E–MAGAZINE OF THE MAŁOPOLSKA REGION BRUSSELS OFFICE
closer to Brussels 20
entre preneur ship in the EU
Editor : Renata Jasiołek
Contact: Małopolska Region Brussels Office Rue du Luxembourg 3 1000 Bruksela Belgia bruxelles@umwm.pl
Design: advert www.advertstudio.pl
entrepreneur ship in the EU
Foreword – Jacek Krupa Marshal of the Malopolska Region
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Entrepreneurship in the EU Interview with Elżbieta Bieńkowska
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Małopolska – the diagnosis of the recent state of the entrepreneurship Magdalena Belniak
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Five startup killers – how to conquest them? Leo Exter
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Support of SME’s – example from Brussels Jean-Philippe Mergen
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EER - award for the entrepreneurial attitude Christian Buchmann
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Małopolska is conquering Brussels - What has the title of European Entrepreneurial Region 2016 brought Malopolska? Interview with Marshal Jacek Krupa
Questio iuiris
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Ladies and gentlemen, Small and medium enterprises employ currently more than two thirds of all people working in the private sector in the countries of the European Union. Supporting entrepreneurship, innovation and new technologies, as well as creating an investment-friendly environment and facilitating the companies’ activity have been the priorities of the authorities of Małopolska for many years. It is no coincidence that this twentieth issue of the e-magazine Closer to Brussels is dedicated entirely to the entrepreneurship. Articles that you will find in this issue include Commissioner Elżbieta Bieńkowska’s advice on how to make good use of possibilities created by the European Commission for entrepreneurs, as well as a word of caution by an experienced consultant Leo Exeter on how to avoid the dangers awaiting startups. A thorough analysis of the entrepreneurship in Małopolska from the point of view of a scientist, researcher and coach is presented by Magdalena Belniak, Ph.D. , while Jean-Pierre Mergen shares his experience in assisting entrepreneurs in the Brussels Capital Region. Finally, Christian Buchmann from the Committee of the Regions presents the notion of the European Entrepreneurial Region label (EER), which has already been granted to twenty-one regions of the European Union. In the section “Małopolska is conquering Brussels”, I am going to share the experience of Małopolska as the only Polish region which has been granted that prestigious award. I hope you will enjoy reading our magazine, and I would like to invite entrepreneurs and start-ups to Małopolska. Jacek Krupa Marshal of the Małopolska Region
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so far approximately 290,000 small and medium-sized enterprises have benefited from the support
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Elżbieta Bieńkowska
Entrepreneurship in the EU – interview with Commissioner Elżbieta Bieńkowska
Renata Jasiołek: “Juncker’s plan” is an investment plan for Europe prepared by the European Commission and the European Investment Bank, aimed at stimulating investments in the European economy in the areas of broadly understood infrastructure and SMEs. Have you already seen some positive effects of implementation of this plan?
Elżbieta Bieńkowska since 1 November 2014 - EU Commissioner for Internal Market, Industry, Entrepreneurship and SMEs in the European Commission. Between 2007 and 2013 she was the Minister for Regional Development of Poland and from 2013 to 2014, the Deputy Prime Minister and the Minister of Regional Development and Infrastructure of
Elżbieta Bieńkowska: The effects are already visible. By October 2016, the European Investment Bank has approved financing of projects worth 24.8 billion euro. This means that the initiatives with a total value of 138.3 billion euro will be implemented. That is good news, because we are approaching the middle of the assumed plan. The European Fund for Strategic Investment facilitates the implementation of many projects. We are talking, among others, of the improvement of energy and telecommunications infrastructure, modernisation of industry and investment in innovative projects. Small and medium-sized enterprises, thanks to the guarantees of the EFSI, have greater possibility to obtain financing for their business. We estimate that so far approximately 290,000 small and medium-sized enterprises have benefited from the support, thanks to which around 100,000 jobs have been created.
Poland. As the Deputy Prime Minister and the Minister of Infrastructure and Development she was in charge of the strategic development system of the country, including the effective investment of the European funds. Her work resulted in the full absorption of the EU funds from the budget for 2004-2006 and the successful distribution of almost EUR 68 billion granted to Poland for the years 2007-2013. She was managing the process of the preparation of the efficient EU funds implementation system from the EU budget for the years 2014-2020. Apart from the European funds her tasks in the Polish Government included also the management of transport infrastructure (roads, railway, air traffic and ship transport) and issues related to construction and housing. Before from 1999 to 2007 she was working for the local government of the Silesia Region in Southern Poland.
