EMCC European Monitoring Centre on Change

Portugal: ERM comparative analytical report on Public support instruments to support self-employment and job creation in one-person and micro enterprises

  • Observatory: EMCC
  • Topic:
  • Published on: 12 January 2012



About
Country:
Portugal
Author:
Heloísa Perista, Eudelina Quintal and Janine Nunes
Institution:

Disclaimer: This information is made available as a service to the public but has not been edited by the European Foundation for the Improvement of Living and Working Conditions. The content is the responsibility of the authors.

Entrepreneurship as tool for job creation, regarding self-employment and hiring additional employees/creating additional jobs in micro enterprises, has been a policy focus in Portugal since 1998. Nevertheless, recent public measures adopted as a result of the financial recession with the aim to increase public revenue or cut public spending may have led to disincentives for self-employment or job creation in one-person or micro enterprises.

Some good practices may be though identified in this domain.

QUESTIONNAIRE

Part 1: Overall policy context

This section aims at giving a brief overview of the general development and status quo of the policy discussion and thereof resulting instruments, measures or initiatives in the field of fostering self-employment and job creation in one-person and micro enterprises (less than 10 employees). Focus is mainly on the developments during the last decade, that is before the global recession. In addition we are asking for your indication of change of policy focus since the recession.

1. General policy approach in the area of self-employment, one-person and micro enterprises at the national level


1.1. Has there been a policy focus/debate on the specific challenges facing entrepreneurship as tool for job creation before the global recession? If so, since when and for how long?

Table 1: Presence of policy focus/debate on entrepreneurship as facilitation for job creation before the crisis
 

Yes, continuously since 1990? (Please indicate year)

Yes, on and off in the last 10 years

(Please indicate ‘X’ where it applies)

Yes, has been in focus, but since xx it is no longer part of the policy focus (Please indicate year)

No, it has never had policy focus before the recession

(Please indicate ‘X’ where it applies)

Self-employment

x

1998

     
Hiring the first employee      

x

Hiring additional employees/creating additional jobs in micro enterprises

x

1998

     

1.2. What is the main focus in policy documents or strategies in relation to public or social partner based support instruments for fostering self-employment or job creation in one-person and micro enterprises? (Please indicate ‘X’, multiple answers possible)

Table 2: Main focus in the policy documents or strategies
 

Entrepreneurship (Business development in general)

Job creation (Employment)

Growth (Competitiveness)

Others (please specify)

Self-employment

x

x

x

 
Hiring the first employee        
Hiring additional employees/creating additional jobs in micro enterprises  

x

x

 

1.3. Please elaborate on the answer given above (with a focus on those developments aimed at employment creation and growth) and indicate if the financial recession has caused a change of focus:

Table 3: The policy content and significance of the financial recession
Self-employment
Elaboration of content (please describe and also indicate whether it is treated explicitly/implicitly)

The National Action Plans for Employment (Planos Nacionais de Emprego – PNE) include a set of measures aiming at the development of entrepreneurial spirit and of self-employment, namely: the creation of self-employment, including by recipients of unemployment benefit; local employment initiatives; the creation of structures to support entrepreneurial development. A specific focus was made on women and long-term unemployed.

The promotion of self-employment is thus treated explicitly in the Portuguese PNE.

The National Action Programme for Growth and Employment (Programa Nacional de Acção para o Crescimento e o Emprego -PNACE) 2005-2008, also includes an explicit focus on the promotion of self-employment. Measures such as: the support to the creation of self-employment, namely by higher educated unemployed people and by women; the programme Market of Initiatives of Entrepreneurial Value (Mercado de Iniciativas de Valor Empresarial - MIVE), aiming at new managers and new enterprises with high potential for growth and innovation; introduction of entrepreneurship as a topic in secondary schools and national contests of ideas and business plans.

Change due to the financial recession

Please tick:

Yes: x

No: □

If ‘Yes’, please elaborate:

Several changes took place during the financial recession.

The Local Employment Initiatives (Iniciativas Locais de Emprego – ILE) programme was created in 2001. Currently the submission of applications is closed since the 3rd December 2009.

The Support Programme for Entrepreneurship and the Creation of One’s Own Job (Programa de Apoio ao Empreendedorismo e à Criação do Próprio Emprego - PAECPE) was launched on the 4th September 2009. This programme gives continuity to the measures foreseen in the PNE, namely regarding the promotion of self-employment and the creation of one’s own job by unemployment insurance beneficiaries. Nevertheless, as a result of financial recession these measures were subjected to some changes, in particular with regard to the target group and access conditions.

This programme includes the support to business creation by unemployed, young people seeking their first jobs and other disadvantaged groups, through mechanisms such as easier access to a credit line with a reduced interest rate, technical support for the establishment and consolidation of projects or the anticipated payment of unemployment benefits. This programme created two credit lines (MICROINVEST and INVEST +). On 28th January 2011 the government decided to increase the overall value of these credit lines.

On 10th March 2009, the government created the budget programme known as Initiative for Investment and Employment.

The IIE programme aims to support the creation of 1,600 new enterprises (and about 3,000 new jobs) by unemployed people, through a specific credit line of €100 million.

