierreBurnotteandJulekJurowiczrealizedthattheviablesolutionwastodesignanITsystemcapableofhandlinglargernumbersofpeople,andplayingontheeconomiesofscaleandthepoolingofinterests.

Employmentrightsare,naturally,differentinBelgium,andworkersaredividedintothreemaincategories:-

SALARIEDWORKER

Youremployerpaysaround30%ontopofyoursalaryintothesocialsecurityfund.Youasanemployeealsopayaproportionofyourgrosssalaryassocialsecuritycontributions.Thisfundisthenusedtopaysocialsecurity:healthinsurance,retirementplan,unemploymentbenefit,familyallowance,etc.

INDEPENDENTWORKER

Theself-employedarealsoeligiblesocialsecuritybuthavefewerrights.Theself-employed,forexample,cannotclaimunemploymentbenefit.Thereforetheypayasocialsecuritycontributionthat’slowerthanthejointcontributionofemployersandemployees.However,theself-employedcanpayextravoluntarycontributionsviaL'Institutnationald'assurancessocialespourtravailleursindépendants(INASTI),whichgivesthemadditionalrights.(See:www.inasti.be)


CIVILSERVANT

Civilservantsgetthebestoverallsocialprotection.Buttheycannotbenefitfromcertainextraslikeagrouppensionfundedbytheemployer,andtheirworkenvironmentcanbeconsideredaslessflexible.

HOWSMartWORKS

SMarthasproducedasystemtogivetheprecarious,intermittentworkerswhomanagetheirowncareerpathsindirectcontactwithcustomersoroutsourcers,accesstothesalariedlegalstatus.Itoffersworkerstheopportunitytobuildorpreservetheirsocialrightsbyallowingthemtoobtainthebenefitsusuallyreservedforemployees(suchasforexampleaccesstounemploymentbenefit1).

THECONTRACTTheContractistheoldestoftheonlinetoolsSMarthasdevelopedtoenableindividualmemberstomanagetheirbusinesses.Itdoesthisbythesimplemechanismofconvertingtheirownself-motivated,self-controlledearningsintoasalary.Bydoingthisitallowstheindividualtooperatewhatisineffecthisorherowncostcentrewithinalargerco-opaccountssystem.Theyhaveonlineaccesstotheirownspaceinthesystem,withinwhichtheyposttheircontracts,andsendoutorderforms.TheseareconvertedintoinvoicesthataresentoutinhenameofSMartontheirbehalf,andSMartchasesandcollectsthepayment.Thisisthenconverted

1InBelgium,asinmanyothercountries,temporaryworkersdonotqualifyforunemploymentbenefit,andworkersnormallyhavetohaveworkedforatleast15dayspermonth,fortheprevious18to36monthsdependingonage.Forintermittentworkersintheartisticfieldthe“règleducachet”allowsthemtoconvertincomeintoworkingdays,whichfacilitatestheiraccesstounemploymentbenefit.Then,thespecific“intermittencyunemploymentscheme”allowsthemtomaintainthehighunemploymentbenefitlevelafter1yearofunemploymentbenefit(normallytheleveloftheunemploymentbenefitdecreasesafterthat).Thepersonsimplyhastoprovetheyworkasartistsortechnician(156workingdaysofwhichatleast104daysofartisticortechnicalworksduringthelast18months).Oncetheyprovethis,theycankeepmaximumunemploymentbenefitforayearaslongass/heprovides3workcontractseachyear.


toapaymenttothemviatheequivalentofaPAYEemploymentsystem.Theyaresalaried,butnotemployedinthenormalsense.Theyhaveasortof“zerohourscontract”buttheycontroltheirhoursandtherefore,whattheygetpaid.

Themembercanalsochosetosmooththeir“salary”overtheyearbasedonanticipatedincome,sothattheygetpaidasetamounteachmonth,makingtheirpersonalfinancialaffairseasiertomanage.ThisisanideafirstusedbytheCoopérativesd’Activitésetd’EmploiinFrance,withwhichSMarthasstronglinks.

Since2001,SMarthasguaranteedpaymentforallworkinvoicedthroughthesystem,underwrittenbymutualfundsbuiltupwithintheorganisation.Thus,membersarepaidwithin7days,anddon’thavetoworryaboutdefaulters.

