Annexes to COM(2011)78 - ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Review of the "Small Business Act" for Europe - Main contents
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| dossier | COM(2011)78 - ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Review of the "Small Business Act" for Europe. |
|---|---|
| document | COM(2011)78  |
| date | February 23, 2011 |
The Commission will: present in 2011 a new strategy on the support of EU SMEs in markets outside the European Union and a strategy for globally competitive clusters and networks[40] with a specific focus on analysing the role played by them in improving SMEs’ competitiveness; address problems of SMEs with regard to the use of the EU Trade Defence Instruments (TDI) by increasing information on and assistance in using these instruments; pursue systematic efforts to eliminate non-tariff barriers in Free Trade Agreements and facilitate SMEs’ access to third country markets and help to enforce IPR, in line with the renewed trade policy. The Member States are invited to: provide support to SME network-building, in accordance with Community State Aid and competition rules; encourage SMEs to hire or buy in specialist expertise in order to help companies to grow, innovate and go international. |
- 3.3.3. Helping SMEs to contribute to a resource-efficient economy
The Commission has taken action to raise SMEs’ awareness of environmental and energy-related issues and has provided support to assist them in implementing legislation, assessing their environmental and energy performance and upgrading skills and qualifications. While these actions need to be reinforced, Europe 2020 shifted the focus to helping SMEs become key players in transitioning to resource-efficient growth. Whilst SMEs have some market incentives to optimise their resource use, in many cases the market signals are not easy to identify or interpret and SMEs face challenges of limited information, time and human and financial resources. To overcome this they need the availability of appropriate funding, including through regional business support programmes, timely information, and concrete assistance provided by business support organisations such as the chambers of commerce and consulting services. Developing incentives to encourage energy and resource audits can promote this transition.
Market-based instruments can also be used to encourage behaviour leading to resource efficiency, so benefiting job creation and economic growth.
The Commission will set up a specific framework to allow SMEs to take up the challenge of a resource-efficient economy and to reap the potential. In particular the Commission will: implement the new Energy Efficiency Plan, and move towards an Eco-innovation Action Plan that pays special attention to SMEs in promoting networking, low carbon technologies and resource efficient innovation; further develop the specific action on environmental and energy experts within the Enterprise Europe Network, whereby specific knowledge transfer on the state of the art methodologies and best practices will be transferred from regions that have advanced experience to those lagging behind; the Enterprise Europe Network will support SMEs in marketing products and services resulting from best practices, in particular low carbon technologies; SME Panels and the SME feedback database of the Enterprise Europe Network will be used to help to improve the quality of environmental legislation, including its implementation. |
The Member States are invited to: make better use of State Aid possibilities to support investment in the environment and energy fields; help SMEs acquire the necessary managerial and technical skills to adapt their business towards the low carbon, resource efficient economy, inter alia through the European Social Fund; provide regulatory incentives to SMEs registered with the Eco-Management and Audit Scheme (EMAS) and with ISO 14.000 and take measures to encourage micro and small enterprises to take advantage of simplified EMAS-type schemes, such as “EMAS-EASY”. |
- 3.4. Promoting entrepreneurship, job creation and inclusive growth
SMEs are the leading job creators in the EU but due to the economic crisis some 3.25 million jobs in SMEs have been lost.
In the current situation, the Member States must further simplify administrative requirements and the procedures to wind up a failing business. Moreover, about one third of business failures occur in the context of a business transfer. Therefore it is essential to improve the framework conditions for business transfers as over the next decade up to 500,000 businesses providing 2 million jobs will have to be transferred every year[41]. The Commission will present a set of policy recommendations in 2011 based on a study measuring the size of the bankruptcy and second chance problem.
As part of the Flagship initiative "An Agenda for New skills and jobs"[42], the Commission will assess future skills needs in micro and craft (-type) enterprises. Moreover, the "Youth on the Move" initiative[43] puts the accent on training to ensure that education systems truly provide the right skills to start and manage an SME.