Also during the recession the government launched the Initiative for Competitiveness and Employment 2010. This includes measures aiming SMEs in particular. It also includes a set of measures aimed at simplifying and reducing administrative costs for businesses:

- Install by the end of the first half of 2011, new 'Entrepreneur Balconies', allowing entrepreneurs to handle all formalities relating to the establishment and operation of its business in one place, avoiding unnecessary travel;

- Launch by the end of the first half of 2011, the programme ‘Licenciamento Zero’, intended to reduce administrative burdens on businesses by eliminating licensing and other constraints in advance to those who want to open and operate a business, replacing them with enhanced monitoring and accountability mechanisms of promoters;

- Reduce, by the end of the first quarter of 2011, existing unreasonable constraints to entrepreneurship, in terms of minimum share capital.

Hiring the first employee
Elaboration of content (please describe and also indicate whether it is treated explicitly/implicitly)

There are no policy programmes or specific measures focusing on hiring the first employee.

Change due to the financial recession

Please tick:

Yes: □

No: x

If ‘Yes’, please elaborate:

Hiring additional employees/creating additional jobs in micro enterprises
Elaboration of content (please describe and also indicate whether it is treated explicitly/implicitly)

Micro enterprises are treated explicitly in the PNE. These deserve particular recognition given their important contribution for job creation. Specific support for micro enterprises is thus foreseen, in terms of fiscal and para-fiscal incentives, support to investment, information and support systems, vocational training and certification.

Also the Economy Operational Programme (Programa Operacional da Economia) 2000-2006 includes several measures aiming at the increase of competitiveness and the creation of qualified employment in small and micro companies.

The PNACE 2005-2008 includes the InovJovem programme, intending to facilitate the integration of young qualified staff in SMEs.

Change due to the financial recession

Please tick:

Yes: x

No: □

If ‘Yes’, please elaborate:

The IIE included several measures aiming at the hiring of additional employees, namely in SMEs, therefore also in micro enterprises:

Inov-Export programme, to support the hiring, in a first phase, of 500 young specialists in international trade in exporting or potentially exporting SMEs (with a target of integrating a total of 1,500);

50% reduction in the contributions for social security in the case of hiring of unemployed aged 55 years old or over, registered for 6 months (later 9 months) at least;

Plus a set of temporary measures, in force only during 2009:

Reduction of the employers’ social security contributions regarding workers aged over 45, in micro and small companies;

Financial support of €2,000, plus two years exemption of contributions for social security, when hiring youngsters (under a full-time permanent contract) or long-term unemployed.

The Initiative for Competitiveness and Employment foresees a new compensation model for the termination of the employment contract in order to encourage new hiring and job creation, reducing the risk of costs of corporate restructuring.

   

2. Disincentives for self-employment and job creation

The following two questions will investigate whether there has been a change in the political agenda which has forced new political initiatives that may result in disincentives for job creation and business development (e.g. considerations regarding public budget).


2.1 Have public measures (e.g. with the aim to increase public revenue or cut public spending) led to disincentives for self-employment or job creation in one-person or micro enterprises before the financial recession? (Please briefly describe the major developments/initiatives (max. 300 words)

Taking into consideration the policies implemented before the financial recession, referred to in the previous question, we may state that there were no disincentives for self-employment or job creation in one-person or micro enterprises. On the contrary the measures were a great incentive in these matters.


2.2 Have public measures (e.g. with the aim to increase public revenue or cut public spending) led to disincentives for self-employment or job creation in one-person or micro enterprises as a result of the financial recession? (Please describe – max. 300 words)

Public measures adopted in 2010 and 2011 as a result of the financial recession with the aim to increase public revenue or cut public spending may have led to disincentives for self-employment or job creation in one-person or micro enterprises.

On the one hand, the changes due to the financial recession described above in 1.3 affected SMEs in general, and also micro enterprises.

On the other hand, several other measures, namely included in the several Programmes for Stability and Growth (Programa de Estabilidade e Crescimento - PEC), also had the same sort of negative impact:

- The increase in VAT rates: in 2010, the increase in 1 p.p. of all VAT rates, normal, intermediate and reduced; in 2011, the increase in 2 p.p. of the normal VAT rate;

- Surtax on the income of single and collective persons;

- Revision of the fiscal benefits for collective persons.

Increased energy prices and transport costs may also constitute an indirect disincentive for job creation also in micro enterprises.

3. Representation of/lobbying for self-employed and micro enterprises


Are self-employed and micro enterprises in your national context explicitly or implicitly (e.g. entrepreneurs or SMEs in general) represented by the following types of organisations (e.g. for lobbying, defending their interest etc.)?

