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Madeira's Entrepreneurship and the Shift in Incentive Strategies

Author: José Fábio, Sobrinho; Roberta Oliveira, Melim; Sérgio Jesus, Teixeira
Publisher: Zenodo
DOI: 10.5281/zenodo.17277838
Source: https://zenodo.org/records/17277838/files/06-0610-2025.pdf
In e na ional Jou nal o Cu en Science Resea ch and Re iew
ISSN: 2581-8341
Volume 08 Issue 10 Oc obe 2025
DOI: 10.47191/ijcs /V8-i10-06, Impac Fac o : 8.048
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Madei a’s En ep eneu ship and he Shi in Incen i e S a egies
José Fábio Sob inho1, Robe a Oli ei a Melim2, Sé gio Jesus Teixei a3
1,2,3 Facul y o Social Sciences, Uni e si y o Madei a, Funchal, Po ugal
ABSTRACT: This s udy aims o e alua e he e olu ion o he incen i e s a egies o he Ins i u o de Emp ego da Madei a, IP-RAM
(IEM), which ansla ed means Madei a Employmen Ins i u e, and hei impac on he numbe o app o ed p ojec s, jobs c ea ed
and p omo e s/en ep eneu s ha eme ged. I also aims o e alua e he cha ac e is ics o he jobs c ea ed, p omo e s o non-
p omo e s, hei e olu ion, and in e connec ion wi h he li e a u e e iew. In o de o analyze he e olu ion o he en ep eneu ship
p og ams o he Madei a Employmen Ins i u e, and he cha ac e is ics o he jobs and p omo e s (unemployed en ep eneu s who
apply o an en ep eneu ship p og am), seconda y da a ob ained om i s annual balance epo s (Emp ego e Coesão Social - B e e
Balanço epo s), om 2011 o 2022, a ailable on he ins i u ion's websi e, a h ps://www.iem.madei a.go .p /es a is icas-anuais/,
whe e da a we e ob ained o he pe iod be ween 2009 and 2022, using a quan i a i e me hodology and whe e hey demons a e he
di e en ypes o p og ams ha he Madei a Employmen Ins i u e had o has h oughou he pe iod unde analysis. Global analysis
o en ep eneu ship p og ams o he unemployed in ecen yea s, hei e olu ion o e ime, and he pe cep ion o whe he he
objec i es o go e nmen ins i u ions a e being me , as well as he analysis o he jobs c ea ed, en ep eneu s o non-en ep eneu s,
depending on hei cha ac e is ics. One o he main objec i es o he Madei a Employmen Ins i u e is being ul illed, which is o
a ionalize esou ces in a be e way, gi ing g ea e ocus o he c ea ion o jobs globally, as well as con i ming some p oposi ions
o he e ision o li e a u e, among he a icles analyzed, namely in e ms o he cha ac e is ics o he jobs c ea ed, p omo e s o
non-p omo e s, e i ying a g ea e p opensi y o en ep eneu ship among male indi iduals who we e young adul s, as well as he
e olu ion o he jobs c ea ed in e ms o le el o educa ion, which has been inc easingly high. This s udy con ibu es o a possible
basis o a compa a i e analysis be ween egions and ins i u ions ha wo k o encou age en ep eneu ship, as well as o unde s and
which aspec s go e nmen en i ies should s ill wo k on, in o de o imp o e hei esul s.
KEYWORDS: Unemployed, En ep eneu ship, Employmen , E olu ion, IEM, P og ams
INTRODUCTION
Go e nmen policies play a key ole in p opensi y o en ep eneu ship, bo h na ionally and in e na ionally, as well as egionally. A
egion ha does no p omo e measu es o suppo en ep eneu ship, o ha hinde s, h ough i s laws, policies and cul u e, he
en ep eneu ial in en ion, ends no o be as compe i i e as hose ha acili a e i s exis ence, which may lead o ha in economic
e ms i becomes dis ance mo e and mo e. In economic aspec s, he p oblems o unemploymen also s and ou , which no only
conce ns a social p oblem, bu also he egional compe i i eness p e iously men ioned.
In his con ex , i is in ended o s udy he e olu ion o go e nmen policies implemen ed in he Au onomous Region o
Madei a, h ough he egional Employmen Ins i u e, namely he p og ams c ea ed hemsel es, o encou age he en ep eneu ship
o he unemployed, as well as o s udy he e olu ion o e ime o he jobs c ea ed, p omo e s o non-p omo e s, and he p opensi y
o en ep eneu ship, o o en e ing he labo ma ke acco ding o i s cha ac e is ics (gende , educa ional quali ica ions, age and
p e ious p o essional expe iences), in e connec ing i wi h he li e a u e e iew . The p esen s udy will ha e as analysis imeline
he pe iod be ween 2009 and 2022.
THEORETICAL FRAMEWORK
ENTREPRENEURSHIP
Based on he wo ks o Joseph A. Schumpe e , Howa d H. S e enson, Pe e F. D ucke , William B. Ga ne , Sa as D. Sa as a hy,
Sco A. Shane, E ic Ries, Julian Bi kinshaw and Shake A. Z. S. A. Mega, we can see ha en ep eneu ship i is widely ecognized
as an impo an d i e o economic g ow h, job c ea ion and inno a ion (Table I).
