COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS ENTREPRENEURSHIP 2020 ACTION PLAN Reigniting the entrepreneurial spirit in Europe
Date: 2013-01-09
Institutions: European Commission
Subjects: aid to undertakings, bankruptcy, corporate finance, digital technology, economic growth, educational planning, entrepreneur, job creation, new type of employment

EUROPEAN 
COMMISSION 

Brussels, 9.1.2013  
COM(2012) 795 final 

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

ENTREPRENEURSHIP 2020 ACTION PLAN 

Reigniting the entrepreneurial spirit in Europe 

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TABLE OF CONTENTS 

1. 

2. 

2.1. 

Our Challenge – More entrepreneurs for Europe......................................................... 3 

Action Pillar 1 – Entrepreneurial education and training to support growth and 
business creation .......................................................................................................... 5 

New foundations: increasing the prevalence and quality of entrepreneurial learning…
...................................................................................................................................... 5 

2.2.  …and new frontiers: higher education for entrepreneurship ....................................... 6 

3. 

3.1. 

3.2. 

3.3. 

3.4. 

3.5. 

3.6. 

4. 

4.1. 

4.2. 

Action Pillar 2 – Create an Environment where Entrepreneurs can Flourish and Grow
...................................................................................................................................... 8 

Better access to finance................................................................................................ 8 

Supporting new businesses in crucial phases of their lifecycle and help them grow 10 

Unleashing new business opportunities in the digital age ......................................... 13 

Easier business transfers ............................................................................................ 15 

Turning failure into success: second chances for honest bankrupts .......................... 17 

Regulatory burden: clearer and simpler rules ............................................................ 18 

Action Pillar 3 – Role models and reaching out to specific groups ........................... 21 

New perceptions: entrepreneurs as role models......................................................... 21 

New horizons: reaching out to women, seniors, migrants, the unemployed, young 
people ......................................................................................................................... 22 

4.2.1.  Women ....................................................................................................................... 22 

4.2.2.  Seniors........................................................................................................................ 23 

4.2.3.  Migrant entrepreneurs ................................................................................................ 24 

4.2.4.  Unemployed, in particular young people ................................................................... 25 

5. 

Conclusions ................................................................................................................ 27 

Annex: Commission Key Actions............................................................................................ 28 

Annex: Entrepreneurship 2020 Action Plan - re-igniting the entrepreneurial spirit in Europe 28 

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COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

ENTREPRENEURSHIP 2020 ACTION PLAN 

Reigniting the entrepreneurial spirit in Europe 

Since  2008  Europe  has  been  suffering  the  effects  of  the  most  severe  economic  crisis  it  has 
seen in 50 years: for the first time in Europe there are over 25 million unemployed and in the 
majority  of  Member  States  small  and  medium-sized  enterprises  (SMEs)  have  not  yet  been 
able to bounce back to their pre-crisis levels. 

Before  the  on-going  economic  and  financial  crisis,  the  European  economy  faced  structural 
challenges  to  its  competitiveness  and  growth,  and  obstacles  to  entrepreneurship.  Many  of 
these  persist,  but  the  crisis  has  also  been  a  catalyst  for  deep  change  and  restructuring.  The 
world  economy  has  also  been  transformed  over  the  last  decade.  Rapidly  increasing  demand 
and production in global markets has put pressure on resource and energy supplies leading to 
changing cost structures for Europe's companies, many of which are dependent on imports for 
these supplies. 

The Europe 2020 Strategy responded to this by setting out the foundations for future growth 
and  competitiveness  that  will  be  smart,  sustainable  and  inclusive,  and  which  would  address 
our principal societal challenges. Correcting the problems of the past and putting the EU on a 
more  sustainable  development  path  for  the  future  is  a  shared  responsibility  of  the  Member 
States  and  the  EU  Institutions.  Recognising  that  our  economies  are  closely  intertwined,  the 
EU is now reshaping its economic governance to ensure better policy responses to current and 
future challenges. 

To bring Europe back to growth and higher levels of employment, Europe needs more 
entrepreneurs.  As  a  follow  up  to  the  Small  Business  Act  review  of  April  2011  and  of  the 
Industrial  policy  communication  adopted  last  October,  the  proposed  Action  Plan  sets  out  a 
renewed vision and a number of actions to be taken at both EU and Member States' level to 
support  entrepreneurship  in  Europe.  It  is  based  on  three  pillars  :  developing  entrepreneurial 
education and training; creating the right business environment; role models and reaching out 
to specific groups. 

1. 

OUR CHALLENGE – MORE ENTREPRENEURS FOR EUROPE  

Entrepreneurship is a powerful driver of economic growth and job creation1: it creates 
new companies and jobs, opens up new markets, and nurtures new skills and capabilities. In 
the field of industry for instance, it is therefore particularly important to fast development of 
the  six  emerging  growth  sectors  identified  in  the  Commission's  Industrial  Policy  update2. 

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2 

For  the  job  creation  potential  of  entrepreneurship,  see  the  Communication  from  the  Commission 
“Towards a job-rich recovery”, 18.4.2012, COM(2012) 173 final. 
COM(2012)  582  final  of  October  2012  identified:  advanced  manufacturing  technologies  and  clean 
production,  key  enabling  technologies,  bio-based  products,  sustainable  industrial  and  construction 
policy and raw materials, clean vehicles, smart grids. 

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Entrepreneurship  makes  economies  more  competitive  and  innovative  and  is  crucial  in 
achieving the objectives of several European sectorial policies.3 Commercialising new ideas 
improves  productivity  and  creates  wealth.  Without  the  jobs  from  new  firms,  average  net 
employment  growth  would  be  negative4.  New  companies,  especially  SMEs,  represent  the 
most important source of new employment: they create more than 4 million new jobs every 
year in Europe.5 Yet the engine for this recovery has been stuttering: since 2004, the share of 
people preferring self-employment to being an employee has dropped in 23 out of the 27 
EU Member States.6 While three years ago for 45% of Europeans self-employment was their 
first choice, now this percentage is down to 37%.7 By contrast in the USA and China this 
proportion is much higher: 51% and 56% respectively. Moreover, when new enterprises are 
founded,  they  grow  more  slowly8  in  the  EU  than  in  the  USA  or  emerging  countries,  and 
fewer of them join the ranks of the world's largest firms.9  

The  level  of  entrepreneurship  and  its  nature  vary  widely  between  Member  States,  and  the 
reasons for low enthusiasm for an entrepreneurial career are therefore diverse. Some Member 
States  with  higher  levels  of  entrepreneurship  are  less  successful  than  others  at  helping  new 
and  small  enterprises  to  grow.  Generally  would-be  entrepreneurs  in  Europe  find 
themselves  in  a  tough  environment:  education  does  not  offer  the  right  foundation  for  an 
entrepreneurial  career,  difficult  access  to  credits  and  markets,  difficulty  in  transferring 
businesses,  the  fear  of  punitive  sanctions  in  case  of  failure,  and  burdensome  administrative 
procedures.  The  Annual  Growth  Survey  2013  has  recently  emphasised  the  need  to  improve 
the  business  environment  to  increase  the  competitiveness  of  EU  economies.  Furthermore, 
support measures for SMEs remain unbalanced, with a substantial number of EU Member 
States still neglecting to take into account the characteristics of small businesses, in particular 
micro-businesses10, when designing legislation or not facilitating a second chance for honest 
bankrupt entrepreneurs.11  

Not only is the environment challenging, but there is also a widespread culture that does not 
recognise or reward entrepreneurial endeavours enough and does not celebrate successful 
entrepreneurs,  as  role  models  who  create  jobs  and  income.  To  make  entrepreneurship  the 
growth engine of our economy Europe needs a thorough, far-reaching cultural change.  

Against  the  background  of  the  current  economic  crisis  and  the  new  economic  governance 
mechanism, this communication further develops and accentuates action in those fields where 

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11 

For  instance  COM  "Blue  Growth  opportunities  for  marine  and  maritime  sustainable  growth"  - 
COM(2012) 494 final. 
Kauffman Foundation "Business Dynamics Statistics Briefing: Jobs created from business start-ups in 
the United States" http://www.kauffman.org/uploadedFiles/BDS_Jobs_Created_011209b.pdf. 
Commission calculation based on Eurostat data (2009).  
The  countries  where  preference  for  self-employment  grew  between  2004  and  2012  were  the  Czech 
Republic  (from  30%  to  34%),  Latvia  (42%  to  49%),  Lithuania  (  52%  to  58%)  and  Slovakia  (30%  to 
33%). http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/eurobarometer/index_en.htm. 
EU Commission Flash EB No 354 " Entrepreneurship".  
Albert  Bravo-Biosca  "The  dynamics  of  Europe's  industrial  structure  and  the  growth  of  innovative 
firms"JRC Conference Seville, October 2011. 
Strikingly, Europe’s corporate giants include only 12 companies born in the second half of the twentieth 
century, against 51 in the US and 46 in emerging countries; of these, only three were created after 1975 
in  Europe,  compared  with  26  in  the  US  and 21  in  emerging  markets.  T  Philippon, N  Veron,  Bruegel 
Policy Brief 2008/1. 
As evidenced in the Communication from the Commission: "A European Initiative for the development 
of microcredit" COM(2007)0708 final (adopted 20/12/2007). 
'Business Dynamics: Start-ups, Business Transfers and Bankruptcy' 
http://ec.europa.eu/enterprise/policies/sme/business-
environment/files/business_dynamics_final_report_en.pdf. 

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the  Commission's  Review  of  the  Small  Business  Act12  identified  a  continued  need  for 
improvements on national and European level.  

Each  SME  is  different:  their  variations  in  size,  field  of  activity  and  legal  form  require  the 
appropriately  adapted  attention  of  policymakers.'13  This  principle  applies  equally  to  liberal 
professions  and  individual  entrepreneurs  who  also  contribute  significantly  to  the  EU 
economy14. The principle of "think small first" must become the touchstone of European 
and national policies. 
We must work on ensuring that being an entrepreneur is an attractive prospect for Europeans. 
This  also  includes  social  entrepreneurs  whose  potential  is  often  underestimated15.  They 
generate  sustainable  jobs  and  have  demonstrated  a  stronger  resilience  to  the  crisis  than  the 
general economy. Social entrepreneurs are innovators, drive social inclusion and contribute to 
achieving the objectives of the EU2020 strategy 
The  current  situation  can  only  be  transformed  with  bold  and  co-ordinated  action  by  all 
administrations at European, national and regional levels.  

This Action Plan is a blueprint for decisive joint action to unleash Europe's entrepreneurial 
potential, to remove existing obstacles and to revolutionise the culture of entrepreneurship in 
Europe. It aims to ease the creation of new businesses and to create a much more supportive 
environment for existing entrepreneurs to thrive and grow.  

It proposes three areas for immediate intervention: 

1. Entrepreneurial education and training to support growth and business creation 

2.  Strengthening  framework  conditions  for  entrepreneurs  by  removing  existing  structural 
barriers and supporting them in crucial phases of the business lifecycle,  

3.  Dynamising  the  culture  of  entrepreneurship  in  Europe:  nurturing  the  new  generation  of 
entrepreneurs. 

2. 

