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I COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 26.10.1995 
COM(95) 502 final 
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*3ah* COMMUNICATION FROM THE COMMISSION 
THE CRAFT INDUSTRY AND SMALL ENTERPRISES, 
KEYS TO GROWTH AND EMPLOYMENT IN EUROPE 
Results of the Second European Conference 
on the Craft Industry and Small Enterprises 
in Berlin, 26 and 27 September 1994, 
follow-up measures and 
recommendations to the Member States 

In its Resolution of 10 October 1994, the Council called upon the Commission to 
analyse the results of the Second European Conference on the Craft Industry and Small 
Enterprises, held in Berlin on 26 and 27 September 1994, and to present to it a report, 
before the end of 1995, on the follow-up which it intended to give to these conclusions 
and any initiatives which could be recommended to the Member States. 
By means of this report entitled "The Craft Industry and Small Enterprises, Keys to 
Growth and Employment in Europe" the Commission follows up to the Council's 
request and intends to present a basis for discussion from which a certain number of 
priority actions should be taken. Two annexes are included to this political report: 
annex 1), which comprises the requests of the participants of the Berlin 
Conference to the Commission, other institutions and to the Member States; 
annex 2), in which the Commission, following the Council's request and in 
response to participants' requests, presents a draft of first measures it has taken 
since the Berlin Conference. 
A. INTRODUCTION 
The Commission wishes to respond to the desire for action on the part of the Member 
States and the European Union, with a view to combining efforts to improve the 
development and competitiveness of European enterprises, in particular the craft 
industry and small enterprises, so that they can meet the increasing challenge of 
creating jobs and reducing unemployment. 
There are currently more than sixteen million craft enterprises and small enterprises in 
the European Union, accounting for more than 40 million jobs. Moreover, these 
enterprises play a major role in creating jobs, since they are directly responsible for 
sixty to eighty per cent of the jobs created in the last five years. 
However, these enterprises can create jobs only if the conditions for their 
competitiveness are ensured. In launching a wide-ranging debate with the craft industry 
and small enterprises sector as part of the preparation for the Berlin conference, as well 
as during the conference, the Commission thus tried to identify the challenges facing 
the craft industry and small enterprises, to analyse possible responses to these concerns 
and to establish several priority measures and recommendations. 
B. CONTEXT OF THE CONFERENCE 
I. The challenges facing the craft industry and small enterprises 
Craftsmen and the heads of small industrial and service enterprises are faced with a 
multitude of external and internal challenges. 
a) At the external level, they have to face increasing competition from: 
the entry of large concerns into market niches traditionally reserved for 
small enterprises, as a result of flexible automation of production; 
the change of balance due to new forms of trade and distribution 
(creation of big commercial projects of the supermarket and hypermarket 
type where one job created destroys one or more jobs in the crafts or 
retail sectors); 
the emergence of new forms of living one's life and new consumption 
patterns (spread of the DIY movement); 
the scale of the informal sector and of undeclared working. 
What is more, the craft industry and small enterprises suffer from considerable 
disadvantages in the area of competition by not receiving information in time 
and often not having enough resources to: 
comply with European standards and certification, which are replacing 
national regulation more and more; 
introduce new quality certification procedures increasingly demanded by 
public and private customers. 
comply with legislation on environmental protection and environmental 
management; 
The high cost of labour forces them to turn increasingly to new technologies, 
while rapid technical progress in the field of materials, increasingly burdensome 
procedures and the growing amount of information put them on the defensive. 
Finally, the globalisation of world markets is leading to an increase in 
competition in the production sector, especially in the sub-contracting sector 
which belongs to the crafts sector, and, to a lesser extent, in certain services 
industries who work for the most part on a local and regional level (reparations, 
after sales services, personnel services, cleaning, etc.). 
b) At the internal level, the heads of craft and small enterprises are having to face 
several challenges, linked in part to the organization of their companies: limited 
resources; social, administrative and tax burdens; limited knowledge of strategic 
management and business organisation; financing; problems with recruitment 
of qualified personnel; vocational training for staff. 
Resulting form the accumulation of these challenges and in the face of the 
growing complexity of the European economy in legal and technological terms, 
craftsmen and small enterprises should therefore be able to turn for effective 
help to operational intermediaries such as professional associations, chambers of 
crafts, and accompanying organi2ations who, with their advice, can directly 
assist a large number of enterprises. 
However, these intermediaries often receive too little information on 
Community policies and are not sufficiently involved in the work of the 
consultative committees at the European level; they therefore suffer from major 
drawbacks in terms of knowledge of the process of European integration. 
n. The Berlin Conference 
The Second European Conference on the Craft Industry and Small Enterprises was 
organised in Berlin on 26 and 27 September 1994 by the European Commission in 
close collaboration with the German Presidency of the Council and in liaison with 
the European organisations representing the craft industry and small enterprises, 
including the Chamber of Crafts of Berlin. The theme was "Crafts and Small 
Enterprises, Keys to Growth, Employment, and Innovation." The conference was 
attended by 1300 representatives of the craft industry and small enterprises from 
31 countries, in the presence of several ministers and senior officials of the 
Member States of the European Union and the other countries of the European 
Economic Area. 
This conference was a major new step forward in taking account of the craft 
industry on the European, national and regional planes. 
In the general opinion of the participants, the Berlin conference was a major 
success for three reasons: 
1. The first is the progress accomplished since the first European Conference on 
the Craft Industry and Small Enterprises in Avignon in October 1990 by the 
national and European organisations representing the craft industry and small 
enterprises sector. Thanks to the awareness of their increasing political and 
economic importance at Community level, these organisations never worked 
together as much as in the two years leading up to the Berlin conference. 
Despite the differences in the definition and organisation of the craft industry 
and small enterprises1, the way in which work proceeded at the Berlin 
conference shows that these differences are understood by the representatives of 
the craft industry and small industrial and service enterprises as being a source 
of riches in Europe. However, regardless of the traditions and culture of family 
enterprises, they are having to face new challenges for which they are often 
hardly prepared, or not prepared at all. Faced with this new uncertainty, the 
representatives of small enterprises are thus striving to intensify cooperation at 
European level with a view to strengthening their representation. 
lDue to fundamental differences between the situation of Member States, and without a common 
definition, the notion of craft industry and small enterprises the document is referring to also includes the 
small businesses from the industry and services sectors. This refers mainly to some activities in the food 
and health sector, enterprises involved in building, subcontracting and art activities. This latter activity is 
the activity most common to the largest number of Member States. 
2. The second reason is the quality of the preparatory work. In order to ensure the 
participation of the representatives of the craft industry and small enterprises in 
the preparations for the Berlin conference, the Commission supported the 
organisation of 12 preparatory workshops in 1993 and 1994 - one for each 
Member State. These were attended by more than 2000 representatives of 
public and private bodies, government representatives, heads of enterprises, 
experts and consultants from the craft industry and small enterprises sector. 
