EUROPEAN ENTERPRISE POLICY
- EUROPEON ENTERPRISE POLICY: INTRO
- ENTREPRENEURSHIP: A MINDSET
- STRART-UPS
- SCALE-UPS
- DELOCALIZATION & RESHORING
- BANKRUPTCY & SECOND-CHANCE
- THE FINANCING PARADOX
- EQUITY
- THE CROWD
- INCUBATORS, ACCELERATORS, HACKATHONS
- ZOMBIES, EX-NOVATION & INNOVATION
- GENDER ISSUE
CHAPTER 1 & 4: INTRO
1. INTRODUCTION TO THE EUROPEAN ENTERPRISE POLICY
WHAT IS POLICY?
- State
- Government
- Citizenship
- Thinking, making & doing
- a set of ideas/a plan of what to do in particular situations that has been agreed to officially
o by a group of people
o by a business organization
o by a university
o by a government
o by a political party
WHERE SHOULD POLICY INTERVENE?
- First thing we do: check if the market fails
- If the objective can be realized by the market, we don’t need policy à market
- If the objective can’t be realized by the market, we need policy à education
o price of education is fixed by government à everybody should have access to education for
the same price
1
,THE RIGHT MIX?
FREE MARKET GOV’ INTERVENTION
Entrepreneurs able to make profits Progressive taxes to reduce inequality
Freedom to set up a business Government regulations
Prices determined by market forces (smartphones) Taxes on goods (ecology)
Private ownership of business Government provision of public goods
GOV/GDP
1. market first
2. government if market fails
WHY DO WE NEED POLICY?
- Objectives not realized by the invisible hand
- 3 steps of implementation
o Identify the market failure
o Correct the market failure
o Take-over
MAIN INSTRUMENTS
Elastic of prices à you increase the price of cigarettes gradually: taxes (the trade-of between health and the tax)
2
,WHY ENTERPRISE POLICY?
- To do something when the market fails
- Why does the market fail? Why do we care?
- Objectives
- Where is the market failure?
- How to cope with it?
o Identify the market failure
o Try to make the market work
o Only then, government can take over
- Quantifiable objectives
o More start-ups +
o More growers +
o Less bankruptcy -
o Avoid delocalization -
OVERVIEW
1. Starters
a. Entrepreneurship attitude
b. Seed money
c. Ecosystems
d. Incubations/hackathons
e. Female entrepreneurship
2. Growth potential
a. HGF: high growth firms
b. Ingredients for growth
c. Growth strategies
d. M&A
e. Scale-up money
3. Bankruptcy
a. Early warning
b. Zombies
c. Exnovation/innovation
d. 2nd chance
e. Bankruptcy laws
4. Delocalisation
a. Scale-up gap
b. Competition policy
c. Retention & Reshoring
WHAT EUROPEAN LEVEL?
- EU
- EEA (European economic area)
- Schengen
- Eurozone
WHY ENTERPRISE POLICY AT EUROPEAN LEVEL?
- Multi-level governance
- Efficiency versus overlapping
- Subsidiarity
3
, Golden institutional triangle
European commission
Council parliament
Member states citizens
COUNCIL
- Council of the EU
o Prime ministers
o Subject ministers
o Rotating presidency
- The European Council
o Sets the agenda
o It is not a EU’s legislating institution
o 2.5 years president
o NOT to be confounded with Council of Europe
PARLIAMENT
- 705 seats
- Directly elected every 5 years
- Seat in Strasbourg, convenes in Strasbourg & Brussels
- No right to initiate legislation
COMMISSION
- Non-elected members
- 1 by MS (= too much)
- Proposes
- Executes: 50 000 officials
- Assisted by advisory bodies
o Committee of the Regions
o European economic and social committee
WHEN EU – LEVEL?
