A think-tank for Austria’s economy

The Senate of the Economy is a non-partisan organisation that wants to be a driving force in shaping the (economic) future.

Being a non-partisan business organisation, the Senate of the Economy sees itself as a driving force for shaping an eco-social and sustainable economy and society. It offers concrete and practical know-how for entrepreneurs and political decision- makers. The Senate does not only see itself as a think tank but also an action group, especially in the fields of economy, ecology, education and health. Chairman Hans Harrer, Mahdi Allagha and Ludwig Stepan, Members of the Executive Board, explain how the Senate works.

What does the Senate of the Economy do?
Mahdi Allagha: The Senate of the Economy is Austria’s largest, independent and cross-sector business organisation for the promotion of a strong and resilient business location and serves as the mouthpiece of Austria’s small and medium-sized enterprises. We focus on constructive, sustainable and long-term foundations, free of any particular interests. When political actors commit to only one side, this leads to a lack of diversity in the political debate and impairs democratic discourse. Since we do not allow ourselves to be taken in by any side and stand for expertise and integrity, the Senate has developed into a recognised voice of the Austrian business community since its foundation in 2005.

Who is appointed to the Senate? On the internet you can find the description that the Senate is “an exclusive business organisation”.
Hans Harrer: Fundamentally, we are very inclusive, we represent the centre of the entrepreneurial society. With us, the focus is on the sovereign, the citizens, the doers, the entrepreneurs. The Senate stands for an eco-social economy, a society in balance. People who want to face the challenges of society outside political convictions and particular interest groups. Most companies and their creators are appointed to the Senate because other entrepreneurs who have already identified with the Senate’s tasks recommend them to our entrepreneurial community sharing the same values. That is why we ask, ‘who fits in with us?’. Admission requires a personal interview with our management to determine whether our values match.
Ludwig Stepan: Due to this admission procedure, you notice quite quickly, especially at Senate events, that we are a special community of values. A partnership in the Senate is not an alliance of convenience of a lobbying association, but a connection out of conviction. There are synergies, cooperation, an unlimited transfer of knowledge and know-how.

You describe the Senate itself as a think tank, but “above all as a do tank”. What is the process like from thinking to doing?
Allagha: Our task as an organisation is to promote innovation at all levels of our society, especially for small and medium-sized enterprises, free of ideologies and party politics, to point out pressing problems and to discuss them in a solution-oriented manner. In this way, we can provide politicians with concrete proposals for solutions and act efficiently and excellently for the benefit of the economy and society. We bring the actors into the companies and advocate for knowledge transfer at European and international level. The problems of the future can only be solved together. It is important that this is done with respect and at eye level!

What do you mean by “practical support for companies and politicians to ensure future viability”?
Harrer: The Senate’s partners are primarily entrepreneurs, personalities from Austrian companies from the SME sector, but also from corporations. The expertise of these drivers and shakers makes it possible to enrich practically all socio-political and entrepreneurial concerns through solutions with user knowledge. The Senate is essentially also a communicator at eye level, in order to bring the data and facts precisely and efficiently to bear where the highest degree of effectiveness for solutions can arise.

How do you prioritise your fields of economy, ecology, education and health?
Ludwig Stepan: There is no prioritising between the four pillars of the Senate, because all areas are necessary to shape a healthy society and economy. Prioritising only arises when focal points are worked on, such as cooperation with universities, universities of applied sciences and teaching institutions, with which the Senate works on topic-driven projects for the future. In all the areas mentioned, the Senate of the Economy has its experts who support and stimulate each other with their practical knowledge. These are, for example, the MittelstandsAllianz, the KlimaAllianz, the Hospitality- Allianz, the Bildungsallianz or the Allianz für Ethik in der Wirtschaft

How can you support your members with your international business network?
Allagha: Our broad thematic positioning and the cooperation with other network partners and internationally operating organisations create many opportunities. For example, we maintain an extensive, qualified, factual and thematic knowledge transfer to Senates in other countries, both at European and international level. This is reflected in expert studies, delegation trips, congresses and project cooperation. The Senate’s goal is to initiate and support the efficient, solution-oriented exchange between our partner companies at eye level. The Senate places great emphasis on an appreciative exchange and understanding of cultures. After all, they are the foundation for long-term successful professional and system-oriented business relationships.

It is often said that Austria is in danger of losing out in the areas of IT and AI. Is this issue on your agenda?
Harrer: Of course. It is our fundamental mandate of every entrepreneur, every politician and every institution to promote education and research. Investments in educational institutions, universities and research centres specialised in IT and AI must lay the foundations for innovation and skilled labour. Collaboration between academia, industry and policymakers must help to promote joint research projects and expand knowledge in IT, AI and all other technology fields nationally and internationally. The establishment of collaboration platforms and networks must facilitate knowledge exchange and the development of best practices. It is necessary to create a conducive environment for a founder and start-up scene, especially in the field of future technologies. This includes a modern financing and capital culture, the provision of practice-oriented incubators and technology centres, as well as the complete reduction of bureaucratic hurdles by politics and its institutions. Continued reform of the FlexKap law (NB:law on flexible incorporated enterprises) is needed.

Only recently, there was a generational change at the top of the Senate. What changes are in store?
Allagha: There is no generational change, there is a generational alliance not only within the Senate itself. This reflects what the Senate is doing for our partner companies as well. A generational alliance always has the task of making the best of youth and experience available to the sovereign, i.e. the organisations or the companies. When it comes to shaping a sustainably balanced future, all decisions, freed from the sensitivities of individuals, must be subordinated to the founding culture and the greater good. Functioning generational adjustments and changes never happen in assessments of yesterday and tomorrow. They only work when they are almost unobtrusive in their processes.

What are the greatest challenges for Austria as a business location?
Harrer: Many problems are home-made and have the same causes. We need doers with expertise, courage and a sense of responsibility for the future. The rampant bureaucracy can only be contained by professional management, for example. At the same time, we must fight the deplorable particularism that kills every good idea before it has even been discussed, just because it was formulated by a politically different group. The trust of entrepreneurs and the population in political processes is crucial for a balanced, stable democracy. When actors are perceived as puppets of certain interests, public trust is undermined and damages our social order. Every action of an economic and political actor must therefore be scrutinised for its meaning and its added value for the citizens. Expertise, transparency and a sense of proportion, and above all common sense, are the foundation for decisions that serve the people.