Entrepreneurship Passport (Passaporte para o Empreendedorismo)

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The Entrepreneurship Passport was a support program targeted at youth entrepreneurs that ran between January 2013 and September 2015. The program provided financial and technical support, including a monthly stipend, and mentoring.
What are the main aims and objectives?

The main aim of the Entrepreneurship Passport was to encourage qualified young entrepreneurs to develop their innovative projects in Portugal. The program was designed to improve the survival conditions of businesses projects still in the idea stage. The program was part of a set of larger measures designed to tackle high levels of youth unemployment and promote entrepreneurship and innovation in Portugal. 

How does the program work?

The Entrepreneurship Passport was targeted at young people under the age of 34 with innovative business ideas that respond to market needs. It was required that the entrepreneurs were at the idea stage (at least 1 year before company start-up). The program consisted of two main mechanisms to support young entrepreneurs: 

Monthly stipend 

The process begins with access to a monthly grant worth €691.70 (approx $758), to be awarded for a minimum period of 4 months and extended to 12 months subject to evaluation after the initial period. This aspect of the policy was designed to give young entrepreneurs the financial freedom to pursue their concept without their focus being distracted.  

Training & technical assistance 

Young people who participated in the Passport for Entrepreneurship in Portugal received comprehensive training in entrepreneurship and innovation. The program offered a set of training activities that included workshops, mentoring sessions, business coaching and technical consulting. The training was adapted to the individual needs of each participant and the stage of development of their business projects. In addition, young people also had access to a network of contacts and collaboration with other entrepreneurs and institutions in the business sector. The aim was to equip them with the necessary skills and knowledge to take their entrepreneurship projects to a more advanced and sustainable level. 

What is the overall cost?
The overall cost of the program has not been published, however, we can calculate that the cost of the stipend was approaching a maximum of €8.3 million ($9.1 million) given that there were 997 formalized passports that would have each cost €8,300 (approx $9,100) if the entrepreneur completed the 12 month program.  
How was it implemented?
The Entrepreneurship Passport was implemented by the Agency for Competitiveness and Innovation (IAMPEI) and was launched within the scope of the +e +i program. The Secretary of State for Entrepreneurship and Innovation (XIX Portuguese Government) was responsible for its implementation. The program was funded by the European Regional Development Fund through Regional Operational Programs in the North, Center and Alentejo regions.  
What impact has been measured?

The Entrepreneurship Passport program tracked a number of key metrics including: 

  • 3,558 applications were received to the program with 997 being selected to receive the stipend and training 

  • 152 participants formed new companies with a further 372 intending to within the next 6 months.  

  • 140 new jobs were created by the startups 

  • 73.5% of the participants considered that their employability considered that their employability conditions improved significantly 

However, because the program did not run a control group, it is not possible to conclude with certainty how many of these startups would have formed and created jobs without the support of the program.  

What lessons can be learned?

Policymakers found that the main challenge was the management of this kind of program by a public implementing agency. They found it difficult to match the private needs and intentions with public procurement rules and resources, under time and budget constraints. It was suggested that similar programs should be managed under a public-private partnership in future to avoid these challenges. 

Based on the initial results reported by IPAMEI it could be questioned as to whether the program represented value for money. Based on the stipend cost alone - which ignores the cost of administration and training programs – the cost per job created would be around €59k (approx $64k) and cost per business created would be around €54k (approx $59k). However, these figures do not account for the 372 participants who intended form a business and without a follow up report we cannot know how many jobs the 152 startups went onto create in later years.  

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