EMCC European Monitoring Centre on Change

Slovenia: 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:
Slovenia
Author:
Matija Rojec
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.

The paper analyses public support instruments to support self-employment and job-creation in one-person and micro enterprises in Slovenia. Slovenia has specific instruments to support self-employment but no such specific instruments for supporting job creation in one-person and micro enterprises. The latter is implicitly supported by general measures targeted to SMEs within active employment policy and entrepreneurship promotion policy. There have not been any major changes in these policies due to economic crisis. We provide three examples of ‘good practice’ in Slovenia, i.e. training at working post, Slovene Enterprise Fund and VEM – National portal for enterprises and entrepreneurs.

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 xx? (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

   
Hiring the first employee      

X

Hiring additional employees/creating additional jobs in micro enterprises      

X

The main discussion related to entrepreneurship in Slovenia is concentrated around low/insufficient level of entrepreneurship in the country. In this context, job creation issue is more a derivative issue. This has not really changed due to global recession.

Slovenia has no specific/explicit policy measures related to one-person and micro enterprises, nor for hiring the first employee, or for hiring additional employees/creating additional jobs in micro enterprises. One may say that this is implicit to various measures for promoting entrepreneurship and development of SMEs.

Slovenia, however, has specific measures on self-employment. Self-employment has always been primarily seen as a tool for job creation and not that much as a tool for increasing entrepreneurship. This is clearly documented by the fact that the only policy measures related to self-employment have always been part of the Active Employment Policy (more on this see in Ignjatović, 2010).

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 (main)

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

In general entrepreneurship policy related documents the main focus is on entrepreneurship and growth/competitiveness, while job creation is more or less supposed to come along.

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)

Slovenia has an explicit programme for stimulating self-employment. The programme has two components. The unemployed person first goes through a training programme providing him/her with information on the programme, presenting basic procedures for establishing an enterprise etc. After finishing the training, a participant receives a subsidy (Ignjatović, 2010; http://www.ess.gov.si/iskalci_zaposlitve/programi_za_iskalce_zaposlitve/samozaposlovanje).

Change due to the financial recession

Please tick:

Yes: √

No: □

The Slovenian government introduced a programme for stimulating self-employment in 1990. In the new millennium, the programme gradually faded, but then strongly increased due to crisis. In 2007, there were almost no subsidies, while in 2009 the number of subsidised persons increased to 4,330 and € 20 million were spent for the programme. In 2010, approximately € 12.5 million were earmarked for this purpose and in 2011 € 17 million. In 2010 and 2011, the demand for these subsidies was much higher than the available resources (Ignjatović, 2010, http://lifestyle.enaa.com/Kariera/Zaposlitev/Na-ZRSZ-zmanjkalo-denarja-za-subvencioniranje-samozaposlovanja.html).

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

Change due to the financial recession

Please tick:

Yes: □

No: □

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)  

Change due to the financial recession

Please tick:

Yes: □

No: □

If ‘Yes’, please elaborate:

As mentioned, Slovenia does not have any special measures/programmes for hiring the first employee or for hiring additional employees/creating additional jobs in micro enterprises. Employment Service of Slovenia (ESS) does, however, offer financial incentives for employers related to training and new employment, which can be used by one-person and micro enterprises. Within incentives for training ESS offers non-refundable funds for part of the costs of practical training of unemployed persons before the decision to employ him/her is taken by the employer. ESS also offers subsidies for new employments. ESS refunds employer’s social contributions for the newly employed workers. Specific incentives (subsidies or tax reliefs) are offered for employers making new employments and being located in the region of Pomurje, for employing workers younger than 26 or older than 55 years, and for employing handicapped persons. These measures have been active even from before the economic crisis and have not been changed because of the crisis. Some other measures have been adopted due to crisis (partial payment of salaries and training costs during temporary stay at home of workers, partial subsidisation of full working time) but they do not relate to employment creating, more to temporary employment preservation.

