Inclusive Entrepreneurship Policies,

Country Assessment Notes

Austria, 2016
Acknowledgements

This note is part of a series of notes on country-level inclusive entrepreneurship policies and programmes prepared by the Organisation for
Economic Co-operation and Development (OECD) for the European Commission. These notes provide an overview of current and planned
policy actions and identify some actions that could be implemented to address gaps in the current support offering, or improve current
offerings.

This note was prepared by Christina Enichlmair and Eva Heckl of the Austrian Institute for SME Research. David Halabisky and Sandra
Hannig of the Local Economic and Employment Development (LEED) Programme of the OECD undertook additional drafting and editing of
the note under the direction of Dr. Jonathan Potter, also of the LEED Programme.

A steering group was consulted during the preparation of this note. The steering group was co-led by the OECD and Tanja Neubauer and
Maria Christine Zoder of the Federal Ministry of Science, Research and Economy. Other members of the steering group included Sylvia
Vana (Federal Ministry of Science, Research and Economy), Johannes Lindner (Impulse Centre for Entrepreneurship Education), Marianne
Dittrich (Public Employment Service Austria), Gritta Grabner (Austrian Economic Chamber), Melanie Wawra (Vienna Economic Chamber),
Beate Wagner (Junior Achievement Austria), Stephan Hoerandner (Junior Achievement Austria), Birgit Worm (ibw Austria - Research &
Development in VET), Bettine Fuhrmann (WU Wien) and Dr. Bernd Litzka (Austrian Business Angels Network).

This note benefited from feedback and suggestions provided by Guy Lejeune of the Directorate-General for Employment, Social Affairs and
Inclusion of the European Commission.

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2
 FOREWORD

Inclusive entrepreneurship policies aim to offer all people an equal opportunity to create a
sustainable business, whatever their social group. This is an important requirement for achieving the
goal of smart, sustainable and inclusive growth set out in the Europe 2020 strategy. It is also a means
to respond to new economic challenges, to create jobs and to fight social and financial exclusion.
Among the key targets of inclusive entrepreneurship policies and programmes are women, youth, older
people, the unemployed, migrants and people with disabilities, who all continue to face challenges in
the labour market and are under-represented or disadvantaged in entrepreneurship activities. ‘The
Missing Entrepreneurs’ series of publications of the Organisation for Economic Co-operation and
Development (OECD) and the European Union discuss how public policies and programmes can
support inclusive entrepreneurship. This includes refining regulatory and welfare institutions,
facilitating access to finance, building entrepreneurship skills through training, coaching and
mentoring, strengthening entrepreneurial culture and networks for target groups, and putting strategies
and actions together for inclusive entrepreneurship in a co-ordinated and targeted way. Governments
are increasingly recognising the challenge of inclusive entrepreneurship, but there is still much to do to
spread good practice.

The self-employment rate has been stable over the past decade but was below the European Union
average in 2015 (11.0% vs. 14.1%). However, people in Austria were more likely than the European
Union average to be involved in starting or managing a new business between 2010 and 2014. This
was particularly true for women. Policy objectives and related measures are encompassed within the
Work Programme of the Austrian Government 2013-18 (Arbeitsprogramm der österreichischen
Bundesregierung 2013-2018), including the Austrian entrepreneurship strategy “Start-up Country”
(Gründerland-Strategie). The latter, however, does not explicitly address key social target groups other
than youth, leaving room for improvement. Entrepreneurship education should also be further
strengthened within the education system and incentives to start-up should be intensified especially for
older people.

This note is part of a series of annual country assessments prepared by the OECD in collaboration
with the Directorate-General for Employment, Social Affairs and Inclusion of the European
Commission on the state of inclusive entrepreneurship policies and programmes in each European
Union Member State. Each note provides an overview and assessment of policies and programmes that
support people from under-represented and disadvantaged groups in business creation and self-
employment and suggests policy actions to address gaps in the support system and to improve the
quality of available support offers. The notes cover national-level policies and programmes and, where
relevant, sub-national initiatives and actions by the non-governmental sector.

The notes are part of a wider programme of work by the OECD and the European Commission
that includes ‘The Missing Entrepreneurs’ publications, a series of Policy Briefs on specific target
groups, policies and issues, country reviews of youth entrepreneurship and women entrepreneurship,
and the production of online policy guidance. For more information please refer to:
http://www.oecd.org/employment/leed/inclusive-entrepreneurship.htm.

3
 TABLE OF CONTENTS

KEY MESSAGES .......................................................................................................................................... 5

1. INCLUSIVE ENTREPRENEURSHIP OBJECTIVES AND TARGETS.................................................. 5
2. KEY INCLUSIVE ENTREPRENEURSHIP INDICATORS .................................................................... 6
3. ASSESSMENT OF CURRENT AND PLANNED INCLUSIVE ENTREPRENEURSHIP
POLICIES AND PROGRAMMES .............................................................................................................. 10
3.1. Policy framework ............................................................................................................................... 10
3.2. Government regulations ..................................................................................................................... 11
3.3. Financing entrepreneurship ................................................................................................................ 12
3.4. Entrepreneurship skills ....................................................................................................................... 14
3.5. Entrepreneurial culture and social capital .......................................................................................... 15
4. POLICY RECOMMENDATIONS .......................................................................................................... 16
ANNEX: METHODOLOGY ....................................................................................................................... 18

4
 KEY MESSAGES

 A wide range of entrepreneurship policies and programmes are in place to support youth, women and
migrants in entrepreneurship. The majority of these tailored entrepreneurship initiatives seek to
facilitate the acquisition of entrepreneurship skills and to improve access to start-up finance.