2.1. 

ACTION  PILLAR  1  –  ENTREPRENEURIAL  EDUCATION  AND  TRAINING  TO  SUPPORT 
GROWTH AND BUSINESS CREATION 

New  foundations:  increasing  the  prevalence  and  quality  of  entrepreneurial 
learning… 

Investing in entrepreneurship education is one of the highest return investments Europe 
can make. Surveys suggest that between 15% and 20% of students who participate in a mini-
company programme in secondary school will later start their own company, a figure that is 

12 
13 
14 

15 

COM(2011)78 final (adopted 23/02/2011), Review of the "Small Business Act" for Europe. 
Idem. 
Directive 2005/36/CE: "To the extent that they are regulated, … liberal professions, … are, according to 
this  Directive,  those  practised  on  the  basis  of  relevant  professional  qualifications  in  a  personal, 
responsible  and  professionally  independent  capacity  by  those  providing  intellectual  and  conceptual 
services in the interest of the client and the public." 
COM(2011)682  final  (adopted  25/102011)  "Creating  a  favourable  climate  for  social  enterprises,  key 
stakeholders  in  the  social  economy  and  innovation".  A  social  enterprise  is  an  operator  in  the  social 
economy whose main objective is to have a social impact rather than make a profit for their owners or 
shareholders. 

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about three to five times that for the general population16. Whether or not they go on to found 
businesses  or  social  enterprises,  young  people  who  benefit  from  entrepreneurial  learning, 
develop  business  knowledge  and  essential  skills  and  attitudes  including  creativity, 
initiative, tenacity, teamwork, understanding of risk and a sense of responsibility. This is 
the  entrepreneurial  mind-set  that  helps  entrepreneurs  transform  ideas  into  action  and  also 
significantly increases employability.  

Entrepreneurship is a key competence in the European Framework17, and an action in both the 
recent Rethinking Education Commission Communication18. The role of entrepreneurship as 
an instrument to improve employability levels is also stressed in the Annual Growth Survey 
201319.  A  number  of  Member  States  have  successfully  introduced  national  strategies  for 
entrepreneurship  education  or  made  entrepreneurial  learning  a  mandatory  part  of  curricula. 
but  more  is  needed.  Education  should  be  brought  to  life  through  practical  experiential 
learning  models  and  experience  of  real-world  entrepreneurs.  Defined  entrepreneurial 
learning outcomes for all educators are needed, to introduce effective entrepreneurial learning 
methodologies into the classroom.  

Practical  entrepreneurial  experiences  can  also  be  gained  outside  education.  Young  people 
should  be  encouraged  to  develop  entrepreneurial  skills  through  informal  and  non-formal 
education  like  volunteering.  Such  experiences  should  also  be  validated  and  recognized,  in 
accordance with the proposed Commission recommendation in this area20. 

Partnerships with businesses can ensure that education and training curricula are relevant to 
the  real  world.  Initiatives  such  as  the  VET21-Business  forum  and  Sector  Skills  Alliances22 
provide  routes  to  involve  business.  Education  institutions  should  be  encouraged  to  become 
more entrepreneurial in their wider approach, to ensure that they develop and live a culture of 
entrepreneurship and innovation through their missions, leadership, stakeholder engagement, 
curricula and learning outcomes.  

2.2.  …and new frontiers: higher education for entrepreneurship 

The role of higher education in entrepreneurship goes far beyond the delivery of knowledge to 
participating  in  ecosystems,  partnerships  and  industrial  alliances.  With  high-tech  and  high-
growth enterprises increasingly becoming a focus of entrepreneurship-related public policies, 
higher  education  institutions  are  an  active  component  of  the  innovation  policies  of  Member 
States and EU. 

The European Institute of Technology (EIT) has pioneered the role of entrepreneurship as a 
key enabler of innovation on EU level and is helping to bridge the gap between education and 
innovation  for  industry.  A  number  of  start-ups  have  already  been  created  out  of  the  EIT's 
Knowledge  and  Innovation  Communities  (KICs).  EIT  programmes  ensure  that  students  are 
exposed  to  excellence-driven  science  with  entrepreneurship  education,  business  creation 
services, and mobility schemes. Partnerships can provide a powerful platform for addressing 

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C.  Jenner,  'Business  and  Education:  Powerful  Social  Innovation  Partners',  Stanford  Social  Innovation 
Review (Aug. 27, 2012). 
The  Recommendation  of  the  European  Parliament  and  of  the  Council  of  18  December  2006  on  key 
competences for lifelong learning. 
COM (2012) 669 http://ec.europa.eu/education/news/rethinking_en.htm.  
See p11, Annual Growth Survey COM(2012) 750 http://ec.europa.eu/europe2020/pdf/ags2013_en.pdf.  
COM(2012) 485.  
VET – vocational education and training. 
http://ec.europa.eu/education/news/20120425_en.htm.  

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the  entrepreneurship  skills  of  various  sectors  by  directly  involving  in  the  provision, 
application and updating of skills.  

Universities  should  become  more  entrepreneurial.23  Against  this  backdrop,  the  European 
Commission  in  collaboration  with  OECD  has  already  developed  a  framework  for 
entrepreneurial universities. The framework is designed to help interested universities assess 
themselves and improve their capability with tailor-made learning modules. The access to the 
framework will be expanded gradually.  

The Commission will: 

• 

• 

• 

• 

• 

• 

Develop  a  pan-European  entrepreneurial  learning  initiative  bringing  together 
existing  European  and  national  expertise  for  impact  analysis,  knowledge  sharing, 
development  of  methodologies  and  peer  mentoring  between  practitioners  from 
Member States.  

Reinforce  co-operation  with  the  Member  States  to  assess  the  introduction  of 
entrepreneurship education in each country based on real experience and to support 
public administrations wishing to learn from successful peers. 

Establish,  jointly  with  the  OECD,  a  guidance  framework  to  encourage  the 
development of entrepreneurial schools and VET institutions24.  

Promote the recognition and validation of entrepreneurial learning in an informal or 
non-formal learning environment25. 

Disseminate  the  entrepreneurial  university  guidance  framework  in  early  2013; 
facilitate  exchange  between  universities  interested  in  applying  the  framework; 
gradually promote it to the EU Higher Education Institutions; 

Endorse successful mechanisms of university-driven business creation (spin-offs etc.) 
and emerging university-business ecosystems around key societal challenges. 

The Member States are invited to: 

• 

• 

• 

23 

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26 

Ensure  that  the  key  competence  "entrepreneurship"  is  embedded  into  curricula 
across primary, secondary, vocational, higher and adult education before the end of 
2015. 

Offer the opportunity to young people to have at least one practical entrepreneurial 
experience26 before leaving compulsory education, such as running a mini-company, 
being responsible for an entrepreneurial project for a company or a social project  

Boost entrepreneurial training for young people and adults in education by means 
of Structural Funds resources in line with national job plan, .notably the European 
Social Fund (ESF) in line with National Job Plans, particularly as a tool for second 

Cf.  Gibb  A,  Haskins  G,  Robertson  I,  Leading  the  Entrepreneurial  University,  University  of  Oxford, 
2009. 
Please see recent Rethinking Education Communication COM(2012) 669, section 2.1. 
COM(2012) 485 final, 05.09.2012. 
Please see recent Rethinking Education Communication COM(2012) 669, section 2.1. 

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chance education for those not engaged in education, employment or training. Take 
full  advantage  of  the  training  possibilities  available  under  the  rural  development 
fund - European Agricultural Fund for Rural Development (EAFRD). 

Promote  entrepreneurial  learning  modules  for  young  people  participating  in 
national Youth Guarantee schemes.27 

ACTION  PILLAR  2  –  CREATE  AN  ENVIRONMENT  WHERE  ENTREPRENEURS  CAN 
FLOURISH AND GROW 

• 

3. 

New businesses need specific care. There are six key areas where action is needed to remove 
existing obstacles impeding their creation and growth:  

• 

• 

• 

• 

• 

• 

Access to finance  

Support  for  entrepreneurs  in  the  crucial  phases  of  the  business  lifecycle  and  their 
growth 

Unleashing new business opportunities in the digital age  

Transfers of businesses  

Bankruptcy procedures and second chance for honest entrepreneurs 

Regulatory burden reduction.  

3.1. 

Better access to finance  

Without adequate funding and without liquidity, no business can operate, invest and grow – 
indeed, access to  finance is one of the levers for growth for  SMEs.28 According to a public 
consultation launched by the Commission in July 2012, access to finance constitutes one of 
the  most  significant  constraints  on  growth  and  entrepreneurship  in  Europe.  SMEs  have 
historically relied on bank lending and consequently the current bank credit constraints due to 
the  crisis  have  a  disproportionate  impact  on  SMEs.  In  addition  to  this,  entrepreneurs 
particularly  have  difficulties  raising  finance  in  the  early  stages  of  their  businesses.  In 
December  2011  the  European  Commission  presented  an  Action  Plan  to  improve  access  to 
finance  for  SMEs29  and  proposals  on  venture  capital  funds  and  social  entrepreneurship 
funds.30 Particular attention has also been given to SMEs in Financial Instruments Directive31 
and  in  the  final  negotiations  on  Capital  Requirements  Directive32.  However,  more  must  be 

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Proposal for a Council Recommendation on Establishing a Youth Guarantee, COM(2012) 729. 
COM(2011)206  final,  "Single  Market  Act.  Twelve  levers  to  boost  growth  and  strengthen  confidence. 
Working together to create new growth". 
COM(2011) 870 Final, An action plan to improve access to finance for SMEs. 
Proposal  for  a  Regulation  of  the  European  Parliament  and  of  Council  on  European  Venture  Capital 
Funds, COM(2011)860 final; Proposal for a Regulation of the European Parliament and of the Council 
on European Social Entrepreneurship Funds, COM(2011)862 final. 
Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in 
financial  instruments  amending  Council  Directives  85/611/EEC  and  93/6/EEC  and  Directive 
2000/12/EC of the European Parliament and of the Council and repealing Council Directive 93/22/EEC. 
Proposal for a Directive of the European Parliament and of the Council on the access to the activity of 
credit  institutions  and  investment  firms  and  amending  Directive  2002/87/EC  of  the  European 

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done  at  both  European  and  national  levels  to  overcome  market  deficiencies,  including 
exploring alternatives to bank lending for SMEs, to complement the limited private financing 
available and to make information on funding more easily available.  

for 

testing,  demonstrating  and  piloting  new 

It  is  also  important  to  increase  the  quality  and  financial  returns  of  start-up  projects. 
technologies, 
Financial  support 
strengthening venture capital, angel investments, incubators and loans for high potential 
SMEs  are  some  of  the  areas  where  action  is  possible.  Entrepreneurs  need  funds  to 
commercialise  research  and  development  and  test  innovative  business  models.  Support 
for  these  areas  is  proposed  by  the  Commission  under  the  future  Programme  for  the 
Competitiveness  of  Enterprises  and  SMEs  (COSME)33  and  Horizon  2020,  and  are 
reinforced under the European Structural Funds34. 