Slovenia has a number of strategies/programmes/policies which deal with the promotion of entrepreneurship but which do not give special attention to job creation. These documents and measures also do not specifically deal with self-employment, one-person or micro enterprises. As a rule they promote entrepreneurship and growth of SMEs. The most relevant strategic documents among them are: Programme of measures for the promotion of entrepreneurship and competitiveness for 2007-2013 (Ministrstvo za gospodarstvo, 2006), Amended Programme of measures for the promotion of entrepreneurship and competitiveness for 2007-2013 (Vlada Republike Slovenije, 2009), Competitiveness of Slovenian Economy (Vlada republike Slovenije, 2011a), and National Reform Programme 2011-2012 (Vlada Republike Slovenije, 2011b). On the implementation level the following institutions/programmes are the most important: JAPTI (Public Agency of the Republic of Slovenia for Entrepreneurship and Foreing Investment) and its Entrepreneurship Portal, Slovene Enterprise Fund, Employment Service of Slovenia, VEM (‘Vse na enem mestu’ – All at one place) – National portal for enterprises and entrepreneurs. The main objectives, accents and instruments of these documents, institutions and measures have not changed during or due to economic crisis.

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)

There have not been any explicit specific public measures in the above sense. Slovenia, however, is known as having relatively unfriendly business environment, which is also recognised by the World Bank Ease of Doing Business rankings. According to the latest data (2011), Slovenia ranks 42nd among 183 countries; 20th for protecting investors, 28th for starting a business, 38th for closing a business, 56th for trading across borders, 60th for enforcing contracts, 63rd for dealing with construction permits, 80th for paying taxes, 97th for registering property and 116th for getting credit (http://www.doingbusiness.org/data/exploreeconomies/slovenia).

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)

There have not been any explicit specific public measures in the above sense. There is, however, a widespread opinion in the business community and in general, that business environment has substantially deteriorated in Slovenia in the recent years, due to the economic crisis. The Chamber of Craft and Small Business of Slovenia reports that the most important barriers for activities and growth of crafts and small businesses in Slovenia relate to payment indiscipline (payments arrears), existence of grey economy which represents unfair competition, rigid labour market which de-stimulates entrepreneurs to hire new employees, high taxes etc. (http://www.ozs.si/prispevek.asp?IDpm=101&ID=22648).

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, explicitly (Chamber of Craft and Small Business of Slovenia, http://www.ozs.si/)

Yes, explicitly (Chamber of Craft and Small Business of Slovenia, http://www.ozs.si/)

Employees’ organisation

No

No

Not-for-profit organisations

Yes, implicitly, Zavod mladi podjetnik (Institute a young entrepreneurs), www.mladipodjetnik.si

Yes, implicitly, Zavod mladi podjetnik (Institute a young entrepreneurs), www.mladipodjetnik.si

Others

Yes, implicitly, JAPTI (Public Agency of the Republic of Slovenia for Entrepreneurship and Foreign Investment), http://www.japti.si/

Yes, implicitly, Inštitut za podjetništvo in management malih podjetij(Institute for Entrepreneurship and Small Business Management), http://www.gemslovenia.org/institut-ipmmp/

Yes, implicitly, JAPTI (Public Agency of the Republic of Slovenia for Entrepreneurship and Foreign Investment), http://www.japti.si/

Yes, implicitly, Inštitut za podjetništvo in management malih podjetij(Institute for Entrepreneurship and Small Business Management), http://www.gemslovenia.org/institut-ipmmp/

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

Please indicate ‘national level’ vs. ‘regional/local level’

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 Promocija podjetništva in izobraževanje za podjetništvo (Promotion of entrepreneurship and training for entrepreneurship)
Aim/objective

To promote entrepreneurship

Description of support

Promotion of entrepreneurship, entrepreneurship culture and supporting environment via public media, preparation of promotion material, organisation of and participation at entrepreneurship related events, promotion of activities of supporting environment for entrepreneurship and craft, inclusion of entrepreneurship related subjects into education process, promotion of entrepreneurship at schools etc.

Target group

Potential and existing entrepreneurs, pupils at secondary schools, students, teachers, professors, all Slovenians

Initiator and other actors involved

Government, actual performers of this measure are selected at public official invitation.

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

2007-2013

The measure has not been initiated due to the recession.

(Source: Vlada Republike Slovenije, 2009)

Title
Aim/objective

To assure local accessibility of cost efficient consulting services to entrepreneurs.

Description of support

Entrepreneurship consulting and advising in the realisation of business ideas, projects, planning of growth and resolving of business problems

Target group

SMEs and potential entrepreneurs decided to begin with entrepreneurship activity

Initiator and other actors involved

Government and JAPTI (Public Agency for Entrepreneurship and Foreign Investment). JAPTI then search for local partners.

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

2007-2013

The measure has not been initiated due to the recession.