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one of the largest problems is access to the right kind of funding
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This is concrete money invested in economic development. Since we can clearly see the positive effects of the fund, the Commission has already proposed the extension of operation of the EFSI and increase in funding of another 200 million euro. R.J.: To put it very simply, the European Commission departs from subsidies for entrepreneurs, and instead of the proverbial “fish” it wants to give them the “fishing rod”. What “fishing rods” entrepreneurs should expect after 2020? E. B.: The Commission responds to changes in the economy and the best proof of this is the initiative, presented by us at the end of November 2016, for Start-ups and Scale-ups, i.e. companies, which are still being created, but also those which at some stage decide on more intensive development, want to expand their scope of operation, enter international markets – and in particular, exploit the potential of the single market. I continue to emphasise the importance of the common EU market, because it is as much as 500 million consumers. For many months, we have conducted consultations with representatives of business and it turned out that still one of the largest problems is access to the right kind of funding, but there are also a couple of other problem elements standing on the way to their success. In our initiative, we pay attention to tax issues, so that the Member States simplified their regulations as much as possible. It is also important to give entrepreneurs the so-called second chance, if their business failed, so that the bankruptcy procedures did not last for years. Then, they will be able to use the experience of that failed business when creating a new initiative. Entrepreneurs say that this is one of the most valuable lessons. Another very important aspect are intellectual property rights. They must be protected also in the case of small businesses which are often a source of innovation, and do not have such possibilities as large corporations to secure their rights. Another issue is public procurement, its value throughout the Union is estimated at 2 billion euro per year, and here again mainly large companies participate in tenders. We want to make life easier for small initiatives for which such orders are a huge opportunity for development. These are just a few examples of what you called the “fishing rods”, not “fish”. We did not give entrepreneurs money in either of these cases, but we facilitate the functioning and encourage to development.
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the EU companies will be able to submit offers in public tenders organised in Canada
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R.J.: Market globalization and the associated competition – is it, in your opinion, a mobilisation and a challenge, or rather a threat to the EU? E.B.: Due to globalisation, of course, new markets are still opening and businesses can operate on an even larger scale, but indeed we must also remember the potential threats. I believe that the rules on the global market must be clear and fair to all. The European Union is a member of the WTO, and as we have shown, for instance in the case of steel exported by China, we will care about fair competition. R.J.: Recently, the EU has signed the Comprehensive Economic and Trade Agreement with Canada (the so-called CETA). What benefits it will bring to the EU? Or do you see any records which may have an adverse effect on European entrepreneurs? If so, how should they prepare for them? E.B.: The aim of the CETA is to eliminate almost all customs burdens between the countries of the European Union and Canada. For European exporters, this could mean savings of up to 500 million euro per year. The EU companies will be able to submit offers in public tenders organised in Canada. No other international agreement concluded earlier by the Canadians opened so many possibilities. The EU companies will gain access to the Canadian markets for services and investment. What largely concerns Polish entrepreneurs is a record which says that European innovations, works of art, trademarks or regional products in Canada will have protection similar to that which they have already been provided with in the EU. We believe that the CETA will have a positive influence on economic development in Europe. After all, we already have experience in other agreements. Thanks to the one concluded with South Korea EU exports to this market increased by half. Responding to the question of how entrepreneurs should prepare themselves – they should already examine the Canadian market and think about development plans.
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I encourage entrepreneurs to contact our agencies, check our websites and express their opinions
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R.J.: One hears a lot about the strong lobbying of entrepreneurs from the countries of the “old� Europe. What advice can you give Polish entrepreneurs who want their voice to be heard better in the EU? E.B.: I would like to encourage Polish entrepreneurs to take part in consultation organised by the European Commission. The recommendations prepared by the Commission or new regulations are created based on what we hear from the Europeans. Maybe in Poland the formula of dialogue and consultation has not been yet as popular as in the so-called old EU countries, but I encourage entrepreneurs to contact our agencies, check our websites and express their opinions on the projects prepared by us. Your voice is really important to us.
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the Małopolska Region has a significant social and economic potential
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Magdalena Belniak
Małopolska Region – the diagnosis of the recent state of the entrepreneurship
Entrepreneurship measured with the number of firms per 100 residents, is in Poland quite varied regionally. In the Małopolska Region, business activities are conducted by over 350 thousand entities, and that gives the region the fourth place among all the regions with regard to the number of registered entities, which makes almost 9% in the scale of Poland, and generates about 7.5% of Poland’s GDP. Therefore, we can say that in all-Poland’s scale the Małopolska Region has a significant social and economic potential, and is characterised by a high level of economic growth.
