Indeed in 2006, the ICT sector added 5. 3%value to EU GDP and 3. 6%of EU employment.
in addition to the related employment, is an instrument of autonomy and sovereignty and provides the capacity to develop
the Lisbon strategy for growth and employment. Report from the High Level Group, OPOCE, Luxembourg.
Yes 1. 5 Must shareholders approve the election and dismissal of the external auditor? Yes 1. 5 Can shareholders freely trade shares prior to a major corporate action or meeting of shareholders?
Yes 1. 5 Must information about board members'other directorships as well as basic information on their primary employment be disclosed?
Doing Business 2015 Spain 81 LABOR MARKET REGULATION Doing Business measures flexibility in the regulation of employment,
specifically as it affects the hiring and redundancy of workers and the rigidity of working hours.
employee termination, weekend work, holiday with pay, night work, protection against unemployment and medical care and sickness benefits.
and equitable treatment in employment practices. Between 2009 and 2011 the World bank Group worked with a consultative group including labor lawyers, employer and employee representatives,
The data on labor market regulations are based on a detailed survey of employment regulations that is completed by local lawyers and public officials.
DB year Reform DB2011 Spain reduced the notice period applicable in case of redundancy dismissals. DB2013 Spain temporarily allowed unlimited duration of fixed-term contracts.
Doing Business 2015 Spain 85 LABOR MARKET REGULATION Difficulty of redundancy index Difficulty of redundancy index looks at 9 questions:(
ii) whether redundancy is disallowed as a basis for terminating workers;(iii) whether the employer needs to notify a third party (such as a government agency) to terminate 1 redundant worker;(
viii) whether priority rules apply for redundancies; and (ix) whether priority rules apply for reemployment.
Difficulty of redundancy index Data Maximum length of probationary period (months) 2. 0 Dismissal due to redundancy allowed by law?
No Retraining or reassignment obligation before redundancy? No Priority rules for redundancies? No Priority rules for reemployment?
No Source: Doing Business database. Doing Business 2015 Spain 86 LABOR MARKET REGULATION Redundancy cost Redundancy cost measures the cost of advance notice requirements,
severance payments and penalties due when terminating a redundant worker, expressed in weeks of salary.
Redundancy cost indicator (in salary weeks) Data Notice period for redundancy dismissal for a worker with 1 year of tenure 2. 1 Notice period for redundancy dismissal for a worker
with 5 years of tenure 2. 1 Notice period for redundancy dismissal for a worker with 10 years of tenure 2. 1 Notice period for redundancy dismissal (average
for workers with 1, 5 and 10 years of tenure) 2. 1 Severance pay for redundancy dismissal for a worker with 1 year of tenure 2. 9 Severance pay for redundancy dismissal
for a worker with 5 years of tenure 14.3 Severance pay for redundancy dismissal for a worker with 10 years of tenure 28.6 Severance pay for redundancy dismissal (average for workers with 1, 5
Social protection schemes and benefits & Labor disputes Doing Business collects data on the existence of unemployment protection schemes as well as data on
Social protection schemes and benefits & Labor disputes indicator Data Availability of unemployment protection scheme?
and inclusive economic powerhouse delivering high levels of employment, productivity, and social cohesion. Europe 2020 strategy is broad and ambitious
and Crowd mapping, social networking and democratic decision making tools, are technologies that allow for the quick identification (and dismissal) of issues.
Work and employment, other Technology Trends: Open Knowledge DSI activities: Operating a web service Key facts:
Work and employment, other Technology Trends: Open Knowledge DSI activities: Operating a web service Key facts:
and inclusive economic powerhouse delivering high levels of employment, productivity, and social cohesion. Europe 2020 strategy is broad and ambitious
and Crowd mapping, social networking and democratic decision making tools, are technologies that allow for the quick identification (and dismissal) of issues.
Work and employment, other Technology Trends: Open Knowledge DSI activities: Operating a web service Key facts:
Work and employment, other Technology Trends: Open Knowledge DSI activities: Operating a web service Key facts:
labour conditions and employment, privacy and data protection, product return, sales conditions, parcel delivery, labelling and information requirements online,
i. a. in areas such as taxation, employment and social conditions, transport, environmental responsibility. Legislation needs to fit this new channel in
liberalisation, entrepreneurship, employment and (this being Europe) social inclusion as well as sustainable development. Yet the backdrop to this initiative was the growing recognition on the part of policymakers
and the job security they enjoy with their existing large firms. The European commission has been concerned sufficiently by this issue to launch a number of initiatives in an attempt to boost entrepreneurship.
and by the need to ensure economic development, greater competitiveness, job creation and high quality security of supply (both short and long term) in the EU. Advanced electricity service and solution providers:
The Lisbon Strategy, a major priority of the European union, outlined the intention to boost competitiveness, job creation, social cohesion and environmental sustainability throughout the continent.
