This note describes the steps that policy makers can take to strengthen policies and programmes that help migrants acquire entrepreneurship skills, including entrepreneurship training, coaching and mentoring, and business development services. The policy guidance is structured around the good practice statements that comprise the “Building Entrepreneurship Skills and Capacities for Migrant Entrepreneurs” module in the Inclusive Entrepreneurship component of the Better Entrepreneurship Policy Tool. For further discussion of these issues and additional examples of relevant policy actions, please see:
OECD/European Union (2017), The Missing Entrepreneurs 2017: Policies for Inclusive Entrepreneurship, OECD Publishing, Paris. http://dx.doi.org/10.1787/9789264283602-en
OECD/European Union (2016), Inclusive Business Creation: Good Practice Compendium, OECD Publishing, Paris.http://dx.doi.org/10.1787/9789264251496-en
OECD/European Union (2015), The Missing Entrepreneurs 2015: Policies for Self-employment and Entrepreneurship, OECD Publishing, Paris. http://dx.doi.org/10.1787/9789264226418-en
OECD/European Union (2015), “Policy Brief on Sustaining Self-employment”, Publications Office of the European Union, Luxembourg. https://doi.org/10.1787/23114886
OECD/The European Commission (2014), The Missing Entrepreneurs 2014: Policies for Inclusive Entrepreneurship in Europe, OECD Publishing, Paris. http://dx.doi.org/10.1787/9789264213593-en
A needs assessment should be completed in the initial stage of developing policies and programmes that seek to strengthen entrepreneurship skills. Key activities include gathering evidence on the challenges faced in entrepreneurship by people from under-represented and disadvantaged groups (e.g. women, youth, immigrants, the unemployed), reviewing the current support offer, and identifying gaps and areas for improvement. When designing training, coaching, mentoring and business development services for migrant entrepreneurs, a needs assessment should consider various profiles of migrants (e.g. recent graduates, refugees) and be developed in consultation with key stakeholders to understand gaps in the current support offer and areas for improvement.
Setting out clear and appropriate policy objectives for policies and programmes that seek to develop entrepreneurship skills (e.g. training, coaching, mentoring) among entrepreneurs from under-represented and disadvantaged groups (e.g. women, youth, immigrants, the unemployed) is an essential part of their design. These objectives will shape the actions to be taken, the delivery model for implementation and the criteria used to measure success. In developing such objectives, policy makers should undertake a needs-diagnosis, or assessment, to ensure that the policy is underpinned by robust evidence and a sound rationale.
A needs assessment should be completed in the initial stage of the life cycle of developing policies and programmes that support the acquisition of entrepreneurship skills. It should include activities such as: gathering information and evidence on the challenges faced by entrepreneurs from under-represented and disadvantaged groups in business creation; reviewing current inclusive entrepreneurship training, coaching and mentoring, and business development services on offer; and identifying gaps in the current support provision and options for strengthening policies and programmes. These activities will inform proposals for the most appropriate policy actions and targets.
To create a robust evidence-base for proposed inclusive entrepreneurship policy actions, decision makers can draw upon three key sources of evaluation information:
Based on the needs assessment of skills for inclusive entrepreneurship, the proposed policy interventions and programmes can subsequently be evaluated by giving consideration to the following key criteria:
Policy makers can measure the success of their needs assessment exercise through a continuous monitoring of skills development for the target groups of inclusive entrepreneurship. This could involve regular reviews of the latest statistical data and background research to assess whether the initial gaps in support provision still remain, or whether different needs have been identified.
In undertaking a needs assessment to identify the needs for entrepreneurship skills development for migrants, policy makers should:
Entrepreneurship training programmes seek to facilitate the acquisition of business management and entrepreneurship skills. In designing and implementing entrepreneurship training programmes, policy makers need to consider the mode of delivery, themes covered, intensity and frequency of training sessions, and whether other supports should be provided with the training. It is important to adjust entrepreneurship training to the needs of different profiles of migrants (e.g. recent graduates, refugees) since they often operate different types of businesses. Training should use active learning methods (e.g. games, simulations) and it is usually most effective to deliver training programmes in partnership with organisations that have a history of working with migrants.
Entrepreneurship training can help the beneficiaries to acquire valuable skills and experience, making them more employable. Although not everyone who receives entrepreneurship training goes on to start a business, the wider benefits of participating have been recognised. Entrepreneurship education and training can generate more positive self-perceptions and increase self-confidence, especially among disadvantaged groups. The effectiveness of entrepreneurship training can be increased by tailoring content and methods to the particular skills needs of the target groups.
Entrepreneurship training aims to facilitate the acquisition of entrepreneurship skills, with a focus on practical business management skills such as business and financial planning, and basic accounting skills. Entrepreneurship skills such as risk management, motivating others, networking and negotiation are typically included. Training programmes can also seek to boost self-confidence.
