affectingâ theâ widerâ innovationâ environment. Â Theseâ include: Â ï Internationalisationâ ofâ innovation, Â withâ largeâ companiesâ organisingâ theirâ innovationâ
ï Increasinglyâ competitiveâ businessâ environment, Â drivenâ byâ technologicalâ advances, Â shorterâ innovationâ cyclesâ andâ globalisation.
constitutesâ oneâ ofâ theirâ keyâ strengthsâ forâ theâ Europeanâ economy. Â Ourâ focusâ inâ thisâ reportâ isâ onâ
 Lookingâ toâ thisâ businessâ environment,  whichâ areâ theâ bottlenecksâ preventingâ SMES toâ anticipateâ onâ
toâ balanceâ theâ finiteâ availabilityâ ofâ naturalâ resourcesâ againstâ escalatingâ humanâ demand. Â Solutionsâ thatâ aimâ atâ theâ gradualâ uncouplingâ ofâ economicâ growthâ fromâ resourceâ
consumptionâ areâ essentialâ forâ theâ sustainabilityâ ofâ entireâ economies. Â Â ï Climateâ changeâ willâ driveâ innovationâ acrossâ theâ economyâ andâ society.
budgetsâ aroundâ theâ worldâ continueâ toâ increase, Â drivenâ byâ escalatingâ demand, Â newâ clinicalâ
innovationâ isâ organised, Â thusâ shapingâ theâ widerâ innovationâ environment. Â Â Â Innovationâ isâ Internationalizingâ
 Emergingâ economies,  suchâ asâ Indiaâ andâ China,  areâ movingâ upâ theâ valueâ chainâ andâ
4 India, for example, is developing game-changing healthcare services and energy solutions that will be difficult to meet with
haveâ limitedâ liquidity.  Thisâ lackâ ofâ flexibilityâ mayâ encourageâ †projectâ hopping† † firmsâ jumpingâ fromâ
development, Â toâ prototype, Â beforeâ finallyâ beingâ introducedâ toâ theâ market), Â predominantlyâ fromâ
productsâ andâ processesâ butâ alsoâ services, Â organizationalâ structuresâ andâ businessâ models. Â Noâ company, Â largeâ orâ small, Â canâ possessâ theâ knowledge, Â talentâ andâ resourcesâ neededâ toâ innovateâ
themâ intoâ ownâ productsâ andâ services.  Forâ innovation†drivenâ SMES,  openâ sourceâ andâ co†creationâ areâ
Inâ thisâ newâ environment, Â theâ abilityâ toâ importâ andâ absorbâ newâ technologiesâ isâ asâ importantâ toâ
innovationâ basedâ onâ interactionâ withâ customers, Â valueâ chainâ partnersâ andâ researchâ partners: Â inâ
developedâ goodsâ andâ services. Â Acknowledgementâ ofâ asymmetricâ informationâ however, Â alsoâ encouragesâ entrepreneursâ toâ searchâ forâ newâ businessâ opportunities, Â leadingâ themâ toâ anâ everâ
moreâ detailedâ pictureâ ofâ demandâ andâ supply. Â Therefore, Â informationâ asymmetryâ playsâ aâ dualâ
roleâ asâ itâ bothâ generatesâ marketâ failuresâ andâ givesâ birthâ toâ entrepreneurialâ opportunities. Â ï Highâ costsâ ofâ adaptation:
businessâ casesâ whichâ wereâ impossibleâ toâ fundâ suddenlyâ becomeâ attractiveâ investmentâ opportunities.  Thisâ offersâ aâ win†winâ situationâ forâ allâ involved:
investment Budgettedâ companyâ valueâ atâ exit Investmentâ/ exitâ valueâ forâ investor †5, 000
atâ investment Budgettedâ companyâ valueâ atâ exit Riskâ adjustedâ Companyâ value Horizon 2020 Expert Advisory Group â€oeinnovation in SMES€:
offerâ goodâ shortâ termâ returnsâ overâ longerâ termâ developmentâ opportunities.  Inâ orderâ toâ increaseâ companies† chancesâ ofâ securingâ externalâ investment,  itâ willâ beâ essentialâ toâ establishâ
aâ highâ qualityâ dealâ flowâ fromâ theâ SMEÂ Instrumentâ Phaseâ 1â &â Phaseâ 2, Â whichâ demonstratesâ
ï Addressâ theâ highâ transactionâ costsâ associatedâ withâ smallâ investments: Â Forâ theâ investorâ communityâ theâ transactionâ costsâ relatedâ toâ dueâ diligence, Â projectâ monitoringâ andâ exitâ
diligenceâ assessmentâ isâ aâ significantâ costâ barrierâ forâ smallâ investments, Â especiallyâ forâ smallâ funds.
needsâ ofâ applicants, Â theâ media, Â theâ Memberâ Statesâ andâ otherâ stakeholders. Â Theâ campaignâ
ï Increasedâ privateâ investments, Â alsoâ privateâ equityâ financing; Â ï Reducedâ timeâ fromâ ideaâ toâ market;
accelerateâ discussionsâ internallyâ † betweenâ DGS Competition,  Internalâ Marketsâ andâ Enterpriseâ † toâ developâ newâ policiesâ inâ thisâ field.
customers. Â Ifâ onlyâ aâ shareâ ofâ theâ publicâ procurementâ budgets, Â representingâ 16â percentâ ofâ
developmentâ byâ providingâ marketâ opportunities,  especiallyâ inâ areasâ addressingâ societalâ challenges.   Theâ Commissionâ andâ Europeanâ Parliament,  forâ nearlyâ aâ decade,  haveâ beenâ pushingâ memberâ€
betweenâ customers/usersâ andâ suppliers. Â Asâ such, Â itâ resemblesâ moreâ openâ innovationâ processesâ (e g.
 Forâ instance,  theyâ couldâ runâ openâ competitions,  asâ isâ oftenâ doneâ forâ architecturalâ projects, Â
controlled environments rather than on live systems Horizon 2020 Expert Advisory Group â€oeinnovation in SMES€:
or business network contract, is an agreement between two or more enterprises that share the common goal of
multiplyâ theirâ experiences, Â especiallyâ aroundâ internationalâ opportunities. Â Recommendationâ 5. 4: Â Provideâ focusedâ supportâ forâ businessâ incubationâ andâ accelerationâ
beâ putâ inâ placeâ toâ ensureâ theâ qualityâ assuranceâ ofâ suchâ incubationâ services. Â Â
designâ andâ productionâ ofâ objects, Â environments, Â managementâ ofâ organizations, Â orâ theâ designâ andâ
Board, European Design Innovation Initiative, DG Enterprise and Industry, 2012 http://ec. europa. eu/enterprise/policies/innovation/files/design/design-for-growth-and-prosperity-report en. pdf
Horizon 2020 Expert Advisory Group â€oeinnovation in SMES€: Consultation on Next EU Strategic Work Programme 2016-2017
componentsâ (particularlyâ theâ shareâ ofâ highâ growthâ enterprises) Â proposedâ byâ theâ Commission, Â andâ ultimatelyâ inâ growthâ andâ jobsâ acrossâ Europe.
