Commission proposes comprehensive new SME policy
The European Commission has tabled proposals for a new and comprehensive policy for small and medium sized enterprises (SMEs), streamlining EU instruments for small businesses and creating a genuine partnership between the EU and Member States in this area. SMEs are companies with less than 250 employees, and in Europe they account for 99 per cent of all enterprises, providing some 75 million jobs. This makes them a vital part of Europe's economy, and by providing SMEs with a coherent policy framework the Commission hopes to boost their contribution to the Lisbon partnership for Growth and Jobs. This was confirmed by Commission Vice President for Enterprise and Industry, Günter Verheugen, who said: 'Small and medium sized enterprises play a key role in delivering more growth and jobs in the European Union. We must help them by creating the right conditions to thrive and by promoting a culture so that more people start up their own companies.' The new policy framework structures actions around five different themes: promoting entrepreneurship and skills, improving SMEs' access to markets, cutting red tape, improving SMEs growth potential, and strengthening dialogue and consultation with SME stakeholders. Actions will be supported through Community programmes for enterprise, such as the Multiannual Programme for Enterprise and Entrepreneurship, and the new Competitiveness and Innovation Framework Programme (CIP). As well as these EU programmes, however, the communication stresses that as SMEs often look first to local and regional initiatives for support, therefore other forms of funding must also be used, such as cohesion funding. Indeed, the Structural Funds provided around 21 billion euro to SMEs between 2000 and 2006, and the current strategic guidelines for cohesion policy aim to strengthen this commitment. As for the actions themselves, under the heading 'improving SMEs' growth potential', the Commission's stated aim is to 'address persistent and well-identified market gaps that limit SMEs' access to finance, research, innovation and information and communication technologies (ICT).' This will be achieved by increasing financial support to SMEs under CIP, providing more support to small companies in the field of intellectual property rights, and simplifying rules and procedures to encourage SME participation in the EU's research framework programmes. To promote entrepreneurship and skills, the new policy framework foresees initiatives designed to tackle the negative effects of business failure, promote lifelong learning for people working within SMEs, and tackle areas where the needs of entrepreneurs, especially women, younger people, older workers or those from ethnic minorities, are not being sufficiently addressed. According to the Commission, the new communication constitutes a more pragmatic, comprehensive and inclusive EU policy for SMEs - one that will change the way small companies and entrepreneurs are considered in policy making at EU and national level. As the communication itself concludes, however, implementing it will require the commitment of all relevant public and private actors at regional, national and European level.