Annual report of the Walloon SME Envoy (2012)

DIRECTORATE-GENERAL FOR ECONOMY, EMPLOYMENT AND RESEARCH

COMPETITIVENESS AND INNOVATION DEPARTMENT

ANNUAL REPORT

OF

THE WALLOON SME ENVOY – 2012

Daniel COLLET

Analysis of the implementation

of the Small Business Act’s

recommendations

in Wallonia

Economy

SPW

| Editions

Service Public de Wallonie – Direction de la Politi que Economique


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Preface

In a context of major institutional, economic and financial crisis, Wallonia has decided to take its destiny into its own hands and create a favourable environment to help SMEs face the challenges of a world in deep and rapid change.

In fact, the Walloon government introduced an economic revitalization plan several years ago through the Marshall 2.Green Plan (Plan Marshall 2.Vert). In this context, the Minister Jean-Claude Marcourt responsible for the Economy, SMEs, Foreign Trade and New Technologies placed innovation and the competitiveness of businesses at the heart of the actions carried out, recognizing that entrepreneurship, creativity and SMEs constitute a key lever for Wallonia's development.

It is from this perspective that in 2010, Wallonia, taking over the Presidency of the Competitiveness Council, supported the Commission's proposals designed to boost innovation in all its forms and supported the deployment of the European Small Business Act.

In 2011, a pioneer in this field, Wallonia launched a regional version emphasizing the topics deemed to be the most critical by the socio-economic partners consulted, namely: support for entrepreneurship, access to finance, the promotion of innovation strategies and growing internationalisation affecting SMEs in particular.

This report presents an assessment of the implementation of the SBA in Wallonia for the year 2012. It analysis all the European Commission's recommendations relevant to Wallonia and compares them with the actions introduced by the Region. This report, the second of its kind, has been the subject of wide consultation via a collaborative method involving all the public actors concerned.

In this report you will discover the process that the Walloon Region has introduced to ensure that the SBA is implemented, as well as the mechanisms used for monitoring and reporting back to our various interlocutors.

I would like to believe that this integrated process could serve as a source of inspiration for other Administrations at European level and, why not, be identified as good practice for promoting SMEs as the central actors in our continent's economic redeployment.

Daniel COLLET

Walloon SME Envoy Head of Department

Service Public de Wallonie


Contents

Preface ..................................................................................................................................................... 2

Introduction ............................................................................................................................................. 5

1 "Small Business Act": the European context .................................................................................. 5

2 Integration of the "Small Business Act" into the Walloon political agenda .................................... 6

3 The implementation of the SBA in Wallonia .................................................................................. 8

Analysis of the implementation of the Small Business Act's recommendations in Wallonia ................ 11

Principle 1: Entrepreneurship. ............................................................................................................... 14

1 Entrepreneurship and youth ........................................................................................................... 14

2 An environment favourable to entrepreneurship ........................................................................... 16

3 Support for business creation ........................................................................................................ 19

4 Business transfer ............................................................................................................................ 22

5 Openness to female and immigrant entrepreneurs ........................................................................ 24

6 In conclusion ................................................................................................................................. 25

Principle 2: Second chance .................................................................................................................... 27

1 A positive attitude in society with regard to re-entrepreneurs ....................................................... 27

2 A second chance supported like the first ....................................................................................... 27

3 Promoting success ......................................................................................................................... 28

4 In conclusion ................................................................................................................................. 29

Principle 3: Think Small First ............................................................................................................... 30

1 Compliance of future regulations with the "think small first" principle........................................ 30

2 Improving the regulatory environment .......................................................................................... 31

3 In conclusion ................................................................................................................................. 33

Principle 4: Business-friendly administration of SMEs ........................................................................ 35

1 Shortening of time periods ............................................................................................................ 35

2 Reducing requests for information ................................................................................................ 35

3 The introduction of a point of contact ........................................................................................... 38

4 "Services" and a "one stop shop" directive.................................................................................... 38

5 In conclusion ................................................................................................................................. 39

Principle 5: Facilitating SMEs' participation in public procurement .................................................... 41

1 Public procurement ........................................................................................................................ 41

2 State support .................................................................................................................................. 43

3 In conclusion ................................................................................................................................. 44


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Principle 6: Facilitating SMEs' access to finance, in particular venture capital and micro-loans ......... 46

1 Improving access to finance .......................................................................................................... 46

2 The "credit ombudsman" ............................................................................................................... 47

3 Introduction of "one-stop-shops" .................................................................................................. 49

4 In conclusion ................................................................................................................................. 50

Principle 7: Encouraging SMEs to take greater advantage of the potential of the single market ......... 51

Principle 8: Promoting the strengthening of qualifications within SMEs, as well as innovation in all its forms. ..................................................................................................................................................... 52

1 Encouraging SMEs' internationalisation in particular via participation in clusters. ...................... 52

2 Encouraging SMEs to become high-growth companies ................................................................ 53

3 Promoting the development of SMEs' skills with regard to research and innovation ................... 54

4 Transnational research activities ................................................................................................... 60

5 Participation in the implementation of the European "Lead market" initiative ............................. 61

6 In conclusion ................................................................................................................................. 61

Principle 9: Enabling SMEs to turn environmental challenges into opportunities ................................ 63

1 Supporting investment in the areas of the environment and energy .............................................. 65

2 Helping SMEs to adapt their activities in line with a sustainable economy .................................. 67

3 Taking measures to encourage SMEs and Very Small Enterprises to take advantage of simplified systems of the EMAS type, such as "EMAS-EASY" ........................................................................... 69

4 In conclusion ................................................................................................................................. 69

Principle 10: Supporting SMEs to take advantage of the growth of markets outside the EU ............... 71

1 Sponsorship of SMEs by large companies .................................................................................... 71

2 Walloon support for the establishment of SME networks ............................................................. 72

3 Raising awareness and skills directed towards international markets ........................................... 72

4 In conclusion ................................................................................................................................. 75

Results of the analysis ........................................................................................................................... 76

1 Global overview ............................................................................................................................ 76

2 Overview by topic ......................................................................................................................... 77

3 Working perspectives for 2013 ..................................................................................................... 79

Appendix 1: Members of the SBA Steering Committee ....................................................................... 81

Appendix 2: "Small Business Act" recommendations deemed not relevant: ........................................ 83


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Introduction

1 "Small Business Act": the European context

The "Small Business Act for Europe" 1 was adopted in December 2008 under the French Presidency of the European Union. It comprises ten principles expressed as actions to be implemented by the European Commission and Member States. It also specifies a set of legislative measures (directives and regulations), the majority of which have been adopted, such as for example the Late Payment Directive concerning which the European Union reached agreement under the Belgian Presidency (2nd half of 2010). When the SBA was adopted in December 2008, the European Council had set three areas of priority action for the implementation of the SBA: application across the board of the "Think Small First" principle at European decision-making process level, access to finance and access to markets.

In February 2011, the European commission published a second communication concerning the " Re-examination of the Small Business Act for Europe" 2 which was endorsed by the Competitiveness Council on 30 and 31 May 20113. This new communication assessed the actions carried out in the context of the Small Business Act for Europe" adopted in 2008 and proposes several new actions in order to reinforce the current process and formulates 29 additional recommendations to improve implementation of the areas deemed to be priorities for this re-examination: smart regulation, access to finance, access to markets and entrepreneurship as well as enterprise creation.

In its Communication, the Commission called for improved implementation of the SBA at national and regional level and asked Member States to appoint SME Envoys in order to stimulate the implementation of the SBA in their respective countries/regions.

Following the Council's conclusions, Wallonia decided to launch a "Walloon SBA" and to appoint a regional SME Envoy, bearing in mind the Belgian institutional context and the division of competences relating to support for SMEs between the Federal State and the Federal Entities.

In January 2013, the Commission published a new "Action plan for Entrepreneurship 2020". This plan is divided into three pillars:

• It emphasises the need to induce a deep cultural change in Europe, thanks to education focusing on effective entrepreneurship.

• It contains specific measures designed to help candidate entrepreneurs belonging to certain social groups, such as young people, women, senior citizens, migrants and the unemployed.

1 European Commission communication, A "Small Business Act" for Europe, COM(2008) 394 final. 2 European Commission communication, Re-examination of the "Small Business Act" for Europe, COM(2011) 78 final. 3 Council of the European Union, Conclusions of the Council concerning the Re-examination of the "Small Business Act" for Europe, 31 May 2011.


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• In addition, it aims to eliminate obstacles to entrepreneurship, in particular by facilitating access to finance, reducing administrative procedures and giving a second chance to entrepreneurs who have suffered from non-fraudulent bankruptcy.

This new Plan returns to certain themes in the SBA by accenting them. It will not therefore be subject to specific analysis in this report.

Important note: in the rest of this document, the term "Small Business Act" will be employed to designate both communications presented here: namely the Small Business Act for Europe and the Re-examination of the Small Business Act for Europe.

2 Integration of the "Small Business Act" into the Walloon political agenda

Wallonia's economic fabric is essentially composed of SMEs. This preponderance is especially marked in the share represented by these companies in Wallonia's productive structure1.

Given this reality, most regional policies generally target SMEs and de facto apply the "Think Small First" principle across the board with regard to financial support, innovation, internationalisation and industrial policy.

However, in order to strengthen this recognition, the CESW in its 2010-20142 memorandum invited the Walloon Government to build on the measures developed in the "Small Business Act" presented by the European commission on 25 June 2008, by making the theme of support for SMEs a specific priority for the next Walloon Government. The social partners highlighted five themes in particular where government action needed to be reinforced: access to public procurement, a second chance, the financing of companies, services in support of SMEs and innovation in SMEs.

This request was reiterated in the regional policy declaration in which the Walloon Government announced that it wished to launch a true Walloon plan for SMEs building on the European Small Business Act in order to make the spirit of initiative and entrepreneurship the true foundation of Walloon dynamism, in accordance with the principles of sustainable development.3

1 78% very small enterprises, 17% small enterprises, 4% medium-sized enterprises. "Distribution of local units by location and by importance class 31/12/2010" ONSS 2 CESRW, Memorandum 2009, p20-26 3 Declaration of Walloon regional policy 2009-2014, p28-29.


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A Pact in support of initiative was launched in the context of the Plan Marshall 2.vert (area 4-measure 1) based around four priority areas:

• To promote a spirit of entrepreneurship and to encourage business creation. • To facilitate entrepreneurship, support enterprise growth and facilitate transfers.

• To provide a favourable financial environment (with amongst other things the objective of increasing the supply of private venture capital).

• To position Wallonia at international level1.

As shown by the follow-up report on the implementation of the Plan Marshall 2.vert dated November 2012, produced by the SPW's Cross-sectional Strategies Cell2, most other measures specified in the initiative support Pact have been implemented or are in the process of implementation.

It is in this context that, in the first half of 2011, the Minister of the Economy and SMEs launched a reflection process designed to strengthen the implementation of the "Small Business Act" in Wallonia in line with the declaration of regional policy and the Region's competencies.

Specifically, several projects have been launched in order to propose new advances for Walloon SMEs. These projects are grouped under four themes3:

• Entrepreneurship

• Internationalisation • Finance • Innovation

This policy framework was endorsed by the Walloon Government (decisions of 13 October 2011 and 23 March 2012).

It is important to note at this stage that a great number of actions supporting the implementation of the SBA are financed via the Plan Marshall 2. Vert.

Finally, it also needs to be emphasised that in the context of Belgian federalism, the 10 principles contained in the Small Business Act are not totally transposable into the arsenal of regional policies. Some principles in the Small Business Act are in fact linked to federal competences and their implementation does not depend therefore on the Walloon authorities.

1 Plan Marshall 2.vert, p24-30. 2 http://gouvernement.wallonie.be/sites/default/files/nodes/story/4817-pm2vertrapportnovembre2012.pdf 3 It should be noted that access to public procurement is part of a more global administrative simplification plan: the "Together let's make things simple" plan.


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3 The implementation of the SBA in Wallonia

In order to ensure the smooth implementation of the SBA, the Walloon Region initiated a dynamic of dialogue and action gravitating around the Walloon SME Envoy.

An SME Envoy for Wallonia

In application of the European recommendation, Daniel COLLET, Head of Department of the Competitiveness and Innovation Department of the Wallonia Public Service, was appointed regional "SME Envoy" by the Walloon Government (GW 13 October 2011).

This mission has three aspects:

• To ensure improved communication to the various federal points of contact and the Belgian "SME Envoy" of Walloon measures that are part of the implementation of the Small Business Act.

• Periodically to evaluate the implementation of the European recommendations included in the "Small Business Act" and its re-examination in consultation with the actors in the field and the different Public Interest Bodies (PIB) concerned based on existing reporting mechanisms amongst others in the context of the Plan Marshall 2.Vert.

• To formulate recommendations relating to new actions to be implemented in order to strengthen Walloon political support for SMEs. Consistent with European Union recommendations, these will be discussed with the social partners and a high-level group of experts1.

Monitoring of the Walloon SBA

In order to facilitate the implementation of the SBA, a Steering committee has been created in order to maximise the synergies between the representatives of the Minister of the Economy and the SMEs and the Walloon actors concerned by one or other aspects of the SBA's 10 areas of focus. It therefore involves members of the administration, Public Interest Bodies, etc. (listed in appendix 1 of this document).

This body, which is controlled by the SME Envoy and his cell, is responsible for monitoring the implementation of the SBA in Wallonia. It is also responsible for evaluating the actions of enterprises, setting itself new targets and initiating new actions.

Through this Steering Committee, the SME Envoy therefore endeavours to bring together all the actors in order to review the progress of each file. Once a year, he organises more comprehensive monitoring, which serves as a basis for the preparation of this report.

1 cf the High Level Group proposed in the context of the Walloon SBA.


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Report on the implementation of the Walloon SBA

It appeared necessary to systematise the analysis of the implementation of the SBA in Wallonia and the priority projects chosen by the Government and social partners.

This is why the SME Envoy prepares an annual report concerning the implementation of the SBA's ten areas of focus in Wallonia.

This report, in addition to its main part, comprises two appendices:

• The first is designed to objectivise the situation of Walloon SMEs and the framework conditions that concern them in the light of the SBA's ten areas of focus (section prepared with the support of the IWEPS).

