SUPPORTING YOUTH IN

ENTREPRENEURSHIP IN POLAND

21 September 2015Warsaw, Poland

David HalabiskyEconomistLocal Economic and Employment Development ProgrammeDavid.Halabisky@oecd.org

Agenda

1. About the OECD

2. Work programme on Inclusive Entrepreneurship

3. Supporting youth entrepreneurship in Polanda. Methodology

b. Context

c. Findings

d. Key recommendations

About the OECD

• The mission of the Organisation for Economic Co-operation and Development (OECD) is to promote policies that improve economic and social well-being.

• The Organisation provides governments with a forum for exchanging public policy experiences, collaborating on solutions to common problems, identifying good practices and co-ordinating national and international policies.

Objectives:• Present data on the state of self-employment and

entrepreneurship activities by under-represented social groups (e.g. women, youth, seniors, the unemployed, migrants, people with disabilities).

• Examine existing policies, recent developments and areas for improvement.

• Build capacities of policy makers at national and local levels for policy designs and implementation.

Outputs to date:• 9 Policy briefs• 2 Annual reports (2015 forthcoming)• 3 Capacity building seminars

Inclusive entrepreneurship

Policy briefs

http://www.oecd.org/cfe/leed/inclusive-entrepreneurship.htm

Annual reports: The Missing Entrepreneurs

The Missing Entrepreneurs 2015 will be available on 23 November

1. Youth entrepreneurship reviews:– 3 national case study projects in Italy, Lithuania and

Spain

2. Rapid policy reviews:– Latvia, Poland, Slovenia, Netherlands, Hungary,

Germany, Belgium, Finland, Portugal

3. Compendium of good practice:– 20 in-depth good practices– Identify key principles of good policy design– Published end 2015

Ongoing work

Rapid policy assessments: Method

• Follow a common framework:1. Desk research and document analysis

2. Stakeholder interviews

3. Workshop

4. Report with findings and recommendations

• Analysis focusses on:1. Entrepreneurship skills

2. Access to finance

3. Institutions and regulatory environment

• Examine the nature and appropriateness of existing and proposed policies and programmes.

Unemployment rates, 2005-14

• Youth unemployment rate in Poland is slightly above the EU average but gap is much smaller than before the crisis

2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

5

10

15

20

25

30

35

40

EU28 (15-24 years old) Poland (15-24 years old)

EU28 (15-64 years old) Poland (15-64 years old)%

Activity rates, 2005-14

• Activity rates for youth have been constant despite an overall increase

2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

10

20

30

40

50

60

70

80

EU28 (15-24 years old) Poland (15-24 years old)

EU28 (15-64 years old) Poland (15-64 years old)%

Self-employment rates, 2005-14

• Self-employment rate has declined for youth in Poland but remains above EU average

2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

5

10

15

20

25

EU28 (15-24 years old) Poland (15-24 years old)

EU28 (15-64 years old) Poland (15-64 years old)%

Barriers to business start-up for Polish youth

• European Commission, 2013:– Access to finance– Lack of knowledge and skills– Unpredictable economic environment– Fear of failure– Administrative difficulties

• Amway, 2013:– Access to finance– Lack entrepreneurship skills

Entrepreneurship skills

Strengths1. National Qualifications Framework for Higher

Education

2. Academic Incubators of Entrepreneurship (AIP)

3. Strong role of Junior Achievement

Areas for improvement4. No framework for entrepreneurship education in

school

5. Passive teaching and little training for teachers

6. Coaching and mentoring delivered by trainers

7. Variations in quality

Access to finance

Strengths1. ESF support for grants and microfinance

2. Knowledge Education Development Operational Programme will increase support for unemployed youth

Areas for improvement3. Access is highly variable across regions

4. Diverse quantity and quality of information available

5. Often not accompanied by training

Institutions and regulatory environment

Strengths1. Reduced social insurance contributions for 2

years

2. Act on Bankruptcy and Reorganisation allows for “second chance”

3. Increase support under the Tax Administration Act

Areas for improvement4. Few role models for youth

5. Tax system is complex, with frequent changes

Key recommendations

1. Strengthen entrepreneurship teaching and promotion at all levels of education system.

2. Promote entrepreneurship role models.

3. Expand and improve coaching and mentoring programmes.

4. Shift to phased-out relief from social security contributions.

Discussion questions

1. What are the keys to the success of youth entrepreneurship initiatives in Poland?

2. Should youth be more involved in youth entrepreneurship policy making? How?