Despite the decreasing affordability of education, increasing unemployment caused by the financial crisis has led to increases in the number of students enrolled in higher education institutes as education is seen as an alternative to unemployment.
The composite effect of rising unemployment and tuition fees however, has contributed to exacerbating inequalities in access to higher education (see Figure E. 3. 1 on educational attainment in tertiary education.
Although the rising importance of ICT-based employment is likely to continue to favour the young and educated,
Employment and Economic class in the Developing World. ILO Research Paper No. 6. Brecher, R. A,
Unemployment of skilled and unskilled labor in an open economy: International trade, migration, and outsourcing.
Labour force by qualifications (in 000s), EU27+,"European Centre for the Development of Vocational training (Cedefop) website, 2012b.
and M. Signorelli,"Youth unemployment rate and impact of financial crises",International Journal of Manpower,(2012), Vol. 33 (1): 76-95 Christensen, Henrik Serup,"Political activities on the Internet:
and Pelin Sekerler Richiardi,"Employment, job quality and social implications of the global crisis,"World of Work Report, Vol. 2012, No. 1, 2012, pp. 1-34
Immigration, Jobs and Employment protection: Evidence from Europe, National Bureau of Economic Research, NBER Working Paper No. 17139.
and Loungani, P.,The Tragedy of Unemployment, Finance and Development, December 2010, Vol. 47, No. 4 de Haas, H.,The determinants of international migration, International Migration Institute
Youth unemployment does the EU case about its future?.Policy Brief. E. P. Centre. Dobbs, R, Remes, J.,Manyika, J.,Roxburgh, C.,Smit, S,
and DG ECFIN, The impact of ageing on public expenditure projections for the EU-25 Member States on pensions, health care, long-term care, education and unemployment transfers (2004-2050), Special report.
EU Employment and Social Situation: Quarterly Review: March 2013. P. O. o. t. E. Union.
2010.42, Employment and Social Developments in Europe 2011, Luxembourg: Publications Office of the European union, 2011a.
Employment and Social Developments in Europe in 2011, European commission, Directorate-General for Employment, Social affairs and Inclusion, Directorate A, 2011b.
Pathways towards full employment, Luxembourg: Publications Office of the European union: European commission, Directorate-General for Research and Innovation, 2012c.
"EU employment and Social situation.""Quarterly Review. European commission, and Eurostat, Demography report 2010: Older, more numerous and diverse Europeans, Luxembourg:
Older, more numerous and diverse Europeans,"Directorate-General for Employment, Social affairs and Inclusion,,2011a.""Internet use in households and by individuals in 2011,"Eurostat Statistics In focus, No. 66/2011, 2011b."
van Vuuren, D.,The trend in female labour force participation: what can be expected for the future?
. and Melling, K.,Gender inequalities in the risks of poverty and social exclusion for disadvantaged groups in thirty European countries, Expert Group on Gender, Social Inclusion and Employment report, Luxembourg:
"Unemployment and Right-wing Extremist Crime.""Scandinavian Journal of Economics, 113 (2): 260 285. FAO,"How to Feed the World in 2050,2009.
Job creation and inclusive growth, Mckinsey Global Institute, 2012. Finkelstein, E. A o. A. Khavjou, H. Thompson, J. G. Trogdon, L. Pan, B. Sherry,
Youth unemployment and crime in France. Journal of the European Economic Association, 7 (5): 1542-4774 Fredriksen, K. B, Income Inequality in the European union, OECD, 2012.
Harkness, S.,The Contribution of Women's Employment and Earnings to Household Income Inequality: A Cross-country Analysis, LIS Working Paper No. 531,2010.
sb=6. ILO, Global employment trends. Recovering from a second jobs dip, International labour Organisation, Geneva, 2013.
International Labour Office, Global employment trends for the youth, Geneva: International Labour Office, 2012a. Global employment trends.
Preventing a deeper job crisis, Geneva: International Labour Office, 2012b. International Labour Organisation, Global employment trends 2013.
