Erasmus for Young Entrepreneurs Global – Preparatory Action

Deadline: Sep 23, 2020  
CALL EXPIRED

1. INTRODUCTION – BACKGROUND

Small and medium-sized enterprises (SME) are a central element in the political guidelines of the new Commission President Ursula Von der Leyen. Whereas they are considered as crucial engines for growth and job creation, their competitiveness is affected by a limited exploitation of international opportunities and innovation prospects in the Single Market and beyond. For this reason, the new Commission has come forward with an ambitious SME strategy including important actions for the internationalisation of European SMEs.

Legal framework

In June 2008, the European Commission adopted the ‘Small Business Act’ for Europe1 (SBA), recognising the central importance of small and medium-sized enterprises in the EU economy and providing a comprehensive SME policy framework for the EU and its Member States. The SBA aims at improving by policy makers the overall approach to entrepreneurship, to irreversibly anchor the ‘Think small first’ principle in policy-making from regulation to public service, and to promote the growth of SMEs by helping them tackle those problems hampering their development.

Principle I of the SBA sets out to ‘create an environment in which entrepreneurs can thrive and entrepreneurship is rewarded’. As a concrete follow-up to this aim in 2008, the Commission launched the pilot project ‘Erasmus for Young Entrepreneurs’ (EYE). It operates on the basis of call for proposals whereby Intermediary Organisations (IOs) are selected to manage the programme locally. After several calls for proposals, which showed promising results, the action was turned into a more consolidated programme, under the Entrepreneurship and Innovation Programme. In 2014, the Council and the European Parliament adopted the Programme for the Competitiveness of Enterprises and Small and Medium-sized Enterprises2 (COSME) that includes the mobility of new entrepreneurs among the actions to promote entrepreneurship. The COSME Programme (2014-2020), aims to promote growth and to strengthen the competitiveness and sustainability of enterprises in the European Union.

In November 2016, the European Commission adopted a communication on "Europe's next leaders: the Start-up and Scale-up Initiative"3. This communication confirms among other things the importance of connecting start-ups with the right partners in order to simplify their life. In order to connect start-ups with business partners, in 2017, the Commission launched, on the basis of the European Parliament’s proposal, a number of pilot measures, including the extension of the Erasmus for Young Entrepreneurs Programme, the Erasmus for Young Entrepreneurs Global4.

Given the positive results of the initial pilot measure, during the course of 2019, the European Parliament approved the extension of the Erasmus for Young Entrepreneurs Global pilot project with a preparatory action (financing decision with budget line 02 02 77 41), which is the subject of this call for proposals. The final legal basis of the preparatory action was adopted by the Commission on 14 April 2020 (Commission Decision C(2020) 2083).

In March 2020, the European Commission adopted its new SME Strategy for a sustainable and digital Europe5, where it reiterates the importance of improving access to markets for European SMEs, start-ups and entrepreneurs on a European and global scale. Among the key actions identified to achieve this objective, the Commission lists the extension of the Erasmus for Young Entrepreneurs Global scheme. Lastly, the future COSME Programme (2021-2027) foresees further funding for the Erasmus for Young Entrepreneurs under the new Single Market Programme.

Policy context

This call for proposals concerns the implementation of a preparatory action of the geographical expansion of the current ‘Erasmus for Young Entrepreneurs’ (EYE) programme to a number of countries and territories outside the European Union, more specifically to Canada, Israel, Singapore, South Korea, Taiwan, and the USA.

The proposed action is a one-way mobility scheme for young innovative European entrepreneurs with a duration of 1 to 3 months in targeted non-EU hosting countries and territories. It will build on the implementation experience from the Erasmus for Young Entrepreneurs (EYE) programme6.

 

2. OBJECTIVE(S) – THEME(S) – PRIORITIES

The overall objective of this call for proposals is to support new or aspiring European entrepreneurs in the crucial phase of establishing, running and growing their business by working together with an experienced entrepreneur from a country outside the Europe.

New Entrepreneurs should be able to develop their entrepreneurial skills, international outlook and their competitiveness. Through this geographical extension of the ‘Erasmus for Young Entrepreneurs’ programme, cross-border transfer of knowledge and experience, entrepreneurial culture and entrepreneurship shall be fostered even further.