(Source: Vlada Republike Slovenije, 2009)

Title
Aim/objective

To assure SMEs’ easier access to various kinds of training at subsidised prices and, thus, to enable them to increase level of knowledge and expertise related to enterprise operation, growth etc.

Description of support

A broad span of various trainings, which are suppose to give enterprises the expertise, which would improve their every day operations, going to foreign markets etc.

Target group

SMEs and potential entrepreneurs decided to begin with entrepreneurship activity.

Initiator and other actors involved

Government and JAPTI (Public Agency for Entrepreneurship and Foreign Investment). JAPTI then search for local partners.

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

2007-2013

The measure has not been initiated due to the recession.

(Source: Vlada Republike Slovenije, 2009)

Title
Aim/objective

Support to special target groups for their inclusion in entrepreneurship and measures supporting entrepreneurship.

Description of support

Information, entrepreneurship culture promotion, motivation of target groups in order to: create a tailor-made support environment for target groups, promote networking within target groups, acquire information on business opportunities, exchange of good practices.

Target group

Women, young people, persons from less developed or rural areas, vulnerable groups.

Initiator and other actors involved

Government and various ministries responsible for individual target groups.

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

2007-2013

The measure has not been initiated due to the recession.

(Source: Vlada Republike Slovenije, 2009)

Title
Aim/objective

To promote faster development of SMEs which have potential to grow fast with own development lines, assuring high long-term profitability, by improving their access to equity financial sources. To promote private risk capital investment in SMEs.

Description of support

To create a public risk capital holding fund, via public financial institution in cooperation with private risk capital funds. The selection of funds has to be done via transparent and open public procedure. The fund provides risk capital to SMEs.

Target group

SMEs

Initiator and other actors involved

Government

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

2007-2013

The measure has not been initiated due to the recession.

(Source: Vlada Republike Slovenije, 2009)

Title
Aim/objective

Promotion of investments by SMEs by loans with lower than market interest rates, with favourable financial leasings and favourable conditions in granting loans. The objective is to increase the number of SMEs which invest and grow from micro to small and then to medium-sized enterprises. This should also help in creation of new jobs.

Description of support

Provision of investment loans with banks, favourable loans, subsidies, participation in determining the interest rates and interest rates subsidisation, micro loans, various kinds of credit guarantees etc.

Target group

SMEs

Initiator and other actors involved

Government

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

2007-2013

The measure has not been initiated due to the recession.

(Source: Vlada Republike Slovenije, 2009)

Title
Aim/objective

To stimulate employment of difficult-to-be-employed unemployed persons and other unemployed persons to substitute workers at maternity leave.

Description of support

Employer is entitled to the refunding of employer’s social contributions if he/she employs an unemployed from the target group for at least one year.

Target group

Younger than 26 years and older than 55 years unemployed persons being for registered as unemployed for a defined period of time.

Initiator and other actors involved

Employment Service of Slovenia

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

2007-2011.

Measure has not been initiated due to the recession.

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

Usposabljanje na delovnem mestu (Training at working post)

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 (Implicitly)

Operational level

Local

Regional

National

Please ‘X’ and/or describe if relevant

 

X

X

Rationale/motivation for the instrument

(please describe)

To improve the employment possibilities of unemployed persons and to increase their competitiveness at labour market. To acquire and strengthen capabilities, knowledge and skills of unemployed persons and to stimulate employment of persons included in the programme within employers where the training is going on.

Purpose and aims for the instrument (please describe)

The measure offers the company: (i) to train the candidate for a particular job and to get refunded the costs of the training, (ii) to get familiar with and to test the candidate as far as his capabilities, skills etc. is concerned before employing him, (iii) to check if the candidate is possible to adjust to the working environment before employing him, (iv) the possibility to choose the best candidate for the job.

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

Employment Service of Slovenia and its Regional units as the institution responsible for the programme.

Employers, i.e. Slovenian legal or natural persons which provide adequate training programme and assure adequate mentoring.

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

Unemployed persons, some preference is given to difficult-to-be-employed categories and to regions with above average unemployment rate.

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

The measure is part of the Programme of measures of Active Employment Policy for 2007-2013. In 2009-2011, € 12.1 million are available for this measure, 85% of the funds are contributed by the European Social Fund, the remaining 15% are contributed by the Slovenian budget.

