Institutional Case Studies on Necessity Entrepreneurship

Institutional Case Studies on Necessity Entrepreneurship

Edited by Jeremi Brewer and Stephen W. Gibson

An estimated one billion individuals in both developed and developing nations can be defined as necessity entrepreneurs; individuals who have no other viable option for licit income than to start a small, income generating activity. However, the emphasis on providing business and leadership training to necessity entrepreneurs is only just gaining traction. This book provides the first-known global analysis dedicated exclusively to organizations from both the public and private sectors that are specifically involved with microenterprise education for necessity entrepreneurs. The authors provide a pragmatic synopsis and evaluate the efficacy of the programs that have been, currently are, or will soon be teaching and/or training necessity entrepreneurs around the globe.

Chapter 1: Supporting the transition from unemployment to self-employment—a comparative analysis of governmental support programs across Europe

Melvin Haas and Peter Vogel

Subjects: business and management, entrepreneurship, family business, development studies, social entrepreneurship


Governments around the world are facing increasing pressure to reduce unemployment. According to the International Labor Organization (ILO), a deficit of 50 million jobs as compared to the pre-crisis situation is causing significant pressure on policymakers, particularly as this deficit disproportionately affects youth. One central strategy in addressing unemployment is to directly support unemployed individuals equipped with a business idea in starting their own company. For this purpose, several active labor market programs (ALMPs) have been developed, providing support to those seeking to start a business after a period of unemployment. This chapter provides an overview and analysis of such policy schemes from 12 European countries. The selection of countries seeks to reflect the diversity with regards to economic importance, political orientation, history and culture, as well as the variety of program structures that have been implemented. Similarities and differences between these programs are analyzed in order to contribute to increasing their effectiveness (for example, pointing out suitable policy instruments) and their efficiency (for example, by employing limited public funds with maximum.