The topics of the preparatory workshops reflect the hope, but also the concerns, 
of craftsmen and small enterprises vis-à-vis the process of European integration 
and market globalisation, viz.: 
- Training in the craft industry and qualification of heads, managers and 
creators of businesses, Luxembourg, November 1993; 
Integration of the craft industry into the internal market, Rome, December 
1993; 
The craft industry - a partner for environmental protection in Europe, 
Dûsseldorf, February 1994; 
Quality, the craft industry and small enterprises, Paris, February 1994; 
Assistance to enterprises - the role of the professional organisations and public 
bodies, Lisbon, March 1994; 
Women heads of enterprises and co-entrepreneurs in family enterprises, 
Thessaloniki, March 1994; 
Frontier zones - opportunities and risks for small enterprises, Mons, April 
1994; 
Cooperation with the countries of Central and Eastern Europe, Amsterdam, 
May 1994; 
Market access for the craft industry and small enterprises, Barcelona, May 
1994; 
The economic weight of the contemporary crafts, London, May 1994; 
The life cycle of enterprises - from creation to transfer, the factors of success, 
Dublin, June 1994; 
Innovation in the craft industry and small enterprises, Copenhagen, June 
1994. 
On the basis of the results of the preparatory workshops, the Commission has 
produced a working document which was distributed to the participants in the 
Berlin conference in the languages of the European Union. 
The third reason for the success of the conference is the quality and qualifications 
of the speakers and representatives of the governments (the ministers of the Troika 
also had the floor), the European Parliament, the Economic and Social 
Committee2, the private sector at European, national or regional level, and the 
Commission. 
2The Social and Economic Committee had produced an extensive advice on "SMEs and Craft 
Enterprizes" (Schleyer Report: CES IND/455 of October 22, 1992), in which the Committee requested 
In addition, alongside the conference, the senior government officials with 
responsibility for the craft industry and small enterprises met the Commission on 
27 September 1994 to prepare the conclusions of the conference. 
The conclusions of the preliminary workshops highlighted six priority topics (see 
annex 1) which were dealt with in greater depth in the six workshops held at the 
Berlin conference: 
1. The craft industry and small enterprises in Community policies 
2. Vocational and further training for heads of enterprises and assisting 
spouses 
3. Reinforcing the competitiveness of enterprises 
4. Financing enterprises and access to credit 
5. Craft and small enterprises in border areas 
6. Cooperation with Central and Eastern European countries 
An exhibition, "Craft industries in Europe", organised as a sideline to the Berlin 
conference, was very successful. Representatives from 15 countries demonstrated their 
main activities and products. The main themes of the exhibition were the wide range 
covered by the craft industry, the incorporation of modern technologies and the 
symbiosis of craft work and design. The craftsmen of the new Lander completed the 
exhibition through displaying some workplaces in action. The German Presidency of 
the Council and the Commission as well as several European associations were also on 
display to visitors, and they organised meeting places at the exhibition. The exhibition 
also provided a forum for communication at European level. 
Just as was the case for the first European Conference of Avignon, the proceedings of 
the Berlin Conference will be published by the Commission in the official languages of 
the European Union. 
m. Evaluation of the results of the Berlin Conference 
The European craft and SME organisations which supported the Berlin conference 
(UEAPME and EUROPMI and several European trade federations) represent some 
five million enterprises employing twenty million people. 
Compared with the first European Conference on the Craft Industry in Avignon (in 
October 1990), the number of participants has quadrupled. Approximately one-
third of the participants were the elected chairmen (at regional, national or 
European level) or secretaries-general (in particular the fifty speakers on the 
programme) of horizontal or sectoral bodies, public or private. Entrepreneurs 
accounted for 40% of the participants. 
the Commission to take more account of the needs of the crafts and small enterprizes in the run up to the 
Internal Market. 
In spite of the difficulties in organising sectors by countries, the entrepreneurs and 
their intermediaries were aware that the completion of the Single Market and the 
globalisation of markets present new challenges that account for a new positive 
approach to the process of European integration. 
Indeed, the majority of these enterprises basically operate in local or regional 
markets. Only a minority have business contacts with entrepreneurs in other 
Member States. However, there is every indication that the proportion of small 
enterprises which are prepared to go international is increasing. 
Traditionally, the craft worker or small businessman has been wary of structural 
changes, which he has difficulty in assessing and which might have an adverse 
effect on his competitive position. Accordingly, he has often fought shy of the 
process of European integration, which is perceived more as a constraint (because 
of legislation, technical regulations, standards and certification, which require 
considerable expenditure to comply with on the part of the craft worker or small 
businessman, whether he produces for the domestic or European market), rather 
than a new opportunity. All the more since the free movement of services in 
cross-border areas continues to be hampered by non-harmonized regulations. This 
lack of perception of a favorable perspective results in particular in a weak 
participation of representatives of the crafts sector and small enterprises in the 
process of preparation of community decisions. 
i 
Accordingly, it is very good to see that the elected representatives of craft and 
small business, or their intermediaries, attended the Berlin conference in large 
numbers and also spoke there. 
As regards the results of the conference, the representatives of the craft and small 
businesses submitted 144 proposals for basic guidelines mainly to the European 
Commission, but also to other Community institutions and to the Member States. 
The beneficiaries of these proposals would be mainly the entrepreneurs and their 
intermediaries. 
These proposals of the representatives of the crafts and small enterprizes are given 
in annex 1. 
The representatives of the craft industry and small enterprises are aware of the 
great contribution of their sector to growth, job-creation and innovation. However, 
to do this they need an economic environment which encourages the taking of 
initiatives and expansion of enterprises, so that they can attain their full potential 
and be in a position to create jobs. Only really competitive enterprises are able to 
create lasting and skilled employment. 
IV. Follow-up by the Commission 
The Commission, in co-ordination with a working group of the intermediate 
organizations, has made a summary list of 144 proposals, (annex 1) drawn up by 
people who attended the conference, which do not necessarily represent the 
opinions of the Commission or the Member States. 
These proposals reflect the desire on the part of the representatives of craft and 
small enterprises to play a larger part in European policies. Their concerns 
highlight the limited resources for dealing with the administrative constraints 
arising from the ever-increasing tide of European legislation and regulations, 
whether they are producing for the domestic or European market. 
The desires expressed by the participants pertain to four aspects: 
a) The participants wish that the European economic policy be oriented in the first 
place towards advantages in an improvement of the business environment for 
SMEs and crafts in order to allow them to make new contributions in favor of 
growth, competitiveness and employment. 
b) The people who attended the conference wanted Community programmes to be 
more open to their enterprises, while being better integrated in the decision making 
process on the regional, national or Community level, after the example of the 
Structural Funds. 
c) They also asked that the representatives of the crafts sector and the small 
enterpises be more closely involved in the conception and administration of 
Community programs that have an impact on enterprizes, with a view to their 
accelerated integration in the internal market and to thus improve their 
competitiveness. 
d) Lastly, support was requested for training intermediaries, so that they would be 
in a better position to advise enterprises on European strategic options or to give 
them easier access to Community programmes. 