Inclusive entrepreneurship training programmes can take the form of a generic, or a fully tailored programme; or a combination of both. It is possible to have some tailored modules within a generic entrepreneurship training programme. There is some evidence to suggest that the results of publicly-provided business support services are more positive where the services are designed and delivered in an integrated way so that entrepreneurs are supported at different stages of business development, from pre start-up to start-up and post start-up phases.
A number of considerations should be made when designing inclusive entrepreneurship training courses:
When designing and delivering entrepreneurship training programmes for migrants, policy makers should:
Entrepreneurship coaching and mentoring can be an effective but resource-intensive support. The keys to a successful coaching or mentoring relationship are the quality and dedication of the coach or mentor, and ensuring a good match with the entrepreneurs. When designing and implementing entrepreneurship coaching and mentoring for migrants, it is important to build a pool of appropriate coaches and mentors who understand the challenges faced by migrant entrepreneurs and can deliver support in relevant languages.
Entrepreneurship coaching and mentoring can not only help support business creation, but also improve business survival and growth prospects. Coaching and mentoring is an intensive, individually-tailored support that can address the needs of different target groups as well as the specific challenges faced by the individual. It can promote learning; help develop self-confidence, motivation and entrepreneurship skills; facilitate access to resources and markets; and improve business performance.
Coaching and mentoring are advisory relationships typically used in personal and career-related contexts, including business creation and management strategy. Coaching tends to be a short-term relationship with an aim of developing entrepreneurship skills, or address a specific business-related issue. Mentoring usually involves a longer-term relationship, focusing on personal development rather than the business itself. Both coaching and mentoring are most effective where high levels of trust are developed between the advisor and the entrepreneur. Policy makers seeking to support disadvantaged groups of entrepreneurs should take care in recruiting suitable coaches and mentors who understand the specific needs and challenges of the target groups.
There are a number of considerations when designing and delivering coaching and mentoring specifically for entrepreneurs from under-represented and disadvantaged groups:
Developing a pool of suitable advisors is one of the main challenges in designing and delivering coaching and mentoring initiatives. Insufficient number of advisors, particularly those with suitable qualifications, can have a negative impact on the quality of support. The issue may be exacerbated where the initiatives target under-represented and disadvantaged entrepreneurs using advisors from the same communities. The numbers of successful entrepreneurs from target groups who have the experience and skills to effectively coach and mentor others are often limited. To address this challenge, policy makers must build up sufficient numbers and capacities of coaches and mentors through training, network building and quality control.
Business advisors, coaches and mentors could be paid professionals or volunteers. In the case of volunteers, it is necessary to ensure that there are sufficient incentives, for example networking events for advisors or some kind of recognition. Inclusive entrepreneurship programmes that do recruit volunteer advisors and mentors from similar backgrounds to those of under-represented and disadvantaged groups, should ensure that the volunteers also have appropriate experience and skills to deliver quality support.
In designing and delivering entrepreneurship coaching and mentoring programmes for migrant entrepreneurs, policy makers should:
Case Study: Business Coaching for Ethnic Minorities, Denmark
Business Coaching for Ethnic Minorities seeks to motivate and support entrepreneurs from migrant and ethnic minority groups. It provides entrepreneurship coaching and business advisory services through professionals that come from the same ethnic group. This allows for multi-lingual support and makes the scheme more attractive to potential participants.
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Business development services can help entrepreneurs acquire new skills and expand their networks. Most public programmes offer support at no cost, but entrepreneurs also have the option of paying for private sector professional services. Business development services for migrants should be designed in integrated support packages that are delivered by trainers, coaches and business advisors that have experience working with migrant entrepreneurs. Supports should eventually attempt to refer migrant entrepreneurs to mainstream programmes.
Business development services for start-ups are services that aim to improve the performance of a new business by improving its ability to compete and access markets. These support services aim to encourage entrepreneurial tendencies, strengthen individual entrepreneurial skills and competences, increase the likelihood of venture creation, and improve the sustainability of new business start-ups. They can offer valuable support for those who may have skills related to a sector or a specific trade, but lack the skills and knowledge to start and operate a business. These services include sign-posting information, providing training, coaching, mentoring and business counselling.
A critical question concerning the delivery of business development services is whether or not they should be offered free of charge. Most business development support services for disadvantaged entrepreneurs are offered without a fee. The rationale is to ensure that support schemes are attractive and accessible. Most often, these schemes rely on recruiting volunteers to deliver the services or professionals who deliver bulk services at a discounted rate. In principle, there can be some advantages in having a (small) fee-based service rather than one that is completely free service, even if the support is delivered by volunteers. An initial or annual fee serves to ensure the commitment by the entrepreneur, which is a success factor for many of these services. There is no evidence that fee-based support schemes are of higher quality than free schemes, but it is arguable that they are more likely to be sustainable as some of the more established programmes do include small fees albeit at minimum levels.