Table 4: Representation of self-employed and micro enterprises
 

Self-employed

Micro enterprises

Employers’ organisations

Yes, implicitly

Portuguese Trade and Services Confederation (Confederação do Comércio e Serviços de Portugal - CCP)

Confederation of Portuguese Tourism (Confederação do Turismo Português – CTP)

Entrepreneurial Confederation of Portugal (Confederação Empresarial de Portugal - CIP)

Farmers’ Confederation of Portugal (Confederação dos Agricultores de Portugal-CAP

Yes, explicitly

CCP

CTP

CIP

CAP

Association of Micro, Small and Medium Enterprises of Portugal – SMEs Portugal (Associação das Micro, Pequenas e Médias Empresas de Portugal - PME Portugal)

Employees’ organisation

Waiting for information

No

Not-for-profit organisations

No

No

Others

No

No

Part 2: Identification and description of relevant recent support instruments

The following section asks for the identification of public or social partner based support instruments initiated during or after the recent economic crisis (that is, 2008 onwards). These measures might have, but must not necessarily have been triggered by the recession. Measures may also have been initiated earlier, but changed in order to adapt to the recession or other recent developments. Rather than a comprehensive list of all instruments available at national, regional or local level, the most important, most innovative, most interesting and most effective tools are to be described. Thereof, a selection of up to three ‘Good Practices’ to be described in more detail is to be made.

1. Selection of region(s) when total coverage of the entire regional and local level is too comprehensive

When providing the brief overview and the three ‘Good Practices’ in this section of the questionnaire, measures and instruments at national level have to be included. We would in addition ask you to include regional and local level initiatives where relevant. Nonetheless, a complete coverage of regional and local levels may not be possible for all countries (e.g. because of a high degree of decentralisation resulting in a wide range of respective measures characterised by considerably heterogeneity). At the same time, it can be assumed that for instruments targeting at supporting self-employment and the creation of employment in one-person and micro enterprises the local administrative level is of considerable importance. If so, such measures will be designed to fit to the local characteristics and needs, resulting in a wide variety of different approaches. In this case, one or few local areas or regions may be selected to be covered in this report. Details on the selection are given in table 5.

Table 5: Administrative level/region(s) covered for the following research (max. 50 words per region)

Administrative level relevant for the rest of the questionnaire

National level

If a specific regional/local are is selected, please provide the following information

Name of region

 
Motivation for selecting this region

Facts about the region e.g.

- Geographic location

- No. of inhabitants

- Business structure (sector, size)

- Labour market

- Specific characteristics if applicable

 

2. Brief overview of recent instruments to foster self-employment or job creation in one-person and micro enterprises


2.1. Please provide a brief description (max. 800 words) of public or social partner based instruments recently initiated (2008 onwards) to support self-employment and job creation in one-person or micro enterprises.

Measures covered by the European Employment Observatory Review on self-employment 2010, European Commission, Directorate-General for Employment, Social Affairs and Equal Opportunities are to be omitted to avoid duplication (see Part 3 of this questionnaire).

Table 6: List of recent instruments

Title

Tipologia de Intervenção 7.6 Apoio ao empreendedorismo, associativismo e criação de redes empresariais de actividades económicas geridas por mulheres (Intervention Typology 7.6 Support for entrepreneurship, associativism and creation of entrepreneurial networks of economic activities managed by women)

Aim/objective

To promote strategies to support women entrepreneurship and promote associativism and networking, favoring self-employment, entrepreneurial capacity and the quality of their participation in active life.

Description of support

The access to funding is made through application to a subsidy with a maximum duration of 36 months.

This funding may cover the following activities:

- Training actions on gender equality, management, interpersonal relationships, leadership, and ICT.

- Tutorial, consultancy and technical assistance aiming at the creation and/or sustainability of enterprises run by women, namely through the development of a Business Plan and eventual attribution of a start-up award for companies.

- Support actions to the creation of inter-companies networks, facilitating the access to and the dissemination of information on training, markets, business and funding opportunities, etc

Target group

Women who intend to create their own-job, regardless of their employment situation.

Also women entrepreneurs associations as well as other entrepreneurial, commercial or industrial associations and non-profit regional development agencies, cooperatives and other social economy organisations.

Initiator and other actors involved

Human Potential Operational Programme from the National Strategic Reference Framework (Programa Operacional do Potencial Humano - POPH - Quadro de Referência Estratégico Nacional - QREN).

Commission for Citizenship and Gender Equality (Comissão para a Cidadania e a Igualdade de Género - CIG), as intermediate body.

Duration (please also indicate whether the measures has been initiated due to the recession)

This measure was initiated before the recession, on the 1st January 2008. It will be in force until 2013.

Title

SI I&DT – Sistema de Incentivos à Investigação e Desenvolvimento Tecnológico nas Empresas (IS for R&TD - Incentive Scheme for Research and Technological Development within Enterprises)

Aim/objective

It aims at intensifying the national effort in the area of R&TD and at creating new knowledge so as to increase the competitiveness of enterprises by promoting the coordination between enterprises and entities of the Science and Technology System (STS).

Description of support

Granting of a subsidy for the Development and Reinforcement of Internal R&TD Skills: R&TD Teams – Projects promoted by SMEs, which aim for sustainable development of internal R&TD and innovation management skills, through the setting-up of permanent structured units exclusively dedicated to R&TD activities in the enterprise.

Target group

Enterprises; STS Entities (Scientific and Technological System; Business associations (in the case of collective R&TD projects).

Initiator and other actors involved

Competitiveness Factors Operational Programme from the National Strategic Reference Framework (Programa Operacional Factores de Competitividade - Quadro de Referência Estratégico Nacional - QREN).