Recovering from a second jobs dip, Geneva: International Labour Organisation, 2013. International monetary fund,,From Stimulus to Consolidation:
Kenworthy, L.,"The High-Employment Route to Low Inequality,"Challenge, Vol. 52, No. 5, 2009, pp. 77-99.
National Commission for Enterprises in the Unorganised Sector, Government of India, The Challenge Of Employment In India.
http://www. newasiabooks. org/publication/challenge-employment-india-informal-economyperspective-v-1-main-report-v-2-annexuresnational Education Association,"Access, adequacy
OECD Employment Outlook 2012, OECD Publications, 2012h.""Economy: migration starting to rebound, says OECD,"27 june 2012i.
The link between unemployment and crime rate fluctuations: An analysis at the county, state, and national levels.
and C. Fagan, Women's Employment in Europe: Trends and Prospects, New york: Routledge, 1999. Rustow, D.,Transitions to Democracy:
Crime, deterrence and unemployment in Greece: A panel data approach The Social science Journal,(49) 2: 167-174, Sathyamurthy, T. V.,"Nationalism in the Era of Globalisation,"Economic and Political Weekly, Vol. 33, No. 33/34
putting at risk its outlook for productivity, growth, human capital development and job creation. This report, part of the World Economic Forum's Fostering Innovation-driven Entrepreneurship in Europe project, examines
and in the Eurozone in particular, where growth rates remain low and unemployment stubbornly high. Europe continues to struggle to increase its competitiveness and set its economy on a more solid footing.
SMES experience high levels of organizational and employment churn, symptomatic of the real but volatile growth,
and making a significant difference to growth and employment across Europe. 7 Figure 3: SMES Struggling to Reach
or Exceed the 2008 Level of Employment and Value Added5 Source: Project Team based on Eurostat This report focuses on the challenge of scaling innovative entrepreneurial organizations.
in particular identifying and realizing win-win opportunities for collaboration between market leaders and market disruptors Employment (2014e relative to 2008 level) Valueadded (2014e relative to 2008 level) 0. 9 1
number of companies per country Increase in employment or value-added Decrease in both dimensions Increase in employment and value-added 10 Enhancing Europe's Competitiveness In the following pages,
engaging in entrepreneurial activities is less attractive in terms of job security (64), %financial benefits (29%)and long-term career prospects (26%).
as well as those mechanisms that help protect against the employment and financial risks of creating or joining a new venture.
and on job creation in organizations featuring programme participants. 17 This is strongly reinforced by the Forum's survey,
Self employment is a less popular option today than it was in 2009, with a clear majority in the European union (EU) now favouring work as an employee.
and entrepreneurship is the driving force behind employment and job creation in Portugal. A recent success in fostering entrepreneurship:
and Employment, introducing an assertive agenda along three key intervention areas (human capital, R&d and financing),
helping up to 1. 25 million businesses cut their employment costs, and supporting apprenticeships. Develop new ideas by helping businesses accelerate innovation and by improving intellectual property protection.
Break into new markets, simplifying access to the £230 billion public procurement market, helping small businesses improve their online presence and supporting exports.
Global Agenda Council on Youth unemployment Mark Rutte, Prime minister of The netherlands Aymeric Sallin, Founder and Chief executive officer, Nanodimension, USA;
and in the 1990s the figured has risen to one in 20 workers. 9. Much of the policy debate about globalisation has revolved around a trade-off between maintaining higher wages at the cost of higher unemployment versus favoring higher levels of employment
and into those knowledge-based industries where comparative advantage is compatible with both high wages and high levels of employment knowledge based economic activity.
In Silicon valley, for example, employment has increased by 15%between 1992 and 1996, even though the mean income is 50%greater than in the rest of the country. 4 In 1997 Silicon valley created more than 53,000 new jobs,
OECD. OECD, 1998, Technology, Productivity and Job creation: Best Policy Practices, Paris: OECD. OECD, 1998, Main Science and Technology Indicators, Paris:
the contribution of SMES to job creation and value added constitute a large share of both EU and Romanian economy.
and in 2012 employed over 86 million people providing for 66,5%of jobs from the total employment and contribute more than half of the total added value created by businesses.
this growth in number and importance combined with employment problem and job creation by SMES issues generated an interest in the study of entrepreneurship (Wennekers & Thurik, 1999).
