In most EU countries, the main source of employment are small and medium enterprises (further in text: SMEs). The government sector, as well as large companies, are important contributors; however, the brunt of the employment burden is taken by small companies.
This is particularly true in areas where there are hardly any large companies, which are often rural, sparsely populated, and poor. In these areas, SMEs are overrepresented, and their share in employment and value-added production is well above the national average.
These areas also have the lowest density of enterprises per population or geographical territory. This means that the conditions for setting up enterprises and generating income and employment through them are unfavorable and do not support growth. This happens because, when both the population and the number of businesses serving a region are low, it raises the unit cost of many locally available inputs, making SMEs in the region uncompetitive. There should be mechanisms to compensate for this drawback.
TASK4ISI can be a key contributor in generating ideas and providing know-how for setting up an ecosystem that offsets these disadvantages. This can be achieved by introducing the concept of disadvantaged entrepreneurial groups, addressing their specific needs, and discussing their potential and key challenges with the involvement of local players.
The marginal impact of these groups on entrepreneurship is far greater in such regions compared to places where the supply of entrepreneurs is already high. This makes it essential to identify and support talent among disadvantaged groups.
SME experts for various disadvantaged groups, stakeholders, and experts from LEADER groups may get involved in this journey under TASK4ISI. The main target groups are women, young people, and individuals with physical or non-physical disabilities. The latter group requires a non-traditional approach to enterprise development, as their needs are more diverse than those of larger disadvantaged groups like women.
Nonetheless, the lack of enterprises in these regions should push us to develop specialized training programs to identify and train people with disabilities in cooperation with both international and national TASK4ISI stakeholders. People with disabilities should be a priority for two key reasons:
- They remain an untapped resource in enterprise development.
- A lot of practically useful potential is still locked in among those who have not been trained or supported in uncovering their talents and integrating their potential and skills into the economy and society.
This publication reflects the views of the author(s) only. The programme authorities are not liable for any use that may be made of the information contained herein.