Too few innovative EU SMEs grow into large, globally successful companies. The remaining barriers for entrepreneurs to "bring ideas to market" must be removed using a wide range of policy measures based on a broad concept of innovation in products and services which includes any change that speeds up and improves the way businesses conceive, develop, produce and market new products and services as set out in the Innovation Union Communication[44]. The Commission will explore the feasibility of monitoring the innovation performance of micro-enterprises, and propose an integrated framework for the development and promotion of e-skills for innovation and competitiveness, with special attention to small enterprises, start-ups and gazelles.
There are also SMEs which follow business models different from the traditional capital-based companies. This category, known as the “social economy”, includes non profit associations, foundations, co-operatives, mutual societies and similar legal forms. In order to respond to the particular needs of these undertakings, the Commission announced in the Single Market Act a number of actions that will provide a level playing field. These actions would address issues related to cooperatives, foundations and mutuals on the one hand and enterprises pursuing social objectives on the other.
The Commission will: create mentoring schemes for female entrepreneurs in at least 10 EU countries to provide advice and support with the start up, functioning and growth of their enterprises; identify best practices to support business transfers and launch a campaign to promote these practices; adopt, by the end of 2011, a Social Business Initiative focusing on enterprises pursuing social objectives. |
The Member States are invited to: implement the recommendation set out in the SBA Action Plan to reduce the start-up time for new enterprises to 3 working days and the cost to €100 by 2012; reduce the time needed to get licences and permits (including environmental permits) to take up and perform the specific activity of an enterprise to one month by the end of 2013; implement the recommendation set out in the SBA Action Plan to promote second chances for entrepreneurs by limiting the discharge time and debt settlement for an honest entrepreneur after bankruptcy to a maximum of three years by 2013; develop user-friendly and widely supported marketplaces and databases for transferrable businesses and provide training and support to increase the number of successful business transfers, including communication campaigns to raise awareness of the need for early preparation of business transfers. |
- 4. STRENTHENING THE GOVERNANCE OF THE SBA TO DELIVER TANGIBLE RESULTS
Strong governance is the key to successful implementation of the SBA.
To assess progress the Commission will collect information on Member States’ actions and issue annual reports on the competitiveness of the EU Member States, based on article 173 of the Lisbon Treaty. The monitoring of Member States’ competitiveness policies will provide the basis for peer reviews and exchange of good practices. The Commission will report to the Council on progress in implementing the SBA.
Stakeholders' involvement will be strengthened and SME stakeholders are invited to engage actively in the implementation of the SBA, including through provision of regular input on the implementation of the SBA actions.
The Commission will: set up an SBA Advisory Group composed of representatives of governments and business organizations to contribute to evaluating and reporting on the uptake of the SBA, to step up efforts to disseminate widely information on SME-policy actions and to promote the exchange of good practices. In this context, it will further develop the SME Performance Review, focused notably on the measures in the SBA Action Plan, in order to monitor and assess Member States’ performance in implementing the SBA on the basis of a wide range of success indicators; propose launching an annual SME Assembly closely linked to the SBA good practices conference in order to mobilise all relevant stakeholders in the implementation of the SBA and to foster dialogue between them. Member States and, where relevant, regional and local authorities, are invited to: set up, in coordination with representatives of business organizations, national and local SBA implementation plans backed up by a strong monitoring mechanism as well as a body in charge of coordinating SME issues across different administrations (“SME Envoy”), provided with adequate human resources and having a high standing within the administration itself. |
- 5. NEXT STEPS
TO ensure full implementation of the SBA and to respond to the current challenges SMEs are facing, the Commission is determined to continue to give priority to SMEs and to take into account their specific characteristics in its proposals and programmes. Improving the awareness and visibility of actions with national and regional policy makers and other stakeholders will be instrumental in ensuring that the SBA is implemented close to entrepreneurs. The SME Envoy will be mandated with the task of monitoring the progress of the Member States in the implementation of the SBA and will regularly inform the SME Assembly. The Member States are invited to fully implement the updated SBA. This invitation is equally relevant for the candidate countries and potential candidates.
