types of support and guidance by jolinmilioncherie


									Guidance supporting Europe’s aspiring
entrepreneurs – Policy and practice to
       harness future potential

                 CASE STUDY

Support and guidance provided by PES to aspiring
                                                                     Case study: Public Employment Services

        This case study outlines the non-technical and non-financial support and guidance that
        Public Employment Services (PES) in the Member States provide to aspiring entrepreneurs
        who are outside the formal education and training system.
        Comparative studies do not exist on the types of services that PES deliver to aspiring
        entrepreneurs. Hence, this case study is based on primary research carried out in a
        selection of Member States. The case study is based on data from PES in ten Member
        States and on in depth information collected from Sweden and Ireland which serve as
        specific case study examples.
        PES in the Member States offer different levels of support and guidance to individuals who
        aspire to set up their own business. The type and depth of support and guidance provided
        depends on the PES service delivery models and whether aspiring entrepreneurs are
        considered as core clientele. Although the service delivery models vary between Member
        States, four types of support and guidance services for aspiring entrepreneurs can be
        identified on the basis of the research carried out:
                  Referrals to specialist organisations;
                  Provision of written information and advice about entrepreneurship;
                  Specialist advisers offering one-to-one support; and
                  Other support services, such as provision of internal training programmes.
        The service delivery models primarily consist of either referrals to specialist agencies,
        information provision or an integrated support and guidance service comprising several
        types of support and guidance.
        The sections that follow provide examples of the support services offered to aspiring
        entrepreneurs who are outside formal education and training system.

        The types of support and guidance that PES delivers to aspiring entrepreneurs vary widely
        between the Member States. As stated above four main support and guidance services
        have been identified:
                  Referrals to specialist organisations;
                  Provision of written information and advice about entrepreneurship;
                  Specialist advisers offering one-to-one support; and
                  Other support services, such as provision of internal training programmes.
        The PES service delivery models in the different Member States include one or more of
        these support and guidance services. For example:
                  In Denmark, Luxembourg, Romania and the United Kingdom aspiring
                   entrepreneurs are referred to a specialist agency with no service provision within
                   the PES.
                  In Spain all information is provided on the PES website, the PES does not
                   provide any other services to aspiring entrepreneurs.

        Denmark, Finland, France, Ireland, Luxembourg, Malta, Romania, Spain, Sweden and the UK

                                                                 Case study: Public Employment Services

               A combination of one-to-one adviser support, provision of internal training
                courses, written material on setting up own business and referrals to specialist
                agencies are the delivery models in Sweden and in Finland.
               In Ireland the service offer combines internal training programmes with referrals
                to specialist agencies, whereas in Malta training courses are provided without the
                referral to specialist agencies.
      The sections that follow describe the contents of the services provided by the PES, drawing
      on examples from Ireland and Sweden.
2.1   Example from Sweden – an integrated service model
      The PES in Sweden (Arbetsförmedlingen) has an integrated service delivery model for
      proving support to aspiring entrepreneurs. This includes the provision of written information
      and guidance, one-to-one support from an adviser, access to training courses, access to
      information from specialist agencies and referral to other agencies.
      This integrated service consists of a three-phase programme. The programme is provided
      by all PES offices across Sweden. The service is provided to the unemployed free of
      One or two advisers in each PES office are familiar with the programme for individuals
      wanting to set up their own business, and are involved in its delivery. However, while all of
      the elements that make up the service are provided by the PES, the PES also brings in
      external expertise to support them deliver the programme.
      As mentioned above, the programme consists of three phases. Phases one and two are
      provided to the unemployed only, whereas phase three is also open to people who are self-
               Phase 1: Development. This comprises four-weeks of ‘work experience’ through
                which an individual develops their business idea with the help of PES adviser.
                This includes producing a framework for a business plan – a type of checklist on
                what needs to be considered when setting up a business. The checklist includes
                elements such as undertaking market analysis and assessment of how to finance
                their business idea. The development phase includes information meetings,
                where other public authorities provide an overview of the support they can
                provide for business start-up and the types of advice and support they are able to
                offer. This phase is mainly run by the PES staff and there is little external
                intervention. PES advisers decide whether persons can progress onto Phase 2.
               Phase 2: Preparatory training course. The training course runs full-time for four
                to six weeks. In this phase individuals develop their business plans so that it is
                ready to be implemented. The PES offers the service, although the service is
                delivered by external contractors. Training is provided in a classroom context and
                comprises individual and group work and question and answer sessions with
                external consultants. External consultants, with business expertise, are required
                to have specialist knowledge and contacts on specific sectors. External
                consultants, employed by the PES, also provide targeted one-to-one support to
                The PES adviser and consultant working with each aspiring entrepreneur work
                closely together throughout this phase. There is no fixed limit on the number of
                hours of support a consultant can provide to a given individual. The amount of
                time required for each individual depends on the needs of the business idea. At
                the end of this phase, the consultant decided whether the business idea is good
                and can develop into a successful business. Other public authorities, e.g.
                regional offices and enterprise networks, are also involved who can have a
                relatively active role in supporting the individual.