The specific objectives are:

1. To foster exchange of entrepreneurs from EU countries and countries and territories outside Europe: Canada, Israel, Singapore, South Korea, Taiwan, and the USA;

2. To provide on-the-job-training for New Entrepreneurs (NE) with established Host Entrepreneurs (HE) in small and medium-sized enterprises elsewhere in non-EU countries and territories, in order to facilitate a successful start-up, scale-up and development of their business ideas;

3. To foster sharing of experience and information between entrepreneurs on the obstacles and challenges of starting, developing and growing their businesses;

4. To enhance market access and identification of potential partners for new European businesses in Canada, Israel, Singapore, South Korea, Taiwan, and the USA.

The purpose of this call is to select 3 consortia, which will recruit Host Entrepreneurs from at least 3 countries or territories among Canada (max. 2 provinces can be proposed by applicant)7, Israel, Singapore, South Korea, Taiwan, the USA (max. 2 States can be proposed by applicant), and manage their successful exchanges with at least 100 New Entrepreneurs (per applicant) from the European Union.

Tasks / Work Packages

The activities to be implemented under this call are detailed in the five work packages as described below.

WP 1

Management of the programme, networking and reporting (core task)

(a) management, quality control and evaluation

(b) active networking with potential host organizations and multipliers in the target countries

(c) reporting

WP 2

Promotion of the programme and recruitment of Host Entrepreneurs

(d) promotion of the programme

(e) preparation of a promotion booklet based on the results of the project and on success stories

(f) enrolment of Host Entrepreneurs

WP 3

Relationship building

(g) assessing applications from Host Entrepreneurs (core task)

(h) building relationships between New Entrepreneurs and Host Entrepreneurs

WP 4

Relationship management

(i) financial support to the New Entrepreneurs (core task)

(j) preparation and follow up of the exchange

(k) linking New Entrepreneurs to the local entrepreneurial community

WP 5

Final evaluation of the project

(l) collection and analysis of feedback from entrepreneurs

a) Management, quality control and evaluation (WP1)

Applicants should describe the following:

•   How they will undertake the management of the project

•   The measures they will take to ensure that high quality standards are applied and that the aims are fulfilled.

•  How achievement of objectives will be monitored and what appropriate corrective measures will be done to ensure compliance with the requirements of the project.
•  The main risks that might be encountered and the corresponding mitigating measures (to be described in detail).

Within their project management planning the applicants are requested to plan for a kick off meeting (duration at least one day) where all project actors as well as the currently used IT tool8 will be introduced. Further project management plans should also include participation in 6 Network Meetings (usually taking place in February and September of each year, either in Brussels or another location in the EU) organised within the "Erasmus for Young Entrepreneurs" programme to enable all Intermediary Organisations9 of the EYE to meet, network and exchange best practices.

b) Active networking in the NE destination area (WP1)

Applicants should build links with the business community (start-ups, incubators/accelerators) in the NE destination countries and territories with the Local Intermediary Organisations of the current EYE programme with the aim of matching entrepreneurs. Applicants should report on how these links have been built and how successfully the business community in the destination countries and territories is collaborating. Applicants are encouraged to describe pre-existing business links with their target countries and territories in their application.

c) Reporting (WP1)

The selected applicants are expected to report regularly to the European Commission on activities performed, matching relationships, problems encountered, solutions implemented and resources spent. The reporting should happen in a technical progress report after 12 months of the programme, in a second technical progress report after 18 months and a third technical report after 24 months, and in a final report at the end of the action.

d) Promotion of the programme (WP2)

Applicants must describe the proposed communication and promotion measures to effectively raise awareness, disseminate information on the mobility scheme and reach a maximum number of potential Host Entrepreneurs. Communication activities should, in particular, target relevant business organisations and other bodies supporting businesses and start-ups, as well as other target audiences as appropriate, including local SMEs. These activities should be focused so as to ensure that the entrepreneurs who will subsequently apply to the programme will qualify for it and will show good motivation and commitment. Also, it should be made clear to potential participating HEs that the exchanges organised under the scheme are not internships, but entrepreneurial business exchanges.

Applicants should include in their proposal how they will attract Host Entrepreneurs from Canada (max. 2 Provinces), Israel, Singapore, South Korea, Taiwan, and the USA (max. 2 States) to participate in the project. Non-financial incentives such as special promotion opportunities for their companies on a project website may be one option.

