Jan Petersen, Minister of Foreign Affairs

Opening remark at the Eurochambres conference in Stavanger 29 September 2005

Stavanger, 29 September 2005

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Ladies and gentlemen,

It is a pleasure for me too to welcome you all to this year’s Eurochambres conference here in Stavanger.

Eurochambres is certainly one of Europe’s most important networks for business issues.

I am honoured that this important assembly is being held in Norway – and in Stavanger, which is truly an international business city that is oriented towards markets and overseas opportunities.

Although Norway is not a member of the European Union, it is an integral and active part of European cooperation. Our relations with the EU are very central:

Firstly, through the European Economic Area Norway is a part of the Internal Market. Secondly, we participate in the Schengen co-operation. Thirdly, we co-operate closely with the European Union in foreign and security policy. And Norway is a part of major EU programmes and projects speaking in the fields of culture and education.  

The choice of Stavanger as your venue is therefore very appropriate: Stavanger is an international city, it is the energy capital of Norway and it is the centre of the oil and gas industry.

The oil and gas industry has also created an environment for entrepreneurship. People from Stavanger – which has, by the way, been designated European City of Culture in 2008 – are not just pumping oil. They have also transferred their expertise and creativity to other products and services. They have created new jobs. People in Stavanger are contributing to our welfare and wealth in ways that are not related to the price of oil. Businesses in Southwestern Norway have their focus on Aberdeen, Frankfurt and Houston.

The topic of this conference is ‘entrepreneurship and jobs’. And I ask myself: what greater challenge is there in Europe?

As the world becomes more and more globalised and trade barriers are lowered, goods and services will increasingly be produced in the most competitive locations, at the most competitive prices. Your sweater may well be made in China or Bangladesh, and your steak may soon come from Argentina or Brazil.

These changes may be difficult for businesses in high-cost countries like Norway to cope with. Changes and adjustments carry a price.

But we cannot stop the trend towards a more globalised world. We cannot prevent it and we cannot pretend that it is not happening. These globalisation challenges must be met. These challenges represent today’s real world.

To me, the answer to these challenges is not isolation. On the contrary, European businesses must compete openly. They must find their place in the global economy.

New jobs must be created. New ideas must be nurtured. Changes in the market must be met. Businesses must adapt to the new situation, by innovation policies and other measures. I am sure this conference will help us to find out how.

You will see how entrepreneurship is important for society at large. There is for example a clear correlation between entrepreneurship and economic performance, in terms of job creation, growth, productivity and exports.

We therefore have to ensure that Europe has the motivated and skilled entrepreneurs it needs. People must be given the opportunity to start and grow their ventures in a supportive business climate.

However, entrepreneurship is first and foremost a mindset; we must encourage people to choose an entrepreneurial career path. They must be equipped with the necessary skills and the means to succeed.

Ladies and gentlemen,

Norway has always been a producer of primary goods: traditionally fish and timber, and more recently also aluminium, oil and gas. We realise that decreasing petroleum revenues in the future will be a big challenge to our economy.

The government is therefore aiming to make Norway one of the most innovative countries in the world. In addition to our rich natural resources, Norway has a highly educated population and a sound and stable economy. We have high ICT penetration and thriving knowledge and commercial clusters in many areas.

Our innovation policy is built on these factors. Success requires dedicated efforts and co-operation between industry, individuals, institutions and the government.

In my view – and perhaps I should mention here that I was chairman of the Conservative Party for 10 years – in my view, the role of governments is primarily to facilitate innovation, remove obstacles and provide traffic rules, national as well as international. Therefore we need a strong World Trade Organisation (WTO) and we need a successful Doha round.

Innovation cannot be produced to order.

What we can do, though, is to motivate and stimulate. We can mobilise private companies, research institutions, schools and universities to focus on opportunities and foster ideas that can trigger entrepreneurship and commercial activity.

In Europe, the Lisbon Strategy, which aims to boost European competitiveness, is now directing more attention to creating synergies between national and EU policies. Guidelines and action plans will specifically address the need to promote entrepreneurship and support small and medium-sized enterprises.

Policy goals include improving access to venture capital, ensuring better regulation and cutting costs and red tape. My colleague Mr Børge Brende, the Minister of Trade and Industry, will no doubt address these issues in more detail later.

Small and medium-sized enterprises are the backbone of Europe’s economy. They provide jobs for millions of people and play an important role in the economy. They account for two thirds of the jobs in the private sector.

Most small companies, in fact, stay small. But those that do grow not only create more jobs, they also boost the vitality of the overall economy.

However, the conditions for small and medium-sized enterprises and start-up companies are not as favourable in the EU as they are, for example, in the US. There is less initiative and risk-taking in Europe. In the US there is three times as much involvement in new entrepreneurial ventures than there is in Europe, and businesses grow more rapidly.

The World Bank report Doing Business in 2006 compares the business environment in 155 countries on the basis of a set of indicators. These include how easy it is to start a business, enforce contracts, obtain bank loans, register property, protect investors, and so forth.

The report shows that New Zealand is the easiest country to run a business in, followed by Singapore and the US. Norway comes in fifth. It is also noteworthy that 12 of the top 20 economies are in fact European.

The report shows that there is a strong link between regulatory reforms on the one hand, and employment opportunities and the number of new businesses created on the other. A country’s efforts to make it easier to do business have a considerable overall effect on its economy.

Let me mention four important points in this respect:

Firstly, starting a company should be made as easy as possible. We need to reduce the amount of red tape involved. We need to make it clearer to entrepreneurs what they can expect. And we need to make clear what is expected of them.

Secondly, clusters should be encouraged. Clusters tend to foster a greater degree of innovation than what takes place in individual enterprises. Why? Because participants in clusters learn from each other.

Thirdly, we must focus on the entrepreneurs themselves, on the people who are actually doing the job. Young people in particular need to be encouraged. And role models are needed. European countries should commit themselves to promoting entrepreneurship from primary school to university. Young entrepreneurs need opportunities to gain experience.

Fourthly, it is important to take greater advantage of the international market and technology opportunities in the global economy. In order to succeed, strategic alliances and networks are essential. As is venture capital, both national and international, private and public. Creating links between local companies and international markets and technology is vital for the successful development of competitive businesses.

Conferences like this one strengthen such networks. During this meeting you will also learn about Norwegian efforts to stimulate entrepreneurship. You will hear about Norway’s national economy and international co-operation.

As politicians we can only provide encouragement and favourable conditions. It is you, the agents of innovation, who have to take the initiatives.  

Thank you.

For more information on the conference, see eurochambres.be/congress/