 The self-employment rate has been stable over the last 10 years at approximately 11%. This was
below the EU average, which stood at 15% in 2015. In contrast, the proportion of people involved in
starting and managing new businesses over the 2010-14 period was above the European Union
average (9% vs. 7%). Men (11%) and youth (10%) were the most active social target groups, while
women (8%) and older people (5%) were less active.

 Tailored entrepreneurship policies and programmes are advanced in their development in Austria.
Furthermore, policies and programmes tend to be well-evaluated. However, the impact of these policy
actions could be greater if there was a stronger policy objectives and clear targets to help prioritise
actions and distribute resources.

 While inclusive entrepreneurship offers are generally strong and reasonably comprehensive, there is
room to strengthen the support system for these entrepreneurs. The following key recommendations
are offered: (i) raise awareness of existing tailored measures and initiatives; (ii) strengthen the linkages
between financial supports and entrepreneurship training and coaching and mentoring; (iii) develop
more support for senior entrepreneurs; and (iv) strengthen and extend entrepreneurship education
within the formal school system.

1. INCLUSIVE ENTREPRENEURSHIP OBJECTIVES AND TARGETS

The Work Programme of the Austrian Government 2013-18 (“Arbeitsprogramm der

österreichischen Bundesregierung”) lays out the principles, measures and actions to be implemented
by the government during this period, including actions that support Europe 2020 targets
(Bundeskanzleramt, 2013). The programme covers a wide range of policy issues, ranging from growth
and employment to education, European and international affairs, and state reforms and democracy.
Business creation is also covered, with objectives including boosting the number of start-ups,
improving access to finance for entrepreneurship (e.g. loan guarantees, venture capital, equity),
reducing bureaucracy and administer barriers for enterprises, supporting entrepreneurship in rural
areas, and addressing business succession challenges. Groups that are under-represented or
disadvantaged in the labour market (i.e. women, youth, the unemployed, seniors, and migrants) are
covered with respect to labour market and employment challenges; however, they are not specifically
mentioned in relation to business creation.

Supporting business creation is also a key objective put forward in the economic policy
programme outlined in the annual Economic Report of the Federal Ministry of Science, Research and
Economy (BMWFW). In 2015, the Ministry launched a “Start-up Country Strategy” (“Gründerland-
Strategie”), which provides a road map of 40 measures related to innovation, business financing,
entrepreneurship networks, regulations and infrastructure to make Austria the most “start-up-friendly”
country in Europe. It also seeks to foster an entrepreneurial spirit among children and young people,

5
and teach entrepreneurial thinking in education. Other measures include instruments to increase
innovation activities, tools to improve financing and to reduce red tape for new start-ups. Key social
target groups of inclusive entrepreneurship (e.g. women, youth, older people, immigrants, the
unemployed) are not explicitly addressed in this strategy.

The objective to foster entrepreneurship among specific groups such as young people, migrants,
women and people with disabilities is, however, highlighted in the report on the state of small and
medium-sized enterprises (SMEs) of the Industrial Federation in Austria (“Mittelstandsbericht”). It is
prepared biannually by the Federal Ministry of Science, Research and Economy (BMWFW) and
presented to the National Assembly. The report describes recently implemented measures to promote
SMEs, structured along the 10 principles of the Small Business Act (SBA) and describes the relative
performance of Austria in achieving the SBA goals in comparison with the other European Union
member states as well as recommendations on where and how to improve performance.

In addition to these broad strategies, there are several group-specific strategies that seek to outline
how entrepreneurship and entrepreneurial behaviour can be boosted within the respective groups. For
example, the Austrian Youth Strategy (“Österreichische Jugendstrategie”), which is in line with the
“EU Youth Strategy” 2010-18, aims to address youth inclusion into society and the labour market,
including strategic goals related to increasing start-ups by youth, entrepreneurial learning and
entrepreneurship education. Similarly, the Austrian Strategy for Lifelong Learning (“LLL:2020”)
outlines action to improve learning across all stages of life. One of the cross-cutting competences
highlighted in the strategy is “entrepreneurial competences”, which seeks to build on the previous
actions related to entrepreneurship education.

Several National Action Plans (NAPs) have been prepared by the government for the integration
of key social target groups into society and the labour market. The Federal Ministry of Education
(BMB) currently prepares a national action plan up to 2025 for entrepreneurship education for youth.
Furthermore, there are national action plans (NAP’s) in the field of gender equality, integration, and
disabilities: The NAP for gender equality (“NAP Gleichstellung”) from 2010 calls for better access to
finance for women who want to start a business, stronger support for start-ups led by women,
especially when granting loans, and empowering women as business founders. For instance, measure
no. 32 seeks to increase the maternity allowance for women entrepreneurs and farmers, with the goal
to improving the incomes of the self-employed1. The NAP for integration (“NAP Integration”) from
2010 explicitly calls for entrepreneurship support for migrants and long-term residents with a
migration background. In doing this, existing offers for the target groups shall be continued and
expanded. There is also the NAP for people with disabilities (“NAP Behinderung”) for 2012-20.
However, no specific measures to support entrepreneurship of this target group are mentioned there.

2. KEY INCLUSIVE ENTREPRENEURSHIP INDICATORS

The labour market has been strong in Austria over the last decade, despite the economic crisis.
Although the unemployment rate has increased slightly since 2011, it remains well below the average
for the European Union (Figure 1a).