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

The applicant which proposes the training programme is the enterprise which would like to train unemployed persons. Two types of training are possible, shorter for two months, and longer for three to six months. The applicant must propose the training programme. He is eligible to receive the refunding of the following costs: costs of mentoring, costs of medical examination of training participants, costs of medical insurance. The trainee receives supplementary money from public budget for training activity and for transport. During the training, the trainee remains registered as unemployed at the Employment Service and keeps receiving all the benefits of this status. The training is implemented within the company which proposes the programme.

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

In 2010, 4,873 contracts on training at working post have been concluded.

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

Since training at working post has been one of the most successful measures of the Active Employment Policy the Government plans, in the future, to put more accent on human resource development. At the same time it is assessed that the measure could be even more successful if they would offer more assistance to enterprises in preparing training programmes. Therefore, the Government plans to offer more assistance to enterprises in preparing these programmes.

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 Government assesses that training at working post has been one of the most successful measures of the Active Employment Policy

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 Government assesses that training at working post has been one of the most successful measures of the Active Employment Policy (http://www.vlada.si/si/teme_in_projekti/izhod_iz_krize/ukrepi_ekonomske_politike/spremembe_na_podrocju_dela/ukrepi_na_trgu_dela/povecanje_ucinkovitosti_izvajanja_ukrepov_aktivne_politike_zaposlovanja/)

Please provide link to evaluation documents if possible

http://www.vlada.si/si/teme_in_projekti/izhod_iz_krize/ukrepi_ekonomske_politike/spremembe_na_podrocju_dela/ukrepi_na_trgu_dela/povecanje_ucinkovitosti_izvajanja_ukrepov_aktivne_politike_zaposlovanja/

Example 2:
Name of the programme/instrument Slovenski podjetniški sklad (Slovenian Enterprise Fund)
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 (Implicitly) X (Implicitly) X (Implicitly)
Operational level Local Regional National
Please ‘X’ and/or describe if relevant     X

Rationale/motivation for the instrument

(please describe)

The Slovenian Enterprise Fund is a central national financial institution founded with the aim of making the sources of funds more accessible to SMEs

Purpose and aims for the instrument (please describe)

To improve access to finance for different stages of development-commercial projects for micro, small and medium sized companies in Slovenia.

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

Slovenian Enterprise Fund is the implementation agency of the Slovenian Government in the field of financial support of the Slovenian enterprise sector

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

SMEs

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

Slovenian Enterprises Fund is an indirect user of the state budget of the Republic of Slovenia

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

Slovenian Enterprise Fund provides appropriate financial instruments under the three financial lines: guarantee-credit line, grant line and equity finance line. The Fund’s instruments are the following: (i) favorable direct and indirect loans for micro-, small and medium-sized companies, (ii) guarantees for micro-, small and medium-sized companies, (iii) subsidies for interest rates, loan costs and guarantee costs, (iv) subsidies for private individuals for establishments and start-ups of companies, (v) subsidies for development projects for micro-, small and medium-sized companies, (vi) investments in the development of business infrastructure for further increase of investments, (vii) capital investments (equity participation), (viii) financial leasing as defined in the legal framework for banks and also financing of the costs when guarantees for financial leasing are issued, (ix) other forms of financing.

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

In 2011, the Fund announced 4 tenders to the total amount of € 119 million of favourable financial resources. The figures for 2010 are 4 tenders to the amount of € 160.81 million, and for 2009 4 tenders to the amount of € 121.4 million.

In 2003-2009, the Fund altogether supported 2,493 SMEs and in 2010 654 SMEs. In its tenders, the Fund pays special attention to young and innovative firms and supports the start-up of firms. In the last five years, the Fund supported 653 so called ‘start-up’ firms, i.e. firms that are younger than 42 months.

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

In 2009-2013, to cease providing non-repayable resources in the form of subsidies and to provide only repayable funds in the form of credits, guarantees, interest rate subsidies, equity financing.

In 2009-2013, to assure special conditions for emerging and new enterprises related to all favorable financial resources.

In 2009-2013, in subsidised SMEs to increase valued added per employee by about 7.5% and to increase number of employees by 3 in three years after the end of the project.

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)

In 2003-2009 the Fund altogether financed 2,340 SMEs. The average value added per employee before the investment was € 27,517, and increased to € 31,476 EUR after the investment, meaning a 14% increase (4% annual).

