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Global Entrepreneurship Monitor Professor David Brooksbank Martyn Jeffries

Global Entrepreneurship Monitor Professor David Brooksbank Martyn Jeffries. Gellert Hotel Budapest 25 th May 2005. Objectives & Structure. Overview of European Structural Funds The West Wales & Valleys Programme Application, Assessment, Approval and Audit GEM Existing Opportunities

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Global Entrepreneurship Monitor Professor David Brooksbank Martyn Jeffries

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  1. Global Entrepreneurship MonitorProfessor David BrooksbankMartyn Jeffries Gellert Hotel Budapest25th May 2005

  2. Objectives & Structure Overview of European Structural Funds The West Wales & Valleys Programme Application, Assessment, Approval and Audit GEM Existing Opportunities The Future Opportunities

  3. The European Union and Structural Funds

  4. Treaty of Amsterdam Articles 158-159 • Structural Funds exist to help “reduce regional disparities between levels of development of the various regions” within the common market (Articles 158-159) Article 146 • European Social Fund : to “improve employment opportunities for workers in the internal market”

  5. Structural Funds • European Regional Development Fund (ERDF) • European Agricultural Guarantee Guidance Fund (EAGGF) • Financial Instruments for Fisheries Guidance (FIFG) • European Social Fund (ESF)

  6. Partnership, Programmes & Projects “solidarity because the policy aims to benefit citizens and regions that are economically and socially deprived compared to EU averages. cohesion because there are positive benefits for all in narrowing the gaps of income and wealth between the poorer countries and regions and those which are better off.” Europa Principle of “Subsidiarity”. Budgets delegated to the Regions to implement Commission Policy. Contractual Relationship • The Commission & Member State • The Member State & Project Sponsor

  7. The European Commission’s Budget

  8. Structural Fund Programmes • Objective One: Regions whose GDP is below 75% of EU average • Objective Two: Regions facing structural difficulties • Objective 3 : Horizontal measure to support the modernisation of education training and employment • Community Initiatives (EQUAL, LEADER+, Interreg II and Urban II)

  9. Subsidiarity • Council Regulation (EC) No 1260/1999: • Provide the overarching framework for Structural Funds Programmes 2000-2006 • Principle of subsidiarity: • Members States prepare and agree a strategy to assist economic growth with EU Commission • Member States determine detailed rules on implementation of programme at a local level • Application, Assessment, Approval and Audit

  10. West Wales & Valleys 2000-06 • Expanding & Developing the SME base. • Developing Innovation and Knowledge Based Economy • Community Economic Regeneration • Developing People • Rural Development • Strategic Infrastructure

  11. Developing People • Preventative & Active Employment Measures • Social Inclusion • Lifetime Learning for All • Improving the Learning Infrastructure • Improving the Participation of Women in the Labour Market • Anticipation and Analysis of Skills Needs

  12. Anatomy of an EU Project. Business Case Start date End date Project Planning Year 1 Year 2 Year 3 Project Application Project Appraisal & Approval Audit Audit Audit Start up Implementation Closure

  13. The Project must…….. Activities and Outputs must correspond to Single Programme Document, Priority Measure and Programme Complement Activities = Expenditure = Outputs = GDP Activities = Expenditure = Outputs = Additionality Activities = Expenditure = Outputs = VFM Expenditure must comply with EU regulations Member State interpretation of regulations

  14. Critical triangle Three areas should underpinning the whole Application form: • Evidence of demand/need: demonstrates gap in provision and barriers to participation • Outputs are achievable: follows on from “evidence of need” and shows that project sponsor has realistic targets for the project • Results of project: demonstrate that project activities will address the identified needs

  15. Structural Funds Application process provides the mechanism through which Member State checks the technical eligibility and compliance with the regulations. Approval means that the project “as described” is eligible for support. • Must be implemented in accordance • with: • application form, • correspondence • letter of approval • relevant EU regulations. The approval letter forms a binding contract between M.S. and the project sponsor.

  16. The Audit All projects are subject to annual and final audit certification. • Applicant’s internal & external auditors • Partner Auditors • Member State (Article 4 and Article 10 teams) • National Audit Office • Audit Commission appointed auditors • European Commission Auditors • European Court of Auditors (EUC) Luxembourg • OLAF (Fraud)

  17. GEM Wales 2005-2008

  18. GEM Wales • Part of GEM UK • Wales part of GEM since 2000 • UK has APS of 32,000 for 2005 planned • Active involvement of Wales, Scotland , Northern Ireland and London Business School

  19. GEM Wales • GEM UK • Supported by the UK Government – Small Business Service • Welsh Development Agency • Invest Northern Ireland • Range of other RDAs • Deloitte • Barclays Bank • Enterprise Insight

  20. GEM Wales Joint initiative between the Welsh Enterprise Institute at the University of Glamorgan and the Centre for Advanced Studies at Cardiff University