Magdalena Belniak Ph.D. in economics within the specialization of Management, Master in International Management. Certificated Academic Tutor and Career Tutor. Assistant professor at the Cracow University of Economics – Department of Entrepreneurship and Innovation. Expertise and scientific interests focused on management and entrepreneurship, especially international management as well as international marketing, business internationalization, international
According to the survey carried out by Małopolska Economic Observatory, in the past 5 years Małopolska got stronger, empowered its competitive advantage in respect of resources and labour costs, and according to the report on the investment attractiveness of region, it is ranked on the second position in Poland after Silesia. The same report gives Małopolska the fourth position in the overall classification of investment attractiveness of Polish regions in 2015. One of the most important factors shaping the investment attractiveness of Małopolska is a high level of human capital which includes a good demographic situation, the accessibility of qualified labour force and a high level of education, owing to the presence of research institutes and universities.
strategies and strategic management.
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Małopolska Region have been definitely marked by the inflow of foreign investment related to the business service
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In the Małopolska Region, there are good conditions for the development of the high-tech sector firms and in the ranking of investment attractiveness for technologically advanced activities, Krakow sub-region was second in 2015. This high position was also determined by: the highest in Poland quality of labour resources, transport accessibility, high level of consumption economic and social infrastructure and the level of economic development. Technology transfer centres or clusters of firms are an example of activities aimed at the support for the transfer of knowledge and technologies, which is particularly important in the case of the development of small and medium-sized enterprises. Another significant factor of the Małopolska Region advantage is the supply of modern office space in Krakow - according to the research conducted by Jones Lang LaSalle, it has been growing for a few years at the rate of 15% a year. In the situation of the lack of economic stabilization in Europe, the sector of modern business services is perceived as one of industries with the greatest developmental potential. A consulting company Tholon, every year creating the world rankings of outsourcing destinations, in 2015 ranked Krakow on the ninth position among 100 other localisations worldwide considered in the report. It is the only European city ranked so high. The recent years in the Małopolska Region have been definitely marked by the inflow of foreign investment related to the business service and the creation of Business Centre in Małopolska, which is exceptional in Poland’s scale, and whose aim is to improve the investor and exporter services, and the economic promotion of the region via the integration of the activities of regional institutions. The second important venture in Małopolska in recent years is co-financing the creation and development of economic activeness zones from EU funds. As a result of the above initiatives, the Małopolska Region is one of the top regions with the highest attractiveness and it attracts investors.
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typogram of the Małopolska Region against Poland for the year 2015 Source: own study based on GUS and IBnGR statistics.
urbanisation rate
100 higher education rate
economic activity rate
50 0 entrepreneurship rate
GDP per capita
unemployment rate
Poland Małopolska Region
investment atrractivenes
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Thus, according to researchers talking to the industry representatives, the biggest asset of Krakow are exactly its citizens, well-educated, speaking fluent English and knowing other languages. Moreover, Krakow is one of the leading Polish academic centres, thus, not only relatively low costs but also the supply of adequate workforce is a factor encouraging to locate service centres in Małopolska. What is also important is the growth of the involvement of universities in cooperation with business, e.g. creating joint educational programmes dedicated to service centre workers, opening specialist university courses related to the implementation of advanced business When analysing Małopolska firms through the prism of foreign trade, Foreign Direct Investment and modern business services, we must say that Małopolska is characterised by a strong competitive position against the whole Poland. Especially considering seven major factors, such as GDP per capita, unemployment rate, investment attractiveness, the rate of entrepreneurship of natural persons, economic activity rate, urbanisation rate, or higher education rate with regard to the whole country. Based on the analysis we can conclude that Małopolska is characterised by much higher investment attractiveness than averaged rates in the scale of the country. Also the economic activity rate is high, especially the entrepreneurship rate of natural persons. On the other hand, the Małopolska Region has lower than all Poland’s urbanisation rate, mainly due to poviats of the southern and south-eastern part of the voivodeship. However, lower than all Poland’s GDP is accompanied by the lower unemployment rate with a slightly lower higher education rate, and the voivodeship has unused scientific and research potential. The main advantages of the Małopolska Region is the provision of more and more complex services which become the source of innovation in the recipient’s organisations, as well as a broad scope of the provided processes.
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the position of Krakow as one of the leaders on the global map of destinations of investments of the modern service sector is basically unquestionable
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There are more and more research centres in Krakow, providing services in complicated processes, the financial sector, among others, where they pass from serving simple transactions and processes to comprehensive financial and consulting support services, and a large part of the centres renders services within the scope of at least two business processes. Higher and higher level of the advancement of the services provided by outsourcing centres brings about an increase in the demand for highly-qualified specialists and at the same time a decrease in the chances for relocating the firms, thus, the position of Krakow as one of the leaders on the global map of destinations of investments of the modern service sector is basically unquestionable, which favours the process of firm internationalisation in the Małopolska Region.