Social  economy  actors  and  social  enterprises  are  important  drivers  of  inclusive  job  creation 
and social innovation. While they face similar problems as most SMEs, they may encounter 
additional  difficulties,  accessing  finance  which  the  Commission  addressed  in  the  future 
Programme for Social Change and Innovation (PSCI) as well as in the Structural Funds 
regulations35.  

An  important  component  of  a  successful  entrepreneurial  ecosystem  consist  of  an  array  of 
early stage investors (venture capitals and business angels) that provide seed and first round 
equity investments. These investors use an extensive network of peers and provide valuable 
knowledge and support about the market and the development of the venture "smart money". 
These investments may also be spurred by fiscal incentives. 

In  2008  the  Commission  created  the  Enterprise  Europe  Network,  a  partnership  with  over 
600  hosting  organisations,  one  of  whose  tasks  is  to  provide  businesses  and  would-be 
entrepreneurs  with  the  necessary  information  on  access  to  EU  funding  and  EU  finance.  To 
date, better information on EU support is still a major business request. The Commission 
is  working,  together  with  stakeholders,  to  strengthen  the  Network  to  make  it  more  active 
and effective. 

The Commission will: 

• 

• 

33 

34 

35 

Finance  programmes  aimed  at  developing  a  market  for  microfinance  in  Europe, 
through  initiatives  as  Progress  Microfinance  and  the  Joint  Action  to  Support 
Microfinance  Institutions  (JASMINE)  initiative  and  make  resources  for  micro-
financing available to Member States and regions via the European Social Fund or 
the European Regional Development Fund.  

Facilitate the direct access of SMEs to the capital market through the development of 
an  EU  regime  for  venues  specialised  in  the  trading  of  shares  and  bonds  issued  by 
SMEs  ("SMEs  growth  markets"),  in  the  context  of  the  review  of  the  Market  in 
Financial Instruments Directive (MiFID) 

Parliament  and  of  the  Council  on  the  supplementary  supervision  of  credit  institutions,  insurance 
undertakings and investment firms in a financial conglomerate. 
Proposal  for  a  regulation  establishing  a  Programme  for  the  Competitiveness  of  Enterprises  and  small 
and medium-sized enterprises (2014-2020), COM(2011) 834 final.  
According  to  the  Commission  proposal  for  the  future  Structural  Funds,  comprehensive  strategies  for 
inclusive  start-up  support  must  be  in  place  in  order  to  obtain  ESF  or  ERDF  investments  in 
entrepreneurship. (COM/2012/0496 final - 2011/0276 (COD). 
See the legislative proposal:  
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52011PC0609:EN:NOT.  

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The Member States are invited to:  

• 

• 

• 

Assess  the  need  of  amending  current  national  financial  legislation  with  the  aim  of 
facilitating new, alternative forms of financing for start-ups and SMEs in general, in 
particular as regards platforms for crowd funding, as well as consider the need for 
simplification  of  tax  legislation  to  stimulate  further  development  of  alternative 
financial markets like for example business angel investments.  

Make  use  of  structural  funds'  resources  to  set  up  microfinance  support  schemes 
under  the  respective  investment  priorities  of  the  European  Social  Fund  (ESF)  and 
the European Regional Development Fund (ERDF).  

Utilise  the  full  potential  under  the  EAFRD  to  ensure  access  to  financing  of 
entrepreneurship, in particular at an early stage of the business in agriculture (such 
as  setting  up  of  young  farmers)  and  in  rural  areas  in  general,  also  by  means  of 
financial instruments. 

3.2. 

Supporting  new  businesses  in  crucial  phases  of  their  lifecycle  and  help  them 
grow  

About 50% of new businesses fail during their first five years. If European entrepreneurs 
are to be able to deliver the growth we expect from them, we must devote greater resources to 
helping  them  to  get  through  this  period.  Businesses  often  lack  an  appropriate  ecosystem 
that will enable them to grow. 

Vital  lifelines  can  be  provided  by  support  services  that  know  their  markets  and  thus 
significantly increase the success rate of new enterprises. Effective support consists of holistic 
programmes  that  integrate  the  essential  elements  like  management  training,  R&D  coaching, 
and  networking  with  peers,  potential  suppliers  and  clients.  Entrepreneurs  increasingly  need 
advice  and  support  in  dealing  with  resource  constraints  and  supply  insecurity  through 
strategic  investment  and  product  development.  Many  smaller  enterprises  are  also  under 
increasing  pressure  from  the  companies  they  supply  to  meet  new  standards  and  design 
requirements linked to improved resource efficiency and recyclability. 

Reducing  tax  compliance  costs  would  improve  the  business  environment,  in  particular 
for  small  firms.  Given  their  limited  resources  and  experience,  small  and  newly  created 
businesses suffer more from high compliance costs arising from complex tax legislation and 
cumbersome tax reporting procedures than large corporations do. Member States should also 
consider simplifying VAT registration procedures and create one-stop electronic registration 
to facilitate cross-border digital commerce by small businesses. 

Many new ideas for successful businesses come from science and research but more can be 
done to make business use research results. Therefore more information on the insights from 
projects  financed  by  the  Framework  Programmes  for  Research  and  Development  should  be 
shared with businesses.  

New  businesses  often  fall  victim  to  misleading  marketing  practices.  They  range  from 
providing  false  or  misleading  information  about  the  service  to  sending  offers  disguised  as 
invoices  or  misleading  forms  asking  for  updates  in  business  directories.  The  Commission 

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published a strategy36 with a detailed list of actions for the future to increase the protection of 
businesses, and it intends to present a legislative proposal in the course of 2013. 

Removing obstacles to the Single Market and thereby creating a level playing field will 
help  small  businesses  develop  cross-border  activities.  This  includes  tackling  double 
taxation  and  removing  tax  mismatches  and  other  tax  measures  that  constitute  cross  border 
obstacles on the single market and for foreign investment in the EU.  

Moreover,  in  most  of  the  EU,  the  legal  frameworks  for  social  security  of  self-employed 
persons  differ  substantially  from  that  for  the  employed,  creating  additional  barriers  to 
entrepreneurs.  Support  for  new  business  is  particularly  important  for  transitions  from 
unemployment to self-employment. Arrangements to make it easier for people who depend on 
welfare  benefits  (such  as  unemployment  benefit)  to  start  their  own  business  and  become 
economically  independent  (welfare  bridges)  can  help.  Therefore,  Member  States  could 
explore  the  possibility  for  the  self-employed  to  receive  benefits  (e.g.  health,  retirement, 
disability,  unemployment  benefit  in  case  of  business  closure/bankruptcy,  etc.)  that  are 
comparable to the benefits for employed workers without reducing those of the latter.  

To thrive, entrepreneurs and SMEs need specific, customised expertise that can help them 
develop competitive advantages and benefit from global value chains and shared management 
of  human  resources.  Clusters,  business  networks  and  other  types  of  association  of 
enterprises can provide such supportive environments as they bring together the relevant 
actors  from  business,  education,  research  and  the  public  sector37.  Among  SMEs,  some 
companies, such as social enterprises, often have specific business models requiring dedicated 
support  schemes.  Grouping  SMEs  may  lead  to  an  increase  in  competitiveness.38  Therefore, 
Member States could consider whether their tax regimes could be improved to allow for more 
such SME groups. 

Additionally,  entrepreneurs  can  greatly  benefit  from  the  Single  Market.  However,  at  the 
moment, the good operation of the Single Market is still hampered by some barriers. On the 
3rd of October 2012 the European Commission issued the Single Market Act II39 to reduce 
current barriers. Effective implementation of these measures can promote entrepreneurship 
in Europe, in areas such as cross-border services, recognition of diplomas and qualifications, 
and right of establishment.  

Moreover,  exchanges  with  knowledgeable  entrepreneurs  within  the  EU  should  be 
encouraged,  such  as  through  the  Commission's  Erasmus  for  Young  Entrepreneurs  (EYE) 
scheme.  

The Commission will:  

• 

36 

37 

38 

39 

Identify  and  promote  Member  States  best  practices  with  a  view  to  create  a  more 
entrepreneur-friendly fiscal environment.  

COM(2012)702  "Protecting  businesses  against  misleading  marketing  practices  and  ensuring  effective 
enforcement; Review of Directive 2006/114/EC concerning misleading and comparative advertising". 
The  Concept  Of  Clusters  And  Cluster  Policies  And  Their  Role  For  Competitiveness And  Innovation: 
Main Statistical Results And Lessons Learned, Commission Staff Working Document SEC(2008) 2637. 
European  Cluster  Policy  Group  Final  Recommendations,  recommendation  5,  athttp://www.proinno-
europe.eu/sites/default/files/newsroom/2010/09/ECPG_Final_Report_web-low1.pdf,,  following  up  on 
recommendations of the European Cluster Alliance. 
COM(2012) 573 final, "Single Market Act II – Together for new growth". 

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• 

• 

• 

• 

• 

• 

• 

• 

• 

Support the cooperation between clusters and business networks; 

Support  the  networking  and  exchange  of  best  practice  between  agencies  running 
schemes on resource efficiency for SMEs; 

Reinforce  the  partnership  of  the  Enterprise  Europe  Network  with  hosting 
organisations, the Single Points of Contact and all SME support organisations to (i) 
widely spread information on EU initiatives, on sources of finance, and on support 
for  innovation,  (ii)  encourage  Member  States  to  reinforce  measures  to  increase 
investment  readiness  of  entrepreneurs  and  SMEs  and  (iii)  provide  effective 
assistance  to  help  businesses  fully  benefit  from  the  Single  Market  and  help  access 
markets in third countries. 

Revise the rules prohibiting certain misleading marketing practices40 to make them 
more  robust  and  strengthen  enforcement  against  such  practices  in  cross-border 
cases. 

Unlock the full potential of the Digital Single Market for SMEs by tackling existing 
barriers to cross-border online business.41  

Continue  the  development  of  the  Erasmus  for  Young  Entrepreneurs  programme  to 
meet  the  increased  demand  for  participation  from  new  entrepreneurs  across  the 
Single Market42  

Encourage exchanges of young entrepreneurs between the EU and third countries 

Help Member States develop integrated support schemes through capacity building 
seminars  financed  by  ESF  technical  assistance,  involving  relevant  stakeholders 
including  education  and  training  providers  to  develop  integrated  strategies  and 
setting up of specific actions, notably for young entrepreneurs. 

Continue to develop the Your Europe Business portal with information on the Single 
Market from both the Commission and Member States. 

The Member States are invited to: 

• 

40 
41 

42 

Make  the  national  tax  administration  environment  more  favourable  to  early  stage 
business.  Reduce  the  cost  of  tax  compliance  by  simplifying  tax  filing  and  tax 
payment,  by  extending  the  use  of  electronic  means,  including  speeding  up  the  full 
implementation of the Digital Single Market. 

