PROGRAMME OF RESEARCH AND ACTIONS ON THE DEVELOPMENT OF THE LABOUR MARKET Local employment initiatives An evaluation of support agencies COMMISSION OF THE EUROPEAN COMMUNITIES This document has been prepared for use within the Commission. It does not necessarily represent the Commission's official position. Cataloguing data can be found at the end of this publication Luxembourg: Office for Official Publications of the European Communities. 1985 ISBN: 92-825-5859-2 Catalogue number: CB-44-85-872-EN-C Articles and texts appearing in this document may be reproduced freely in whole or in part providing their source is mentioned. Printed in Belgium Commission of the European Communities PROGRAMME OF RESEARCH AND ACTIONS ON THE DEVELOPMENT OF THE LABOUR MARKET LOCAL EMPLOYMENT INITIATIVES AN EVALUATION OF SUPPORT AGENCIES By Centre for Research on European Women - CREW Brussels Document This document has been prepared for use within the Commission, It does not necessarily represent the Commission's official position. The research on which these reports were based was financed by the Commission of the European Communities as part of its programme of Research and Actions on the Development of the Labour Market. The analysis and conclusions are the responsibility of the authors. They do not necessarily reflect any views held within the Commission of the European Communities nor do they commit it to a particular view of the labour market or any other policy matters. SUMMARY The study examines the setting up, functioning and role of support organisations in the EEC. There is already clear evidence that where effective agencies exist, local job creation has increased. The research was carried out through questionnaires, on- the-spot visits and telephone interviews. The analysis presented is based on the practical experience of the agencies and the enterprises helped. The study is divided into two parts. The first part, sub• divided into seven sections, contains the case studies of the seven areas examined. Each case study presents the views of the agencies interviewed, examines other support structures and, where possible, lists the views of some of the enterprises helped by each of the agencies, The case studies look at how these agencies were first set up, how they are funded, their internal working arrangements, the type of counselling they give and their relationship with other groups in the area. Part Two of the study contains a general analysis and concluding remarks. We would like to thank all agencies, individuals and enterprises which gave up a lot of their valuable time to help with the research. TABLE OF CONTENTS Page Introduction 1 PART I The case studies Section 1 London 8 General introduction 8 Greater London Council - GLC 10 Greater London Enterprise Board - GLEB 13 Cooperative advice services 18 Industrial Common Ownership Movement - ICOM 21 The National Cooperative Development Agency 22 A different initiative from local authorities - Camden Council 23 Small firm's advisory service 25 Support from private industry 26 Finance 27 Conclusion 28 Section 1.1 Islington Cooperative Development Agency 30 Background 30 The area of Islington 31 Internal structure and working of the CDA 32 Promotion and Counselling work 34 Monitoring 39 Premises 41 Bookkeeping and wages 42 Marketing 43 Finance 44 Wider deveiopment work 45 Future strategy 46 Some facts and figures 47 Comments from groups helped 49 Section 1.2 Lambeth Cooperative Development Agency 54 The area 54 Background 55 Structure and internal working of the agency 55 Counselling and promotion 57 Monitoring 61 Premises 63 Finance 64 Wi der devei opment work 65 Future strategy 67 Some facts and figures 69 Response from the cooperatives 70 Annex Extracts from Lambeth CDA's workers' cooperative information pack 74 Page Section 1.3 Wandsworth Enterprise Development Agency Limited - WEDA 103 The internal working of the agency 104 Product development 106 Finance 107 Problems 108 Section 2 Initiatives from Industry - British Steel Corporation (BSC) Industry 110 BSC Industry - Small enterprise workshops 113 Wider promotional and development work 118 Other initiatives 120 Section 2.1 The Derwentside Industrial Development Agency and BSC Industry Consett workshops 123 The agency 123 The workshops 130 Section 2.2 Making business out of unemployment - Job Creation Limited 133 Conclusions 138 Section 3 Belgium 140 Background to the Belgian movement 140 Characteristics of alternative enterprises in Wallonia 141 The problem of funds 142 The legislative and administrative framework 144 The Charleroi region 145 Section 3.1 FUNOC - Association pour le Développement à Charleroi d'Action Collectives de Formation pour l'Université Ouverte 147 Setting up the agency 148 Structure of the organisation 149 Working methods 151 Projects 152 Conclusions 155 Section 3.2 Solidarité des Alternatives Wallonnes - SAW 157 Organisation of SAW 157 Internal organisation of the work 159 Counselling 160 Some facts and figures 167 What alternative - Cooperative or Asbl 167 Other aspects of SAW 's work 170 Conclusions 173 Page Section 3.3 Nouvelles Coopératives 175 Introduction 175 Background 175 Structure of Nouvelles Coopératives "Federation" . 