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)

In 2003-2009 the Fund altogether financed 2,340 SMEs, which created 2,871 new jobs (1.23 new job per firm), thus increasing the employment by 5%.

Please provide link to evaluation documents if possible

http://www.podjetniskisklad.si/index.php?option=com_content&view=article&id=59&Itemid=69

Example 3:
Name of the programme/instrument VEM – Državni portal za podjetja in podjetnike (VEM – National portal for enterprises and entrepreneurs)
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 (Implicitly)    
Operational level Local Regional National
Please ‘X’ and/or describe if relevant X X X

Rationale/motivation for the instrument

(please describe)

The rationale for VEM is to speed up and simplify all the tasks and procedures related to starting up a business. VEM is short for ‘Vse na enem mestu’, which means ‘all at one place’, i.e. a kind of one-stop shop for starting a business.

Purpose and aims for the instrument (please describe)

The aim of the portal is to enable the users as much as possible easier, simple, fast and free of charge communication with public administration. Through the e-VEM portal companies or entrepreneurs may carry out electronic services, which are linked to the formation of a company and some other procedures that are carried out by a business entity upon or after its formation. Some services can be done by entrepreneurs or companies on their own online while in some other cases the VEM office or a Notary’s Office need to be visited.

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

Other stakeholders include: AJPES - Agencija Republike Slovenije za javnopravne evidence in storitve (The Agency of the Republic of Slovenia for Public Legal Records and Related Services), Upravne enote (Administrative Units), Obrtna zbornica Slovenije (Chamber of Craft and Small Business of Slovenia), Gospodarska zbornica Slovenije (Chamber of Commerce and Industry of Slovenia), DURS – Davčni urad Republike Slovenije (Tax Administration of the Republic of Slovenia), JAPTI JAPTI – Javna Agencija RS za podjetništvo in tuje investicije (Public Agency of the Republic of Slovenia for Entrepreneurship and Foreign Investment), regional development agencies and various other institutions. These institutions and networks of their entities around Slovenia act as VEM points where companies and sole traders can get VEM services.

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

Companies, mostly SMEs, and sole traders

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

Project VEM is partly financed by the European Union from the funds of the European Social Fund within the Operative Programme of Human resources Development for 2007-2013, and partly by the Slovenian Government.

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

VEM activities for companies are the following: (i) entry of companies in the Court/Business Register, (ii) registration of companies’ changes in the Court/Business Register, (iii) deletion of companies from the Court/Business Register, (iv) registration of tax data, (v) submission of an application for the issue of the VAT identification number, (vi) obtaining a permission for an artisan or small business, (vii) registration of a member and a worker for statutory social security, (viii) registration of family members for compulsory health insurance, (ix) publication of an open work post.

VEM activities for sole traders are the following: (i) entry of an entrepreneur in the Business Register, (ii) entry of changes regarding a sole trader in the Business Register, (iii) deletion of a sole trader from the Business Register, (iv) registration of tax data, (v) submission of an application for the issue of the VAT identification number, (vi) obtaining a permission for an artisan or small business, (vii) registration of a sole trader and a worker for statutory social security, (viii) registration of family members for compulsory health insurance, (ix) publication of an open work post.

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

In 2010, altogether 110,796 applications for the whole variety of VEM services (See box ‘Activities’) have been submitted via the VEM portal (in 2009, the number was 86,816). Most of the applications, i.e. 64,412 were submitted via e-VEM.

In 2010, 49,764 applications (in 2009, 47,157) were submitted for sole traders via e-VEM.

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

No information available.

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)

It is assessed that on the annual level of savings for companies due to establishment of VEM portal is € 10,2 million (http://www.mju.gov.si/si/splosno/cns/novica/article/14/9372/?cHash=c178ca9718). Also, the number of procedures for starting a business has been reduced from 9 in 2008 to only 2 in 2011, and the time necessary from 60 to 6 days. This is importantly due to the establishment of VEM system. In World Bank Ease of Doing Business Rankings all until 2009, Slovenia was ranked very bad as far as ‘Starting a business rank’ is concerned; the country was ranked 98th in 2007 and 120th in 2008, but then much improved to 41st in 2009, 26th in 2010 and 28th in 2011. Establishment of VEM is one reason for the improvement (http://www.doingbusiness.org/reports/doing-business/doing-business-2011).

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)

In 2010, 110,796 applications for companies have been submitted via the VEM portal (in 2009, the number was 86,816). Most of the applications, i.e. 64,412 were submitted via e-VEM.

