To promote the development of new businesses by providing financial incentives and real services, and to raise production potential and employment by promoting the development of producer and worker cooperatives and companies set up mainly or exclusively by young people aged between 18 and 29. The following areas of the Mezzogiorno are entitled to the entire range of benefits under the measure; Abruzzi, Molise, Campania, Apulia, Basilicata, Calabria, Sicily and Sardinia. Of the other areas, only special districts are covered by the measure
- Decree-Law 26 of 31.1.1995, converted into Law 95 of 29.3.1995.
3.6.7.3. Contents
Under the measure various financial incentives (grants and low-interest loans) and logistical support (real services) are provided in support of firms and cooperatives, the majority of whose members are young people.
The financial support is available to cover the costs of investment or administration. The logistical support consists of technical assistance in the start-up phase and of the training of, and acquisition of the necessary vocational qualifications by, the associates and employees to enable them to realise the approved projects.
In order to obtain the financial support, the cooperatives or firms must submit projects relating to goods production in agriculture, craft or industry or the provision of services to the goods-producing sectors.
Support is provided to companies consisting exclusively of young people aged between 18 and 35 or companies consisting of young people aged between 18 and 29 who represent the absolute majority in numerical and share-holding terms and who reside in Objective 1, 2 or 5 areas, as defined in EU Directive 2.081 of 20.7.1993.
3.6.7.4. Financial resources
The development of companies founded by young people is partly financed by a share, not exceeding 10%, of the Employment Fund set up under Law 236/93. This fund share is to cover activities in specific sectors (cultural heritage, tourism, maintenance of engineering and industrial buildings, etc.); it can be claimed by firms and cooperatives eligible under Article 1 of Law 44/86.
ITL 100 billion were approved for each of the years 1994 and 1995 and ITL 300 billion for 1996.
3.6.7.5. Institutional support
Since 15.4.1993, the day on which the special measure for the Mezzogiorno expired, the responsibility for grants of more than ITL 10 billion, which had previously lain with the Ministry for Special Measures in the Mezzogiorno, has been with the Ministry of Industry. The Committee for Young Entrepreneurship in the Mezzogiorno, that had previously been responsible for this particular measure, is now responsible only for grants of less than this figure.
Association of Young Entrepreneurs (Società per l'imprenditorialità giovanile); Ministry of Labour and Social Affairs.
3.6.7.6. Duration
Funds have been ear-marked (Law 44/86) for both 1993 and 1994
3.6.7.7. Effects
In 1993, 867 projects (of 3,926 applications) had been approved by 15 October, benefiting a total of 17,714 participants. The number of "young entrepreneurs" receiving training under the provision amounted to 6,332 (also in 1993), of which around one-third were women (1,985).
In 1996, 438 project proposals were reviewed: 130 were approved, 246 rejected and 50 considered "not acceptable". In 12 cases the projects were dropped by their organisers following approval.
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