Duration (please also indicate whether the measures has been initiated due to the recession)

This measure was initiated during recession, in response to the current economic and financial crisis. It came into force on the 21st March 2009 and is applicable until 2013.

Title

SI Inovação – Sistema de Incentivos à Inovação (IS Innovation -Incentive Scheme for Innovation)

Aim/objective

It aims to innovate within the business structure through the production of new goods, services and processes that foster progression within the value chain and the adjustment towards international markets; this incentive scheme also aims at fostering skilled entrepreneurship and structuring investment in new areas with growth potential.

Description of support

This support is a subsidy for investment projects in productive innovation promoted by single enterprises or through cooperation.

Target group

Enterprises

Initiator and other actors involved

Competitiveness Factors Operational Programme from the National S trategic Reference Framework (Programa Operacional Factores de Competitividade - Quadro de Referência Estratégico Nacional - QREN).

Duration (please also indicate whether the measures has been initiated due to the recession)

This measure was initiated during recession, in response to the current economic and financial crisis. It came into force on the 21st March 2009 and is applicable until 2013.

Title

SI Qualificação PME – Sistema de Incentivos à Qualificação e Internacionalização de PME (IS for SME Qualification - Incentive Scheme for the Qualification and Internationalisation of SMEs)

Aim/objective

It aims to promote the competitiveness of SMEs by increasing productivity, flexibility and responsiveness to and presence in the global market.

Description of support

This support is a subsidy for investment projects promoted by enterprises (on an individual basis or in cooperation), or by public entities, business associations or STS (Science and Technology System) entities operating in the SME sector, and aimed at innovation, modernisation and internationalisation of enterprises, by making use of competitiveness dynamic factors.

Target group

- Enterprises of any kind and of whatever legal form

- Public entities with specific powers in the area of public policies for SMEs, associations that work in partnership with those entities to implement public policies, business associations and STS entities, in the case of joint project.

Initiator and other actors involved

Competitiveness Factors Operational Programme from the National Strategic Reference Framework (Programa Operacional Factores de Competitividade - Quadro de Referência Estratégico Nacional - QREN).

Duration (please also indicate whether the measures has been initiated due to the recession)

This measure was initiated during recession, in response to the current economic and financial crisis. It came into force on the 21st March 2009 and is applicable until 2013.

Title

Taxa Zero para a Inovação (Zero Rate for Innovation)

Aim/objective

It aims to reduce context and administrative costs for innovative SMEs or enterprises owned by young entrepreneurs who invest in research and development favoring the creation of wealth and jobs.

Description of support

It foresees the exemption of taxes and emoluments due to acts performed by services rendered by the direct or indirect State Central Administration for SMEs, duly certified by the Institute of Support to Small and Medium Enterprises and Innovation (Instituto de Apoio às Pequenas e Médias Empresas e à Inovação – IAPMEI), which in the last three economic exercises have i) had costs with research and development, ii) maintained or increased the number of workers, and iii) increased their overturn in an average amount equal or higher to 5%.

Target group

Innovative SMEs or enterprises owned by young entrepreneurs.

Initiator and other actors involved

Government and IAPMEI.

Duration (please also indicate whether the measures has been initiated due to the recession)

This measure was initiated during the recession. It will come into force on the 1st November 2011 and it will be applicable until the 31st October 2014.

Title

Programa INOV-Export (INOV-Export Programme)

Aim/objective

It aims to support, in a first phase, the integration of 500 young professionals specialised in international trade in exporting or potentially exporting SMEs.

Description of support

Paid professional internships to young graduates;

Support to the hiring of young graduates or qualified unemployed.

Target group

National SMEs.

Initiator and other actors involved

AICEP- Portugal Global in articulation with the Institute for Employment and Vocational Training (Instituto do Emprego e Formação Profissional, I. P. - IEFP, I. P)

Duration (please also indicate whether the measures has been initiated due to the recession)

Approved in April 2010 and in force during a 36 months period.

This measure was initiated during the recession.

Title

Plataforma do Empreendedor (Entrepreneur’s Platform)

Aim/objective

To compile and disseminate contents related to employment and entrepreneurship through a web platform and to promote workshops, in order to contribute to the dynamisation of national economy and to favor the creation of self-employment.

Description of support

Waiting for information

Target group

Waiting for information

Initiator and other actors involved

Office of Planning and Strategy – Ministry of Labour and Social Solidarity - Gabinete de Estratégia e Planeamento – Ministério do Trabalho e da Solidariedade Social.

Duration (please also indicate whether the measures has been initiated due to the recession)

Waiting for information


2.2. In-depth description of ‘Good Practices’

Please choose up to three examples from the above list that can be considered as ‘Good Practice’ (e.g. because of their effectiveness, innovative character or beneficial cooperation among different stakeholders) and describe them in detail.

Table 7: Description of ‘Good Practice’ examples of recent support instruments

Name of the programme/instrument

In national language and English

Tipologia de Intervenção 7.6 Apoio ao empreendedorismo, associativismo e criação de redes empresariais de actividades económicas geridas por mulheres ( Intervention Typology 7.6 Support for entrepreneurship, associativism and creation of entrepreneurial networks of economic activities managed by women)

Is the instrument explicitly addressing any of the following:

Self-employment

Hiring the first employee

Hiring additional employees/creating additional jobs in micro enterprises

Please ‘X’ and/or describe if relevant

x

   

Operational level

Local

Regional

National

Please ‘X’ and/or describe if relevant

   

x

Rationale/motivation for the instrument

(please describe)

In the definition of this measure, the affirmation of a female entrepreneurship of quality, related to the higher educational level of women and to the investment on the articulation between professional and family life, was identified as strength.