The Commission has evaluated these proposals. 
The Commission concludes that about 50% of them are already covered, either by 
Community policies or by schemes initiated just before or after the Berlin 
conference by the European Commission (annex 2). 
- This is the case, for instance, for the new vocational training program 
LEONARDO, which started on 1 January 1995, giving new priority to SMEs and 
crafts firms, their heads and assisting spouses. 
- This is also true of the specific research and technological development 
programs, in each of which there is a section for SMEs . 
- Where cooperation with SMEs in Central and Eastern Europe is concerned, the 
PHARE and TACIS programs already set up give priority to SME development. 
Nevertheless, according to the sector representatives there are still far too few 
small firms and craft firms taking part in those actions and Community programs. 
Future measures. 
The Commission is fully aware that the development of Community policies in 
support of SMEs would gain in value if they were better geared towards the needs 
of the craft industry and small industrial and service enterprises, while fully 
observing the subsidiarity principle. 
Currently, however, Commission programmes rarely draw distinctions between 
small and medium-sized enterprises, which makes it difficult or impossible to 
assess at its true value the contribution made by small firms and craft firms in the 
Community programmes. 
As for the proposals of the representatives of the crafts sector and the small 
enterprizes not yet covered by Community initiatives, the Commission is aware 
that most of them reflect a genuine need. However, given restrictions on budget 
and human resource allocations, the implementation of the proposals can only take 
place progressively. 
Some proposals may be included in the third multiannual programme in support of 
SMEs and the craft industry (1997-2000), which will soon be submitted to the 
Community institutions. 
This programme should certainly aim more to incorporate small industrial, craft 
and service firms more firmly into the single market and improve their 
development and competitiveness, since they offered an important potential for job 
creation in Europe. 
With due consideration to the subsidiarity principle, and subject to the available 
resources, the following initiatives appear to have the special priority . 
1. Administrative simplification: 
Continuing the action of administrative simplification and strengthening of the 
procedure for the business impact assessment. 
Taking into account as much as possible in new European legislation the situation 
and die limited resources of the craft industry and small companies. 
Increase the transparency of programs and pilot actions and simplify the procedure 
for taking part in Community programs. 
2. Integration of the Small enterprizes in the Internal Market: 
Improve the participation of the craft industry and small enterprizes in the matter 
of normalisation, especially while strengthening the means of the European 
association which is currently being created, and which is in charge of representing 
the special needs of the crafts industry and small enterprizes in the European 
normalisation committees. About 500 new European norms are adopted every 
year. Voluntary in principle, they address all European companies, whether they 
export or not, and whereby national norms on the same subject have to be 
abolished. However, the recent action EUROMANAGEMENT 
Normalisation/certification has exposed the important deficit of SMEs and craft 
industries in this matter. 
Support the relevant national organisations of SMEs and craft industry networking 
to create systems of certification adapted to the needs of the enterprises. The public 
and other big buying entities ask more and more of craft industries and SMEs 
to have the "Quality Management." certification. 
Follow up measures to the EUROMANAGEMENT -Action, which has exposed 
the especially weak use by small companies and craft firms of the concepts of 
quality, normalisation, certification, and safety on the work place. 
3. Support of cross border trade services for craft industries and small enterprises 
As a strengthening of the ongoing pilot action operated by the Commission, support for 
the creation of cross-border development offices for the intra-Community borders for 
which such offices are not yet in existence. Those will have to be tightly linked to the 
craft industry and to the SME organizations and will be in charge of information and 
consulting, in order to reduce the barriers that hinder the execution of services 
provided by small businesses and craft firms in neighboring states. Those companies 
are confronted with numerous, non-harmonized pieces of regulation which hinder 
cross-border business activities and increase operating costs in a prohibitive way. It is 
proposed to group these organizations in a European network. 
4. Transnational Co-operation 
A study which was made on the Commission's behalf reveals that distance is not a 
decisive factor for successful co-operation between small companies. In fact, those 
same companies could benefit from such partner ships to better succeed on foreign 
markets. 
Strengthening of transnational co-operation between crafts firms, supported by 
crafts organizations who help companies get in touch with each other. Support of 
small enterprises from different Member States taking part in trade shows and 
events within the European Union, at least with common stands. 
10 
5. Improving the international competitiveness of the crafts industry 
To initiate and implement, in close co-operation with other Community programs, 
the co-operation with organizations and companies in Eastern Europe and Central 
Europe as well as with Mediterranean countries. 
Support of a small number of actions to facilitate the participation of craftsmen and 
small firms in trade shows in third countries, at least with joint stands. 
6. Measures of vocational training and perfecting of skills of mamagers of small 
businesses and craft firms, co-entrepreneurial spouses, interns and 
intermediaries, not covered by other Community programs: 
Training of intermediaries (employees of chambers of commerce and professional 
organizations) on European issues, including matters in the field of normalisation, 
certification and environmental management. 
Support for the construction of European networks of female heads of businesses, 
training of co-entrepreneurial spouses and of female heads of firms in order to 
better make them aware of the challenges offered by the Internal Market; 
Support for the creation of a European network of placement for young craftsmen 
to facilitate internships for further training in crafts firms in other Member States. 
Using modern administrative technology will speed up the placement of young 
workers in various fields of interest and in the Member States of their choice. 
7. Common development of qualifications 
Encouragement of the launch by CEDEFOP of work on the common development 
of qualifications; this is about facilitating, in concertation with professional 
organizations and the Member States, the European recognition of diplomas which 
could lead to the recognition of sandwich courses and the elaboration of European 
diplomas which will be devised from the beginning by the representative 
organizations of the crafts sector. 
8. Integration of small enterprizes and craft industry in the information society 
Permitting, in strict co-operation with the other Commission services, professional 
organizations to better help small businesses and craft firms to take advantage of 
the numerous possibilities offered by new information technologies. With this in 
mind, it is being proposed to launch several actions to identify new possibilities 
and to transmit those to the intermediaries. 
9. Improvement of the access to financing of craft firms and SMEs 
Development of mutual guarantee schemes 
In order to obtain a better dialogue in the framework of a "round table of high 
officials from the banking world" , stimulating the bank-enterprise co-operation. 
11 
10. Improving the knowledge, visibility and representativity of the craft industry 
and of small enterprises on the European level 
Support for the setting up of a European academy for crafts and small enterprises, 
which will be a place of information, exchanges and concertation for the sector, so 
that the identity of the sector be strengthened, as well as its role, particularities and 
presence in European regions. It is to be well understood that the initiative for this 
academy will have to come from the sectoral representative organizations. 
Cofinancing competitions among young European craftsmen from different fields 
in order to highlight the European identity; 
European prize of craftsmanship, which will be the most important denominator in 
the Union for the crafts sector and small enterprises. This prize will be composed 
of a European prize for established craftsmen, in order to recognise their talent and 
know-how, and of a prize for young craftsmen, so as to stimulate their vocation. 
