Canadian CED Network

More Bang for the Buck: The Impact of CFDC Lending on Ontario's EconomyFunding provided to small- and medium-sized businesses in Ontario’s rural and northern communities through the Community Futures Program has generated significant economic and employment growth, according to a new Conference Board of Canada report released today.

The report, More Bang for the Buck: The Impact of CFDC Lending on Ontario’s Economy, assesses the economic impact of the lending services provided through the Community Futures Program. It finds that, for every dollar of lending through the program,Ontario’s real GDP is lifted by as much as $4.50.

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HIGHLIGHTS

Every dollar of lending through the Community Futures Program results in as much as $4.50 added to real GDP.

From 2009-2014, the program provided a cumulative $398 million in loans to small businesses in Ontario.

The Community Futures Program lending service helped offset some of the effects of the recession, boosting employment by roughly 3,300 in 2010 and 2011.

“The fallout from the 2008 recession has revealed just how important access to credit is to the health of the global economy. The findings suggest that the program generated significant economic benefits, helping boost labour income, consumer spending and corporate profits,” said Pedro Antunes, Deputy Chief Economist, The Conference Board of Canada.

From 2009-2014, the Community Futures Program, which is meant to ease credit conditions for small- and medium-sized businesses in Ontario’s rural and northern communities, provided $398 million in direct loans. The impact of lending on overall capital investment is significantly increased through additional funds raised from owners’ equity and third-party lenders. A total of $1.142 billion in new capital investment funds were raised—with over $746 million in spending due to investments from owner’s equity and funds borrowed from third-party lenders. This new investment added an estimated $1.69 billion to Ontario’s economy and created an average of 3,370 jobs. Over the six-year period examined, federal and provincial governments benefited from a cumulative $281 million lift to personal income taxes and indirect taxes.

The report, More Bang for the Buck: The Impact of CFDC Lending on Ontario’s Economy, was funded by the Ontario Association of Community Futures Development Corporations, a member of the Canadian CED Network.

SOURCE: Canada Newswire

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Fragile CommunityCommunity is more than the sum parts of physical infrastructure, much more than the social environment in which people live and fundamentally more than the services which people have come to expect.  Community is the primarily intangible environment where people co-exist, raise families and build memories.  The challenge of building community capacity and subsequently using this capacity to create and maintain a community economy is fraught with perils, some internal and many more which are external.  The process, through which this is accomplished, because of its nebulous nature and long term necessities, evolves consistently, encountering many obstacles which often create vulnerability.  This vulnerability is a reflection and a microcosm of the community and the people who live there and their own vulnerable nature.  

Sudden shocks are very unsettling, the fragility is in the moment, in the short shocks that rattle people, shake their confidence and open the avenues to potential despair.  Some moments last a long time and some are so disruptive that they totally unsettle the foundations of community resulting in long lasting effects with the possibility of eventual dissolution of community and all that it means.  Once the environment of community is shattered, the sense of community is lost and has to be rebuilt in a whole new context; which is what many communities are now addressing.  In many places community will be lost forever leaving its populace adrift.

In true communities people rally, come together and find resolutions to whatever the problems that must be faced.  But in these type communities people have commitment to each other and to the intangible environment that is community.  In times of radical change people have to dig deep within themselves and ask – what next.  

The process of development and evolution, marches slowly forward as people wend their way along the road to community enlightenment, thoughtfulness and activity.  This process will influence the communities social and economic environment, if it is given time.  It will even influence government policy programs and services and how they are delivered to communities, but this usually takes even more time.  For this to happen this community process must be given understanding, appreciation and the support to first help people in communities, especially those experiencing radical change, deal with their anguish and then their required learning.   The focus of this learning has to be about themselves, their communities and the opportunities that might be available to them.  It is through this learning process that vulnerabilities are shared, reality exposed, common support given and true community experienced.

William (Bill) PardyWilliam (Bill) Pardy is a longtime CED practitioner who splits his time between Corner Brook, Newfoundland, and international assignments. Read more of his articles and contact him at www.wwpardy.com

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ccuaThe creation of a new credit union trade association was announced January 27. The Canadian Credit Union Association (CCUA) will support and advocate for a successful, competitive and growing credit union industry in Canada. The CCUA is the first, national credit union governed organization in Canada, distinct in its commitment to co-operative values.