• The second includes a report from the SME Parliament (which took place on 06 November 2012).

This report serves as a report for the European Commission but also for all the Walloon actors taking part in the process. It also serves to highlight Walloon good practice. In addition, it is also used to provide information for the annual Fact sheet prepared by the European Commission for all the federal and federated authorities in Belgium.

This exercise also provides information for inclusion in the Walloon and Belgian reports prepared annually in respect of the National Reform Plan (Europe Strategy 2020), as well as for the annual bilateral meeting between the Commission and the Belgian Authorities relating to industrial and innovation policy and the entrepreneurial climate.

Consulting the actors

� The Walloon Economic and Social Council (Conseil Economique et Social de Wallonie - CESW)

The Walloon Economic and Social Council (CESW) is the joint regional institution for social consultation and dialogue and includes representatives of the employers and union organizations.

Once a year, the SME Envoy presents his annual report to it.

� The SME Parliament

The SME Parliament was created in 2011 in order to consult business bosses directly concerning the implementation of the SBA in Wallonia.

Apart from keeping them informed of the proper operation of the process, the initiative is designed to be participative. In fact, entrepreneurs are questioned directly concerning the different aspects of the SBA they would like to see improved during the next year.


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After a vote, these proposals are submitted to the SBA Steering Committee to evaluate their feasibility.

Full details about the operation of the SME Parliament can be found in the second appendix to this report.

� The High Level Group

In order to analyse possible new avenues of action to improve the implementation of the Walloon SBA, the Minister of the Economy and SMEs has demonstrated his desire to bring together a High Level Group on a regular basis composed of business bosses, representatives of the academic world and the civil service, as well as the social partners via the CESW's Economy Commission.

Its vocation is to stimulate the SBA implementation process in Wallonia via new inputs (analyses relating to the issues encountered and projects to be started).

Depending on the theme of the meeting, various experts are invited to provide clarification on the subject.


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Analysis of the implementation of the Small Business Act's recommendations

in Wallonia

Methodology used

1.1. Inventory of the relevant recommendations

The Small Business Act for Europe is a framework document that defines ten principles to implement in order to support SMEs. In order to guide the implementation of each of these ten principles, the European Commission has drawn up a list of recommendations to be followed at community level, but also at Member State level. For this study, which is designed to evaluate the implementation of the SBA's ten focus areas in Wallonia, we needed initially to list all the Commission's recommendations in order to identify those that come within regional competence. Out of the 69 recommendations made in the two communications Small Business Act for Europe1 and Re-examination of the Small Business Act for Europe2, only 42 recommendations were deemed relevant3 for analysis at Walloon level.

Only one of the 42 recommendations identified could not be evaluated4 : the analysis required to examine its degree of implementation in Wallonia correctly requires an in-depth examination of all the regional mechanisms which was not possible in the context of this analysis.

A list of the recommendations not examined and the reasons why they were not deemed to be relevant can be found in Appendix 2 in this document.

1 Communication of the Commission to the European Parliament, to the Council, the European Economic and Social Committee and to the Committee of the Regions - "Think Small First": Think Small First - A "Small Business Act" for Europe, COM (2008) 394 final. 2 Communication of the Commission to the European Parliament, to the Council, the European Economic and Social Committee and to the Committee of the Regions – "Re-examination of the "Small Business Act" for Europe", COM(2011) 78 final. 3 It should be noted that no recommendations relating to principle 7 were deemed relevant, hence its absence from the analysis carried out under the following point. 4 SBA-2.2: -"Ensure that those that are trying again are placed on an equal footing with newly formed companies, in particular in the context of support schemes."


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Summary of the method of analysing the recommendations

Principles

Recommendations

Identified Relevant Analysed

1. Entrepreneurship 9 9 9

2. Second chance 5 2 1

3. Think Small First 11 5 5

4. Business-friendly administration of SMEs 8 4 4

5. Public procurement 6 6 6

6. Funding 8 4 4

7. Access to the single market 8 0 0

8. Innovation & skills 6 5 5

9. Environment 5 4 4

10. Internationalisation 3 3 3

TOTAL 69 42 41

Finally, the degree of implementation of each of the recommendations deemed relevant was evaluated so that one of the following descriptions could be assigned:

• Implemented: in the light of the information at our disposal, we were able to estimate that the different elements of the recommendation are being implemented in a sufficiently substantial manner.

• Partially implemented: certain elements of the recommendation are being implemented but all of them are not being implemented in a sufficiently substantial manner. We also considered that the recommendation was partially implemented when measures to implement it were in the process of being introduced.

• Not implemented: no elements exist indicating even partial application of the recommendation or implementation is not sufficiently substantial.

You will find a table summarising the implementation of the Commission's recommendations at the end of each section.


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1.2. Inventory of relevant actions

After deciding which recommendations were relevant for the Walloon Region, it was then necessary in a second phase, to identify Walloon actions that are part of the implementation of these ten principles This work was carried out by the SBA Cell set up within the Economic Policy Directorate (DGO6) in consultation with the SBA Steering Committee and in particular using the reporting tools introduced by the SPW (Plan Marshall 2.Vert)'s Cross-Sectional Strategies Cell1. This analysis of the implementation of the SBA's recommendations provides an overall view of support measures for SMEs, including the most recent ones implemented in the context of the initiative support Pact. Many of the actions and mechanisms listed below are also funded in respect of the Plan Marshall 2.Vert. As mentioned previously, it is important to note that, since the implementation of some of the SBA's principles comes within the competences of the Federal State, this overview shows some imbalances in the implementation of the European SBA's 10 principles at Walloon level. These do not necessarily reflect shortcomings but are the result of the division of competencies that exists at Belgian level with regard to policy in support of SMEs.

1 Plan Marshall 2.vert - Annual report 2010, February 2011 Note to the government "Measure IV.1. – Launch an initiative support – Follow-up Pact", May 2011


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Principle 1: Entrepreneurship.

1 Entrepreneurship and youth

1.1 Primary and secondary education

For several years Wallonia has done what is necessary to include entrepreneurship across-the-board within primary and secondary education. In order to help students acquire this skill deemed to be cross-sectional in the Wallonia-Brussels Federation education programs, Walloon teachers' awareness is regularly raised by a team of agents from the Agency for Economic Stimulus. These agents provide a selection of modules intended for students, enabling them to work on the competencies necessary for the development of entrepreneurship which is a wider concept than that of an enterprise spirit since it essentially consists of a willingness to act to create change and innovation, and to create projects.

During the last five academic years no less than 125,000 students have been reached by these actions entitled "entrepreneurship and entrepreneurial projects" and over 100,000 teaching tools have been distributed throughout Wallonia. By mid-2012, the cumulative penetration rate for visits by ASE agents to educational establishments in the Wallonia-Brussels Federation was 91%.

Various teaching tools have been developed and distributed: "Little lessons in enthusiasm and creativity", the cartoon strip "Antoine and Laura create their company", "CréaLoie", "Planet entrepreneurship", "Kid attitude", "50 minutes to become an entrepreneur", ...

The "www.apprendre-a-entreprendre.be" website provides access to digital versions of most of the tools.

1.2 Universities and Colleges of Higher Education

Conscious of the need to raise awareness with regard to entrepreneurship at all levels of education, the ASE provides financial support in particular to programs such as mini-enterprises, offers sessions to raise awareness led by company bosses as well as information sessions concerning support mechanisms for entrepreneurs available within Wallonia's Universities and Colleges of Higher Education.

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In addition, the first pilot block release experiments in higher education started at the beginning of the 2011-2012 academic year in four new masters: production management, site management (with an emphasis on sustainable construction), analytical engineering (for the purpose of biochemistry) and Facility Management and two minor programs in entrepreneurship. Intermediate evaluation of the experiment is currently in progress.

1.3 Teachers

The ASE also organises symposia involving discussion about the relationships between the education world and business. For the last three years it has also offered "Entrepreneurship Workshops" designed for teachers and trainers.

1.4 Bringing the world of teaching and the world of business closer to each other

The Spirit of Entrepreneurship forum regularly brings people together from the world of teaching, of business and intermediation concerning the extended topic of entrepreneurship.

1.5 Raising young people's awareness - Young people and the world of business

"Junior Self-Employed" courses organised by the IFAPME (Walloon Institute for the block-release training of the self-employed and small and medium-sized enterprises) is intended for young people aged between 15 and 20 years. The aim is to enable them to see the life of a self-employed person or an entrepreneur, and to discover the everyday realities of business life. It is also an opportunity to discover trades that can be learned via block-release training.

GOOD PRACTICE:

"What Needs to be Discovered… about the Business world"

In order to raise awareness among future teachers concerning the importance of

developing entrepreneurship in a school context, the ASE, in collaboration with "Planète

Metiers" a.s.b.l. has organised acculturation courses for future teaching graduates. Thus in

2012, 140 students were given the opportunity to review the interactions, existing,

necessary and to be developed, between the world of Teaching and that of Business by

being immersed in the day-to-day experience of one of them.

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2 An environment favourable to entrepreneurship

2.1 Company information portal

In order to facilitate access to information required for entrepreneurship in Wallonia, the Walloon Government has entrusted the ASE with the creation of a portal, a user-friendly index1, offering an overall and simplified view of the services dedicated to enterprise creation and entrepreneurship, from the point of view of the company life-cycle.

This portal supports entrepreneurs on their journey through the different phases of their company's life (creation, finance, development, transfer) providing a real toolbox in order to give concrete expression to the various concepts involved. In particular, this toolbox provides easy access to all the types of support offered by the Region, a variety of test tools, points of contact in Wallonia and even various legal explanations. Physical interaction has not been forgotten thanks to a special partnership between the ASE and the Directorate-General for Economy, Employment and Research (DG06) that has led to the appointment of an information officer, responsible in particular for answering queries sent by Internet users in the context of their use of the portal.

1 http://www.infos-entreprises.be/fr

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2.2 The Walloon Grand Prix for Entrepreneurship (GPWE)

Launched by the Agency for Economic Stimulus (ASE), with the encouragement of the Walloon Minister of the Economy, the GPWE is in its fifth year. The Walloon Government's ambition through this competition is threefold:

• To highlight the support structures for business creation and development.

• To serve as a showcase for exemplary Walloon entrepreneurs.

• To share experiences of success that convey a positive image of Wallonia.

The Grand prix aims to highlight Walloon companies whether they are "Starters", "Growing" or "Recovering", categories to which two cross-sectional themes should be added: the "Female Entrepreneur Prize" and the "Sustainable Development Prize".

In the context of this competition, it is not just financial success that is taken into account but the potential shown by the entrepreneurs and their companies, their thirst for entrepreneurship, their creativity and their originality…

In 2012, 147 applications were received.

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Good practice:

In 2011, in partnership with the Union of the Middle Classes and the Walloon Enterprise Union, the Minister of the Economy initiated the creation of an SME Parliament. The aim of this annual event is to consult SMEs interactively and directly concerning avenues of action that need to be followed in the context of strengthening the implementation of the "Small Business Act" in Wallonia.

As during the previous year, this event was held in November 2012 in the context of European SME week in the presence of the European SME Envoy, Daniel Calleja Crespo, and brought together over 200 representatives of SMEs.

The SME Parliament works in two phases: committee work with a limited number of SMEs and a plenary session where all the SMEs present are invited to express their opinion on projects that need to be undertaken in the context of the Walloon SBA.

Based on the votes of the SMEs present, the Walloon SME Envoy, in collaboration with the Walloon Economic and Social Council (CESW), as well as the various Public Interest Bodies, defined the priority measures in response to the demands expressed by the SMEs. For each measure, a pilot body is appointed. Through a Steering Committee involving all the public actors concerned, the SME Envoy endeavours to bring all the actors together regularly in order to review the progress of each action.

Prior to each new meeting of the SME Parliament, the organizers conduct a review of the state of progress of the measures voted for at previous meetings.

It is important to note that certain advances submitted by the SME Parliament as well as by the European Commission do not come within regional competences and are therefore outside the scope of the Walloon SBA. Particular attention is however paid to them in the context of the collaboration process introduced at federal level under the auspices of the national SME Envoy and in the context of the preparation of the SBA factsheet prepared by the Enterprise GD with the assistance of national and regional experts.

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3 Support for business creation

3.1 The Airbag plan

The Walloon public employment and training service (FOREM) gives anyone wanting to start a business an opportunity to benefit from "Airbag" funds. Specifically, this mechanism can be used to obtain a maximum of 12,500 euros over a period of two years, paid in four instalments.

Through this incentive, the Walloon Government aims to encourage and support professional transition to the status of mainly self-employed.

The objective of the measure is to encourage entrepreneurship in the Walloon Region and to increase the number of jobs that exist through self-creation, to release jobs formerly occupied and in the long-term, to create additional jobs when the business has developed.

Three categories of beneficiaries are targeted: people that have been self-employed on a supplemental basis for over three years, people starting out for the first time with self-employment as their main occupation and people starting out for the second time with self-employment as their main occupation with a minimum of two years and a maximum of five years between the two businesses.

3.2 Preparation grant

Since 2001, the Walloon Region has offered "Preparation grants" .

This mechanism is intended for anyone in Wallonia wishing to create a company, a shop or a business on an independent basis and who has an original and realistic idea or project.

The grant of €12,500 can be used to finance costs related to analysis of the project's feasibility and to setting it up (set-up study, consultancy, intellectual property, documentation, equipment required for setting up the project, production of a detailed 3-year business plan, etc.).

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Based on the premise that business creation plans set within a support structure have a statistically greater than average success rate in the first three years, the ASE offers project initiators support via an approved Support Officer throughout the phase covered by the Grant.

3.3 Self-creation of self-employment

Support Structures for the Self-Creation of Self-Employment (SAACE) offer specialist support for job-seekers who want to become self-employed or start their own business.

These services approved by Wallonia's Public Service offer:

• Free support and a maximum of 24 months monitoring.

• The option of testing a project before finally launching it onto the market.

• Hosting of the businesses created by the candidate, the time to check the economic

viability of a project.

Self-employed status is often of concern to job-seekers because they risk losing their social protection if their plans do not succeed.

Through the support of this service:

• Either the project demonstrates its viability and candidates can safely adopt self-

employment status.

