1. Will « wider Europe » enlarge the perspectives for SMEs? Paul H. Dembinski

2. UNECE-2003Observatoire de la Finance - Paul H. Dembinski - www.obsfin.ch2 The SMEs are an extremely heterogeneous population within countries and across Europe: regarding size; regarding ownership structure; regarding the goals and visions; regarding the level of technology; regarding the share of exports/imports; regarding the subjective « business distance » to abroad. +Caution regarding any generalization!!!

3. UNECE-2003Observatoire de la Finance - Paul H. Dembinski - www.obsfin.ch3

4. UNECE-2003Observatoire de la Finance - Paul H. Dembinski - www.obsfin.ch4

5. UNECE-2003Observatoire de la Finance - Paul H. Dembinski - www.obsfin.ch5

6. UNECE-2003Observatoire de la Finance - Paul H. Dembinski - www.obsfin.ch6

7. UNECE-2003Observatoire de la Finance - Paul H. Dembinski - www.obsfin.ch7

8. UNECE-2003Observatoire de la Finance - Paul H. Dembinski - www.obsfin.ch8 Three weaknesses of independent SMEs regarding enlargement: A.lack of strategies, shorter perspectives and smaller means than large enterprises; B.transaction (CCC) costs higher for them in relative terms; C.reliance on ad hoc human resources and niches more than « markets ». D.Possible « aggression » on home and natural markets. Two strengths: A.alternative strategies : reliance on networks and private structures of trust – role of immigrants; B.new ventures matching the knowledge of both sides of Europe – « bridge enterprises ».

9. UNECE-2003Observatoire de la Finance - Paul H. Dembinski - www.obsfin.ch9 Is enlargement really an opportunity to SMEs? defensive more than offensive strategies; mutual adaptations – increased competition; extension of networks and gaining knowledge; SMEs trade the most in environments where their transaction costs are low; This does not apply to dependent SMEs – they are the forerunners of globalization