Improvement of the economic role of the sector, by launching economic analyses 
gearded towards small- and craft firms, female entrepreneurs, and spousal co-
entrepreneurship. The elaboration of statistics with the help of Eurostat and 
national statistical offices, using methods permitting to not put an extra burden on 
craft- and small firms while at the same time producing satisfying results. 
Giving a more important role to craft- and small businesses in the administrative 
committees of Community programs (in particular the structural funds and 
research and technological development), including a more systematic consultation 
of intermediate organizations. Analysis of the participation of small enterprises and 
craft firms in these programs, identification of barriers, organisation of a European 
conference on this study. 
The Commission will specify further the actions to take under the framework of the 
third pluriannual program in favor of SMEs and the crafts sector (1997-2000), and will 
accompany that with a financial proposal. 
V. Identification of possible Recommendations to the Member States and to 
National and European Committees of normalisation 
In its resolution of 10 October 1994, the Council has asked the Commission to 
state the recommendations to be made to the Member States for implementing the 
conclusions of the Berlin conference. The Commission will begin with a 
consultation on the identification of the subjects which have been kept. 
The Commission is aware of the major differences at national level in the 
organisation, traditions, regiementtations, and representativeness of craft firms 
and small industrial firms. These differences make it more difficult to draw up 
recommendations, since these do not always take account of the special position of 
small firms, which often have a long tradition behind them. Moreover, 
experiments which succeed in one Member State may not be as successful in other 
Member States if there are no experienced public or private bodies or craft and 
SME associations governed by the self-management principle. 
12 
Several recommendations can nevetheless be formulated. At this stage they will 
primarily concern improvements to the exchanges of best experience. In 
cooperation with the Member States, the European Committees of normalisation 
and the representatives of the craft and small business sector, the Commission will 
examine the topics set out above to establish whether a formal recommendation 
from the Commission could have added value. 
1. Strengthen the involvement of the representative organizations of small firms and 
craft firms in the elaboration of national positions within the framework of 
Community programs. Craft and small business intermediaries play a decisive role 
in business development, in both vocational training and support. In those 
Member States which have developed intermediary structures, such as local 
chambers of commerce etc., usually governed by the self-management principle, 
small firms and craft firms receive high-quality services which enable them to 
become more competitive. Those intermediairies can assure the important 
fonctions in the domain of economic and technical assistance to enterprises in the 
field of initial and continued training, as well as in the matter of training of 
management and, in particular, as far as advise companies in the face of the new 
challenges such as quality assurance and environmental mangement goes. 
Different Member States have different practices where the links between the 
representative organisations and local, regional and national consultative bodies are 
concerned. In view of the great job-creation potential of small enterprises it 
therefore seems desirable to open up consultative bodies to their intermediaries. 
Within the framework of certain Community policies, including regional 
policies, recognise the role and responsibility of the organisations representing 
the craft industry and small enterprises in providing training, support and links 
with local, regional and national consultative bodies. 
2. Promoting apprenticeship and vocational training: Where vocational training is 
concerned, sandwich courses for apprentices yield excellent results for the 
apprentices themselves, for the small firms or craft firms involved and for the 
economy as a whole. 
While at the same time taking courses in professional schools, the apprentices are 
thus involved in the life of the firm throughout their apprenticeship contract and 
thus have less difficulty in finding a job after the final examination. Therefore, the 
youth unemployment rate is lower. 
Promote the introduction of apprenticeship schemes and sandwich courses. 
13 
Promotion of initiatives to start new enterprises: 
The theme of the creation of indépendant and new enterprises calls for a new 
political approach. Thirty to forty-five per cent of the total of new jobs are being 
created through the creation of small firms and craft firms. However, it needs to 
be noted that in the last few years the entrepreneurial spirit and the willingness to 
create new enterprises have greatly diminished, so that the number of self-
employed, and small firms and craft firms has seen a reduction. 
This diminuation seems to be linked strongly to the period of education and 
training becoming longer. The intention to start a company and become self-
employed diminishes when the period of education in one 's life becomes longer. 
Studies done in several Member States demonstrate that only 5 to 20% of the 
starters of small businesses have finished secondary education. It seems, therefore, 
that the educational and university systems do not particularly favor the 
entrepreneurial spirit in terms of creation of enterprises and in terms of 
establishing oneself as an entrepreneur, self-employed person or craftsman. They 
even have a demotivating effect on young people and contain numerous obstacles 
to the development of a spirit for starting a business: insufficiently 
pluridisciplinary approach, too important a place given to big institutions and to 
being an employee, insufficient familiarity with the world of business and with 
being a craftsman. Before anything else, it would be desirable to improve 
information about starting a business and starting businesses so that new 
generations consider being self-employed as an attractive carreer choice. 
Create the right conditions for small businesses and craft firms for a 
strengthening of the spirit for entreprise creation, in particular by developing a 
pedagogic method and a new approach to include the spirit of business creation 
into the educational systems, from primary school through university. 
4. Strengthening the access to consulting: 
The survival of a newly started business can only be secured when the 
entrepreneur is capable of facing the numerous challenges which pose themselves 
at the time of starting the company, but also at later stages, and notably in the field 
of administration. All too often, the entrepreneur is not capable of finding lasting 
solutions and is forced to close shop. On the other hand, the life span of a 
company increases when the quality of the consulting received has increased as 
well. It is thus desirable to increase and strengthen the consulting given to starting 
entrepreneurs, both at the occasion of setting up the firm and down the road. The 
consulting should comprise aspects of organisation, financial and administrative 
management, marketing, and the use of new technologies in the company. 
Creation of a positive environment for consulting to starting entrepreneurs and 
recently created entreprises, in particular through exchanges of experiences on 
the impact of minimum education needed (especially in the field of finance and 
management) so as to improve the chances of survival for newly established 
craft firms. 
14 
5. Improve the taking into account of the interest of small firms and craft firms in the 
field of technical harmonization: 
About 500 new European norms are made every year. Eventhough these are 
volontary, they will have to be used and implemented by small business and craft 
firms, whether they export or not, in particular because the old national norms 
must be abolished. 
The EUROMANAGEMENT action NormaUsation/Qualification demonstrated that 
SMEs are mostly unaware of the body of European norms and participate to an 
even lesser extent in the European process of drafting norms. This is true on the 
national as well as on the European level. On this point, however, a great number 
of differences exist between the Member States. 
It would be useful if in the process of negotiating European technical norms the 
European Committees of normalisation, the national committees of normalisation 
and the European SME-organisations would analyse their impact on craft firms and 
SMEs. 
Recommendation to the European and national normalisation 
authorities to introduce a business assessment form procedure for 
SMEs in the field of standardization. 
