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Voorbeeld 4 van de 45 pagina's
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Voorbeeld van de inhoud
European Enterprise policy: summary PowerPointsPowerPoint 1: concepts & rationale:
What is policy?
State, government, citizenship
a set of ideas or a plan of what to do in particular situations that has been agreed to officially
by a group of people, a business organization, university, a government, or a political party.
Aristoteles: theoria (thinking), poiesis (making), and praxis (doing)
Opening questions?
Who do we need policy?
o Objectives not realized by the invisible hand
o We need a visible hand
o “it’s not because the market fails, that gov does better”
Three steps of implementation
o Identify the market failure
o Correct the market failure
o Take-over
The right mix?
Free market = invisible hand Gov’ intervention = visible hand
Entrepreneurs able to make profit Progressive taxes to reduce inequality
Freedom to set up a business Government regulations
Prices determined by market failures Gov provision of public goods
For example the market of Ugent is not efficient because of the high costs help from the
government so every student can follow education
government is bigger than the market operations in
France, Finland, Denmark, Belgium, Greece and
Italy
,Main instruments of government intervention:
1) Taxes and subsidies
2) Maximum and minimum prices
3) Regulating the market
4) State ownership/ state funding and provision
Opening questions
Why enterprise policy?
o Objectives?
1) Avoid bankruptcy
2) Avoid delocation
3) Having more start-ups
4) Having more scaleups
o Where is the market failure?
o How to cope with it?
Why European Enterprise policy?
o Multi-level governance
o Efficiency versus overlapping
o Subsidiarity
“nuts” = certain level where you can compare between different regions, countries, ..
1) Region
2) Federal
3) European
“subsidiarity” = the policy should be implemented on the lowest level possible to be efficient
Enterprise policy: why?
Quantifiable objectives
+ -
More start-ups Less bankruptcy
More growers Avoid Delocation
Enterprise policy: when EU?
Limits
private sector’s responsibility
Limited scope (beperkte draagwijdte)
subsidiarity
unanimity in decision making
statements (1): “small firms create more jobs than large firms (elephants). Mice, and especially
gazelles, are more important for the maintenance and the creation of employment than elephants”
statements (2): (SOTEU) “SMEs are the backbone of the economy”
, Representing around 99% of all companies and two thirds of all jobs, SMEs are the main
fabric of Europe’s economy across all eco-systems but they have been hit hard by the COVID-
19 crisis.
(SMEs and growth) “ the EU had a problem in
start-ups, but even a bigger problem in scale
ups”
Share of highgrowth firms: turnover
Big difference between EU and USA in terms of
turnover
Turnover = Turnover is the total sales made by a
business in a certain period. It's sometimes
referred to as 'gross revenue' or 'income'. This is
different to profit, which is a measure of earnings.
Share of highgrowth firms: employment
Employment in US is bigger than EU
Enterprise policy: means (middelen)
Improve environment:
Fiscal
Financial
Administrative
Competitiveness
Europeanisation
Internationalization
Evidence based: gazelles
Top 500 European ‘gazelles’
3 major impediments to grow:
o Level of taxes and social security
o Bureaucracy of government administration
o Lack of capital
Gazelles = a gazelle company is a high-growth company that has been increasing its revenues
by at least 20% annually for four years or more, starting from a revenue base of at least $1
million.
Evidence based: constraints of an SME policy
Patchwork of measures
Lack of synergie
Based on subsidy policy with contra productive effects:
o Too complex
o Too expensive/ heavy application procedure
o Only few SMEs willing to accept support
o Creates discrimination amongst subs and non subs
foresights
, Move to entrepreneurship policy
EU
Fostering entrepreneurship is priority
We claim we like entrepreneurship because..
o Its impact on employment
o Its impact on growth
o It fits into the “active welfare stare”
But entrepreneurship is not a characteristic of economic life (compared to USA)
Entrepreneurship is a structural anomaly
4 phases in Enterprise policy
Horizon 2020 & MFF
MFF = Multiannual financial framework
Program 2014-2020: the 2020 targets:
3% innovation
70% employment rate
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