• Or the test is not conclusive and the person concerned retains all their social rights.

The service then offers them further direction to one or more training or integration specialists.

41% of the projects supported in 2011 led to the self-creation of self-employment.

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3.4 Supporting the development of social employment companies

158 social employment companies have now been approved by, and are supported with grants from, the Walloon Region. They have helped provide employment for 3,887 workers, the majority of whom were vulnerable workers with few basic qualifications and, often, job-seekers of long standing. As such, they constitute an essential focus for the development of the Walloon Region's social economy and offer sustainable and quality job opportunities to workers in vulnerable situations.

An annual budget of almost 11 million euros has been dedicated to the development of social employment companies.

3.5 Business creation training vouchers

Training vouchers for business creation allow project initiators to benefit from:

• Customized support in preparing their business plans.

• Suitable training given by training operators approved by the Walloon Region.

Project initiators pay 20% that is €2.5, of the purchase value of business creation training vouchers (€12.5), the balance being covered by the Region.

The entrepreneur pack

Through this pack, which includes several Plan

Marshall 2.Vert tools, the Walloon Region

encourages Wallonia's people to become

entrepreneurs.

The launch of this product was the subject of a major communication campaign throughout the Region, targeted at women in particular.

Specifically, it provides the opportunity to apply to SOCAMUT for financial support (combination product: a bank guarantee and an additional loan) or to SOWACCESS to restart or transfer an SME. (Both these measures are explained under points 6.1 and 4.3 of this document).

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4 Business transfer

4.1 Tax

In Wallonia, inheritance and donation taxes for the transfer of businesses are, under certain conditions, reduced to 0%.

4.2 Systems for bringing companies that can be transferred and potential buyers together

In order to bring buyers and sellers together, the Walloon Company for funding and guaranteeing SMEs (SOWALFIN) created a special subsidiary in 2006 dedicated to the transfer of SMEs and Very Small Enterprises: the Walloon Company for Business Acquisitions and Transfers (SOWACCESS).

In this respect, it has set up a platform1 that currently covers Belgium, the Netherlands and France in order to put potential buyers and sellers in touch with each other.

Since the creation of its platform, SOWACCESS has dealt with 600 potential buyers, 1000 sellers and has facilitated the transfer of 56 companies and preserved 420 jobs.

The development of a "Retail" platform (retail sector, including artisans, catering, leisure,…) is planned for the first half of 2013.

1 This platform is recognized as good practice in the Commission's new guide, see p. 30: http://ec.europa.eu/enterprise/policies/sme/regional-sme-policies/documents/no.3_transfer_of_business_en.pdf

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Good practice:

In order to improve business transfers at European level, Wallonia, through SOWACCESS,

has combined with two French (CRA) and Dutch (MKbase) partners to create an association:

TRANSEO.

Transeo's task is to exchange good practice with regard to business transfers between private

professionals, the public and academics in Europe, but also to raise awareness concerning the

issues raised by business transfers in Europe and to work on specific solutions.

Currently Transéo has 41 members (public, private and academic) from 15 countries.

http://www.transeo-association.eu/


23

4.3 Assistance with transfers

SOWACCESS, apart from its relationship mission, raises entrepreneurs' awareness concerning the need to be well prepared for the acquisition and sale of a company and the need for professional support.

By way of an example, it has placed "Test repreneur" (Buyer test) and "Diagnostic transmission" (Transfer diagnostics) on-line which encourage prospective sellers and buyers to "ask themselves the right questions" before initiating a transfer procedure.

It also provides "Buyers' clubs" that can be used by prospective buyers to mature their buyout plans as well as "Buyers' grants" to fund pre or post buyout consultancy missions.

The Walloon mechanism for supporting business transfers is also based around action by the ASE and transfer go-betweens (ART).

Actions carried out by the ARTs are developed in consultation with SOWACCESS with a view to the complete consistency of the mechanism.

The work of these transfer go-betweens involves the following:

• To develop the mind-set of the selling owners.

• To reduce the prejudices they may have concerning the practical aspects of selling their company (technical difficulties, size of the task, cost of the operation, etc.).

• To raise awareness and increase the number of potential buyers in Wallonia, takeover being an alternative to creation.

• To strengthen the skills of potential buyers with regard to buying out companies.

• To facilitate the professionalism of the operators and advisers involved in the transfer process.

To this end, on the basis of a method constructed with ASE and SOWACCESS, the ARTs have developed a series of actions in three different forms:

• Conferences to raise awareness among sellers, prescribers and buyers concerning the transfer of a business.

• Workshops designed to prepare the participants for the transfer of a business.

• Personal advisors in the context of a sale or buyout with a value of less than €500,000.

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5 Openness to female and immigrant entrepreneurs

5.1 Female entrepreneurs

In the context of raising awareness to Entrepreneurship and the promotion of entrepreneurs, the ASE encourages the promotion of equality in all its forms.

Consequently, it supports female entrepreneurship via initiatives developed by Walloon operators like the UCM1 for example, and its "Diane network".

This network, supported by the Walloon Region, has the task of promoting the growth of female entrepreneurship. In this context, this network offers various services to its members:

• Support for business creation.

• Access to training and workshops designed to build entrepreneurial skills.

• The option of benefitting from support and advice from an experienced woman

boss...

It should also be noted that this network coordinates the "Belgian network of European ambassadors for female entrepreneurship" which is part of the "female entrepreneurship ambassadors’ European network" and participates in the "Female entrepreneurs Mentors Network". These two initiatives are also supported by the European Commission in the context of the implementation of the Small Business Act for Europe. In this context, this network of ambassadors for female entrepreneurship has in particular conducted a road show within higher education.

In addition, since 2010 the ASE has also introduced a "woman entrepreneur prize" at the Walloon Entrepreneurship Grand Prix.

In addition, in order to boost female entrepreneurship, the Walloon Government has agreed that additional resources should be provided.

The measure consists of permitting SOWALFIN and/or SOCAMUT to facilitate access for women to funding through existing mechanisms (automatic combination product, counter-guarantee through mutual guarantee companies, guaranteeing bank loans and the granting of subordinated loans). In 2011 and 2012, over 270 projects were supported through this measure. In order to continue it, the Walloon Government released 400,000 EUR in 2012 to be used to cover risks linked to calls on bank guarantees.

1 Union of middle classes (representative organization for SMEs and the self-employed): http://www.ucm.be

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5.2 Immigrant entrepreneurs

In order to enrich the Walloon entrepreneurial culture with other cultures and to promote an inter-cultural entrepreneurial world, the UCM in partnership with the European Social Fund introduced a mechanism to support entrepreneurs of diversity in order to help them materialize and succeed with their business projects in Wallonia.

The project called "UCM Propulse" raises the awareness of people of foreign origin to business creation and helps them integrate into economic and social life. It also identifies what prevents them from accessing entrepreneurship and introduces specific and professional support.

6 In conclusion

Following analysis of the implementation of this first area of focus of the SBA, it has been possible to conclude that the Walloon Region, conscious of its entrepreneurial deficit, has for several years deployed a wide range of measures in order to compensate for this lack of "entrepreneurial spirit".

The measures introduced in Wallonia for this priority area of focus for the SBA, now widely exceed the expectations expressed by the European commission in the SBA

It is thus possible to conclude that almost all the European Commission's recommendations have been implemented at Walloon level.

Two recommendations have still only been partially dealt with, because they do not meet the criteria of being systematic.

In fact, just as we cannot conclude that awareness of entrepreneurship is totally reflected in teacher training, it is impossible for us to affirm that cooperation between the world of business and the world of training is systematic.

Participation in these training sessions for teachers as well as cooperation with the world of business when drafting programs still currently remain voluntary.

In the light of the division of competences in Belgium, it is not possible for the Walloon Region to impose this because competence in the area of teaching is exclusively at community level.

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Principle 1: Entrepreneurship

Recommendation

number Details of the SBA recommendation Implemented

Partially

implemented

Not

implemented

1.1 To stimulate a spirit of innovation and enterprise among young people by making entrepreneurship a key

element in school programs, in particular in general secondary education, and to ensure that this emphasis is

validly taken into account in the teaching materials.

x

1.2 To ensure that the importance of entrepreneurship is correctly reflected in teacher training. x

1.3 To strengthen cooperation with the world of business with a view to defining systematic strategies for

entrepreneurship training at all levels.

x

1.4 To ensure that taxation (and in particular gift taxes, taxation of dividends and capital taxes) does not needlessly

hinder the transfer of businesses.

x

1.5 To introduce systems to put companies that can be sold in touch with potential buyers. x

1.6 To propose tutoring and assistance for the transfer of businesses. x

1.7 To propose tutoring and assistance for female entrepreneurs. x

1.8 To propose tutoring and assistance to immigrants who want to become entrepreneurs. x

1.9 To develop, in the case of transferable businesses, user-friendly databases and markets benefiting from wide

support, as well as supplying training and support to increase the number of successful business transfers , in

particular through communication campaigns designed to raise awareness among the interested parties to the

need to prepare such transactions in advance.

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Principle 2: Second chance

1 A positive attitude in society with regard to re-entrepreneurs

Although there is no widespread communication campaign to raise economic actors' awareness of the need to adopt a positive attitude to re-entrepreneurs, Wallonia thinks that it is important to be able to support them financially.

To this end, SOWALFIN communicates with the re-entrepreneur public concerning the financial products available to them in a targeted manner, focusing this communication mainly on the automatic combination product and the mutual guarantee companies' counter-guarantee offered by its subsidiary SOCAMUT. In the context of the plan Marshall 2.vert, 110 guarantees (combination product)1 or counter-guarantees are reserved to support second chance entrepreneurship.

In 2012, the Walloon Government granted additional resources for the measure designed to introduce a true second chance culture. To this end, an amount of 200,000 EUR has been released to cover the risks of calls on the guarantees/counter-guarantees by the banks/mutual guarantors.

On the other hand, the UCM with the support of the Federal Investment Fund, offers individual coaching free of charge to failed entrepreneurs wishing to start again.

2 A second chance supported like the first

It has not been possible to evaluate accurately, to what extent existing support schemes treat entrepreneurs and re-entrepreneurs equally. However, a careful examination of the mechanisms available to support business creation and development, as well as other mechanisms such as public procurement may make it possible to evaluate the degree of implementation of this recommendation.

1 SOCAMUT products, launched in 2011, intended to support an automatic finance product specifically intended for micro-enterprises, the self-employed, artisans and professionals in partnership with banks active in Wallonia. This product makes it possible to grant an automatic guarantee covering 75% of a main bank loan of a maximum of 25,000 EUR provided by a partner private bank, with the possibility of additional co-funding (SOCAMUT subordinated loan) of a maximum of 50% of the main bank loan.

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3 Promoting success

In order to avoid entrepreneurs needing a second chance, Wallonia set up the "Walloon centre for enterprises in difficulty" (CEd-W) in January 2013.

When the situation proves necessary, the CEd-W aims to get the entrepreneur back on track and this in view of the appropriate degree of urgency, and to support companies in difficult situations so that company bosses can make the right choices and limit the negative impact on any third-parties.

This mission is entrusted to the ASE which is supported by official partners (Belgium's French and German speaking bars – OBFG, Professional Institute of Approved Chartered Accountants and Tax Specialists – IPCF, Institute of Chartered Accountants and Tax Consultants – IEC, Walloon Credit Mediation Service – Concileo) to respond to emergency situations in the context of its "crisis management" mission, a mission representing consistent 1st level intervention in Walloon territory.

In these circumstances, the CEd-W is equipped with a central telephone line for the whole of Wallonia. A free phone number has been set up to deal with queries from all companies in difficulty in Wallonia and to direct them to an appropriate field Councillor, at the same time ensuring geographical proximity between the CEd-W and companies in difficulty.

These five field operators, approved as part of the mechanism following a call for candidates, rely on the expertise of official partners in the legal, tax, accounting and company law fields to provide companies in financial difficulty that call on the services of the CEd-W with adequate assistance.

Finally, the mission entrusted to the ASE by the Walloon Government seeks to define consistent overall communication covering the whole of Walloon territory with a view to promoting the mechanism and envisaging raising companies' awareness as much as possible to the prevention of bankruptcies.

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4 In conclusion

Following analysis of the implementation of this second area of focus of the SBA, it is possible to conclude that, although there is a range of tools to promote a second chance at Walloon level, all the Commissions' recommendations have not totally been complied with.

In fact, as far as the promotion of a "positive attitude on society's part with regard to entrepreneurs who want to make a new start" is concerned, it must be noted that no large-scale communication campaign has been carried out yet in Wallonia to raise economic actors' awareness to the need to adopt a positive stance towards re-entrepreneurs, as suggested in the recommendation.

Finally, a more thorough examination will be necessary to provide a true evaluation as to whether entrepreneurs who try again are placed on an equal footing with new entrepreneurs, although the tools specify this on paper.


Recomm

endation

number

Details of the SBA recommendation Implemented Partially

implemented

Not

implemented

2.1 To encourage society to have a

positive attitude towards

entrepreneurs that want to make a

new start, for example via public

information campaigns.

x

2.2 To ensure that those who try again are

on an equal footing with newly formed

companies, in particular in the context

of support schemes.

To be evaluated in 2013

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Principle 3: Think Small First

Belgium being a Federal State, many measures permitting the implementation of this principal do not depend on the regional level. However, through various initiatives, the Region undertakes to ensure that future regulations comply with the "think small first" principle and to improve its regulatory environment.

1 Compliance of future regulations with the "think small first" principle

Since 2007, Wallonia has applied the Kafka test1 which aims to evaluate new regulations in advance with the goal of achieving more economical legislation in terms of administrative burdens.

There exists in Wallonia, therefore, firstly a systematic prior evaluation process (carried out by the author of the proposal using a simplified methodology) and secondly, an ad-hoc subsequent evaluation process (carried out by an external actor using a rigorous methodology2) designed to evaluate the impact of Walloon legislation in terms of administrative burdens.

The Kafka test does not distinguish the specific impact on SMEs from the impact on all companies however. In addition, the application of an evaluation using the SCM (Standard Cost Model) model is not carried out in advance.