                                                                    Case study: Public Employment Services

                   Phase 3: Taking advantage of a six month start-up grant. In this phase the
                    aspiring entrepreneur implements the business plan and receives funding from
                    the PES for a six month period.
      Throughout the programme PES advisers and external consultants work closely together.
      As a result the PES advisers continuously develop their skills and knowledge of
      The PES in Sweden also provides written information and guidance, including a
      comprehensive guidance booklet on starting up a business.
2.2   Example from Ireland – substantive individual support service
      The PES in Ireland (FÁS) primarily runs internal training programmes for aspiring
      entrepreneurs. There is no formal follow-up from the training but informal signposting to
      other organisations is built in as part of the training course curricula.
      Training courses are provided in training centres across Ireland, although not all courses
      are provided by every training centre. The courses are provided either as part-time evening
      courses or as full-time day courses. Courses primarily target the unemployed but those in
      employment can also attend against a small fee, normally between EUR 100 and 250,
      depending on the type of course.
      Access to the training courses is normally done via a referral by PES advisers who are
      familiar with the content of the courses. Individuals can also access the courses through the
      local training centres, who also advertise the courses (leaflets, posters and advertising in
      local newspapers). The training courses are also listed on the FÁS website.
      The training programme consists of five part-time evening courses and four full-time day
      courses. Examples include:
                   Start your Own Business (5 week, evening classes, delivered in 10 locations);
                   Business Appraisal and Start-Up Programme (10 week, daytime classes, run in
                    five locations); and
                   Preparing for Business Enterprise – ILM certificate (4 week, evening classes, run
                    in one location).
      Further information about the ‘Start your Own Business course is provided in the box below.

      Example: Start your Own Business course
      The aim of the course is to provide participants with the knowledge and skills to understand
      the key elements/processes required in starting a business, to conduct a personal
      assessment and to conduct a business assessment.
      The course is delivered over five weeks as evening classes with each class lasting 3 hours.
      On average 20 people can attend each course. No previous experience is required but
      persons should have numerical and written aptitude, including reading ability in English
      language. Good communication skills are also considered beneficial.
      The course includes the following elements:
                 Personal and business assessment
                 Formulating a business plan and types of businesses
                 Accounts/break even analysis and VAT registration
                 PAYE/PRSI/Self Assessment
                 Selling skills and marketing planning
                 Legislation, insurance
                 E-Business, raising capital grants, franchising

                                                                   Case study: Public Employment Services

    Cost of the course varied from EUR 200 to EUR 250, depending on the location in Ireland.