Usually the attention and actions of policymakers and the business environment focused on large companies and overlook the importance of SMES especially in connection to innovation.
and a decrease in unemployment (Koellinger & Thurik 2012) so a more analytic approach toward the role SMES is required.
ensuring an important part of employment and innovation (Acs and Audretsch, 1990). Early theories regarded the small enterprises as being outside of the domain of innovative activity and technological change (Acs & Audretsch,
As Wennekers and Thurik stated possibilities for economic growth, job creation and innovation can come from SMES (Wennekers & Thurik,
and Local Development in Andalusia, Spain A REVIEW BY THE LOCAL ECONOMIC AND EMPLOYMENT DEVELOPMENT (LEED) OF THE ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT (OECD) Marco Marchese, Jonathan Potter
ENTREPRENEURSHIP, SMES AND LOCAL DEVELOPMENT IN ANDALUSIA, SPAIN A review by the Local Economic and Employment Development (LEED) of the Organisation for Economic Co-operation and Development (OECD) FINAL REPORT
SMES and Local Development‘in Andalusia, Spain, has been undertaken by the Local Economic and Employment Development (LEED) Programme of the Organisation for Economic Co-operation and Development (OECD) in collaboration with Red de Espacios
135 EXECUTIVE SUMMARY The OECD Local Economic and Employment Development Programme (LEED) has undertaken a review on entrepreneurship, SMES and local development in Andalusia,
Human capital and the labour market The Andalusia labour market is affected by structural weaknesses High levels of unemployment,
Attendance of vocational training is on the rise In Andalusia a total of nearly 95 000 students attend vocational training,
The II Andalusia Plan for Vocational training, currently being prepared by the Ministry of Education, seeks to adapt vocational training to the new economy and new demand of jobs and occupations.
This will involve expanding online training; cooperating more closely with businesses, unions and others through advisory councils;
Vocational training has been very successful in the last decade in placing students in a job. That has resulted in an increased number of students during the 1990s
a separation between ministries concerned with entrepreneurship, education, and employment; and the lack of a workforce strategy tied to business cluster strategies.
etc. with a view to creating knowledge ecosystems that support local development, employment and social cohesion.
the sharp economic downturn in Andalusia may stimulate a greater willingness to embrace self employment and other forms of entrepreneurship.
The focus of the current programming period is on soft measures such as capacity building and institution building leading to greater competitiveness, innovation, and employment.
between 50 and 500 employees demonstrates an underlying structural problem in growing local enterprises to a level that can contribute more significantly to employment creation and regional growth.
The employment impact is certainly significant in a region that had hitherto been lagging in terms of new technology sectors;
Work across the silos of business and employment agencies by connecting business incentives with job creation in strategic sectors.
including by targeting the new unemployed through self employment programmes. Setup a business incubation monitoring and evaluation system that assesses the performance of Andalusia incubators against EU current benchmarks.
Spatial variations within countries suggest that not all geographical parts of a country achieve similar levels of employment, skills development, business formation, economic growth and infrastructure development.
the regional economy of Andalusia has faltered badly with sharp drops in both gross domestic product (GDP) and employment.
SMES and Local Development has been carried by the OECD Local Economic and Employment Development (LEED) Programme in partnership with the Andalusian Technology Network (Red de Espacios Tecnologicos de Andalucía RETA).
and generating policies that enable better forms of sustainable job creation. Methodology This report provides advice from an international perspective on how to strengthen SME and entrepreneurship policies in Andalusia.
Tertiary education as%of labour force (2008) 29.8 24.9 High-tech manufacturing as a%of employment (2008) 4. 8 2 Knowledge-intensive services as%of employment (2008) 28 9 26.9 Active
population (thousands)( 2008) 31 143 5 562 Labour market participation rate (2008) 73.4 68.9 Employment rate (2008) 65.1 56.6 Unemployment rate (2008) 11.3
17.8 Youth unemployment rate (2007) 18.1 23.3 Source: OECD Regional Database The socioeconomic context Andalusia is the southernmost region of peninsular Spain
and generally depicts a scenario of lower than average performance in R&d and innovation, education, and employment.
whereas vocational training has followed an opposite trend (from 4. 1%in 1998 to 5%in 2009).
Whilst between 1997 and 2007 regional employment had increased at an annual rate of 6. 6%,higher by 2%than the national average,
with unemployment rising from 11%to 27.2%in early 2010(+16.2%)compared to+12.7%for Spain as a whole.
The rapid soaring of unemployment has been the result of the industrial and labour market structures of the region.