Directive 2006/114/EC concerning misleading and comparative advertising. 
Including, for example, a mini "one-stop-shop" for VAT registration, declaration and payment as in the 
Commission Communication on the future of VAT (IP/11/1508). 
In 2013 demand from New Entrepreneurs will exceed available budget: as of end-December 2012 there 
were about 950 New Entrepreneurs eligible for an exchange while the available budget could allow for 
about 930 exchanges. Given that the pool of New Entrepreneurs eligible for an exchange is growing on 
average by 25 entrepreneurs every week it is obvious that demand will exceed supply in 2013. Already 
in  2012,  a  number  of  Intermediary  Organisations  had  used  up  their  allocated  budget  and  could  not 
anymore establish exchanges.  

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• 

• 

• 

• 

• 

• 

Promote tax coordination to ensure that inconsistencies in tax treatment do not lead 
to double taxation or other harmful tax practices that impede the Single Market by 
hampering cross-border businesses and cross-border venture capital investments. 

Reassess corporate income tax regimes to consider extending the statute of limitation 
of losses and deductions in the Corporate Income Tax. 

Consider  implementing  as  from  2013  the  option  offered  for  small  businesses  of  a 
cash accounting scheme for VAT. 

Adopt  the  necessary  measures  to  support  the  commercialisation  of  innovation, 
research  and  development  projects  taking  into  account  the  special  challenges  of 
newly established firms. 

Consider the option for owners of new enterprises to request possible adjustments of 
payment  schedules  for  social  contributions  for  a  limited  time  and  based  on  the 
specific situation of the firm and sound justifications. 

Take  full  advantage  of  the  newly  introduced  support  options  under  the  European 
Agricultural  Fund  for  Rural  Development  (EAFRD)  for  business  start-up  and 
development  of  comprehensive  schemes  for  professional  exchange  of  entrepreneurs 
and  farm  visits,  also  supporting  clusters,  business  networks  and  co-operation 
activities  in  agriculture,  forestry,  agro-food  processing  and  among  rural  non-
agricultural businesses. 

3.3. 

Unleashing new business opportunities in the digital age  

Better  use  of  information  and  communication  technology  (ICT)  can  significantly  help 
new  businesses  to  thrive.  ICT  is  the  key  source  of  growth  for  national  economies  and 
European SMEs grow two to three times faster when they embrace ICT. As indicated in the 
Commission  Industrial  Policy  Communication43,  "entrepreneurs  need  to  exploit  the  full 
potential of the digital single market in the EU that is expected to grow by 10% a year up to 
2016."  

Based on the Digital Agenda and the Industrial policy flagship initiatives, the Commission 
will help entrepreneurs and SMEs to fully exploit the potential of ICT, both in terms of supply 
of  new  digital  products  and  services,  and  in  terms  of  demand  and  smart  use  of  these 
technologies. 

On the supply side, Web entrepreneurs constitute a specific category of entrepreneurs who 
create new digital services and products that use the web as an indispensable component. Web 
start-ups  tend  to  grow  and  fail  faster  than  other  businesses  and  scale  exponentially,  which 
translates  into  higher  rewards  but  also  higher  risks.  They  operate  in  a  complex  and  fast 
moving  eco-system,  where  networking  and  experimenting  is  paramount.  Web  start-ups  are 
cheaper to set-up and the entry barriers are low, making them an attractive vehicle to start an 
entrepreneurial career. Web entrepreneurs require for that reason tailored support measures to 
structurally strengthen the web start-up ecosystem. 

43 

A Stronger European Industry for Growth and Economic Recovery, Industrial Policy Communication 
Update, COM(2012)582 of 10 October 2012. 

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On the demand side, investing in digital technologies is no longer a choice: companies can 
nowadays only be competitive when they embrace the digital world. This poses opportunities 
and  challenges,  in  particular  for  SMEs,  since  they  are  often  less  equipped  to  deal  with  the 
increased sophistication of new business models. 

Digital entrepreneurs are those entrepreneurs that fully exploit digital products and services, 
including  "cloud  computing",  to  reinvent  their  business  models  and  sharpen  their 
competitiveness44.  The  EU initiatives  “Smart  use  of  information  technologies  and  the 
integration of SMEs in global industrial value chains”, and e-Skills will promote the uptake of 
digital technologies and connect SMEs to the digital world. 

The  potential  of  e-commerce  as  a  part  of  the  Digital  Single  Market  opportunities  for 
entrepreneurs is still not fully tapped. A number of specific actions will enhance trust towards 
online trade.45 

The Commission will: 

• 

• 

• 

• 

• 

44 
45 

46 

Foster the knowledge base on major market trends and innovative business models, 
by  establishing  an  online  Market  Monitoring  Mechanisms  and  a  Scoreboard,  in 
cooperation with the main stakeholders, to facilitate dialogue and lead to a shared 
agenda for action. 

Raise  awareness  through  a  Europe-wide  information  campaign  for  entrepreneurs 
and SMEs on the benefits from the new digital evolutions; the campaign will promote 
European  success  stories,  pan-European  contests  and  prize  award  schemes  to 
sensitise  entrepreneurs  on  the  changing  business  landscape  and  new  business 
opportunities.  

Facilitate  networking  to  sparkle  and  support  new  business  ideas,  such  as:  the 
creation  of  a  European  Mentors  Network  for  training,  advice  and  hands-on 
coaching on how to do business in the digital age, and match-making events among 
stakeholders to explore new partnerships.  

Launch  specific  actions  for  Web  entrepreneurs  such  as:  i)  a  Start-up  Europe 
Partnership  to  unlock  expertise,  mentoring,  technology  and  services,  ii)  a  Web 
Entrepreneurs  Leaders  Club  to  bring  together  world-class  web  entrepreneurs  and 
strengthen  the  web  entrepreneurial  culture  in  Europe;  iii)  a  European  network  of 
web business accelerators; iv) work with European investors in order to increase the 
flow of venture capital and crowd-funding into web start-ups; and v) Fostering web 
talent  by  stimulating  the  emergence  of  Massive  Online  Open  Courses46  and  the 
setting up of platforms for mentoring, and skill building. 

Strengthen competences and skills by intensifying its E-skills actions to improve e-
leadership  skills,  scientific  and  creative  disciplines,  and  managerial  and 
entrepreneurial skills to address new technological and markets. 

COM(2012)529 "Unleashing the Potential of Cloud Computing in Europe". 
COM(2011)942  of  11  January  2012.  A  coherent  framework  for  building  trust  in  the  Digital  Single 
Market for e-commerce and online services. 
See for example http://www.radicalsocialentreps.org/, 
http://www.youtube.com/watch?v=iE7YRHxwoDs and http://www.academicmatters.ca/2012/05/the-
massive-open-online-professor/ 

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The Member States are invited to: 

• 

• 

• 

• 

• 

Reinforce  national  or  regional  support  for  digital  and  web  start-ups  and  foster 
alternative  financing  for  early-stage  technology  start-ups,  such  as  ICT  innovation 
voucher schemes. 

Promote access for entrepreneurs to Open Data and Big Data compiled in public or 
industry-backed programs such as the cultural data set Europeana. 47 

Support  the  most  talented  entrepreneurs,  e.g.  by  encouraging,  the  brightest 
graduates to begin their career in start-ups. 

Support the swift adoption of on-going policy initiatives such as the data protection 
reform  and  the  proposal  for  a  Common  European  Sales  Law  which  will  lower 
barriers to the uptake of cloud computing in the EU. 

Ensure  the  best  use  of  European  funds  for  web  and  digital  entrepreneurship 
according to the applicable rules and priorities.  

3.4. 

Easier business transfers  

Every year approximately 450,000 firms with 2  million employees are transferred across 
Europe.  Yet  it  can  be  so  difficult  to  make  a  transfer  that an  estimated  150,000  companies 
with  600,000  jobs  may  be  lost  each  year.48  The  main  factors  of  this  are  regulatory  or  tax 
burdens,  lack  of  awareness  of  needed  preparations  and  of  transparent  markets  for  such 
transactions, and the long time periods needed to comply with formalities. Moreover, the legal 
form  of  a  company  (sole  proprietorships)  as  well  as  its  age  (especially  companies  less  than 
three years old) are additional elements of vulnerability. That's why the smallest businesses 
are the most exposed to failed transfers.  

These businesses are 'going concerns' with established products, markets and customers and 
so have a higher probability of survival than new firms. Would-be entrepreneurs should know 
that the acquisition of a 'going concern' may be an attractive alternative to starting a new 
business. Transfers should be made easier for both the entrepreneur who wishes to pass on 
his or her business and the acquirer.  

Transferring  a  business  from  one  generation  to  the  next  is  the  defining  feature  of  a  family 
business  and  the  greatest  challenge  that  it  can  face.  A  family  business  transfer  must  be 
considered  as  a  transfer  of  ownership,  where  that  ownership  is  not  a  liquid  asset  but 
something which is built up and developed by the family over generations, including values, 
traditions and know how. The scope and scale of diverse approaches to inheritance and estate 
taxes across the EU demonstrate that there is still much room for improving the legal climate 
for family business transfers. 

47 

48 

http://Europeana.eu is a cultural portal, created with the support of the European Commission, that acts 
as  an  interface  to  millions  of  books,  paintings,  films,  museum  objects  and  archival  records  that  have 
been digitised throughout Europe. 
'Business Dynamics: Start-ups, Business Transfers and Bankruptcy' (2011)  
http://ec.europa.eu/enterprise/policies/sme/business-
environment/files/business_dynamics_final_report_en.pdf. 

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The  area  of  business  transfers  has  been  specifically  addressed  by  the  Small  Business  Act 
 and the Review of the SBA for Europe of 201150 and was specifically addressed in 
(SBA)49
the Commission Communication of 2006, "Implementing the Lisbon Community Program 
for Growth and Jobs: Transfer of Businesses - Continuity through a new beginning"51.  

Although  some  European  countries  have  made  progress  and  a  more  transfer-friendly 
regulatory  framework  has  been  developed,  even  in  those  countries  there  may  still  be  low 
awareness of the entrepreneurial community and stakeholders (professional associations, 
legal firms and consultants to entrepreneurs) about possibilities for transfer and about needed 
preparations.  

As the barriers to successful business transfers are largely to be found at local, regional and 
national levels, it can clearly be worthwhile comparing approaches across Europe with a view 
to exchanging best practices and to take actions, notably in terms of awareness raising for 
business  transfers,  special  financial  facilities  designed  to  finance  transfers,  legal 
transformation  (notably  the  possibility  to  create  public  limited  companies  facilitating  the 
selling of a firm) and transparent markets for business transfers.52  

The Commission will: 

• 

Develop  guidelines  on  the  most  effective  programmes  and  best  practices  to  make 
business  transfers  easier,  including  measures  for  deepening  and  expanding  the 
markets  for  enterprises,  mapping  available  programmes  in  Europe  and  proposing 
necessary  actions  to  remove  remaining  possible  barriers  to  cross-border  business 
transfers. To this effect, the Commission is organising an expert working group with 
Member States representatives which in 2013 will aim at performing a stock-taking 
and  analysis  of  the  reasons  for  remaining  barriers  in  this  area  and  proposing 
recommendations and support measures addressing these barriers.  