16 http://ec. europa. eu/environment/beyond gdp/index en. html 17 The Assembly of European Regions, www. aer. eu
companiesâ andâ entrepreneursâ toâ makeâ commercialâ senseâ outâ ofâ theâ researchâ investments. Â Business, Â
opportunities.  Thus,  inâ relyingâ onâ themes/technology†definedâ structuresâ toâ theâ exclusionâ ofâ other,  moreâ open, Â
marketing, Â communications, Â helpâ desk, Â matchmakingâ eventsâ andâ otherâ servicesâ toâ attractâ SMESÂ willâ
schemeâ shouldâ alsoâ beâ putâ inâ placeâ toâ fundâ †graduateâ innovationâ assistants† inâ enterprises, Â
Consolidatingâ SMEÂ communications: Â Theâ highâ priorityâ givenâ toâ SMESÂ inâ EUÂ policiesâ isâ bothâ aâ blessingâ
In the digital age the learning environment is completely blown open. The advent of new digital
environments because they are voluntarily engaging in information, which they find interesting The dominant forces in children†s lives are the media
environments of the 21st-Century. This kind of learning is handled intuitively, with inherent enthusiasm, and with the
environments as the interaction between a teacher, a student and curriculum (the content which a student supposed to be
far-reaching opportunities it also brings substantial challenges. For example, the universities provide a common physical space for a diverse group of students to interact in
e-learning environment, which can be more engaging and interactive. When students do meet in the classroom with an
one that reacts to its environment organically. It not only adapts to the environmental changes, but it integrates the very
contributes to economic growth and job creation and to the achievement of the digital single market through the increasing offer of
new and innovative online products and services -Coordinated action at Union level is necessary to create synergies between national efforts
of economic crisis -the valuable work done by Europeana, by the Member States†institutions and national
economy in the digital age 4 OJ L 283,29. 10.2011, p. 39 5 COM (2010) 245 final/2
environment and to promote the creation of content and new online services as part of the information society and the knowledge-based economy
-the vital importance of ensuring the long-term viability of Europeana, including in terms of governance and funding,
stakeholders'representatives, following a stakeholders'dialogue sponsored by the Commission 8832/12 MM/ag/mj 5
Promoting voluntary stakeholders'agreements and other mechanisms facilitating digitisation and online accessibility of out-of-commerce works
digital entrepreneurship This report has been prepared for the European commission DG Enterprise and Industry April 2013 2
Content Content...2 Foreword...4 A business landscape in transition...5 The European business landscape:
An economy in transition: from digital to digitally-driven...8 Vision and objectives...13 Vision...
and enhance investments...31 Access to finance...31 Use of alternative financing sources...32 Finance knowledge...
benchmark analysis of existing schemes and policies to boost digital entrepreneurship...38 The European policy background...
42 Europe 2020.42 European Digital Agenda...43 An industrial policy for the globalisation era...45
Entrepreneurship 2020 Action Plan...46 Small Business Act for Europe (SBA...47 European E-business Support Network for SMES...
and enhance investments...58 Pillar 5: Boost the digitally powered single market...61 Impacts...65
economies. They enable economies to create more jobs, improve people's lives and build better and greener societies.
Citizens enterprises, universities and governments become increasingly connected in the digital world. Digital is changing people†s lives:
the way they work, shop, socialise, communicate and educate It also reshapes traditional industries and
transforms the business environment, from fashion to automotive, from transport and logistics to energy distribution.
and services are conceived, developed produced and accessed. They are enabling businesses to faster develop and bring to
market innovative products and services that it was impossible to think about before Digital technologies help to totally reshape
in various sectors of the European economy Michel Catinat Head of Unit Key Enabling Technologies and ICT
Enterprise and Industry Directorate-General European commission 5 A business landscape in transition The European business landscape:
With a GDP of circa 13 trillion euros in 2011, the European economy is by far the leading
economy worldwide. With almost 74%of the EU GDP, the service sector dominates, compared to industry with around 25%and agriculture with only 2%of GDP
Representing 99.8%of all enterprises, SMES1 are the backbone of this service-driven economy From Table 1, it is clear that the typical EU enterprise is a SME,
or more specifically, a micro -enterprise with less than 10 employees In employment terms, almost 67%of workers are employed by SMES
of which 45%are employed by micro-enterprises, 30%by small companies and the remaining 25%by medium
-sized companies. Additionally, according to a study analysing the role that SMES play in creating more and better jobs, 85%of the net new jobs in the EU between 2002 and 2010 were created
by SMES. Because of larger scale and higher capital intensity, the difference between SMES and large companies in terms of gross value added (GVA) is less extreme.
Table 1 †Number of enterprises, SME employment and gross valued added in EU 27 (2010
Annual report on EU Small and Medium sized Enterprises 2010/2011 1 According to EU recommendation 2003/361, a small and medium-sized company or SME is defined as any company
micro enterprises with 1 to 10 employees and a turnover or a balance sheet total less than 2 million euros, small enterprises with 10-49 employees and a
turnover or a balance sheet total between 2 and 10 million euros and medium-sized enterprises, having 50-249
employees and a turnover less than 50 million euros or a balance sheet total less than 43 million euros Micro Small Medium SME Large
Enterprises Number 19 198 539 1 378 401 219 252 20 796 192 43 034
economy, both in terms of number of enterprises and employment 6 Table 2 illustrates the size of six different industry clusters2 in terms of the percentage of the total
Member State workforce employed in a particular industry cluster. At Member State level, i e looking horizontally, most European citizens are employed in †knowledge intensive business
Small and medium-sized enterprises are highly dependent on entrepreneurs, i e. individuals who have the ideas
Entrepreneurship, which examines the motivation, choices, experiences and obstacles linked to self employment and compares European opinions with those outside of Europe, the image of
†entrepreneurial perception†between the two economies has reduced surprisingly as the image of European citizens towards entrepreneurs slightly improved(+4)
existing businesses and opening opportunities for new companies and industries †it could be Creative and
services Labour -intensive industries Life science Tourism & Hospitality Transport & distribution Other Austria 10.7%23.1%34.1%1. 9%9. 5%9. 5%11.1%100.0
said that an economy almost fully driven by (micro) SMES could be the ideal catalyst to make the
An economy in transition: from digital to digitally-driven There is no debate over whether digital innovation is a profound force in our economy.
The digital economy isn†t just about speeding up communication across borders or changing the skills
workers need; it is about changing the very nature of consumption, competition and how markets
operate. More profoundly, it is also driving a significant shift in the balance of power between organisations and individuals.