An appropriate level of visibility of the EU's financial contribution to the project and link with the EYE programme will be required and should be clearly visible. The successful applicants must at least include a link to the programme’s website on their respective websites, promote the programme on their social media channels, and display the European Union logo in their communication tools for the programme10.

e) Preparation and presentation of a promotional booklet based on the results of the project and on success stories (WP2)

Based on the feedback analysis the successful applicants should prepare a final promotional booklet with success stories and results of the project. These results will be presented during a final event in Brussels, organized by the programme’s Support Office11. The beneficiaries will need to support the programme’s Support Office with the organization of the event and the preparation of its agenda.

f) Enrolment of Host Entrepreneurs (WP2)

Applicants should explain how they will engage Host Entrepreneurs to participate in the programme, and the specific channels and man-days used for this purpose.

The application must provide sufficient details of how many Host Entrepreneurs the applicant will engage to participate in the programme and when. Experience shows that not all recruited entrepreneurs will be matched. On average out of two entrepreneurs recruited, only one is matched within the project period.

Applicants should be well aware of the challenge of this task, as barriers can be expected from entrepreneurs who could potentially benefit from the programme: potential Host Entrepreneurs may consider that they do not have the time or underestimate the benefits they could derive from the exchange with the New Entrepreneur.

The proposal should contain enough information about access to and contacts with entrepreneurs that the applicants have, whether direct or indirect (via their own or other networks), and the kind of relationships that they maintain, giving supporting figures.

Applicants should also be aware that, when collecting application data from potential HEs, they will need to respect the provisions of the Erasmus for Young Entrepreneur's privacy statement12.

The New Entrepreneurs will enrol via the Erasmus for Young Entrepreneur's programme site13. Their eligibility for the project will be assessed by the active EYE programme Intermediary Organisations. The successful applicants will have access to the New Entrepreneurs’ profiles in view of finding a suitable match between them and the Host Entrepreneurs.

g) Assessing applications from Host Entrepreneurs (WP3)

The Commission has developed the Erasmus for Young Entrepreneurs online IT tool whereby New Entrepreneurs and Host Entrepreneurs apply for the EYE scheme. The HEs for this project will also have to apply via this IT tool. It will be necessary for the applicants for the present call to: support HEs in the application process14, screen HEs' applications and assess the HEs' willingness to mentor an NE, engage in the exchange (as it is not a mere internship for the New Entrepreneur), and to ensure that both sides will derive positive benefit for themselves from the collaboration.

Applicants are invited to describe how they would check the quality and ensure the eligibility of applications of Host Entrepreneurs.

Eligible Host Entrepreneurs are defined as experienced entrepreneurs, owners of an SME or people directly involved in entrepreneurship at SME management board level with a running business. They must fulfil the following criteria to participate in the programme:

•   Have more than 3 years of entrepreneurial experience in running a business (the 3 years can also be non-consecutive);

•   Reside and run a micro, small or medium-sized enterprise registered in one of the target countries or territories: Canada, Israel, Singapore, South Korea, Taiwan, the USA, according to the EU definition of an SME, as owners or members of the Board (not employees). The business can be in any sector.

  The successful applicants shall assess the above mentioned eligibility criteria, manage and follow-up on all applications received. Equally, the applicants should endeavour to avoid any discrimination for reasons of gender, sexual orientation, religion, race, colour, ethnic or social origin, genetic features or membership of a national minority.

h) Building relationships (WP3)

The process of successfully matching New and Host Entrepreneurs is a key element of the mobility scheme and it is implemented by using the Erasmus for Young Entrepreneurs online IT tool where all approved NE and HE’s profiles are available. The so-called ‘matching’ process will be considered successful if it leads to being assessed as a ‘successful relationship’ by the two entrepreneurs in the final feedback questionnaire.

The applicants are invited to describe how they plan to identify proactively the best matches, support contacts and monitor relationships before and during the stay abroad. After signature of the grant agreement, the successful applicants will receive initial training for the IT tool database together with the IT tool manual.