6. Conclusions 
The second European Conference on the Craft Industry and Small Enterprises in 
Berlin was a step in an ongoing process. Craft firms and small businesses now face 
other challenges which deserve discussion and exchanges of experience on a 
European scale, so as to incorporate such firms into the single market and make 
them more competitive. The information society and the opportunities it offers to 
these businesses, the role of the craft industry and small businesses in local, rural 
and urban development, the cooperation of craft firms and small businesses in the 
Mediterranean basin, and improvements to quality and environmental management 
all deserve special attention. 
The Commission proposes to organise a third European Conference on the Craft 
Industry and Small Enterprises in 1997 to measure the progress made on these 
themes. 
15 
wf July 1995 
Second European Conference on the Craft Industry and Small Businesses 
BERLIN, 26-27 September 1994 
List of proposals from representatives of the craft industry and small businesses 
K, This document contains the proposals from representatives and experts from craft and small business 
•N organisations at EU and Member State levels, and heads of enterprises, as expressed at the 
preparatory symposia, expert meetings and seminars of the Berlin Conference. It does not represent 
the opinions or positions of the European Commission. It is addressed to the European Commission, 
other EU-institutions, the Member States as well as the craft and small enterprise sectors. 
I Craft industries and small businesses in Community policies 
General Policy 
1. Understanding 
the economic role 
of the sector 
2. Measurement of 
the impact of 
Community 
legislation Orientation 
1. Demonstration of the economic and 
social role of the sector, particularly with 
regard to employment creation, by 
performing comparable statistical 
analyses at the European level and 
specific studies 
2. Encourage national and European 
economic and social research work 
1. Take account of the effects of 
Community legislation on small 
businesses and the craft industry, by 
examining the effects at administrative, 
legal and fiscal levels, and by simplifying 
the administrative activity of businesses at 
each stage of their operation Actions 
setting up of a group of statistical experts from the national craft organisations with 
responsibility for defining, orienting and launching useful statistical analyses in 
collaboration with EUROSTAT. 
performance of thematic studies on a European and national scale on subjects 
defined jointly between the craft organisations and the Member States 
organisation of a symposium on the subject of identification criteria and the identity 
of the craft industry and small businesses in the Member States 
examine the impact of new European legislation on the craft industry and small 
businesses by systematically applying the business impact assessment procedure to 
the craft industry and small businesses 
allow European craft organisations to take part in committees for administrative 
simplification and improvement of the business environment Addressee 
Comm. 
X 
X 
X 
X 
X Other 
Comm. 
Inst. Memb. 
States 
X 
General Policy 
3. Strengthening of 
representation in 
the European 
Union and 
development of the 
craft industry's 
image Orientation 
1. Creation of a department "Craft and 
Samll Enterprises" in DG XXIII 
2. Creation of a European Craft and Small 
Business Academy as a place of 
information, exchange and dialogue Actions 
. 
adapt the principle of extended Implementations for Community legislation or that 
of total or partial excemption for small enterprises to be examined on a case basis 
or for certain occupations as a result of the investments required to conform to the 
legislation. 
Pay attention to the need for small and craft enterprises to receive adequate 
implementation periods to apply Community legislation under the most favourable 
condition taking account of the investments required. 
develop within Europe "approvedmanagement centres" or "tax assistance centres" 
to help businesses with their accounting and fiscal obligations. 
Change DGXXJH's organisation 
support for the formation of a Working Party to define the orientation of the 
Academy 
support for the organisation of preparatory work (expert meetings, pilot 
programmes...) and for the creation of the Academy Addressee 
Comm. 
X 
X 
X 
X 
X 
X Other 
Comm. 
Inst. Memb. 
States 
X 
X 
X 
cx»> 
General Policy Orientation 
3. Facilitate dialogue and groupings 
among representative organisations Actions 
encourage the grouping of European representative organisations 
develop a language training programme for the organisations' managers within the 
framework of the LINGUA programme 
develop trans-national exchanges in the form of placement schemes for the 
organisations' managers 
develop the system of "craft experts' meetings" with specif c themes and facilitate 
the exchange of best practices 
put in place a training programme on European affairs for managers, business 
advisors and those in charge of craft organisations within the framework of the 
LEONARDO programme 
ensure that the "guide to craft and small business organisations" is regularly 
updated and extended to cover the new Member States of the EU. Addressee 
Comm. 
X 
X 
X 
X 
X 
X Oilier 
Comm. 
Inst. Memb. 
States 
X 
X 
X 
General Policy 
4. Consultation 
with the craft and 
small business ' 
representative 
organisations and 
inclusion in the 
Social Dialogue 
5. Participation in 
Community 
programmes Orientation 
1. Include the European craft and small 
-business organisations in the process of 
drafting Community texts 
2. Participation of the European craft and 
small business organisations in advisory 
committees and working parties at 
Community level, including the Social 
Dialogue 
3. Systematise the principle of providing a 
hearing of the craft and small business 
representative organisations in the 
proceedings of the European Parliament 
1. Take account of the specific nature and 
particular needs of the craft sector in 
Community programmes, if need be, 
through budgetory allocations for small 
entreprises Actions 
analyse of the participation of small businesses and of their intermediary 
organisations in Community programmes, Training programmes, Research and 
Development programmes, as well as Structural Funds, including Community 
Initiative Programmes) Addressee 
Comm. 
X 
X 
X Other 
Comm. 
Inst. 
SEC 
EP 
SEC 
COR 
EP Memb. 
States 
S 
General Policy 
6. Understanding 
and taking account 
of the specific 
situation of small 
businesses and craft 
industries Orientation 
2. Improve the information available on 
Community programmes 
3. Extend the principle of "feasibility 
bonuses" to allow small businesses easier 
access to Community programmes 
4. Encourage the European craft and 
small business organisations to participate 
on a national (national co-ordination 
committees) and regional level in the 
management of Community programmes 
1. Make it easier to take account of small 
and craft businesses who have particular 
needs due to their geographical distance, 
particularly, those in outlying regions and 
remote island locations Actions 
gear Community information down towards regional and local structures, notably 
through the creation ofEICs in national craft organisations 
address a recommendation to the Member States 
organisation of a European symposium on small and craft business in remote island 
locations, to define ways of promoting local development as well as foreign trade Addressee 
Comm. 
X 
X 
X 
X Other 
Comm. 
Inst. Memb. 
States 
X 
General Policy Orientation 
2. Strengthening of the craft and small 
business aspect in the European Union's 
Mediterranean policy 
3. Support the operation of craft and small 
businesses on a local level (rural and 
urban) Actions 
analysis of the situation and of the experience gained, particularly with regard to 
co-operation and training 
organisation of a European symposium between the bodies and businesses from the 
whole of the Mediterranean basin 
encourage a higher participation of the businesses targeted in LEADER and 
URBAN Addressee 
Comm. 
X 
X Other 
Comm. 
Inst. Memb. 