As customers are living their lives differently, Tesco believes they â€oehave to be tuned into the
As a result, from August 2011, South-korean customers can shop at †Tesco Homeplusâ€-Tesco†s virtual grocery store.
of digital opportunities by building on the way it currently uses digital technologies and organises business processes. †Digital disruption†refers to changes, both positive and threatening,
ï§Customer insights combined with the ability to reach out to customers more effectively ï§Operating models-the way daily operations and processes are organised
ï§Business models-the way value is created, delivered and captured Any single force has the potential
online retail and globalisation intensify competition. However, supermarkets face fewer direct threats from overseas players, due to the perishable nature of grocery goods and the relatively
and develop products and services. The impact of digitisation on marketing, sales and services is
more obvious than on other business functions, though impact on other business functions cannot be neglected
-driven economy 3 Definitions see Annex Quenching customer insight: Gatorade †Mission Control†Gatorade is an important player in the sports-themed food and beverage products market.
facilitating Gatorade reaching out more proactively to influencers and customers Initial results are impressive, with claims of a 250%increase in engagement and 65%reduction
and services is more obvious than on other business functions, though impact on other business
innovations are changing economies and markets, and reinventing relationships between organisations, suppliers and customers thus becoming critical elements for growth, innovation
and job creation It is estimated by Mckinsey that for every job destroyed by the adoption of digital technologies
SME-driven economy ï§To actively support and promote the connection between traditional industries and the
in Figure 4, cover the transformation to a digitally driven economy, digital entrepreneurship5 high-tech skills and talent, access to finance
and leveraging the opportunities of the digital single market 1. Increase industry digital transformation. Increase the take-up and use of digital
and enhance investments. Improve access to finance for each stage of enterprise development and support the growth of digital entrepreneurial
ventures 5. Boost the digitally powered single market. Improve the ease of doing digital business
in and across Member States, by equally stimulating the demand and supply of digital technologies and creating economies of scale
5 Digital entrepreneurship embraces all new ventures and the transformation of existing businesses that drive
economic and/or social value by creating and using novel digital technologies. Digital enterprises are characterised
by a high intensity of utilisation of novel digital technologies (particularly social, big data, mobile and cloud solutions
invent new business models, sharpen business intelligence, and engage with customers and stakeholders. They create the jobs and growth opportunities of the future
15 Figure 4 †Objectives The analysis in this paper is oriented around the above five pillars.
Over the following chapters it examines the challenges and barriers of each of the five pillars for digital entrepreneurship, and
provides recommendations for elevating the role of European public policy 1. Increase industry digital transformation
investments 5. Boost digitally powered Single Market Increase the take-up and use of digital technologies by
stage of enterprise development and support the growth of digital entrepreneurial ventures Improve the ease of
doing digital business in and across Member States, in order to equally stimulate demand and supply of digital
technologies and creating opportunities for scale VISION Policy background 16 Barriers and challenges It is an unusual,
and perhaps even unique, time to have so many emerging forces, all rapidly evolving, technology-centric and each already impacting business so strongly.
performance and competition. This is an opportunity for digital technologies to truly help elevate business performance
Governments and policy makers are recognising the important role of digital in the economy and efforts are being made to foster digital entrepreneurship.
However, despite these efforts, there are still many barriers and challenges that can stand in the way of doing business in the digital
age. Understanding and anticipating these barriers and challenges is important when establishing the policy background for digital entrepreneurship
Pillar 1 †Increase industry digital transformation In order to increase the take-up of digital technologies and intensify the digitisation process in
Europe†s economy, one has to realise that the way of doing business in the digital age differs
Business & Administrative Services Utilities Basic Manufacturing Chemicals Trade & Retail Equipment & Machinery Automotive
different business models face very different questions as different business functions will find themselves more or less exposed to digital disruption.
Business & Administrative Services Utilities Media & Telecommunications Consumer goods Transportation & Logistics Chemicals Construction Basic Manufacturing
Services & Insurance) to-12 points (Real estate, Rental & Leasing ï§As illustrated in Figure 7,
and services have moved forward more quickly in digitising their procurement processes, processing dimension, output contact with customers and infrastructure
Based on all of the above, policy makers should take into account the differences at both industry and business function level
real challenges in meeting the demand for new products and services in the age of digitisation
environment for the old-line ICT service providers, new business models are emerging, as are new modes of innovation. †(Booz&co, 2012
Business & Administrative Services Utilities Basic Manufacturing Chemicals Trade & Retail Equipment & Machinery Automotive
In this respect, cooperation between the demand and supply side is crucial to accelerate the transformation of Europe into a competitive place for doing business through the smart use of
However, the extent to which enterprises currently cooperate differs considerably across Member States and industries and will be an additional barrier policy makers
%whilst the remaining enterprises relied solely on internal resources (see Figure 9 Figure 9 †Enterprises cooperating with suppliers of equipment, materials, components or software
%of total innovative enterprises Source: European commission (2011. Science, Technology and innovation in Europe; Deloitte analysis
Pillar 2 †Create a digital entrepreneurial culture Small and medium-sized enterprises depend highly on entrepreneurs-individuals who have the
ideas and are willing to take the risks necessary to get a business off the ground.
Nevertheless, the stigma attached to a failed entrepreneurial venture, the heavy administrative burdens, the social constraints
7 Defined by the European commission as enterprises with innovation activity, i e. product, process, ongoing or
which enterprises currently cooperate differs across Member States 21 According to the 2012 Eurobarometer Survey on Entrepreneurship, which examines the
motivation, choices, experiences and obstacles linked to self employment, and compares European opinions with those outside of Europe, people all over the world agree that
and that they develop new products and services from which the whole of society benefits
entrepreneurship is regarded very highly in Denmark, Ireland and Finland, with 74%,68%and 67%respectively of citizens questioned having a favourable image
Entrepreneurship in the EU and beyond; Deloitte analysis Additionally, there is too often a stigma attached to failure in the EU. According to Figure 11,50
and Scandinavian countries †countries which also have a positive image of entrepreneurship †are more likely to start-up a business even
wrong and positively changing the perception of digital entrepreneurship into a desirable †and reasonable †career choice.
entrepreneurs to offer new tools and services in the digital market. It should empower EU
businesses and citizens to exploit the opportunities provided by digital technologies more intensively than is currently possible
Entrepreneurship in the EU and beyond; Deloitte analysis However, it must be remembered that not all European citizens are born natural entrepreneurs
creating an enterprise and jobs is necessary as well. In this respect, actions can be initiated to encourage and facilitate networking
other start-ups and stakeholders in that city, but to adjacent cities and to the entire country as
services within existing enterprises, as well as to leverage valuable skills of senior workforce and immigrants LT ITMTPT SIRO HU EU27US
and innovation-driven economy will have a clear dependence on technology, high-tech skills and human capital are required arguably also for
successfully doing business in the digital age Today most jobs already require some kind of computer related knowledge.
Doing business in the digital age will require enterprises to have access to a specific and scarce
In its †Communication on e-Skills for the 21st Century and the Digital Agenda for
New competences and jobs for a greener and smarter economy 10 IDC (2009. Post crisis: e-Skills are needed to drive Europe†s Innovation Society
enterprises and higher education in order to shape the curriculum and skills required for success Although there are some examples of successful cooperation between higher education and
enterprises and higher education can be found in Finland with a cooperation degree of 28 %followed by Slovenia (23%)and Austria (20%.
Eastern europe as in those Member States less than 10%of all enterprises with NACE activities related to innovation, currently cooperate with universities or other higher education bodies
Table 3 †Enterprise cooperation with universities or other higher education bodies(%of innovative enterprises Source:
services Wholesale trade Retail trade Transportatio n & storage Accommo -dation & food Information &
businesses, an entrepreneurial mind-set is lacking in Europe as entrepreneurship is too often not
According to the 2012 Eurobarometer Survey on Entrepreneurship, illustrated in Figure 13,50 %of EU respondents agreed that their school education helped them to develop a sense of
In Europe, entrepreneurship is too often not embedded in education and training provision Entrepreneurial education:
entrepreneurship in an exemplary way. Primary and secondary schools offer entrepreneurship classes, students are given the chance to participate in businesslike projects and numerous
teachers are trained to pass on entrepreneurial skills. As a result, 44%of young people in the
/In Denmark, the Foundation for Entrepreneurship-Young Enterprise aims to strengthen Denmarkâ's competitiveness and to position the country as one of the most leading European
countries with regard to intrapreneur-and entrepreneurship. By influencing the interest in entrepreneurship, independence, and innovation at all levels of the Danish education system
the foundation aims to develop more competent pupils and students, hopefully starting up their own business one day
Despite this gain, too little action is being taken by Member States to promote entrepreneurship as a desirable career path upon graduation and when entering the job market.