Arguably, large regional unemployment also conceals a remarkable share of labour informality, which negatively impacts on labour productivity.
With regard to the industrial structure, until the 1. Employment in the Andalusia construction sector decreased in 2008 on annual basis by 13.6,
Though the system is hampered by many redundancies in training programmes, it also is experiencing gaps among different types of institutions,
with particular focus on the role of education and labour policy in regional innovation. We first examine debates about human capital generally
Interestingly, Spain‘s unemployment benefits constitute a disproportionately large share of its social benefit package, relative to the EU15 countries on average.
the high level of unemployment, large reliance on temporary workers, and low productivity. Although the overreliance of the region on the construction industry and the subsequent collapse of the housing bubble clearly contributes to these factors,
Already by 2009, unemployment among young adults (16-24) was considerably higher (38), %and among those with just a high school diploma, the unemployment rate stood at 56%(Instituto Estadístico de Andalucía, 2010).
At the same time, as discussed further below, the last decade has seen students increasingly selecting traditional vocational training rather than university education (Junta de Andalucía, 2009.
the Ministry of Employment; and the Ministry of Economy, Innovation and Science. In the mid 1980s, after education policies were transferred to Andalusia,
with vocational training and non-university education remaining in the Ministry of Education. The idea was to use universities as innovation
Finally, the Regional Ministry of Employment has a less visible role in the Andalusia system of innovation described above,
despite having responsibility for employment policies, skills training for unemployed and employed workers (Formacíon Profesional por el Empleo FPL),
Vocational training and apprenticeship programs The different systems of vocational training in Andalusia are as follows: 5 Erasmus is the EU flagship higher education program enabling 200 000 European students to study in a university from another member country each year.
Vocational training (Formación Profesional or FP) serves young people as a professional alternative to the Baccalaureate and university education.
Vocational training for employment (Formación Profesional para el Empleo or FPE) serves either dislocated or incumbent workers.
Initially conceived as an employment policy it is managed now by the Regional Ministry of Employment in coordination with the Ministry of Education.
Unions also collaborate in the training of workers with the Ministry of Employment. 6 Recently,
the government has created a new institution to regulate vocational training in the region: the Andalusia Institute for Occupational Qualifications (Instituto Andaluz de Cualificaciones Profesionales.
The Institute will be in charge of integrating the different vocational training systems (FP and FPE) based on a common system of occupational qualifications in collaboration with the national government and unions.
In Andalusia, a total of 94 710 students attend vocational training less than half the number that attend the public universities.
The II Andalusia Plan for Vocational training, currently being prepared by the Ministry of Education, seeks to adapt vocational training to the new economy and new demand of jobs and occupations.
This will involve expanding online training; cooperating more closely with businesses, unions and others through advisory councils;
teaching more foreign languages; and creating at least one vocational centre of excellence in each of the eight Andalusia provinces to improve public support and connections with businesses.
Vocational training has been very successful in the last decade in placing students in a job. That has resulted in an increased number of students during the 1990s
and CCCO) offer vocational training and apprenticeships both autonomously and in coordination with the Regional Ministry of Employment.
For instance, in 2009 they took part in an initiative of the Regional Ministry of Employment to train more than 1 000 students, workers and redundant workers of the aeronautic sector. 7 Spanish Minister of Education discourse in the Congress
The II Andalusia Plan for Vocational training will address several gaps in the system that can help link vocational training better to innovation and entrepreneurship for instance
but it also targets students (in high school, vocational training schools and universities) and women. ANDALUCIA EMPRENDE has more than 200 business incubators (Centros de Apoyo al Desarrollo Empresarial,
and vocational training schools, teaching students how to create and manage cooperative firms. For the highest level of vocational training students, ANDALUCIA EMPRENDE offers a business plan competition in
which the winners spend three days training in the business incubators. In collaboration with EXTENDA, they offer four training programs:
which promotes entrepreneurship in vocational training schools and secondary schools. Their training is based on improving the skills of employed people (in collaboration with the Ministry of Education)
1) a program to promote business education at vocational training centres; and 2) a university program promoting entrepreneurship,
Yet, such disconnects may hinder communication, foster more redundancy, and prevent training programs from adopting appropriate curricula
a separation between ministries concerned with entrepreneurship, education, and employment; and the lack of a workforce strategy tied to=cluster‘strategies.
regional actors seem to have missed the more modest but important contribution of vocational training and education.