States 
X 
X 
^ 
p 
Vocational training and proficiency of craftsmen, business managers and entrepreneurial spouses 
General Policy 
1. Revaluation of 
apprenticeship and 
promotion of 
sandwich course 
training Orientation 
1. Understanding and exchange of 
existing sandwich course systems 
2. Obtain recognition for apprenticeship 
within the legislation of all Member 
States 
3. Encourage co-operation between 
schools and businesses Actions 
conduct a comparative study on sandwich training course systems already in 
existence in EU countries (CEDEFOP) 
analyse the feasibility of transferring existing systems to other countries, bearing in 
mind national socio-cultural characteristics 
Recommendation to the Member States 
conduct a study on actions taken by craft organisations, the public authorities and 
the professional circle in the Member States, analysis of best practices 
organisation of experts meetings or working groups under the responsibility of 
CEDEFOP 
introduction of specific financing for co-operative actions between schools and 
businesses, within the LEONARDO programme Addressee 
Comm. 
X 
X 
X 
X Other 
Comm. 
Inst. Memb. 
States 
X 
X 
c 
General Policy 
• Orientation 
4. Encourage exchanges of practices 
concerning the status of young people in 
training as well as that of apprentices' 
instructors 
5. Create a positive image of the craft 
industry and of the career potential it 
provides amongst the young, their 
families and the teaching body 
6. Involve craft organisations in the 
management of national and European 
mechanisms for sandwich course training 
7. Encourage co-operation and exchanges 
between training centres Actions 
support a European campaign to promote apprenticeship 
production of a video film showing the qualities of and the opportunities provided 
the craft industry 
promote the participation of organisations in management committees for 
Community programmes, particularly LEONARDO 
formation of a working group with representation from DGXXIII, DGXXII, DGV, 
CEDEFOP and European craft organisations 
encourage the LEONARDO programme to take them into consideration Addressee 
Comm. 
X 
X 
X 
X 
X Other 
Comm. 
Inst. Memb. 
Stales 
X 
X 
General Policy 
2. Qualification of 
entrepreneurs and 
further training Orientation 
8. Establish equivalents between general 
training and vocational training and 
achieve mutual recognition of this 
training and of European qualifications 
1. Adapt the training to new needs: 1) 
training specific to each business, 2) 
general training covering areas of 
European interest, 3) training of trainers 
and apprenticeship instructors, 4) 
development of distance training and 
computer assisted training techniques 
2. Develop the training of business 
advisors 
3. Encourage training for entrepreneurs 
prior to business creation Actions 
Berufsb ildungspafi 
CEDEFOP to carry out a special analysis of the needs in these different areas, 
including the approaches of the national craft organisations 
implementation within the framework of the LEONARDO programme of pilot 
training programmes, including language courses (LINGUA), designed specifically 
for the heads of craft businesses 
support for the use oftelematic training tools in training centres and businesses 
carry out an analysis of best practices and experience in the Member States 
conduct a pilot project to support national training schemes for business creators Addressee 
Comm. 
X 
X 
X 
X 
X Other 
Comm. 
Inst. 
X Memb. 
Stales 
X 
General Policy 
3. Improve 
apprentice and 
post-apprenticèship 
exchange schemes 
4. Increase 
participation in 
Community 
programmes 
5. Support the 
economic and 
social role of co-
owner spouses Orientation 
1. Develop the skills of future 
entrepreneurs and employees 
1. Include the heads of craft businesses, 
co-owner spouses and young people in the 
orientation of the programmes 
1. Clarify the social role of co-owner 
spouses 
2. Support the formation of an European 
network of organisations working to 
support co-owner spouses 
3. Encourage co-operation between spouse 
organisations and training organisations Actions 
evaluate existing experience 
support for twinnings between craft organisations 
initiate discussions on the social statutes of young trainees 
evaluate the participation of the craft industry in European training programmes 
carry out a study on the economic importance of the role of spouses, their legal 
situation and status 
examine the best existing national practices 
produce a guide of co-owner spouse organisations 
support for the formation of European network for assisting spouses 
support through the European Programme for Equal Opportunities or LEONARDO Addressee 
Comm. 
X 
X 
X 
X 
X 
X 
X Other 
Comm. 
Inst. Memb. 
States 
S 
General Policy 
-
6. Improve the 
qualifications of co-
owner spouses 
7. European 
training policy to 
assist small 
businesses and the 
craft industry Orientation 
1. Collect and disseminate information on 
existing training programmes in the 
Member States 
2. Encourage training for spouses Actions 
distribution of information 
incorporate training for spouses into the priorities of the LEONARDO programme 
develop an experimental programme on trans-national training 
Incorporate the needs and priorities of the craft industry into the "1996 - European 
year for education and training" programme and ensure the involvement of craft 
and small business organisations in the preparation and running of this programme Addressee 
Comm. 
X 
X 
X Other 
Comm. 
Inst. Memb. 
States 
General Policy 
1. Support for the > 
introduction of 
Quality policies; 
taking into account 
the particular 
conraints of small 
businesses in the 
technical 
regulations Orientation 
• 
1. Raise awareness within craft businesses 
of the problems posed by European 
standardisation and certification: craft 
businesses are not familiar with these 
standards wich are often experienced as 
constraints, especially with regard to 
production standards, machine safety 
standarcîTand EC marking 
2. Raise awareness amongst national 
legislators and certification bodies of the 
effects on small businesses of demands 
related to the application of technical 
regulations and standards, particularly 
with regard to adjustment costs. Actions 
media information and awareness-raising campaign in conjunction wiht the craft 
and small business organisations to raise awareness amongst businesses, based on 
the experience of national organisations and on the results of Community projects 
finance, at Member State level, information seminars bringing together craft 
organisations, certification bodies and the public authorities concerned 
introduce a business impact assessment for European standardisation 
study and analyse the problems arising for small and craft businesses in the 
application of standards 
distribution of the conclusions of EUROMANAGEMENT - Standardisation, 
Certification, Quality Addressee 
Comm. 
X 
X 
X Other 
Comm. 
Inst. Memb. 
States 
X 
X 
06 
General Policy 
r Orientation 
3. Facilitate the involvement of small 
business organisations in standardisation 
and certification work, at both national 
and Community levels 
4. Support the drawing up of prescriptive 
reference documents and good practice 
guides 
5. train experts from craft organisations 
and small businesses in the areas of 
standardisation, certification and quality 
6. Inform and support small businesses in 
their approach to quality Actions 
Commission representations to the CEN 
support for a European standardisation office for SMEs and the craft industry, 
capable of contributing to the work of European standardisation organisations 
support for national organisations with a view to their participation in the work of 
national standardisation bodies 
analysis of actions taken in the Member States 
consider financial assistance for national and European professional organisations 
to help them in drawing up European codes of good practice and application guides 
encourage, within the framework of Community programmes, trans-national 
training within craft organisations for European standardisation, certification and 
quality 
launch of a EUROMANAGEMENT Quality programme for the craft industry 
exchange of best practices in aid to improve quality in craft businesses 
support for the creation and distribution of effective teaching tools for raising 
awareness and help with self-training Addressee 
Comm. 
X 
X 
X 
X 
X 
X Other 
Comm. 