-set and aspirations towards entrepreneurship are crucial to achieving this and can be supported by promoting internships
conversion of ideas into enterprises. The Entrepreneur First initiative for example-a not-for-profit programme launched by the UK Prime minister in March 2011-is a two-year programme which
gives university graduates with promising business ideas the opportunity to start a business supported by corporate mentoring,
business training and networking. It differs from most other start-up programs by helping to create teams of like-minded individuals with participants selected
that supporting a change in mind-set towards entrepreneurship should not be limited to formal education and training settings only,
and support services targeted at the needs of adults too 28 Figure 13 †Entrepreneurship and the educational system:
EU versus US Source: European commission (2012. Entrepreneurship in the EU and beyond; Deloitte analysis Statistics on the number of ICT graduates in the EU are showing that, though their number
increased from 71,000 per year in 2000 to 127,000 in 2006, it decreased in the following years
national economies. The Singapore Entrepass is geared especially towards entrepreneurs who might not pass the severe visa requirements regarding education and salary.
an investment of at least S$50k (equivalent to ca. â 30k) is required and a 10-page business plan must be submitted.
In the UK, the Entrepreneurs†Visa was introduced in April 2011 to attract foreign, high-qualified talent to start up their business.
has benefitted traditionally from large immigrant communities as in the US 24%of all enterprises are founded by immigrants.
"Moreover, the Entrepreneurship 2020 Action Plan14 proposes to consider initiatives which would remove barriers to entrepreneurship,
be it among migrants already present in the EU or arriving for reasons other than setting up business.
opportunity of giving qualified third-country entrepreneurs a permit to allow them to set up a
identify job opportunities or set up a business upon completion of their studies or research. 15 A
coordinated reaction, with Member States and other stakeholders at its centre, however, needs to be strengthened further and further developed
Entrepreneurship 2020 Action Plan: reigniting the entrepreneurial spirit in Europe 15 COM (2013) 151 final.
and enhance investments Finance is crucial to business success and an important factor for economic growth in Europe
especially in view of any past or future economic crisis At European level, finance is provided by a balanced mix of financing mechanisms:
through structural funds, the Competitiveness and Innovation Framework Programme, Progress Microfinance as well as lending from the European Investment Bank.
This financial support is complementing finance provided by the Member States, such as'export loans'in Sweden
-tech enterprises in their seed phase and to contribute to the creation of highly-skilled jobs, or
finance, the Seed Enterprise Investment Scheme (SEIS) was created in the UK. To be eligible, a
business receiving the investment must be a UK resident unquoted company, less than two years old, have fewer than 25 employees
16 After finding customers, cited by 24%business managers 17 European commission-DG Enterprise and Industry (2011.
SMES'Access to Finance. Survey 2011 In the European union, access to finance is the second most pressing problem faced by
The legal and regulatory framework currently leaves too much opportunity for fragmentation and does not always take into account new and alternative financing sources like
like crowdfunding platforms cannot be neglected Figure 14 shows that the amount raised globally by crowdfunding platforms in 2012 equals â 2. 2
billion, almost twice the amount raised in 2011 (â 1. 1 billion), and successfully funded more than
In Europe, the amounts raised by crowdfunding platforms grew 65%to â 0. 7 billion.
For 2013, Massolution forecasts an increase in global crowdfunding volumes up to â 3. 9 billion18
Figure 14 †Amount raised by crowdfunding platforms (â billions Source: World Economic Forum (2012), Crowdsourcing. org & Massolution;
Innovative and growth-oriented SMES and entrepreneurs often depend on capital from external sources as they do not have their own resources
start-ups, crowdfunding might be one of the solutions for restoring capital to entrepreneurs and SMES
crowdfundingâ€, crowdfunding can not only provide start-up capital for SMES and entrepreneurs, it includes several nonfinancial benefits:
validation of product features, market segmentation, price and demand, pre-sales and customer feedback as well as word-of-mouth marketing and a stable
committed shareholding structure Although the European commission issued an action plan to improve access to finance for
SMES in 201119, it did not include crowdfunding as an alternative, viable option for finance. As crowdfunding is continuing to boom,
Member States are taking different actions, resulting in a European legal and regulatory framework leaving too much opportunity for fragmentation and
18 Massolution (2013. The crowdfunding industry report 19 European commission (2011. An action plan to improve access to finance for SMES
2013 (est.)2012 2. 2 2011 1. 1 2010 0. 7 2009 0. 4 3. 9
The amounts raised by crowdfunding platforms are growing significantly 32 making it difficult to access finance across borders.
The Prospectus Directive20, for instance offers freedom to Member States to implement a country-specific promotional regime for
crowdfunding campaigns and has resulted in many different national regimes ranging from full prospectus regimes to complete exemptions.
-General Enterprise and Industry working on cross-border matching of innovative firms with suitable investors, argued that the â€oefragmented European regulatory environment along national
lines for cross border platforms are among the emerging challenges which pose issues for entrepreneurs, platform providers and investors alike†21
To avoid a fragmented European regulatory environment the European commission is, amongst others, currently taking actions aimed at monitoring the various initiatives already been put in
place by organising workshops with European stakeholders and regulators and by networking with U s. counterparts in the realm of the TEC Council22.
Additionally, the Entrepreneurship 2020 Action Plan on Entrepreneurship invites Member States to assess the need of amending current
national financial legislation with the aim of facilitating new, alternative forms of financing for start-ups and SMES in general and crowdfunding platforms in particular.
Furthermore, the Green Paper on long term investment23 has formulated a specific question on crowdfunding, aimed at
receiving different views on this topic and reviewing the impact on regulation. Also, the 2013
Commission Staff Working Document'Strengthening the environment for Web entrepreneurs in the EU'24 proposes an action with regard to venture capital
and crowdfunding, aiming at supporting a network of European crowdfunding platforms to support, provide visibility
transparency and interconnectivity among existing EU crowdfunding platforms Looking at access to equity financing, the 2011 EU survey †SMES€ Access to Finance†states that
equity finance was used by only 7%of SMES, concluding that the main challenge to increasing
this percentage is to overcome the lack of readiness to invest or financial knowledge. Only 16
and venture capital firms, compared to 63%when talking with banks. In this respect, the 2012 report †A framework for European
20 Directive designed to improve the quality of information provided to investors by companies wishing to raise capital in
Green paper on long-term financing of the European economy 24 European commission (2013. Strengthening the environment for Web entrepreneurs in the EU
Lack of information and financial knowledge is for some SMES and entrepreneurs a barrier to
crowdfunding†indicates that SMES often fail to attract venture capital finance as a result of information asymmetry between entrepreneurs and investors
Generally, central and northern economies are more digitised and those economies lead Eastern and Southern Europe in all but one industry (†real estate, rental & leasingâ€.