However, in the context of the social consultation process, the Walloon Region's Economic and Social Council (CESW) is generally consulted by the Government prior to the presentation of legislation to the Walloon Parliament. This Council includes representative of the union and bosses' organizations including the UCM and UWE (organizations representing the self-employed and SMEs in Wallonia). In the context of this process, Walloon SME organizations are consulted at least eight weeks in advance of legislative proposals being presented. The CESW ensures that the results of the policy implemented are achieved, imposing a minimum of costs and burdens on companies.

1 The purpose of this measurement tool is to check in advance, whether new rules or policy measures cause needless formalities. It describes the administrative burden for the different target groups and directs the standards author towards the most appropriate solution in order to achieve a regulation that is as economical as possible in terms of administrative burdens. 2 Standard Cost Model method (SCM)

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2 Improving the regulatory environment

Wallonia has tackled problems raised by the regulatory environment head on. In fact, the first of the six objectives in the "Together let's make things simple" Plan is called "Simplifying and improving regulation" . In this first objective there are three cross-sectional measures (MT) and ten support actions (AS).

Good practice:

"Together let's make things simple" plan

Administrative simplification is strongly desired by users who often have the impression of being buried under administrative burdens (companies, citizens, local authorities as well as the non-profit sector). They are expressed by the slowness, frequency or cost of procedures.

In order to resolve this problem, the "Together let's make things simple 2010-2014 plan" was launched in February 2010 in order to reduce administrative burdens by 25 % for 2012 in line with European objectives.

The plan structures projects according to six major objectives, covering the different areas of implementation of administrative simplification:

1. Simplifying and improving regulation. 2. Simplifying and harmonizing processes. 3. Dematerializing processes. 4. Managing administrative documents electronically. 5. Simplifying and dematerializing the collection and sharing of data. 6. Improving information and communication with the target public.

Implementation will be evaluated in 2012.

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In addition, following the evaluations of the weight of administrative burdens conducted previously, measures designed to reduce the administrative burden are in the process of being implemented and should permit a reduction of the associated load ranging from 10 to 48% depending on the mechanisms concerned. In this way, Walloon and Wallonia-Brussels Federation Ministers decided in 2012 to remove no less than 233 obsolete texts from their body of legislation and regulations, in areas as diverse as culture, teaching, scientific research, SME's, housing, hunting and water. (MT 2).

Reduction of the standards corpus

Wallonia FWB Total

Decrees 3 1 4

Orders 21 107 128

Ministerial orders 1 / 1

Circulars / 100 100

Total 25 208 233

Taking the repeal of texts already agreed on in 2008 and 2009 into account, this brings the number of texts repealed to a total of 430 (233 + 197).

In September 2012, 86% of the projects and tools belonging to this priority area of focus in the Plan started show signs of a slight degree of delay (8%). The completion rate for this first objective "Simplifying and improving regulation" reached 30% at the mid-term.1

1 Together let's make things simple Plan, "Mid-term evaluation", http://easi.wallonie.be/servlet/Repository/Evaluation_%C3%A0_mi_parcours_du_Plan_Ensemble_Simplifions___Rapport_final_version_finale.pdf?IDR=11995

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3 In conclusion

Analysis of this third area of focus for the SBA underlines a whole series of advances at Regional level, the Region having undertaken to reduce its administrative burden by 25% and which consults all the actors concerned on a systematic basis in the context of social consultation at the CESW before each new legislative proposal.

However, in the absence of an "SME test" as meant by the Commission, we cannot be completely sure that each new regional standard imposes a minimum of cost and administrative burdens on SMEs and that specific measures are always taken with regard to Very Small Enterprises.

The recommendations made by the European Commission are not therefore being followed in full as yet in Wallonia.

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Recommendation


Partially

implemented

Not

implemented

3.1 To systematically evaluate the impact of legislation on SMEs using an "SME test", while at the same time bearing in

mind the difference of size between companies, if need be. X

3.2 To consult the interested parties, including SME organizations, at least eight weeks before presenting a legislative

or administrative proposal likely to have an impact on companies.

X

3.3 To adopt, when it has not already been done, objectives with a degree of ambition comparable to that of the

commitment to reduce administrative burdens by 25% in the EU by 2012, and to implement these objectives. X

3.4 To ensure that the results of the policy implemented are achieved by imposing a minimum of costs and burdens on

companies, and in particular by recourse to a judicious mix of instruments such as mutual recognition, self-

regulation or co-regulation to obtain the desired results.

X

3.5 To introduce specific measures with regard to small and very small enterprises, such as exemptions, transition and

exemption periods, in particular concerning supplying information and making declarations, and to implement

other strategies suitable for these companies when it seems justified (And) to apply the "Think Small First" principle

not just to legislation, but also to administrative procedures relating to SMEs (for example by introducing a single

interlocutor and reducing declaration obligations).

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Principle 4: Business-friendly administration of SMEs

1 Shortening of time periods

1.1 Shortening of the time required to obtain licences and permits

In Belgium, many licences and permits must still be obtained at federal level. However, it is the Region that issues the "single permit" covering town planning and environmental matters.

The theoretical period of time required for a company to receive a permit, from the time it applies to the municipality and the decision is notified, varies between 140 calendar days (for class 1 permits) and 90 calendar days (for class 2 permits).1

However, it should be noted that firstly, the European recommendation is particularly ambitious and contradictory in terms of its requirements with regard to the environment and secondly, in the context of the "Together let's make things simple Plan", simplification and dematerialization of the process is in progress which should further shorten the time period involved.2

1.2 Shortening of payment periods

Even if progress remains to be made at the level of payment periods for the Municipalities and Provinces, the situation in Wallonia is improving. In fact, the Region currently takes 31 days on average to pay invoices not exceeding €55,000, as against 42.5 days in 2011. In the case of invoices where amounts exceed €55,000, the Region has shortened the period from 113 days in 2010, to 79 days in 2011 and to 61 days in 2012. In addition, a consultant has been given the task of suggesting solutions with regard to improving payment periods. A European directive that will be transposed in 2013, requires a maximum period of 30 days.

2 Reducing requests for information

2.1 Public procurement

In the context of public procurement, certain elements relating to applicants' personal circumstances, financial situation and experience are verified by the Contracting authority itself via the electronic Digiflow application which it uses to consult federal databases where authentic information is managed. In the past, this verification procedure was the candidate tenderers' responsibility who were responsible for providing the contracting authorities with the supporting evidence referred to above.

1 These "establishments" (activities and installations) are divided into three classes according to their potential to cause pollution: class 1 for activities that have the greatest impact on health and the environment, class 3 for the least polluting activities, and class 2 for intermediate activities. An environmental permit is required for class 1 and 2 installations, while class 3 installations only require a declaration. 2 Project S.02 "Simplification and dematerialization of single and environmental permits", planned finalization for the end of 2012. This project has been included in the industry action plan.

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2.2 The principle of trust

In order to lighten the administrative load for users, therefore for entrepreneurs, a methodology of implementation on the basis of the principle of trust was accepted by the Walloon Government in July 2011.

One year later, 31 pilot schemes have been validated by the Walloon and Wallonia-Brussels Federation (FWB) Governments with in certain cases, the removal of 50% of the documentary evidence initially requested.

These mechanisms affect:

• A variety of sectors (investment support, energy, waste collection and management, heritage, local powers, persons with disabilities...).

• Miscellaneous trades and processes (allocate, check...).

• Different target audiences (companies, SMEs, associations, non-profit sector, citizens, ...).

The application of the principle of trust corresponds to a profound change in terms of administrative management. A priori inspection gives place to a rationale of support, in the final result to achieve better control since the focus is on what is relevant and which is studied more closely.

We can speak of a real revolution in the relationship between administrations/public interest bodies and users, a revolution made possible thanks to the dynamism and involvement of civil servants wanting to take their users' reality into account and fundamentally simplify their lives.

Applying the principle of trust means:

• either to remove the need for users systematically to supply documentary evidence and/or certificates and a priori inspection.

• or to replace this documentary evidence with an honour declaration and the possibility of a subsequent inspection.

• or, finally, to use internal sources to obtain the data sought (use of authentic sources such as tax data, ONSS, BCSS...).

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2.3 Carrefour Enterprise Bank (Banque Carrefour des entreprises - BCE) - Data Exchanges

Access by the public authorities to authentic data or reference data is an important tool to reduce administrative burdens since it is accompanied for users, specifically with the removal of the obligation to supply this data to the Administration themselves.

Wallonia has pursued initiatives in the area for several years but it is a long road because numerous rules, in particular concerning the protection of personal data, must be respected in order to avoid a "Big Brother" administration.

The need to create a common Carrefour Bank for Wallonia and for the Wallonia-Brussels Federation is twofold:

• To allow the authorities to cease collecting data already in their possession, already collected by other administrations or already made accessible through existing databanks.

• To arrange things so that users are only asked for data not available elsewhere.

This platform (currently being studied at Easi-Wall and the introduction of which is planned for 2014) will:

• Stimulate, organize, support and facilitate data exchanges between the different regional, municipal and federal administrations.

• Participate in establishing new sources of authentic data in Wallonia and in the Wallonia-Brussels Federation.

• Be a cross-sectional entry point orchestrating access services to different authentic databases, both federal and federated.

• Ensure reliable transport and filter, according to the access authorizations obtained, the distribution of data.

• Ensure compliance with the law on the protection of privacy and computer security rules.

All the information that will be collected through the Carrefour Bank should permit a cumulative saving for administrations/users of over €2,000,000 per year due to automatic access by the administration to so-called "authentic" data and to the fact of no longer asking for it from the user.

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3 The introduction of a point of contact

Wallonia has an Ombudsman1 whose mission it is, for the competences that depend on the regional authorities, to help people (including companies) that encounter difficulties in their relationships with the Walloon regional authorities. In addition to a role of mediation, the ombudsman presents an annual report to the Walloon Parliament where he highlights the problems encountered by citizens and companies, and makes recommendations2 for improving the quality of Walloon public services. This body therefore constitutes a de facto point of contact through which SMEs can highlight the procedures or regulations they deem to be disproportionate. They can then be highlighted to the competent authorities through the report to the Walloon Parliament.

In addition, SMEs can also make their comments concerning the regulations they deem to be disproportionate to the Kafka point of contact introduced at national level. In fact, this also allows comments that concern the regional authorities to be collected, which are then sent to Easi-Wall for analysis.

4 "Services" and a "one stop shop" directive

The Services Directive was transposed3 in Wallonia in accordance with community provisions during 2010; the work to change the legislation undertaken in 2009 has continued and the last adaptations to the texts have been made and published in the Belgian Monitor.

Specifically, these are six texts that were published in the Monitor, that is: two vertical Walloon Government Orders (AGW) dated 24 March 2010 (Monitor of 06/04/2010) designed to bring various regulations into compliance with the Directive; four sectoral decrees and AGWs concerning travel agencies, the Walloon Regional Development, Town Planning, Heritage and Energy Code (CWATUPE) and energy.

In addition, existing approved enterprise one-stop-shops have been designated to fulfil the role of one-stop-shops with the task of supplying companies with the information required to carry out an economic activity.

1 http://mediateur.wallonie.be 2 The power to make recommendations is a prerogative of the ombudsman, assigned to him by the decree of 22 December 1994. 3 The Commission sent a letter of "Violation of the provisions of the services directive 2006/123/EC and the Professional qualifications directive" on 17 January 2012 via EU Pilot, in order to ask Wallonia questions concerning the "territorial scope of authorizations", as well as asking for clarification on the subject of foreign travel agents wishing to provide a temporary service on our Walloon territory. The deadline for a response was set at 28 March 2013.

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In addition, since 2012 Wallonia has had an information portal (see above) (http://www.infos-entreprises.be/fr) to supply information that is useful and required for creating an SME in the Walloon Region.

5 In conclusion

It is possible to conclude that the implementation in Wallonia of the Commission's recommendations for the fourth of the SBA's main areas of focus is almost complete.

In fact, the Region:

• Refrains from asking SMEs for information already held by administrative departments.

• Has introduced a contact point to which interested parties can highlight procedures or regulations they deem to be disproportionate via its Ombudsman.

• Has implemented the "Services" Directive, including the introduction of one-stop-shops.

The only recommendation that has not been completely met concerns the time periods required to obtain licences and permits. In fact, theoretical time periods in Wallonia currently vary between 90 and 140 calendar days.

It should be noted that the goal of reducing the time periods linked to these procedures to three months should be achieved by the end of 2013.

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4.1 To reduce to three months1, by the end of 2013, the time required to obtain

licences and permits (including environmental permits) to start and exercise a

company's specific activity.

x

4.2 To refrain from asking SMEs for information already in the possession of

government departments, except when this information needs to be updated. x

4.3 To introduce a point of contact to which interested parties can highlight the

regulations or procedures they deem to be disproportionate and/or which

needlessly hinder the activities of SMEs.

x

4.4 To ensure the full and timely implementation of the "Services" directive, including

the introduction of one-stop-shops from which companies can obtain all the

relevant information and accomplish electronically all the procedures and

formalities required.

x

1 The SBA recommendation is one month. However, the Competitiveness Council's conclusions of 31 May regarding this communication moderate this ambition and set a target of three months.

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Principle 5: Facilitating SMEs' participation in public procurement

1 Public procurement

1.1 Dematerialisation and electronic portal

Wallonia began its policy of dematerialisation several years ago, in a progressive manner.

This dematerialization has a threefold objective:

• To simply administrative procedures and practices, for both awarders and bidders' services.

• To ensure complete traceability from drafting of the specification to designation of the successful bidder.

• To analyse all contracts in order to guide Wallonia's overall public procurement policy (for example with regard to sustainable development, environmental, social and ethical clauses, etc.).

The opening in November 2007 of an on-line "Public procurement" portal was quickly followed by the computerization of the publication of contract notices and the on-line availability of specifications1.

In particular, this Portal can be used by SMEs for one click access to contract notices and certain related documents.

It constitutes a point of access for the consultation of contracts published in the Walloon Region and in the French Community.

In order to encourage the use of this tool, the free dissemination of contract documents relating to public contracts placed by the Walloon Public Service as paper versions was discontinued at the end of 20102.

Ultimately, companies will be able to file their tenders virtually and the officers who place contracts via a negotiated procedure without advertising (PNSP) will be able to negotiate with several companies in the "e-bottin" via an interface incorporated into the "public procurement" portal.