There are however, some key principles that can be applied when designing business development services to better engage and support entrepreneurs from under-represented and disadvantaged groups (e.g. women, youth, immigrants, the unemployed). While group characteristics can be important considerations when designing and implementing outreach, the support provision itself should focus on the requirements of individuals rather than generalised needs based on group characteristics. This is because targeted support may reinforce stereotypes and lock inclusive entrepreneurship into particular forms of entrepreneurial activity. Other key principles for effective delivery include:
In practice, an effective approach to delivering business development services is to offer integrated support that packages financial support with a range of “soft” supports that increase the business management and entrepreneurship skills. Evaluations show that integrated approaches are effective because financial and nonfinancial supports reinforce each other, combining to increase the chances of success for the entrepreneur.
Another common approach is for regions or local areas to offer one-stop shops. These are advantageous because they provide easy access to information and signposting services for prospective entrepreneurs. These can also improve access to more individualised forms of support such as business counselling. There is evidence from Italy that one-stop shops can have a slight positive impact on start-up rates as they decrease the administrative burden of starting a new firm.
In designing and delivering business development services for migrant entrepreneurs, policy makers should:
Case Study: Mingo Migrant Enterprises, Austria
Mingo Migrant Enterprises is an integrated support scheme for entrepreneurs with a migrant background in Vienna. It provides business consultancy services for immigrants and ethnic minorities and referrals of immigrants to other mainstream business support schemes in German and various other languages.
Integrated packages of entrepreneurship supports can be more effective than “single shot” supports since they usually address multiple barriers through a combination financial and non-financial supports. When designing and delivering integrated support packages, it is important to separate decisions related to financial support from the training, coaching or mentoring supports to ensure impartiality. Integrated entrepreneurship support programmes for migrants can be highly effective particularly where access to business finance is constrained, for example, for migrants who lack credit history.
The development of a comprehensive and integrated support packages has several benefits. First, it is often more effective in supporting entrepreneurs from under-represented and disadvantaged groups because multiple barriers can be addressed, including a lack of skills, limited financial resources and loss of self-confidence. Second, the different services on offer typically complement each other, providing a more complete package of support for people with multiple needs.
Integrated support packages should be underpinned by an understanding of the policy context, identification of existing supports and its key stakeholders and the actions needed, and the use of monitoring and evaluation to improve policy interventions. This would also help in determining the mix of support that is needed and how it should be delivered.
Good practice examples of schemes adopting an integrated approach to inclusive entrepreneurship support suggest that a number of barriers or challenges may arise in the course of delivering and implementing support for under-represented and disadvantaged groups (e.g. women, youth, immigrants, the unemployed). These include, but are not restricted to, the following:
To effectively link training, coaching and mentoring, and business development services for migrants with business financing supports, policy makers should:
The delivery of entrepreneurship training, coaching and mentoring, and business development services for migrants can be done either through mainstream channels or through approaches that are tailored for the targeted entrepreneurs. Tailored approaches are often more effective but are more costly. In delivering support to migrant entrepreneurs, policy makers should partner with specialist organisations that have experience in supporting and working with migrant communities.
One of the difficulties in accessing mainstream entrepreneurship support for under-represented and disadvantaged groups (e.g. women, youth, immigrants, the unemployed) is the lack of appropriate services and service delivery. The “one size fits all” approach may not be suitable for inclusive entrepreneurship. A different approach may be needed to address the specific needs and circumstances of different entrepreneurs, and utilises appropriate delivery channels to ensure that different profiles of entrepreneurs can access entrepreneurship training, coaching, mentoring and business development services.
Entrepreneurs from under-represented and disadvantaged groups of entrepreneurs often rely on informal support from families, friends and local communities, rather than seeking formal business development service providers. Reluctance to engage with the formal support systems can have negative consequences for business performance and survival of firms operated by the target groups of entrepreneurs. Specialist agencies and organisations with experience of supporting under-represented and disadvantaged entrepreneurs can, therefore, play a key role in reaching out to the target groups. There is a clear role for specialist agencies in addressing some of the challenges and specific needs of minority entrepreneurs.
Delivering inclusive entrepreneurship support in partnership with specialist agencies and organisations has several advantageous features. Each party can bring specialist expertise and resources that, in combination, offers a more comprehensive package of support that could not be achieved by a single partner working alone. This support typically involves a “bottom-up” development of tailored services by specialist agencies, although policy makers can also initiate programme creation as part of the strategy to support the delivery of programmes, particularly at the local level. A partnership with a specialist agency can be a valuable instrument for creating support programmes for inclusive entrepreneurship, or for improving performance of existing mainstream schemes. This is often the case where there are low levels of trust in the mainstream support provision, for example among new immigrant groups with limited experience of engagement with formal business support agencies.