The gaps between regions tend to be the largest in Europe†s traditional, non-service oriented economies like
†chemicals†and †basic manufacturingâ€. Given the link between the extent of digitisation in a
market in Europe as the European business landscape is a patchwork of national economies and
Business & Administrative Services Transportation & Logistics Consumer goods Real estate, Rental & Leasing Construction Hotel & Restaurants
Figure 16 illustrates that the current level of cooperation between enterprises from different Member States (MS), EFTA countries and EU candidate Member States is limited rather, ranging
states in its communication on clusters in the European Union25 that â€oepersistent market fragmentation, weak industry-research linkages and insufficient cooperation within the EU€ mean
and face global competition. In this respect the European†s Commission statement26 that weaknesses in standard-setting, cross-border regulation and legislation and
Figure 16 †Enterprises engaged in any type of innovation co-operation with a partner in EU
enterprises from different MS EFTA countries and EU candidate MS is rather limited 36 Options for policy action
small and medium enterprises. The evidence that supports greater use of ICT by businesses in
Small and medium-sized enterprises (SMES) that are intensive users of technology not only grow and export more than their peers,
ï§Difficult access to finance and investments ï§Fragmented digital market By not tackling these stumbling blocks, policymakers not only compromise the economic
stakeholders-industry, academics and European policy makers The policy actions developed to overcome the challenges and to achieve the objectives â€
benchmark analysis of existing schemes and policies to boost digital entrepreneurship To understand what actions can be initiated both by public and private sector in order to boost
digital entrepreneurship, digital and entrepreneurial policies and schemes across five countries regions or cities were assessed in a benchmark analysis27
According to this analysis digital entrepreneurship is in most cases determined by a combination of key factors †illustrated in Figure 18
-which not always directly can be influenced by policy makers. Therefore, one should take into account that â€oeendowing European citizens with an
entrepreneurial mind-set†and â€oedeveloping a truly digital entrepreneurial cultureâ€, cannot be achieved solely by policy making
In Sweden, for instance, for a long time entrepreneurship was not something †admirable†However, by the end of the 1990s, the success of a number of start-ups had a profound effect on
entrepreneurship and helped break the stigma Swedish society associated with start-ups. As a result, entrepreneurship became †hot†in Sweden with digital icons such as Niklas Zennstrã m
Skype) and Daniel Ek (Spotify) putting entrepreneurial success in the picture and promoting entrepreneurship as a desirable career choice.
At European level, however, limited action is currently taken to celebrate those success stories or to strengthen awareness campaigns more
landscape-Benchmark analysis. See also annex 38 Figure 18 †Overview of key success factors boosting digital entrepreneurship
Source: Deloitte benchmarking analysis As there is no one single factor able to explain the success of digital entrepreneurship in a
particular country, region or city, neither there is one single answer on which role policy makers should play in order to encourage entrepreneurship
and create a successful start-up ecosystem As illustrated in Figure 19, policy makers can approach digital entrepreneurship in three different
ways, i e.:a hands-on, hidden hand or hands-off approach Figure 19 †Potential role of policy makers
Market scalability Very high High Private sector role Mind-set and ambition Swedenunited Kingdom Berlinsilicon Valley
ï§Entrepreneurship and a start up culture have been accelerated by sometimes unintended non -market actions ï§Examples:
investments ï§Applicable to: Silicon valley & Sweden Hands-off ï§Emerged organically ï§Little active and direct government
EXHIBIT †KEY FINDINGS BENCHMARK ANALYSIS Silicon valley ï§Silicon valley emerged organically as a start-up ecosystem with little deliberate public
the U k. to emerge as a leading centre in the new high tech economy and to be the best
ï§The Singapore government has always been eager to seek for new growth opportunities ï§To capture the potential of (digital) technologies
that provides opportunities for local and foreign start-ups, investors, venture capitalists and talent, several agencies and initiatives were put in place to actively promote and
information, services and support from 30 different government ministries and public organisations and aiming to be the first point of contact for SMES and start-ups
ï§Entrepreneurship and the start-up culture in Sweden have been accelerated by government's philosophy to have world-class broadband,
infrastructure investments ï§This has resulted in a tech savvy population (engineering background), eager to adopt
new technologies and Sweden being connected the most economy in the World ï§Role models and big exits were â€
ï§Due to †limited†internal market opportunities, Sweden is considered often as an excellent test market
ï§Additionally, these internal scalability constraints make Swedish entrepreneurs to think international and outward looking as from the very beginning
ï§Entrepreneurship is supported by several agencies; although direct involvement is rather limited Berlin ï§Because of a low cost of living and a lot of office space available, many young
focusing on market scalability ï§Direct and active government involvement †both at federal and state level †is rather
investments in education, research and innovation-sustainable, thanks to a decisive move towards a low-carbon economy,
and inclusive, with a strong emphasis on job creation and poverty reduction Looking at education in particular,
ï§Providing more opportunities for students to gain additional skills through study or training abroad,
communication gives particular attention to combatting youth unemployment, covering four areas which are defined as essential to be addressed
Strategy †firmly recognises the revolutionary potential that information and communication technology (ICT) offers to boost growth, increase productivity
domains to stimulate a virtuous circle of investment in and usage of digital technologies 1. Digital single market
communication on e-commerce and other online services in January 2012, containing 16 actions aimed at identifying the main obstacles to the Digital Single Market an doubling the volume of e
ï§Integrating technological developments such as cloud computing, communication on radio spectrum sharing, guidelines on state aids on broadband, etc
opportunities, the European Digital Agenda was reviewed in December 2012. This review identifies seven key areas,
-discrimination and wholesale pricing to promote investments in high-speed networks and strengthen competition across all networks
4. For cloud computing, the Commission will launch pilot actions in the European Cloud Partnership, harnessing public buying power to help create the world's largest cloud
6. For Entrepreneurship, Digital jobs and Skills, the European commission launched on 4 march 2013 the'Grand Coalition for Digital Jobs'to address the shortage of ICT
micro-and nano-electronics, to increase Europe's attractiveness for investment in design and production as well as growing its global market share
economy. According to the European commission, full implementation of the updated Digital Agenda would enhance growth with a 5%expected increase of European GDP by 2020
infrastructure construction in the short term, rising to 3. 8 million jobs throughout the economy in
5. More efficient European transport, energy and communication infrastructure and services to serve European industry
6. A new strategy on raw materials creating the right framework conditions for sustainable supply and management of domestic primary raw materials
1. Investment in innovation-providing the right framework conditions for investment 45 2. Better market conditions †improvements in the functioning of the Internal Market and
3. Access to finance and capital †to improve lending to the real economy by better
4. Human capital and skills †equipping the labour force for industrial transformations notably by better anticipating skills needs and mismatches
The Entrepreneurship Action Plan is a blueprint for decisive action to unleash Europe's entrepreneurial potential, to remove existing obstacles
entrepreneurship in Europe The Entrepreneurship Action Plan proposes three areas for immediate intervention 1. Entrepreneurial education and training to support growth and business creation
2. Strengthening framework conditions for entrepreneurs by taking actions in six areas ï§Access to finance
ï§Unleashing new business opportunities in the digital age ï§Transfers of businesses ï§Bankruptcy procedures and second chances for honest entrepreneurs
3. Making the culture of entrepreneurship in Europe more dynamic by nurturing the new generation of entrepreneurs
Digital technologies create new business opportunities for entrepreneurs. As indicated in the Commission Industrial Policy Communication,"entrepreneurs need to exploit the full potential of
the digital single market in the EU that is expected to grow by 10%a year up to 2016".32 In this
the potential of those technologies, both in terms of supply of new digital products and services and in terms of demand and smart use of these technologies by a o. launching the Digital
Agenda and the Industrial policy flagship initiatives. In addition to those initiatives, a number of specific actions are taken within the Entrepreneurship 2020 Action Plan to enhance trust towards
online trade, i e ï§Foster the knowledge base on major market trends and innovative business models ï§Raise awareness through a Europe-wide information campaign for entrepreneurs and
SMES on the benefits from the new digital evolutions 32 European commission (2012. A Stronger European Industry for Growth and Economic Recovery.
