Erasmus for Young Entrepreneurs (EYE)

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Erasmus for Young Entrepreneurs (EYE) is a pan-European mobility scheme for entrepreneurs, initiated by the European Commission in 2009.
What are the main aims and objectives?
The main aims of the Erasmus for Young Entrepreneurs program are to facilitate exchanges of experience, learning, and networking for new EU entrepreneurs by providing them an opportunity to work with experienced entrepreneurs. The program also promotes entrepreneurship among young people and contributes to the development of a dynamic, innovative, and internationally connected entrepreneurial ecosystem. Through these objectives, the program aims to foster entrepreneurial spirit, enhance the skills of new entrepreneurs, and create employment opportunities.  
How does the program work?

The program provides opportunities to aspiring or newly established entrepreneurs to go abroad within Europe to develop their entrepreneurial competences in running a small business with an experienced entrepreneur. The duration of the stay varies from one to six months. 

EYE creates benefits for both new entrepreneurs and their hosts: 

  • New entrepreneurs benefit from on-the-job training in a host company abroad to develop their entrepreneurial skills, and gain business knowledge and experience on managing a small business from their direct collaboration with the host entrepreneur. 

  • Host entrepreneurs benefit from innovative ideas from a motivated new entrepreneur. Moreover, this opportunity may also lead to other benefits such as the internationalisation of the business, access to new markets and possibilities for collaboration with new business partners. 

  • New entrepreneurs also receive a grant to cover travel, accommodation, food and related costs during their stay in the host country. The maximum size of the grant is €6,600 per individual.  

The programme is managed through an IT database. All the individual steps in relation to entrepreneurs, applications, matching, calculation of EU financial contribution, feedback from entrepreneurs are done exclusively via this IT tool. There are no application or participation fees to the program which is coordinated by the Support Office of the Programme and is free of charge to all entrepreneurs.  

The program defines a Young Entrepreneur as an entrepreneur whose activities are at the early stages of development and who wishes to gain more skills. They must porve that they have a sound educational/vocational background and viable business idea to qualify for the program. They also need to demonstrate entrepreneurial characteristics as well as demonstrating vision, an appreciation of risk and high levels of commitment.  

By contrast the Host Entrepreneur is defined as a successful entrepreneur who is an owner of an SME or someone at board level. They must demonstrate ambition to gain from the contribution made to their business from the Young Entrepreneur. They must be committed to making a contribution towards the development of entrepreneurial skills and able to part finance the role.  

What is the overall cost?
The total budget for the years 2016-2020 was €80 million (approx $87 million).  
How was it implemented?

EYE was introduced as a budget line in the European Parliament in 2007. In response the European Commission launched a pilot project in 2009 with an initial budget of €3 million (approx $3.3 million). Before 2009, several preparatory actions provided the basis for shaping the Erasmus for Young Entrepreneurs programme: survey among entrepreneurs (2007), stakeholders’ seminar (December 2007) and feasibility study (February 2008). The programme was open for applications on 1st February 2009. The programme was developed within the framework of the Small Business Act (SBA) for Europe which considers this programme as a key contribution ‘to create an environment within which entrepreneurs and family businesses can thrive, and entrepreneurship is rewarded’. 

In 2018, the European Commission launched a 2-year pilot project for the geographic extension of the programme to countries beyond Europe. Participating EU-nationals can now select three additional destinations (USA, Israel and Singapore) and collaborate with an experienced entrepreneur there for 1-3 months. 

What impact has been measured?

EYE has claimed that during the period of 2016-2021 alone, over 250 new companies and more than 2000 jobs were created as a result of the program. It was also revealed that almost 11,000 exchanges have taken place with 36.5% of those participating in the program going on to create their own business. However, EYE has not published an impact report to demonstrate a causal link between the jobs created and the program itself. Therefore, we cannot accurately judge the full extent of the programs impact.  

What lessons can be learned?

One of the key challenges the program has faced has been convincing enough host companies of the programs benefits with concerns about the amount of time required teaching the new entrepreneurs. Likewise, it was also suggested that EYE didn’t offer enough money to compete with similar national programs.  

Similarly, the cost effectiveness of the program could be questioned. Based on the available figures for running costs and jobs created, we can estimate that each job cost around €48,000 (approx $52,600) of funding. Likewise, each new company equates to around €384,000 (approx $420,000) of funding.

CURATED BY

Kristin Schreiber

Director for Chemicals, Health, Retail and Agrifood