Schumpe e , one o he mos in luen ial economis s o he 20 h cen u y, emphasized he ole o he en ep eneu in d i ing
economic g ow h h ough inno a ion. S e enson, in u n, conside ed en ep eneu ship as a sea ch o oppo uni ies beyond
In e na ional Jou nal o Cu en Science Resea ch and Re iew
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con olled esou ces. D ucke a gued ha en ep eneu ship in ol es c ea ing some hing new and dis inc i e, while Ga ne explo ed
he dis inc ion be ween en ep eneu ship and small business owne ship.
Mo e ecen au ho s, such as Sa as a hy, in oduced concep s such as he e ec and use o esou ces and pa ne ships o
c ea e en e p ises. Shane emphasized he impo ance o access o capi al and o he esou ces o en ep eneu s, while Ries ad oca ed
using wha -i me hodologies o educe isk and inc ease he success a e. Bi kinshaw explo ed he challenges o en ep eneu ship
in la ge o ganiza ions, while mega in es iga ed he ole o social en ep eneu ship in add essing global challenges.
Unde s anding hese au ho s' ideas and pe spec i es con ibu es o a be e unde s anding o he challenges and
oppo uni ies aced by en ep eneu s, highligh ing hei con ibu ion o economic and social p og ess.
Table I. De ini ions o En ep eneu ship by di e en au ho s
Au ho
De ini ion o En ep eneu ship
Yea
Joseph A. Schumpe e
I is a p ocess o c ea i e des uc ion, in which en ep eneu s in oduce dis up i e inno a ions, mo e away om old
p oduc ion me hods and c ea e new p oduc s, p ocesses and ma ke s, causing economic and social changes.
1942
Howa d H. S e enson
I is he p ocess o c ea ing, launching and g owing new p ojec s, which in ol es iden i ying and exploi ing oppo uni ies,
acqui ing and alloca ing esou ces, inno a ion, leade ship and managemen , wi h he aim o c ea ing alue and gene a ing
economic and social impac . .
1985
Pe e F. D ucke
I is he sea ch o oppo uni ies, based on exis ing and/o new esou ces, wi h he aim o c ea ing economic and social
alue, in ol ing he iden i ica ion, e alua ion and exploi a ion o oppo uni ies, esou ce alloca ion, isk aking and
decision making. in unce ain en i onmen s.
1986
William B. Ga ne
I is a social and economic p ocess, which in ol es iden i ying and exploi ing oppo uni ies, c ea ing and g owing new
en u es, and gene a ing economic and social alue.
1988
Sco A. Shane
I is he p ocess o iden i ying and exploi ing oppo uni ies, based on he esou ces, skills and expe iences o en ep eneu s,
wi h a iew o c ea ing and g owing new en u es, inno a ion and gene a ing economic and social alue.
2003
Sa as D. Sa as a hy
I is a decision-making p ocess, based on an app oach ha in ol es iden i ying and exploi ing oppo uni ies, aking isks,
lea ning om ac ion, and adap ing o en i onmen al condi ions and con ingencies.
2008
E ic Ries
I is a mu ual p ocess o expe imen a ion, lea ning and adap a ion, which in ol es he con inuous c ea ion and alida ion
o hypo heses, he de elopmen o inno a i e p oduc s and se ices, and he sea ch o alue c ea ion, based on cons an
eedback om he ma ke and use s.
2011
Julian Bi kinshaw
I is a p ocess o c ea ing, de eloping and implemen ing new ideas and oppo uni ies, wi hin o ou side exis ing
o ganiza ions, wi h he aim o imp o ing pe o mance and compe i i eness.
2012
Van Gelde en e al.,
I is a dynamic p ocess ha in ol es iden i ying and aking ad an age o business oppo uni ies, esou ce alloca ion and
alue c ea ion.
2015
Ta assoli e al.,
En ep eneu ship can be de ined as he iden i ica ion, e alua ion and exploi a ion o oppo uni ies o he c ea ion o
economic, social o cul u al alue h ough he c ea ion o new companies o h ough inno a ion in exis ing companies.
2021
PROPENSITY FOR ENTREPRENEURSHIP ACCORDING TO CHARACTERISTICS
En ep eneu ship p opensi y e e s o an indi idual's inclina ion o p edisposi ion o ini ia e and manage an en ep eneu ial p ojec .
I is a mul idimensional cons uc ion ha encompasses se e al cogni i e, a ec i e and beha io al cha ac e is ics ha di e en ia e
en ep eneu s om non-en ep eneu s.
Schola s ha e ex ensi ely in es iga ed he ac o s ha shape he p opensi y o en ep eneu ship, including demog aphic
a iables, pe sonal ac o s, en i onmen al ac o s, and cul u al alues. Fo example, se e al s udies ha e shown ha indi iduals
wi h a highe le el o educa ion, p o essional expe ience and inancial esou ces a e mo e likely o become en ep eneu s (Shane,
2003; an P aag and Ve sloo , 2007). Likewise, pe sonali y ai s such as sel -e icacy, locus o con ol and isk- aking ha e been
shown o be posi i ely co ela ed wi h en ep eneu ial in en ions (Zhao e al., 2005; Rauch and F ese, 2007).