Communication Update 46 ï§Facilitate networking to spark and support new business ideas ï§Launch specific actions for web entrepreneurs
political will to recognise the central role of SMES in the EU economy. It puts into place a
and to improve the overall approach to entrepreneurship 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. Anchor the'Think Small First'principle in policy making, i e. listening to SMES before introducing new laws
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 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 market growth Between 2008 and 2010, Member States achieved good results in boosting entrepreneurship
and promoting SMES as shown by the following examples relating to the first principle †promoting
ï§Entrepreneurship programmes were introduced to foster the entrepreneurial attitudes and skills of young people and to make them aware of the possibility of starting an
enterprise ï§In Member States such as Denmark, The netherlands, Sweden and the UK entrepreneurship education became the object of a coherent national strategy
ï§Some Member States are involved in national or European programmes encouraging female entrepreneurship To encourage Member States to step up their efforts to promote
and support entrepreneurship and SMES, a review of the SBA was initiated in February 2011. In order to reflect current
economic developments, bring the SBA into alignment with the priorities of the Europe 2020 47
strategy and continuously improve the business environment for SMES, the review proposes further action in four priority areas
wherever possible, exempting micro-enterprises from EU legislation or introducing special regimes so as to minimise the regulatory burden
overall EU economy. Its goal is to improve the effectiveness of public SME policies in fostering
needs of enterprises. Starting from raising general ICT awareness and financing basic ICT investments and internet connectivity, e-business policies have matured towards personalised e
-business coaching, and more recently towards a more holistic, sector oriented, policy approach promoting smart use of ICT and the integration of SMES in industrial value chains
connect better to larger enterprises and become fully integrated international business partners This initiative consists of a series of industry-specific demonstration actions (in the automotive
would help link SMES to larger enterprises in an efficient way. While the focus of these actions is
on smaller enterprises, the ultimate beneficiary is the entire European economy The first results are remarkable.
management, error-free communication and demand-driven production, but also in better services to customers, new market opportunities and better time to market.
In the actions completed already, there are good prospects for mass market adoption through sound industry
This communication outlines a policy framework for better complementarities and synergies between the different policy levels with a view to supporting the development of more â€oeworld
which target digital entrepreneurship and aim to contribute to the realisation of EU€ s ambition to accelerate the transformation of the
This section looks into options for policy action in all industries and sectors of the economy as
and enhance investments 5. Pillar 5 †Boost digitally powered single market This list of policy actions is the result of in depth research
insights gained during numerous interviews and workshops with key stakeholders from both private and public sectors. Some options for policy action build further upon
the economy, some differences are observed in the degree of digital transformation among traditional businesses and SMES or start-ups.
of industrial sectors is important for the increase of actual entrepreneurship related to digital applications. This type of platform should bring together stakeholders with hands-on experience
in their field of specialisation as well as entrepreneurs with specific ideas about opportunities fostering digital applications into sectors less digitally transformed
ACTION 2 †Reinforcing existing industry clusters Reinforcing existing industry clusters in the EU by integrating more ICT dynamics and
ï§Build further on the Commission's communication entitled †Towards world-class clusters in the European union:
a fertile business environment for companies, especially SMES, to collaborate with research institutions, suppliers, customers and competitors located in the same geographical area
The EU does not lack clusters, but needs more world-class excellence. There are a growing
connection of smaller enterprises to the digital market (e g. for tourism, automotive construction, healthcare, etc.
ï§It is supposed that private partners are to be key stakeholders ï§Take into account issues concerning market distortion and competition
ï§Organise digital contests for the development of apps in specific sectors Owner: â'European commission â'Member States â'Private partners
present and promote business models, best practices and information about specific know-how on applications that can be developed
ACTION 4 †Awareness campaign on digital entrepreneurship Launch an awareness campaign on digital entrepreneurship to identify
and promote European digital icons, serial entrepreneurs, intrapreneurs and success stories. Share industry specific success stories and innovative development
Description ï§Identification of digital icons, serial entrepreneurs, intrapreneurs and success stories throughout the European union
ï§Organisation of yearly events on entrepreneurship targeting digital entrepreneurship ï§Promotion of awareness campaigns through
-An EU-wide portal with information on entrepreneurial events across Member States -Launch initiatives to make local events available for every European citizen
schemes or celebrate success stories in the field of digital entrepreneurship. In this respect action should also be taken to tackle the mismatch between measures or initiatives already in
Create industry specific digital entrepreneurship mentoring and networking platforms to which experts from various industries can subscribe as a mentor (cfr.
the action and the creation of awareness involving local stakeholders ï§Initiative events at European level at which mentors can exchange experiences and
fostering a more entrepreneurial environment. Sharing information about new technologies success stories of fostering digital entrepreneurship, available skills and experts in the market
2 Impact: MEDIUM Effort: LOW-MEDIUM 2 Impact: MEDIUM Effort: MEDIUM 53 are all very important.
and digitally-minded entrepreneurs and existing enterprises in any other sector Description ï§Leverage the existing †Erasmus for Young Entrepreneurs†exchange programme to
encourage exchanges and new business ventures between young and digitally -minded entrepreneurs and existing enterprises in any other sector
ï§Encourage the applications for exchanges of young entrepreneurs or talented graduates in companies which apply digital applications
enterprises and sectors ACTION 7 †Open data initiatives Connect to the Commission†s open data initiatives
data for the creation of new business opportunities and services Description ï§Leveraging and connecting to the EU Open Data Strategy for Europe, initiated in 2011
-The Open data challenge, Europe†s biggest open data competition ï§Encourage European entrepreneurs to access
data and transform it into innovative products or services ï§Feature best practices in order to attract more data, both from public authorities and
licences, has the potential to create enormous business opportunities. However, companies and entrepreneurs using open data need to be nurtured
ACTION 8 †Embedding entrepreneurship in education Strengthen the development of the European reference framework on embedding
entrepreneurship in education (especially in the fields of science, technology, engineering and mathematics) listing best practices and providing Member States with recommendations on
ï§Strengthen the ongoing development of policy guidance on entrepreneurship education, announced in the Rethinking Education Communication and providing
rationale, advice and practical examples to policy makers on why and how to effectively embed entrepreneurship education across education and training systems
ï§Supporting schools to incorporate entrepreneurship in their curriculum e g. distribution of teaching materials, funding of pilots, promotion of best practices through various
channels and promotion of partnerships with businesses ï§Introduction of specific topics on entrepreneurship in the curricula of universities and
colleges e g. enhance business games or competitions where scholars are encouraged to start a mini-business
ï§Provision of training and awareness sessions for teachers on entrepreneurship. Build awareness amongst heads of schools, through targeted information sessions, to
ensure that time and resources are freed up to follow these sessions Owner: â'European commission â'Member States â'Private partners
referring to lagging-behind other economies (primarily the US) in applying science into marketable technological applications.