Dematerialization will be used to optimize the process of inserting environmental, social and ethical clauses.

1 http://marchespublics.wallonie.be 2 Administrative circular from the DGT1 (Wallonia Public Service) dated 17 December 2010.

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1.2 Division of public contracts into lots

Dividing public contracts into lots enables contracting authorities to improve access to certain large public contracts to SMEs and Very Small Enterprises.

However, the companies present during the 2011 SME Parliament highlighted the risk that division leads to problems of coordination between the different lots, even subsequently for the same contract.

A deeper analysis of the data resulting from the dematerialization process will permit analysis as to whether division of contracts should be encouraged in Wallonia or not.

1.3 Requirements with regard to qualitative selection (technical, economic and financial capacity).

In its circular of 10 May 20071, the Walloon Government took several specific measures designed to avoid imposing disproportionate requirements with regard to qualitative selection criteria. This circular now helps facilitate access by young companies to public procurement.

Concerning qualitative selection in public procurement for work in excess of €50,000 ex VAT, approval is compulsory for the company (approval renewable every five years). SMEs' attention must be drawn to the option of obtaining approval more easily by making applications for provisional approval.

Approval, at federal level, is granted by a committee that meets once a month at the SPF Economie. The Walloon Region is represented there by the Public Procurement Department which is able to relay problems encountered in this area by Walloon companies and the Walloon contracting authorities.

These provisions enable companies with limited financial, economic and technical references, to take part in public procurement via the recognition of other simple and accessible references such as a bank declaration, the use of a bond, diplomas, equipment available, ...

1 M.B., 28 Nov. 2007.

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1.4 Dialogue between SMEs and the contracting authorities

In Wallonia, there are several tools specially designed to facilitate SMEs' understanding of the procedures relating to public procurement.

• A guide specially designed for SMEs, relating to the procedures to use when taking part in public procurement available on-line (last updated: August 20121).

• The opportunity for training for companies concerning the problems of public procurement (service offered by economic facilitation operators, coordinated by the ASE).

• A free newsletter enabling them to obtain the latest information concerning what's new with regard to public procurement.

However, a genuine dialogue can only have its effect in an optimum manner through a better understanding of the business world and its difficulties by the contracting authorities and a better understanding by companies of the requirements of the regulations relating to public procurement, and in particular the formal requirements, that the contracting authorities cannot avoid.

2 State support

In the different support programs for companies, special attention is paid to SMEs, in particular through higher intervention rates. In addition, certain support schemes are reserved for them in areas that are particularly sensitive for them.

Without being exhaustive, we can cite investment support2 specifically designed for SMEs3, support for research4 designed specifically for SMEs5 or support for consultancy reserved for SMEs6,, innovation grants, support for innovations in terms of organisation and/or processes7, INVESTS intervention on behalf of SMEs and guarantee mechanisms for micro-loans (SOCAMUT).

In addition, the options under the European exemption regulations or minimum regulations are widely used.

1 http://marchespublics.cfwb.be/fr/informations-generales/pratiques-de-marche/guides-pratiques/abc-des-marches-publics.html 2 http://www.wallonie.be/fr/formulaire/detail/1952 3 Decree of 11 March 2004 regarding regional incentives for SMEs. 4 http://recherche-technologie.wallonie.be/fr/menu/profils/entreprise/pour-les-pme/index.html 5 Decree of 03 July 2008 regarding support for research, and technology vouchers co-financed by the ERDF. 6 Award for consultancy services - Decree of 11 March 2004 regarding regional incentives for SMEs. 7 http://www.wallonie.be/fr/formulaire/detail/3383

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3 In conclusion

Implementation of the European Commission's recommendations concerning public procurement is on the right track. In fact, the process of reforming and dematerializing Walloon public procurement has brought clarity and accessibility for SMEs.

However, the policy of dividing up contracts, the implementation of the "European Code of good practice facilitating access by SMEs to public procurement", as well as mutual dialogue between SMEs and the contracting authorities must be developed still further in order to be able to consider them to be fully implemented at Walloon level.

Concerning the recommendation regarding the use of State support to adapt it better for SMEs, we can confirm that it has been fully implemented at Walloon level, as illustrated in particular by the mechanisms in support of innovation (Principle 8) and exports (Principle 10): cf the corresponding sections below.

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Principle 5: Facilitating SMEs' participation in public procurement

Recommenda

tion number Details of the SBA recommendation Implemented

Partially

implemented

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5.1 To introduce electronic portals to broaden access to information concerning

public contracts lower than EU thresholds. x

5.2 To encourage contracting authorities to divide contracts into lots when it is

appropriate, and to increase the visibility of sub-contracting opportunities. x

5.3 To remind the contracting authorities of their obligation to avoid imposing

disproportionate requirements with regard to qualifications and financial

capacity.

x

5.4 To encourage constructive dialogue and mutual understanding between SMEs

and large contracting authorities, through activities such as information,

training, monitoring and the exchange of good practices.

x

5.5 To refocus State aid policies to make them better suited to the needs of SMEs, in

particular by developing more targeted measures. x

5.6 To implement the "European code of good practices facilitating SMEs access to

public procurement" fully. x

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Principle 6: Facilitating SMEs' access to finance, in particular venture capital

and micro-loans

1 Improving access to finance

1.1 Introduction of programs to address the lack of finance

The Region, through the Walloon Company for funding and guaranteeing SMEs (SOWALFIN), offers a wide range of interventions with regard to funding.

• Provision of guarantees for loans granted to SMEs by the banks.

• Co-financing via providing SMEs with subordinated loans, in addition to bank loans.

• Capital funding of SMEs through 9 "Invests wallons"1 and their specialist subsidiaries (i.e. spin-off/spin-out/innovative company subsidiaries).

• Support for innovative SMEs in the form of subordinated loans at attractive rates via Novallia (see section on innovation).

• Support for export activities and internationalisation through finance tools, guarantees and even subsidies via SOFINEX2

In the case of micro-enterprises in particular, but also targeted categories of entrepreneurs such as women, re-entrepreneurs and the self-employed, SOWALFIN, through SOCAMUT, facilitates access to small loans via different tools:

• An automatic combination product launched in the 2nd half of 2011 combining a guarantee and loan covering funding needs up to a maximum of €37,500 (see box).

• An automatic counter-guarantee for guarantees (up to 75%) granted in respect of bank loans by private mutual guarantee companies. This counter-guarantee is for 50% for bank loans of over €75,000 and 75% for bank loans less than or equal to €75,000. The guarantee provided by private mutual guarantee companies, if granted in respect

1 The 9 Invests Wallons operate by making financial contributions, favouring capital techniques of financing: acquisition of minority shareholdings with a buyback commitment; loans in the form of convertible bonds; subordinated loans. 2 The Company for funding exports and the internationalisation of Walloon Companies (SOFINEX) has as its particular mission to encourage exports and investment by Walloon companies in foreign countries.

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of a micro-loan (maximum of €25,000), may be for up to 80%. Each year, a total of between 220 and 250 projects benefit from this automatic counter-guarantee system.

1.2 SMEs and European funding

Wallonia makes the best use of the opportunities offered to it by European funding instruments, whether via the European Social Fund (ESF) or the European Regional Development Fund (ERDF)1. A good number of measures in this document are an example of this.

2 The "credit ombudsman"

The Walloon Region has a loan mediation structure:" Concileo".2 This was introduced in the context of anti-crisis measures (adopted in 2008) in order to find solutions to funding problems faced by SMEs (difficulties of dialogue, refusal to renew a line of credit, difficulty in obtaining deferment of instalments, termination of an existing loan).

1 All the programs funded can be found at the following address: http://europe.wallonie.be/ 2 http://concileo.be/

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GOOD PRACTICE:

The SOCAMUT automatic combination product

To help Very Small Enterprises create, develop or restart a business, the Walloon Region has developed a financial tool through the Walloon Mutual Guarantees Company (SOCAMUT).

It provides a guarantee of a maximum of 75% for a main bank loan of a maximum of 25,000 EUR, with the option of additional co-funding (subordinated loan from Socamut) of a maximum of 50% of the main bank loan with a ceiling of 12,500 EUR.

What is a really new feature is the product's automatic nature. In practice, the bank does not have to obtain SOCAMUT's prior approval before granting funding. It simply undertakes to inform SOCAMUT of its decision.

Max. total funding €37,500.

Max.

€25,000.

Max.

€12,500.

Main micro bank loan to a maximum of €25,000

Term a minimum of 2 years and a maximum of 10 years

Bank support automatically guaranteed by SOCAMUT up to a maximum of 75%.

Option for the bank to add an additional subordinated SOCAMUT loan to the bank loan, max. 50% of the bank loan with a ceiling of €12,500.

Without any guarantee being demanded from either the micro-enterprise or from the bank.

The term is the same as for the bank loan with the option of 6 months K excess.

No requirement for own funds.

Expenditure financed: working capital including start-up cash, physical and non-physical investment.

The combination product can be used at the time a company is created, but also at different stages of its life: whether it is a matter of an entrepreneur who wants to acquire new machinery, equipment, tools or professional furniture, who wants to transform/refurbish a building, who wants to buy goodwill/a company or who quite simply has a need for cash.

SOCAMUT's combination product can be used in the context of a financial package, the amount of which may not exceed 100,000 EUR (excluding own contributions).

Since it first became available in the second half of 2011, 550 Very Small Enterprises and self-employed persons have already made use of this product.

http://www.socamut.be/produit-mixte

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3 Introduction of "one-stop-shops"

In Wallonia, there is no single one-stop-shop properly speaking, where SMEs can seek all the European, national and local subsidies available.

However, in order to remedy this problem, the Region has created a "company information" portal (see above), a real entry point for companies. This comprehensive website is designed to increase the visibility of all the support mechanisms offered by the different regional and European actors. Amongst other things, it can be used to consult a list developed by the Wallonia Public Service, containing all the regional, national and European support schemes that can be accessed by companies located in Wallonia.1 A simplified version of this tool is available free of charge on-line. In this version, SMEs can find out directly what type of support is available to them. Companies cannot seek these subsidies directly via this tool, but they can find all the information they need there, and the forms required for applying for it.

Finally, companies can obtain full information regarding the different awards for which they may qualify from the various economic facilitation operators.

1 MIDAS list available at the following address http://economie.wallonie.be

GOOD PRACTICE:

MIDAS

Created 25 years ago, the "Midas" database lists all the public support for companies available in Wallonia. Its scope is far wider than that of the Walloon Public Service and Walloon Public Interest Bodies, since out of the 266 types of support listed (December 2012), 135 do not depend on a Walloon organisation, that is half of the aid schemes listed.

The database is now updated monthly. This database comes in 2 versions: a website (http://www.aides-entreprises.be) and a CD-ROM that provides additional search and printing options, but only downloadable from this website; the last paying subscriptions to the CD-ROM ended in December 2012. In 2012, officials of the Enterprise Networks Department (Direction des Réseaux d’Entreprises) (DRE –SPW-DG06) provided 227 answers to requests for information concerning support available.

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4 In conclusion

Following analysis of the implementation of this sixth area of focus of the SBA devoted to access to funding, it can be concluded that Wallonia is implementing all the recommendations made by the European Commission on the subject.

Only the recommendation relating to "one-stop-shops" through which SMEs can seek European, national and local grants has been partially implemented. In fact, and despite the introduction of the "enterprise information portal" which includes comprehensive information relevant to the subject, this type of one-stop-shop properly speaking does not exist in Wallonia.

Principle 6: Facilitating SMEs' access to finance, in particular venture capital and micro-loans

Recommendation


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implemented

Not

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6.1 To develop funding programmes that can remedy the absence of funding available for amounts of between

100,000 euros and one million euros, in particular via instruments that combine the characteristics of a loan

and the use of capital, while complying with the rules relating to State support.

x

6.2 To make full use of the funding available in the context of cohesion policy programs and in the context of the

European Agricultural Fund for rural development, in support of SMEs. x

6.3 To develop solutions such as the "credit ombudsman" to facilitate dialogue between SMEs and the credit

institutions still further. x

6.4 To create "one-stop-shops" through which SMEs can seek European, national and local subsidies. x

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Principle 7: Encouraging SMEs to take greater advantage of the potential of

the single market

Although all the Commission's recommendations come within the scope of federal competencies, Wallonia encourages SMEs to take greater advantage of the potential provided by the single market.

In fact, through activities conducted by the EEN Wallonia network and AWEX1 (described in the parts relating to the examination of the principle of "internationalisation"), many actions are implemented in Wallonia in order to support SMEs' access to the single market. For example, the EEN Wallonia network reports to the European Commission regularly concerning obstacles encountered by Walloon SMEs when they try to develop internationally, as well as other malfunctions of the single market.2

1 Walloon Export and Foreign Investment Agency 2 http://www.wallonieeurope.be/blx/

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Principle 8: Promoting the strengthening of qualifications within SMEs, as

well as innovation in all its forms.

1 Encouraging SMEs' internationalisation in particular via participation in clusters.

For 12 years, Wallonia has been developing a clustering policy1. In fact the policy of supporting enterprise networks implemented in Wallonia2 means that SMEs can group themselves in innovative clusters, involving either SMEs alone via clusters, or networks including SMEs, major companies and research and training centres via Poles of Competitiveness.

In the context of these policies, particular attention is paid to SMEs:

• Firstly, the nine Walloon clusters3 are networks composed essentially of SMEs4 and are involved in activities designed to strengthen links and commercial collaboration, etc. between SMEs in the same sector, collective promotional activities and sharing of knowledge.

• And secondly, the six Walloon Poles of Competitiveness include companies, training centres and public and private research units active in the same sector.

A specific budget is reserved for funding collaborative projects (mainly research projects) brought by members of these poles.

In order to improve SME participation in these projects and in the Poles of Competitiveness, only projects where at least one SME is involved, are financed.

An analysis of the composition of these polls and these clusters shows that this strategy works since 73% and 85% respectively of partner companies in these networks are SMEs.

In addition, AWEX's activities designed to support the promotion of Walloon companies in foreign countries, are generally carried out in collaboration with the Poles of Competitiveness and Walloon clusters.