Inst. Memb. 
States 
X 
X 
General Policy 
2. Involvement in 
environmental 
protection policies Orientation 1 
1. Adapt national and European 
regulations to the specific needs of small 
and craft businesses 
2. Ensure the involvement of national and 
European organisations iri national and 
European regulation work 
3. Facilitate the respect of regulations by 
businesses 
4. Inform and support businesses by 
introducing innovative support 
mechanisms Actions 
incorporation into Community legislation of the principle of a longer period of 
adaptation for small businesses in the implementation of regulations, and if 
necessary, provide for an exemption system in matters not relating to essential 
hygiene, health and safety requirements 
simplify and codify the implementation regulations 
establish a European regulation to systematise tax reductions when a business 
applies environmental standards 
develop, within the framework ofEIB and EIF funds, preferential aid for investment 
by businesses to use environmental protecting technology 
facilitate trans-national training for craft organisations experts within the 
framework of Community programmes 
support for the creation and distribution of effective awareness raising teaching 
tools, including for self-training 
a European study on Member States' practices regarding support for the 
introduction of environmental mechanisms in craft businesses and an analysis of 
best practices Comm. 
X 
X 
X 
X 
X 
X Addressee 
Other 
Comm. 
Inst. Memb. 
States 
X 
X 
X 
X 
Y 
General Policy 
3. Development of 
research, transfer of 
technology and 
support for 
innovation 
4. Improve business 
co-operation Orientation 
1. Recognition of the current situation 
2. Encourage the transfer of technology 
across sectors and geographical areas and 
promote access to leading-edge 
technology 
1. Analyse specific problems of craft 
businesses Actions 
support within the framework of the Structural Funds for the formation of resource 
and advice centres to assist the craft industry in environmental matters 
support for the creation of training and qualification modules on the environment 
within initial and further training programmes 
take account of the needs of small businesses in the Ecoaudit system 
launch of a EUROMANAGEMENT environment policy in favour of small and craft 
businesses 
analysis of the actions and measures taken in the Member States relating to support 
for innovation and for the transfer of technology in the craft industry 
analysis of the involvement of small and craft businesses in research and 
technological development programmes, authentication of the research results 
distribution of a guide on centres of technology transfer 
support the involvement of small businesses in the 4th Community R&D programme 
organise meetings between experts from Member States organisations Addressee 
Comm. 
X 
X 
X 
X 
X 
X 
X Other 
Comm. 
Inst. Mejnb, 
States 
X 
X 
X 
X 
X 
^ 
General Policy 
5. Encourage the 
use of industrial or 
artistic design Orientation 
2. Improve Community co-operation tools 
in favour of small businesses 
3. Encourage the creation of combined 
marketing actions (guides, buying 
syndicates, group participation in trade 
fairs and purchasing actions 
1. Promote design education and training 
2. Create a European award for craft 
design Actions 
Participation of craft businesses withing the EUROPARTENARIAT scheme 
facilitate the development of crajt-INTERPRISE especially in cross-border regions 
support craft industry pilot projects for co-operation 
support the joint participation of craft businesses of at least three member states to 
faires and exhibitions 
draw up a list of best teaching practice in the Member States 
produce a guide of bodies specialising in training and advice on industrial design 
support the design and distribution of training modules particularly within the 
framework of the LEONARDO programme 
set up a group of experts to develop the principle 
launch a pilot project Addressee 
Comm. 
X 
X 
X 
X 
X 
X 
X Other 
Comm. 
Inst. Memb. 
Stales 
X 
General Policy 
6. Support for the 
creation and 
transfer of 
businesses Orientation 
1. Identify the needs and specific situation 
of small and craft businesses 
2. Improve training prior to business 
creation or transfer 
3. Improve conditions for business 
creation 
4. Improve the conditions for business 
transfer Actions 
support for the creation of a European Observatory for the establishment and 
transfer of businesses 
exchange of best practice on help available for business creation / transfer 
support training prior to business creation or transfer within Community 
programmes 
encourage business creators to take part in prior training 
identify the administrative difficulties associated with the formalities of establishing 
a business 
encourage the setting up business formality centres 
exchange of best practices by means of conferences 
launch a pilot project for venture capital specially adapted for small and craft 
businesses 
improve European support programmes for the creation of businesses by women 
identify the negative factors that hinder transfer: report and recommendation 
analyse best practices in the Member States Addressee 
Comm. 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X Other 
Comm. 
Inst. Memb. 
States 
X 
X 
X 
X 
X 
X 
X 
u 
Go 
Financing and access to credit 
General Policy 
1. Understanding of 
specific situation of 
small businesses 
and the craft 
industry including 
that of female 
heads of businesses 
with regard to 
financing and 
access to credit 
2. Improve the 
relationship 
between banks and 
business Orientation 
1. Encourage co-operation between banks 
and businesses 
2. Encourage the creation and 
development of management centres and 
centres for financial and accounting 
formalities Action* 
draft a Commission communication on: 
- the exchange of best practices regarding the financial management of businesses 
- access to credit on a national and European level 
- consolidatio of capital 
- other forms of finance 
support a working group comprised of representatives from the sectors concerned to 
propose new practical measures for adoption 
study and analyse the existing systems in the Member States 
development of certified management centres ^ id centres for financial and 
accounting formalities 
help with contacts and the exchange of practices between centres A till res 
see 
Comm. 
X 
X 
X Other 
Comm. 
Inst. Memb. 
States 
X 
X 
General Policy 
3. Offer products 
and financial 
conditions adapted 
to the needs of 
small businesses Orientation 
1. Develop mutual guarantees 
2. Take into account the specificity and 
constraints of small businesses within the 
framework of financial conditions Actions 
set up a system of mutual guarantees in countries where they do not already exist 
via partnerships between businessmen, banks, public authorities and European 
institutions 
harmonise taxation relating to mutual guarantee schemes on the basis of deduction 
of withheld profits 
increase the guarantee capacity of mutual guarantee firms 
grant mutual guarantee firms the opportunity to receive Community funds 
exchange of best practices on the system 
- lead EIB and EIF funds towards investments in standardization issues 
- creation of global incentives (EIB) granted to financial or guarantee institutions 
in order to develop "micro loans" to individual companies Addressee 
Comm. 
X 
X 
X Olher 
Comm. 
Inst. Memb. 
States 
X 
X 
Cv 
Border zones 
General Policy 
1. Improve the 
procedures relating 
to the formalities of 
trans-national 
activities Orientation 
1. analyse the obstacles and technical 
barriers presented 
2. continue the work begun on 
simplification and the administrative, 
technical, legal and fiscal deregulation 
necessary to secure real freedom to 
provide trans-national services 
3. harmonise the social security 
conditions in the areas concerned 
4. speed up the work to introduce a final 
system for applying VAT in the country 
of origin Actions 
produce a report by the Commission on the constraints and difficulties encountered 
by small businesses in all border zones 
establishment of an "appeal centre" at Commission level to deal with disputes, 
concerning obstacles and barriers encountered by small businesses, that cannot be 
solved locally 
involve craft and small business organisations in impact analyses of Community 
legislation 
encourage the setting up of discussion and exchange groups for each border zone to 
deal with the constraints upon competition between local and neighbouring 
businesses. Launch a pilot programme to promote dialogue (meeting days) 
(INTEREG) 
encourage the creation of formality centres which would achnse businesses or carry 
out the formalities for them, including taxation formalities Addres 
see 
Comm. 