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five startup killers – how to conquest them?
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Leo Exter
Startups are fragile creatures.
Some don’t survive past the idea stage. Some fold just as their prototype is ready, and some crash and burn despite millions in investment money and hundreds of thousands of adoring customers. Why does it happen? There is no single reason for which all startups deceases: each death is a unique, and it’s brought along by a combination of several factors. Back when start-ups’-dinosaurs roamed the earth (that means about 10 years ago) the startup I worked for died because it:
Leo Exter is the founder at westartup.eu – a community of first-time entrepreneurs, co-founders, mentors and investors. He is also Partner at Hackathons.be – a specialist consultancy firm that helps large corporations such as BNP Paribas Fortis and Saint-Gobain accelerate innovation and rejuvenate corporate culture through innovative events such as ideation workshops, startup acceleration programs, design sprints, and hackathons.
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didn’t know enough about the industry it was working in, came to the market too early, didn’t “pivot” enough, accelerated too early: raised too much money, hired too many people.
Leo Exter has created a multitude of events for startups (Bizcamp, Buy From Startups and established Startup Weekend in Belgium), and is currently working on the biggest startup event yet: hackbelgium.be. Over the last five years he’s directly mentored dozens of startups and managed the Microsoft Innovation Center’s
Hundreds of posts analyzing the reasons for startups’ demise can be found in the Internet (here’s a decent example). Another hundreds of posts written by startup founders give excruciating detail of how their particular startups expired. It is quite educational lecture...
Boostcamp acceleration program.
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lack of confidence is the startupkiller number one
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Here are my personal “top five” list of startup killers, and a few hints of how to save your startup from falling victim to one of those. 1. Lack of confidence is the startup-killer number one. I’ve seen dozens of good ideas that never took off because the would-be entrepreneurs didn’t find the guts to go beyond the first several steps, or didn’t have the audacity to dream big. How to fix it: talk to people. I will not get tired of repeating this: talk to people. Someone out there will have a good idea how to make your product work or sell even if you don’t. Even if you don’t get a lot of specific advice finally, at least you’ll get a confidence boost (or early warning – in case your startup turned to be a stillborn). 2. Lack of business knowledge - it kills too. A business is like a mechanical watch: if any one of the components (sales, marketing, product design, human resources, finances, accounting, legal) breaks down, the whole thing fails. How to fix it: unfortunately there’s no shortcut here. Most content available on the internet is fairly shallow and won’t give you the kind of practical knowledge you need. You can get some knowledge by following the better trainings out there. Most of them are too theoretical in my opinion, but it is worth to give a try to Boostcamp in Wallonia and Brussels. For an introduction of the Lean Startup methodology, for young startups could serve http://www.meetup.com/lean-brussels/, and for financing issues you might find useful http://www.meetup.com/Finance-forStartups/. The only sure-fire way to learn all you need is either have to start a business of your own, and the next best thing is to work in a business so small that you can see every aspect of it up close. From the very beginning you should be ready to “pivot”. What is that? “Pivoting” in the Lean Startup parlance is changing the direction of your business around one of the three pillars: customers (same problem that you solve for a different group of customers), problem (same customers, but solve a different problem for them) and features (find one thing that works and change the entire company on the basis of it).
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entrepreneurship is not about money
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Why pivot? Because no amount of planning before starting your business will help you when you face the real market. There are simply too many unknowns, and too many gaps in your knowledge that will only become apparent once you’re actually out there. For example, if sales of your software or services don’t go as fast as you planned and you’re running out of money, you could offer it as a component to someone else’s solution, a plugin for a 3rd party platform, etc. That means instead of selling to customers directly, you’ll be selling to a reseller or just focus fully on development, and that will require a very different organization/skill set. The startup I worked for back in the day didn’t pivot fast enough – it ran out of money (more on that later). But then there’s the other side to pivoting… I’ve seen a few projects disintegrate when they pivoted so much that the founders lost interest in the project when they realized how far it was from their original business. By then it’s usually too late to go back. 3. Entrepreneurship is not about money. It’s about doing what you feel is right for you with the people you choose. So when you end up doing something that doesn’t make you feel right, further running of your business stops being worthwhile. How to fix it: before you start a business, figure out what you really want – make the world a better place? Win financial freedom? Make your hobby into a business? Spend some time understanding that, write it down, and make sure to read it before making the next pivot (and you’ll make a few…). 4. Stamina is necessary because pivoting takes time. You’ll need stamina to survive long enough in order to figure out the right, final shape for your business, as you’ll likely face at least three pivots before you get it right. How to fix it: at first, raise enough capital. € 50 000 might be enough to build your prototype, but the moment you hit your first pivot (and you will…), you’ll have to go back to fundraising. Secondly, find a co-founder. Stamina means not only being able to do all the work (goes faster with an extra pair of hands), but also having emotional support (sounds New Age, but you’ll feel different once you’re running the business). How to get one? There’s a great article about it on DataNews (in French and Dutch).