The trade association will build awareness about co-operative difference of credit unions within the financial services market and promote the important role credit unions play in local communities and to the national economy.  CCUA will also provide expert research and value-added services to credit unions and caisses populaires outside of Quebec.

CCUA is owned and directed by its members – 316 credit unions and caisses populaires with more than $185.7 billion in assets. These credit unions and caisses populaires serve over 5.57 million members; from more than 1,817 locations across Canada; are governed by more than 2,800 volunteer directors; and employ more than 28,500 Canadians.

“The creation of the Canadian Credit Union Association and the transfer of the assets of the former Credit Union Central of Canada, comes at an important time: through a shared vision of success, credit unions have never been better positioned to create a more vibrant future for Canadians — one that is built on the strengths and diversity of co-operative finance,” says Martha Durdin, president and CEO, Canadian Credit Union Association.

The CCUA has launched a new website – www.ccua.com – to share credit union initiatives and activities.

View the press release here

Source: Co-operatives and Mutuals Canada

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Strategic Framework 2012-2017: A Renewed Vision of Regional Economic DevelopmentThe Canada Economic Development for Quebec Regions (CED) is looking for the opinions and ideas of members of the public and economic stakeholders on the economic strengths, challenges and problems impacting Quebec’s businesses and regions as well as on the potential solutions that might be envisaged.

CED is to promote the long-term economic development of the regions of Quebec by giving special attention to those where slow economic growth is prevalent or opportunities for productive employment are inadequate.

In 2016, CED will be establishing a new Strategic Framework for 2016-2021 to guide its programs and services and enable the Agency to carry out its mission. To learn more, see the current Strategic Framework.

The consultation period will be on until February 29, 2016.

CED’s interest centres on, but is not limited to, the following topics:

  • economic growth, trade and market development
  • innovation and industrial clusters
  • transition to digital and Web technologies
  • clean technologies and the economy within the context of sustainable development
  • community economic engagement
  • urban economic development
  • community economic development and diversification

Why get involved?

The ideas and opinions collected will be analyzed and subsequently used in developing the 2016-2021 Strategic Framework, which will take the needs on the ground into account. This framework will set out CED’s renewed vision for the economic development of Quebec’s regions.

Responding to this call for ideas is also an opportunity to engage in open dialogue with the government and be part of the reflection on its initiatives and programs.

Notice

Please note that all information shall be collected in compliance with the Access to Information Act and the Privacy Act. CED is authorized to collect personal information under Section 11(1) d) and Paragraph 12 f) of the Economic Development Agency for the Regions of Quebec Act. All information shall be treated confidentially and used solely for the purposes of this consultation.

Next steps

This dialogue is part of a wider engagement plan aimed at encouraging ongoing discussion with the public and regional economic development experts. The call for ideas is intended to initiate that dialogue and will be followed up with more targeted discussions with economic development stakeholders.

The ideas and opinions submitted will be analyzed and the results will be presented in a report that will be posted on CED’s Website and shared on our social media sites. Keep up with the latest news by following CED on Twitter @CanEconDev and LinkedIn.

How to take part?

Go to the online questionnaire to share your ideas and opinions

For more information

To report a technical problem or request a printed copy of the questionnaire, please contact CED by calling 1-844-641-5883. Once completed, the questionnaire may be faxed to 514-283-8429 or mailed to:

Canada Economic Development for Quebec Regions
Policy, Research and Programs Branch
1255 Peel St., Suite 900
Montréal, Quebec   H3B 2T9

SOURCE: Canada Economic Development for Quebec Regions

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Haida Gwaii VoicesA place on the Masset Village shoreline that resident Joan Ewson took the lead in getting cleaned up several weeks ago is still litter-free. She’s so energized by this and how it happened that she’s about ready to tackle the rest of the shoreline.

In the meantime, her success is being held up as a small but important win by a grassroots initiative called Haida Gwaii Voices.

Haida Gwaii Voices was created more than a year ago by several community members and Community Futures a community economic development agency (and member of the Canadian CED Network), as a way to spark and support community-led change.