The Member States are invited to: 

• 

• 

• 

49 
50 
51 
52 

53 

Improve legal, administrative, and tax provisions for transfers of business taking into 
account  the  2006  Commission  Communication  on  transfers  of  businesses  and  the 
2011 Commission Communication on tackling cross-border inheritance tax obstacles 
within the EU53. 

Use  existing  European  funds  according  to  their  applicable  rules  and  priorities  to 
support transfers of small and medium-sized businesses to entrepreneurs intending to 
continue running the business.  

Improve  information  and  advice  services  for  business  transfers  as  well  as  improve 
data collection on and monitoring of business transfers. 

COM(2008) 394 final. - “Think Small First” A“Small Business Act” for Europe. 
COM(2011) 78 final Review of the “Small Business Act” for Europe. 
COM(2006) 117 final. 
For example, according to the 'Business Dynamics' study, only 1/3 of Member States surveyed offered 
special financial products to support transfers and in a dozen Member States little or no mentoring or 
training on the subject was available. 
COM/2011/864  and  associated  recommendation  2011/856/EU  regarding  relief  for  double  taxation  of 
inheritances. 

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• 

• 

Effectively  publicise  business  transfer  platforms  and  marketplaces  and  launch 
campaigns  to  raise  awareness  among  potential  sellers  and  buyers  of  viable 
businesses. 

Consider  reviewing  tax  regulation  with  respect  to  its  impacts  on  the  liquidity  of  a 
small or medium-sized family business in case of a succession of ownership without 
impacting revenues negatively. 

3.5. 

Turning failure into success: second chances for honest bankrupts 

Business failure, like business creation, is part of a dynamic, healthy market. Evidence shows 
that by far the majority (96%) of bankruptcies are due to a string of late payments or 
other objective problems – they are, in other words 'honest failures', without any fraud  by 
the entrepreneur.54 Entrepreneurs are nevertheless treated by many bankruptcy laws as if they 
were fraudulent, having to go through complex procedures before they can be discharged. In 
some  Member  States  the  procedure  may  take  such  a  long  time  that  entrepreneurs  will  not 
consider another business venture55. In some cases they may be legally barred from starting a 
new enterprise for much or all of their lifetimes.  

Even after a discharge, former bankrupts are stigmatised and have difficulties financing a new 
enterprise. Therefore, many potential entrepreneurs simply give up and do not consider trying 
again. 

Yet  research  shows  that  'second  starters'  are  more  successful  and  survive  longer  than 
average  start-ups;  they  grow  faster  and  employ  more  workers56.  Thus,  a  failure  in 
entrepreneurship  should  not  result 
in  a  "life  sentence"  prohibiting  any  future 
entrepreneurial activity but should be seen as an opportunity for learning and improving 
– a viewpoint that we already today fully accept as the basis of progress in scientific research. 
Consequently,  any  move  to  encourage  a  new  generation  of  entrepreneurs  must  include 
reassurance that, if their first idea does not fly, they will not be forever barred from trying to 
'take off' again. Thus bankruptcy laws must provide for swift, efficient ways of lodging and 
recovering  claims  for  creditor  enterprises,  while  faster  and  more  affordable  procedures  for 
winding up businesses and for discharge from bankruptcy should be put in place. 

The  Commission  adopted  last  December  a  Communication  on  a  new  European  approach  to 
business failure and insolvency57 to create a more business friendly environment, for example 
by improving the efficiency of national insolvency laws including the length and costs of the 
period of discharge from bankruptcy. As a first step to be taken, the Commission also adopted 
at  the  same  time  a  proposal  for  the  modernisation  of  the  Regulation  on  insolvency 
proceedings58 which will ensure cross-border recognition of the rescue of enterprises and also 
includes facilitating the lodging of claims in another Member State.  

The Commission will: 

54 
55 

56 

57 
58 

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2007:0584:FIN:en:PDF. 
In  some  Member  States  liquidation  procedure  of  the  business  takes  approximately  1-2  years.  An 
additional 3 to 9 years are needed to start again business. 
E. Stam, D. B. Audretsch and J. Meijaard, "Renascent Entrepreneurship", Erasmus Research Institute of 
Management, 2006.  
COM(2012) 742 "A new European approach to business failure and insolvency". 
COM(2012) 744. 

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• 

Launch a public consultation so as to receive views from stakeholders on the issues 
identified  in  the  Communication  on  a  new  European  approach  to  business  failure 
and  insolvency,  including  on  giving  honest  bankrupts  a  second  chance  and  on 
shortening and aligning the "time to discharge". 

The Member States are invited to:  

• 

• 

• 

Reduce  when  possible,  the  discharge  time  and  debt  settlement  for  an  honest 
entrepreneur after bankruptcy to a maximum of three years by 2013. 59 

Offer  support  services  to  businesses  for  early  restructuring,  advice  to  prevent 
bankruptcies and support for SMEs to restructure and re-launch.  

Provide advisory services to bankrupt entrepreneurs to manage debt and to facilitate 
economic  and  social  inclusion  and  develop  programmes  for  'second  starters'  for 
mentoring, training and business networking.  

3.6. 

Regulatory burden: clearer and simpler rules  

Entrepreneurs  should  be  the  'normal  customer'  for  whom  administrations  benchmark 
their  procedural  requirements  and  yet  nearly  three-quarters  of  Europeans  consider  it  too 
difficult  to  start  their  own  business  because  of  administrative  complexities60.  Many  more 
complained about heavy regulatory burdens imposed on the running of a business. Aware of 
this, in 2007 the Commission committed to an Action Programme to cut red tape stemming 
from  EU  legislation  by  25%  before  the  end  of  201261.  In  November  2011  the  Commission 
adopted its Report on minimising regulatory burden for SMEs – adapting EU regulation to the 
needs of micro-enterprises,62 which extended the focus to a far wider range of all regulatory 
burdens  beyond  the  administrative  burden  of  reporting  to  authorities,  and  introducing  the 
principle  of  reverse  burden  of  proof  for  any  new  regulatory  burden.  It  also  committed  the 
Commission to improved consultation with smaller businesses and the adoption of an annual 
scoreboard on progress towards implementation in Member States. 

The  Commission  has  tabled  proposals  beyond  the  target  of  25%  reduction  Measures 
worth  EUR  30.8  billion  in  annual  savings  for  businesses  have  been  adopted  by  the  EU 
legislator.  This  represents  25%  of  the  regulatory  burden,  which  has  been  estimated  at  EUR 
123.8 billion. Another 5.5% of burden reduction could be achieved if the additional proposals 
tabled by the Commission were adopted by the European Parliament and Council. 

59 
60 
61 

62 

As requested by the Conclusions from the May 2011 Competitiveness Council. 
EU Commission Flash Eurobarometer No 354 "Entrepreneurship". 
The  Action  Programme  to  eliminate  unnecessary  administrative  burdens  on  businesses  in  the  EU 
identified priority areas which generated around 80% of the administrative burden from EU legislation, 
including national rules implementing or transposing this legislation. In concert with the Stoiber Group 
which  served  as  an  independent  adviser,  hundreds  of  adaptations  were  proposed  that  have  already 
generated  over  €40  billion  in  annual  savings  for  ente rprises.  Proposals  involved  areas  ranging  from 
agriculture, environment, and fisheries to company law, tax, statistics, food safety and pharmaceuticals. 
The biggest "contributors" to the savings are tax law (moving from paper bills to electronic bills) and 
company law (exceptions for micro-enterprises from some provisions regarding the balance sheet and 
publication obligations). 
COM(2011)803 
and 
http://ec.europa.eu/governance/better_regulation/index_en.htm. 

Communication 

regulatory 

(REFIT!) 

fitness 

see: 

EU 

on 

EN 

18 

   EN 

                                                 
Notable savings have been realised in the areas of tax law (moving from paper to electronic 
billing) and company law (exceptions for micro-enterprises from some provisions on financial 
reporting  obligations).  For  instance,  the  Invoicing  Directive63  has  created  equal  treatment 
between  paper  and  e-invoices  and  no  longer  allows  Member  States  to  prescribe  a  certain 
technology for e-invoices64. Progress has also been made in modernising customs legislation, 
reducing statistical reporting obligations on SMEs, and an extensive range of areas across the 
Member States.65  

Reducing  unnecessary  or  excessive  regulatory  burden  remains  on  the  top  of  the 
Commission’s  political  agenda.  To  this  effect,  in  addition  to  conferences  being  held  in 
Member  States,  on  1  October  2012  a  public  consultation  was  launched  to  identify  the  ten 
most  burdensome  pieces  of  EU  legislation66.  The  outcome  of  this  consultation,  together 
with  more  specific  analysis,  will  be  taken  into  consideration  when  assessing  the  need  for 
reviewing EU regulation in specific areas.  

Regulatory obligations of businesses should be clear and simple. In addition to protecting 
public  and  workplace  health  and  safety  and  the  environment,  clear  regulatory  frameworks 
ensure  a  level  playing  field,  fair  and  free  competition,  business  certainty  and  market 
predictability. Smart regulation can also drive innovation putting European Companies in the 
lead in key technologies and services. However, duplicative or uncoordinated licensing should 
be eliminated. Similarly, burdensome formalities such as the request to prove the authenticity 
of  public  documents  (e.g.  corporate  records),  should  be  eliminated  for  business  activities 
inside the Internal Market.  

Red  tape  should  be  eliminated  or  reduced  wherever  possible  for  all  businesses  and 
particularly for micro-enterprises including the self-employed and the liberal professions, 
who are exceptionally vulnerable to the burdens of bureaucracy due to their smaller size and 
limited  human  and  financial  resources.  At  the  same  time,  remaining  undue  and  unjustified 
barriers to entry in liberal professions should be removed. 

In  the  area  of  public  procurement  SMEs  and  cross-border  bidders  are  hampered  by 
administrative requirements (e.g. provision of evidentiary documents), problems in obtaining 
information  and  sometimes  disproportionate  requirements  by  contracting  authorities.  The 
share  of  SMEs  winning  public  procurement  contracts  has  not  changed  significantly  since 
2002. The most significant factor affecting SME participation is the size of a contract – SMEs 
do  not  have  the  capacity  to  bid  for  or  fulfil  requirements  of  large  public  contracts  and  in 
general, contracts above €300,000 seem to be be yond their capacity. Use of lots for contracts 
with a total value above certain thresholds would increase the number of contracts accessible 
to SMEs. 

63 

64 

65 

66 

Council  Directive  2010/45/EU  of  13 July  2010  amending  Directive  2006/112/EC  on  the  common 
system of value added tax as regards the rules on invoicing. 
It  is  estimated  that  if  all  businesses  adopt  e-invoicing  savings  would  amount  to  €18  billion  in  the 
medium-term. 
For  a  compendium  of  best  practices  see  extensive  annexes  to  'Europe  can  do  better',  adopted  by  the 
High 
at 
http://ec.europa.eu/dgs/secretariat_general/admin_burden/best_practice_report/docs/bp_report_signatur
e_en.pdf.  
Consultation:  "Which  are 
http://ec.europa.eu/enterprise/policies/sme/public-consultation-new/index_en.htm. 

the  TOP10  most  burdensome  EU 

legislative  acts  for  SMEs?" 

administrative 

reducing 

burdens 

2011), 

Group 

Level 

(Nov 

on 

EN 

19 

   EN 

                                                 
Furthermore, the Commission recommends to Member States to continue modernising labour 
flexible  working 
markets  by  simplifying  employment 
arrangements, including short-time working arrangements.67 

legislation  and  developing 

In  addition,  businesses  should  be  able  to  count  on  expert  advice  and  assistance  whenever 
they  face  misapplied  Internal  Market  law,  an  area  where  the  Commission's  (SOLVIT) 
network has been active for the last 10 years.  