ANNEX SBA Review Examples of some good practices implementing the 10 principles of the SBA
Please note that this Annex does not constitute a comprehensive assessment of Member States’ policies and should be regarded as a supplement to available European or national publications on SME policies.
Principle 1: Promoting entrepreneurship | Many Member States have introduced entrepreneurship programmes to foster the entrepreneurial attitudes and skills of young people and to make them aware of the possibility of starting a business, either by integrating entrepreneurship into school and university curricula or by setting up extra projects[45]. In some countries entrepreneurship education is the object of a coherent national strategy (Denmark, the Netherlands, Sweden and the UK), while other countries are moving in the same direction (Austria, Portugal). In Latvia, hundreds of students can submit business plans annually in the context of a competition. The Netherlands established a programme for young entrepreneurs to do networking in the USA. Some countries are involved in national or European programmes encouraging female entrepreneurship (Cyprus, Denmark, Greece, Finland, France, Germany, Iceland[46], Ireland, Italy, Norway[47], Poland, Slovakia and Sweden). Several Member States use considerable amounts provided by the Structural Funds for these programmes. |
Other good practice examples [48] Austria: A “Succession exchange” (launched in 2008) is facilitating the transfer of businesses. Support services and an electronic platform are provided for matchmaking entrepreneurs intending to transfer a firm and entrepreneurs looking to take over a firm. France: The “Auto-entrepreneur” statute (2009) allows any citizen (unemployed, employed, officials, pensioners) to easily set up a business and benefit from a number of tax exemptions during the 3 first years. More than 500.000 “auto-entrepreneurs” have been created between January 2009 and June 2010. Romania: The “Start” programme aims to develop entrepreneurial skills among young people (18-35 years old) and supporting start-ups. (Budget: EUR 21.2 million in 2009, including EUR 19 million for grants and 2.1 for financing the implementing agency). Sweden: The national programme to promote women’s entrepreneurship (2007-2010) provides support services and mentoring to start-ups run by women. A national network of women ambassadors was set up and in 2009 inspired the creation of the European Network of Female Entrepreneurship Ambassadors. |
Principle 2: Second chance | Only five Member States (Belgium, Finland, Ireland, Spain and the United Kingdom) comply with the recommendation[49] to complete all legal procedures to wind up a business in the case of non-fraudulent bankruptcy within a year. |
Other good practice examples [50] Belgium: Law on the continuity of enterprises (2009), providing a moratorium for companies facing financial difficulties in order to prevent a situation of insolvency and pre-bankruptcy. Estonia: The Reorganisation Act adopted in 2008 created an alternative to bankruptcy proceedings that enable companies to survive in case of temporary solvency problems. Latvia: a new Insolvency Law entered into force in 2010 making insolvency procedures simpler and faster, ensuring stabilisation of the financial sector and reducing the level of debt in the private sector. |
Principle 3: Think Small First | Only a few Member States (Belgium, Denmark, Finland, Luxembourg, Germany, Poland, Slovenia, Sweden and the United Kingdom) have integrated an SME Test into their national decision making approach. The Netherlands is an interesting example of successful reduction of administrative burden; the Dutch model[51] has been replicated in other countries. |
Other good practice examples Germany: 23 bureaucratic procedures were simplified in 2009, as part of the Third Act on reduction of bureaucratic barriers for SMEs[52]. Italy: In April 2010, the government adopted a recommendation to implement the SBA in Italy and set up a permanent working group gathering Ministries, Chambers, Business Organisations, Regions and an Italian member of the European Economic and Social Committee to monitor the implementation of the SBA and propose initiatives in this context. An annual report on the implementation of the SBA is drafted and published on the internet[53]. |
Principle 4: Responsive administrations | Good practice examples [54] Czech Republic: "The Data box" (2009) aims at simplifying data transfer and communication between businesses and administrations. Hungary: The administration provides one-stop shops for registering a company with simplified and electronic procedures (since 2008, electronic procedures are compulsory and the time required to set up a business has been reduced to one hour). Portugal: The "Simplex" programme aims at simplifying administrative processes, procedures and practices. Since 2009, public consultations are also made via a public blog. |
Principle 5: Access to public procurement | Only a few countries have started to promote the European Code of Best Practices in order to facilitate SMEs’ access to public procurement (Austria, France, Germany, Ireland, Poland, Portugal, Sweden and the United Kingdom). The most widespread SME friendly measures remain cutting tenders into lots and facilitating access to information through centralised websites, interactive web pages, and other e-procurement developments. |