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In e ms o pe sonal ac o s, gende and age a e pa icula ly ele an . Ve heul e al. (2005) and Ma low, S., & McAdam,
M. (2013) sugges ha women a e less likely o be in ol ed in en ep eneu ial ac i i ies han men. Se e al ac o s ha e been poin ed
ou o explain his gende dispa i y, including he p esence o gende s e eo ypes, which can limi women's oppo uni ies in a eas
such as unding, access o ne wo ks and public ecogni ion. In addi ion, hey poin ou ha women also ace challenges ela ed o
he balance be ween wo k and pe sonal li e, which can make i di icul o econcile hei en ep eneu ial ac i i ies wi h o he
esponsibili ies.
Rega ding age, Reynolds e al. (2005) sugges ha he p opensi y o en ep eneu ship is highe among young adul s and
dec eases wi h age. This pa e n can be explained by a g ea e willingness o young adul s o ake isks and explo e new business
oppo uni ies. In addi ion, Shane (2009) poin s ou ha age can a ec indi iduals' willingness o ake inancial and pe sonal isks,
as well as hei abili y o acqui e esou ces and skills necessa y o en ep eneu ship.
Howe e , Bosma e al. (2012) s a e ha i is impo an o no e ha hese ends may a y acco ding o he cul u al and socioeconomic
con ex . Fo example, in coun ies whe e employmen oppo uni ies a e limi ed, he p opensi y o en ep eneu ship may be highe
ac oss all age g oups and gende s.
Addi ionally, en i onmen al ac o s such as access o en ep eneu ial ne wo ks, a ailabili y o inance and egula o y
amewo ks ha e also been shown o in luence he p opensi y o en ep eneu ship (Gnyawali and Fogel, 1994; Reynolds e al.,
2005). Finally, cul u al alues such as indi idualism, inno a ion and p opensi y o isk a e also p eponde an o he p og ess o
en ep eneu ship, wi h s udies indica ing ha indi iduals om coun ies wi h highe le els o hese alues a e mo e likely o become
en ep eneu s (Ho s ede, 2001; Es in e al., 2013).
Despi e ex ensi e esea ch on he subjec , he e is s ill an ongoing deba e among schola s abou he exac na u e o he
ela ionship be ween hese ac o s and he p opensi y o en ep eneu ship. Some a gue ha he e a e signi ican indi idual
di e ences in en ep eneu ial p opensi y ha canno be ully explained by demog aphic o psychological ac o s (Ga ne , 1988).
O he s sugges ha he ole o cul u e and en i onmen should be u he conside ed in unde s anding en ep eneu ship p opensi y
(Shane and Venka a aman, 2000).
B ie ly, he p opensi y o en ep eneu ship is a complex and mul idimensional cons uc ion ha encompasses se e al
indi idual, en i onmen al and cul u al ac o s. While much emains o be lea ned abou he na u e and de e minan s o
en ep eneu ial p opensi y, exis ing esea ch highligh s he impo ance o indi idual ai s, en i onmen al ac o s, and cul u al alues
in shaping en ep eneu ial in en ions and beha io s.
FACTORS THAT INFLUENCE ENTREPRENEURSHIP
En ep eneu ship is a complex ac i i y ha in ol es he c ea ion and de elopmen o new businesses, p oduc s o se ices. The
scien i ic li e a u e has poin ed ou se e al ac o s ha in luence bo h he decision o become an en ep eneu and he success o he
en e p ise.
Acco ding o Shane and Venka a aman (2000), he business en i onmen is one o he mos signi ican ac o s ha
in luence en ep eneu ship. Well-es ablished companies in a gi en a ea can inhibi he eme gence o new en u es, while a eas wi h
less business de elopmen can s imula e i . In addi ion, go e nmen policies such as ax incen i es and aining p og ams o
en ep eneu s can also a ec en ep eneu ship (Aud e sch e al., 2015).
Social capi al is ano he ele an ac o o en ep eneu ship. En ep eneu s wi h a solid, quali y ne wo k o con ac s end
o be mo e success ul han hose who don' . The collabo a ion and suppo o o he en ep eneu s, in es o s and men o s can help o
o e come he ini ial challenges and inc ease he chances o success, being co obo a ed by au ho s such as Adle and Kwon (2002)
and Bu (1997).
The au ho s Aud e sch e al. (2015) also poin ou ha he le el o educa ion also in luences en ep eneu ship. The highe
he educa ional le el o he en ep eneu , he mo e likely he is o succeed in ela ion o he o he s. In his way, educa ion can help
in he de elopmen o skills necessa y o en ep eneu ship, such as planning, inancial managemen and leade ship.
The in insic cha ac e is ics o he en ep eneu a e also impo an ac o s. Sel -e icacy, ha is, he belie ha one can
pe o m di icul asks, is a ele an ai o success ul en ep eneu s. O he equally impo an ai s include mo i a ion,
pe se e ance and he abili y o ake isks. S udies by au ho s such as Bandu a e al., (1999) and McClelland (1961) suppo he
impo ance o hese cha ac e is ics.
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I is also ele an o men ion he cul u al en i onmen , as cul u es ha alue inno a ion and isk a e mo e likely o ha e a
g ea e numbe o en ep eneu s, in con as o cul u es ha discou age i , isking comp omising he c ea ion o new en u es, as
co obo a ed by Ho s ede (2001) and Gund y e al. (2014).