1. Private sector’s responsibility
2. Subsidiarity (only on european level if there is an added value, otherwise always choose the local
level)
3. Unanimity In decision making (MFF)
ð LIMITED SCOPE
4
- EUROPEON ENTERPRISE POLICY: INTRO
- ENTREPRENEURSHIP: A MINDSET
- STRART-UPS
- SCALE-UPS
- DELOCALIZATION & RESHORING
- BANKRUPTCY & SECOND-CHANCE
- THE FINANCING PARADOX
- EQUITY
- THE CROWD
- INCUBATORS, ACCELERATORS, HACKATHONS
- ZOMBIES, EX-NOVATION & INNOVATION
- GENDER ISSUE
CHAPTER 1 & 4: INTRO
1. INTRODUCTION TO THE EUROPEAN ENTERPRISE POLICY
WHAT IS POLICY?
- State
- Government
- Citizenship
- Thinking, making & doing
- a set of ideas/a plan of what to do in particular situations that has been agreed to officially
o by a group of people
o by a business organization
o by a university
o by a government
o by a political party
WHERE SHOULD POLICY INTERVENE?
- First thing we do: check if the market fails
- If the objective can be realized by the market, we don’t need policy à market
- If the objective can’t be realized by the market, we need policy à education
o price of education is fixed by government à everybody should have access to education for
the same price
1
,THE RIGHT MIX?
FREE MARKET GOV’ INTERVENTION
Entrepreneurs able to make profits Progressive taxes to reduce inequality
Freedom to set up a business Government regulations
Prices determined by market forces (smartphones) Taxes on goods (ecology)
Private ownership of business Government provision of public goods
GOV/GDP
1. market first
2. government if market fails
WHY DO WE NEED POLICY?
- Objectives not realized by the invisible hand
- 3 steps of implementation
o Identify the market failure
o Correct the market failure
o Take-over
MAIN INSTRUMENTS
Elastic of prices à you increase the price of cigarettes gradually: taxes (the trade-of between health and the tax)
2
,WHY ENTERPRISE POLICY?
- To do something when the market fails
- Why does the market fail? Why do we care?
- Objectives
- Where is the market failure?
- How to cope with it?
o Identify the market failure
o Try to make the market work
o Only then, government can take over
- Quantifiable objectives
o More start-ups +
o More growers +
o Less bankruptcy -
o Avoid delocalization -
OVERVIEW
1. Starters
a. Entrepreneurship attitude
b. Seed money
c. Ecosystems
d. Incubations/hackathons
e. Female entrepreneurship
2. Growth potential
a. HGF: high growth firms
b. Ingredients for growth
c. Growth strategies
d. M&A
e. Scale-up money
3. Bankruptcy
a. Early warning
b. Zombies
c. Exnovation/innovation
d. 2nd chance
e. Bankruptcy laws
4. Delocalisation
a. Scale-up gap
b. Competition policy
c. Retention & Reshoring
WHAT EUROPEAN LEVEL?
- EU
- EEA (European economic area)
- Schengen
- Eurozone
WHY ENTERPRISE POLICY AT EUROPEAN LEVEL?
- Multi-level governance
- Efficiency versus overlapping
- Subsidiarity
3
, Golden institutional triangle
European commission
Council parliament
Member states citizens
COUNCIL
- Council of the EU
o Prime ministers
o Subject ministers
o Rotating presidency
- The European Council
o Sets the agenda
o It is not a EU’s legislating institution
o 2.5 years president
o NOT to be confounded with Council of Europe
PARLIAMENT
- 705 seats
- Directly elected every 5 years
- Seat in Strasbourg, convenes in Strasbourg & Brussels
- No right to initiate legislation
COMMISSION
- Non-elected members
- 1 by MS (= too much)
- Proposes
- Executes: 50 000 officials
- Assisted by advisory bodies
o Committee of the Regions
o European economic and social committee
WHEN EU – LEVEL?
1. Private sector’s responsibility
2. Subsidiarity (only on european level if there is an added value, otherwise always choose the local
level)
3. Unanimity In decision making (MFF)
ð LIMITED SCOPE
4