1
This measure has already been implemented.

6
 Figure 1. Key inclusive entrepreneurship indicators

a. Unemployment rate, 2006-15 b. Self-employment rate, 2006-15

EU Average Austria Overall Men EU Average Austria Overeall Men
% Women Youth (15-24 years old) Older people (50-64 years old) % Women Youth (15-24 years old) Older people (50-64 years old)
12 20

18
10
16

14
8
12
6 10

8
4
6

4
2
2

0 0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

c. TEA Rate, 2010-14 d. Proportion of TEA that is necessity entrepreneurship, 2010-14

Austria EU25 Austria EU25
% %
12 30

10 25

8 20

6 15

4 10

2 5

0 0
Overall average Men Women Youth (18-30 years old) Older people (50-64 years old) Overall average Men Women Youth (18-30 years old) Older people (50-64 years old)

e. Proportion who expect to start a business in the next 3 years, f. Proportion who report that a fear of failure prevents them from
2010-14 starting a business, 2010-14

% Austria EU25 Austria EU25

%
25 60

50
20

40
15

30

10
20

5
10

0 0
Overall average Men Women Youth (18-30 years old) Older people (50-64 years old) Overall average Men Women Youth (18-30 years old) Older people (50-64 years old)

7
 g. Proportion who perceive that they have the skills to start a h. Proportion of new entrepreneurs whose products or services are
business, 2010-14 new to all or some customers and who have few or no businesses
offering the same products or services, 2010-14
Austria EU25 Austria EU25
% %
70 35

60 30

50 25

40 20

30 15

20 10

10 5

0 0
Overall average Men Women Youth (18-30 years old) Older people (50-64 years old) Overall average Men Women Youth (18-30 years old) Older people (50-64 years old)

i. Proportion of early-stage entrepreneurs who expect to create

more than 19 jobs in 5 years, 2010-14
Austria EU25
%
18

16

14

12

10

0
Overall average Men Women Youth (18-30 years old) Older people (50-64 years old)

Note: The self-employment rate is defined as the proportion of those in employment who are self-employed. The TEA rate is the
Total Entrepreneurial Activity rate, which is defined as the proportion of the population actively involved in pre start-up activities
and those who have started a new business within the last 42 months. The proportion of TEA that is necessity entrepreneurship
is the proportion of entrepreneurs involved in setting-up a new business or operating a business that is less than 42 months old,
who were motivated to start their business because they had no better options for work. Data for panels c, d, e, f, g, h and i were
pooled for the period 2010-14, producing an unweighted average. The EU25 average in panels c, d, e, f, g, h and i covers all
EU28 countries, except Bulgaria, Cyprus and Malta.
Source: Panels a and b contain data from Eurostat (2016), Labour Force Survey; Panels c, d, e, f, g, h and i contain data from
the 2010 to 2014 Global Entrepreneurship Monitor household surveys that were tabulated for the OECD (2016).

The self-employment rate has been stable over the past decade but was below the European Union
average in 2015 (11.0% vs. 14.1%) (Figure 1b). However, the Total Entrepreneurial Activities (TEA)
rate in Austria was above the European Union average for the 2010-14 period (Figure 1c), indicating
that people in Austria are more likely than the European Union average to be involved in starting or
managing a new business. These may seem contradictory but can be explained by the nature of the
measures: the self-employment rate measures the proportion of those working who are self-employed
(i.e. a stock) while the TEA rate measures the proportion of those starting and managing new
businesses (i.e. a flow). The level of “necessity” entrepreneurship is very low in Austria compared to
the EU average: Only 9.9% of Austrian entrepreneurs who were involved in setting-up a new business,
or operating a business that is less than 42 months old, were motivated to start their business because
they had no better options for work over the 2010-14 period (Figure 1d). This was substantially lower
than the EU average of 22.8%.

Austrians were slightly less likely to expect to create a new business in the future (Figure 1e) but
report that fear of failure is not a barrier (Figure 1f) and feel that they have the skills to be successful in
business creation (Figure 1g). Women, youth and older people were all more likely than the EU

8
average to believe that they had the skills and knowledge to start a business. While many entrepreneurs
operate businesses that offer new products and services, young Austrian entrepreneurs substantially
more likely than the EU average between 2010 and 2014 to offer new products and services to their
customers (30.8% vs. 23.0%) (Figure 1h). However, young entrepreneurs, between 2010 and 2014,
were much less likely than the EU average to expect to create at least 19 jobs over the next five years
(5.7% vs. 15.0%) (Figure 1i). Similarly, new women and older entrepreneurs were also less likely than
the EU average to expect to create a substantial number of new jobs.

In 2014, according to data on business demography, 40% of all active enterprises2 (sole
proprietorship) were led by women - a proportion that has increased continuously since 2007 (31%)
(Statistics Austria, 2014). However, the proportion of women among the business closures has risen
from 34% in 2007 to 46% in 2014. In 2014, the share of women among all business entries is already
at 53% (as compared to 36 % in 2007). Not only the business entry rate is above those of men (11% vs.
7%), but also the business exit rate (9% vs. 7%). The share of women among start-ups, defined as
young, fast-growing and innovative businesses, amounts to 15.5% (Fassl and Dömötör, 2015).

In 2015, 45.6% of the active members of the Austrian Federal Economic Chamber were women.3
Most women enterprises were in crafts and trades (57%)4 as well as tourism and leisure (42%),
followed by commerce (33%), information and consulting (26%), transport and communications
(14%) and industry (10%). Since 2015, in crafts and trades, a newly-found association in the field of
counselling and nursing services (“Personenberatung und Personenbetreuung”) is included –
approximately 80% of entrepreneurs in this field are women.