Thus, i is essen ial o unde s and and iden i y hese ac o s ha p o e o be use ul o he c ea ion o go e nmen policies
and p ac ical ini ia i es, boos ing he de elopmen o new en ep eneu s.
Wi h he aim o co obo a ing he a o emen ioned ac o s, he s udy by Teixei a e al. (2018) complemen s his knowledge,
analyzing he Eu opean pano ama and p o iding unde s anding o how en ep eneu ship ac o s can a y acco ding o di e en
con ex s. The a icle by Teixei a e al. (2018) e eals ha educa ion ep esen s a p eponde an ac o o en ep eneu ial in en ion
in coun ies like Po ugal and Spain, bu no in coun ies like Swi ze land and No way. This indica es ha he in luence o educa ion
may a y acco ding o he cul u al and economic con ex o each coun y.
Fu he mo e, he a icle by Teixei a e al. (2018) also sugges s ha ac o s such as age, gende , p e ious en ep eneu ial
expe ience and access o inance can in luence en ep eneu ial in en ions, emphasizing he impo ance o conside ing hem in he
analysis o en ep eneu ship.
GOVERNMENT POLICIES TO SUPPORT ENTREPRENEURSHIP
En ep eneu ship has been inc easingly ecognized as an impo an o ce o he global economy. In his con ex , go e nmen
policies o suppo en ep eneu ship a e essen ial o he de elopmen o new en u es and job c ea ion.
One o he mos e ec i e policies o suppo en ep eneu ship is he p o ision o ax incen i es. These incen i es can
include ax b eaks o new en u es o ax b eaks o companies ha c ea e jobs. Acco ding o se e al au ho s, including Aud e sch
e al. (2015), hese incen i es can be undamen al o s imula e he c ea ion o new companies and encou age economic g ow h.
Ano he impo an go e nmen policy is he a ailabili y o inancing o new en u es. This could include low-in e es
loans o g an s o new en u es. Some au ho s, such as Shane and Cable (2002), a gue ha lack o unding is one o he main
ba ie s o en ep eneu ship. The e o e, he a ailabili y o a o dable inance is c i ical o suppo ing new en u es.
The c ea ion o educa ion and aining p og ams o en ep eneu s is also an impo an go e nmen policy. These p og ams
may include aining cou ses in business managemen , ma ke ing, inance and o he skills essen ial o he success o a new en u e.
Au ho s such as B ush e al. (2003) and Ka z and G een (2009) a gue ha educa ion and aining a e key o success ul
en ep eneu ship.
The c ea ion o business incuba o s and accele a o s is ano he impo an go e nmen policy o suppo en ep eneu ship.
These ins i u ions p o ide wo kspace, business suppo and access o inance o new en u es. Au ho s such as Hacke and Dil s
(2004) claim ha business incuba o s and accele a o s a e essen ial o suppo he de elopmen o new en u es.
Finally, c ea ing ne wo ks o en ep eneu s and men o s is also an impo an go e nmen policy. These ne wo ks o e
suppo and guidance o new en ep eneu s, helping hem o e come challenges and de elop hei en ep eneu ial skills. Au ho s
such as Adle and Kwon (2002) and Chesb ough (2010) de end he impo ance o hese ne wo ks o suppo en ep eneu ship.
In sho , go e nmen policies o suppo en ep eneu ship can include ax incen i es, a o dable unding, aining and
capaci y building p og ams, business incuba o s and accele a o s, and ne wo ks o en ep eneu s and men o s. Implemen ing hese
policies can be ins umen al in suppo ing new en u e c ea ion and economic g ow h.
BACKGROUND IN PORTUGAL AND THE AUTONOMOUS REGION OF MADEIRA
En ep eneu ship has been ecognized as an impo an d i e o economic g ow h and job c ea ion, and Po ugal and he
Au onomous Region o Madei a a e no excep ion. In Po ugal, he e a e se e al public policies and p og ams o encou age
en ep eneu ship ha aim o encou age he de elopmen o s a ups and inno a i e businesses (IAPMEI - Agência pa a a
Compe i i idade e Ino ação, I.P., 2023). Among he mos impo an go e nmen ini ia i es a e S a up Po ugal (S a up Po ugal,
2023), which aims o c ea e a s onge and mo e dynamic en ep eneu ial ecosys em ac oss he coun y, and Po ugal Ven u es
(His ó ia, Visão e Valo es - Po ugal Ven u es, 2023), which is a en u e capi al und ha in es s in inno a i e s a ups and small
and medium-sized en e p ises (SMEs) wi h high g ow h po en ial.
In he Au onomous Region o Madei a, en ep eneu ship has also been an impo an ec o o economic de elopmen .
AJEM (Associação de Jo ens Emp esá ios Madei enses, 2023), which is he Associa ion o Young Madei an En ep eneu s, has
In e na ional Jou nal o Cu en Science Resea ch and Re iew
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played a key ole in suppo ing and p omo ing new companies and s a ups. AJEM has de eloped aining, men o ing and incuba ion
p ojec s, in addi ion o es ablishing pa ne ships wi h public and p i a e en i ies in o de o encou age en ep eneu ship in he egion.
