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EU policies 'failing to produce results' for SMEs

Published 06 May 2009 - Updated 23 December 2011
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A new survey reveals that the range of new policy instruments put in place to boost small and medium-sized enterprises are not having a concrete impact on SMEs.

Research by UEAPME, the European craft and SME employers' organisation, assessed how well the EU institutions and member states are implementing the 'Think Small First' principle, which is enshrined in the Small Business Act (EurActiv 10/2/09). 

According to the SME lobby group, the European Parliament fares relatively well on business support measures but received a low rating for its recent legislation, while the European Commission ranks worst in administration. 

The survey is critical of a range of amendments by MEPs which small firms consider to be "SME-unfriendly" in the areas of consumers' and workers' rights and environmental protection. The Commission comes in for criticism due to the level of red tape involved in European funding programmes. 

Member states fare better in terms of support for internationalisation and innovation, as well as on state aid. However, UEAPME says that much remains to be done to secure access to finance and public tenders, and to grant genuine entrepreneurs a second chance when they fail.

"Our first 'Think Small Test' and 'SBA Implementation Scoreboard' clearly show that measures have been taken during the last year, but their impact on the ground is limited. On the contrary, in some areas such as administration, the situation is now relatively worse. This proves that the better regulation agenda has not reached small businesses yet," said Gerhard Huemer, director of UEAPME's study unit. 

He said policymakers must work more closely with SMEs when crafting and implementing new measures. 

"SMEs cannot afford the gap between actions and effects that we have measured, especially not during the present downturn," said Huemer. 

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