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SME policy: Verheugen promises “to think small first”

Est. 1min

11-11-2005 (updated: 07-11-2012 )

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The Commission has integrated all its policy instruments for small and medium-sized enterprises (SMEs) into one new comprehensive strategy.

On 10 November Commissioner Verheugen presented his “new start for SME policy” in the form of a comprehensive framework for the various existing policy instruments directed to SMEs. The Commission proposes actions for SMEs in five areas:

  • promotion of entrepreneurship and skills: the Commission intends to spur member states to review their education and training policies;
  • improving the access of SMEs to markets, especially in the areas of public procurement and standardisation;
  • simplifying legislation for SMEs: longer transition periods, reduced fees, simpler reporting and in some cases exemptions from EU rules;
  • improving SMEs growth potential by providing more support for SME participation in 7th Research framework programme and help in the field of intellectual property rights;
  • strengthening dialogue and consultation: creation of an SME panel  to provide input for policies.

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Positions

All SME organisations welcomed the streamlining of EU action for SMEs in their first reactions. 

Paul Skehan, Deputy Secretary General of Eurochambres  commented: "“In recent years the Commission has produced a plethora of policy documents in this area but little has changed on the ground. It is important that this document becomes more than just yet another political statement."

Hans-Werner Müller, Secretary General of UEAPME, stressed that the new programme should be more than rhetoric. "... Merely restating policy priorities will be of limited importance," said Müller. 

UEAPME is also "concerned that the Commission has failed to understand" what it means to "think small first". “Commissioner Verheugen wants to promote and raise the profile of SMEs to stimulate entrepreneurship but proposing legislative exemptions for SMEs sends the wrong message. Exempting small businesses from important environmental or social legislation this would necessarily create a negative public impression of SMEs," stated UEAPME.

Background

Small and medium-sized enterprises (SMEs) represent 99% of all enterprises in the EU. They offer jobs to more than 75 million citizens. The legal definition of SMEs was laid down in Commission Recommendation 2003/361/EC  as being an enterprise with less than 250 employees and an annual turnover of less than 50 million euros.

The Commission committed itself to improving the business environment for these SMEs in its 2005 Partnership for Growth and Employment.

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