The SBA, which was put forward as communication and not as a binding legislation, as demanded by businesses, consists of various different elements.
At the core are 10 common guiding principles, such as creating a more entrepreneur-friendly environment or improving SME's access to finance and, which should be implemented through policy measures both at the EU and member state level.
These principles were supplemented by the following four legislative proposals:
European Private Company Statute
The regulation, strongly demanded by industry (EurActiv 15/05/07), aims at simplifying the legal framework for setting up and running businesses across EU borders.
It gives entrepreneurs the option of forming a European Private Company, also referred to by its Latin name 'Societas Privata Europaea' (SPE). The minimum capital requirement for an SPE is set at €1.
France, which takes over the EU Presidency in July, lobbied hard to persuade the reluctant Commission of proposing the statute.
Late payment directive
This directive is foreseen for 2009 to help ensure that SMEs are paid within 30 days. This was a key demand for SMEs, as they run a much higher risk of insolvency than larger businesses, with many of them forced to close down within the first two years due to lack of financial means.
A new exemption regulation on state aids
This measure aims to simplify procedures and reduce costs and should make it easier for SMEs to benefit from aid for training, research and development and environmental protection, foreseeing an increase of the aid volume from 7.5% for medium-sized businesses and from 15% to 20% for small enterprises.
Directive on reduced VAT rates
This directive allows member states to apply reduced VAT rates principally for locally supplied services, include labour intensive work, which is mainly provided by micro enterprises.