Weaknesses were also identified, such as:

the predominance of an entrepreneurship of need;

difficulties in the access to funding for innovation;

low sensitiveness of commercial banks to support innovative projects.

This measure is part of a strategy that aims at reinforcing the intervention of women in all sectors of social life, namely in decision-making and in the labour market, increasing competitiveness, female employment and the elimination of the gender pay gap, in order to promote economic independence and the exercise of citizenship.

Purpose and aims for the instrument (please describe) To promote strategies to support women entrepreneurship and promote associativism and networking, favoring self-employment, entrepreneurial capacity and the quality of their participation in active life.
Initiator
Please ‘X’      
Other stakeholders actively involved in implementation (please name them and describe their roles)

It has the role to check the compliance of the formal requirements of the applications as well as to instruct the process of analysis of the applications.

Target groups        
Please describe the target groups (sector, age, level of education, gender)

Women who intend to create their own-job, regardless of their employment situation.

Also women entrepreneurs associations as well as other entrepreneurial, commercial or industrial associations and non-profit regional development agencies, cooperatives and other social economy organisations.

Funding        
Please describe the funding of the instrument/programme (national and European sources, budget available)

POPH – QREN:

Total budget: €5,834,519,232

Priority Axis Gender Equality –

Total funding - €68,302,621

European source – ESF - €47,811,835

National contribution – €20,490,786

There is no specific information available on funding for this intervention typology.

Activities    
Please describe the activities of the programme or institutional initiative as detailed as possible

- Training actions on gender equality, management, interpersonal relationships, leadership, and ICT.

- Tutorial, consultancy and technical assistance aiming at the creation and/or sustainability of enterprises run by women, namely through the development of a Business Plan and eventual attribution of a start-up award for companies.

- Support actions to the creation of inter-companies networks, facilitating the access to and the dissemination of information on training, markets, business and funding opportunities, etc.

Results (Effectiveness)      
Please describe the results e.g. number of beneficiaries, advised enterprises

The POPH 2009 execution report provides the following data:

- 362 women were covered by training/consultancy/networking actions;

- 314 women benefited from consultancy; 26.2% of these created an enterprise.

Challenges in order to reach the objectives e.g. for the organisation offering the instrument, the entrepreneurs (Please describe); and if available how these have been overcome

The current economic, financial and social instability reflects on the difficulties of the beneficiary organisations to keep the women involved until the end of the projects. There is a large time gap between the creation of the micro enterprise and all the investment made upstream – training and consultancy.

As an attempt to minimise the impact of this, the specific regulation was changed: the training period was diminished – from a duration ranging between 228 and 350 hours to a duration ranging between 132 and 194 hours.

The duration of the consultancy/tutorial actions was also reduced from 100 to 80 hours. On the other hand, it became compulsory that one third of these take place after the enterprise has been created.

Assessments of the effectiveness e.g. investments made in order to reach the objectives of the programme (outcome vs. investment) (Please base this assessment on evaluations when possible) The information available only refers that the financial execution of the consultancy and technical assistance actions for the creation of micro enterprises run by women was of €976,492.14 in 2009.
Outcomes (Efficiency)  
Increasing self-employment, growth and employment e.g. number of start-up and/or jobs created etc. (please describe, preferably based on evaluations, otherwise on experts’ assessment)

The available information only refers that 104 enterprises run by women, involving a total of 397 women, were created in 2009.

These figures do not reflect the creation of enterprises in the Lisbon’s region.

Please provide link to evaluation documents if possible

http://www.poph.qren.pt/upload/docs/Área%20Reservada/2010/CA/5CA/RELATORIO_ANUAL_EXECUÇÃO_POPH_2009_06_30.pdf

Name of the programme/instrument

Entrepreneur Platform

Is the instrument explicitly addressing any of the following:

Self-employment

Hiring the first employee

Hiring additional employees/creating additional jobs in micro enterprises

Please ‘X’ and/or describe if relevant

Promote entrepreneurship and self-employment

   

Operational level

Local

Regional

National

Please ‘X’ and/or describe if relevant

   

x

Rationale/motivation for the instrument

(please describe)

The AIP, aware of the economic crisis and the growing unemployment, and conscious that entrepreneurship would increasingly become an option to be considered, designed this innovative project, which main objective is to focus consistently on the issues of entrepreneurship and employment.

In the development of this project, it was considered that entrepreneurship should have a broad treatment, but also a sectoral one regarding the systematic collection of data, namely in order to put together and make clear already existing information.

The main motivation for the creation of this Platform was to raise awareness on the issue of entrepreneurship; to facilitate the access to structured and up-dated contentes; to approach potential entrepreneurs to the people and structures who work more closely on this issue.

