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EU mulls extending 'Erasmus for Entrepreneurs'

Published 25 February 2010 - Updated 23 December 2011
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Italian plastic surgeon Luca Poli, who benefited from the Erasmus for Young Entrepreneurs programme, said the three months he spent shadowing a businesswoman in Spain were key to the success of his new clinic in Milan. The EU scheme has been extended for a second year and could soon become a permanent fixture. 

Poli is one of 1,800 business people registered in the exchange programme, which allows Europeans to shadow established entrepreneurs before launching their own ventures.

The €5 million pilot scheme has been extended for a second year and a European Commission official has revealed plans to put the initiative on a permanent footing. To date, 60 exchanges have been completed but this could climb to 500 by June 2010.

The mobility programme has been highly successful in Italy and Spain, which account for nearly half of all applications. The UK is by far the most requested destination, primarily for linguistic reasons, according to Eurochambres, the umbrella organisation for EU chambers of commerce, which coordinates the scheme.

The most active sectors are media and promotion, information technologies and education, and entrepreneurs usually spend between two and three months with a host entrepreneur.

Poli, who previously benefited from the Erasmus programme for students during his time at medical school, spent time shadowing Francine Huaman, who runs a wellness centre in Spain.

His plan to open a clinic in Milan was already at an advanced stage but he needed insights from someone with experience running their own venture.

"In my experience, doctors are very good at treating people but not so good at economics. I wanted an experienced entrepreneur who would point out the errors in my business plan and share what they have learned about running an enterprise," said Poli.

Marketing and communications were areas where the Italian surgeon had limited knowledge but his spell in Spain helped him plan a media strategy which ultimately resulted in TV appearances which raised the profile of his new business.

Poli said the most difficult aspect of getting his enterprise off the ground was securing financial backing for the project.

"I needed to buy medical equipment and to renovate a clinic so I had to raise about €200,000. In the end, I applied for European funding which was distributed by my regional authority. The business has been a real success – demand has been very strong and we are really busy – so we will be able to repay the loan next year," he told EurActiv.

Erasmus for Young Entrepreneurs was originally funded to the tune of €3 million but will now get €5 million for its second year, enabling it to cater to a larger pool of businesses.

Marking the first anniversary of the programme, Christian Weinberger who heads up the entrepreneurship unit in the European Commission, confirmed that it would be extended to five new countries – Denmark, the Czech Republic, the Netherlands, Latvia and Slovenia – bringing the total number of countries covered to 24.

To read an interview with Luca Poli, please click here.

Positions: 

Joanna Drake, director for the promotion of the competitiveness of SMEs at the European Commission's Enterprise and Industry departmenr, said she was confident that Erasmus for Young Entrepreneurs would help create new businesses.

"The programme will push the boundaries of SMEs' operations: they will be more international, more creative, more dynamic and more innovative," she said.

Ben Butters, director of European affairs at Eurochambres, which provides support for the programme, said the pilot scheme had been well received by participants. "The feedback from the pioneering entrepreneurs involved in the first exchanges confirms the benefits to both the new and the host entrepreneurs. Participating clearly provides both parties with a great opportunity for future collaboration and a fresh perspective on their existing activities or future venture," he said.

Francine Huaman, a host entrepreneur from Spain, said she hoped the collaboration with a young Italian entrepreneur will lead to future collaboration. "I was delighted to receive Luca in my wellness centre. The experience went so well that I will act as a host entrepreneur again in the future," she said.  

Background: 

In February 2009, the European Commission launched a pilot scheme encouraging young businesspeople to spend between one six months shadowing an established entrepreneur (EurActiv 20/2/09). Participants receive financial support to help cover expenses during their visit.

The move is part of efforts to encourage entrepreneurship and to help business owners make better use of the internal market. The idea was first floated in the Small Business Act, published in 2008 (EurActiv 11/06/09).

At present, an estimated 8% of SMEs export goods and services within the EU, much to the frustration of business groups pushing for the full implementation of the Services Directive.

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