“We really want to see the community shaping the future of Haida Gwaii,” says Allison Smith, a lead volunteer with Haida Gwaii Voices as well as the Community Futures business development officer.

Haida Gwaii is a sprinkling of islands off B.C.’s northern coast. It consists of seven small communities, including Masset Village and has a total population of about 5,000.

Through both kitchen-table discussions and some creative community engagement projects involving Facebook, Haida Gwaii Voices has discovered a resonating chord of dreams among the communities. For example, people want more access to local food, a vibrant network of nature trails and healing opportunities for adults.

Haida Gwaii Voices is now grappling with how to bring the communities together to create the changes they want to see.

Joan’s story offers a few clues. Taking the initiative to clean up a piece of the Masset Village shoreline all started with writing down her commitment to do so, she says.

Joan’s before and after photos from the Masset
Village site she take the lead in getting cleaned up.

“I had been following Haida Gwaii Voices on Facebook and I was downtown at our Harbour Day Festival where they had a booth with these grey cards for you to write down what you would like to see for Haida Gwaii.

“Well, that garbage can – or the lack of – (on the Masset dock) had driven me crazy for a long time,” Joan says. “There was always piles of garbage down there, so I wrote down that I would like to see it cleaned up and a garbage can down there.”

That was essentially all it took, she adds. “It really spurred me to action. I had written it down, so I felt like I had to do it.”

Joan’s next step was to visit the site of contention, snap photos of the garbage and then set about cleaning up the spot, which is otherwise quite pretty. “It has a bench overlooking the village dock,” Joan says. “And I’ve seen orchids there and you can watch the boats and planes come and go.”

She then visited the Masset Village council offices to show them her before and after pictures of the site and to ask about setting up a garbage can.

Joan also posted her photos and a note about her experiences on the Haida Gwaii Voices Facebook page – who went on to tag the Masset Village council offices and add a request that something be done.

Within a few days, a garbage can had been set up.

The invitation for residents to commit to doing something about the change they would like to see is an important piece of fostering community-led change. That’s been a big “a-ha” for Haida Gwaii Voices, Allison says.

The initiative first recognized this through a project last June which invited residents to write on chalkboard both one wish for Haida Gwaii and what they intended to do about it. People were then invited to post a photo of themselves with their chalkboard message to Facebook.

“We didn’t get as many people doing it for that reason, because you’re publicly putting (your commitment) out there, but it also sometimes got more meaningful actions and more meaningful connections were made from it,” Allison says.

“So now in every project that we do going forward there will always be that commitment piece to making things happen.”

Another surprising “a-ha” for the initiative has been the power of social media on the islands. This is essentially the key way to learn of local news and community events, Allison says, adding the initiative has become intentional about tapping into that and encouraging residents to do so as well.

Looking ahead, the ongoing big question for Allison and others involved in the community building work in Haida Gwaii is knowing what how best to support or facilitate community leadership and action, without taking the lead themselves.

Energizing connections between people is definitely another key part of the work, Allison says.

And the journey continues.

To learn more about Haida Gwaii Voices, visit their Facebook page here.

This article was originally posted by Axiom News on October 9, 2015 and appears here with permission.

Michelle Strutzenberger

Michelle Strutzenberger brings more than 10 years of experience in writing, social media, curation and digital distribution. Subject areas of interest include creating abundant or deep communities, social-mission business, education that strengthens kids’ sense of hope and possibility and journalism that helps society create its preferred future. She is currently supporting the development of Axiom News podcasts. Contact Michelle at michelle at axiomnews.com.

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Policy Questions for Candidates and Election Events

With Manitoba’s elections upcoming on April 19, 2016, staff and members of the Canadian CED Network – Manitoba are calling on all registered political parties, the Green Party, Liberal Party, New Democratic Party, Progressive Conservative Party and the Communist Party to share their position on policies that support our collective vision of fairer and stronger local economies, reduced poverty, and more sustainable communities. In particular, members of CCEDNet–MB prioritized the following five policy ideas and questions for candidates.

Please use these resources to ask your own candidate where they stand on the issues that matter to CCEDNet–MB members.

Policy Questions for Candidates

Community Poverty Reduction Strategy      Creating Jobs through
Social Enterprise
     
Building a Green
Economy		 Investing in Northern
Food Security
      
Community-based
Organizations

The complete election policy questionnaire can be found here.