Purpose and aims for the instrument (please describe)

- Selection of several topics of great opportunity, according to the European Commission's proposals, to ensure the skills needed by 2020 and enhance the development of new activities / jobs (new skills for new jobs).

- Workshops, in several regions of mainland Portugal.

- To contribute to the identification of new skills needed in the labour market and in emerging sectors.

- To build structuring and support contents, both at the individual level or at the level of organisations’ leverage.

- To provide educational and information materials, under open access.

- To disseminate contents through digital media and online, in order to replicate and spread good practices and knowledge acquisition.

- To provide personalised information to participants and potential entrepreneurs (physical and virtual support units).

- To create an electronic platform to support workshops, including relevant information to potential entrepreneurs.

- To create and dinamize an entrepreneurship game, to facilitate access and consolidate contents related to entrepreneurship.

- To identify and establish partnerships with public and private organisations which develop activity on this topic.

Initiator
Please ‘X’      
Other stakeholders actively involved in implementation (please name them and describe their roles)

Other important partners:

Regional Business Associations, educational institutions, funding agencies, incubators / business incubators, entrepreneurs and experts in different thematic analysis. These partnerships have facilitated the regionalization of the workshops and of the other dynamics of the Entrepreneur Platform and have contributed content to the online portal.

Target groups        
Please describe the target groups (sector, age, level of education, gender)

The Entrepreneur Platform is designed to a very extensive public, since the issue of entrepreneurship is increasingly an issue without barriers of age, education level, activity sector, experience, gender, etc.

Thus all the dynamics are developed in order to be incorporated or adjusted by anyone seeking to implement a project / business.

Funding        
Please describe the funding of the instrument/programme (national and European sources, budget available)
Activities    
Please describe the activities of the programme or institutional initiative as detailed as possible

The Entrepreneur Platform develops different activities (virtual and physical) to achieve its objectives:

- creating and maintaining a web portal, in which relevant information is compiled on the subject of entrepreneurship;

- thematic or transversal workshops, getting together diferente entrepreneurship agents;

- development of a game on entrepreneurship, providing assimilation and access to new concepts and management techniques essential for those who want to become entrepreneurs;

- maintenance of a Virtual Office Support and promotion of Thematic Support Units (in the workshops) to ensure clarification on different subjects: business plan, intellectual property, subsidies and incentives, financing, marketing, education, legislation, among others;

- dynamization of an Observatory and suggestion of useful links to those who want implement a business idea;

- presence in others’ initiatives; - aimed at the promotion of entrepreneurship and dissemination of entrepreneurial good practices;

- insertion of the project in the social network - Facebook.

Results (Effectiveness)      
Please describe the results e.g. number of beneficiaries, advised enterprises

Some relevant indicators (as of August 1, 2011):- Web-Portal - www.empreender.aip.pt: more than 77,600 page views and more than 19,100 visitors.

-Workshops: 9 workshops in Lisbon (2010), six regional workshops (year 2011) and a plenary session (2010) with a international keynote (entrepreneur with a recognized merit). These sessions reached 2200 participants, 44 speakers (plus institutional representatives in each session), 39 entrepreneurial exemplary cases and more than 55 Thematic Support Units;

- EMPREENDER - The game. Implementation of 6 regional rounds and 232 games submitted by portal.

- Presence in the social network Facebook: more than 460 friends.

- Creation of several partnerships, both for dissemination of the project and activities development.

Challenges in order to reach the objectives e.g. for the organisation offering the instrument, the entrepreneurs (Please describe); and if available how these have been overcome

The main idea for launching the Entrepreneur Platform, in particular as regards the Web portal design, was to compile information on the subject which used to be spread by several agents and communication channels and make it available in an easily understandable and as intuitive as possible way. Also the identification of topics for the workshops emerged from analysis of the economic situation (reference to the considered as priorities sectors for EU: Energy, Forests, Tourism and Health) and observation on the issues that are usually raised by potential entrepreneurs: funding, learning, technology, opportunities and challenges for the future, difficulties in implementing a project / ideas .

To achieve these objectives it has been critical:

- research and implementation of partnerships which have allowed a constantly updated of the information provided in this project;

- a daily observation of portals and press releases on the topic of entrepreneurship;

- and the presence in several initiatives, connected to this topic, which provide direct contact with the target audience of the Entrepreneur Platform.

Assessments of the effectiveness e.g. investments made in order to reach the objectives of the programme (outcome vs. investment) (Please base this assessment on evaluations when possible)

Information not available.

Outcomes (Efficiency)  
Increasing self-employment, growth and employment e.g. number of start-up and/or jobs created etc. (please describe, preferably based on evaluations, otherwise on experts’ assessment)

The indicators exemplified here do not apply to this project.

Please provide link to evaluation documents if possible

Not applicable.

Example 2:

Name of the programme/instrument

In national language and English

SI Inovação – Sistema de Incentivos à Inovação (IS Innovation -Incentive Scheme for Innovation)

Is the instrument explicitly addressing any of the following:

Self-employment

Hiring the first employee

Hiring additional employees/creating additional jobs in micro enterprises

Please ‘X’ and/or describe if relevant

   

x

Operational level

Local

Regional

National

Please ‘X’ and/or describe if relevant

   

x

Rationale/motivation for the instrument

(please describe)

This incentive is part of a scheme for business investment that plays a significant role in the QREN ‘Competitiveness Factors’ Operational Programme.

