The European Union s IPA Multi beneficiary Programme BUILDING CAPACITIES: ENTREPRENEURIAL LEARNING AND SME SKILLS INSIGHTS FROM THE SMALL BUSINESS ACT FOR EUROPE PROCESS IN SOUTH EAST EUROPE AND TURKEY Co-funded by the European Union This project is implemented by SEECEL
THE HUMAN CAPITAL DIMENSIONS OF THE SMALL BUSINESS ACT FOR EUROPE The Small Business Act for Europe (SBA) is the European Union's overarching policy framework for the development of small and medium enterprises (SMEs). Of the ten dimensions of the SBA, two relate specifically to human capital development: entrepreneurial learning (focusing on incorporating entrepreneurship as a key competence at all levels of national education systems) SME skills (focusing on the provision of strategically targeted training for SMEs). SEECEL AND THE SBA The South East European Centre for Entrepreneurial Learning (SEECEL) is the first institutional structure established in Europe as a direct result of the SBA. Launched in 2009 upon the request of the countries of South East Europe and Turkey1, SEECEL s mandate is to support policymakers and practitioners in the region to build entrepreneurially literate societies, with the specific aim of developing entrepreneurial learning, SME skills and women's entrepreneurship. In 2013, SEECEL became the fifth official partner of the SBA assessment process in South East Europe and Turkey (which ascertains the extent to which the dimensions of the SBA are being implemented in the region), thereby joining the existing team of high-profile institutions leading the SBA process: Organisation for Economic Co-operation and Development (OECD) European Commission (EC) European Bank for Reconstruction and Development (EBRD) European Training Foundation (ETF). FROM SBA ASSESSMENT TO SBA POLICY PROCESS IN SOUTH EAST EUROPE AND TURKEY SEECEL and ETF were the SBA partner institutions responsible for the human capital dimensions of the SBA. The inclusion of SEECEL in the 2016 SBA assessment marks a contribution to bringing the process closer to the region of South East Europe and Turkey. In order to achieve this goal, SEECEL worked in partnership with ETF to turn the SBA assessment process into an SBA policy process, with a specific aim to build ownership of the SBA in the region, to develop regional cooperation and to build national capacities. 1 Albania, Bosnia and Herzegovina, Croatia, Kosovo*, the former Yugoslav Republic of Macedonia, Montenegro, Serbia and Turkey.
SEECEL METHODOLOGY FOR THE SBA POLICY PROCESS To develop an SBA policy process in the region, SEECEL (with the support of ETF) defined a specific methodology that differed from the assessment methodology used in other SBA dimensions, with an emphasis on applying the core principles of the open method of coordination and of evidence-based policy making. The basis of the methodology was the use of indicators to qualitatively compare the state of play in each country with the required level of development to achieve a given score. This tool also provided countries with a policy roadmap to plan future measures in these areas. The innovations of the SEECEL methodology were the following: Regional definition of indicators: the indicators were reviewed and (re)defined regionally through a workshop gathering experts from each country in the region. National expert teams: sets of three experts from each country (24 experts in total) were in charge of drafting their national self-assessments, rather than relying only on the SBA Coordinator. Stakeholder workshops: in-depth, two-day stakeholder workshops were held with focus groups representing all stakeholders as an integral part of the SBA process (attracting over 300 participants in eight countries). Regional peer learning: finally, the unique feature of the methodology was to organise structured reflective learning activities, whereby expert groups from each country were required to peer review (and peer visit) one other country, and host another expert group during their own self-assessment workshop. OWNERSHIP, REGIONAL COOPERATION AND CAPACITY: OUTCOMES OF THE SEECEL METHODOLOGY By applying the principles of the open method of coordination and of evidence-based policy making to the SBA human capital dimensions in the region, the following outcomes were achieved: Ownership: By inviting national representatives from the region to review and (re)define the SBA human capital indicators, the methodology succeeded in fostering a sense of ownership of the SBA process at the regional (and national) level. Ownership of the outcomes of the SBA process was further developed by building a National SBA Coordination Framework in each country, consisting of the SBA Coordinator, three national experts and structured inputs from stakeholders. Regional cooperation: The structured peer-learning activities in the fields of entrepreneurial learning and SME skills provided a unique example of fostering good practice exchange and knowledge diffusion among the countries of the region, providing an excellent example of the kind of policy learning that is among the core objectives and raison d'être of the open method of coordination. Capacity: the implementation of a range of structured learning activities within the methodology (including workshops, guidelines, templates, stakeholder workshops and regional peer visits/peer reviews) allowed to the national experts, stakeholders and, ultimately, the SBA Coordinators to deepen their knowledge of the policy areas of the SBA human capital dimensions and to improve their overall coordination. This makes a contribution to increasing national readiness for high-quality policy planning for entrepreneurial learning and SME skills.
