Convergence towards the "Small Business Act"

EUROMED Invest Academy Belgrade, 24-26 March 2015

Christos Kyriatzis, Deputy Head of Unit, International Affairs and Missions for Growth, Directorate-General for Internal Market, Industry, Entrepreneurship and SMES, European Commission

Importance of SMEs in the global economy

• SMEs are the backbone of the European economy accounting for around 99% of all Enterprises.

• Contribute to economic development, growth and employment.

• 66.8% of total employment and 58.1% of the value added

• Adoption of the Small Business Act for Europe in June 2008

The EU SME Policy

• Guiding principle : Subsidiarity -> SME policy is – first of all- national business.

• Role of EU focussed on -> areas where joint EU action may yield

value-added

-> issues where the EU as such has the competency to improve the situation of SMEs

The EU’s SME Policy

SME Policy

Competitionpolicy

Internal Market

Tradepolicy

Regional policy

SocialPolicy

EnvironmentalPolicy

Fiscalpolicy

Consumer & healthprotection policies

R&DEducation

Policy

What is the Small Business Act ?

• The SBA is a comprehensive policy framework recognising the central role of SMEs.

• Adopted in June 2008

• Main objective: create a common framework for SME initiatives and implement the “Think Small First” principle

• 10 principles and a set of policy actions to implement them

• SBA Review in 2011 – Public Consultation in 2014

10 principles of the Small Business Act

1. Entrepreneurial learning and women entrepreneurship2. Bankruptcy and second chance3. Regulatory Framework for SME policy making4. Operational Environment5. SME Support Services and Public Procurement6. Access to Finance for SMEs7. Standards and technical regulations8. Enterprise skills and Innovation9. SMEs in a Green Economy10. Internationalisation of SMEs

Enhanced governance:the network of the SME Envoys

• European level: the EU SME Envoy listens to SMEs and their representatives and acts as internal “watchdog” for EU policy making.

• National level: Member States have appointed their national SME Envoys (regional Envoys can be nominated)

• National coordinators in the WB/Turkey and Mediterranean countries

Enhanced governance: give SMEs a greater role

• SMEs will have their say with the SME Assembly: representatives of small businesses from all over the 28 Member States will gather yearly

• European SMEs representatives are part of the Network of the SME Envoys

SBA Assessment Process

• The SBA Assessment is a joint process implemented by the European Commission, OECD, EBRD and the European Training Foundation (ETF). SEECEL is now also a partner.

• Based on the SME policy Index• Each Partner country has nominated a SBA

national coordinator who has a crucial role.

A Global Process

• The Process covers several regions:

• The Western Balkans and Turkey• The Mediterranean Countries• The Eastern Partnership countries

SBA Process in the Mediterranean countries

• First process based on the former Charter for small enterprises in 2008

• Second assessment conducted in 2013 and published in 2014

• Structured around the Small Business Act• Follow-up : Training days on topics identified in

the recommendations

SMEs and the South Mediterranean region

• Average number of SMEs per 1000 people in MED area is 23 but SMEs have an important development potential in the Region

• 82% are micro firms (1-9 employees)• 33% of total employment• Mostly active in trade, services and manufacturing• Adoption of Euro-Mediterranean Charter for Enterprise

(2004) and alignment with the Small Business Act (SBA) for Europe (since 2014) will help SME development in MED countries

Implementation of the SBA by the candidate countries

• Adoption of the EU acquis is an obligation in the enlargement process

• Alignment to European SME policies covered by Chapter 20 "Enterprise and Industrial policy"

• Candidate countries have already developed measures in line with those existing in the EU.

SBA Process in Serbia

• The fourth cycle for the Western Balkans/Turkey launched on 1st October 2014 in Naples.

• A launching event for Serbia took place in Belgrade on 17 December 2014 to present the revised assessment methodology.

• The National Stakeholders meeting to discuss the results will take place 3 June 2015 in Belgrade.

2014-2016 process

• Preparation of a revised methodology.• Dissemination of the questionnaires to the governments

and the independent consultants.• Evaluation of the questionnaires by partners and follow up

with countries.• National stakeholders meetings to validate first results. • Regional meeting with SBA coordinators to agree on the

final scores in October 2015.• Launching event and publication of the report in Spring

2016.

What are the expected results

• Support governments in setting targets on SME policy developments

• Define strategic priorities to further improve the business environment.

• Sharing good practices and networking• Example of "good practice" in MED countries :

training days :• Regional training seminar on SBA governance

Another EU/OECD Common Project with the WB : the Competitiveness Outlook

• To foster competitiveness in the region• Monitor the implementation of the SEE2020• To feed into Economic Report programmes, new

exercise for the countries similar to the European Semester for the MS

The role of the Business associations

• The private sector is fully associated in the process.

• Encourage participation in the stakeholders meeting which will take place on 3 June

• Other actions led by DG GROWTH :• Missions for Growth• Milan Expo 2015

Missions for Growth

• Missions support SMEs’ internationalisation, as SMEs are the first beneficiaries of the Missions.

• 1000 participants representing more than 650 companies and business associations from 27 Member States.

• Missions in Morocco, Tunisia, Egypt and Israël

Universal Expo Milan 2015 - Euro-Mediterranean days

• DG GROW is organising several events focusing on EU–Third Countries

• EUROMED days on 6/7 May – 3 sessions

• 1. Political: Benefit of Euro-Mediterranean industrial cooperation

• 2. Technical: Business opportunities in both the EU and South-Mediterranean countries

• 3. Business-to-Business meetings

THANK YOU FOR YOUR ATTENTION !

DG GROW Website : http://ec.europa.eu/growth/index_en.htm