the universities and colleges up-to-date in a fast-growing technological environment is a prerequisite for graduates with a good †match†to the evolving needs of the labour market
embed entrepreneurship into education. This can involve the introduction of entrepreneurship subjects in the curriculum not only of universities and colleges but also of schools, at the same
time, updating the knowledge of teachers with respect to entrepreneurship and the educational approach to entrepreneurship in secondary education
Entrepreneurs are finding it harder and harder to source staff possessing the right high-tech skills
e-skills and e-leadership skills) and with the right entrepreneurial attitude. All in all, it is crucial to
ï§Promoting entrepreneurship as a desirable career path in the EU by offering students and graduates alternatives to the classic route (i e. working at †traditional†companies
steps†of recent graduates or young potential entrepreneurs can boost entrepreneurship. The role of universities and colleges, on the one hand,
key in promoting entrepreneurship 3 Impact: LOW Effort: LOW 56 ACTION 10 †Europe Entrepreneurs†Visa Act
-up capital, type of business, controlling interest, business plan requirements, etc. in order to guarantee a certain level of harmonisation across Member States
A future'Europe Entrepreneurs†Visa Act†should target entrepreneurs founding an enterprise and willing to hire non-European highly skilled employees and non-European graduates from
to the next level or make them more targeted for digital entrepreneurship ACTION 13 †Promote use of existing financial instruments
Horizon2020, the European Investment Fund, JEREMIE (Joint European Resources for Micro to medium Enterprises) and JASMINE (Joint Action to Support Micro-finance Institutions in
Europe) regional funds and the EU programme for the Competitiveness of enterprises and SMES (COSME
Description ï§Strengthen the Your Europe-finance and support-web portal as single point of information on existing financial instruments for entrepreneurs
environment of potential entrepreneurs or young talented graduates who do not necessarily have a full †picture†of the available options
Share, promote and support best practices on tax incentives for digital entrepreneurship to encourage more people to reinvest their gains in the digital business (cfr.
Enterprise Investment Scheme in UK Description ï§Consider the case for a capital gains tax rollover relief for shares in order to attract
in order to facilitate cross border investments in digital businesses ï§Tax relief systems can combine income tax relief for individuals who subscribe for
ï§â€ with a capital gains re-investment relief system in which an asset which would give
ï§Organise a communication and dissemination campaign promoting the new initiatives for a single market for intellectual property rights
ACTION 16 †Harmonisation of crowdfunding policies Harmonisation of the single market with regards to crowdfunding by listing various national
crowdfunding policy frameworks and providing an overarching European policy structure in order to harmonise national regulations and policies
Description ï§Carry out a study on the various crowdfunding policy frameworks in the Member States
ï§Develop an overarching European policy structure in order to harmonise national regulations and policies ï§Reduce the administrative burden for crowdfunding platforms,
simplifying the licensing requirements for these platforms ï§Develop awareness campaigns among stakeholders and decision makers for the
opportunities of crowdfunding ï§Support research on the impact of new forms of funding for entrepreneurs
ï§Use the success of crowdfunding as an example of how digital technologies can impact business models
4 Impact: LOW Effort: MEDIUM 4 Impact: LOW Effort: MEDIUM 60 Owner: â'European commission â'Member States â Private partners
Getting access to early-stage growth capital remains one of the challenges facing young entrepreneurs.
Crowdfunding provides a response to this challenge. Crowdfunding is offered in different Member States, but different rules and conditions apply in the different Member States
making it difficult to provide a harmonised environment in this respect for all digital entrepreneurs independently of the Member State in which they operate.
Taking action to harmonise the different rules and conditions among the Member States will also provide an environment
promoting cross-border collaboration The digital industry should be able to benefit from the EU single market environment.
However there are a number of challenges and barriers hindering this, such as language barriers, barriers for doing business across Member State borders,
opportunities of the single market ACTION 17 †Monitor the evolution of digital entrepreneurship Establish a digital entrepreneurship scorecard and monitor the evolution of digital
entrepreneurship across Member States: perceptions and aspirations towards digital entrepreneurship, the quantity and quality of digital and e-leadership skills, entrepreneurial
talent, access to finance, etc Description ï§Develop a monitoring mechanism to follow-up and measure in a systematic way the
evolution of key trends in digital entrepreneurship, including -Emerging technological trends and their potential impact on business and new
business opportunities -The evolution of the digital entrepreneurial culture, the perception of and expectations from digital entrepreneurship
-The take-up of digitisation across industries and the evolution of digital skills, e -leadership skills and talent across Europe
-Emerging market needs, new business paradigms and their impact on the European economy ï§Develop a scorecard with indicators for monitoring the key aspects across Europe
ï§Create a digital interactive platform in order to publish the results ï§Use the platform as a knowledge sharing instrument between digital entrepreneurs
industries, science and politics Owner: â'European commission â'Member States â'Private partners Digital entrepreneurship is developing fast
and will continue to do so in the decades to come The needs of the companies in this sector are also growing quickly along with the rapid
entrepreneurship landscape is going to be crucial. This need for monitoring will be important not only in order to develop a †picture†of the relevant industrial activities but also, for policy-makers
covers the services sector only ï§Increase the digital transaction capabilities of the PSCS in order to transform them into
33 The Services Directive aims to improve the ease of doing business in the European union.
or perform temporary services in the EU/EEA area The Directive obliges Member States to eliminate unnecessary bureaucracy,
the private sector to foster digital entrepreneurship and do business in the digital age Description
digital entrepreneurship, comprising DG Enterprise, DG Connect, DG Market, DG EAC, DG RTD, different NGO€ s, the Member States and private sector organisations
the preparation and implementation of new initiatives across domains and services Owner: â'European commission â Member States â Private partners
which are focusing on fostering digital entrepreneurship and doing business in the digital age ACTION 20 †Explore possibilities to develop multilingual solutions
ï§Explore possibilities of support programmes for translation services for SMES (tax incentives, grants†ï§Support multilingualism in campaigns, information sharing and platforms for (digital
ï§Support the development of standards for services and products for digital entrepreneurs in order to facilitate
or obtain language services at low cost The existent language barriers can be significant for small companies that need to hire people
PCP) and Public Procurement of Innovation (PPI) initiated by DG Enterprise and Industry ï§Community development, raising of awareness, capability development and mutual
investment and maintenance costs Here, in order to estimate effort to implement policy actions, in a qualitative way, the time needed
entrepreneurship culture, have, in general, a relatively high estimated impact Potential Impact Pillar 1: Increase industry digital transformation
and enhance investments Pillar 5: Boost digitally powered Single Market Low Medium High Lo w
Strategic investment projectsquick Wins Options for policy action 1 European Digital Innovation campaigns 2 Reinforcing existing industry clusters
8 Embedding entrepreneurship in education 9 Encourage students and graduates to start adigital start-up 10 Europe Entrepreneurial Visa Act
16 Harmonisation of crowdfunding policies 17 Monitor the evolution of digital entrepreneurship 18 Leverage the national †Points of Single Contactâ€
19 Monitoring, coordinating and leveraging differentdg actions 20 Explore possibilities to develop multilingualsolutions 21 Facilitation of public procurement of digitalinnovations developed by SMES
Tactical investment projects 65 A handful of policy actions, e g. policy actions 2, 4, 7, 13 and 18 can be implemented with
investment projects and require time and or bear a significant cost (high implementation effort but are expected to have a high impact on the economy.