Innovation and Science, there is only one vocational training diploma in Andalusia included under the Energy and Water professional family.
Limited coordination amongst the Ministry of Economy, Innovation and Science and the Ministry of Employment Second,
The Ministry of Employment remains separate. This new configuration clearly reflects and structures how regional actors think about labour markets,
and employment systems, suggesting that the official view of innovation is exclusively about R&d. It is not clear how this affects the distribution of resources,
as well as the depth of the region‘s economic problems, it is unfortunate that this separation of agencies may hinder strategic coordination, for instance of vocational training and industry clusters.
Opportunities for RETA Despite the challenges the redundancy in overall education and training system, the lack of university savvy about technology and entrepreneurship,
The preparation of the II Andalusian Plan for Vocational training, which will link training better to the new economy,
The university system is committed to support labour policy, technology, and entrepreneurship. While most effort of the regional government to promote entrepreneurship
In particular it can play a pivotal role by helping to link vocational training to the many other efforts.
trying to create a win-win situation by restructuring employment practices in a way beneficial to both employers and low-skilled workers (Marano and Tarr, 2004).
Connect business incentives with job creation Work across the silos of business and employment agencies by connecting business incentives with job creation in strategic sectors.
RETA might help the regional government identify examples of programs from other countries (such as the East Bay Green Corridor Partnership described below) that link incentives to job creation,
and the intermediary may act as an employment broker, introducing workers to prospective employers. An impressive set of evaluations has shown that these initiatives have significant and positive impacts on the employability
raising awareness of redundancies and potential synergies. The new market demand for energy efficiency will foster job creation in different ways.
First, initial energy audits and the simplest home improvements are performed by disadvantaged youth from the eight cities trained at the Rising Sun Youth Center.
there is also much redundancy. The Gothenburg model provides a useful model for a region that has struggled to launch entrepreneurship programs at the universities.
Employment and Occupational Structures of G-7 Countries. International Labour Review 141,1-2: 123-159.
Self employment Entry Across Groups. Journal of Business Venturing 10,143-156. Becker, G. 1965. Human Capital.
An Interim Report on the Sectoral Employment Initiative. Philadelphia, PA: Public/Private Ventures. Florida, R. 2002.
The Labor market Progress of Participants of Sectoral Employment Development Programs. WASHINGTON DC: Aspen Institute. CHAPTER III:
The meeting with Citius and the OTRI also highlighted the general problem with the issue of the national regulations governing university employment
and go to work for a start up company with any assurance that they will be able to return from that employment to their university position.
At the level of local, regional, national and supernational economies, the EC highlights the importance of entrepreneurship in terms of its contribution to job creation and growth
Structural reforms were launched in the fields of employment, innovation, economy, social cohesion, and environment. However, by 2005 it was apparent that the goal was overly ambitious.
8. Attract more people into employment and modernise social protection systems; 9. Improve the adaptability of workers and enterprises,
Five targets were set to boost growth and employment (EU, 2010: Raise the employment rate of the population aged 20 64 from 69%to at least 75%;
%Invest 3%of GDP in R&d by improving the conditions for R&d investment by private sector;
There is a relationship between the entrepreneurial spirit and economic results in terms of growth, consolidation of the business framework, innovation, job creation, technological changes and increase in productivity.
The crisis has taken a toll on local employment. The unemployment rate has risen steeply to 27.2 percent compared with 20 percent in Spain as a whole.
The youth unemployment rate is much higher: while it is 43 percent in Spain, estimates indicate that 39 percent of the registered youth unemployed are located in Andalusia.
which require employees to have completed a year of full employment before qualify. Many under-25s are unable to demonstrate 12 months‘worth of unbroken employment (The Leader, Andalusia Suffering Most from Unemployment
21.11.2009. The above synopsis indicates that the rapid economic growth and other gains experienced in recent decades,
and the number of enterprises and employment has gone also up. At the same time, the analysis illustrates that the region has been hit severely by the crisis,
Start-ups, stock of enterprises and unemployment, notably youth unemployment, are being impacted severely. Moreover, the region has limited a relatively entrepreneurial where people enter public sector employment as their preference.
That said there is a certain degree of willingness to engage in future entrepreneurial activity and the current economic circumstances may stimulate this interest.
including self employment and start-ups, but this is likely to be hampered, to some extent, by the relatively low levels of human capital in the region.
and other limitations, there is a need for broader support to entrepreneurship and job creation. Institutions and policies for entrepreneurship Prior to assessing the challenges
Create and consolidate enterprises and employment through advice and support to firms, business training, and accommodation at the pre-incubation and incubation stages.