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so go for it, and to hell with the startup killers
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5. Timing: ooh, this is a big one. There’s the old adage that the incoming tide floats all boats – and it has proven to be true for startups time and again. But keep in mind: if a big trend is in the news, it’s probably too late for you to build on it. The number of Instagram clones is astonishing, and growing – and it’s too late for all of them… Hot thing today is creating web tools for corporate HR. There are a few brand-new startups in that field already (like two Belgian startups yambla.com and wellevue.com), but there’s space for more. How to fix it: read, meet people, and think. Read: if it’s covered in TechCrunch, it’s likely too late. The trends and startups built on their basis presented there have been started years ago. So read science fiction – plenty of ideas ripe for picking up (my personal favorite is Bruce Sterling). Meet people: if you had talked to the right guys at the right time, you’d have known about the HR tools half a year ago. Think: you know your industry and your profession; if you read and talk to enough people, you can figure out what’s missing now – and you can connect the dots to predict what’s coming next. And the final thought: startups are full of risks, and all of those risks are fundamentally irrelevant. If risks bother you, don’t start a business. If your startup is destined to die, it will die in its unique, special, spectacular and hopefully educational manner.
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the Chamber aims at being a meeting point for the business world and for its members
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Jean-Philippe Mergen
Support of SME’s – example from Brussels
Brussels Chamber of Commerce (BECI) is a private and independent organization representing different activity sectors and represents the general economic interests and stimulates the development of Brussels’ companies in Belgium and abroad. The objective is helping the Belgian SME’s to identify new business partners abroad and providing tailor-made advisory services on doing business in another country and on access to markets. The other important aim of BECI is promoting the economic activity and the social welfare in the Brussels area through a number of services and activities directed to the small, medium and large companies. With its 2300 members, the BECI is also a body that represents the Brussels corporate network. Even more importantly, the Chamber aims at being a meeting point for the business world and for its members in particular: the conferences, meetings and other activities organized by the Chamber are indeed conducive to contacts and personal relations that, in turn, generate mutually beneficial business. Each SME looking for advice and contacts for the development of its exports or imports receives a personalized support based on the expertise of the international staff within the BECI. At European level, information is provided on the regulations according to the needs of each company, so that they can fully benefit from the EU internal market.
Jean-Philippe Mergen is Director export Enterprise Europe Brussels by BECI. He has a Master in Economy at Université Catholique de Louvain and spent the most part of his carrier in the international environment as manager of the export promotion, first at the Brussels Business Federation and more recently at the Chamber of Commerce of Brussels. Since 2008, he is in charge by BECI, of the coordination of the activities of Enterprise Europe Brussels, contact point for the Brussels companies of Enterprise Europe Network. With a large experience in the support of Brussels export companies, he has a large network of contacts as in the Brussels business community as in European institutions or organisations linked to foreign trade in many countries.
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added value of BECI is helping the client to find the right information
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Naturally, there is a lot of information available on European Commission portal and websites, that can really help the SME’s to benefit from the internal market. However, since the SME’s are not organised to make a detailed market study to penetrate the target market, the added value of BECI is helping the client to find the right information and giving appropriate advices on market access, whatever the activity and internationalization strategy. This kind of help is very demanded, because a lot of SME’s in Belgium is willing to internationalize their activities because the local market is not so big, but it is central located in Europe with large neighbouring countries. Advisory and partnering services of BECI are customized and based on the needs of the SME’s. The international diagnostic made by Chamber is based on an assessment of the capacity of the client to internationalize his activities (What market (s) is/ are suitable for my company? How can we enter those markets and operate? How can we build up and develop export markets?). As a further step, specialists define an action plan with practical advices, training, and information on questions related to the different steps to achieve an export or import operation. It can concern also regulations, formalities, marketing, distribution channels, logistic, payments, risk management… The most difficult part is to identify the potential partners in their target countries. Based on the company profile of the client and his cooperation proposal, BECI use its international network to disseminate the business offers or requests. Then, based on the expressions of interest from foreign companies, companies are assisted in business relations, till the signing of a cooperation agreement. For the international matchmaking events, the SME’s need support to present their company and business offer/request in order to be attractive for potential partners. We help them also for their individual agenda of meetings.