    The Business Appraisal Start-Up Programme targets individuals who have a business idea
    and who have thought about a business plan already. The training programme is designed
    and developed to provide a structured outline for aspiring entrepreneurs to research,
    appraise, plan and develop their business project. The outcome of the programme is that
    participants are able to self-appraise and develop their enterprise skills, develop their
    personal strengths / identify weaknesses and acquire the necessary skills and knowledge to
    assess the feasibility of their business project. Participants will also acquire the necessary
    skills and knowledge required to set up and manage a small business effectively and
    efficiently and prepare a business plan that:
             Outlines the viability and future strategy for their project;
             Identifies further action/training required.
    As stated above, before starting the course participants are required to have a business
    idea and have completed some basic research. Individuals applying to join the course have
    to complete a brief written proposal outlining the business idea. Good numeracy and
    literacy skills are also essential. The programme runs for 10 weeks for a group of 20
    The course on Preparing for Business Enterprise (ILM certificate) aims to give participants
    the ability to assess their own suitability for starting and running an enterprise and to help
    them in their decision making. This course covers the legal and regulatory requirements of
    business enterprise, marketing and selling a product, the financial needs of a successful
    business, business start-up and developing a business plan. As with the Business
    Appraisal Start-up Programme, participants should have a business idea before joining the
    course. The course consists of two evening sessions each week (3 hour per session)
    delivered over a four week period for up to 20 individuals. The course fee is EUR 100,
    though people on social welfare are entitled to the course free of charge.

    The Public Employment Services across the Member States provide different levels and
    types of support and guidance to aspiring and new entrepreneurs who are outside of the
    formal education and training system.
    It is difficult to assess the services and guidance provided by the PES across the Member
    States, although similarities exist between groups of countries. Some PES provide separate
    services such as training, written information on their website, or merely act as referral
    agency to other specialist organisations, whereas other PES provide an integrated service
    that combines several elements of different types of available support and guidance.
    The case study provides examples of services delivered by the PES in Sweden and Ireland
    which show the types of support offered in some Member States. Feedback from
    interviewees indicates that the Swedish model is effective. Different research studies on the
    available support have shown that on average:
             79-85% of business plans are implemented following the start up grant; and
              65-75% of the established businesses continue to thrive three years on from the
              start-up grant.
    The PES in Ireland does not formally follow-up on the outcomes of individuals who
    participate in their training courses. However, in terms of outputs, records show that
    between August 2008 and August 2009, 48 courses were delivered with 881 individuals
    having received training, of which 65% were unemployed at the time.

                                                          Case study: Public Employment Services

There is a scope for further work within the PES across the Member States to ascertain
whether their service offer is fit for purpose to meet the needs of aspiring entrepreneurs.

                                                           Case study: Public Employment Services

Stakeholders consulted:
        Short scoping interviews with front office PES staff in United Kingdom, Ireland,
         Spain, Sweden, Malta, Denmark, Romania, Luxembourg, France
        Interview with Derek Walsh – Manager of training services in FÁS, Ireland
        Interview with Fredrik Dannelov – Adviser on legal framework and operational
         rules for start-up grant and vocational training

Websites consulted:
        http://www.fas.ie/en/Training/Home/default.htm [cited 03.09.2010]
        http://www.arbetsformedlingen.se/Globalmeny/Other-
         languages/Languages/Engelska-English.html [cited 03.09.2010]
        https://www.redtrabaja.es/es/redtrabaja/portal/homeAutoempleo.do                 [cited
        http://www.direct.gov.uk/en/Employment/Jobseekers/LookingForWork/DG_17393
         1 [cited 03.09.2010]
        http://www.etc.gov.mt/ [cited 03.09.2010]
        http://www.ams.dk/Ams/English.aspx [cited 03.09.2010]
        http://www.adem.public.lu/ [cited 03.09.2010]
        http://www.pole-emploi.fr/accueil/ [cited 03.09.2010]
        http://www.anofm.ro/ [cited 03.09.2010]

Other material consulted:
        Supporting documentation received from the PES staff interviewed


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