Youth entrepreneurship as a tool for growth

Pro-Youth International Conference

Tallinn, 30.08.2011 Domina Inn Ilmarine Conference Center

speaker: Imbesi Antonino

youth self-entrepreneurship in Italy

Law n.185/2000

The decree 185, approved in date 21.04.2000 and published on the Official Gazette n.156 in date 06.07.2000), promotes the development of self-entrepreneurship (Title I of the decree) and self-employment (Title II of the decree) in economically disadvantaged areas of our Country (Italy).

The law

Invitalia Spa (the National Agency for inward investment and business development) promotes, through self-employment facilitation, creation and enterprise development in depressed areas of the country through the following several measures:- Chapter I: Production of goods and services to enterprises- Chapter II: Provision of services - Chapter IV: Social cooperatives.

Title I - Self-entrepreneurship

The incentives can be used both to set up new companies for the expansion of existing businesses.

CREATION OF NEW COMPANIES The incentives are aimed at new companies (including cooperatives of production and labor) composed in a numerical majority and capital by young people aged between 18 and 35 years, residents in the areas of law application at the date of 1st January 2000 or within 6 months prior to the date of receipt of the application. Also the legal, administrative and operational site of the company of the above must be located in one of the territories facilitated.

EXPANSION OF EXISTING BUSINESSES The incentives are aimed at companies (including cooperatives of production and labor) that meet the following requirements: - be good economically and financially- have started their activity at least 3 years before the date of receipt of the request - be in possession of the age and residence requirements of members and location of the headquarters, operations and administration site of the company at the date of receipt of the application and in the two previous years.

Chapter I: Production of goods and services to enterprises

The business projects may include: - the production of goods in agriculture, industry and trade - the provision of services to businesses (public administrations are not considered businesses).

Constraints The business activities planned in the project must be carried out easier for a minimum period of 5 years from the date of real start of the business. For a similar period of time should be maintained the localization of the initiative (legal, administrative and operational site) in the territories facilitated.

Attention The following sectors are excluded: trade, social and health care, steel, shipbuilding, synthetic fibers and the automotive industry. In addition, projects in the field of agricultural production and processing of agricultural products must be compatible with the provisions contained in th regiona RDP (Rural Development Plan).

Chapter I: What you can do

Can be financed business projects involving investments of up to 2.582.000 euros.

It is possible to obtain1. Funding for the investmentThey consist of grants and low interest loans, granted within the limits set by the European Union. Appropriately modulating the amount of the grant and low loan, the funding can arrive at: - 80-90% in the South of Italy- 60-70% in the North or Central Italyin accordance with EC Regulation No 800/2008 of 6 August 2008 or under the de minimis rule.

2. Funding for management. They consist of grants in respect of de minimis threshold, to cover operating costs related to start-up phase of the initiative facilitated. For projects in the field of agricultural production facilities are planned for operating expenses.

3. Funding for training and / or technical assistance. They consist of grants in respect of de minimis threshold to cover the costs of training, specific and/or general, in sectors other than agriculture, and technical assistance for the agricultural sector in order to foster the growth of entrepreneurial young people in new businesses.

Chapter I: How much and what funds

Chapter II: Provision of services

Also in this case the incentives can be used both to set up new companies for the expansion of existing businesses.

CREATION OF NEW COMPANIES Also in this case the incentives are aimed at new companies (including cooperatives of production and labor) composed in a numerical majority and capital by young people aged between 18 and 35 years, residents in the areas of law application at the date of 1st January 2000 or within 6 months prior to the date of receipt of the application. Also the legal, administrative and operational site of the company of the above must be located in one of the territories facilitated.

EXPANSION OF EXISTING BUSINESSES Also in this case the incentives are aimed at companies (including cooperatives of production and labor) that meet the following requirements: - be good economically and financially- have started their activity at least 3 years before the date of receipt of the request - be in possession of the age and residence requirements of members and location of the headquarters, operations and administration site of the company at the date of receipt of the application and in the two previous years.