These projects are described in Table 5 Table 5 †Strategic investment projects Objective Action Description
Pillar 1 Increase industry digital transformation 2) Reinforcing existing industry clusters Reinforcing existing industry clusters in the EU by integrating more ICT dynamics and
entrepreneurship Launch an awareness campaign on digital entrepreneurship to identify and promote European digital icons, serial entrepreneurs, intrapreneurs and success stories.
Share industry specific success stories and innovative development 7) Open data initiatives Connect to the Commission†s open data initiatives
in order to stimulate the use of open public data for the creation of new business opportunities and services
Pillar 4 Ease the access to finance and enhance investments 13) Promote use of existing financial
instruments Promote the use of existing European financial instruments and initiatives such as Horizon2020, the European Investment Fund, JEREMIE (Joint European Resources for
Micro to medium Enterprises) and JASMINE (Joint Action to Support Micro-finance Institutions in Europe) regional funds and the EU programme for the Competitiveness of
enterprises and SMES (COSME Pillar 5 Boost digitally powered Single Market 18) Leverage the national Points of
Single Contact Leverage and create awareness on the national Points of Single Contact, resulting from
Create industry specific digital entrepreneurship mentoring and networking platforms to which experts from various industries can subscribe as a mentor (cfr.
entrepreneurship in education Strengthen the development of the European reference framework on embedding entrepreneurship in education (especially in the fields of science, technology
engineering and mathematics) listing best practices and providing Member States with recommendations on how this framework should be translated into national policies
investments 14) Tax incentives for a capital gains tax rollover relief for shares Share, promote and support best practices on tax incentives for digital entrepreneurship
to encourage more people to reinvest their gains in the digital business (cfr. SEIS the
Seed Enterprise Investment Scheme in UK Pillar 5 Boost digitally powered Single Market 21) Facilitation of
Table 6 †Tactical investment projects As a final remark, it is important to note that the true impact will only be realised when delivering
connection of smaller enterprises to the digital market (e g. for tourism, automotive construction, healthcare, etc.
young and digitally-minded entrepreneurs and existing enterprises in any other sector Pillar 3 Attract, develop &
investments 15) Implementation of the European Intellectual Property framework Accelerate the implementation of the European Intellectual Property framework,
crowdfunding policies Harmonisation of the single market with regards to crowdfunding by listing various national crowdfunding policy frameworks and providing an overarching European policy
structure in order to harmonise national regulations and policies Pillar 5 Boost digitally powered Single Market 17) Monitor the
evolution of digital entrepreneurship Establish a digital entrepreneurship scorecard and monitor the evolution of digital
entrepreneurship across Member States: perceptions and aspirations towards digital entrepreneurship, the quantity and quality of digital and e-leadership skills
entrepreneurial talent, access to finance, etc 19) Monitoring coordinating and leveraging different DG actions Set up a strategic policy group at the European level monitoring, coordinating and
leveraging the different actions currently being taken at the different DGS, NGOS Member States and in the private sector to foster digital entrepreneurship and do
business in the digital age 20) Explore possibilities to develop multilingual solutions In collaboration with private partners, explore the possibilities of developing powerful
European digital translation solutions for (digital) businesses 67 Conclusion Putting all the pieces together, this report
businesses, but also open up opportunities for new companies in new industries. With a European economy, consisting of more than
60%of traditional, service-orientated companies, there is a huge potential to be leveraged The future of doing business in the digital
and medium enterprises. It has been demonstrated that intensive use of ICT by businesses in different sectors and across
digital in the economy and efforts are being made to foster digital entrepreneurship However, despite these efforts, there are still
many barriers and challenges that can stand in the way of doing business in the digital
entrepreneurship. These barriers have been identified according to five different pillars ï Low take-up and use of digital
investments ï Fragmented digital market 68 To turn ambitions from vision to reality, bold policy reforms are needed for Europe to
environment designed for the analogue era In this study, for each of the problem areas objectives have been defined and a list of
set of †quick winsâ€, †strategic investment and †tactical investments†projects were identified Embedding digital innovators in existing
campaigns on digital entrepreneurship, the use of open data, promotion of existing financial instruments and leveraging the
promotion of an entrepreneurship culture have estimated the highest impact As the process of digitisation evolves and
DG Enterprise and Industry †Policy Officer iordana. Eleftheriadou@ec. europa. eu Christian Combes Deloitte Consulting †Partner
Entrepreneurship 2020 Action Plan: reigniting the entrepreneurial spirit in Europe -COM (2012) 750. Annual Growth Survey 2013
A Framework for European Crowdfunding -Empirica Gmbh & IDC Government Insights (2013. e-Skills for Competitiveness and
Entrepreneurship 2020 Action Plan. Reigniting the entrepreneurial spirit in Europe -European commission (2013. European Semester 2013 Thematic Fiche-Digital Agenda
Green paper on long-term financing of the European economy -European commission (2013. Strengthening the environment for Web entrepreneurs in the
EU -European commission (2012. A Stronger European Industry for Growth and Economic Recovery. Industrial Policy Communication Update
-European commission (2012. Exploiting the employment potential of ICTS -European commission (2012. Jobs for Europe: The Employment policy Conference
regulation to the needs of micro-enterprises -European commission (2011. Science, technology and innovation in Europe
-European commission-DG Enterprise and Industry (2011. e-Skills for the 21st Century -European commission-DG Enterprise and Industry (2011.
SMES'Access to Finance Survey 2011 -European commission (2010. Entrepreneurship in the EU and beyond -European commission (2010.
A Digital Agenda for Europe -European commission (2010. Europe 2020. A strategy for smart, sustainable and inclusive
) The crowdfunding industry report -Research and Markets (2011. Gatorade Case study: Using Consumer Segmentation and Social media to Drive Market Growth
smarter economy -OECD (2010. ICT Skills and employment 72 Annex Industry clusters Table 7-Industry clusters in Europe(%of total Member State workforce employed in particular cluster
%Knowledge-intensive business services 23.1%35.3%16.8%20.8%16.3%29.4%14.2%24.8%36.4%29.7%17.7%25.9%24.2 18%18.7%22.1%9
%Business services 10.1%14.7%3. 2%3. 3%2. 8%7. 4%6. 3%9. 6%14.5%11.4%4. 2
%Building fixtures, equipment and services 2. 8%2. 4%2. 7%2. 7%5. 1%3. 8%3. 7%2. 9
activities required to get the finished product to the customers warehousing, order fulfilment, transportation and distribution management
customer support, repair services, spare parts management, etc ï§Firm infrastructure: includes general management, legal, finance,
and production and services management. External integration comprises such activities as electronic data interchange, including the
Business & Administrative Services Transportation & Logistics Consumer goods Real estate, Rental & Leasing Construction Hotel & Restaurants
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