177 Organisation of the Nouvelles Coopératives network 178 The support centres 180 Counselling 181 Wider development work 1JJ1 Facts and figures 193 Conclusion 194 Section 4 Italy 195 Section 4.1 LEGA - Emilia Romagna 201 Federcoop 204 Facts and figures 210 Views of the Cooperatives 213 Annex Yearly figures for the cooperative movement in Emilia Romagna 215 Section 4.2 Campania 219 The cooperative associations in Campania 222 Confederation Campania 222 Lega 227 Section 4.3 CRESM 231 Background 232 Setting up the office 236 Internal working of the agency 237 Lioni 238 Promotion and counselling 239 Comer 243 Future strategy 247 Facts and figures 251 The cooperatives 252 Annex List of cooperatives in the Cratere area 261 Section 5 France 272 Boutiques de Gestion 272 The comité de liaison des Boutiques de gestion (CLBG) 277 ESPACE-Rêgion - Etudes et services pour la promo• tion des activités créatrices d'emplois 285 Concluding remarks 290 Page Section 6 The Netherlands 294 The economic environment 294 The role of cooperatives 295 Support and advice for local initiatives 298 Section 6.1 Stew - The foundation for experimental workshops, Amsterdam 300 Historical background 300 Internal organisation 302 Counselling 304 The women 's team 305 The mixed team 307 Monitoring and guidance 308 Problems 310 Contacts with other groups 312 Future plans 314 Response of the groups aided 315 Some facts and figures 317 PART II Conclusions and Recommendations 320 Setting up and structure 321 General support and assistance for local employ• ment initiatives 323 Promotional and wider development work 337 Training 338 Finance 339 Monitoring 342 Comments and Recommendations 343 List of Agencies 356 INTRODUCTION The study describes and analyses a number of support or• ganisations in seven regions of EEC member countries. Within the regions, we interviewed support organisations, looked at other support structures and where possible, interviewed businesses helped by each of the agencies. By looking at agencies in a regional context it was felt that we could get a better idea of the problems met by the agencies and the type of environment they operate in. The research was carried out through questionnaires, on- the-spot visits and telephone interviews. Using the same questionnaire for all the interviews, so that a comparison could be made, we examined how these agencies were first set up, how they are funded, their internal working arr• angements, i.e., how decisions are taken, how project allocation is decided, as well as the type of counselling they give and their relationship with other groups in the area. Businesses which have dealt with the agency were asked to assess the help they had received and to comment on how it compared to other advice they had received from other organisations. We also asked them to indicate which types of advice, i.e., technical, managerial, was most necessary The analysis presented is based on the practical experi• ence of the agencies and the enterprises helped by them. Among these agencies, examples of the following type of organisations are given: - 2 1. Independent support agencies such as the Cooperative Development Agencies (London, UK), STEW (Amsterdam, the Netherlands), CRESM (Campania, Italy), Boutiques de Ges• tion (France), Nouvelles coopératives (Wallonia, Belgium). 2. Agencies directly run by local or state authorities such as the Wandsworth Development Agency (London, UK). 3. Services given by the cooperative organisations them• selves such as the Lega (Emilia Romagna, Italy). 4. Initiatives backed by industry such as the British Steel Corporation (BSC) Industry (North East, UK) and Job Creation Limited (operations in the UK and Amsterdam, the Netherlands) . 5. Significant university and trade union involvement such as Funoc (Charleroi, Belgium), Solidarité des Alter• natives Wallonnes (Wallonia, Belgium). Special emphasis has been given to programmes run by these agencies aimed at target groups especially women, young people and ethnic minorities. The regions chosen are the following: 1. London : In recent years the area has seen the collapse of its manufacturing base, an exodus of people and indus• tries and declining inner city areas. The most significant aspect of local job creation has been the growth in cooper· atives set up by the unemployed. These cooperatives often seek the help of Cooperative Development Agencies (CDA), which have played an important part in local employment initiatives in the area. One of the greatest concentration of CDAs and cooperatives in the UK is in the London area. A particular feature of London is the work of the Greater London Council (GLC), which has developed an industrial policy to respond to the problems of the capital, giving a general economic framework to local job creation. GLC policy also concentrates on underprivileged groups in the city such as the large immigrant communities and women.