The incentive scheme for business investment is one of the fundamental instruments of public policies for stimulating the economy, particularly as concerns the promotion of innovation and regional development.

In the context of the current stage of development of the Portuguese economy and its position in the global competitive context, the incentives for investment by enterprises aim to increase productivity and the competitiveness of enterprises and to improve Portugal’s expertise profile.

Purpose and aims for the instrument (please describe)

It aims to innovate within the business structure through the production of new goods, services and processes that foster progression within the value chain and the adjustment towards international markets; this incentive scheme also aims at fostering skilled entrepreneurship and structuring investment in new areas with growth potential.

Initiator
Please ‘X’      
Other stakeholders actively involved in implementation (please name them and describe their roles)

The Management of the IS Innovation - Incentive Scheme for Innovation involves:

- The Management Bodies, which are the entities responsible for the opening of Calls for Proposals, the final decision on the grant of incentives, and their control and financing.

- The Selection Committee, which issues opinions on the opening of Calls for Proposals and on the draft financing decisions.

- The Technical Bodies, which are the entities responsible for project assessment, incentive contracts and the control and monitoring of implementation, as well as for ensuring communication with the promoter;

- As to national or foreign investment projects involving amounts equal to or greater than € 25 million, or projects promoted by enterprises with a consolidated annual turnover exceeding € 75 million or non-business entities with an annual budget exceeding € 40 million AICEP- Portugal Global;

- As to other projects in the Tourism Sector – Portugal Tourism Board (Instituto do Turismo de Portugal, I.P.);

- As in other projects the IAPMEI.

Target groups        
Please describe the target groups (sector, age, level of education, gender)

To be specified in the Calls for Proposals - the following EAC (Economic Activities Classification) categories are eligible in general terms:

•Industry: EAC divisions 10 to 37;

•Commerce: EAC divisions 50 to 52 (only for SMEs);

•Services: EAC divisions 72, 73, 74 and 90; EAC groups 921 and 925; EAC class 9231; EAC subclasses 01410, 02012 and 02020;

•Tourism: EAC groups 551, 552, 553, 554, 633 and 771; Activities declared of interest to Tourism that fall within EAC Classes/Sub-classes 9232, 9233, 92342, 9261, 9262, 9272, 93041 and 93042;

•Energy: EAC division 40 (production only);

•Transport and Logistics: EAC groups 602, 622, 631, 632 and 634.

In special cases and where properly substantiated, the Management Body may consider supporting investment projects in other activity sectors.

Other activity sectors, to be defined by Specific Regulation, may be considered eligible under the category of Strategies for Collective Efficiency.

Support for projects that belong to sectors that are subject to EU-imposed limitations on State aid must be consistent with applicable Community frameworks.

Funding        
Please describe the funding of the instrument/programme (national and European sources, budget available)

There is no specific information available on funding for this incentive scheme.

Activities    
Please describe the activities of the programme or institutional initiative as detailed as possible

- technology transfer through the acquisition of patent rights, licences, know-how or technical knowledge not protected by patent, provided that in the case of non-SMEs these expenses do not exceed 50% of project eligible expenses;

- studies, diagnoses, audits, marketing plans, and architecture and engineering projects related to the investment project;

- international promotion, namely renting of equipment or exhibition space, contracting of specialised services, travel and accommodation, and acquisition of specific information or documentation related to international promotion, in so far as they are concerned with the following activities:

• anticipative actions and presence in external markets, namely: market research, participation in international tenders, attendance at international meetings in external markets, promotional actions and establishment of contacts with international markets;

• promotional and international marketing actions, namely: design and preparation of promotional material and information, and design of international marketing programmes.

• investments aimed at reconciling family and working life, as well as the costs associated with the implementation of Equality Plans;

• investment in human resources training within the scope of the project, to be established by specific regulation, etc.

Results (Effectiveness)      
Please describe the results e.g. number of beneficiaries, advised enterprises

Nevertheless, the evaluation of QREN refers that the amounts approved until September 30, 2009 support the conclusion that there was an improved system of innovation and development of R&TD, with high relevance for the support granted under the approved incentive schemes to companies - IS Innovation.

Challenges in order to reach the objectives e.g. for the organisation offering the instrument, the entrepreneurs (Please describe); and if available how these have been overcome There is no information available on this topic.
Assessments of the effectiveness e.g. investments made in order to reach the objectives of the programme (outcome vs. investment) (Please base this assessment on evaluations when possible)
Outcomes (Efficiency)  
Increasing self-employment, growth and employment e.g. number of start-up and/or jobs created etc. (please describe, preferably based on evaluations, otherwise on experts’ assessment)

Please provide link to evaluation documents if possible
Example 3:

Name of the programme/instrument

In national language and English

Plataforma do Empreendedor (Entrepreneur’s Platform)

Is the instrument explicitly addressing any of the following:

Self-employment

Hiring the first employee

Hiring additional employees/creating additional jobs in micro enterprises

Please ‘X’ and/or describe if relevant

x

   

Operational level

Local

Regional

National

Please ‘X’ and/or describe if relevant

   

x

Rationale/motivation for the instrument

(please describe)

No information available.