Candidates’ Responses!

The Green Party and the New Democratic Party were the only two parties to make it a priority to respond. The links to the full responses as submitted are below. After multiple communication attempts the Progressive Conservatives, the Liberals, and the Communist Party did not submit responses to our policy priorities.

Green Party of Manitoba

New Democratic Party of Manitoba

Election Events

Don’t miss the following member campaigns, and events related to CCEDNet–MB policy areas!

Please note that CCEDNet Manitoba does not endorse all of these campaigns and events, but are sharing those related to our policy areas that may be of interest to members.

Campaigns

Election Events (*CCEDNet member event)

  • April 19, 2016– Election Day!

Media

Election Information

Registered Political Parties

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FCL CEO Scott Banda announces a $5 million commitment supporting Co-operatives First.A five-year, $5 million commitment from the Co-operative Retailing System (CRS) will provide critical start-up funding for Co-operatives First, an organization that will facilitate a new wave of co-operative development in Western Canada.

As a non-profit, the newly formed Co-operatives First will work with small- to mid-size rural communities and municipalities, as well as with aboriginal communities, to identify innovative, community-led solutions to modern challenges and opportunities facing these communities.

“Co-operatives played a vital role in building Western Canada and they remain fixtures in communities across our country,” said Federated Co-operatives Limited (FCL) CEO Scott Banda, who presented the donation on behalf of the CRS, which is comprised of FCL and more than 200 independent retail co-operatives across Western Canada. 

“The co-operative model continues to foster business, economic and social development across Western Canada,” added Banda. “These sustainable solutions and community services often succeed in circumstances that challenge other businesses and organizations. By promoting the co-operative model of shared ownership and shared rewards, Co-operatives First will help people in those communities identify local solutions and leverage local opportunities that empower people and create meaningful change.”

A portion of the $5 million in start-up funding will be used for resources to offset some of the costs associated with starting a co-operative. Those funds will help new organizations attain the legal and professional services required to form a new co-operative, as well as develop communications and business plans and conduct feasibility studies.

Addressing a need

Co-operatives First is one outcome of the Co-operative Innovation Project (CIP), a two-year, FCL-funded pilot project at the University of Saskatchewan’s Centre for the Study of Co-operatives. As part of the project, researchers conducted telephone and web surveys and held meetings to gauge the public’s understanding of co-operatives. In total, the researchers contacted 649 communities, representing 37 per cent of rural and aboriginal communities in Manitoba, Saskatchewan, Alberta and British Columbia.

The CIP found rural and aboriginal communities are receptive to locally driven solutions, but needed assistance getting started. The project determined more co-operatives would be formed if individuals and groups received greater support.

“Co-operatives First will work with local leaders to identify opportunities where the co-op model could be applied to address unmet needs within their community,” said Murray Fulton, Chair in Co-operative Governance and a professor at the Johnson Shoyama Graduate School of Public Policy at the University of Saskatchewan. “By engaging with communities and potential co-ops in early stages, Co-operatives First will inspire the creation of new organizations, complementing the work provincial co-operative associations are already doing.”

Getting to work

Once its executive director and staff are in place later this year, Co-operatives First will begin hosting Community Inspire meetings with community leaders across Western Canada to identify potential opportunities for development and collaboration. The organization is planning to host nine such meetings in 2016. By 2020, the group plans to have held no fewer than 125 Community Inspire events in rural communities and 40 in aboriginal communities.

SOURCE: Federated Co-operatives Limited

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Fundamentals of Co-operative Organizations Certificate ProgramThe Ontario Co-operative Association, in association with the Schulich School of Business at York University, has set a new standard for co-operative leadership and expertise. The new Fundamentals of Co-operative Organizations Certificate (FCO) Program is designed for staff, managers and board members of emerging and existing co-ops, credit unions and stakeholder organizations.

Develop practical, transferable and co-operative skills. Gain unique and enriched co-op knowledge that will help you in your career path and give you the tools to help your organization succeed.

Please read the BROCHURE to learn more about the FCO Program. Much more information is available from the On Co-op website or by calling their office at 1.888.745.5521 x.29.