Thishasnotbeenwithoutitsdifficulties.SMartrecruitedmanyhundredsof“TakeEatEasy”cyclecouriers.SMartwereinvolvedinnegotiationswiththecompany,andhelpedsecureanagreementtopaythecourierspershift,ratherthanperdelivery,justas“Deliveroo”do.However,inJuly2016“TakeEatEasy”wentintobankruptcy,partlyasaresultofcompetitionfromDeliveroo,andSMart’sguaranteefundlostouttothetuneof€340,000.ThiswasafinancialshocktoSMart,butonethatitisabletoweather,havingbuiltadequatereservesovertime.

SMartalsoprovidesmemberswithprofessionalliability,accidentatwork,andmobilityinsurances,whichcomesaspartofthepackage.OnecontractthroughthesystemperyearisenoughtoensurecoveragebySMart’sinsuranceallyear.

SMartchargesalevyof6.5%feetocovercostofservicesanddevelopmentofmutualisedservicesinBelgium,(althoughthisvariesbetween6.5%and8.5%dependingonwhichcountrythememberoperatesin).

TheProductionAssocies2toolwasintroducedonJanuary1st2015toreplacetheoriginalsoftwarethatoperatestheContract3.Thisisanew“3in1"onlinetooltochargeforworkforaclient.Everymemberhasaccessonline24/7toapersonalspacetorunhisorheraffairs

https://account.ubik.be/accountlogin.aspx?lang=fr&KeepThis=truetarget=_blank

Onedataentrybythemembergeneratestheofficialorder(whichmustbeco-signedbythememberandtheirclient)thecontractestablishedbetweentheworkerandotherassociatesand,theinvoicefortheworkdone.

Withthisnewtoolthemembercan:-

• Sendinvoicestocustomersviapre-formattedcontractsbasedonestimates,partnershipworking,developmentagreements,etc.

• Payfundsintotheactivitybudgetfromdiversefundingsources

• Payforproductioncostsrelatedtotheimplementationoftheactivity

• RecoverVATonthepurchaseinvoicesissuedinthenameofSMart

2Thesoftwarehasbeenbuilt“inhouse”byUbikSprl,adigitalcompanythatisitselfaSMartmember.3TheoriginalSMartonlinetool,althoughsuperseded,isstillavailableforthosewhowanttocontinuetouseit.


• Exercisetheirrightsasanemployee(temporaryorpermanent)orasanauthorandthusbenefitfrombettersocialprotection

SMartalsooffersanonlineBudgetaryToolthathelpsthemembertomanageprojectseffectivelyby:-

• Costingpurchasesandexpenses

• Calculatingcashflows

• Identifyingmaterialcosts

• Calculatinglabourrequirements(personnelandhours)

• IdentifyingtechnicalandregulatoryrequirementssuchasIntellectualandpropertyrights,grantconditions,etc.

LESACTIVITIES

Activitiesaremini-structurestoadministerandbillcollectiveprojects,whilstmaintainingemployeestatusforalltheworkersinvolved.

TheActivitiesmanagementtoolallowsmemberstomanageabudgetdedicatedtotheirprojectwithouthavingtocreateacompany,societyorassociation.TheydothiswithinSMart,whichprovidesalltheservicestheyneed.

Thissystemallowsthemtofinancecontractsofemploymentforotherstaffmembers,topaybusinessexpensesortopaydutiesandtaxes.Itisadaptedtotheneedsofworkers,who,whilstessentiallyactingasself-employed,workcollectivelywithothersinanon-hierarchicalway.

Itallowsworkingwithagroupofassociates,therepaymentofawiderangeofprofessionalfees,thereceiptandmanagementofpublicsubsidies,andbillingforcopyrightfees,anyothercosts,orthesaleofworksofart.

TheshareofSmart’sbusinesstakenbytheSMartActivitiesmodelhasgrownsteadily.Forthefirsttimein2014,theamountschargedforActivitiesexceededthoseforContracts.Thischange,whichisevenmoreevidentin2015,showsthatSMartisbecomingincreasinglyasharedenterprise,inwhichthemembersarelikelytodevelopalloftheirprofessionalsprojectsthroughtheActivitiesmodel.


SHAREDWORKSPACES

Sinceitsinception,SMarthashadthewilltohelpcreativesprofessionalise.Foranumberofyearsnowitalsorentsoutsharedworkspace.ItsfirstpremisesatRueEmileFéronintheSaintGillesdistrictofBrusselshaveexpandedbyacquisitionofadjoiningpropertiesovertheyearsincludingtheBrusselsArtFactory.