Ne e heless, S a up Madei a (S a up Madei a, 2023) is ano he impo an ini ia i e in he egion, which o e s suppo
o en ep eneu s in he o m o incuba ion, accele a ion and inancing. The business incuba o has been cen al o suppo ing he
c ea ion o new companies in he Au onomous Region o Madei a, as well as helping en ep eneu s o de elop hei p ojec s and
business ideas.
I is also ele an o add ess he a ious ini ia i es implemen ed by he Regional Go e nmen o Madei a, in o de o
s imula e en ep eneu ship and imp o e he business en i onmen . These ini ia i es include es ablishing business incuba o s,
inancially suppo ing s a ups, c ea ing a men o ne wo k and p omo ing ne wo king e en s. Howe e , he e is s ill oom o
imp o emen in he egion's en ep eneu ship ecosys em, including de eloping in as uc u e and p omo ing a s onge
en ep eneu ial cul u e. An example o a public ins i u ion ha adop s measu es o encou age en ep eneu ship is he Ins i u o de
Emp ego da Madei a, IP-RAM (IEM), which ansla ed means Madei a Employmen Ins i u e.
THE MADEIRA EMPLOYMENT INSTITUTE (IEM) AND ITS PROGRAMS
The mission o his public body is “ he coo dina ion and implemen a ion o he employmen policy in he Au onomous Region o
Madei a, p omo ing he c ea ion and quali y o employmen and comba ing unemploymen , h ough he implemen a ion o ac i e
measu es and ac ions o p omo e employmen ”, and i s ision is “ o ind, a all imes, he bes answe s o hose who need suppo
in he a ea o employmen ” (Missão, Visão e Valo es - IEM, 2023).
Unlike he IEFP, ha is, he Ins i u e o Employmen and P o essional T aining on he Po ugal mainland, IEM ocuses
mainly on he a ea o employmen , wi h he pa o p o essional aining managed unde he supe ision o he Regional Sec e a ia
o Educa ion, Science and Technology, h ough he Ins i u o pa a a Quali icação, IP-RAM (IQ, IP-RAM, 2023), which ansla ed
means Ins i u e o Quali ica ion, while he Employmen Ins i u e, is unde he supe ision o he Regional Sec e a ia o Social
Inclusion and Ci izenship (Ins i u o de Emp ego da Madei a, IP-RAM, 2023).
In his sense, he Madei a Employmen Ins i u e seeks o comba unemploymen in he egion, h ough measu es in a o
o he popula ion, namely ac ing as an in e media y ins i u ion be ween companies/en i ies and wo ke s looking o a job. In addi ion
o he Job Cen e , he Employmen Ins i u e also has an Employmen P og ams Depa men , which seeks, h ough inancial
incen i es g an ed o companies and/o o he en i ies (di ec ly o indi ec ly), o p o ide an oppo uni y o an in e nship,
occupa ional p og am o employmen con ac , o he unemployed egis e ed in he ins i u ion (Ins i u o de Emp ego da Madei a,
IP-RAM, 2023).
In his way, and in addi ion o bene i ing he egis e ed unemployed, h ough he o e o a placemen , he Employmen
Ins i u e also eme ges as an ins i u ion ha widely assis s companies, since, in addi ion o being an in e media y in he ec ui men
o po en ial wo ke s (by imp o ing he e iciency in he sea ch o human esou ces), i also p o ides inancial bene i s (whe he
h ough eimbu semen s o h ough bonuses), h ough exis ing p og ams (Ins i u o de Emp ego da Madei a, IP-RAM, 2023).
In addi ion o he connec ion be ween en i ies and use s, he Employmen Ins i u e also gi es he unemployed he
oppo uni y o c ea e hei own business, ha is, o c ea e hei own job. In his way, no only a e oppo uni ies a he le el o
employmen o hi d pa ies gi en, bu his ins i u ion also o e s oppo uni ies a he le el o en ep eneu ship, wi h inancial and
managemen suppo being g an ed o new companies c ea ed, wi hin he scope o hese p og ams (Ins i u o de Emp ego da Madei a,
IP-RAM, 2023).
Du ing he pe iod unde e iew, om 2009 o 2022, ha e aken place o a e in p og ess he p og ams CPE – C ea ion o
Own Employmen , PADE – Suppo P og am o Unemployed En ep eneu s, PEED – P og am o S imula e En ep eneu ship o
Unemployed People, CRIEE – P og am o he C ea ion o Companies and Employmen and eJo em – Young En ep eneu
P og am.
Le us now p oceed o he explana ion o each o he p og ams in ques ion.
CPE - CREATION OF OWN EMPLOYMENT (2001 - CURRENTLY)
Go e ned by O dinance numbe 101/2001 o Sep embe 6 h, published in he O icial Jou nal o he Au onomous Region o
Madei a, Se ies I, numbe 88, his p og am o comba unemploymen aims a c ea ing one's own employmen , upon paymen o a

In e na ional Jou nal o Cu en Science Resea ch and Re iew
ISSN: 2581-8341
Volume 08 Issue 10 Oc obe 2025
DOI: 10.47191/ijcs /V8-i10-06, Impac Fac o : 8.048
IJCSRR @ 2025
www.ijcs .o g
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o he o al amoun o unemploymen bene i s, p o ided ha he unemployed pe son p esen s a business idea/p ojec ha ensu es
ull- ime employmen , and ha demons a es economic and inancial iabili y, and may e en bene i om an ex a subsidy called
in English “Special Subsidy”, when he o e all amoun o unemploymen bene i s p o es o be insu icien o ca y ou he p ojec
(IEM, Rela ó io Emp ego e Coesão Social: B e e Balanço 2011, 2012). In his way, his p og am is e y impo an in comba ing,
no only he unemploymen o use s who, h ough a icula ion be ween Social Secu i y and he Madei a Employmen Ins i u e, can
bene i om an en ep eneu ship p og am o he c ea ion o hei own job, bu also e y ele an o inc ease he le els o
en ep eneu ship in he Au onomous Region o Madei a, h ough he c ea ion o new businesses and companies.
