EU to nurture European appetite for success
Europe needs more entrepreneurs. So concluded the 370 participants at a forum in Helsinki recently, with the theme 'Rapid growth and competitiveness through technology'. In spite of extensive support for the creation of new firms, the forum described the rates of new firm creation and growth in Europe as 'dismal'. But, in a presentation on the contribution to economic growth made by intensive new firms, Mr Erkko Autio, a professor at the Helsinki University of Technology, described how high-tech 'gazelles'- companies that see their annual sales increase by 50% or more in three consecutive years - may have the potential to become 'engines of economic growth'. The take up of information and communications technologies (ICT) and, more generally, other technologies will play a major role in the survival of SMEs, agreed the forum participants. And it is particularly among SMEs that public policy has a key role in lowering the threshold for ICT take-up, they said. They identified several areas where policy tools could be used to encourage SMEs to use new technologies, such as in public administration, education and training, and networking. Such measures could be taken locally, regionally, nationally and jointly at the EU level, they said. Speaking on behalf of the Finnish Ministry of Trade and Industry, Deputy Director-General Veijo Kauppinen said 'IT is vital for European business. IT gives the edge above the first mover advantage and gives access to more customers' And opening the forum itself, Mr Erkki Tuomioja, Finnish Minister for Trade and Industry, said 'the international competitiveness of small firms cannot be exploited without a more extensive use of information and communications technologies'. IT, he said, helps companies to cut costs and increase productivity. It can also be used for business management and also opens new business opportunities. Some of the ideas for promoting the use of new technologies included providing SMEs with access to different governmental forms in an electronic format, and electronic public information services that could enhance SMEs' networking opportunities through Internet platforms. However, the participants noted, the USA sees more than double the European number of businesses starting up each year, reflecting, they believe, that society values and outlook for success opportunities greatly influence entrepreneurship. Policy measures should therefore encourage an entrepreneurial spirit in Europe to create a more fruitful ground for the start-up and expansion of new companies, they said. This would mean providing education and training on how to be an entrepreneur. Despite agreement on this point though, the general conclusion drawn from the event was that no matter how much governments assist SMEs and encourage them to take up ICT and other new technologies, it is up to the companies themselves to put their energies into intensifying competition.