According to the Federal Economic Chamber, 19.6% of entrepreneurs in 2015 were between 55
and 64 years old, and 6.1% were 65 years old or older. Similarly, the Vienna Economic Chamber
(WKW) reports that 14.6 % of all entrepreneurs in Vienna were 60 years and older in 2015.

Between 1998 and 2016, approximately 75 000 unemployed people started a business within the
Business-Start-up Programme (“Unternehmensgründungsprogramm” UGP) by the Austrian Public
Employment Service (Arbeitsmarktservice AMS). The number of new business start-ups increased
from approximately 1 000 per year to approximately 5 000 per year currently. The proportion of
unemployed participants in the programme who started businesses was 75% in 2006, and increased to
84% in 2015 (OECD / European Union, 2016).

Data in the statistical yearbook on migration5 show that approximately 9% of migrants in Austria
are self-employed (agriculture excluded), which is about the same proportion than people without a
migration background (Baldaszti et al., 2016). According to the Vienna Chamber of Commerce
(WKW), in Vienna, approximately 40% of the businesses are owned by entrepreneurs with a migrant
background, with the main countries of origin being Slovak Republic, Romania, Poland, Bulgaria,
Germany, Hungary, Turkey and Bosnia, Croatia and Serbia (WKW, 2016).

2
A company is considered economically active if it achieved sales and / or had employees at any time between
1.1. and 31.12. of the reporting year, regardless of whether the company has passed the year or only
parts of it. In 2014, there have been approx. 404,000 active enterprises in Austria (reference number).
3
Every single person who is entitled to operate an independent business venture in crafts an trades, industry,
mining, finance, banking and insurance, transport, information and communication, broadcasting,
tourisms and leisure, as well as other services, is a member of the Federal Economic Chamber under
Austrian law.
4
46% without counting entrepreneurs in the field of counselling and nursing services (“Personenberatung und –
betreuung”)

9
 Data on entrepreneurs with disabilities in Austria is scarce. However, the online platform
Help.gv.at provides some insight on their website on grants for disabilities and it estimates that there
were approximately 3 700 people with a disability who were self-employed in 2012. Data from the
Vienna Economic Chamber (WKW) show that in Vienna there were approximately 750 entrepreneurs
with disabilities in 2013.

3. ASSESSMENT OF CURRENT AND PLANNED INCLUSIVE ENTREPRENEURSHIP

POLICIES AND PROGRAMMES

3.1. Policy framework

The Work Programme of the Austrian Government 2013-18 (Arbeitsprogramm der

österreichischen Bundesregierung 2013-18) promotes various measures of entrepreneurship and the
Austrian entrepreneurship strategy “Start-up Country” (Gründerland-Strategie) guides SME and
entrepreneurship policy overall. However, neither explicitly addresses key social target groups of
inclusive entrepreneurship.

In addition to these strategies, there are a number of initiatives that seek to support people from
under-represented and disadvantaged groups in business creation and self-employment. For example,
one of the eight key competences identified in the Austrian Lifelong Learning Strategy “LLL:2020” is
“entrepreneurial competences” – it is a cross-cutting issue in all ten action lines that are support
learning in all phases of life, from youth, professional career, civil engagement to post-professional
life. One of the key target groups of “LLL:2020” is young people and since 2004, the strategy supports
entrepreneurship education in schools and awareness raising measures. Action Line 2 refers to
entrepreneurship as one of the eight key competences, outlining the measure: “Develop new curricula
(for all types of schools) which are consistently aimed at learning outcomes and sustainability, and
interdisciplinary teaching models which focus on key competences”. Moreover, Action Line 8
specifically focuses on entrepreneurship: “The concept of lifelong learning is a major element of
economic and labour market policy and promotes the competitiveness of companies as well as
employees’ opportunities in the labour market” (European Commission/EACEA/Eurydice, 2016).

Another strategy related to promoting entrepreneurship for youth, especially through the
education system, is the Austrian Youth Strategy (Österreichische Jugendstrategie). A core objective
of the Youth Strategy is the active inclusion of young people in society and the labour market. One of
the eight fields of action is “employment and entrepreneurship”, aiming at producing more company
founders under the age of 30”. The recommendations in this strategy call for more entrepreneurial
learning, an increased use of practice firms, and to increase the number of young people participating
in projects and becoming involved in voluntary work (European Commission/EACEA/Eurydice,
2016).

Another important policy initiative is the “Platform Entrepreneurship”, which was established in
2013 as a policy dialogue forum in response to the EU’s “Action Plan Entrepreneurship 2020”. The
platform focuses on measures for young people between 10 and 19 years old, but focuses on other
target groups such as women. It has two key objectives. First, it seeks to identify measures for priority
action 1 (“Entrepreneurial Education to promote the growth and creation of businesses”) and priority
action 3 (“Role models and reaching specific target groups”) of the “Action Plan Entrepreneurship

10
2020”. Second, it aims to facilitate future collaborations and projects. This platform brings together
key entrepreneurship education stakeholders biannually, including the Ministry of Science, Research
and Economy (BMWFW), the Ministry of Education (BMB), the Federal Ministry of Families and
Youth (BMFJ), the Austrian Federal Economic Chamber (WKO), the Federation of Austrian Industry
(IV), and the Austrian National Bank (ONB).

There are also national action plans (NAPs) in the field of gender equality (“NAP
Gleichstellung”) and integration (“NAP Integration”), that call for actions to improve entrepreneurship
for women and migrants. A further national plan for entrepreneurship education addressing young
people is currently being prepared.

For the unemployed, tailored entrepreneurship support provided through the Business Start-up
Programme (“Unternehmensgründungsprogramm” UGP), which is operated by the Austrian Public
Employment Service (Arbeitsmarktservice AMS). The UGP seeks to support unemployed people in
sustainable business start-up.

In addition, there are several initiatives for migrants such as the project “Mentoring for Migrants”,
which was established in 2008 by the Austrian Federal Economic Chamber (WKO), the Austrian
Integration Fund (ÖIF) and the Public Employment Service (AMS). The programme is targeted at
immigrants to help them integrated into the labour market, either as employees or as self-employed.
There are also city-level initiatives such as “Migrant Enterprises”, which is implemented by the Vienna
Business Agency.

Overall, the promotion of entrepreneurship and the improvement of the attitude towards
entrepreneurship (generally) is a clear objective of the Austrian government. Apart from the target
group youth, entrepreneurship connected with the other target groups (women, migrants, older people,
and people with disabilities) is not explicitly mentioned in national strategies and action plans.
Usually, in Austria, programmes that support entrepreneurship, just like any other public programmes,
have to undergo systematic monitoring and regular evaluation. All of the above noted programmes are
well-evaluated and demonstrate a positive impact.

3.2. Government regulations

The Austrian statutory insurance system forms the basis of the social security system. It provides
health, pension and accident insurance. The provision of unemployment benefits, social care and
support further extends the social safety network. The main principles on which the Austrian social
security system is based are those of statutory insurance, solidarity and the self-administration of the
insurance providers. The social security system is mainly funded through a pay-as-you-go scheme,
which means that current pensions are mainly financed through contributions of the working
population. The rest is financed through general taxation.

According to economic branches and type of employment, there are 22 organisations that make
up the group of statutory insurance providers in Austria – they are responsible for health, pension and
accident insurance. One of these organisations is responsible for the social security of all self-
employed and entrepreneurs (except some medical branches), i.e. the Social Security Institution for
Trade and Industry (“Sozialversicherungsanstalt der Gewerblichen Wirtschaft” SVA). In this context,
there is “particular support” (“Besondere Unterstützung”) for the self-employed who are in a difficult
situation:

11
  Unemployment: the self-employed are eligible to receive unemployment benefits if they have
paid voluntary unemployment insurance contributions for a specific amount of time before
closing their business.

 Interim benefits (“Überbrückungshilfe”) in case of severe, unpredictable events, e.g. long-

lasting illness, natural disasters.

 Support through SVA case managers if self-employed are in situations threatening their
business’ existence, e.g. a combination of health-related, medical and economic, professional
and social restrictions.

There are also measures that temporarily cover the loss of state income support for the
unemployed. The Business Start-up Programme (“Unternehmensgründungsprogramm” UGP) of the
Austrian Public Employment Service (Arbeitsmarktservice AMS) targets registered unemployed
persons, irrespective of receiving unemployment insurance benefits or not. The duration of UGP is
generally six months and is individually agreed upon between the potential entrepreneur and the AMS.
UGP training is provided at no charge, and an additional allowance is offered to cover living expenses.
The financial support is guaranteed for the duration of participation in the programme and extends to
two months beyond the start-up date to ensure that the foundation is stable and safeguarded in the long
term. Apart from that, UGP provides information on financial support and start-up support from other
organisations.

There have also been efforts to reduce administrative procedures for entrepreneurship, including a
reduction in social security contributions. These measures apply to all entrepreneurs and there are
currently no special provisions for entrepreneurs from under-represented or disadvantaged groups.

In 2010, the Austrian public administration launched a one-stop-shop Business Service Portal
called Unternehmensserviceportal (USP), which is a single entry point for businesses to interact with
the administration. By offering information and transaction services, it intends to help businesses to
fulfil their legal obligations and to reduce their administrative burdens.

There two regulatory measures that are aimed at women entrepreneurs. A female entrepreneur is
entitled to “maternity allowance for women entrepreneurs” (Wochengeld für Unternehmerinnen) to the
amount of EUR 52.69 (as of 2016) on a daily basis if she employs a correspondingly appropriate
worker at least four days per week, or to the amount of 20 hours per week to her own relief in the
claiming period. The total duration of the maternity leave (Mutterschutz) is eight weeks before birth
and eight weeks after birth. If the trade license of the women entrepreneur does not permit an auxiliary
force or if no temporary help can be found due to the local situation of the company, it is also possible
to not employ a helping hand and just receive the maternity allowance.

Instead of the maternity allowance, women entrepreneurs are allowed to make use of “operational
support” (Betriebshilfe). In each Austrian province, appropriately qualified replacement staff will be
provided by the regional Operational Support Association (“Betriebshilfeverein”), who carries out the
work in place of the women entrepreneur.

3.3. Financing entrepreneurship

There are numerous grants for business creation or business take-overs, at national and regional
levels, for all entrepreneurs. Examples include the start-up guarantee that supports the launch or take-
over of economically self-dependent small commercial enterprises (with the exception of tourism and

12
leisure industry) with a loan guarantee from the Austrian federal development bank (Austria
Wirtschaftsservice Gesellschaft mbH aws).

Grants are also used to support business creation by youth and people with disabilities. For the
youth a start-up grant of up to EUR 500 is available through the programme “Your Projects” (Eure
Projekte), which is implemented by the Ministry of Families and Youth (BMFJ) and the
Bundesnetzwerk Österreichische Jugendinfos. Another important grant programme for youth is “First
– Your Future. Youth Business.”, which is implemented by the Austrian federal promotional bank.

People with disabilities can apply for two different business start-up grants, which are offered by
the Federal Office of Social and Disability Affairs (Bundesamt für Soziales und Behindertenwesen).
The “Business start-up grant” (Zuschuss zur Begründung einer selbstständigen Erwerbstätigkeit) is a
one-time grant for the purpose of starting a business. It also covers personal living expenses. The
second grant is the “Grant to cover current disability-related additional expenses of entrepreneurs”
(Zuschuss zur Abgeltung eines laufenden behinderungsbedingten Mehraufwandes von
UnternehmerInnen). It supports self-employment by covering disability-related expenses. The grants
shall be used to hire a replacement worker in order to secure the existence of the company. The grant is
paid as monthly lump sum (EUR 251 in 2016). The compensation may be doubled in special
circumstances.

Microcredit is also available for Austrian entrepreneurs. One of the most important programmes
is “Microcredit” (Mikrokredit), which was established in 2010. It is open to all entrepreneurs who are
not employed and are debt free. The scheme was initiated by the Ministry of Labour, Social Affairs
and Consumer Protection (BMASK), with contributions from private banks. It is implemented by ÖSB
Consulting in co-operation with the Austrian federal development bank (aws), Erste Bank Group and
CARE. Evaluations of this programme have been generally positive.

There are also a number of different loan guarantee schemes, most notably awarded by the
Austrian federal development bank (aws). These loan guarantee products are generally open to all
entrepreneurs and are complemented with other supports such as business counselling. Loan
guarantees are also offered at the city level. In Vienna, the bank “Wiener Kreditbürgschafts- und
Beteiligungsbank AG” offers loan guarantees for Viennese enterprises. These guarantees can be
accessed for the financing of investments in new production structures (e.g. replacement and
expansion), relocation, operational start-ups and acquisitions, growth financing, internationalisation,
working capital financing, and down payments.

Business angel investment in entrepreneurs is supported through the programme “aws i2 Business
Angels”, which is implemented by the Austrian federal development bank (aws). It offers a match-
making service between equity-seeking entrepreneurs and private investors. This service is open to all
entrepreneurs. In addition, aws manages the “Business Angels Fund”, which provides financing for
selected business angels by doubling their equity for future investments. The private sector is also
active in in promoting and supporting business angel investment, notably the Austrian Angels
Investors Association (AAIA).

Another growing investment mechanism is crowdfunding. There are currently 12 national

crowdfunding platforms in Austria, specialised in different fields such as start-ups, creative industries,
innovation, regions, real estate, etc. Crowdfunding in Austria is unique in that the Alternative
Financing Act (Alternativfinanzierungsgesetz - AltFG) came into force in 2015, which provides a legal
basis framework for crowdfunding. There is a specific crowdfunding platform for the target group
youth in the frame of the platform “Start your project” (Starte dein Projekt), which is for students in
technical and vocational schools. The platform is part of an integrated education programme that was

13
developed by the bank Erste Group Bank AG, IFTE (Initiative for Teaching Entrepreneurship) and the
Vienna School Board (Stadtschulrat Wien).

3.4. Entrepreneurship skills

Information provision

The Business Start-up Service (“Gründerservice”) of the Austrian Federal Economic Chamber
(WKO) is an important source of information on business creation, succession and franchises. It also
provides information on available support programmes through more than 90 offices across the
country.

In addition, a number of actors provided tailored information on business creation for various
target groups. For women, the “Network Diversity” of the Vienna Economic Chamber (WKW)
provides tailored information on entrepreneurship (and also for other groups such as migrants, older
people, people with disabilities, LGBT people). Youth receive start-up information through
entrepreneurship education programmes, university initiatives (e.g. u:start, the alumni association of
the University of Vienna) and the “Start your project” initiative (Starte dein Projekt) (see section 3.3).
For older people, the Vienna Economic Chamber (WKW) published a brochure called “Naturally self-
employed” (Selbstverständlich Selbstständig), which includes good practice case studies on senior
entrepreneurs, information on pensions and additional income, issues regarding social insurance and
relevant contact points. Non-governmental organisations support these efforts, especially for smaller
target groups such as people with disabilities.

Entrepreneurship training

Entrepreneurship training is widely available in Austria, notably through the training institutes
Wirtschaftsförderungsinstitut Österreich (WIFI) of the Austrian Federal Economic Chamber (WKO),
Berufsförderungsinstitut Österreich (bfi) of the Austrian Chambers of Labour, as well as the Austrian
Trade Union Federation and numerous (private sector) training providers.

Training tailored for women is provided nation-wide by the Academy for small-scale women
entrepreneurs (Akademie für Kleinstunternehmerinnen), which is organised by the Women in Business
group (Frau in der Wirtschaft - FiW) of the Austrian Federal Economic Chamber (WKO). It offers
training that covers business plan development, marketing, co-operation and networking, and time
management. It also offers group coaching. In addition, FiW organises events such as the “Ladies
Lounge”, where role models share their experiences and expertise, and a biannual congress for women
entrepreneurs.

There are numerous tailored entrepreneurship training initiatives for youth. Entrepreneurship
education is included in the school curricula at all levels, including post-secondary vocational
education and training, and higher education. Much of this has been developed by the Working Group
Economy and School (Arbeitsgemeinschaft Wirtschaft und Schule AWS), which is an initiative of ibw
Austria - Research & Development in VET, the Austrian Federal Economic Chamber (WKO) and
Österreichischer Sparkassenverband. Most universities offer entrepreneurship courses and modules
and the larger universities typically have start-up centres and business incubators to support higher
education students in business creation. These formal learning activities are complemented by various
initiatives and competitions such as the “Next Generation” business plan competition and the EU-
funded “Youth Start Entrepreneurial Challenges”, which produced a programme and learning material
for teachers. The Austrian Federal Economic Chamber also offers some certificate programmes for
youth, including Entrepreneurial Skills Pass, which was developed with Junior Achievement Austria,

14
and Entrepreneur’s Skills Certificate (Unternehmerführerschein). In addition, Junior Achievement runs
a programme called “Junior – Students establish enterprises” (Schüler gründen Unternehmen).

Tailored entrepreneurship is also available for the unemployed through the “Business Start-up
Programme” (Unternehmensgründungsprogramm UGP). Participants can also access business
consultancy from private sector experts and some financial supports are also available.

Coaching and mentoring

One-to-one or group coaching and mentoring is also common in Austria and is frequently tailored
to the needs of different target groups. Often, coaching and mentoring are offered as part of integrated
support offers that include entrepreneurship training and financial support. Examples include “aws
First - Your future. Your business.” for youth and the Business Start-up Programme
(Unternehmensgründungsprogramm UGP) for the unemployed. These offers typically support
participants during the business start-up phase and for up to an additional two years to help the
entrepreneur develop a sustainable business.

In addition, there are some dedicated entrepreneurship coaching and mentoring initiatives for
various target groups. This includes initiatives such as the Austrian Senior Experts Pool (ASEP),
which offers business start-up coaching and mentoring for seniors (among other supports) and
Mentoring for Migrants (Mentoring für Migranten), which is offered by the Austrian Federal
Economic Chamber (WKO) and the Austrian Integration Fund (OIF), and Migrant Enterprises, which
is offered by the Vienna Business Agency. These supports tend to be well-used. For example,
Mentoring for Migrants has supported more than 1 500 migrant entrepreneurs.

3.5. Entrepreneurial culture and social capital

Entrepreneurship is actively promoted by the Ministry of Science, Research and Economy

(BMWFW) and the Austrian Federal Economic Chamber (WKO) through various channels such as the
European SME Week, television programmes and advertisements, websites, advertising, and public
presentations and events. Another important activity is the European SME week, which is organised by
the Austrian Federal Economic Chamber (WKO), WIFI-Unternehmerservice and supported by the
Ministry of Science, Research and Economy (BMWFW) and regional partners.

There are also many initiatives that promote entrepreneurship for specific groups, including
“Economic impulses by women in research and technology” (w-fFORTE – Wirtschaftsimpulse von
Frauen in Forschung und Technologie) and “Business Start-ups” (Junge Wirtschaft) by the Austria
Economic Chamber (ÖKW) for youth. The Chambers of Commerce in each Länder also actively
promote entrepreneurship for each of their target groups, i.e. migrants, women, seniors, people with
disabilities and LGTB people, and the Austrian Public Employment Service (Arbeitsmarktservice
AMS) works to increase awareness about the potential of entrepreneurship among the unemployed.
There are also many city-level initiatives such as “Chance – Start-up centre for people with a
disability” (GründerInnenzentrum für Menschen mit Handicap) in Styria, which promotes role model
entrepreneurs with a disability and organises workshops.

There are many entrepreneurship networks in Austria, both at national and regional levels. Many
of these initiatives are targeted at specific target groups. For example, the “Women in Business” group
(Frau in der Wirtschaft - FiW), which is part of the Austrian Federal Economic Chamber (WKO), is
also active in organising networking events for women entrepreneurs.

15
 4. POLICY RECOMMENDATIONS

In general, programmes that promote and support entrepreneurship often address all potential
entrepreneurs, regardless of the target group. However, there are a number of tailored initiatives for
various groups that are either under-represented or disadvantaged in the labour market. The following
recommendations are offered to further develop policies and programme to address the barriers to
business creation and self-employment by these groups:

1. Raise awareness of existing tailored measures and initiatives. In Austria, there is a multitude
of entrepreneurship measures, initiatives and projects offered by various public institutions
and non-governmental organisations. Many of them are not fully exploited by the target
groups. Therefore, it is necessary to raise the awareness and the visibility of the measures
through targeted outreach campaigns that use appropriate channels that are widely used by
the targeted communities.

2. Strengthen the linkages between financial supports and entrepreneurship training and
coaching and mentoring. There is a need to strengthen linkages between these different types
of support so that the multiple barriers that are faced can be addressed in a cohesive manner.

3. Develop more support for senior entrepreneurs. There are currently no specific initiatives
and programmes for the target group of seniors, although single measures could be identified.
There is still need for action in order to create alternatives for older workers to stay in
working-life. This is particularly important against the background that Austria has a
relatively low employment rate of seniors and therefore a high pressure on the retirement
system.

4. Strengthen and extend entrepreneurship education within the education system. The target
group youth is explicitly addressed in the national policies, strategies and actions plans in
terms of promoting entrepreneurship. Entrepreneurship education is included in school
curricula of compulsory subjects (e.g. geography and economics, business studies). However,
among others, there is room for improvement in the following fields: specification and
clarification of curricula contents, better presentation of entrepreneurship in school
textbooks, and improvement of training for teachers.

5. REFERENCES

Baldaszti et al. (2016), “Migration und Integration. Zahlen, Daten, Indikatoren 2016 (Migration and
integration. Statistics and Indicators 2016)”, compiled by STATISTIK AUSTRIA – Bundesanstalt
Statistik Österreich, and Kommission für Migrations- und Integrationsforschung der
Österreichischen Akademie der Wissenschaften, Vienna: Statistik Austria.

Bergmann, N., Riesenfelder, A., Schmatz, S., Sorger, C. (2013), “Evaluierung des Unternehmensgrün-
dungsprogramms (UGP)”, Vienna: L&R Sozialforschung.

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Bundeskanzleramt (2013), “Working Programme of the Austrian government 2013–18”, Vienna:
Austrian Chancellery, Federal Press Service,
https://www.google.at/url?sa=t&rct=j&q=&esrc=s&
source=web&cd=1&ved=0ahUKEwiRz9b06r3NAhVGIsAKHXbIAmYQFggkMAA&url=https
%3A%2F%2Fwww.bka.gv.at%2FDocView.axd%3FCobId%3D53264&usg=AFQjCNFrNmGo
6-wFdjdt8UTZY9Vc6fRNaw&cad=rja
Bundeskanzleramt (2013), “Arbeitsprogramm der österreichischen Bundesregierung 2013–18”,
Vienna: Bundeskanzleramt, Bundespressedienst.
European Commission/EACEA/Eurydice (2016), “Entrepreneurship Education at School in Europe”,
Eurydice Report. Luxembourg: Publications Office of the European Union.

Fassl, L, Dömötör, R. (2015), “European Start-up Monitor – Country Report Austria 2015”,
http://europeanstartupmonitor.com/fileadmin/country_report/country_report_%20austria.pdf.

Neuwirth, E. (2015), “Mentoring für MigrantInnen. Eine Evaluierung des Mentoring-programms aus
Sicht der Mentees”, in: ÖIF-Dossier n°36, Wien.

OECD / European Union (2016), Inclusive Business Creation: Good Practice Compendium, OECD
Publishing, Paris, http://dx.doi.org/10.1787/9789264251496-en.

Statistics Austria (2014), Business Demography.

Vienna Economic Chamber (WKW) (2016), Network Diversity.

17
 ANNEX: METHODOLOGY

Each note was prepared by a national expert in co-operation with the OECD Secretariat.
Information was collected through desk research and interviews (i.e. telephone, face-to-face, email)
with key stakeholders and government representatives. The information was then verified by
government partners, programme managers and other inclusive entrepreneurship stakeholder groups
through email exchanges and one-day seminars in selected countries.

The notes are based on an assessment framework that was developed by the OECD Secretariat.
The assessment framework provided a common analytical framework and report structure for the
28 notes that are in this series.

The framework contains 5 pillars:

1. Policy framework
 Is there an entrepreneurship strategy or action plan that explicitly covers the promotion
and support of entrepreneurship for people in under-represented and disadvantaged
groups?
 Is there a mechanism for co-ordinating inclusive entrepreneurship policy actions across
relevant national ministries, and with regional and local governments and civil society
organisations?
 Is there a systematic monitoring and evaluation process for the policies, programmes and
schemes that promote and support entrepreneurship for people in under-represented and
disadvantaged groups?

2. Government regulations
 To what extent are entrepreneurs from under-represented and disadvantaged groups
treated equally with employees by social security schemes?
 Do measures exist that temporarily cover the loss of state income supports (e.g.
unemployment benefits, disability allowances) for entrepreneurs amongst under-
represented and disadvantaged groups when they start a business?
 Do measures exist to support under-represented and disadvantaged entrepreneurs in
dealing with administrative procedures for entrepreneurship amongst under-represented
and disadvantaged groups (e.g. information provision, support with administrative
requirements)?
 Are there any entrepreneurship policy initiatives or schemes to address group-specific
institutional challenges related to dependents (e.g. childcare, eldercare)?

3. Financing entrepreneurship
 Are there grants for business creation offered to support entrepreneurs from under-
represented and disadvantaged groups?
 Is microcredit for business creation available to support entrepreneurs from under-
represented and disadvantaged groups?
 Are there loan guarantee schemes for business creation to support entrepreneurs from
under-represented and disadvantaged groups?

18
  Are there self-financing groups for business creation to support entrepreneurs from
under-represented and disadvantaged groups?
 Are there public policy schemes that encourage and support business angel networks to
support entrepreneurs from under-represented and disadvantaged groups?
 Are there schemes that encourage and support crowdfunding and peer-to-peer lending to
support entrepreneurs from under-represented and disadvantaged groups?
 Is financial literacy training offered to support entrepreneurs from under-represented and
disadvantaged groups?

4. Entrepreneurship skills
 Are there entrepreneurship training initiatives for entrepreneurs from under-represented
and disadvantaged groups?
 Do high potential entrepreneurs from under-represented and disadvantaged groups have
access to one-to-one or group coaching and mentoring?
 Are there public initiatives that provide information on available support programmes or
on business start-up procedures for entrepreneurs from under-represented and
disadvantaged groups?
 Are there business consultancy and advisory services for entrepreneurs from under-
represented and disadvantaged groups?
 Are there business incubators for entrepreneurs from under-represented and
disadvantaged groups?

5. Entrepreneurial culture and social capital

 Is entrepreneurship actively promoted as an employment opportunity amongst under-
represented and disadvantaged groups through the education system, media, role models,
etc.?
 Are there public policy actions that attempt to build specific business networks for
entrepreneurs amongst under-represented and disadvantaged groups?

19