Applicants should note that, any proposed match between New and Host entrepreneur will undergo a quality check whereby the eligibility of entrepreneurs to participate in the programme and their commitment are verified by the European Commission. The check will be done in the IT Tool.

i) Financial support to New Entrepreneurs (WP4)

Once the relationship has been agreed, the successful applicant has to ensure that both parties involved (New and Host entrepreneurs) sign an agreement related to the exchange (this is done in the IT Tool). In addition, the New Entrepreneur and the successful applicant must sign a contract specifying the tasks that will be carried out during the exchange, responsibilities, financial conditions and legal implications (this step is done in the IT Tool and is accompanied by a hard copy). Applicants should describe how they would arrange payment to third parties describing among other: payment procedures, actors involved in payment, proposed payment schedule, incorporation of potential amendments (extension of exchanges) and handling of reports.

An applicant’s proposal should also include the payment of the following financial support to at least 100 New Entrepreneurs per consortium for participation in the project:

1) Cost to cover travel to the exchange destination:

•   In case of Israel, a lump sum of EUR 600

•   In case of Canada, Singapore, South Korea, Taiwan, the USA a lump sum of EUR 800

  2) Monthly lump sum to NEs of:

•   EUR 900 in case of Canada

•   EUR 900 in case of Israel

•   EUR 1.000 in case of Singapore

•   EUR 900 in case of South Korea

•   EUR 700 in case of Taiwan

•   EUR 1.000 in case of the USA

to cover extra costs linked to the stay abroad.

The minimum duration of the stay abroad is 1 month and the maximum duration is 3 months. Fragmented stays are allowed. However, the cost of travel will only be paid once per participant. New Entrepreneurs can only participate once in this project. Host Entrepreneurs can host several New Entrepreneurs consecutively.

The purpose of the financial assistance provided to New Entrepreneurs is to cover part of the lodging, subsistence and travel costs incurred for the exchange. The successful applicants are expected to provide the financial assistance to the New Entrepreneurs, provided that the relationship between the New and the Host Entrepreneur complies with the rules. The successful applicants will be responsible for correct management of this financial assistance. The applicants to the call should describe how they intend to organise the management and control of this financial assistance in an efficient and effective way, including avoidance of any financial abuse.

j) Preparation and follow up of the exchange (WP4)

In relation to the preparation and follow up of the exchange the successful applicants are expected to offer local and remote assistance to both, visiting New Entrepreneurs during their stay with Host Entrepreneurs, as well as to Host Entrepreneurs themselves.

Applicants are asked to describe how they will assist Host Entrepreneurs prior to New Entrepreneurs arrival, and what support they will offer to New Entrepreneurs during the stay with their Host Entrepreneurs (e.g. for issues concerning visa, accommodation, visit tour, networking, etc.). They should also describe how they will follow up the exchanges, and the mechanisms to be put in place to avoid problems and potential conflicts.

Furthermore the applicants are asked to describe how they will assist New Entrepreneurs prior to and during their stay, especially by helping them integrate into the local business ecosystem and get to know the key players in their area (e.g. supplying information on important business related subjects, such as business and contract law, an overview on the country or territories specific market and economy); making sure that the New Entrepreneur benefits from a visiting tour where he/she gets to know relevant local actors in his/her business field.

k) Linking New Entrepreneurs to the local entrepreneurial community (WP4)

Successful applicants should ensure that NEs are given the possibility to regularly network with other entrepreneurs in addition to their HEs. This immersion in the ‘cloud’ may for example take the form of participation in pitching sessions, investment events, visit tours, etc. and should represent maximum 20% of the time spent in the destination.

The applicants for this call should further describe how they will foster networking between the participating NEs themselves.

l) Collection and analysis of feedback from entrepreneurs (WP5)

The applicants should describe how they intend to organise the continuous reporting of participants in an efficient and effective way (the process of collecting the final feedback questionnaires is incorporated in the IT tool). The applicants should propose an effective system for analysing the feedback received from participating entrepreneurs, including practical aspects like finding an accommodation in the host country or territories, calculating the cost of life in the host country, administrative requirements with local authorities, etc.

 

3. TIMETABLE

Scheduled start date for the action: 14th March 2021

Maximum duration of action is: 36 months

No applications will be accepted for projects scheduled to run for a longer period than that specified in this call for proposals.

The period of eligibility of costs will start at the earliest on the day the agreement is signed by the last of the parties. If a beneficiary can demonstrate the need to start the action before the agreement is signed, the expenditure may be eligible as from a date before the agreement is signed. Under no circumstances can the eligibility period start before the date of submission of the grant application.

