Problem addressed

In Slovenia, approximately 10% of young people with upper-secondary and post-secondary education are unemployed. At the same time, the rate of self-employment in Slovenia (13%) remains below the EU average (14%). The Zasavje area, once a highly developed coal-mining and industrial region, is facing a rapid loss of jobs and limited investment in new business ventures, leaving young people with limited opportunities.

Innovative solution

The Entrepreneurially, into the world of business HRT scheme provides participants that are registered as unemployed, regardless of their gender, age or education and with permanent residence within the Zasavje region, with financial support, full-time training opportunities and guidance from internal and external mentors, coaches and recognised entrepreneurs to develop their own business ideas. The scheme is based on its predecessor of the same name, which was implemented by the Slovenian Ministry of Economic Development and Technology in cooperation with 12 regional development agencies (RDAs) in the country. The scheme stands apart from similar youth entrepreneurship programmes due to the role of the RDAs.

Young people respond to a public call to submit an idea aimed at fostering social innovation in areas such as employment, digitalisation or mobility. The scheme strongly encourages new unexplored social solutions addressing both the private and public sector. An expert commission, consisting of entrepreneurs and representatives of the ministry, reviews and evaluates each business idea in terms of innovation, entrepreneurial potential and feasibility. The selected beneficiaries are then hired as employees by the relevant RDAs. They receive a monthly salary of approximately EUR 800 and extensive training throughout their work placement (4–6 months). The training programme is designed by each RDA to cater to the specific needs of its group of participants. It is delivered by experienced agency staff that act as tutors throughout the placement. The training programme focuses on general entrepreneurship topics at the beginning, with group work on business model generation, financing, accounting and marketing. As participants progress, the training becomes more individualised, with individual coaching and guidance for each participant to develop their business idea. An external mentor supports the training programme, hired by each agency to provide further expertise and specific training modules to the group of participants. The mentors are usually successful local entrepreneurs or commercial lawyers and are remunerated for their work by the agency.

The participants have access to their tutors and mentors for one year after they have completed their work placement and training programme, depending on their needs. The scheme also includes a monitoring and evaluation phase conducted by the RDA in order to assess the benefits of the career development of the beneficiaries.

Key results and benefits

The project proved to be highly successful in its pilot phase within the Zasavje region. It has subsequently been implemented at the national level. It has grown from a project supporting 40 participants at pilot level, to one with 360 participants and a 60% success rate (2014 national project). The monitoring data collected by the project representatives show that, in 2017–2018, 16 new enterprises or start-ups were established thanks to the project. By 2019, approximately 75% of beneficiaries had either started their own business or found employment. In the Zasavje region, different companies have been set up as result of this programme. In turn, these companies hire others, though the total number of jobs created is not known. The project is contributing to the development of new sectors in Slovenia, as well as to fostering the development of new skills among young people (such as graphic design, crafting, etc.)

Another key benefit of the scheme is that by getting directly involved, a large number of stakeholders, such as associations, companies and chambers of commerce, have established partnerships with the RDA. The scheme therefore becomes a learning opportunity not only for young participants, but also for the range of stakeholders involved, promoting social innovation across a wider spectrum of social actors.

Potential for mainstreaming

The project was pilot tested in the Zasavje region in 2010–2011 and then implemented nationwide from the end of 2012, which points to its strong potential to be transferred to other contexts. It is supported by the European Social Fund (ESF), which contributes 85% of the overall budget. A key factor for its successful transfer would be the ability to secure the financing to pay the participants during their employment. This allows the participants to develop strong work habits and put them into contact with a wide range of business professionals and entrepreneurs. Another factor for its transfer would be allowing flexibility in implementation so that the local agencies can tailor training programmes to the specific needs of participants.