Other good practice example [55] United Kingdom: The “Supply2.gov.uk” government web portal advertises public sector contracts and provides access to government opportunities. In 2008, the Office of Government Commerce published 12 recommendations to reduce the barriers SMEs face when competing for public sector contracts. |
Principle 6: Access to finance | Good practice examples[56] Most Member States have adopted policy measures to facilitate SMEs’ access to finance through public support to guarantee schemes (Belgium, Cyprus, Czech Republic, Estonia, France, Germany, Greece, Hungary, Italy, Latvia, Lithuania, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and the United Kingdom) or microcredit co-funding (Austria, Germany, Hungary, Ireland, Latvia, Lithuania, Slovakia and Sweden). Several Member States have also taken measures to increase riskcapital (Czech Republic, Denmark, Germany, Ireland, Luxembourg, Poland, Slovakia, Sweden and the United Kingdom). It is also worth mentioning that Belgium, Hungary, France, Ireland and more recently Finland have created a "credit ombudsman". A few Member States have taken action to tackle late payments, anticipating the recast of the late payments Directive and, in some cases, going beyond its scope (Belgium, France, Germany, Portugal and the United Kingdom). In 2010, Spain adopted a new law setting a 30-day term for public payments and a 60-day term for business-to-business payments. |
Principle 7: Single Market | 22 Member States have set up operational one-stop shops (points of single contact)[57]. They allow service providers to deal with their administrative formalities electronically when they want to do business across Europe. 15 of them provide a website in English in addition to their national language(s) (Belgium, Cyprus, Czech Republic, Denmark, Estonia, Finland, Germany, Greece, Hungary, Italy, Lithuania, the Netherlands, Portugal, Spain and Sweden). |
Principle 8: Skills and Innovation | Several Member States provide funding to young innovative companies through notably seed capital and venture capital (Austria, Belgium, Czech Republic, Finland, Germany, Greece, Hungary, Spain, Sweden and the United Kingdom). Others provide financial support to innovation centres or competitiveness poles linking Universities, research centres and businesses (Austria, Belgium, Czech Republic, Germany, France, Ireland, Italy and the United Kingdom). “Innovation vouchers”, allowing SMEs to buy innovative consulting services and know-how, have become widespread (Austria, Greece, Ireland, the Netherland, Portugal, Slovenia and the United Kingdom) [58]. |
Other good practice example Italy: In order to encourage the networking of innovative SMEs, a law was adopted in July 2010 regulating companies’ networks and providing those networks with fiscal, administrative and financial incentives[59]. |
Principle 9: Turning environmental challenges into opportunities | In order to help SMEs upgrade or replace equipment with energy efficient alternatives, several Member States provide energy efficiency funding through favourable loan conditions or direct subsidies (Belgium, Bulgaria, Cyprus, France, Germany Malta, Portugal, Slovenia and the United Kingdom). Some also support SMEs developing business opportunities on green markets (Bulgaria, Czech Republic, Germany and Slovakia). Member States also provide consulting services for SMEs to inform them and raise awareness of energy efficiency cost-saving and business opportunities (Austria, Belgium, Bulgaria, Germany, Hungary, Spain, Sweden and the United Kingdom).[60] |
Other good practice examples [61] Denmark: Through the Business Innovation Fund (EUR 100 million for 2010-2012) created in 2009, the Danish Ministry of Economic and Business Affairs supports business opportunities in green markets. The Netherlands: The Foundation for Knowledge and Innovation in Energy and Environmental Technology (set up in 2008) is a network of 160 companies, knowledge institutes and regional and local governments, co-financing projects delivering eco-products and technologies (e.g. smart solar applications, smart grids, etc.). |
Principle 10: Support to internationalisation | Several governments support the internationalisation of SMEs, e.g. by financial support for export promotion, market access strategies and participation in trade fairs (Cyprus, Czech Republic, Denmark, Estonia, France, Ireland, Italy, Latvia, Lithuania, Malta, the Netherlands, Poland, Portugal, the Slovak Republic, Spain, Sweden and the United Kingdom) Some of them (Denmark, Slovenia) focus on high-growth companies willing to internationalise; some others have established new export promotion agencies (Luxembourg) or new support programmes (Hungary). A mentoring scheme whereby big companies support the internationalisation of SMEs, is also being piloted (France)[62]. |
[1] Commission Communication ‘Think Small First’ - A ‘Small Business Act’ for Europe, COM(2008)394 final.
