Speaking in Brussels at a meeting of EU industry ministers, she said tendering procedures must reflect the Union’s “think small first” approach to entrepreneurship.
Ireland is introducing a raft of pro-SME measures including cutting the cost of preparing tenders, breaking contracts into lots, encouraging partnerships between SMEs and encouraging large companies to sub-contract to smaller firms.
Coughlan, who is also Ireland's Tánaiste – or deputy prime minister – said European tenders should also follow suit.
"EU procurement rules must also reflect this approach, particularly if the Union wants Europe's critical SME sector to believe our commitment to the 'Think Small First' principle in our approach to policy making for the enterprise sector," she said.
Speaking to EurActiv after the Competitiveness Council, Coughlan said EU industry ministers had agreed to ask the European Investment Bank to further increase the funding available to SMEs and to make it easier for banks to apply for existing capital. The EIB has already pledged to make €30 million available over the next three years, but ministers want the bank to do more (EurActiv 13/02/09).
Coughlan added that governments are insisting that banks receiving public money across Europe should provide credit to help viable firms stay in business.
As part of a bank recapitalisation scheme in Ireland, major Irish banks are required to increase lending to SMEs by 10%. The Tánaiste denied that this would encourage banks to give out risky loans. "Banks have to make good, informed loans, based on solid business plans," she said, adding that a new group has been convened to monitor the flow of credit, particularly to SMEs, the tourism industry and agriculture in Ireland.
Coughlan also revealed that four companies have already availed of a new Enterprise Stabilisation Fund approved last month by EU Competition Commission Neelie Kroes (EurActiv 16/4/09). SMEs can benefit from up to €500,000 in working capital, although it is understood that the funds made available to date are closer to €300,000 per firm.
She said a range of pro-business schemes are being rolled out in Ireland, including an initiative which allows laid-off workers to claim unemployment benefit for up to two years when starting their own business.