 

(a) Publication of the call

08/07/2020

(b) Deadline for submitting applications

23/09/2020 – 17.00 Brussels time

(c) Evaluation period

October-December 2020

(d) Information to applicants

January 2021

(e) Signature of grant agreement(s)

February 2021

 

4. BUDGET AVAILABLE

The total budget earmarked for the co-financing of projects under this call for proposals is estimated at EUR 2.000.000.

The Commission expects to fund 3 proposals.
Maximum EU financing amount per project: EUR 665 000.

The maximum EU financing rate is set to 90% of total eligible costs, with 100% of third party financing and 80% of all other cost items.

The maximum EU financing per New Entrepreneur is the following: 1) Cost to cover travel to the exchange destination:

•   For Israel a lump sum of EUR 600

•   For Canada, Singapore, South Korea, Taiwan, the USA a lump sum of EUR 800 2) Monthly lump sum of:

•   EUR 900 in case of Canada

•   EUR 900 in case of Israel

•   EUR 1.000 in case of Singapore

•   EUR 900 in case of South Korea

•   EUR 700 in case of Taiwan

•   EUR 1.000 in case of the USA

for a maximum of three months to cover extra costs of the stay abroad. The maximum contribution per New Entrepreneur can thereby be EUR 3.800,-

Proposals requesting EU co-financing above either of the two above-mentioned maxima will not be eligible.

The Commission reserves the right not to distribute all the funds available.

 

5. ADMISSIBILITY REQUIREMENTS

In order to be admissible, applications must be:

•   applications must be sent no later than the deadline for submitting applications referred to in section 3;

•   applications must be submitted in writing (see section 14), using the application form and electronic submission system available at call webpage;

•   applications must be drafted in one of the EU official languages. If your proposal is not in English, a translation of the full proposal would be of assistance to the evaluators. An English translation of an abstract may be included in the proposal;

•   applications must be submitted in conformity with the call specifications;

•   projects must be strictly non-profit-making and their immediate objective must be

  non-commercial;

•   applications must respect the maximum rate for EU co-financing;

•   applications must respect the maximum amount for EU co-financing;

•   applications must respect the maximum duration of projects;

•   applications must respect the requirements set for the start date;

•   applications may not include contributions in kind as part of their co-financing.

  Failure to comply with those requirements will lead to rejection of the application.

 

6. ELIGIBILITY CRITERIA

Applications must comply with all of the eligibility criteria set out in this section.

6.1. Eligible applicants

Applications must be submitted by a legal person. Several applicants, submitting a joint proposal should choose within their midst a lead organisation, referred to as the coordinator. The coordinator and other applicants must satisfy the same eligibility criteria.

Proposals may be submitted by any of the following applicants:

•   Public entities responsible for or active in the fields of economic affairs, enterprise, business support or related issues;

•   Chambers of commerce and industry, chambers of handicrafts or similar bodies;

•   Business support organisations, start-up centres, incubators, technology parks, etc.;

•   Business associations and business support networks;

•   Public and private entities offering business support services.

Natural persons are not eligible.

Corporate bodies must be properly constituted and registered under the law. If a body or organisation is not constituted under the law, a physical person must be designated to provide the legal responsibility.

Legal entities having a legal or capital link with applicants, which is neither limited to the action nor established for the sole purpose of its implementation, may take part in the action as affiliated entities, and may declare eligible costs. For that purpose, applicants shall identify such affiliated entities in the application form. The affiliated entities will have to comply with the eligibility and exclusion criteria.

Several entities that form together one entity, whether or not this entity is established for the purpose of implementing the action, may apply as a sole beneficiary. The entities will be considered as affiliated entities, which each will have to comply with eligibility, exclusion and selection criteria.

The participation of the same legal entity in more than one proposal is not permitted. Proposals with a member that participates in more than one consortium submitting a project proposal are not eligible and will be excluded from the call. Therefore applicants are encouraged to take the necessary measures to ensure that their partners will not participate in more than one proposal.

Country of establishment

Only applications from legal entities established in the following countries are eligible:  EU Member States;

Other requirements

Applicants can be single organizations or consortia. All applicants should cover at least 3 host countries or territories among Canada (max. 2 Provinces can be covered by each applicant)15, Israel, Singapore, South Korea, Taiwan, the USA (max. 2 States can be covered by each applicant).

 

(TRUNCATYED)

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