[2] http://ec.europa.eu/eu2020/index_en.htm
[3] COM(2011) 11 final.
[4] http://ec.europa.eu/enterprise/policies/sme/small-business-act/implementation/files/sba_imp_en.pdf
[5] Moreover, the Commission Green Paper on the future of VAT includes a specific section on SMEs.
[6] http://ec.europa.eu/enterprise/policies/single-market-goods/fighting-late-payments/index_en.htm
[7] SEC(2005)0433 final, Annex to COM(2005)121 final.
[8] Communication of the Commission: Temporary Union framework for State aid measures to support access to finance in the current financial and economic crisis, (OJ CC 6, 11.1.2011, p. 5).
[9] http://ec.europa.eu/enterprise/policies/sme/business-environment/public-procurement/index_en.htm
[10] http://ec.europa.eu/enterprise/policies/entrepreneurship/sme-week/
[11] http://ec.europa.eu/enterprise/policies/sme/promoting-entrepreneurship/women/ambassadors/index_en.htm
[12] The Europe 2020 flagship Initiative "Innovation Union", adopted by the Commission in October 2010.
[13] Communication ‘Regional Policy contributing to smart growth in Europe 2020‘, COM(2010)553.
[14] http://ec.europa.eu/agriculture/rurdev/leg/index_en.htm and http://ec.europa.eu/agriculture/fin/index_en.htm
[15] Examples of Member States’ actions to implement the SBA are included in the Annex.
[16] http://ec.europa.eu/enterprise/policies/sme/business-environment/start-up-procedures/index_en.htm
[17] Communication on Smart regulation in the EU, COM(2010) 543.
[18] COM(2011) 20.
[19] http://ec.europa.eu/internal_market/consultations/2010/green_paper_audit_en.htm
[20] http://ec.europa.eu/information_society/activities/egovernment/action_plan_2011_2015/index_en.htm
[21] http://www.ecb.int/stats/money/surveys/lend/html/index.en.html
[22] http://ec.europa.eu/social/main.jsp?langId=en&catId=836
[23] Joint Action to support Microfinance Institutions in Europe.
[24] http://ec.europa.eu/social/main.jsp?langId=en&catId=836 andhttp://ec.europa.eu/enterprise/policies/finance/borrowing/microcredit/index_en.htm
[25] Risk Sharing Financial Facility, http://www.eib.org/products/loans/special/rsff/index.htm?lang=en
[26] The total planned allocation to business support in Cohesion Policy in the current programming period 2007-2013 is around ¬ 55 billion of which ¬ 27 billion is explicitly targeted at SMEs only and ¬ 28 billion is not related to business size.
[27] Proposal for the Regulatis around € 55 billion of which € 27 billion is explicitly targeted at SMEs only and €28 billion is not related to business size.
[28] Proposal for the Regulation of the European Parliament and of the Council on the financial rules applicable to the annual budget of the Union COM(2010)815.
[29] Communication “Trade, Growht and World Affairs”, COM(2010)612, 9.11.2010
[30] http://ec.europa.eu/internal_market/smact/index_en.htm
[31] SEC(2005)433, Annex to COM(2010)135 final.