Purpose and aims for the instrument (please describe)
Initiator
Please ‘X’      
Other stakeholders actively involved in implementation (please name them and describe their roles)
Target groups        
Please describe the target groups (sector, age, level of education, gender)
Funding        
Please describe the funding of the instrument/programme (national and European sources, budget available)
Activities    
Please describe the activities of the programme or institutional initiative as detailed as possible

No information available.

Results (Effectiveness)      
Please describe the results e.g. number of beneficiaries, advised enterprises
Challenges in order to reach the objectives e.g. for the organisation offering the instrument, the entrepreneurs (Please describe); and if available how these have been overcome
Assessments of the effectiveness e.g. investments made in order to reach the objectives of the programme (outcome vs. investment) (Please base this assessment on evaluations when possible)

No information available.

Outcomes (Efficiency)  
Increasing self-employment, growth and employment e.g. number of start-up and/or jobs created etc. (please describe, preferably based on evaluations, otherwise on experts’ assessment)

No information available.

Please provide link to evaluation documents if possible

Part 3: Annex: Update on recent self-employment study

The recent European Employment Observatory Review on self-employment 2010, European Commission, Directorate-General for Employment, Social Affairs and Equal Opportunities provides insight into support instruments for self-employment. To avoid duplication of this information, we ask you as National Correspondent to omit these measures already covered in your research (Part 2 of this questionnaire), and only update or add any additional details or measures that exceed the information already provided in this report.

Table 8: Additional information on specific instruments to the EEO national report on self-employment:

Title of the instrument

Support programme for entrepreneurship and the creation of one’s own job (Programa de Apoio ao Empreendedorismo e à Criação do Próprio Emprego - PAECPE)

Additional information

In January 2011, the Government decided to reinforce and extend the support to be provided under the PAECPE. The change consisted in the increase of the overall value of the credit line to €20,000, of the levels of the total amount of investment per project and of the amount of funding eligible for this credit line.

The evolution over time of the supports granted under PAECPE may be observed in the following table, built on the basis of data released by the Execution Reports on the Employment and Vocational Training Programmes and Measures 2010-2011. A remarkable increase in the number of supports granted took place between September and November 2010. After, following a significant decrease, the figures for March 2011 show a new but slight increase.

Support programme for entrepreneurship and the creation of one’s own job

2010

2011

January

181

73

February

242

68

March

180

313

April

326

--

May

491

--

June

673

--

July

879

-

August

155

--

September

1412

--

October

1681

--

November

1930

--

December

580

--

Source: Execution Reports on the Employment and Vocational Training Programmes and Measures 2010-2011

Table 9: Please add any other comments to the EEO national report on self-employment:

We have no other comments to add.

Table 10: Please indicate ‘X’ if you have no additional information to the EEO national report on self-employment:

Please indicate ‘X’ if you have no additional information to provide

 

Commentary

In a period of deep changes in the Portuguese society, entrepreneurship, regarding self-employment and job creation in one-person or micro enterprises, has been largely debated, either among public bodies or social partners.

Public measures adopted in 2010 and 2011 as a result of the financial recession with the aim to increase public revenue or cut public spending have led to disincentives for self-employment or job creation in one-person or micro enterprises.

This represents the reversal of a situation, experienced since the end of the 1990s, when several policy measures were launched and implemented, constituting a strong incentive to these forms of entrepreneurship as a tool for job creation.

References

National Strategic Reference Framework for 2007-2013(Quadro de Referência Estratégico Nacional – QREN 2007-2013

Available at: www.qren.pt/download.php?id=1154

Human Potential Operational Programme for 2007-2013 (Programa Operacional do Potencial Humano POPH 2007-2013)

http://www.poph.qren.pt/content.asp?startAt=2&categoryID=376

Execution Reports on the Employment and Vocational Training Programmes and Measures 2010-2011 (Síntese da Execução dos Programas e Medidas de Emprego e Formação Profissional 2010 e 2011. Available at:

http://www.iefp.pt/estatisticas/IndicadoresActividade/SinteseExecucao/Paginas/Home.aspx

The National Action Programme for Growth and Employment (Programa Nacional de Acção para o Crescimento e o Emprego -PNACE) 2005-2008. Available at:

http://www.planotecnologico.pt/document/relatoriopnace2007_Portugal_2a.pdf

Support Programme for Entrepreneurship and the Creation of One’s Own Job (Programa de Apoio ao Empreendedorismo e à Criação do Próprio Emprego - PAECPE

Available at:

http://www.iefp.pt/apoios/entidades_sem_fins_lucrativos/Documents/PAECPE%20-%20Apoio%20T%C3%A9cnico%20-%20Regulamento.pdf

National Action Plans for Employment (Planos Nacionais de Emprego – PNE) 2000-2008,

Office of Strategy and Planning of the MTSS (Gabinete de Estratégia e Planeamento do MTSS, GEP/MTSS), Available at:

http://www.gep.mtss.gov.pt/estudos/pne.php

Heloísa Perista, Eudelina Quintal and Janine Nunes, CESIS



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