1 http://clusters.wallonie.be/federateur-fr/ 2 For further details see SBA recommendation 10-review 3 Further information on: http://clusters.wallonie.be 4 They are however also open to other actors, such as universities, research centres and training centres, but the companies that belong to them are composed essentially of SMEs.

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In order to encourage SMEs to internationalise, AWEX has also established various support mechanisms. The following is a non-exhaustive list:

• Support for the development of export strategies (for Very Small Enterprises only).

• The use of foreign trade experts, the translation of technical and commercial documents.

• Participation in shows/congresses,…

These mechanisms will be developed further in principle 10 relating to internationalisation towards markets outside the EU.

2 Encouraging SMEs to become high-growth companies

2.1 First spin-off programme (support for research)1,

Aware of the importance of supporting high-growth SMEs, the Walloon Region has developed several spin-off and spin-out support mechanisms.

The aim of the FIRST SPIN-OFF program is to encourage university researchers to study the conditions required for the industrial and commercial exploitation of the results of their research and, if possible, to support business creation in the Walloon Region.

2.2 Funding mechanism for management support

It is sometimes not obvious for spin-offs and start-ups as to how they can meet the financial cost of engaging high managers. The "CxO" measure is designed to encourage, through financial support, the engagement of CEOs (Chief Executive Officer), CFOs (Chief Financial Officer), BDMs (Business Development Manager)… in order to support and advise companies and optimise their management and development.

2.3 Funding by spin-off, spin-out and innovative company "Invests".

The mechanism is coordinated by SOWALFIN which divided a budget of €8 million in 2004 between five local investment structures (Invests) with a view to investing, in the form of capital or quasi-equity, in priming funds for spin-offs set up in partnership with universities located in Wallonia. The preliminary priming phase corresponds to financing all initial research before the commercialisation phase.

1 Further information at the following address: http://recherche-technologie.wallonie.be/fr/menu/acteurs-institutionnels/service-public-de-wallonie-services-en-charge-de-la-recherche-et-des-technologies/departement-des-programmes-de-recherche/direction-des-programmes-regionaux/les-programmes-first/first-spin-off/index.html

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The measure was extended to spin-outs in 2005 (€6.8 million) then to innovative companies in the context of the Marshall Plan (€70 million). This budget was again increased in the context of PM2.Vert.1 2.4 Funding for innovative projects: Novallia

Through calls for innovative projects, this mechanism which is designed to stimulate innovation in its widest sense2, grants subordinated loans that Walloon SMEs can use to carry out innovation projects. The innovation involved can be a matter of the final product or the production process.

3 Promoting the development of SMEs' skills with regard to research and innovation

In order to promote the development of human, technological and organisational skills within Walloon SMEs, the Region has introduced a number of tools.

3.1 The introduction of networks of actors involved in technological development

• "Technological Innovation Partnerships": these promote partnerships between the different actors involved in research (companies, Universities, Approved Research Centres (CRA) and Colleges of Higher Education) outside the sectors of activity covered by the Competitiveness Polls. A budget of €17.5 million was provided in 2012 with a view to launching calls for projects in this context. Thus through the GREENTIC call, the Walloon Government decided to invest 10 million euros in the area of information and communication technologies (ITC) and Multimedia at the service of sustainable development. This is a matter of generating industrial research and/or experimental development projects conducted in collaboration with several companies (at least two) and several research organisations (at least two), with a view to initiating breakthrough innovations that can be used to develop essentially new products, processes or services with an objective of sustainable development.

• A network of actors involved in technological development (companies, universities, colleges of higher education, research centres…) and service providers capable of facilitating and stimulating the development process via innovation, facilitated by the Economic Stimulation Agency (AST)3.

1 UWE , "the invests" 2 Technological and non-technological innovation that affects either the final product, or the production process, etc… 3 http://ast.wallonie.be/

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3.2 Support designed to stimulate non-technological innovation in SMEs:

• "Innovation" grants are used to support Very Small Enterprises and SMEs in their non-technological innovation strategies. The project must enable the company to develop its methods of organisation and its sales methods, or give significant differentiation to its products or services.

• "Sustainable development innovation" grants are implemented in the form of annual calls for projects and cover costs linked to the design and implementation of prototyping for new products or services.

• The "Op-in" mechanism consists of supporting organisational innovations and/or processes that companies plan to implement in order to improve their overall method of operation. The subsidy may cover between 15 and 35% of eligible expenditure.

• Rentic Award for SMEs: The e-business decree specifies an award (maximum of 5,000 euros per month of services) for companies that use an e-business integration project manager in their company (Rentic). In the case of this support, the Walloon Region covers 80% of the cost of an NICT and e-business manager for three months to a maximum of one year.

• AWT offers an award for the creation of an e-business site, that is a virtual space on the Internet containing a variety of information or computer applications and which can be used for:

o Selling products or services to a consumer. o Selling products or services to a company. o Sharing information or computer applications with another company.

The amount of this award is a maximum of 15,000 euros and may not exceed 50% of the cost of producing the site.

• A grant for feasibility studies or research projects whether experimental or not.

Specifically, this support permits the use of an external organisation – approved collective research centre, public research body, university or college of higher education research unit – for technical services (analysis, measurements, testing,…) that are part of a strategy prior to industrial research activities or the experimental development of a product or new process. The amount of funding varies between 40%

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and 75% of eligible expenditure (depending on the characteristics of the company and the project).

• At the end of 2012, the Walloon Government also voted for the provision of spaces dedicated to open innovation in order to create Living Labs in the Region. A Living Lab brings together public and private actors, companies, associations and individual actors, with the objective of testing services, tools, or new uses in a lifelike environment.

• "Boost-Up" : initiated by Creative Wallonia, these calls for projects support innovation in the following sectors:

� Boost-Up Industries Créatives (see box).

� Boost-Up Crossmedia supports the development and launch of innovative products designed to promote the dissemination of film material using new channels in order to extend the scope of its attractiveness (2 calls for projects since its creation).

Good practice:

Boost-Up Industrie créactive

http://www.creativewallonia.be/boost-up

Boost-Up/Industries Créatives is a call for projects,

the raison d'être of which is to grant finance

(amounts varying from 40,000 to €140,000) to the

self-employed, Very Small Enterprises and SMEs in

the creative industries sector, in order to support the

launch onto the market of one of their innovative

prototypes.

There have already been three calls for projects

since its creation in 2011 with on average 60

applications for 6 awards.

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3.3 Support designed to stimulate technological innovation

• Intellectual Property support: this may be related to an application for, or an extension to a patent (Wallonia Public Service), legal consultancy (AWEX), training, or individualised support (Picarré)1,...

• "Prototyping" is a mechanism designed to support experimental development activities relating to prototyping and later stages of development with a view to marketing. Specifically, prototyping support, implemented in the context of Creative Wallonia, is expressed by support for the design of prototypes or pilot installations, testing of these prototypes and pilot installations, and final adjustments before marketing of these prototypes and pilot installations.

1 http://www.picarre.be/

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CWALity

Call for proposals designed to support the development and validation of essentially new products, processes and services intended for industrial use in the short-term by SMEs that initiate the project applications.

More particularly, projects should be part of the Walloon and Wallonia-Brussels Federation Governments' 2011-2015 Research Strategy philosophy entitled "Towards an integrated research policy", and preferably should be within the five research topics defined: Sustainable development; Energy; Technological research; Health; Extension of the length and quality of life.

Research themes at the point where these five strategic themes and the six Competitiveness Pole areas intersect are also encouraged.

The CWALity call has two aims:

1. Industrial research within an SME in order to develop a new product, process or service meeting a market demand (new needs). In this case, the call is addressed exclusively to SMEs.

2. To strengthen collaboration between the world of research and the world of business. In this case SMEs must be supported by a research organisation: a university, a college of higher education, an approved research centre or a public research body.


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Generally, support is not always specifically reserved for SMEs, but intervention rates for this type of company are often higher. Statistics show in addition, that 2/3 of company R&D expenditure funded by the Walloon authorities is granted to SMEs1.

We should also make reference to the different types of support co-funded by the ERDF in the context of the 2007-2013 structural funds program and which are reserved for SMEs (Acquitech, Retech, Stimule).

3.4 Promoting recourse to the expertise of highly qualified personnel

Certain types of Walloon Region support are specifically intended to facilitate recourse to the expertise of highly qualified personnel such as technology vouchers that give financial support to recourse by SMEs to the services of research centres.

"First Enterprise" programs can be used to cover the cost of employing a researcher (up to 70% in the case of small companies) and providing his/her training in a research centre.

Finally, several organisations that are members of the network facilitated by AST act as an interface between people involved in research and companies: LIEU (Liaison Entreprises-Universités) provides an interface with the universities and Innovatech provides an interface with research centres.

1 http://indicators.plan.be/ - SMEs R&D expenditure financed by the government sector (% of total business R&D expenditure financed by the government sector)

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3.5 Support for the development of skills within SMEs

Various support instruments enable SMEs to develop their skills. Thus, the Walloon Telecommunications Agency (Agence Wallonne des Télécommunications (AWT)) organises e-learning workshops intended for companies.

The ASE offers company bosses, via the economic facilitation operators, a training programme covering strategic intelligence methods and tools in order to anticipate, to make the right decisions at the right time and to innovate.

In addition, numerous training sessions designed for SMEs (mainly for their managers) are arranged by IFAPME as well as by higher education establishments such as ICHEC-PME.

Finally, the various economic facilitation operators coordinated by the ASE organise specific training sessions intended for SMEs in numerous fields.

4 Transnational research activities

Several actions are carried out in order to facilitate SMEs' access to transnational research activities.

• NCP-Wallonie1 assists Walloon SMEs in setting up projects for candidature in the context of the Framework Program for Research and Development (Programme Cadre Recherche et Développement (PCRD)) and calls for "eco-innovation" and "ICT Policy Support Programme" projects for the framework programme for competitiveness and innovation (CIP).

• SPW-DGO6 is part of ERA-Nets with the objective of encouraging Walloon SMEs to participate further in transnational research.

• SPW grants "Horizon Europe" awards that can be used by SMEs partly to cover expenditure incurred when putting forward a project in the context of the PCRD.

Participation by Walloon SMEs in calls for first commercial application eco-innovation CIP projects is also quite great2.

1 http://www.ncpwallonie.be/ncp/le-ncp/qui-sommes-nous 2 For the period 2008-2011, six out of nine Belgian companies benefiting from these grants was a Walloon company.

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5 Participation in the implementation of the European "Lead market" initiative

Wallonia Public Service1 is a coordinator for the LEAD-ERA project, launched in March 2009 that is part of the philosophy underlying the "Lead market" initiative.

Walloon company participation in this project reflects the efforts undertaken in Wallonia to support this initiative2. A third call for LEAD-ERA projects opened on 14 January 2013.

In addition, at Walloon level, several clusters and poles are active in different sectors of the initiative: renewable energies (Tweed), sustainable construction (Eco-construction and Cap 2020), bio-based products (GreenWin), etc.

At European level, the final evaluation of the "lead market" initiative took place at the start of 2012 and no specific action linked to this initiative has since been launched by the Commission. This evaluation highlights the importance of an approach to innovation focused on demand. Meanwhile, the concept of "European Innovation Partnerships" (EIPs) was launched by the Commission and combines tools linked to demand and supply in order to resolve certain major societal challenges in Europe. In this context the Walloon Region intends being actively involved in the implementation of the "Raw material" EIP and supporting the involvement of Walloon actors. The Walloon Minister of the Economy and SMEs has in addition been appointed by the Commission as a member of the Sherpa Group for the governance of this EIP.

The Walloon Region is attentive to recommendations and results linked with the initiative, as well as any future developments.

6 In conclusion

Following analysis of the implementation of this eighth area of focus of the SBA, it is possible to conclude that Wallonia is implementing all the Commission's recommendations.

Only the recommendation concerning "lead markets" has not been fully implemented because:

• Firstly, it was not possible to participate in all the working groups initiated by the Commission.

• And secondly, there have been no new initiatives from the Commission since publication of the final evaluation of the initiative.

1 DGO6 - Federal and international Programs Department. 2 At the time of the first call for projects launched in February 2010, 10 of the 34 projects funded involved Walloon partners, that is over 25%.

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Principle 8: Promoting the strengthening of qualifications within SMEs, as well as innovation in all its forms.

Recommendation


Partially

implemented Not implemented

8.1 To encourage efforts undertaken by SMEs to internationalise and to become high-growth

companies, in particular through participation in innovative clusters. x

8.2 To promote the development of SMEs' skills with regard to research and innovation, for example

through simplified access to public research infrastructures, recourse to research-development

services and the recruitment and training of qualified personnel, in accordance with new community

supervision of government support for research, development and innovation.

x

8.3 To open up national research programmes when this is also an advantage for other member states'

SMEs, and to contribute to SME access to transnational research activities, for example via joint

programmes.

x

8.4 To ensure, during the implementation of the Cohesion Policy programme, that SMEs are able to

obtain funding linked to entrepreneurship, innovation and knowledge easily.

x

8.5 To encourage companies, and in particular SMEs and other interested parties, including contracting

authorities, to participate in actions contributing to the rapid implementation of the "Lead markets"

initiative.

x

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Principle 9: Enabling SMEs to turn environmental challenges into

opportunities

Wallonia primed its transition to a greener economy by adopting Plan.Marshall 2.vert for the period 2009-2014 comprising certain relevant measures. Thus the Regional Policy Declaration (Déclaration de Politique Régionale (DPR))1 2009-2014 states that Wallonia wants to position itself as a spearhead of sustainable development at European and world level, by equipping itself with recognised expertise that can be used abroad, while creating jobs that for the most part remain in Wallonia. It also mentions that Wallonia must act as an example, in particular by incorporating a sustainable dimension, on a cross-sectional basis, in its operation and all its actions.

For this purpose, the DPR makes the Plan Marshall 2.Vert (PM2.V)2 its priority action plan for continuing Wallonia's socio-economic and sustainable development.

This change of course has influenced a good number of the Walloon Region's measures and support mechanisms relating to the green economy and to the effective use of resources. Thus, a new pole of competitiveness has seen the light of day (GreenWin), but also a whole series of new policies and support measures.