Entrepreneurs  should  also  be  able  to  count  on  one  single  contact  point  to  receive 
comprehensive  information  on  licenses,  administrative  procedures,  finance  and  public 
support.  ‘One  stop  shops’  for  entrepreneurs  such  as  "Barcelonactiva",  winner  of  the  2011 
European Enterprise Promotion Award, should be expanded. Moreover, the Commission has 
recently launched a new "Your Europe" portal which includes a single access point on EU 
financial instruments68. More administrative procedures should be made available online for 
businesses, including across borders. Member States are encouraged to extend their Points of 
Single Contact set up under the Services Directive to more procedures, to follow the business 
lifecycle approach, be multilingual and be more user-friendly. 

The Commission will: 

• 

• 

• 

• 

• 

• 

67 

68 

69 

Continue  to  vigorously  pursue  the  reduction  of  regulatory  burden  in  EU  proposed 
legislation especially in areas where such burdens are the highest.  

Indicate  how  it  will  go  about  reviewing  and  revising  EU  regulation  to  reduce  the 
unnecessary or excessive burden in areas identified in the' top ten most burdensome'. 
Legislative  initiatives  reducing  administrative  burden  in  other  areas  will  also  be 
proposed, such as those promoting e-invoicing in the field of public procurement and 
making business easier through a standard VAT declaration69.  

Propose  legislation  abolishing  burdensome  authentication  requirements  for  public 
documents which SMEs have to produce to conduct cross-border business within the 
Single Market. 

Set  up  a  working  group  to  assess  the  specific  needs  of  liberal  profession 
entrepreneurs  in  relation  to  issues  such  as  simplification,  internationalization  or 
access to finance. 

Monitor progress via the Points of Single Contact under the Services Directive and 
encourage Member States to take a more business-oriented approach. 

Take  action  to  ensure  that  more  businesses  get  help  through  SOLVIT  when  their 
rights are denied in the single market by public authorities. The Enterprise Europe 
Network  should  assist  business  with  a  view  to  ensuring  that  they  can  effectively 
access and make use of SOLVIT. Screen all existing resources for entrepreneurs at 

the 

first 

“Towards  a  job-rich  recovery”,  18.4.2012,  COM(2012)  173  final.  See  also  'Obstacles  to  growth  - 
Recruiting 
group, 
expert 
report 
.http://ec.europa.eu/enterprise/policies/sme/files/support_measures/first_emp/1st_emp_en.pdf. 
This is the result of the Commission Action Plan to improve access to finance for SMEs, (COM(2011) 
870 final. 
Commission Work Programme 2013 (COM (2012) 629 final). 

employee', 

Employee 

First 

the 

of 

EN 

20 

   EN 

                                                 
the EU level, to ensure clarity and accessibility and avoid duplication and outdated 
information.  

The Member States are invited to: 

• 

• 

• 

• 

• 

Reduce  time  for  licensing  and  other  authorisations  necessary  to  start  a  business 
activity to one month by the end of 2015.70 

Fully implement the ‘European Code of Best Practices facilitating SMEs’ access to 
public procurement’ by 2013.  

Continue  modernising  labour  markets  by  simplifying  employment  legislation  and 
short-time  working 
developing 
arrangements.71 

flexible  working  arrangements, 

including 

Extend the Points of Single Contact to more economic activities and make them more 
user-friendly;  

Set  up  "one-stop-shops  for  entrepreneurs"  to  bring  together  all  business  support 
services including mentoring, facilitation and advice on access to conventional and 
non-conventional  finance,  access  to  'incubators'  and  'business  accelerators'  and 
support for early internationalisation of young enterprises. All relevant stakeholders 
should  be  involved  to  ensure  a  partnership  approach,  including  education  and 
training providers. 

4. 

ACTION PILLAR 3 – ROLE MODELS AND REACHING OUT TO SPECIFIC GROUPS 

4.1. 

New perceptions: entrepreneurs as role models 

Europe has a limited number of known entrepreneurial success stories. This is due to the 
fact  that  entrepreneurship  has  not  been  celebrated  as  a  preferred  career  path.  It  is  rare  in 
Europe to find 'entrepreneur' ranked highly among desirable occupations. Despite the fact that 
entrepreneurs  create  jobs  and  power  the  economy  their  successes  are  not  presented  as  role 
models in the media. For young people, this makes an entrepreneurial career rank rather low 
in  the  list  of  attractive  professions  and  it  is  a  deterrent  to  those  who  might  want  to  become 
entrepreneurs.  

An  important  element  to  change  the  entrepreneurial  culture  is  thus  a  change  in  the 
perception  of  entrepreneurs  through  practical  and  positive  communication  about  the 
achievements  of  entrepreneurs,  their  value  to  society  and  the  opportunities  of  new  business 
creation or acquisition as a career destination. To achieve this, their visibility as role models 
must be stepped up, taking into account the diversity of entrepreneurial profiles and paths to 
success. Clear and engaging information on the challenges and rewards of an entrepreneurial 
career  can  counteract  negative  impressions.  A  corresponding  broader  discussion  in  public, 
especially in the media, is thus essential for an entrepreneurial revolution. Public and private 
institutions  should  be  encouraged  to  emphasize  the  social  and  economic  importance  of 

70 

71 

The 'Business Dynamics' Study from 2010 found that in 7 out of 33 European countries surveyed, it was 
possible for five model companies to obtain all necessary licences within 30 days.  
http://ec.europa.eu/europe2020/pdf/ags2013_en.pdf, page 10. 

EN 

21 

   EN 

                                                 
entrepreneurs  not  only  as  a  legitimate  career  path  but  also  as  a  matter  of  utmost  national, 
European and international interest. 

The Commission will: 

• 

in 

the 

framework  of 

the  "SME  Week",  a  Europe-wide  "EU 
Establish, 
Entrepreneurship Day" for students in their last year of secondary education. Events 
could  include  meetings  with  entrepreneurs,  case  studies,  lectures,  workshops  and 
"company open days". 

The Member States are invited to: 

• 

• 

Step  up  entrepreneurship  promotion  activities  and  appoint  known  entrepreneurs  as 
national Entrepreneurship Ambassadors to become "the face of entrepreneurship" in 
their  countries.  Their  role  will  be  to  promote  the  value  of  entrepreneurship  to 
society,  emphasise  the  importance  of  developing  entrepreneurial  skills  and 
experiences in education, and highlight entrepreneurship as a career opportunity. 

Better  take  into  account  the  variety  of  business  models  and  legal  statuses  in  their 
national  or  local  business  support  schemes,  and  develop  social  entrepreneurship 
education and training. 

4.2. 

New  horizons:  reaching  out  to  women,  seniors,  migrants,  the  unemployed, 
young people 

Demographic  groups  that  are  underrepresented  within  the  entrepreneurial  population  and 
especially founders of start-ups are young people, women, disabled and/or migrants. Europe 
has to open up for them paths into entrepreneurship to create for  them  jobs,  empower them 
economically and socially and leverage their creative and innovative capacities. These paths 
should be sensitive to the needs of different groups, their expectations and their norms with 
regards to how advice and information is delivered and received. Actions should be based on 
an  integrated  support  scheme  that  promotes  human  capital,  as  well  as  providing  financial 
support. Besides specific activities adapted to the needs of each of these groups, they should 
all  be  included  into  entrepreneurship  training  programmes  that  are  designed  and  offered  in 
partnership with education and training  providers, youth organisations, mainstream  business 
advisers and financial institutions. 

4.2.1.  Women 

Women  constitute  52%  of  the  total  European  population  but  only  one-third  of  the  self-
employed  or  of  all  business  starters  in  the  EU.72  Women  thus  represent  a  large  pool  of 
entrepreneurial  potential  in  Europe.  When  establishing  and  running  a  business,  women 
face  more  difficulties  than  men,  mainly  in  access  to  finance,  training,  networking,  and  in 
reconciling business and family.73 

Potential women entrepreneurs should be made aware of business support programmes 
and funding opportunities. 

72 
73 

Eurostat, 'Statistics in focus: the entrepreneurial gap between men and women' (30/2007). 
See,  e.g.,  O.  Bekh,  ETF  Women's  Entrepreneurship  Development,  Policy  Brief  (2012);  A.  Lesina,  F. 
Lotti, 'Do Women Pay More for Credit? Evidence from Italy', NBER Working Paper (2008); 'women in 
business and decision-making', Eurochambres (2004). 

EN 

22 

   EN 

                                                 
In  2009  the  Commission  inaugurated  the  European  Network  of  Female  Entrepreneurship 
Ambassadors,  to  serve  as  inspirational  role  models  for  potential  women  entrepreneurs.  This 
was followed in 2011 by the European Network of Mentors for Women Entrepreneurs, who 
voluntarily  counsel  women  starting  and  running  new  businesses.  In  2012,  the  Commission 
made a proposal to improve the gender balance in boards of publicly listed companies. Even 
to 
though  board  membership  requires  different  competences  and  skills  compared 
entrepreneurship,  more  women  in  senior  management  positions  could  serve  as  a  role  model 
for other women in general. The visibility of bigger number of successful professional women 
will show other women that they have chances of success on the labour market. 

Effective  implementation  of  existing  gender  equality  legislation,  in  particular  Directive 
2010/41/EC74 should further stimulate female entrepreneurship.  

The Commission will: 

• 

Create  a  Europe-wide  on-line  mentoring,  advisory,  educational  and  business 
networking  platform  for  women  entrepreneurs  that  will  bring  the  current  national 
ambassadors  and  mentors  networks  on-line,  deepen  their  offer  and  expand  their 
reach  and  support  female  entrepreneurship  at  national  and  regional  level  by 
promoting the exchange of best practices between Member States. 

Member States are invited to: 

• 

• 

• 

• 

Design and implement national strategies for women's entrepreneurship that aim at 
increasing the share of women-led companies. 

Collect  gender-disaggregated  data  and  produce  annual  updates  on  the  state  of 
women entrepreneurs nationally. 

Continue  and  expand 
Ambassadors and Mentors for Women Entrepreneurs.  

the  existing  networks  of  Female  Entrepreneurship 

Implement  policies  enabling  women  to  achieve  an  adequate  work-life  balance,  by 
establishing  appropriate  and  affordable  care  for  children  and  elderly  dependents, 
notably  by  taking  full  advantage  of  support  options  under  the  EAFRD,  ERDF  and 
ESF. 

4.2.2. 

