The Small Business Act for Europe, adopted by the European Commission this week, reflects the Commission’s political will to recognise the central role of SMEs in the EU economy
and for the first time puts into place a comprehensive policy framework for the EU and its Member States.
It not only aims to improve the overall approach to entrepreneurship, to irreversibly anchor the “Think Small first” principle in policy making from regulation to public service, but also to promote SMEs’ growth by helping them tackle the remaining problems which hamper their development.
The Small Business Act for Europe applies to all companies which are independent and have fewer than 250 employees: 98% of all European businesses, an overwhelming majority! Therefore, the Small Business Act for Europe puts SMEs at the forefront of EU policy, turning the vision of EU Heads of State and Government into reality: making the EU a world class environment for SMEs.
What's in it?
The European Small Business Act sets out 10 principles which should be adopted at the highest political level and concrete measures that will make life easier for small businesses. These principles shall guide the conception and implementation of policies at EU and Member State level:
1. Supporting existing entrepreneurs and fostering entrepreneurial mindsets
2. Second chance for honest entrepreneurs who have faced bankruptcy
3. Less administrative burden for SMEs
4. e-government and one-stop shops for SMEs
5. Public procurement and state aid: adapting policy tools to SME needs
6. Facilitate SMEs' access to finance
7. Enable SMEs to benefit more from the opportunities offered by the Single Market
8. Upgrading of skills in SMEs and all forms of innovation
9. Supporting SMEs to turn the environmental challenges into opportunities
10. Encourage SMEs to benefit from third-country markets' development
In addition to that, the European Commission has resolved to bring forward proposals on new legislation that are of particular importance for small businesses, such as a General Block Exemption regulation on state aids, a new statute for a European Private Company, a new directive on VAT that will enable Member States to apply reduced VAT rates for locally supplied services. An amendment to the directive on late payments is planned for 2009.
Günther Verheugen, European Commission Vice-President, responsible for Enterprise and Industry, said, “Now is the time, once and for all, to cement the needs of SMEs in the forefront of the EU's policy. The SBA brings the full weight of Europe behind SMEs – enlisting all the resources of Europe to help small business in their daily business and to clear the path for those that want to create more jobs and grow in Europe and beyond.”