EU SME policy The “Small Business Act” for
Europe and its Review
Maria Pia Vigliarolo – DG Enterprise and Industry – Small Business Act, SME Policies
What is an SME ?
http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/sme-definition/index_en.htm
SMEs - EU’s growth engine
Share of private employment
29%
21%
17%
33%
Micro Small Medium Large
67.4% of private jobs
SME employment share0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
ELPTIT
ESEELV
BGLTHUPL
NOCZIE
NLBEATDK
SISEDEFRRO
FISKUK
SMEs - EU’s growth engine
58% of total business turnover
SMEs Large 0
10
20
30
40
50
60
70
80
90
Difficulties faced by SMEs
• Business and regulatory environment • Access to finance• Availability of skills• Access to markets• Access to research and innovation• Networking among companies
EU’s SME Policy
SME Policy
Competitionpolicy
Internal Market
Tradepolicy
Regional policy
SocialPolicy
EnvironmentalPolicy
Fiscalpolicy
Consumer & healthprotection policies
R&DEducation
Policy
Working tools
• Cooperation and partnership with the Member States (exchange of good practices)
• Regular dialogue and consultation with SMEs and SME business organisations (SME Envoy)
• Cooperation with Commission to implement the “Think Small First” principle
Working tools
• Policy development: Small Business Act for Europe (SBA) and SBA Review
• EU Support Programmes, including• Competitiveness and Innovation Programme (CIP)• SME dimension in other programmes (FP7, structural
funds)
The “Small Business Act”
Adopted in June 2008
Main objective: create a common framework for SME initiatives and implement the “Think Small First” principle
10 principles and a set of policy actions to implement them
About 90 policy initiatives and 5 legislative acts (national and European level)
The 10 SBA principles
1. Support entrepreneurship2. Give a 2nd chance (failure)3. “Think Small First” (reduce burdens)4. Public administration responsive to SME needs (e-
government)5. Improve access to public procurement & use of state aid6. Facilitate access to finance7. Benefit from Single Market opportunities8. Access to skills and innovation9. Eco-innovation/environment opportunities10. Access to external markets
Why a Review of the SBA?
• Good progress since the adoption of the SBA but: • Need to continue improving SME business
environment and to focus on new challenges (crisis)
• Need for stronger governance to ensure the implementation of the SBA at European and national level
• Three priority areas: • smart regulation• access to finance• access to markets
• Entrepreneurship
• Enhanced governance
• 48 new actions
The SBA Review (2011)
Enhanced governance:the network of the SME Envoys
• European level: the EU SME Envoy listens to SMEs and their representatives and act as internal “watchdog” for EU policy making.
• National level: Member States have appointed their national SME Envoys (regional Envoys can be nominated)
Enhanced governance: give SMEs a greater role
• SMEs will have their say with the SME Assembly: representatives of small businesses from all over the 27 Member States will gather yearly
• European SMEs representatives are part of the Network of the SME Envoys
What do we propose in the Review?Smart regulation
Better start-up conditionsGoal: start a business in 3 days for €100
What do we propose in the Review?
Smart regulation Simplification of administrative rules
• SME Test for all proposals for new legislation (minimise burden for micro-companies)
• Only once principle – no need to resubmit documents that are already with administration
What do we propose in the Review?
Better and easier access to capital
• SME access to capital – guarantees and venture capital
• Simplify rules for greater access of SMEs to EU funds
• Greater and easier access for SMEs to internet data on financing opportunities and in their own language
What do we propose in the Review?
Better and easier access to markets
• Facing unfair commercial practice
Improve access to public procurement for SMEs: Code of good practices
• A new strategy for EU SMEs going
international
What do we propose in the Review?
Promoting entrepreneurship
• Mentoring schemes for women entrepreneurs
• Promote second chance
• Best practices in business transfer
COSMEProgramme for the Competitiveness
of Enterprises and SMEs
Strengthening the competitiveness and sustainability of European enterprises
Encouraging entrepreneurship and promoting SMEs
Main target audience: SMEs, Entrepreneurs, Business Support Organisations, regional and national Administrations
Foreseen budget: € 2.5 billion from 2014 to 2020
Specific actions to improve access to finance
• Equity Facility for Growth
• Loan Guarantee Facility
Specific actions to improve access to markets
• Enterprise Europe Network• 600 business support organisations in 50 countries• information and qualified services for SMEs at
their doorstep, including information on access to EU funding programmes
• help in finding international business partners• making full use of EU-wide business support,
technology transfer services• engaging European SMEs in shaping EU legislation
Supporting SME activities outside the EU
• 90 % of world growth outside Europe by 2012 (OECD)
• Only 13 % of EU SMEs now active outside EU
• European added value consists in:
• Providing better overview, more coherence, visibility / transparency : we are already starting a « mapping » exercise and the creation of a dedicated portal
• Promoting clusters and networks for SME internationalisation
Complementarity: avoiding duplication with measures already taken by MS
Specific actions to improve framework conditions
• Horizontal approach: affecting all sectors, including manufacturing and services
• Implementation of the “Think Small First Principle” and the “Small Business Act”
• Adjustment to a low-carbon, climate-resilient, energy and resource efficient economy
• Promoting smart use of new technologies and the integration of SME in global industrial value chains
Specific actions to promote entrepreneurship
European Enterprise Promotion Awards
Erasmus for entrepreneurs
Female entrepreneurship (ambassadors and mentoring schemes)
European SME week
Transfer of enterprises
Next steps
Ongoing: Parliament and Council negotiations on the basis of the Commission proposal
Ongoing: Parliament and Council negotiations on EU budget 2014-2020 (including overall budget for COSME)
Mid 2013: Adoption of legislative acts by Parliament and Council on COSME
1/1/2014: start of COSME
Where to find information
• SBA and SBA Reviewhttp://ec.europa.eu/enterprise/policies/sme/small-business-act/index_en.htm
• European Small Business Portalhttp://ec.europa.eu/small-business/index_en.htm
• SME Performance Reviewhttp://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/performance-review/index_en.htm
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