However, in qualitative terms (such as growth, employment, turnover, etc. the approach could be improved. Major constraints include legal barriers
and youth unemployment, suggest a need for a wider focus on entrepreneurship, including education, vocational educational training, self employment, assistance to all forms of start-ups,
not only those connected with R&d&i. Secondly, there is a clear divide between policy-making (the responsibility of the new Ministry of Economy
Challenges Firstly, the region must cope with the very high levels of unemployment (average of 27.2,
%peaking at almost 32%in Cadiz in April 2010), particularly youth unemployment, which has risen steeply in recent years.
The sheer levels of unemployment require the region to support all forms of entrepreneurship and start-ups in all sectors of activity (not simply those closely connected with R&d&i) and by all social groups,
whether or not in employment, needs to be upgraded. Despite the recent catch up effect driven by higher levels of business activity (e g. construction and tourism sectors) and GDP per capita (now 80%of the EU average),
The consequence is high levels of youth unemployment, a slow down in the number of migrants, emigration by EU ex-pats, etc.
and the general public is nervous about possible layoffs and responds by increasing savings at the expense of consumption.
the sharp economic downturn in Andalusia may stimulate a greater willingness to embrace self employment and other forms of entrepreneurship.
The high and rising levels of general and youth unemployment necessitate the harnessing of all ideas, talents, sectors, etc. for the future of the region.
The region could promote the establishment of dedicated (re) training programmes for existing business people (in employment
Moreover, the large number of people entering the unemployment register will require rapid retraining and start-up support to engage in new forms of activity.
Promote self employment to tackle unemployment and diversify the economy The rising levels of unemployment, the need to diversify the economy (e g. away from construction, real estate, etc.)
combined with the population‘s latent interest to establish a business (GEM, 2006) call for a greater focus on providing opportunities for people to establish their own businesses though self employment or creation of firms.
Such an approach should not be driven solely by R&d&i considerations: a strong focus on innovation could restrict the flow of viable business ideas.
Turning to institutions in Andalusia, the region should review its policies in relation to the stimulation of self employment.
ANDALUCIA EMPRENDE is placed well to take responsibility for a more targeted programme of support for self employment.
they can generate synergies offering the prospects of strengthening innovation and employment generation; they assist the general process of stimulating entrepreneurial activity
thereby creating greater wealth, employment and opportunity. Rationale for the intervention Although the Andalusia region has recognised the importance of entrepreneurship
i) the very high and increasing levels of general and youth unemployment; ii) the levels of human capital relatively low compared with elsewhere in Spain;
Transiting from unemployment into self employment Description of the approach Germany has suffered from persistently high unemployment rate,
as well as low self employment rates. Consequently, a programme known as the Start-up Subsidy (SUS Existenzgründungszuschuss) was introduced in 2003 under
Whereas the BA pays recipients the same amount that they would have received in unemployment benefits for a period of six months plus a lump sum to cover social security contribution,
Rationale for the intervention Germany had one of the lowest self employment rates in Europe (fluctuating between 10-11 percent)
and yet experienced persistently high levels of unemployment (between 7-9 percent). To overcome this constraint,
the German government prioritised active labour market policies, including vocational educational training, employment subsidies, job creation schemes and self employment schemes targeting the registered unemployed.
The policy has been successful in terms of uptake: whereas in 2002 3. 5 percent of the unemployed received the subsidy (37 000 start-ups), this increased to 9 percent (250 000 start-ups) in 2004 (Baumgartner and Caliendo, 2007.
Additionally, both the probability of being in self employment and/or paid employment and the personal income are significantly higher for participants.
Baumgartner and Caliendo, 2007, p. 26) Reasons for success Business experts must examine the start-up concept
Relevance to Andalusia and considerations for adoption The high and rising unemployment rate in the Andalusia region, especially as far as youth unemployment is concerned,
However, incubators are not a panacea for entrepreneurship and job creation. The experience of incubators in the EU has been mixed.
which incubators contribute to high-growth firms or the employment impact in terms of job creation), this suggests the necessity for an evaluation of the Andalusia incubator practice so far.
Baumgartner, H. J. and Caliendo, M. 2007) Turning Unemployment into Self employment: Effectiveness and Efficiency of Two Start-up Programmes, DIW, Discussion Papers 671, Berlin.