Seniors 

Seniors are a valuable resource for entrepreneurship. Between 1990 and 2010 the share of 
citizens  aged  over  50  increased  in  Europe  from  32.1%  to  36.5%  and  the  median  age  of  the 
European  population  is  expected  to  rise  for  the  coming  decades.  A  growing  cohort  of  well 
educated,  highly  experienced  adults  is  retiring  every  year  and  to  date  society  has  not  been 
innovative in occupying them and benefitting from their know-how and skills. Engaging them 
in both business creation and in supporting new and existing entrepreneurs would maximise 
lost  on  retirement,  cultivate 
the  wealth  of  experience 
intergenerational learning and ensure knowledge transfer. 

they  possess 

that  can  be 

74 

O.J. L 180/1 of 15.7.2010. 

EN 

23 

   EN 

                                                 
As people live longer and healthier lives, traditional models of and choices for retirement are 
beginning  to  change.  Those  seniors  who  wish  to  start  a  business  for  the  first-time  should 
benefit from the full range of existing support services. 

Senior  entrepreneurs  can  also  be  a  valuable  resource  for  other  entrepreneurs.  Retired 
business people have precious know-how and experience that can make it easier to start and 
run  a  company  than  it  might  otherwise  be  for  an  inexperienced  founder.  This  knowledge 
represents  valuable  European  intellectual  capital  and  should  be  made  the  most  of.  Europe 
could take inspiration from programmes such as 'Senior Enterprise' (Ireland) and 'Maillages' 
(France) encouraging motivated seniors to serve as voluntary mentors, potential buyers of or 
investors in businesses, or as temporary managers to assist vulnerable start-ups or businesses 
in transition.75  

The Commission will:  

• 

Help exchange best practices helping senior executives and entrepreneurs to mentor 
new  entrepreneurs  as  well  as  support  mutual  and  intergenerational  mentoring 
between  entrepreneurs,  to  exchange  vital  skills,  such  as  ICT  literacy  and  the 
experience of seniors.  

The Member States are invited to: 

• 

• 

Foster  senior  entrepreneurs 
to  new 
entrepreneurs  and  match  senior  entrepreneurs  with  inexperienced  entrepreneurs  to 
create teams with broader skill sets. 

transferring  know-how 

interested 

in 

Ensure  that  the  participation  of  senior  entrepreneurs  and  retired  executives  in 
projects is compatible with their pension prospects.  

4.2.3.  Migrant entrepreneurs 

Immigrants founded 52% of start-ups created in Silicon Valley between 1995 and 2005 and 
Israel  owes  much  of  its  success  to  its  immigrant  population.  According  to  the  OECD, 
migrants  are  more  entrepreneurial  than  natives  and  a  foreign-born  self-employed 
person who owns a small or medium firm creates between 1.4 and 2.1 additional jobs76. 
Migrants  represent  an  important  pool  of  potential  entrepreneurs  in  Europe.  However, 
today  European  migrant  businesses  are  mainly  micro-businesses  with  no  or  very  few 
employees. They are also small in comparison with indigenous businesses as regards turnover 
and profit. Qualified migrants populations often face legal difficulties, limited labour markets 
and  career  opportunities  that  push  them  into  self-employment.  It  should  also  be  noted  that 
some third countries have a migration policy particularly attractive to facilitate the arrival of 
entrepreneurs.  The  more  vulnerable  groups  of  less  qualified  migrants  should  also  be 

75 

76 

A  further  example  of  what  can  be  achieved  may  be  seen  in  the  US-based  Service  Corps  of  Retired 
Executives  (SCORE)  which  established  a  network  of  13,000  volunteers  whose  expert  counselling 
helped create over 67,000 jobs in 2011. 
OECD(2010),  Open  for  Business;  Migrant  Entrepreneurshi  in  OECD  Countries,  OECD  Publishing, 
http://dx.doi.org/10.1787/9789264095830-en. 

EN 

24 

   EN 

                                                 
addressed. Notwithstanding that migrants have higher business creation rates than the rest of 
the population they fail more due to a lack of information, knowledge and language skills77. 

The EU has publicly recognized the key contribution that migrant entrepreneurs can make to 
sustainable  growth  and  employment.  The  European  Agenda  for  the  Integration  of  Third-
Country  Nationals78  stresses  the  important  role  of  migrants  as  entrepreneurs  and  states  that 
"their  creativity  and  innovation  capacity  should  also  be  reinforced".  It  is  important  that 
policies  to  encourage  entrepreneurship  in  Europe  take  full  account  of  the  entrepreneurship 
potential  represented  by  this  group.  Highly-qualified  non-EU  nationals  can  already  be 
admitted as workers under the Blue Card Directive.79 National and European policies should 
also  consider  the  potential  of  qualified  migrants  for  the  creation  of  businesses  and  jobs.  In 
particular,  support  measures  and  policy  initiatives  should  help  attract  talented  would-be 
entrepreneurs wishing to create global companies based in Europe. 

The Commission will: 

• 

• 

Propose  policy  initiatives  to  attract  migrant  entrepreneurs  and  to  facilitate 
entrepreneurship among migrants already present in the EU or arriving for reasons 
other  than  setting  up  business,  building  on  the  best  practices  developed  in  the 
Member States, including by local authorities. 

Analyse the opportunity of proposing legislation aimed at removing legal obstacles 
to establishment of businesses and giving qualified immigrant entrepreneurs a stable 
permit. 

The Member States are invited to: 

• 

• 

legal  obstacles 

to  establishment  of  businesses  by 

legal  migrant 
Remove 
entrepreneurs,  such  as  considering  initiatives  to  give  to  qualified  immigrant 
entrepreneurs  or  immigrant  graduates  of  a  European  university-level  institution  a 
stable permit to allow them to set up a business in Europe, which can be extended if 
pre-defined targets in terms of job-creation, turnover or raising of new funding are 
achieved.  

Facilitate  access  to  information  and  networking  for  migrant  entrepreneurs  and 
prospective migrant entrepreneurs by, e.g., creating relevant information centres in 
areas densely populated by migrants. 

4.2.4.  Unemployed, in particular young people 

Given the significant number of unemployed people across Europe, entrepreneurship support 
schemes  should  be  put  in  place  to  encourage  business  creation  as  a  route  out  of 

77 

78 
79 

Rath, J., Eurofound (2011), Promoting ethnic entrepreneurship in European cities, Publications Office 
of the European Union, Luxembourg. Europe, available at : 
http://www.eurofound.europa.eu/pubdocs/2011/38/en/2/EF1138EN.pdf. 
COM(2011) 455 final and SEC(2011) 957 final. 
Council Directive 2009/50/EC. 

EN 

25 

   EN 

                                                 
unemployment.80  Few  business  development  support  schemes  target  unemployed  youth 
specifically.81 

All business development support should include signposting information and providing links 
to  support  services,  advice  and  counselling,  and  business  coaching  and  mentorship.  Such 
assistance may also extend to the provision of particular skills (e.g. opportunity recognition, 
business  planning,  financial  management,  sales  and  marketing),  delivered  either  informally 
(e.g. mentoring scheme) or more formally by attending a course. Support should be targeted at 
groups  with  the  greatest  potential  (such  as  unemployed  workers  with  professional  skills, 
women  or  young  people),  and  should  rely  on  close  co-operation  between  employment 
services, business support and finance providers. The goal is to help the unemployed make an 
effective transition into self-employment, increase the sustainability of their businesses, and to 
tailor support to groups who may require additional resources such as young people or those 
who may not be best reached through traditional channels of business support. 

Attention should also be paid to the unemployed in general, in particular those who already 
possess  skills  and  competences  that  could  be  transferred  through  business  coaching  and 
mentorship to self-employed businesses. 

The Commission will: 

• 

• 

• 

• 

• 

Launch  in  2014  the  future  micro-finance  facility  under  the  PSCI  which  will  target 
vulnerable groups, including persons who have lost or are at risk of losing their job, 
or have difficulty in entering or re-entering the labour market. 

Provide,  through  the  European  Social  Fund,  Technical  Assistance  to  focus,  among 
others,  on  setting  up  support  schemes  for  young  business  starters  and  social 
entrepreneurs. 

Organise, in the context of the Progress Microfinance Facility, a micro-finance and 
social  entrepreneurship  stakeholders'  forum  in  June  2013  with  a  view  to  engaging 
local  financial  intermediaries  in  promoting  entrepreneurial  activity  in  the  green 
economy. 

Analyse  in  its  2013  Annual  Report  on  Entrepreneurship,  jointly  developed  with  the 
OECD, the situation of entrepreneurship for the unemployed. The report will present 
an analysis of the current situation, offer examples of good practice in tackling the 
issue and propose relevant policy recommendations.  

Analyse  results  of  the  study  on  "Self-employment  and  entrepreneurship:  the 
contribution  of  Public  Employment  Services  to  job  creation”,  and  organise  a 
dissemination event for Public Employment Services in June 2013. 

The Member States are invited to: 

• 

80 
81 

Connect  Public  Employment  Services  with  business  support  services  and 
(micro)finance  providers 
into 
entrepreneurship. 

the  unemployed 

their  way 

to  help 

find 

"Moving Youth into employment", COM (2012) 727. 
See in particular the European Commission-OECD Policy Brief on Youth Entrepreneurship in Europe,  
available at: http://ec.europa.eu/youth/news/20120504-youth-entrepreurship-employment_en.htm. 

EN 

26 

   EN 

                                                 
• 

• 

• 

Tackle the problem of unemployment by designing business training programmes for 
out-of-work youngsters that include clearly defined stages: profiling, planning, start-
up,  consolidation  and  growth,  each  stage  offering  a  variable  menu  of  services 
(counselling,  training  and  qualification,  mentoring  and  access  to  microcredit),  in 
partnership  with  youth  and  other  organisations,  mainstream  business  advisers  and 
financial institutions. 

Launch  active  labour  market  programmes  that  provide  financial  support  to  all 
unemployed people for starting a business. 

Establish and run entrepreneurship education schemes for the unemployed to enable 
them to (re-)enter business life as entrepreneurs based on successful models from a 
number of Member States, in partnership with education and training systems as an 
engagement route into second chance education. 

5. 

CONCLUSIONS 

In  the  current  economic  crisis,  new  and  young  enterprises  represent  a  key  ingredient  in 
creating  a  job-rich  recovery  in  Europe.  Problems  linked  to  the  low  rate  of  company 
creation, high rate of churn and low growth of companies in Europe are well known. It is time 
for  action  to  enable  Europe's  entrepreneurs,  and  Europe  as  a  whole,  to  be  more  adaptable, 
creative  and  to  have  greater  impact  in  globalised  competition  that  is  more  demanding  and 
more rapid than ever before.  

To reinvigorate Europe's entrepreneurs and push its entrepreneurial activity, the Commission 
and  Member  States  must  work  simultaneously  on  restoring  confidence,  creating  the  best 
possible  environment  for  entrepreneurs  by  putting  them  at  the  heart  of  business  policy  and 
practice, and revolutionising the culture of entrepreneurship. 