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the network disseminates thousands of business opportunities on the online platform of Enterprise Europe Network
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Additionally, the Chamber of Commerce of Brussels is the host organization of Enterprise Europe Network services to Brussels businesses, in particular focused on internationalization support, commercial partnering, information on EU regulation, SME Feedback activities, and promotion activities. For partnering between companies, the network disseminates thousands of business opportunities on the online platform of Enterprise Europe Network, and help the SME’s to make the follow up of their expressions of interest for business profiles. The objective is to support the SME’s to sign new international cooperation agreements. Moreover, the companies can identify potential partners in their business and after registration with the description of their company profile, they can make their own customized program of meetings with companies from different countries. What’s important, companies are also informed of opportunities to benefit from European funding as well as on European tenders opportunities. The services provided by the Chamber of Commerce of Brussels at present include: • Legal advice: tax, social, international and business law. • Seminars and training sessions in a number of areas including entrepreneurship, finance & accounting, marketing, HR, social matters, personnel development, etc. • Administrative services: Register of Commerce (opening and modifications), VAT, publication of articles of incorporation and other official acts in the Official Gazette or in the press, etc. • Delivery of certificates of origin and ATA books. • Assistance to the “starters” (on behalf of the Region of Brussels).
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companies are also informed of opportunities to benefit from European funding as well as on European tenders opportunities
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• External trade promotion: foreign delegations, information about foreign markets and companies (in cooperation with the Brussels Region), establishment of pertinent contacts between foreign and local businessmen. • Business promotion: company presentations, member to member special offers, business meetings, round tables and business lunches (dealing with legal developments, market developments, exports, etc…) and other specific events. • Information: business information (financial administrative, …) about specific companies, establishment of lists of companies, identification of business opportunities and partners. • Conferences, including speakers from the business or political world talk about topics relating to the European Union. • Publications: monthly magazine, Brussels business guide, focused ad hoc publications. • The Chamber also carries out a number of projects entrusted by the European Commission or the Brussels Region.
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SMEs provide over two thirds of total employment in the private sector
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Dr Christian Buchmann
EER - award for entrepreneurial attitude.
The European Commission’s recent Start-up and Scale-Up Strategy illustrates that support for entrepreneurs, small and medium-sized enterprises (SMEs) and start-ups continues to be high on the European political agenda. With SMEs providing over two thirds of total employment in the private sector, and new companies – in particular high-growth start-ups – creating up to half of all new jobs in some EU Member States, it is clear that making European business environments more SME- and start-up-friendly is an essential precondition to boosting the creation of growth and jobs. On top of that, the presence of a broad base of SMEs benefits regions and cities by reinforcing their social and economic tissue, since SMEs are most often loyal to their territories and create stable, local employment. Regions and cities are the natural environments for the emergence of strong entrepreneurial ecosystems. The local and regional levels are closest to both citizens and businesses: they provide the framework for productive, innovative investments, speed up the creation of employment and are able to raise the level of education and training. While EU and national authorities can create an SME-friendly regulatory environment and provide tools and incentives for the implementation of an efficient entrepreneurial policy, regions and cities are those who can really foster the right conditions for entrepreneurs and SMEs to flourish.
Dr Christian Buchmann is the Chairman of the Commission for Economic Policy (ECON) of the European Committee of the Regions (CoR), as well as Regional Minister for Economy, Tourism, Europe and Culture in the Region of Styria (Austria). He has been a CoR Member since 2011 and a Member of the Styrian Regional Government since 2005. He previously was Municipal Councillor for Economy, Science and Culture in the City of Graz and held various positions in the Styrian Economic Chamber. Dr Buchmann studied economics at the University of Graz and the University of California, Los Angeles (UCLA).
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the single most distinctive feature setting the EER label apart from other award schemes is its forward-looking orientation
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When the Commission adopted the Small Business Act for Europe (SBA), the European Committee of the Regions (CoR) wanted to prove that regions and cities can make a real difference for their SMEs and entrepreneurs. For this reason, the CoR created the European Entrepreneurial Region (EER) scheme in 2009. Each year, three EU territories, who have designed and are implementing a cutting-edge strategy aimed at supporting entrepreneurs, start-ups and SMEs are awarded this tittle. Twenty-one EU territories have been awarded the EER label so far. The Region of Małopolska is one of the three awardees for 2016, alongside the City of Glasgow (United Kingdom) and Lombardy Region (Italy). The single most distinctive feature setting the EER label apart from other award schemes is its forward-looking orientation. Rather than focusing on past achievements, the EER encourages regions and cities to commit themselves to a future-oriented action plan to boost entrepreneurship and business development in their territories over their award year and beyond, and to create genuine EER communities fostering cooperation among all governance levels – local, regional, national, EU – and among all actors of the Triple Helix. Each year, the EER jury, which is chaired by the CoR President and includes CoR Members, representatives of the European Commission, the European Parliament, the European Economic and Social Committee, as well as of the social partners, selects the three most convincing regional and local strategies among all applications received and awards them with the EER label for the coming year. The jury then monitors the implementation of each territory’s EER actions plan over the course of its award year and contributes to showcasing and disseminating its entrepreneurial achievements. After the completion of the EER year, the jury conducts on-site evaluation visits to the awarded regions and cities, in order to assess the impact of the EER measures, provide the EER winners with an objective outside view on their entrepreneurship policies, and draw lessons for the further development of the EER scheme.