OthercentreshavebeenopenedacrossBelgiumat:-

• LaVallée(Molenbeek)

• LecentredeCréationdesTanneurs(Liège)

• L'ancienneBrasserieHaecht(Liège)

• EspacesMutualisésVivegnis(Liège)

• CentredeCréationdesBelneux(Mons)

Theseareamixtureoffreeholdandleaseholdproperties,butallarelettoartistsandcreativeonsimilar,all-inclusiveterms.

LaValléeisacreativecentreopenedinSeptember2014,locatedinaformerlaundryof6,000m²inMolenbeek-Saint-Jean,neartheBrusselscitycentre,closetothecanalandthenewcentreforcontemporaryart,Mima.

LaValléeaimstobringtogetheradiverserangeofartistsandcreativestoencouragecrossfertilisationofideas,poolingofskills,areasofexpertise,andequipmentaswellasincreasingopportunitiesforcollaboration.Workinginpartnership,andthehumanandparticipatorynatureoftheproject,arecorevaluesofLaVallée.


Thesitehostsmorethan100creativesandentrepreneurs,individualsandgroupsfromvarioussectorsandhelpstoorganisemanyevents.

LaValléehasworkspaces,workshopsandofficesofvaryingsizes,fromadozensquaremeterstoahundredm²forsharedaccommodation.Moreover,severaleventroomscanaccommodateandproduceeventssuchasexhibitions,artisticperformancesbutalsoworkshops,trainings,conferences.

Itisleasedfromaprivateownerona27yearleasefrom2013.SofarSMarthavespent€600,000onrenovationandimprovement.Spaceisrentedtomembersforbetween€8and€10perm²permonth(£8to£10perft²peryear)whichisinclusiveofheat,light,rates,24/7accessandWi-Fiinternetconnection.

TRAINING

SMartalsohasatrainingdepartmentofferingarangeofcoursesonbusinessandentrepreneurialskills.Coursesarebothgenericandsectorspecific.Theyinclude:-

Trainingbysector:

• Creativeprofessions:Ihaveacommunicationplan!

• Plasticandgraphicarts:Howtosecuretherightprice

• Photography:Copyrightandimagerights

Trainingforall:

• Professionalprojectreview

• Theartofnegotiating

• Weavingandexpandinganetworkofcontacts

• Socialmediaasaprofessionaltool


• Conductingmarketresearch-NEW!

• Developingandmanagingprojects

• IntroductiontoCollectiveIntelligencetools

• Workingabroad:legalandadministrativeaspects

• Interculturalaspectsofinternationalmobility-NEW!

• Developingentrepreneurialskillsthatsuityourpersonality-NEW!

• Talkingaboutone’sartisticproject

Inaddition,SMart’strainingdivisionhasengagedwiththeEU’sErasmusprogramme,andhasparticipatedin“RoutestoEmployment”aprojectacrosssevencountriesworkingwith,amongstothers,Roots&RoutesandAlbedaCollegeintheNetherlands.

FINANCIALSERVICES

SMartoffersmembersarangeoffinancialproducts,includingequipmentleasing,smallloansandadvancesagainstgrantfunding.Thesearealloperatedasin-houseservices.

PROMOTIONS

SMartalsorunspromotionaleventsaimedatpromotingitsownmembers,suchasSMartLab,anannualeventheldatdifferentlocationsaroundEurope.

Italsooperatesawebspacededicatedtomember-to-membercommunicationandthemarketingofmembers’serviceswww.smartagora.be

LEGALSERVICES

Memberscanbenefitfromadvicethatcoversarangeofsubjectsfromemploymentandunemploymentrightstointellectualpropertyprotection

BUSINESSADVICEANDCOACHINGSMarthasbusinesscounsellorstoadvisemembersontheorganization,growthanddevelopmentoftheirbusiness.Theyareavailabletodiscussthetechnicalandfinancialfeasibilityofeachnewprojectandhelpthemusethebudgettooloptimally.

MEMBERSHIP

Membershiphasgrownsteadilyovertheyearstoaround69,188membersinBelgiumattheendof2015,plusaroundafurther20,000plusacrossEurope.


Theservicesmembers’usehasalsochanged,withanincreasingproportionswitchingfromtheContractsmodeltotheActivitiesmodel,whichmakesiteasierforthemtoworkcollaboratively.

By2014ActivitiestransactionsexceedthoseoftheContractsmodel,andby2015over58%oftransactionsweremadeusingtheActivitiesmodel.