Here are some highlights:

  • Each of the three two-day classroom sessions includes ‘up close and personal time’ with key leaders in the co-operative sector such as Kathy Bardswick, CEO of The Co-operators.
  • The five 90-minute webinars include presentations and/or discussions with sector experts, and provide practical learning.
  • The curriculum has recently been updated to provide you with critical thinking and the tools, skills and confidence to succeed.
  • The three intensive classroom sessions are held at a Toronto location very near Pearson airport. You must be able to attend all three sessions in person.
  • The FCO Program runs for 10 weeks. Attendance at all classroom sessions and webinars is required.
  • Students from outside Ontario and Canada are welcome to apply, and there are no prior academic requirements.

A limited number of bursaries (maximum $1,000 each) are available for co-ops less than 5 years old, or co-op working groups in the formative stages. Payment plans are available. Discounts are available for member organizations of the Ontario Co-operative Associations.

The first webinar begins March 22, 2016, and the final classroom session ends on May 28, 2016. Class size is capped to ensure a low student/leader ratio.

Applications must be received by March 9

The Fundamentals of Co-operative Organizations Certificate Program can help you reach your personal and professional development goals.

For more information contact Adam Malloy, Education Manager, at amalloy at ontario.coop.

SOURCE: The Ontario Co-operative Association

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manitoba $10 m fund2016 is shaping up to be an exciting year for social enterprise in Manitoba. The latest development was announced last week: the Manitoba government has committed to supporting employment-focused social enterprises through the development of a $10 M loan fund, as well as developing a government-wide social impact procurement strategy.

Across the globe, the use of public sector purchasing as a means to address poverty is a growing trend. Locally, Manitoba Housing & Community Development has been a leader in purchasing from social enterprises who are providing employment opportunities for barriered individuals. This model has many positive impacts, including reducing crime, growing our labour market, increasing our tax base and decreasing the costs associated with health care, justice and social services.

But up until now this model has only been consistently used within Manitoba Housing. Developing a government-wide social impact procurement policy will result in more departments targeting appropriate work to social enterprises and creating valuable training and employment opportunities for individuals otherwise left out of the labour market.

Like any business, social enterprises need access to the right money at the right time, and the Manitoba government has committed to ensuring our growing social enterprise sector is supported with the appropriate capital. A new $10 M social enterprise loan fund will assist “employment-focused social enterprises access capital with flexible loan financing including start-up, operating or emergency loans and loan guarantees.” While the details are currently under development, this type of support could be key to meeting the needs of the social enterprise growth a procurement strategy will create.

Both the procurement strategy and the loan fund are recommendations from the Manitoba Social Enterprise Strategy, a suite of policy and program recommendations co-created by the Manitoba Government and CCEDNet – Manitoba.

The announcement itself was made at the sod-turning of a new affordable housing project in Winnipeg. The Austin Family Commons will provide 19 units of affordable housing, and will contract social enterprises for multiple components of the project. We are eagerly monitoring this model for how infrastructure investments can be leveraged to provide employment opportunities for barriered individuals.

CED News on Manitoba government release

Darcy PennerBlog by: Darcy Penner
Darcy Penner is a Social Enterprise Policy & Program Co-ordinator with the Canadian CED Network. He has been working in community economic development since graduating from the University of Winnipeg with a BA (Honours) degree in Politics. Starting at CCEDNet in 2013, his role has seen him work with member-organizations to pursue a broad policy agenda through workshops, presentations, budget submissions, policy papers and community-organizing, while specializing in supportive social enterprise policy and research – including coordinating the Manitoba Social Enterprise Sector Survey and the Manitoba Social Enterprise Strategy being co-created with the Province of Manitoba. Darcy was also a contributing author to the Alternative Municipal Budget for CCEDNet-Manitoba.​

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Solar FarmsUnlimited Sun Fuel + Community Owned Solar Farm = Power to the People!

Due to a growing need and demand for community owned renewable energy projects, a team of visionaries, co-operative developers and solar experts have come together to form Alberta Solar Co-op. The co-op is currently creating the working model for future community owned solar farms in the province and plans to launch their first project this year.

