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 67.4% of private jobs

SMEs - EU’s growth engine 58% of total business turnover

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 Internal Market Trade policy Regional Competition policy SME Policy Social Policy R&D Education Policy Consumer & health protection policies Fiscal policy Environmental 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 entrepreneurship 2. 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 aid 6. Facilitate access to finance 7. Benefit from Single Market opportunities 8. Access to skills and innovation 9. Eco-innovation/environment opportunities 10. 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

The SBA Review (2011) Three priority areas: Entrepreneurship smart regulation access to finance access to markets Entrepreneurship Enhanced governance 48 new actions

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 conditions Goal: 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

COSME Programme 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 Also: EU-Japan Centre for Industrial Cooperation Business environment benchmarking with third countries (Western Balkans, Euromed, Eastern Partnership)

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 Specific target groups: young, old and female entrepreneurs Women only account for 34.4% of the self-employed in Europe

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 Review http://ec.europa.eu/enterprise/policies/sme/small-business-act/index_en.htm European Small Business Portal http://ec.europa.eu/small-business/index_en.htm SME Performance Review http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/performance-review/index_en.htm