PADE – SUPPORT PROGRAM FOR UNEMPLOYED ENTREPRENEURS (2009 - 2013)
The PADE p og am was c ea ed h ough O dinance numbe 74/2009 o July 10, and aimed o “encou age and suppo he c ea ion
o hei own jobs by unemployed people wi h an en ep eneu ial spi i , as well as con ibu ing o he e en ual c ea ion o o he jobs
necessa y o he de elopmen o he said p ojec ”, p o ided ha i was economically, inancially and echnically iable. Candida es
o his p og am could be unemployed people who ound hemsel es in ha si ua ion in olun a ily, who had been egis e ed o
mo e han 12 mon hs, o young people aged up o 24 who had no had mo e han 6 mon hs o p o essional expe ience as an employed
pe son. This p og am, included inancial suppo in he o m o non- e undable subsidies, in e ms o in es men , up o 60% o he
eligible in es men , and which could be added a eimbu sable subsidy, in eligible cases, and in e ms o job c ea ion, co esponding
o 18 imes he minimum mon hly wage o each job c ea ed. The la e could be inc eased wi h bonuses and p emiums depending
on he cha ac e is ics o he wo ke s hi ed. Unemployed people who we e ecipien s o unemploymen bene i s should apply o he
a ibu ion o he paymen o unpaid bene i s in a single paymen , an amoun ha en e s in o he calcula ion o he in es men suppo
g an ed, in he non- e undable subsidy componen (IEM, Rela ó io Emp ego e Coesão Social: B e e Balanço 2011, 2012).
PEED – PROGRAM TO STIMULATE ENTREPRENEURSHIP FOR UNEMPLOYED PEOPLE (2013 - 2020)
C ea ed h ough O dinance numbe 32/2013, o May 13, PEED main ained he same objec i e as PADE, he p og am ha eplaced
i , and included inancial suppo o job c ea ion and in es men . This was a e y impo an ins umen in iew o he inc eased
demand o solu ions o en ep eneu ship and o c ea ing hei own jobs, e lec ing “ he isk and challenge ha unemployed people
decided o assume and ace”, cons i u ing i sel as a esponse, no only o he p oblem o unemploymen , bu also o encou age
en ep eneu ship. This p og am allowed access o amoun s highe han he CPE, and i s c ea ion was ca ied ou wi h he aim o
be e a ionalizing esou ces, wi h g ea e ocus on job c ea ion (IEM, Rela ó io Emp ego e Coesão Social: B e e Balanço 2013,
2014).
CRIEE – PROGRAM FOR THE CREATION OF COMPANIES AND EMPLOYMENT (2020 - CURRENTLY)
The CRIEE p og am is go e ned by O dinance numbe 16/2020, o Feb ua y 6, main aining he same objec i e o he PADE and
PEED p og ams, a p og am ha eplaced he la e , and also includes inancial suppo o he c ea ion o jobs and in es men .
Compa ed o he PEED, he CRIEE p og am now p o ides o he possibili y o p omo e s (unemployed en ep eneu s who apply
o he p og am) o a end a aining cou se in he a ea o managemen (bo h in he p ojec analysis phase and in he ollow-up
phase), when necessa y, his expense being eligible. Inc eases a e o eseen in e ms o hi ing he e y long- e m unemployed
( egis e ed a he employmen cen e o a leas 24 mon hs), as well as in e ms o job c ea ion in he a eas o he blue, g een and/o
ci cula economy, and o p ojec s based in u al councils wi h a esiden popula ion o less han 15,000 inhabi an s. A he momen ,
wi hin he scope o his p og am, he p ocesses o paymen o p omo e s a e simpli ied in jus wo momen s, wi h he i s appea ing
a e he signa u e o he con ac , and he second a e he c ea ion o all he p oposed jobs and p oo o applica ion o alloca ed
amoun s (IEM, Rela ó io 2020: Emp ego e Coesão Social - B e e Balanço, 2020).
EJOVEM – YOUNG ENTREPRENEUR PROGRAM (2022 - CURRENTLY)
eJo em, c ea ed by O dinance numbe 106/2022 o Ma ch 2nd, comes wi h a special ocus on unemployed young people aged
be ween 18 and 29 yea s old, aiming o s imula e hei en ep eneu ial spi i and he c ea ion o hei own job, in eg a ing p io
heo e ical aining in he a ea o managemen (180 hou s o e 2 mon hs, wi h he igh o subsidize ood and anspo ), inancial
suppo o he p ojec o c ea e jobs and companies, and suppo a he le el o consul ancy in i s implemen a ion whe e necessa y.