FUTURE PROSPECTS SEECEL and ETF consider that the specific approach adopted to turn a policy assessment into a policy process in the field of the SBA human capital dimensions has been a success and should continue to be applied in the region of South East Europe and Turkey in order to further increase capacities and to improve country/regional performance in these policy areas. Future prospects considered by SEECEL in the region include: Launching the 'SBA Barometer' for the human capital dimensions of the SBA in the region. The Barometer would allow for continual input of relevant data, policy updates and news in the areas of entrepreneurial learning and SME skills, which would significantly facilitate both the SBA assessment process and related policy-development processes. Systematically including Chambers of Commerce in the SBA process: So far, business representatives have not played sufficiently active role in the SBA process and SEECEL (with the support of ETF) have begun building a platform for systematically including regional Chambers in the SBA process. This in turn will bring the SBA closer to entrepreneurs in the region, to make sure that their voice, needs and concerns are heard. SEECEL also believes that the lessons learnt from the application of the methodology in the region can be relevant far beyond the region of South East Europe and Turkey. Namely, the SBA process that takes place in in the EU Eastern Partnership and EU Southern Neighbourhood countries is already based on a methodology that is close to the one described in this publication, with the exception of the national experts teams and the peer learning aspects. Such additions could bring great value to the SBA process in the aforementioned regions. Finally, SEECEL also advocates the position that the open method of coordination should be further strengthened at the EU level in the area of entrepreneurial learning, since certain challenges have been identified in this area. Structures such as the SME Envoy Network should consider how a similar methodology to the one used by SEECEL could be applied in order to further the development of entrepreneurial learning at the EU level through benchmarking, stakeholder coordination and good practice exchange.
A WORD FROM THE DIRECTOR Building a culture that supports entrepreneurship and equipping young people (and existing businesses) with entrepreneurial mind sets and competences is crucial for job creation and economic growth. The Small Business Act for Europe (SBA), the EU's policy framework for entrepreneurship, acknowledges this: entrepreneurial learning and SME skills are two of the SBA s ten dimensions. But how do we apply these SBA human capital dimensions in South East Europe and Turkey? Are these solutions applicable to us? Do we have the capacity to implement them? These are the core questions that SEECEL wished to address when it became the fifth official partner of the SBA process in 2013. With the support of ETF, SEECEL facilitated a process by which experts and stakeholders from each country in the region could discuss these policy issues, assess their progress and learn from each other. In other words, SEECEL's aim was to bring the SBA process closer to the region, start a discussion about these core questions, and, ultimately, turn the SBA assessment process into an SBA policy process. Our evaluation has shown that this approach has succeeded in developing regional ownership of the SBA, fostering regional cooperation and building capacity. I also believe that this form of 'policy learning', in turn, makes an important contribution to further developing good governance in the region and to adopting strategic approaches to policy-making in the broader area of economic development and competiveness. On behalf of SEECEL, I would like to thank all the SBA Coordinators, experts and stakeholders in the region for the joint work undertaken during the SBA; and to the international SBA partners (OECD, EC, EBRD and ETF) for making such a 'regional approach' possible.' Efka Heder Director, SEECEL
Co-funded by the European Union This project is implemented by SEECEL This project is supported by the Ministry of Entrepreneurship and Crafts of the Republic of Croatia This publication has been produced with a financial assistance of the European Union. The contents of this publication are the sole responsibility of SEECEL and can under no circumstances be regarded as reflecting the position of the European Union. The full publication Building Capacities: Entrepreneurial Learning and SME Skills. Insights from the Small Business Act for Europe Process in South East Europe and Turkey' is available for download on the web site: www.seecel.hr.