1 DPR : http://gouvernement.wallonie.be/system/files/nodes/publication/901-projetdedeclarationdepolitiqueregionalewallonne.pdf 2 PM2V: http://www.wallonie.be/servlet/Repository/integral_fr+plan+marshall+2+vert.pdf?ID=57382

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Good practice:

A recognised pole of competitiveness, GreenWin is the Pole of competitiveness for green chemistry and sustainable materials (including their application in low-energy buildings).

It also works on behalf of Wallonia's economic development, by promoting its industrial dynamic. It brings together, within the same network, small and large companies, universities, research centres, training operators and the communities involved in the development of the green economy and motivated by the opportunities offered by pooling skills and sharing resources.

GreenWin is organised around 3 three strategic areas which focus on the life cycle of material, with a view to offering its members a strategic watch and a shared vision. GREENWIN wants to promote all the companies active locally in the area of materials, either their production or their application, and conscious of their environmental impact. All projects are evaluated according to their market potential and the impact in terms of environmental costs and benefits of the life-cycle of the final products.

GreenWin, approved on 24 February 2011 currently represents:

• A hundred members, including 75 businesses.

• 14 R&D projects are currently in progress, including 7 SMEs and 7 large companies, for a total amount of €45,758,056.50, including €30,545,104.59 of public subsidies.

• Four Training projects are in progress for a total amount of €14,251,706, including €7,805,785 of public subsidies.

www.greenwin.be

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1 Supporting investment in the areas of the environment and energy

• The Walloon Region grants an investment award or exemption from property tax to companies involved in an investment programme or which are carrying out one or more operations contributing decisively to sustainable development1.

The first part of these support mechanisms covers investments relating to the protection of the environment, that is, any action designed to repair or prevent damage to the physical environment or natural resources (including investments designed to ensure compliance with community standards, or to exceed them). Intervention rates in this area are higher in the case of SMEs than for large companies: between 15% and 20% for large companies, and between 30 and 35% for SMEs (in the case of investments designed to exceed community standards).

The other part of these support mechanisms covers the rational use of energy resources (hydraulic energy, wind energy, solar energy, geothermal energy, biogas, high yield cogeneration and energy savings during the production process).

Intervention rates in this area are also higher in the case of SMEs than for large companies: 20% for large companies but up to 50% for SMEs.

In addition, it can be noted that the total amount of support granted in this area has shown a strong increase during recent years since it has increased from 14,445 million euros in 2008 to 238,391 million euros in 2010.2

• Several years ago, the Walloon Region set up a network of "facilitators" to provide support and frontline advice to companies wishing to invest in renewable energy sources and the rational use of energy.

These facilitators are able to provide considerable support for a company's "energy" strategy: advice and information concerning support and awards, advice and information concerning technical and economic aspects and support when considering the choice of technologies...

The intervention of these facilitators is sometimes based on the company's sector of activity (for example: tertiary facilitator, industry facilitator…), sometimes on the technologies involved (for example: wind generation facilitator, heat pump facilitator…).

1 Decree of 11 March 2004 relating to incentives to promote the protection of the environment and the sustainable use of energy 2 Data collected from the Investment Programs Department (SPW-DGO6)

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These are private or association operators, chosen by the Region for their competence. Their intervention is free of charge.

Companies can also benefit from the support of UWE and UCM Environmental Councillors. Their role is to inform Walloon companies about environmental regulations and help them incorporate the environment into their day-to-day management.

• In addition, the Walloon Region funds research partnerships and industrial research activities in the area of sustainable development such as:

� The call for GREENTIC1 projects which is designed to generate research partnerships in the area of "ICT and multimedia at the service of sustainable development".

� The call for proposals in the context of the WB Green mobilising program in order to finance industrial research activities in the area of the environment and sustainable development.

• A new call for "Sustainable development" projects was launched in 2012 in the context of the Competitiveness Poles and clusters. 15 research projects and 4 training projects, involving 100 partners were approved.

• In the context of the Employment-Environment Alliance (focused on construction and sustainable renovation), certain actions concern SMEs more particularly:

� GREENWAL : creation in 2012 of an integrated development platform combining professional training, technological innovation, R&D, forecasting, advice in the area of construction/sustainable renovation, environmental performance of buildings and eco-design.

� Creation of sustainable enterprise clubs. These are an attempt to respond to the economic and environmental concerns shown by professionals in the construction sector. Numbering six, these clubs constitute platforms for 20 or so companies that collaborate with each other, train each other, inform each other and stimulate each other.

1 Cf. section on non-technological innovation.

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� Launch in 2012 of a call for a project designed to promote the development of the sustainable construction materials sectors in Wallonia. This call focuses on the preproduction and start-up of marketing phases and offers additional support with regard to research.

• The AMURE program offers the opportunity (grant equivalent to 50% of the cost) to any private sector company carrying out agricultural, industrial or service activities:

� To introduce an energy accounting system.

� To carry out an energy audit in order to assess the relevance of an investment.

� To develop a comprehensive plan to improve the company's energy efficiency.

2 Helping SMEs to adapt their activities in line with a sustainable economy

The Walloon government is working to strengthen entrepreneurs' skills and training in order to help them adapt their companies in the transition to a sustainable economy.

• In October 2012, the Walloon Government launched "Premio". This is a new support mechanism for consultancy and eco-management enabling SMEs to have recourse to skills in different areas. Specifically, this grant for non-technological innovation covers the following areas:

� Management of energy consumption, waste management, water consumption.

� Use of lighting, use of computer equipment.

� Optimisation of travel and transport of goods and people.

� Tool to monitor invoices relating to waste management and to control quantities.

� Staff mobility survey.

� Use of services offered by social economy companies.

� Introduction of new structures such as teleworking, video-conferencing...

• The Walloon Region Government has developed the Eco-climate Training voucher. This is a matter of financial support for the continuous training of workers in the area of the environment. More particularly, these Vouchers can be used exclusively for training linked with energy efficiency. Up to now, 11 centres have been approved by FOREM for 53 training courses.

• "Sustainable Development Innovation" grants are implemented in the form of annual calls for projects and cover costs linked to the design and implementation of prototyping for new products or services.

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• In the context of the AMURE program 1, the Walloon Region grants companies a subsidy for them to carry out an energy audit of their installations.2

• The Region offers consultancy support3 for SMEs that also covers costs linked to the use of an approved expert for the introduction of an environmental management system or the improvement of the company's environmental management (excluding impact studies) and sustainable development strategy; these support mechanisms cover the introduction of environmental management systems of the EMAS or ISO 14100 type. These support mechanisms are reserved for SMEs and cover 50% of the eligible costs up to a maximum amount of 12,500 euros.

• Creation of an Eco-design cell within Wallonie Design. The cell is responsible for carrying out and coordinating the implementation of actions involving awareness raising, promotion and networking relating to eco-design with the target public.

• Thematic incubators are available for young innovating companies:

� In the area of engines specific to the Spa-Francorchamps Campus.

� Wallonia Space Logistics offers a host structure for entrepreneurial projects linked to environmental technologies.

• NEXT platform - industrial ecology platform : this is a pilot project designed to promote industrial symbiosis projects, in order to minimise the loss of resources (energy, materials, water).

The program's general objective is to support companies' sustainable competitiveness through actions involving awareness raising, specialist support, detection of potential synergies and mutualisation with economic potential,…

• In the context of the GreenWin competitiveness poll, the Walloon Government and the Wallonia-Brussels Federation Government, in 2012 approved:

� A university diploma in "the strategic management of carbon" . This diploma aims to develop consultancy activities in terms of carbon audits and/or controlling an expert assessment within ones own company with regard to a low carbon strategy that can be built and implemented.

� A university diploma in the re-use of Biomass by the ULB. This diploma aims to encourage participants to use the potential of biomass in order to optimise their energy consumption and increase their material performance.

1Legal basis: order of the Walloon Government dated 30 May 2002. 2 CF the section entitled "Supporting investment in the areas of the environment and energy". 3 Legal basis: decree of 11 March 2004 regarding regional incentives for small or medium-sized enterprises

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3 Taking measures to encourage SMEs and Very Small Enterprises to take advantage of

simplified systems of the EMAS type, such as "EMAS-EASY"

The Walloon Region has established support mechanisms relating to investment concerning greater protection of the environment for EMAS or ISO 14000 certified companies1.

Finally, the consultancy awards referred to above also cover the introduction of EMAS or "EMAS-EASY" systems, as well as the new Premio consultancy award.

Finally, some economic facilitation operators2 use the EMAS-Easy or ISO 14001 easy methodology to support small groups of companies in the introduction of an environmental certification system.

4 In conclusion

It being a matter of the SBA principle devoted to environmental challenges, the Commission's recommendations 2 and 3 have been fully implemented, unlike recommendations 1 and 4.

In fact concerning recommendation 1, no measure funded by the structural funds is explicitly designed to support "environmentally friendly products and processes in SMEs" even if this dimension is incorporated in a cross-sectional manner into the Competitiveness and Convergence operational programmes. In addition, measures taken at Walloon level do not target all SMEs, thus preventing the conclusion being reached that this recommendation is being applied in full.

It also cannot be concluded that recommendation 4 in this area of the SBA's focus is being fully implemented. In fact, although the Region has developed a whole series of instruments and support mechanisms relating to it, regulations have not been passed on the subject.

1 Legal basis: Walloon Government order of 02 December 2004 regarding the execution of the decree of 11 March 2004 relating to incentives intended to promote the protection of the environment and sustainable use of energy. 2 BEP IDETA and the partner economic operators in the cross-border Rife2 network project (Luxembourg CCI and Idelux)

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Principle 9: Enabling SMEs to turn environmental challenges into opportunities

Recommendation


Partially

implemented

Not

implemented

9.1 To make full use of the 2.5 billion euros assigned to programs covered by the

Cohesion Policy, to support environmentally friendly products and processes

within SMEs.

x

9.2 To make better use of opportunities for State aid to support investment in the

areas of the environment and energy. x

9.3 To help SMEs acquire the managerial and technical skills necessary to adapt their

activities to a low carbon emission economy and one that is efficient in using

resources thanks to, amongst other things, the European social fund.

x

9.4 To grant regulatory incentives to EMAS (environmental management and audit

system) and ISO 14000 certified SMEs and to take comprehensive measures to

encourage micro-enterprises and small enterprises to take advantage of

simplified systems of the EMAS, and "EMAS-EASY" type.

x

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Principle 10: Supporting SMEs to take advantage of the growth of markets

outside the EU

1 Sponsorship of SMEs by large companies

1.1 The "Piggyback" program

In the context of the "Piggyback" incentive, AWEX wishes to encourage Walloon companies to locate outside the European Union at the lowest cost by benefiting from facilities made available to them by Walloon partner companies already present and recognised in the country concerned.

For the applicant company, it is a matter of installing a commercial structure within facilities made available by a Walloon partner company already present and recognised in the foreign country.

In other words, this means that the latter sub-lets its facilities and some of its staff for a predetermined period to the Walloon company wishing to locate in the country.

AWEX covers a maximum of 70% of the actual cost of operating representation for one year. Intervention by AWEX for a second year is possible on the basis of a reasoned application justifying the importance of extending such representation for a second year.

In the longer term, host companies would no longer need to be large companies but also Walloon SMEs. A new configuration of the programme will be developed for the end of 2013.

1.2 Enterprise clusters

At the same time, the Walloon Enterprise Union supports SMEs in their efforts to internationalise via the introduction of export clusters that bring suppliers of goods and services in the same sector of business together with a leading company in its sector (sponsor).

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2 Walloon support for the establishment of SME networks

2.1 Internationalisation of clusters

A Walloon decree specifies that a specific subsidy should be made available to support a cluster that introduces a partnership in the context of participation in an international co-operation programme (support for internationalisation) or which enters into a company inter-network cooperation agreement with a view to carrying out a specific task, including in an international context.

The ceiling for this specific subsidy has been fixed at €24,000.

2.2 Internationalisation of poles

AWEX funds a series of actions dedicated to encouraging the internationalisation of Wallonia's competitiveness poles.

• Part of the operating costs.

• The development of an international strategy.

• Promotional actions and actions to do with international visibility.

• Actions do with international prospecting.

• The creation of international networks and partnerships.

3 Raising awareness and skills directed towards international markets

3.1 Raising awareness

The Walloon Export Agency also carries out a mission of raising awareness among Walloon companies regarding exports. Thus, for example and non-exhaustively, in 2012 it organised:

• Speed coaching sessions.

• Coaching workshops (some were organised with EEN Wallonia).

• An awareness raising campaign with regard to exports via roadshows.

• A seminar concerning international (VAT, export support) and cross-border "e-commerce".

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3.2 The acquisition of skills

Concerning support for the acquisition of the skills required to internationalise, AWEX supports SMEs in their efforts to acquire them and to open themselves to the international market, and this at several levels:

• It grants support enabling SMEs to use experts in the development of strategies for export, foreign trade and the integration of design into export strategies,…

• For example, in 2012 AWEX engaged four specialist officers to help SMEs respond to international calls for tenders and combined with Sofinex in order to select and approve foreign trade specialists.

•

Good practice:

Coaching vouchers

In collaboration with the Walloon Enterprise Union, a flexible and innovative "coaching vouchers" mechanism was started in September 2011 within AWEX.

This is a matter of the provision to Walloon companies of a network of high level coaches able to support them in their international partnership strategies. A communication campaign with the target public accompanied the start-up of this action.

Currently, 73 Walloon enterprises have called on this mechanism. Seminars and presentations designed for institutional partners and companies have been organised throughout the year by AWEX.

The generally very positive evaluation of the mechanism, after a year of operation, has enabled improvements to be made, above all in the approach, and in the presentation of the support mechanism to SMEs.

This observation has encouraged the regional authorities to extend the measure. Thus, in 2013, the Region is due to launch "web 2.0 export" vouchers. These new vouchers should allow the provision of specialist consultants (approved by AWEX, AWT and the Infopôle ICT Cluster) to Walloon companies for 5 days spread over one year.

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It also provides support to enable SME managers to undergo immersion language courses, and take intensive courses in German and English thanks to the "Wallangue pack", as well as individual training in external communication.