In 2010, 49,764 applications (in 2009, 47,157) were submitted for sole traders via e-VEM.

Please provide link to evaluation documents if possible

http://www.mju.gov.si/si/splosno/cns/novica/article/14/9372/?cHash=c178ca9718

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

self-employment promotion programme

Additional information

Additional information relates to the amount of resources allocated for the self-employment promotion programme in Slovenia in 2011. In 2011, € 17 million have been earmarked for this programme, compared to € 12.5 million in 2010. In 2010 and 2011, the demand for these subsidies was much higher than the available resources (Ignjatović, 2010, http://lifestyle.enaa.com/Kariera/Zaposlitev/Na-ZRSZ-zmanjkalo-denarja-za-subvencioniranje-samozaposlovanja.html).

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

X

Commentary

Slovenia has specific instruments to support self-employment but no such specific instruments for supporting job creation in one-person and micro enterprises. The latter is implicitly supported by general measures targeted to SMEs within active employment policy and entrepreneurship promotion policy. There have not been any major changes in these policies due to economic crisis.

I don’t think that there is any real economic argument in favour of measures supporting job creation specifically in one-person and micro enterprises. My view is that the problem of job creation measures is not a lack of very specific measures but, quite the opposite, too many of too specific measures which increase costs and difficulties of their administration, make life to enterprises more difficult and, at the end of the day, decrease the efficiency of these measures.

References:


  • M. Ignjatović. 2010. European Employment Observatory Review: Self-employment, 2010: Slovenia, http://www.eu-employment-observatory.net/en/reviews/natArticles.aspx?id=58&title=Self-Employment%20in%20Europe)
  • Na ZRSZ zmanjkalo denarja za subvencioniranje samozaposlovanja! 31-03-2011. http://lifestyle.enaa.com/Kariera/Zaposlitev/Na-ZRSZ-zmanjkalo-denarja-za-subvencioniranje-samozaposlovanja.html
  • Finančne spodbude za delodajalce (Financial incentives for employers). Zavod RS za zaposlovanje (Employment Service of Slovenia). http://www.ess.gov.si/delodajalci/financne_spodbude.
  • Ministrstvo za gospodarstvo (Ministry of Economy). 2006. Program ukrepov za spodbujanje podjetništva in konkurenčnosti za obdobje 2007-2013 (Programme of measures for the promotion of entrepreneurship and competitiveness for 2007-2013).
  • Vlada Republike Slovenije (Government of the Republic of Slovenia). 2009. Dopolnjen program ukrepov za spodbujanje podjetništva in konkurenčnosti za obdobje 2007-2013 (Amended Programme of measures for the promotion of entrepreneurship and competitiveness for 2007-2013).
  • Vlada Republike Slovenije (Government of the Republic of Slovenia). 2011a. Konkurenčnost slovenskega gospodarstva (Competitiveness of Slovenian Economy).
  • Vlada Republike Slovenije (Government of the Republic of Slovenia). 2011b. Nacionalni reformni program (National Reform Programme 2011-2012).
  • JAPTI – Javna agencija Republike Slovenije za podjetništvo in tuje investicije (Public Agency of the Republic of Slovenia for Entrepreneurship and Foreing Investment). http://www.japti.si/.
  • JAPTI. Podjetniški portal (Entrepreneurship Portal). http://www.podjetniski-portal.si/.
  • Slovenski podjetniški sklad (Slovene Enterprise Fund). http://www.podjetniskisklad.si/.
  • Slovenski podjetniški sklad (Slovene Enterprise Fund). 2010. Track Record za obdobje 2003-2009. http://www.podjetniskisklad.si/index.php?option=com_content&view=article&id=59&Itemid=69.
  • Zavod republike Slovenije za zaposlovanje (Employment Service of Slovenia). http://www.ess.gov.si/.
  • Zavod republike Slovenije za zaposlovanje (Employment Service of Slovenia). Mesečne informacije (Monthly Information), December. 2010. http://www.ess.gov.si/trg_dela/publicistika/mesecne_informacije
  • VEM (“Vse na enem mestu”) – Državni portal za podjetja in podjetnike (“All at one place – National portal for enterprises and entrepreneurs. http://evem.gov.si/evem/.

Matija Rojec, Organisational and Human Resources Research Centre (OHRRC), University of Ljubljana



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