  21. GEM Wales • £1.7m (€2.4m) project to expand GEM across Wales from 2005-2008 • The largest single project in enterprise research funded in the UK (we think)

  22. GEM Wales • Four main outputs • 8,000 APS each year • longitudinal study of business initiation and survival • Small firms survey to examine the needs of small firms within their early stages of development • Learning cases and detailed analysis of growth companies in Wales

  23. GEM Wales • The GEM entrepreneurship survey – examine entrepreneurial activity across Wales through an interview survey of over 8,000 individuals, stratified by local authority, age and gender • Fully harmonized comparison of • different geographic regions – e.g. EU areas • gender • ethnicity • Welsh language • equity investment • risk-taking propensity • opportunity • capacity for enterprise

  24. GEM Wales • Longitudinal entrepreneurs panel • based on the data collected in the interviews with representative adults. • The study will track for 3 years those identified as being actively involved in a business start-up [firms in gestation before being an operating business]. • This will help to determine the percentage of start-ups that become functioning new firms and what might be unique about their context, start-up team or strategies

  25. GEM Wales • Small firms survey • a detailed survey of a sample of 1000 small firms in Wales in the early stages of development. • Gives vital information on key issues • skills • management development • human resource management • financial management • marketing • Provides an annual barometer of the success of the burgeoning small firms sector in Wales and the needs and requirements of this sector

  26. GEM Wales • Growth firms study • Detailed information on the processes of growth within SMEs in Wales through detailed case studies of ‘good practice’ of learning in fast growth firms • Specific issues relating to entrepreneurial learning will be highlighted through different media, an annual analysis of key trends relevant to the development of growth businesses will be produced and information on the specific characteristics and learning needs of growth businesses will be disseminated into the wider business and learning community

  27. GEM Wales • The Sales Pitch at home!!! • “These 4 main areas of study will give the most comprehensive picture and analysis of entrepreneurial development in Wales from the enterprise culture of the population, through business initiation, early development to growth. It will be an unique study and will help create a detailed understanding for policymakers and practitioners of the enterprise and small firm sector in Wales”

  28. GEM Wales • Breakdown of funding • Two professors • Five doctoral researchers • One statistician • One administrator

  29. GEM Wales • Five doctoral research assistants • Enterprise education • Female entrepreneurship • Innovation and growth • Finance • Culture

  30. GEM Wales • Breakdown of funding • Survey costs for 8,000 APS • Marketing/printing • Conferences • IT • Evaluation Dissemination

  31. GEM Wales • Funded by • RDA contribution • Cash • University overhead • ESF grant

  32. Current Programmes 2000 - 06 New Member States 2004 - 06 Last approvals Dec 06 Last spend June 08 GEM May 05 -June 08

  33. Estonia: SPD Priority 1: Human Resources Measure 2: Increasing the competitiveness of SMEs Malta:NDP 03-06 Priority Axis 2 Employment & Human Resources Objective 3: Horizontal Programme Poland: IROP 2004-06 (PARP)Priority 2: Human Resource DevelopmentMeasure 1: Development of competencies linked to the regional labour market needs and lifelong learning opportunitiesMeasure 5 Entrepreneurship promotion.

  34. The Future : 2007 - 2013 • July 2004 EUR 336 billion for ‘structural actions’ • Major change in the way the funds will be used and administered • Targeted at poorest regions and specific actions • Lisbon & Gothenburg Agendas • sustainable, competitive, knowledge driven, entrepreneurial economy

  35. Covergence • Awarded to regions whose GDP is less than 75% of EU25 average • Aimed at speeding up economic convergence of less developed regions • Priorities: Innovation, Infrastructure, Accessibility, Human Resources, Environment, Administrative Capacity • EUR 264 billion

  36. Regional Competitiveness and Employment • Member States propose a list of regions to benefit from this Programme • Priorities: Innovation, the knowledge Society Entrepreneurship, European Employment Strategy • EUR 58 billion

  37. European Territorial Co-operation • Cross Border co-operation • Transnational Co-operation Zones • European Co-operation and Exchange Networks • Cities & towns • Rural areas • Outermost regions, mountains & islands • EUR 13.2billion

  38. Timeframe • Luxembourg Presidency Jan – June 2004 • Fault-lines: • UK Rebate, • France Germany & UK wants a major reduction in EU spend • Holland, Denmark & others want to ‘cap their contribution • Failure to agree a budget will delay future programmes. • Proposal to cut regional funds, research & education in an attempt to secure agreement • UK Presidency July – Dec 2004

  39. Lux Presidency • GDP figures for 2000,01 & 02 UK Presidency • GDP figures for 2001,02 & 03 ?

  40. Programmes 2007-2013now being formulated.

  41. NEO InternationalProf David Brooksbank dbrooksb@glam.ac.ukProf Dylan Jones Evans enlli@btconnect.com Euro 27 ltd www.euro27.com Martyn Jeffries martyn@euro27.com

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