As a member of the co-operative, Albertans can own part of this 1 – 2 MW grid-connected (distributed generation) solar farm. The 2 MW solar farm will power over 400 homes, offset over 2000 tonnes of carbon dioxide emissions per year and will be equivalent to planting over 10,000 trees!

As a member-owned co-operative, the renewable energy projects will be owned and democratically controlled by Albertan members. Not only will the projects increase renewable energy generation in the province and encourage diversification of the province’s robust energy portfolio, members will also have the opportunity to share in the revenue generated from the production of electricity sold to the grid.

Before the Alberta Solar Co-op can launch their first project and invite Albertans to invest in this community owned solar farm, they are asking for your support to help start the first stage of this project. The start-up costs are high and they need your support in order to make this a reality. Once the model for this first project has been created, the co-op plans to replicate it and build more community owned solar farms in Alberta.

Contribute now to the Alberta Solar Co-op Indiegogo campaign

Once the project is finalized, Alberta Solar Co-op will issue investment shares to Albertans who would like to become owners in the project. And as a bonus, these shares will be RRSP and TFSA eligible! Members will be able transfer investment from an existing RRSP/TFSA account into the project. 

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Manitoba Parliament BuildingThe Manitoba government will establish a new $10-million loan fund to support social enterprise, creating more employment and training opportunities for people who face barriers to work, Housing and Community Development Minister Mohinder Saran announced last week at the sod-turning of a new 19-unit multi-family housing project that will be built, in part, through social enterprise.

“Manitoba is proud to invest in unique solutions to address difficult challenges like poverty, unemployment and social exclusion,” said Minister Saran.  “This new loan fund will provide social enterprises with the financing tools needed to succeed.  As a result, more Manitobans will have the opportunity to learn new skills, access social supports, participate in training and find meaningful employment.”

The new $10-million social enterprise loan fund will help employment-focused social enterprises access capital with flexible loan financing including start-up, operating or emergency loans and loan guarantees.  Social enterprises are non-profit organizations that use a business model to achieve broader social goals, an approach the minister noted can effectively provide a path out of poverty for people who face barriers to employment. 

The loan fund builds on the recommendations of the 2015 Manitoba Social Enterprise Strategy and will be developed in partnership with the social enterprise sector, the minister noted.Manitoba Social Enterprise Strategy: A Strategy for Creating Jobs through Social Enterprise

“Access to the right money at the right time, as well as exploring and developing markets, including public procurement, are important pieces of the Manitoba Social Enterprise Strategy,” said Sarah Leeson-Klym, regional director, Canadian Community Economic Development Network.  “As the community hosts of this strategy, we’re pleased the province is finding ways to support the impact of training and employment-focused social enterprises while also moving forward on their commitments to create affordable housing.”

The minister highlighted this new commitment at the sod-turning of Austin Family Commons, a new affordable housing project that will replace three vacant lots at 150 Austin St. North.

“The Austin Family Commons project will make a real difference for families in the North Point Douglas neighbourhood,” said Minister Saran.  “We are excited to partner with community agencies, our builders and social enterprise to ensure the construction of these new units will create job opportunities for people who have experienced employment barriers.  This is a win-win for the entire community.”

Once complete, Austin Family Commons will be a three-story, 19-unit family apartment building.  Rents will be set at affordable levels and half the units will offer rents geared to income.  The minister noted the site provides easy access to a range of local amenities and major public transportation routes on Main Street, making it ideal for local workers and future tenants. 

“Nothing takes a bigger bite out of poverty and all its symptoms than a job,” ‎said Lucas Stewart, general manager, Manitoba Green Retrofit (MGR).‎  “Social enterprises like MGR use entrepreneurial tools to create meaningful and, most importantly, sustainable jobs for Manitobans who might otherwise be unemployed.  Financing from this loan fund will provide social enterprises with tools to play a much bigger role in many future projects like this one.‎  This is good policy and smart spending.‎”

Minister Saran noted this project supports Manitoba’s commitment to developing new affordable rental housing for families.  Construction is expected to be completed in early 2017, he added.

The minister also announced the Manitoba government will develop a government-wide social impact procurement policy to broaden public-sector support for social enterprise and help ensure that existing purchasing leads to more job opportunities for people otherwise excluded from the labour market.

For more information about the Manitoba Social Enterprise Strategy and affordable housing in Manitoba, visit www.gov.mb.ca/housing.