[32] See Green Paper on the modernisation of EU public procurement: http://ec.europa.eu/internal_market/publicprocurement/modernising_rules/consultations/index_en.htm
[33] http://ec.europa.eu/internal_market/payments/sepa/
[34] Directive 2006/114/EC
[35] Information about the origin or place of provenance of goods is covered by two legislative initiatives currently under discussion: the proposal for a Regulation concerning the provision of food information to consumers and the “Quality Package”, COM(2010)738.
[36] Proposal for a Council Regulation on the indication of the country of origin of certain products imported from third countries (COM(2005)661) and Proposal for a Regulation of the European Parliament and of the Council on textile names and related labelling of textile products (COM(2009)31).
[37] http://ec.europa.eu/enterprise/policies/sme/market-access/internationalisation/index_en.htm
[38] Brazil, Russia, India and China.
[39] A study commissioned by the Commission identifies specific problems encountered by various types of SMEs when involved in Trade Defence Investigations, including lack of transparency and difficulties in accessing information and proposes possible solutions to them. The Member States are currently discussing the findings of this study in order to decide on follow-up actions. For further information, please see DG Trade website: http://ec.europa.eu/trade/tackling-unfair-trade/tradedefence/information-for-business/sme/
[40] http://ec.europa.eu/trade/creating-opportunities/trade-topics/market-access/export-from-eu/
[41] Commission Communication "An Integrated Industrial Policy for the Globalization Era Putting Competitiveness and Sustainability at Centre Stage", COM (2010) 614.
[42] http://ec.europa.eu/enterprise/policies/sme/documents/transfers/index_en.htm
[43] COM(2010) 682 final.
[44] COM(2010) 477 final.
[45] http://ec.europa.eu/research/innovation-union/index_en.cfm
[46] http://ec.europa.eu/enterprise/policies/industrial-competitiveness/industrial-policy/files/member_states_competitiveness_performance_and_policies_en.pdf
[47] Iceland and Norway are among the non EU member States that implement the SBA and benefit from the Competitiveness and Innovation Programme.
[48] See footnote 2.
[49] http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/performance-review/index_en.htm (see SBA country fact sheets 2009, section 5 on Good Practice.
[50] http://ec.europa.eu/enterprise/policies/sme/files/docs/sba/sba_action_plan_en.pdf
[51] http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/performance-review/index_en.htm (see SBA country fact sheets 2009, section 5 on Good Practice).
[52] http://ec.europa.eu/enterprise/policies/better-regulation/administrative-burdens/action-programme/index_en.htm#h2-5 & andhttp://english.minlnv.nl/portal/page?_pageid=116,4093799&_dad=portal&_schema=PORTAL
[53] http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/performance-review/index_en.htm (see SBA country fact sheets 2009, section 5 on Good Practice.
[54] http://www.sviluppoeconomico.gov.it/pdf_upload/documenti/Rapportosba2010DEF.pdf andhttp://www.sviluppoeconomico.gov.it/primopiano/dettaglio_primopiano.php?sezione=primopiano&tema_dir=tema2&id_primopiano=718
[55] http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/performance-review/index_en.htm (see SBA country fact sheets 2009, section 5 on Good Practice.
[56] http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/performance-review/index_en.htm (see SBA country fact sheets 2009, section 5 on Good Practice.
[57] http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/performance-review/index_en.htm (see SBA country fact sheets 2009, section 5 on Good Practice.
[58] http://ec.europa.eu/internal_market/eu-go/
[59] "SMEs, Entrepreneurship and Innovation" OECD Studies on SMEs and Entrepreneurship, 2010
[60] http://www.urp.it/allegati/Legge_2010_122.pdf (Article 42).
[61] http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/performance-review/index_en.htm (see SBA country fact sheets 2009, section 5 on Good Practice.
[62] Source: SBA: Database of good practices http://ec.europa.eu/enterprise/policies/sme/best-practices/database/SBA/index.cfm?fuseaction=welcome.detail
[63] http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/performance-review/index_en.htm (see SBA country fact sheets 2009, section 5 on Good Practice.