Chapter II: What you can do

The business projects could include the provision of services in the following areas:- Use of cultural heritage (excluding those from the State)- Tourism- Maintenance of civil and industrial products (excluding routine maintenance);- Environmental protection- Technological innovation- Agriculture, agro processing and marketing of products.

Constraints Also in this case the business activities planned in the project must be carried out easier for a minimum period of 5 years from the date of real start of the business. For a similar period of time should be maintained the localization of the initiative (legal, administrative and operational site) in the territories facilitated.

Chapter II: How much and what funds

Can be financed business projects involving investments of up to 516.000 euros.

It is possible to obtain1. Funding for the investmentThey consist of grants and low interest loans, granted within the limits set by the European Union. Appropriately modulating the amount of the grant and low loan, the funding can arrive at: - 80-90% in the South of Italy- 60-70% in the North or Central Italyin accordance with EC Regulation No 800/2008 of 6 August 2008 or under the de minimis rule.

2. Funding for management. They consist of grants in respect of de minimis threshold, to cover operating costs related to start-up phase of the initiative facilitated.

3. Funding for training.They consist of grants in respect of de minimis threshold to cover the costs of training, specific and/or general, in order to foster the growth of entrepreneurial young people in new businesses.

Chapter IV: Social cooperatives

The benefits can be given to social co-operatives type b), in which disadvantaged people - according to Law n.381/91 art.4 - must be at least the 30% of the workers of the cooperative and, compatibly with their subjective state, to be members of the cooperative.Cooperatives must be entered in the register kept by the Chambers of Commerce.

May apply for the grant:- newly established cooperatives, in which, apart from the disadvantaged members, if without subjective requirements on age and residence, the team of the cooperative must be composed in a numerical majority and capital by young people aged between 18 and 35 years, residents in the areas of law application at the date of 1st January 2000 or within 6 months prior to the date of receipt of the application.- cooperatives already in existence and operating, in which all the component members are not disadvantaged in possession of the following requirement: residence in the areas of law application at the date of 1st January 2000 or within 6 months prior to the date of receipt of the application.

Of course also the legal, administrative and operational site of the cooperative of the above must be located in one of the territories facilitated.

THOSE WHO DO NOT PARTICIPATE. social cooperatives type a) that those manage the health and social services and education.

Chapter IV: What you can do

The business projects may include: - the production of goods in agriculture, industry and trade - the provision of services to businesses (public administrations are not considered businesses).

Constraints The business activities planned in the project must be carried out easier for a minimum period of 5 years from the date of real start of the business. For a similar period of time should be maintained the localization of the initiative (legal, administrative and operational site) in the territories facilitated.

Attention The following sectors are excluded: trade, social and health care, steel, shipbuilding, synthetic fibers and the automotive industry. In addition, projects in the field of agricultural production and processing of agricultural products must be compatible with the provisions contained in th regiona RDP (Rural Development Plan).

Chapter IV: How much and what funds

Can be financed business projects involving investments of up to:- 516.000 euros for the newly established social cooperatives - 258.000 euros for social cooperatives have already begun.

It is possible to obtain1. Funding for the investmentThey consist of grants and low interest loans, granted within the limits set by the European Union. Appropriately modulating the amount of the grant and low loan, the funding can arrive at: - 80-90% in the South of Italy- 60-70% in the North or Central Italyin accordance with EC Regulation No 800/2008 of 6 August 2008 or under the de minimis rule.

2. Funding for management. They consist of grants in respect of de minimis threshold, to cover operating costs related to start-up phase of the initiative facilitated. For projects in the field of agricultural production facilities are planned for operating expenses.

3. Funding for training and / or technical assistance.They consist of grants in respect of de minimis threshold to cover the costs of training, specific and/or general, in sectors other than agriculture, and technical assistance for the agricultural sector in order to foster the growth of entrepreneurial young people in new businesses.