SME DEVELOPMENT IN ANDALUSIA Introduction SME development and growth is critical to fostering entrepreneurship, job creation and economic development in Andalusia as a result of the dominance of SMES in the regional economy.
with a failure to grow indigenous enterprises to a level that can contribute more significantly to employment creation and regional growth.
The employment impact is certainly significant in a region that had hitherto been lagging in terms of new technology sectors;
and the upgrading of the sector s knowledge base more generally, for example through support for vocational training programmes.
More lower-level innovation support is also with regard to basic vocational training and technical support in areas such as product development, process innovation and marketing.
The availability of alternative employment in the growing economies of the nearby cities of Florence, Siena and Pisa resulted in an outflow of the farming population attracted by less arduous and more economically rewarding forms of employment.
) Local tacit knowledge is reproduced also through a high level of commitment among firms to vocational training and apprenticeships;
A tradition of long term specialist apprenticeships between 5 and 10 years has continued through the 2000s despite increased competitive pressures on firms from foreign low cost competition (Christensen, 2010.
the Danish labour market model often referred to as=Flexicurity‘also provides generous provision for vocational training and retraining both for those in work and the unemployed.
This allied to the generous unemployment benefits available as part of the system is seen also as important in encouraging entrepreneurial
Obstacles and responses Despite growing international competition from lower cost producers in China and Eastern European, Denmark‘s employment remained relatively stable up until 2007 but with the economic downturn and collapse of global demand in many key markets,
unemployment has climbed from 3. 6 percent to 5. 9 percent in 2009, forecast to rise above 7 percent in 2010.
and firing of labour while employees are given generous social protection and rights to retraining has been attributed as a major factor in the resilience of Danish SMES through past crises (Anderson and Mailand, 2005, Madsen, 2006).
But this needs to be matched by the self financing of institutions that can support tacit knowledge production, in particular with regard to greater levels of vocational training, information gathering and more practical forms of business support.
and employment creation (Birch and Cumbers, 2009). The UK has one of the strongest life sciences sector in Europe,
the Scottish government recently introduced a Life sciences Modern Apprenticeship scheme which provides subsidies for SMES to take on trainees.
Flexicurity in Denmark, European Employment Observatory, Working Paper, University of Aalborg. Maskell, P. 1997 Learning in the village economy of Denmark.
employment rose at an annual rate of 6. 6, %as compared to only 4. 7%nationally between 1997 and 2007;
over the same time span, unemployment decreased at 4. 7%annually, halving the number of the unemployed from 442 000 to 212 000.
unemployment has soared from 11%to 27.2, %only 3. 5%below the 1996 value preceding the phenomenal decade.
Conversely, unemployment among young adults (aged 16-24) with just a high school diploma stood at stunning 56%at the end of 2009.
This is shown, for instance, by the fact that the ministry of employment is involved not actively in the design of regional innovation and entrepreneurship strategies,
although it is responsible for vocational education, self employment programmes, and even for some entrepreneur training schemes. A by-product of this divide is that workforce development is aligned not as with cluster development as it could be.
Moreover, with a surging unemployment rate above the 25%threshold, it would be important to capture the potential of self employment programmes for both reducing joblessness and increasing business activity rates;
Meanwhile, the dramatic surge of the regional unemployment rate (26%)urges the introduction of self employment programmes.
Self employment has the potential to alleviate unemployment, enhance the long-term income of participants, and positively impact on their career prospects by improving employability.
Currently, however, self employment programmes are in the remit of the regional ministry of employment. As a result, co-ordination and co-operation between the ministry of employment and the Ministry of Economy, Innovation and Science would be crucial in this domain.
This is all the more true because the success of self employment schemes is highly dependent on the training of participants,
who are often unfamiliar with business management practices. Incubators are one of the most favoured tools of business development promotion in Andalusia.
The involvement of the regional ministry of education should also be sought as the main government body responsible for vocational training in the region.
yet there is only one vocational training diploma in Andalusia included under the Energy and Water professional family.
when consideration is given to the problem of high levels of unemployment, especially youth unemployment in Andalusia. Entrepreneurship works when new firms are formed,
Work across the silos of business and employment agencies by connecting business incentives with job creation in strategic sectors.
including by targeting the new unemployed through self employment programmes. Setup a business incubation monitoring and evaluation system that assesses the performance of Andalusia incubators against EU current benchmarks.
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