SME needs must inform policy-making at an earlier stage, says Commission envoy
The needs and concerns of SMEs (small and medium sized enterprises) must inform EU policy-making at a much earlier stage, according to the European Commission's first SME envoy, Timo Summa. Mr Summa, Director in charge of the promotion of entrepreneurship and SMEs at the Commission's Enterprise DG, was nominated SME Envoy in December 2001 to represent the interests of small businesses within the Commission. His appointment is part of a wider EU drive to boost the competitiveness and profitability of Europe's 19 million SMEs and to help meet the challenge set by the 2000 Lisbon Council, of making the EU the most dynamic knowledge-based economy in the world by 2010. In an interview with CORDIS News, Mr Summa said his role was created to improve the visibility of the Commission and encourage it to be more proactive towards SMEs and SME organisations. A key part of his new role, he explained, is to establish direct contact with SMEs and SME organisations and to ensure that their concerns are taken on board in a constructive way in the origination and development of policy across the whole range of Commission services. In the past, he said, the needs of SMEs have often been brought in at such a late stage in the policy making process that their input can lead to nothing more than a 'fine-tuning' of policy mechanisms. Mr Summa said it is too early to tell what concrete results his work will have on the formulation of policy, but emphasised that 'the idea is that whatever we do, we consult the interlocutors and the stakeholders in a systematic way, not only in advance but well in advance.' Mr Summa said that in addition to his work with Member State governments and national and international business organisations, he has visited between 60 and 70 SMEs throughout the EU in the last few months. This direct contact with businesses is key to understanding their point of view, says Mr Summa. 'You shouldn't have too many filters,' he said. An important part of his work is to ensure that feedback is gathered and reported in a more systematic way, Mr Summa explained, so that it feeds into policy making more effectively. He said the Commission is increasingly working with Euro Info Centres, of which there are 300 throughout EU Candidate and Member States, as well as business organisations and Member States in order to garner input and feedback. He added that this is a two-way process, as SME organisations often need to be encouraged to prioritise their needs. 'We also have to be a bit pushy and ask them to clarify the focus and to give clear priorities,' he said. 'It's not only that they ask us to do something, to deliver, it's also the other way around.' Mr Summa explained that his background in private enterprise and the venture capital business has brought him into contact with high-tech and biotechnology companies and helped him to understand the 'fast moving and demanding' world they inhabit. 'You really have to be ready to take a risk,' he said, adding that success often lies in the combination of innovation, research and development and clever financing and management. Mr Summa added, however, that while new technology companies are 'politically sexy', it is more traditional companies, such as those in the service industry, which form the backbone of the European SME scene. He said these businesses are often healthy and profitable, and can afford to invest in innovative activities such as research and market development. But work remains to be done to change Europeans' attitude towards entrepreneurs, noted Mr Summa. 'In Europe you are still very much marked if you fail and in the US they take a positive view - it's more experience and it's easier to succeed next time.' He said that while the Commission is working with Member States in areas such as bankruptcy law to improve the regulatory environment for entrepreneurs, attitudes may take some time to catch up. Mr Summa also welcomed European Parliament's emphasis on increasing SME involvement the next Framework programme for research, FP6. Many MEPs run or own their own business in addition to their parliamentary duties, he said, and are close to the issues which affect SMEs. Mr Summa also said he expected a new Commission definition of SMEs to be issued in the near future. The definition will help to clear up fuzzy areas such as the status of franchise shops, he said.