• Finally, AWEX also grants EXPLORT grants that external trade/language students and jobseekers can use to acquire specific knowledge regarding exports and the promotion of goods and services within and outside Europe.

• AWEX is not the only organisation working in the area of the acquisition of skills needed by SMEs. In fact, Competence Centres also contribute to building qualifications within SMEs. They respond to an overall objective involving the adaptation of companies and their workers to changes in their production systems and are aimed at workers, jobseekers, students, teachers, and at company bosses and management.

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4 In conclusion

Following analysis of the implementation of this tenth area of focus of the SBA, it is possible to conclude that Wallonia is implementing all the European Commission's recommendations.

Principle 10: Supporting SMEs to take advantage of the growth of markets outside the EU

Recommendation


Partially

implemented

Not

implemented

10.1 To encourage sponsorship of SMEs by large companies with a view to introducing

these SMEs to international markets. x

10.2 To provide support for the establishment of networks of SMEs, in accordance with

European rules with regard to State support and competition. x

10.3 To encourage SMEs to acquire specialist skills that will help them develop,

innovate and internationalise1.

x

1 This recommendation could validly have been included under principle 8 as well

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Results of the analysis

1 Global overview

Of the 41 recommendations evaluated, 100% are being implemented, including 35% partially.

recommandations

non mises en

œuvre

0%

recommandations

totalement mises

en œuvre

65%

recommandations

partiellement

mises en œuvre

35%

Degré de mise en oeuvre globale du SBA

Overall degree of implementation of the SBA

Recommendations not implemented 0%

Recommendations partially implemented 35%

Recommendations fully implemented 65%

We can conclude therefore, while bearing in mind the limitations specific to this evaluation,

that overall the "Small Business Act" is being implemented in Wallonia even if the

implementation of certain recommendations needs to be strengthened.


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2 Overview by topic

• The first observation is that the number of the Commission's recommendations varies

greatly depending on the topic. In fact, there are two in "Second chance" and nine in

"Entrepreneurship".

• The second observation to bear in mind when interpreting the results of the analysis is the

degree of accuracy of the various recommendations, which also varies, ranging from

specific and calculated recommendations to recommendations that are fairly fuzzy.

Beyond the overall analysis, it is also interesting to examine the degree of implementation of

the recommendations linked to each of the 10 principles of the "Small Business Act" which is

presented in the table below. This helps bring out the following elements:

• The analysis highlights that there are no recommendations, within the Region's field of

competence, that remain to be covered in Wallonia.

• In the same order of ideas but expressed in another manner, all the recommendations

have at least been partially covered by regional action aimed at SMEs. This indicates

that the overall implementation of the SBA's recommendations is not being carried out to

the detriment of the poor application of one or more of its principles.

• Thirdly, the 4 areas of focus that show the best performance are the four areas of

priority focus in the Walloon SBA, that is entrepreneurship, internationalisation, funding

and innovation.

• It is also important to stress the very good degree of implementation of principle 4

relating to administration . This latter principle reflects a real concern on the part of the

public authorities in their policy of simplification with regard to SMEs.

• Principle 2 relating to promotion of a second chance displays the weakest degree of

implementation of the "SBA" . It should be noted that a single recommendation was

examined in the context of this principle and that it had only been partially implemented.


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0% 50% 100%

Internationalisation (3)

Environnement (4)

Innovation & Compétences

(5)

Financement (4)

Marchés Publics (4)

Administration soucieuse

des PME (4)

Think Small First (5)

Seconde Chance (1)

Entrepreneuriat (9)

Degré de mise en œuvre par thématique du

SBA

mis en œuvre

partiellement

mis en œuvre

Degree of implementation of the SBA by topic

Entrepreneurship (9)

Second Chance (1)

Think Small First (5)

Business-friendly administration of SMEs (4)

Public Procurement (4)

Access to finance (4)

Innovation & Skills (5)

Environment (4)

Internationalisation (3)

Implemented

Partially implemented

The figure in brackets indicates the number of recommendations made by the Commission.


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3 Working perspectives for 2013

In order to continue the implementation of the SBA in Wallonia, and following the 2012 SME Parliament, the SBA steering committee set itself the following objectives:

1. Entrepreneurship

• Promoting a positive image of entrepreneurs (ASE).

• Strengthening entrepreneurship in higher education (ASE).

• Preparing a first assessment of the Walloon Centre for companies in difficulty (Centre pour entreprises en difficulté wallon (CED-W) (ASE)).

• Extend actions to do with transmission and communication around it (SOWACCESS).

2. Access to finance

• Improve communication regarding the SOWALFIN mechanisms.

• Study the "Tante Agathe" mechanism (SOWALFIN).

• Create a platform to build relationships between companies and investors of all types (SOWALFIN).

3. Innovation

• Explore the possibility of creating an "SME portfolio" (DGO6).

• Continue the development of non-technological innovation tools (Creative Wallonia).

• Launch the "Living Labs" mechanism (CETIC).

4. Internationalisation.

• Maximise the potential of networking (AWEX).

• Continue administrative simplification (AWEX)

• Strengthen support for major exports (AWEX)

• Increase the number of exporting SMEs (AWEX)


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5. Cross-sectional

• Improve visibility and communication regarding Walloon SME support mechanisms.

These various objectives should be implemented within or outside the context of the "Plan Marshall 2.Vert" and the "Together let's make things simple Plan".

Report preparation:

This report was prepared by the Economic Policy Directorate SBA Cell, under the supervision of Daniel COLLET, Walloon SME Envoy.

People contributing to the preparation of the report:

Vincent LEPAGE, Antoine BERTRAND, Mélanie RENSONNET, Amélie DECOUX


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Appendix 1: Members of the SBA Steering Committee

Administration:

• Cell of the Special Delegate to the Plan Marshall 2. Vert • General secretariat

• Cross-sectional General Directorate for Staff and General Affairs (Direction général transversale Personnel et Affaires Générales (DGT1))

• Operational General Directorate for the Economy, Employment and Research (Direction générale opérationnelle de l'Economie, de l'Emploi & de la Recherche (DGO6))

• Operational General Directorate for Tax Affairs (Direction générale opérationnelle de la Fiscalité (DGO7))

• Walloon Permanent Representation to the European Union

Public Interest Bodies:

• Agency for Economic Stimulus (Agence de stimulation économique (ASE))

• Agency for Technological Stimulus (Agence de stimulation technologique (AST)) • Walloon Telecommunications Agency (Agence Wallonne des Télécommunications

(AWT)) • Office for administrative simplification (Commissariat à la simplification

administrative (EASI-WAL)) • Wallonia Regional Investment Company (Société Régionale d'Investissement de

Wallonie (SRIW sa)) • Wallonia Finance Company (Société wallonne des Finances (SOWALFIN)) • Wallonia Mutual Guarantee Company (Société des Cautions Mutuelles de Wallonie

(SOCAMUT)) • Wallonia Investment Management Company (Société Wallonne de Gestion et de

Participations (SOGEPA)) • Wallonia Acquisitions and Transfers Company (Société wallonne d'Acquisitions et de

Cessions d'Entreprises (SOWACCESS)) • Transeo

• Company for funding exports and the internationalisation of Walloon Companies (Société de financement de l’exportation et de l’internationalisation des entreprises wallonnes (Sofinex))

• Walloon export agency (Agence wallonne à l’exportation (AWEX)) • Wallonia-Brussels International (Wallonie-Bruxelles International (WBI))

• Walloon Enterprise Centre in Europe (Maison de l'entreprise wallonne auprès de l'Europe (MEWE))

• Enterprise Europe Network (EEN)


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Policy:

• Cabinet of the Minister of the Economy and SMEs


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Appendix 2: "Small Business Act" recommendations deemed not relevant:

Principle 1: Entrepreneurship


1. Implement by 2012, the recommendation included in the SBA action plan proposing a reduction

in the time period for creating a new company to 3 business days and the cost to100 euros; reduce

to one month by the end of 2013, the time required to obtain licenses and permits (including

environmental permits) to resume and carry out a company's specific activity. (Re-examination of

the SBA-2011 - area 3.4).

� Justification: federal competence. Please note, the part of the

recommendation in italics regarding environmental permits has been

evaluated as if it was a regional competence.

2. Try to limit to one year the total time required for the legal procedures to liquidate a company in

the case of non-fraudulent bankruptcy (SBA 2008).

� Justification: this recommendation is included in the SBA re-examination.

3. Implement by 2013, the recommendation included in the SBA action plan with a view to offering

a second chance to entrepreneurs, limiting to a maximum of three years the period of

rehabilitation and settlement of debts for an entrepreneur subject to bankruptcy in good faith (Re-

examination of the SBA-2011 - area 3.4).

� Justification: federal competence.


1. Exploit the options for flexibility with regard to SMEs when implementing community

legislation, and avoid going beyond what is necessary (SBA 2008).



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2. Assess the impact of future legislative and administrative initiatives on SMEs ("SME test")

rigorously and bear the results of this assessment in mind when preparing proposals (SBA 2008).

� Justification: included in the re-examination of the SBA, the recommendation

being evaluated at point 2 .3 under the reference SBA-3.1-rev.

3. Study the value of applying common effective dates and annual declarations relating to legislative

acts coming into force (SBA 2008).

� Justification: included in the re-examination of the SBA but not evaluated cf

infra.

4. Present each year at a specific time, a schedule of company legislation due to come into force

during the next budgetary period. (Re-examination of the SBA-2011 - area 3.1)

� Justification: not included in the Competitiveness Council's conclusions of 31

May 2011.

5. Ensure the rapid adoption of proposals concerning the reduction of administrative burdens in

community legislation. (SBA 2008)

� Justification: concerns the adoption of community legislation

6. Adopt the Commission's proposal that would allow member states to increase the VAT

registration threshold to 100,000 euros. (SBA 2008)

� Justification: concerns the adoption of community legislation


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1. Reduce the level of fees payable to member states' administrations for registering a company,

following the example of the most effective member states in this area (SBA 2008).


2. Continue efforts to reduce the time required to set up a company to less than a week, when this is

still not the case (SBA 2008).


3. Accelerate the start-up of SMEs' commercial activity by reducing and simplifying the

authorisations and permits they require. More precisely, member states could fix a maximum time

period of one month for granting licences and authorisations and permits, except in circumstances

where a longer time is justified due to the serious risks for people or the environment. (SBA 2008)

� Justification: Federal competence for the most part, but the question of

environmental permits is dealt with in the examination of SBA-rev

recommendation 4.1 concerning town planning permits; this is mainly a

matter of decisions taken at municipality level, consequently it was not

deemed relevant to tackle this question in this analysis.

4. Ensure that micro-enterprises are not invited to participate in a statistical survey under the

responsibility of the national, regional or local statistics office more than once every three years,

except if the need for statistical or other information makes such participation necessary (SBA

2008).


Principle 5: Public procurement


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Principle 6: Funding

1. Ensure that disparities between different types of tax treatment do not lead to double taxation

which could curb cross-border venture capital investments (Re-examination of the SBA-2011 -

area 3.2).


2. Ensure that taxation of company profits encourages investment (SBA 2008).


3. Address the regulatory and tax obstacles that prevent venture capital funds operating in the single

market from investing under the same conditions as domestic funds. (SBA 2008)


4. Facilitate access by SMEs to structural funds, enabling them to supply all the data required to

benefit from the contribution of these funds just once (Re-examination of the SBA-2011 - area

3.2)

� Justification: This recommendation has no real meaning to the extent that

SMEs do not use structural funds directly and in addition it was not included

in the Competitiveness Council's conclusions.

Principle 7: Single market

1. Ensure the proper application of the principle of mutual recognition. (SBA 2008)


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2. Strengthen the SOLVIT system for resolving problems in order to guarantee that problems posed

by rights resulting from the single market being exercised can be resolved informally, quickly and

pragmatically (SBA 2008).


3. Encourage national standards bodies to re-examine their business model in order to reduce the

cost of access to standards (SBA 2008).


4. Ensure that the composition of standards committees is fair (SBA 2008).


5. Invite national standards bodies, jointly with European standards bodies, to launch campaigns

with regard to promotion and information, in order to encourage SMEs to make better use of

standards and feedback information concerning their content (SBA 2008).


6. Provide consultancy services for SMEs, including those that need to defend themselves against

unfair trade practices (SBA 2008).


7. Invite national standards bodies, jointly with European standards bodies, to launch campaigns

with regard to promotion and information, in order to encourage SMEs to make better use of

standards and feedback information concerning their content (SBA 2008).


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8. Promote the publication on-line of summaries of European standards free of charge and easily

accessible, clearly indicating the changes made to standards when they are revised. (Re-

examination of the SBA-2011 - area 3.3.1).


Principle 8: Innovation and qualification

1. Support the development of an electronic identity for companies that should permit on-line

invoicing and on-line communication with government departments (SBA 2008).

� Justification: this is a European initiative which is, in addition, supported by

Wallonia.

Principle 9: Environment

1. Propose incentives favouring eco-friendly companies and products (for example tax incentives

and priority for grants intended to finance sustainable companies), in accordance with community

supervision of state aid for the protection of the environment, and favouring recourse to the

simplified approach for environmental support for SMEs, as specified in the RGEC.

� Justification: this recommendation is included in two different

recommendations in the re-examination of the SBA which are examined at

point 2.9 (SBA recommendations 9.1-rev and 9.4-rev) .

Principle 10: Internationalisation

DIRECTION GÉNÉRALE OPÉRATIONNELLEDE L’ÉCONOMIE DE L’EMPLOI ET DE LA RECHERCHEPlace de la Wallonie, 1 B-5100 Namur (Jambes) Tél. : +32 (0) 81 33 39 60 -Fax : +32 (0) 81 33 37 44E-mail : [email protected]éro vert : 0800-1 1901Editeur responsable : Daniel Collet

WALLONIA PUBLIC SERVICE

DIRECTORATE-GENERAL FOR ECONOMY,

EMPLOYMENT AND RESEARCH

ECONOMIC POLICY DIRECTORATE

Place de la Wallonie, 1 - BATIMENT I

B-5100 Namur (Jambes)

Tél. : +32 (0) 81 33 39 60

Fax : +32 (0) 81 33 37 44

http://economie.wallonie.be

Annual report of the Walloon SME Envoy (2012)

News & Politics

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