In e na ional Jou nal o Cu en Science Resea ch and Re iew
ISSN: 2581-8341
Volume 08 Issue 10 Oc obe 2025
DOI: 10.47191/ijcs /V8-i10-06, Impac Fac o : 8.048
IJCSRR @ 2025
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4928 *Co esponding Au ho : Sé gio Jesus Teixei a Volume 08 Issue 10 Oc obe 2025
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Page No. 4922-4936
In his way, condi ions a e p o ided o young people o acqui e he knowledge, skills and abili ies necessa y o c ea e a p ojec
based on a business idea, aiming a i s success ul implemen a ion and economic g ow h. Candida es who p esen a iable in es men
p ojec , which leads o job c ea ion, a e awa ded inancial suppo pe job c ea ed (maximum 4), in he amoun equi alen o 10
imes he IAS (Social Suppo Index), wi h an inc ease o up o 30% depending on he cha ac e is ics o he placemen , and inancial
in es men suppo o up o 15 imes he IAS o each job c ea ed and up o a limi o ou , also being inc eased in cases whe e he
p ojec alls wi hin he scope o he economy blue, g een and/o ci cula , in he echnological a ea, o i i is loca ed in a municipali y
wi h less han 15 housand esiden s (IEM, Rela ó io 2022: Emp ego e Coesão Social - B e e Balanço, 2022).
METHODOLOGY
In o de o gi e colo o he analysis o he subjec in ques ion, seconda y da a ob ained om he annual balance epo s o he
Ins i u o de Emp ego da Madei a, IP-RAM ( ela ó ios Emp ego e Coesão Social - B e e Balanço), om 2011 o 2022, published
on he ins i u ion's websi e, a h ps://www.iem.madei a.go .p /es a is icas-anuais/, whe e da a we e ob ained o he pe iod be ween
2009 and 2022, using a quan i a i e me hodology.
Da a e e ing o he p og ams CPE – C ea ion o Own Employmen , PADE – Suppo P og am o Unemployed
En ep eneu s, PEED – P og am o S imula e En ep eneu ship o Unemployed People, CRIEE – P og am o C ea ion o
Companies and Employmen and eJo em – Young En ep eneu P og am we e wi hd awn.
Table II dis inguishes he di e en p og ams by hei na u e and pe manence o e ime, in he pe iod unde e iew om
2009 o 2022.
Table II. Dis inc ion o he di e en IEM p og ams by hei na u e, be ween 2009 and 2022, p epa ed by he au ho s, based on he
IEM annual balance epo s
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Speci ic
p og am o
bene icia ies o
unemploymen
bene i s
CPE
Mo e gene ic
p og am
PADE
PEED
CRIEE
Speci ic
p og am o
young people
(did no exis )
eJo em
Table III shows he e olu ion o he CPE, PADE, PEED and CRIEE p og ams be ween 2009 and 2022, based on he annual balance
epo s o he IEM ( ela ó ios Emp ego e Coesão Social - B e e Balanço), be ween 2011 o 2022. Al hough he eJo em p og am is
also pa o his a icle, since his employmen p og am is s ill e y ecen , he e is s ill no enough da a o i o be included in able
III. In e ms o execu ion in 2022, his p og am welcomed 15 young people o heo e ical aining in managemen , and is s ill in an
ini ial phase (IEM, Rela ó io 2022: Emp ego e Coesão Social - B e e Balanço, 2022). Tables IV and V lis he dis inc ions in
pe cen age o jobs c ea ed by gende , educa ional quali ica ions, age and p e ious p o essional expe ience.
In e na ional Jou nal o Cu en Science Resea ch and Re iew
ISSN: 2581-8341
Volume 08 Issue 10 Oc obe 2025
DOI: 10.47191/ijcs /V8-i10-06, Impac Fac o : 8.048
IJCSRR @ 2025
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4929 *Co esponding Au ho : Sé gio Jesus Teixei a Volume 08 Issue 10 Oc obe 2025
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Page No. 4922-4936
Table III. E olu ion o he CPE, PADE, PEED and CRIEE p og ams be ween 2009 and 2022, adap ed based on IEM annual balance epo s om 2011 o 2022
¹ Wo k s a ions paid in he ollowing yea
² I co esponds o he special subsidy g an ed by he IEM in cases whe e he amoun o unemploymen bene i s was no su icien
³ Wo k s a ions c ea ed ha we e P omo e s
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
CPE
App o e
d p ojec s
18
21
17
17
17
6
1
2
2
4
1
2
0
1
App o e
d jobs
(P omo e
s)
19
22
17
20
18
6
1
2
2
4
1
2
0
1
Jobs
c ea ed
(P omo e
s) ¹
6
12
18
26
19
4
2
2
2
2
1
2
0
0
Financial
execu ion
²
28.577,41€
27.050,92€
29.334,58€
16.515,17€
30.549,67€