Overthesameperiod,withthecreationofSMartEU,SMarthasexpandedacrossEurope,andnowoperateslocalorganisationsinAustria,Belgium,France,Spain,Germany,Hungary,Italy,theNetherlands,andSweden.Eachorganisationisadaptedtothelocaltaxandinsuranceregime.

GROWTHTIMELINE1998

• LaunchofSMartinBelgiumwww.smartbe.be• EstablishmentoftheoriginalContractsservice


2000• ContributestotheworkoftheNationalPlatformofArtists

2001• CreatedtheWageGuaranteeFundtounderwritemembersincome• StartingtheActivitiesServicetoenablememberstoworktogetherand

manageprojectsjointly• Participatedinnegotiationsonthereformofthespecialtaxstatusforartists

inBelgium,leadingtothelawof24/12/2002.• OppositiontoanattemptbytheNationalEmploymentOfficetorestrictthe

applicationofthe"ruleofthestamp."2004

• CollaborationwiththeGeneralStateofCulturedebateoftheFrenchspeakingCommunityofBelgium

2005• Launchofanew,simplifiedonlinedataentryinterfaceformembers.

2006• Creatingthe“Training"servicetoassistmemberswantingtoimprovetheir

businessskills2007

• AwardedtheRogerVanThournoutSocialEconomyPrize• Establishmentofaleasingserviceforthepurchaseofprofessionalequipment• ParticipationinnegotiationsontheLaw"Monfils'whichamendedthe

incometaxsystemregardingcopyrightandrelatedrightsoftheartists• Settingupapublishing/designofficeinchargeofanalysisand

multidisciplinarypublicationsaroundtheculturalsector• SMartFr(France)iscreated

2008• Creatinganoverarchingnot-for-profitfoundationand5separatelegal

sub-structures• Launchofsupportgrantsformembers• Launchofhttp://www.smartagora.com/fr/anInternetportalforSMart’s

artistmemberstopublicisetheirwork.2009

• LaunchofSMartservicesinFrancehttp://smartfr.fr2010

• PublishedaManifestofortheBelgianfederalelections• FirstexhibitionofSMart’sownartcollection,builtaroundthetheme

"portraitsofartists"2011

• Launchofthepetitionformaintainingandsecuringthespecialstatusoftheartist.Apetitionof23,000signatureshandedtotheMinisterofEmployment.

• RecognitionasSocialBureauforArtists.2012

• Launchedthefirstcampaign"VoteCulture"fortheprovincial,localandmunicipalelectionsinOctober2012

• SMartSe(Sweden)iscreatedandrunningservices2013


• Mobilizationorganizedontheoccasionofthejudgmentinthetrial"Artistsvs.theBelgianNationalEmploymentOffice"inwhichsome250artistscontestedtheNEOrulingsonunemploymentbenefit.

• SMart.becelebrates15yearsinBrussels• SMartAt(Austria),SMartDe(Germany),SMartIb(Spain),SMartIt(Italy)and

SMartNL(Netherlands)arecreated2014

• Mobilizationagainstthereformofthestatusofartist–theproposedannulmentofArticle48boftheRoyalDecreeof25/11/91.

• Launchofthesecondcampaign"VoteCulture"forregional,federalandEuropeanelectionsinMay2014

• SMartHu(Hungary)iscreatedandrunningservices• SMartItandSMartNLrunservices

2015• SandrinoGraceffabecomesmanagingdirectorofSMartinBelgium• Morethan700participantsatthegeneralmeetingof30June,kick-offthe

processofreflection"SMartinProgress"• 742surveyrespondents"WhatfutureforSMart?" • SMartDe(Germany)becomesacooperativeandprovidesservices• SMartAt(Austria)becomesacooperative

2016• ClosinghalfofparticipativereflectionaboutthefutureofSMart,including

therecommendationsofthefourWorkingGroups• Constitutivegeneralassemblyofourfutureco-distributionofstrategicpolicy

plan"SMart2020”• Conversiontoaco-operative• EASIGrant(EuropeanCommission,DGemploymentandsocialaffairs)forthe

I-WIREproject(www.i-wire.eu)ofwhichSMartisapartner(leadisUniversityofMilan)


Documents

SMart Case Study (V6) - alex-bird.com › ... › 2009 › 12 › SMart-Case-Study.pdf · their own space in the system, within which they post their contracts, and send out order