SOURCE: Province of Manitoba

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The Missing Entrepreneurs 2015Encouraging entrepreneurship among disadvantaged groups can help boost jobs and tackle social exclusion, according to a new joint report by the OECD and European Commission.

The Missing Entrepreneurs 2015 looks at European entrepreneurship policies that contribute to social inclusion by providing opportunities to start and run businesses for those that are disadvantaged and under-represented among the self–employed. It focuses on support for youth, women, seniors, the unemployed, ethnic minorities, immigrants and people with disabilities. 

The report looks at how to support business growth for entrepreneurs from these target groups by improving the quality of business start-ups and fostering entrepreneurial motivation. It says networks need to be developed to increase access to resources, such as financing, business partners, and ideas for new products, processes and organisational methods. It recommends that successful role models from the target groups are used to inspire other entrepreneurs.  At the same time, mainstream support programmes for business growth (e.g. access to finance, leadership and management training) need to be accessible to entrepreneurs from the disadvantaged groups.

According to a survey cited in the report, only 36% of young people and 33% of women in the European Union say they have the knowledge and skills to start a business. Coaching and mentoring programmes can improve entrepreneurial skills. But specific training is needed for coaches and mentors to ensure they understand the issues and challenges faced by entrepreneurs from the target groups. It is also important to match entrepreneurs to a coach or mentor using a clearly defined process that considers gender ethnicity, and business sector.

Download The Missing Entrepreneurs 2015

The report includes the following findings:

  • Many youths (45%) would prefer to be self-employed rather than working as an employee. Despite high start-up rates, youth-operated businesses tend to have low survival rates. 
  • More than 685 000 people who were unemployed in the European Union in 2012 successfully entered self-employment in 2013.
  • Other groups facing social exclusion in the European Union are less likely to be self-employed and often operate businesses with low prospects for growth (e.g. women, seniors, people with disabilities). For example, women were half as likely as men to be new business owners over the 2009-13 period (1.8% vs. 3.5%) and were less likely to have employees in 2013 (24.0% vs. 31.1%).
  • Key barriers are faced by these groups in the areas of accessing finance, acquiring entrepreneurship skills and building entrepreneurial networks.
  • Business start-up support accounts for only 1.9% of active labour market policy expenditures across the European Union and should be boosted.
  • Examples of successful policies to support business creation and self-employment for disadvantaged groups include Autonomie et Solidarité in France, which invests in new start-ups by the unemployed and has led to the creation of more than 2 000 jobs in the Nord-Pas-de-Calais region. The Enter Ability scheme in Germany which provides coaching, mentoring and business consultancy to people with disabilities, has led to 109 new start-ups.

Other examples of effective approaches include the Innovative Youth Entrepreneurship in Greece, which provides grants of up to EUR 10 000 for innovative business start-ups to unemployed university graduates. The programme receives funding from the European Social Fund and only targets innovative business ideas to increase the chances of developing sustainable businesses.

In the United Kingdom, the 12/8 Group is a peer mentoring initiative for Afro-Caribbean business owners in the West Midlands region.

The Missing Entrepreneurs 2015 is divided into three sections. It provides data on the self-employment and business creation activities by each target group, and on the barriers that they face. It looks at supporting business growth by entrepreneurs from the target groups and effective coaching and mentoring. It also provides policy examples and country-specific data from each European Union country.

Other inclusive entrepreneurship reports

The Missing Entrepreneurs 2015 is part of an ongoing cooperation between the OECD and the European Commission. Other outputs include two previous editions of The Missing Entrepreneurs, Nine policy briefs (Youth entrepreneurship; Senior entrepreneurship; Social entrepreneurship; Evaluating inclusive entrepreneurship programmes; Financing inclusive entrepreneurship; Entrepreneurship among people with disabilities; Expanding networks; Informal entrepreneurship; Sustaining self-employment), youth entrepreneurship policy reviews, “rapid assessments” of inclusive entrepreneurship policies and programmes, and a forthcoming compendium of good practices.

Further information is available at http://www.oecd.org/industry/inclusive-entrepreneurship.htm or from the OECD Media Division.

Source: Organisation for Economic Co-operation and Development

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