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the EER label has given the political impetus necessary to involve all relevant actors in the development
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While the EER scheme is not linked to funding, the experience of past EER winners shows that the EER label has given them the political impetus necessary to involve all relevant actors in the development and implementation of an ambitious entrepreneurial strategy within their territories. This is illustrated, for example, by EER 2013 winner Nord-Pas-de-Calais (now part of the newly created region Hauts-de-France), whose EER coordinator, Charlotte Peytavit, confirmed: ”For our region, the EER label has been the banner under which we have rallied the key players of entrepreneurship and enterprise creation”. Moreover, as European excellence label for outstanding entrepreneurial policies, the EER award is used successfully as a communication tool by the awarded regions and cities. Thus, EER 2016 winner Małopolska has branded itself as successful entrepreneurial region during its 2016 Innovation Festival. For EER 2015 winner Lisbon, the EER label has been one of the factors allowing the city to attract the Web Summit – Europe’s biggest technology conference, which brings together over 50.000 participants, including investors, entrepreneurs, Fortune 500 companies, and global technology leaders – to Lisbon from 2016 onward. In my home region Styria, which won the EER award for 2013, we have built on our EER label by creating the ”Styria – Region unlimited” brand, in order to promote Styria as an international business hub.
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regions and cities are invited to apply to the next edition of EER until 7 April 2017
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Finally, with 21 regions and cities awarded already, the EER network has reached the critical mass necessary for successful initiatives of cooperation among the EER regions. A major first step was made by the project iEER (”Boosting innovative Entrepreneurial Ecosystems in Regions for young entrepreneurs”), which was initiated by EER 2012 winner Helsinki-Uusimaa. Bringing together a consortium of eight EER awardees and two additional partners, iEER has managed to attract EUR 2.3 million of funding from the Interreg Europe programme in April 2016. In October 2016, the project STOB Regions (”Succession and Transfer of Business in Regions”), initiated by EER 2011 winner Brandenburg and involving three additional EER regions, was approved at the second call of Interreg Europe. Successes such as these are recognized well beyond the EER network: at the opening of the 2016 SME Assembly on 24 November 2016, European Commissioner Elżbieta Bieńkowska referred to the EER winners as ”Europe’s Silicon Valleys” adding that EU initiatives should build on them. Regions and cities that are ready to take up the challenge of boosting their entrepreneurial policies and join the club of EER winners are invited to apply to the 2018 EER edition, which is open for applications until 7 April 2017. More information: cor.europa.eu/eer
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Malopolska was awarded the title of European Entrepreneurial Region 2016 (EER)
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Jacek Krupa Marshal of the Małopolska Region
Małopolska is conquering Brussels What has the title of European Entrepreneurial Region 2016 brought Malopolska? – an interview with Jacek Krupa, Marshal of the Malopolska Region
In July 2015, Malopolska was awarded the title of European Entrepreneurial Region 2016. This honour is awarded to three regions of the European Union that have developed the most credible, forward-looking and promising entrepreneurship development strategy. What other advantages resulted in the title being awarded to Malopolska? Jacek Krupa: When evaluating the candidates, which consisted of the European Committee of the Regions and the European Commission takes many criteria into consideration. Of course, the primary concern was to check how a particular region supports or intends to support entrepreneurship, but other important issues included the implementation of the sustainable development principle, the so-called Small Business Act and effective promotion of their tasks. What other advantages has the European Commission appreciated in our application? Primarily the fact the Regional Government of Malopolska attaches importance to partnership by involving representatives of the academia, economy or business environment institutions in affairs that are important for the region. We keep in touch with local authorities we cooperate with in the present perspective under Integrated Territorial Investment or Sub-regional Development Forums.