5.936,40€
10.977,57€
2.954,10€
13.060,96€
7.104,00€
3.758,44€
0,00€
0,00€
0,00€
PADE,
PEED
and
CRIEE
App o e
d p ojec s
15
37
28
13
20
45
79
84
67
64
51
35
50
49
App o e
d jobs
32
75
44
21
48
81
123
163
123
114
91
56
89
85
Jobs
c ea ed ¹
22
46
53
19
23
82
110
157
114
91
110
55
76
77
O which
P omo e
s ¹ ³
16
39
30
14
17
55
77
106
64
57
51
36
47
55
Financial
execu ion
210.359,86
€
703.229,86
€
1.057.049,4
7€
489.415,04
€
464.508,77
€
754.009,52
€
1.051.962,8
7€
1.947.129,7
7€
1.142.888,1
7€
962.425,05
€
1.203.610,
26€
566.047,99
€
774.219,04
€
890.318,98
€
In e na ional Jou nal o Cu en Science Resea ch and Re iew
ISSN: 2581-8341
Volume 08 Issue 10 Oc obe 2025
DOI: 10.47191/ijcs /V8-i10-06, Impac Fac o : 8.048
IJCSRR @ 2025
www.ijcs .o g
4930 *Co esponding Au ho : Sé gio Jesus Teixei a Volume 08 Issue 10 Oc obe 2025
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Page No. 4922-4936
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
CPE
Male indi idual
( epo
does no
men ion)
( epo
does no
men ion)
83,3%
61,54%
73,68%
100%
100%
( epo does
no men ion)
( epo does
no men ion)
( epo
does no
men ion)
( epo does
no men ion)
( epo
does no
men ion)
( epo
does no
men ion)
( epo
does no
men ion)
Le el o
educa ion
Highe
( epo
does no
men ion)
( epo
does no
men ion)
( epo does
no men ion)
3,85%
10,53%
50%
0%
50%
0%
100%
100%
( epo
does no
men ion)
( epo
does no
men ion)
( epo
does no
men ion)
Seconda y
( epo
does no
men ion)
( epo
does no
men ion)
27,8%
38,46%
52,63%
0%
100%
( epo does
no men ion)
0%
0%
0%
( epo
does no
men ion)
( epo
does no
men ion)
( epo
does no
men ion)
3 d cycle
( epo
does no
men ion)
( epo
does no
men ion)
44,4%
23,08%
36,84%
25%
0%
( epo does
no men ion)
50%
0%
0%
( epo
does no
men ion)
( epo
does no
men ion)
( epo
does no
men ion)
2nd cycle
( epo
does no
men ion)
( epo
does no
men ion)
( epo does
no men ion)
34,62%
25%
0%
( epo does
no men ion)
50%
0%
0%
( epo
does no
men ion)
( epo
does no
men ion)
( epo
does no
men ion)
1s cycle
( epo
does no
men ion)
( epo
does no
men ion)
( epo does
no men ion)
0%
0%
( epo does
no men ion)
0%
0%
0%
( epo
does no
men ion)
( epo
does no
men ion)
( epo
does no
men ion)
No schooling
( epo
does no
men ion)
( epo
does no
men ion)
( epo does
no men ion)
0%
0%
( epo does
no men ion)
0%
0%
0%
( epo
does no
men ion)
( epo
does no
men ion)
( epo
does no
men ion)
Age
55 yea s o
olde
( epo
does no
men ion)
( epo
does no
men ion)
11,11%
11,54%
26,32%
“All suppo ed
unemployed we e
adul s,
essen ially aged
be ween 25 and
44 yea s old.”
0%
0%
0%
0%
0%
( epo
does no
men ion)
( epo
does no
men ion)
( epo
does no
men ion)
Be ween 45
and 54 yea s
old
( epo
does no
men ion)
( epo
does no
men ion)
38,89%
76,92%
0%
0%
0%
100%
0%
( epo
does no
men ion)
( epo
does no
men ion)
( epo
does no
men ion)
Be ween 35
and 44 yea s
old
( epo
does no
men ion)
( epo
does no
men ion)
( epo does
no men ion)
47,37%
100%
100%
100%
100%
( epo
does no
men ion)
( epo
does no
men ion)
( epo
does no
men ion)
Be ween 25
and 34 yea s
old
( epo
does no
men ion)
( epo
does no
men ion)
( epo does
no men ion)
( epo
does no
men ion)
( epo
does no
men ion)
0%
0%
0%
0%
( epo
does no
men ion)
( epo
does no
men ion)
( epo
does no
men ion)
Be ween 18
and 24 yea s
old
( epo
does no
men ion)
( epo
does no
men ion)
( epo does
no men ion)
( epo
does no
men ion)
( epo
does no
men ion)
0%
0%
0%
0%
0%
( epo
does no
men ion)
( epo
does no
men ion)
( epo
does no
men ion)
Ha e p e ious p o essional
expe ience
( epo
does no
men ion)
( epo
does no
men ion)
100%
( epo
does no
men ion)
( epo
does no
men ion)
( epo does no
men ion)
( epo does
no men ion)
( epo does
no men ion)
( epo does
no men ion)
( epo
does no
men ion)
( epo does
no men ion)
( epo
does no
men ion)
( epo
does no
men ion)
( epo
does no
men ion)
Table IV. E olu ion in pe cen age o jobs c ea ed (P omo e s) by gende , educa ional quali ica ions, age and p e ious p o essional expe ience o he CPE p og am, be ween 2009 and 2022, adap ed based on
he IEM annual balance epo s om 2011 o 2022, calcula ed by he au ho s (wi h he excep ion o gende and educa ion da a o 2011, which we e al eady indica ed in he epo as a pe cen age)