Successful examples from all over Europe show that there are good practices that can make 
entrepreneurs flourish and grow. Europe must fully embrace and exploit the richness of these 
experiences  to  tear  down  obstacles  and  abolish  burdensome  requirements  that  hamper 
business  operations.  Recognition  of  entrepreneurs  as  creators  of  jobs  and  prosperity 
should  be  spread  into  the  administrations  of  all  Member  States  Furthermore,  Europe  has  to 
become  a  welcoming  place  for  the  smartest  entrepreneurial  minds  on  an  international  level: 
regulatory and support frameworks should entice founders from other regions of the world to 
come to Europe instead of, for instance, the US or East Asia. Only with such an attitude can 
far-reaching  progress  be  achieved  in  the  essential  areas:  more  proportionate  and  simpler 
regulatory requirements, access to finance, support of new businesses, transfers of businesses 
and efficient bankruptcy procedures and a fair second chance to honest failed entrepreneurs.  

However,  while  these  elements  are  necessary,  they  will  not,  alone,  suffice  to  reinvigorate 
European entrepreneurship. The main motives of Europeans for starting an enterprise are self-
realisation  and  flexibility  of  time  and  place  of  work,  not  good  framework  conditions.82 
Therefore  a  radical  change  of  the  European  culture  towards  new  notions  about 
entrepreneurship is needed, one that publicly celebrates success, brings the contributions of 
entrepreneurs  to  European  prosperity  to  the  fore  and  showcases  the  rewards  of  an 
entrepreneurial career. 

82 

http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/eurobarometer/ 

EN 

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For  all  of  these  reasons,  investment  in  changing  the  public  perception  of  entrepreneurs,  in 
entrepreneurship  education  and  in  the  support  of  groups  that  are  underrepresented  among 
entrepreneurs  are  indispensable  if  we  want  to  create  an  enduring  change.  Only  if  a  large 
number of Europeans recognise an entrepreneurial career as a rewarding and attractive option 
will entrepreneurial activity in Europe thrive in the long term. 

Bringing about an entrepreneurial revolution is a joint task of the Commission and the 
Member States on which they have to embark for the long term.  

in 

their  external  dimension  with 

This  Action  plan  and  its  key  actions  will  be  followed  up  by  the  Commission  through  the 
competitiveness  and  industrial  policy  and  the  Small  Business  Act  governance  mechanisms, 
including 
the  candidate,  potential  candidate  and 
neighbourhood countries. The network of National SME Envoys shall, together with the EU 
SME Envoy,  play  a particularly key role in  ensuring that progress is  made on  the proposed 
measures.  Member  States  are  invited  to  report  on  progress  on  the  key  actions  of  this 
Communication at national level in the context of their National Reform Programmes in the 
framework of the European Semester.  

ANNEX: COMMISSION KEY ACTIONS 

Annex: Entrepreneurship 2020 Action Plan - re-igniting the entrepreneurial spirit in Europe 

Key areas 

Proposals by the Commission 

Date of implementation 

Entrepreneurial education and training to support growth and business creation 

Education 
training 

and 

• 

• 

2013-15 

a 

learning 

European 

pan-European 
Develop 
entrepreneurial 
initiative 
bringing  to  gather  and  make  available 
national 
existing 
analysis, 
expertise 
knowledge,, 
of 
methodologies  and  peer  mentoring 
between  practitioners  from  Member 
States.  

and 
impact 

development 

for 

• 

• 

Establishing,  jointly  with  the  OECD,  a 
guidance  framework  to  encourage  the 
development  of  entrepreneurial  schools 
and VET institutions.  

entrepreneurial 
the 
Disseminate 
university 
framework; 
guidance 
facilitate exchange between universities 
interested  in  applying  the  framework; 
gradually  promote  it  to  the  EU  Higher 

• 

• 

2013-2014 

2012 - 2013 

EN 

28 

   EN 

 
 
 
 
 
 
 
 
 
 
 
Education Institutions; 

• 

Endorse  successful  mechanisms  of 
university-driven 
creation 
(spin-offs  etc.)  and  university-business 
ecosystems supporting such creations 

business 

Create an Environment where Entrepreneurs can Flourish and Grow 

Access to finance 

• 

Supporting 
new 
businesses  in  crucial 
phases 
their 
of 
lifecycle  and  help 
them grow 

• 

• 

• 

• 

Fund  programmes  aimed  at  further 
developing  a  market  for  microfinance 
in  Europe,  through  initiatives  as  PSCI 
and  and  the  Joint  Action  to  Support 
Microfinance  Institutions  (JASMINE) 
and make resources for micro-financing 
available to Member States and regions 
via  the  European  Social  Fund  or  the 
European Regional Development Fund. 

Develop  an  EU  regime  for  exchanges 
trading  in  shares  and  bonds  issued  by 
SMEs  ("SMEs  growth  markets")  to 
facilitate  the  direct  access  of  SMEs  to 
the capital market in the context of the 
review  of  the  Market  in  Financial 
Instruments Directive (MiFID) 

Identify  and  promote  Member  States 
best  practices  with  a  view  to  create  a 
more 
fiscal 
entrepreneur-friendly 
environment.  

Revise  the  rules  prohibiting  certain 
misleading marketing practices to make 
them  more 
robust  and  strengthen 
enforcement  against  such  practices  in 
cross-border cases. 

Help Member States develop integrated 
support  schemes  and  actions  for  new 
entrepreneurs,  notably 
for  young 
entrepreneurs through capacity building 
seminars  financed  by  ESF  technical 

• 

Ongoing, 
to  be 
reinforced in new 
MFF from 2014 

• 

Ongoing 

• 

Ongoing 

• 

2013 

• 

2013 

EN 

29 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
new 

Unleashing 
business 
opportunities  in  the 
digital age  

• 

• 

• 

• 

• 

• 

assistance,  involving  inter  alia  relevant 
education  and  training  providers  to 
develop integrated strategies.. 

Fostering  the  build-up  of  a  knowledge 
base  on  major  trends  and  innovative 
business models:in the digital sector.. 

Raise  awareness  through  a  Europe-
wide  information  campaign  for  SMEs 
on the benefits from ICT and including 
the  creation  of  a  European  network  of 
web businesses. 

Facilitate  networking  via  the  creation 
of  a  European  Mentors  Network  for 
training  and  advice  and  match-making 
to explore new partnerships.  

expertise, 

Specific initiatives will be launched for 
Web entrepreneurs such as the creation 
of  a  Start-up  Europe  Partnership  to 
mentoring, 
unlock 
technology and services, as well as of a 
Web  Entrepreneurs Leaders Club to 
bring 
together  world-class  web 
entrepreneurs  and  strengthen  the  web 
entrepreneurial  culture  in  Europe  and 
the emergence of Massive Online Open 
Courses  to  foster  web  talent  and  the 
setting  up  of  platforms  for  mentoring, 
and skill building. 

Strengthen  competences  and  skills  i.e. 
intensify the creation and acquisition of 
E-skills,  scientific  and  creative  skills 
and  managerial  and  entrepreneurial 
skills to address new markets. 

• 

• 

2013-on 

2013-on 

• 

2014 

• 

2013 

• 

Ongoing 

EN 

30 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Transfers 
businesses 

of 

• 

• 

2013-14 

programmes 

including  measures 

the  most 
Develop  guidelines  on 
effective 
best 
and 
practices  to  make  business  transfers 
for 
easier, 
deepening  and  expanding  the  markets 
for  enterprises,  mapping  available 
programmes  in  Europe  and  proposing 
necessary  actions  to  remove  remaining 
possible 
cross-border 
business transfers based on the work of 
an expert working group and a study..  

barriers 

to 

Second  chances  for 
honest bankrupts 

• 

• 

 2013  

Launch a public consultation to receive 
views  from  stakeholders  on  the  issues 
identified  in  the  Communication  on  a 
new  European  approach  to  business 
failure  and  insolvency,  including  on 
giving  honest  bankrupts  a  second 
chance  and  on  shortening  and  aligning 
the "time to discharge". 

Regulatory  burden: 
clearer  and  simpler 
rules 

• 

• 

2013 

legislation 

abolishing 
Propose 
authentication 
burdensome 
for  public  documents 
requirements 
which  SMEs  have 
to 
conduct  cross-border  business  within 
the Internal Market. 

to  produce 

• 

• 

Set  up  a  working  group  to  assess  the 
specific  needs  of  liberal  profession 
entrepreneurs  in  relation  to  issues  such 
as simplification, internationalization or 
access to finance. 

that  more 
to  ensure 
Take  action 
businesses  get  help  through  SOLVIT 
when  their  rights  are  denied  in  the 
single market by public authorities.  

• 

2013 

• 

2013 

Role models and reaching out to specific groups 

New 
Entrepreneurs 

perceptions: 
as 

• 

 Establish,  in  the  framework  of  the 
"SME  Week",  a  Europe-wide  "EU 
Entrepreneurship  Day"  for  students  in 

• 

2013 

EN 

31 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
role models 

their last year of secondary education.  

Women 

• 

Seniors 

Migrants 

Unemployed 

• 

• 

• 

• 

• 

• 

a 

Europe-wide 

Create 
on-line 
mentoring,  advisory,  educational  and 
business  networking  platform 
for 
women  entrepreneurs  that  will  bring 
the  current  national  ambassadors  and 
mentors networks on-line, deepen their 
offer and expand their reach at national 
and regional level 

senior 

executives 
to  mentor 

and 
Help 
new 
entrepreneurs 
entrepreneurs as well as support mutual 
and 
mentoring 
between  entrepreneurs,  to  exchange 
vital skills.. 

intergenerational 

Propose  policy  initiatives  to  attract 
migrant  entrepreneurs  and  to  facilitate 
entrepreneurship 
among  migrants 
already  present  in  the  EU  or  arriving 
for  reasons  other 
than  setting  up 
business, based on good practices from 
Member States. 

Analyse  the  opportunity  of  proposing 
legislation to remove legal obstacles to 
qualified 
entrepreneurs 
establish a business and obtain a stable 
residence permit. 

immigrant 

the 

Launch 
future  micro-finance 
facility  under  the  PSCI  which  will 
including 
target  vulnerable  groups, 
persons who have lost or are at risk of 
losing  their  job,  or  have  difficulty  in 
(re)entering the labour market. 

Provide,  through  the  European  Social 
Fund, technical assistance to focus,, on 
setting  up  support  schemes  for  young 
business 
social 
entrepreneurs. 

starters 

and 

• 

2013-15 

• 

2013-15 

• 

2014-2017 

• 

• 

2014-2017 

2013 

• 

March 2013 

Organise,  connected  to  the  Progress 
Microfinance  Facility,  a  micro-finance 
and 
entrepreneurship 
stakeholders'  forum  to  engage  local 
financial  intermediaries  in  promoting 

social 

• 

2013 

EN 

32 

   EN 

 
 
 
 
 
 
 
 
 
 
 
• 

entrepreneurship in the green economy. 

Analyse  insights  from  the  study  on 
"Self-employment 
and 
entrepreneurship:  the  contribution  of 
Public  Employment  Services  to  job 
creation”, and organise a dissemination 
event to share the lessons learned with 
Public Employment Services. 

• 

2013 

EN 

33 

   EN