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this award means not only prestige but primarily specific benefits for the region and its inhabitants
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Malopolska is a totally different region than a few years ago. We are one of the top dynamically developing regions in Europe, and there are many ambitious project ahead of us. The jury in the competition apparently shares this view. How do you see the benefits of that title from the perspective of the previous year? Have there been any concrete results yet? Jacek Krupa: This award means not only prestige and recognition for entrepreneurship support measures in Malopolska, but primarily specific benefits for the region and its inhabitants. Due to this honour, Malopolska has been included in an elite group of regions that have received this award, and therefore is regularly invited to various international projects addressed to specifically to this group. For example, we have recently decided to take part in the STOB Regions initiative under the Interreg Europa Project, which will allow us and entrepreneurs of Malopolska to prepare to confront the problem of company succession, which – as shown by research – we will face in the nearest future. The title of European Entrepreneurial Region is also a great promotion on the international forum. For example, a programme on the Euronews European television channel that encourages investing in Malopolska has been seen by eight million people so far. On the other hand, Malopolska is spoken of much and often in Brussels, specifically in the context of entrepreneurship. Due to the fact that we have been awarded this title, we are perceived as an ambitious and dynamic region, and, as a consequence, we are proposed to participate in various prestigious events such as international conferences or congresses related to the issue of business, innovation or start-up, where, which is important, we are present as experts. The participation in such meetings and the opportunity to present the potential of the region is a measurable effect of the fact that Malopolska has been awarded the title of European Entrepreneurial Region 2016. This is the reason why information on projects implemented by Malopolska reaches broad audience; e.g. this occurred during the recent gathering of Small and Medium Enterprise Assembly in Bratislava – the flagship event of the European SME Week co-organised by the European Commission and the Slovak presidency.
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the tilte of European Entrepreneurial Region opens many doors, and we wanted to take advantage of this opportunity
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So far, Malopolska has been the first and the only region of Poland to receive this honour. Where did the idea for a Polish region to apply for a title that was previously awarded to Western European regions? Jacek Krupa: This is exactly the reason – to show that the regions of Central and Eastern Europe should feel no inferiority complex. We are developing at a good pace, are not afraid of innovative solutions, have good conditions for investment – these are only a few of the advantages that are worth being proud about on the international forum. The title of the European Entrepreneurial Region opens many doors, and we wanted to take advantage of this opportunity. As you can see – the courage has paid off, we have overcame the domination of the Scandinavian and Mediterranean countries and we have encouraged other regions of our part of Europe to apply for that title.
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questio iuiris A “small business act” for European SMEs European Commission Communication (COM(2008) 394 final) — “Think small first” — A “small business act” for Europe
WHAT DOES THE SMALL BUSINESS ACT (SBA) DO? The communication sets out a number of principles designed to encourage entrepreneurship in the EU and to make it easier for small businesses to thrive. It also includes legislative proposals for implementation both at EU level and at national level in EU countries. It is a non-binding document but was endorsed by the Council and has received the support of the European Council and European Parliament. KEY POINTS The main priorities of the SBA are to promote entrepreneurship, improve access to finance, reduce the regulatory burden and improve access to markets and internationalisation. These priorities are set out in 10 principles designed to guide the design and implementation of policies at EU and EU country level: 1. create an environment in which entrepreneurs and family businesses can thrive and entrepreneurship is rewarded; 2. ensure that honest entrepreneurs who have faced bankruptcy quickly get a second chance; 3. design rules according to the ‘think small first’ principle; 4. make public administrations responsive to the needs of small and medium-sized businesses (SMEs);
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5. adapt public policy tools to SMEs’ needs: facilitate SMEs’ participation in public procurement and better use State aid possibilities for SMEs; 6. facilitate SMEs’ access to finance and develop a legal and business environment supportive to timely payments in commercial transactions; 7. help SMEs to benefit more from the opportunities offered by the EU’s single market; 8. promote the upgrading of skills in SMEs and all forms of innovation; 9. enable SMEs to turn environmental challenges into opportunities; 10. encourage and support SMEs to benefit from the growth of markets. A 2014 public consultation on the SBA found that progress had been made but that: • administrative and legal burdens remained the biggest concern, • access to finance remained difficult despite the measures taken, • further effort is needed with respect to accessing markets, in particular improving links between existing EU programmes. BACKGROUND
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questio iuiris
For more information, see ‘The small business act for Europe’ on the European Commission’s website. ACT Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions — ‘Think Small First’ — A ‘Small Business Act’ for Europe (COM(2008) 394 final of 25 June 2008) RELATED ACTS Communication from the Commission to the European Parliament, the Council, Economic and Social Committee and the Committee of the Regions — Review of the ‘Small Business Act’ for Europe (COM(2011) 78 final of 23 February 2011). Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: EU Regulatory Fitness (COM(2012) 746 final of 12 December 2012).
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Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: Entrepreneurship ‘2020 Action Plan’ — Reigniting the entrepreneurial spirit in Europe (COM(2012) 795 final of 9 January 2013) last update 24.02.2016 Source: European Commission
20 closer to Brussels