A successful partnership often involves co-operation of all partners as equal members in the organisational structure, and collaboration with a shared strategic vision and compatible targets. To create an effective partnership for inclusive entrepreneurship support delivery, policy makers should undertake a number of key actions:
There are a number of risks or potential barriers to a successful delivery of entrepreneurship support, in partnership with specialist agencies, which policy makers should keep in mind in the process of designing inclusive entrepreneurship policies. A partnership is likely to be ineffective if:
In identifying appropriate entrepreneurship support delivery channels for migrant entrepreneurs, policy makers should:
Tailored entrepreneurship support programmes are typically more effective than generic measures because they are adapted to address specific needs, but they are more costly to develop and deliver. Migrant entrepreneurs are not all alike in terms of their motivations and types of businesses that they will start. Support initiatives should therefore be tailored, as much as possible, to the needs of a wide range of migrant entrepreneurs, e.g. recent graduates, refugees.
When selecting a delivery mechanism for an entrepreneurship or self-employment programme or support service, policy makers are faced with a trade-off between the additional benefits for the client group of targeted and specialised support and the higher costs associated with tailoring.
The advantages of tailored support include:
One of the key considerations is whether a tailored approach can achieve satisfactory cost efficiency. This implies the need for a comparison of the cost of delivering a given service per target group client between a tailored and a mainstream approach. Given that a tailored approach may be expected to have greater effectiveness in achieving results, the comparison should also extend to a cost-benefit analysis of positive outcomes achieved compared to costs of the different approaches with respect to target populations. Where data are difficult to obtain, a comparison could be made instead between the cost of delivery per target group client in the case of a targeted initiative and a mainstream client in the case of a mainstream initiative. A higher cost per client from a hard-to-reach group can generally be accepted given the additional social benefit. The acceptable additional cost should be weighed against political priorities and objectives in each local context.
In tailoring entrepreneurship training, coaching and mentoring, and business development services for migrant entrepreneurs, policy makers should:
Monitoring and evaluation are important tools for managing public resources and understanding which initiatives have an impact and which do not. When assessing migrant entrepreneurship training, coaching and mentoring initiatives, and business development services, collect key performance metrics by gender, age and place of birth. Moreover, evaluations should account for deadweight loss and displacement effects. Also, it is important to recognise that entrepreneurship may not be suitable for all migrants.
The policy development process should include monitoring and evaluation to measure progress against the objectives and targets. Policy makers should want to understand what works, what does not work, and to ensure that lessons can be learned and shared with others.
Basic monitoring is done with key performance indicators (KPIs) by programme or project managers. KPIs measure progress of a policy or project against the objectives and targets. Indicators can be grouped into three main types:
Mid-term and ex-post evaluations can help identify the ways in which the policy can be improved or developed to increase its impact. These evaluations are typically undertaken by external experts to ensure independence and objectivity. Such evaluations should be built into the policy design process from the outset. Furthermore, the lessons learned from evaluations should be available and accessible to other policy makers in order to share good practice.
Effective policy evaluation should include several features. It should be systematic and analytical, focused on actual effects and provide judgement of the level of success. Moreover, they should aim to improve decision making, help resource allocation, enhance accountability, and bring about organisational learning. Six principles for evaluation practice can be highlighted:
The process of policy evaluation may vary, depending on the circumstances. Some government departments and organisations have a dedicated unit with responsibility for evaluating policies, while others may commission evaluations in-house or from outside organisations, as required. Although best practice principles exist, the context of the policy and the target audience requires particular attention against these broader best practice guidelines.
To monitor and assess the success of entrepreneurship training initiatives tailored to different profiles of migrants, policy makers can draw upon frameworks and guidelines, such as the OECD evaluation framework, to gain a deeper understanding of major evaluation approaches. The performance indicators to look at in relation to entrepreneurship training programmes can vary depending on the type and scale of the initiative. Examples of key indicators include:
A range of standards and good practice guides exist to support policy makers in monitoring and evaluating the quality and outcome of coaching and mentoring initiatives. For example, The European Mentoring and Coaching Council has produced a framework of competences for mentors and coaches at different stages of development. The competence indicators are examples of behaviours or principles of the coaching profession. The framework also enables policy implementers to evaluate the effectiveness of their programmes through the performance of programme participants. A range of soft and hard performance indicators can be examined, including the growth in the number of new customers, increased self-confidence and the development of business networks.
When monitoring and evaluating entrepreneurship training, coaching and mentoring, and business development services for migrant entrepreneurs, it is important to: