3/1

REDE PORTUGAL

Worksop 2

TYPES OF SUPPORT SERVICES PROVIDED AND DEMANDED

Speaker 4

José Sousa Rego

IEFP – Institute of Employment and Vocational Training

PORTUGAL

REDE – PORTUGAL
A national public programme of IEFP - Institute of Employment and Vocational Training prepared from 1993 and launched in 1996 through public-private partnerships is being developed, already in its maturity phase, for services of consultancy, vocational training and management support to small enterprises mainly at work place.
Accompanying the conclusions of the European Council held in Santa Maria da Feira in 19th-20th June 2000 it has consolidated the model and tools of intervention, it has widened the network of services suppliers (Vocational Training Centres, Entrepreneurial Associations and Unions) with correspondent Consultants-Trainers and opened a new support services line, flexible and friendly, to entrepreneurs and small business promoters.
The approach to small enterprises gives preference to the relationship with associative entities by sector of activity and/or territory giving way for future external support services in closer conditions, progressively, to the ones of the market.
IEFP’s REDE programme maintains with similar programmes in other European Countries bilateral relations of reciprocal exchange considering stimulant and of the best interest the seminar in Viena to go deepening in the adjusting process between the offer and the demand of support services by small enterprises.

http://rede.iefp.pt

1.  THE STRATEGY AND THE POLICY LIFE-CYCLE

1.1  THE STRATEGY

1.2  LAUNCH PHASE

1.3  DEVELOPMENT PHASE

1.4  BEGINING OF MATURITY

2.  CLIENT ORIENTATION AND SPECIFIC SOLUTIONS

2.1  METHODOLOGY REDE

2.2  TO PILOT THE NETWORK

2.3  INTERVENTION INSTRUMENTS AND PEDAGOGIC MATERIALS

3.  ACHIEVEMENTS AND PURPOSES

3.1  FIGURES

3.2  PURPOSES

4. ANNEX – LIST OF PARTICIPANT ENTITIES

1.  THE STRATEGY AND THE POLICY LIFE-CYCLE

A national public programme of IEFP - Institute of Employment and Vocational Training prepared from 1993 and launched in 1996 through public-private partnerships is being developed, already in its maturity phase, for services of consultancy, vocational training and management support to small enterprises.

1.1  THE STRATEGY

In the starting point, in 1996, the analysis revealed a great distance between the small enterprise from the vocational training public offer, a very critical opinion regarding its contents and an extremely low rate of use of external services by the enterprises with less than 50 people.

The people working in small enterprises represented 50% of the Portuguese working force, a figure that was increasing. The education level of the national population were characterised by very low levels of skills and qualifications as a result of an accumulated deficit of schooling and training specially when compared with other European countries.

The strategy consisted in activating IEFP, within a public-private partnership, to launch a network (REDE) of Consultants, oriented to the delivery of support services to the existing small enterprises.

This network (REDE) of Consultants would be based in public Training Centres, which share its management with Entrepreneurial Associations (23) and Unions (3), and other Entrepreneurial Associations in order to ensure a permanent and organizational mobilization of the small enterprise, which would generate a continuous demand and multiplying effect.

Then, the aim was organizing a system that would assure an integrated and prompt response to meet the needs of the small enterprises, with such a quality and consistency that would work as demonstration to the others of strengthening the competitive profile.

1.2  LAUNCH PHASE

REDE Programme was launched at a national level through a pilot phase in 1996, together with two other similar programmes of the responsibility of two of the largest entrepreneurial associations in the country.

In 1998, it was the purpose of an independent external evaluation, which concluded that “...presents positive results in every area of objectives, having produced a specific result ENTERPRISE QUALIFICATION THROUGH PROFESSIONAL INSERTION OF YOUNG GRADUATES, and contributed in a significant way to the global achievements on the domains related to the development of ENTREPRENEUR’s MANAGEMENT AND STRATEGY SKILLS, OF INFORMATION SYSTEMATIZATION AND DIFFUSION, OF INTERVENTION DEVICES WITHIN THE ENTERPRISES, and of MOBILIZATION OF A GROUP OF SECTORAL ENTITIES... to support the small enterprises.”

1.3  DEVELOPMENT PHASE

The evaluation made to the pilot phase has already allowed the introduction of some adjustments that has widened the range and consistency to the services offer available to the enterprises

Thus, it was already possible to annul some resistance to training and introduce, from 1999, an in room Training Cycle to entrepreneurs, with three two-day seminars (Friday and Saturday) within the menu Annual REDE: one on Strategic Management, other on Entrepreneurial Finances, and the third concerning Markets.

The dominant characteristic of REDE Programme of intangible investment for the entrepreneurial development was underlined, its agents started to be called Consultants-Trainers, and the respective pedagogic certified was demanded.

The number of enterprises comprised in the basic pack of services provided was enlarged.

Responding to another segment, the management support to promoters of small entrepreneurial initiatives that were receiving financial incentives from IEFP started equally to be assured. A distinct service offer was created, Short-Term REDE, based on the same model of intervention, with adjustments in tools and different Consultants-Trainers, meanwhile prepared.

1.4  BEGINIG OF MATURITY

In 2001, a development chart of REDE Programme was set until the end of 2003, that may be prorogued until 2006, which permitted a growth in the number of Institutional Partners, Training Centres and Entrepreneurial Associations, in order to obtain a better covering of the territory, namely the areas with a less favourable entrepreneurial surrounding.

From the acquired experience, from the existing relationship of the Training Centres and Entrepreneurial Associations with the small enterprises of the respective sector of activity or area of influence, and accompanying the conclusions of the European Council held in Santa Maria da Feira in 19th-20th June 2000, two more support services were launched:

Express REDE, brief, friendly and flexible, for specialized answers to the enterprises; and

REDE PREAMP, for a specific and complementary response to a regional public intervention.

2.  CLIENT ORIENTATION AND SPECIFIC SOLUTIONS

2.1  REDE METHODOLOGY

It consists of an integrated approach, oriented to the strengthening of the enterprise’s competitiveness, mainly supporting problems solution (consultancy) and continuous investment in new competencies and necessary knowledge to entrepreneurial development (vocational training).

The support services are designed on tailor made solutions and to run at the work place.

Based on a Strategic Analysis and a short-term Action Plan, elaborated with the entrepreneur, the Consultant-Trainer will support the accomplishment using pedagogic material prepared to small enterprises.

The Consultant-Trainer will also train the entrepreneur and collaborators in the procurement of other external service providers needed to perform the Action Plan.

Within the Annual REDE basic service, the recruitment of a young graduate is actively promoted, being defined the personal and professional profile by the entrepreneur. He will support the accomplishment of the Action Plan. The recruitment is done through the Professional Internship Programme (9-12 months), available in the country to enterprises of every dimension, with 50% shared costs from the State and the enterprise itself.

Complementary to the support services delivered at work place the methodology expects the organization, by Centres and Associations, of two Professional Thematic Meetings each year, oriented to entrepreneurs and aimed to the discussion of common problems.

2.2  TO PILOT THE NETWORK

The organization of this network (REDE) of external support services is based on distinct profiles for Centres and Associations.

Thus, in accordance with the statutory assignments and the Executive Boards guidance for the sector of activity, Centres and Associations have competencies to:

Recruit the external Consultant-Trainer, obeying to previously set generic profile;

Promote the offer of support services through the most appropriate means to the acknowledgement of the small enterprise of the sector of activity, category or area of influence (regional press, local radios, mails to associates, fairs, face to face visits);

Determine and publicize annually the priorities and the criteria for acceptance of the support demands of the enterprises;

Put in action the demanded Specialists;

Promote the Professional Thematic Meetings having in mind the known expectancies of the entrepreneurs.

The IEFP pilots the network (REDE) through the Management Structure REDE, intentionally created:

Elaborating the methodology;

Supplying the intervention tools;

Being in charge of the pedagogic materials with the collaboration of Centres and Associations;

Defining the Rules, including fixed and variable index of remunerations and enterprises’ contributions;

Co-ordinating, following-up and controlling the activities;

Managing the Website, both for information and for getting data regarding the administrative process through particular access codes;

Assuring the evaluation system;

Assuring public financing from the Budget’s State and the EU (FSE);

Promoting the dissemination of the results.

2.3  INTERVENTION TOOLS AND PEDAGOGIC MATERIALS

Each one of the support services, Annual REDE, Express REDE, Short-Term REDE and REDE PREAMP, has own intervention tools.

In Annual REDE, the Strategic Analysis form exists in two versions, one of which intended to micro enterprises.

Since the very beginning it was defined that pedagogic materials would be produced only if they would effectively support the transmission of practices and examples get from the Consultants-Trainers’ experience in small enterprises.

There was thus the development of PEDAGOGIC PRACTICAL CASES, CD ROM, VIDEOTAPES, SHORT THEMATIC PUBLICATIONS and SHORT ENTERPRENEURIAL STUDIES.

The Director of the REDE Management Structure joined in the meantime the Editorial Council of IEFP’s DIRIGIR review (10,000 subscribers, bimestrial) where a permanent section VOZ ÀS EMPRESAS, giving voice to small businesses, was launched presenting structured cases of REDE, and exemplifying the selected theme in each issue.

3.  ACHIEVEMENTS AND PURPOSES

3.1  FIGURES

1 993 / Definition of the principles of institutional co-operation for the support to the small enterprise in order to allow its effective access to employment and training measures.
1 996 / Launch of the pilot phase of REDE Programme in the framework of a public-private partnership
IEFP - Institute of Employment and Vocational Training
AIP, AEP - two of the largest entrepreneurial associations
1 999 / REDE Programme selected, joint with AIP e AEP Programmes, as one of 10 best practices by the European Commission's DG V in the scope of the National Employment Plans
from 1996 to 2001
1 200 / Enterprises with a maximum of 49 people, Annual REDE
1 342 / Young graduates recruited by enterprises, Annual REDE
73 / Consultants – Trainers, Annual REDE
823 / Micro enterprises with start-up supported by IEFP, Short-Term REDE
8 / Consultants – Trainers, Short-term REDE
36 / Training Centres and Entrepreneurial Associations, Annual REDE
in 2000 - 2001

Annual REDE

31% / Micro enterprises
41% / Family enterprises
8% / Net variation of employment
28% / Employees of the enterprises involved with vocational training opportunities in that year
78% / Young graduates recruited by enterprises employability
16% / Female entrepreneurs/managers
8% / Higher Education qualifications of entrepreneurs/managers
44% / Secondary Education qualifications of entrepreneurs/managers
48% / Below Secondary Education qualifications of entrepreneurs/managers
49 / Medium age of Consultants-Trainers
Entrepreneur’s evaluation, Annual REDE 2000-2001
Strategic Analysis / Important and very important / 92%
ACTION PLAN / Important and very important / 87%
CONCLUDED ACTIONs of the ACTION PLAN / 82%
YOUNG graduates PERFORMANCE / Good and very good / 72%
EMPLOYEES VOCATIONAL TRAINING / Considerable and decisive influence / 72%
Accomplishment of Expectancies / Accomplished and exceeded / 84%
Would you recommend rede to
other entrepreneurs? / Yes / 94%
IN THE FUTURE, EVEN IF PAYING? / Yes / 97%

3.2  PURPOSES

In accordance with the STRATEGY OF LISBON and the EUROPEAN CHARTER FOR SMALL ENTERPRISES the purposes for guidance of the delivery of services’ network for small enterprises are as follows:

- To define the levels of adjustment between the demand of services and the offer, allowing the regulation of its delivery in progressively closer conditions to the ones of the market;

- To develop intervention tools that strengthen learning by doing at workplace;

- To provide ICT solutions for enterprises’ problems improving their aptitude for the use of those means, including e-learning;

- To promote a true innovation culture as a way to beat the structural delay and to reach higher levels of performance.

4.  ANNEX – LIST OF PARTICIPANT ENTITIES

Viena, Abril 2002

List of Institutional Partners

47 Centres and Associations 2002

ACBRAGA – Trade Association of Braga

ACCOAVC – trade association of municipalities of oliveira de azemeis and vale de cambra

acif – Trade and industrial Association of fafe, cabeceiras de basto and celorico de basto

acisat – trade, industrial, services AND AGRICULTURAL association of alto tamega

acise –Trade, industry and services association of elvas

adral – alentejo regional development agency

aliende – local development assoc iation

ane – National association of women entrepReneurs

anje – national association of young entrepReneurs

antram – national association of public road transportation of goods

apemeta - portuguese association of environmental technologies’ enterprises

apip – portuguese association of plastics industry

apirac – portuguese association of Refrigeration and conditioned air industry

apme – portuguese association of women entrepReneurs

assimagra – portuguese association of ornamental rocks industry

assoft – portuguese association of software

cearte - handicraft training center

cecoa – trade training center

cefosap – union and professional development training center

cencal – ceramics industry training center

cenfic –Civil architeture and public works industry south training center

cenfim – metallurgy and METALWORKING INDUSTRY training center

cepra – auto repairing training center

cequal – quality training center

cfpic – footwear industry training center

cfpimm – wood and furniture industries training center

cfpsa – Food industry training center

ciccopn –Civil architeture and public works industry north training center

cilan – clothing industry training center

cinkork – cork industry training center

cindor – jewelry and watchmaking industry training center

cinel – electronics industry training center

cinfu – foundry industry training center

cinterbei – beira serra entrepreneurial training center