X 
X 
X 
X 
X Other 
Comm. 
Inst. Memb. 
States 
X 
X 
X 
X 
Ui 
^ 
General Policy 
2. Improve the 
general operation 
conditions of 
businesses Orientation 
1. Improve the information available to 
businesses on the conditions for pursuing 
their activity in the adjacent country and 
on market knowledge and the potential 
for development. Support the translation 
of useful regulations into the language of 
the neighbouring country 
2. Encourage business co-operation and 
partnership meetings to share trans-
border information 
3. Introduce training programmes adapted 
to trans-border activity, dealing 
essentially with language, economic and 
cultural aspects 
4. Support for co-operation between 
bodies representing co-owner spouses 
across adjacent regions 
5. support for apprentice exchanges 
between border businesses Actions 
under the INTEREG programme support the production of brochures and trans-
regional information documents for craft businesses 
launch a support programme for the translation of passages of legislation and of 
administrative forms 
authorise "INTERPRISE" or similar meetings between two border regions, and not 
necessarily between three countries 
create a programme to assist direct co-operation between two businesses to support 
the follow-up of co-operation projects in the areas of commercial, technical and 
R&D co-operation 
under the LEONARDO programme, grant priority to trans-border training 
support from the LEONARDO programmes Addressee 
Comm. 
X 
X 
X 
X 
X 
X Olher 
Comm. 
Inst. Memb. 
States 
X 
X 
X 
X 
<U: 
General Policy 
3. Support for the 
heads of businesses Orientation 
1. Develop trans-regional support 
structures for SMEs in the private sector 
to provide assistance with administration, 
information promotion and co-operation 
with businesses from neighbouring 
countries 
2. Encourage the training of economic 
trans-border advisors Actions 
develop and improve the Commission initiative to support the creation of trans-
border offices 
support the setting up of a network of trans-border ojfices 
envisage a medium to long term prospect for these trans-border offices 
set up, within the framework of the LEONARDO programme, a training programme 
on cross-border activities for business advisors Addressee 
Comm. 
X 
X 
X 
X Other 
Comm. 
Inst. Memb. 
States 
X 
X 
K 
X 
Co-operation with Central and Eastern Europe 
Genern! Policy 
1. Understanding of 
the situation of 
small businesses in 
the CEEC 
2. Understanding of 
local representative 
organisations and 
assistance for their 
development 
3. Encourage the 
implementation of 
national and 
regional policies in 
favour of craft 
industries and shall 
businesses Orientation 
Socio-economic analysis of the situation 
and needs 
Encourage the creation and development 
of support structures (chambers of 
commerce and craft industries) to be run 
by businesses 
Assist governments in the implementation 
of measures in favour of the development 
of craft industries and small businesses Action» 
launch of a study to provide legal and economic statistics concerning the sitation 
and role of small businesses 
Identify existing organisations 
support for co-operation and twinning with craft industry chambers and 
professional orgnaisations in the EU, especially through the development of 
training placements for the managers of these organisations in the EU countries 
financial assistence for the formation and development of organisations 
support for the secondment of managers from EU organisations in order to assist in 
the formation of organisations in the CEEC 
information / training for government officials notably through training placements 
in EU Member state administrations Addres 
sec 
Comm. 
X 
X 
X 
X 
X 
X Other 
Comm. 
Inst. Memb. 
States 
X 
X 
X 
General Policy 
4. Encourage the 
development of 
craft and small 
businesses Orientation 
1. Organise specific training programmes 
instituts 
2. Encourage commercial and 
technological co-operation with EU 
businesses 
3. Ensure the particular development of 
craft businesses in the regions bordering 
the EU countries, particularly within the 
framework of the PHARE-INTERREG 
programme Actions 
put into place pilot sandwich course programmes, pilot training programmes for 
entrepreneurial spouses, language training programmes for business advisors and 
heads, training programmes for trainers, designed in collaboration with EU 
organisations, within the framework of PHARE and TACIS 
finance pilot in-service training programmes within craft businesses in the areas of 
technological development, financial management, accounting and marketing 
implement a pilot programme, within the framework of PHARE and TACIS, for 
personalised support for businesses, through partnerships between EU and CEEC 
organisations in the form of assignments by experts from chambers of craft 
industries 
financial assistance for CEEC craft businesses to take part in EU trade fairs 
financing of the cost of co-operation, mainly through INTERPRISE andJOPP 
between CEEC and EU enterprise 
develop, with the participation of the organisations concerned, a partner search 
network and support co-operation between businesses 
set up "trans-border development bureaus" of the craft and small business 
organisations of the regions concerned 
Support the inter-business co-operation, notably through partnership fairs, 
entrepreneurs' meetings and specialised trans-border fairs (PHARE, INTERREG) Addressee 
Comm. 
X 
X 
X 
X 
X 
X 
X 
X Other 
Comm. 
Inst. Memb. 
Stales 
X 
X 
X 
X 
X 
General Policy 
5. Redeployment of 
PHARE - TACIS 
procedures Orientation 
4. Improve the financial environment of 
businesses 
1. Open up Phare and Tacis operations 
more towards the craft and small business 
organisations 
2. Intensify co-ordination between 
Community and national instruments Actions 
organise a working group composed of banking experts and representatives from 
the craft and small business organisations 
encourage the setting up of mutual guarantee funds and venture capital funds 
develop, within the framework of PHARE and TACIS, credit lines for SMEs to 
enable the use of "MICRO-PRÊTS" 
Ensure greater involvement of the representative organisations of the CEEC in the 
selection and implementation of measures 
Grant Community funds directly to the organisations with a view to autonomous 
management Addressee 
Comm. 
X 
X 
X 
X 
X 
X Other 
Comm. 
Inst. Memb. 
States 
X 
X 
^ 
12 October 1995 
Second European Conference on the Craft Industry and Small Businesses 
Berlin, 26-27 September 1994 
Replies of the European Commission 
to the proposals from the representatives of the craft industry and small businesses 
This document presents the replies of the European Commission to the proposals from 
the representatives of the craft sector and small enterprises which were expressed during 
the preparatory discussions, meetings of experts and workshops at the Berlin 
Conference. It is addressed to the Commission and other Community Institutions, the 
Member States and the craft and small industries sector. 
n.n.= the Commission does not wish to undertake this action given the present state of 
its budgetary and human resources. 
CUAKT INDUSTRY AND SMALL HUSINKSSKS IN COMMUNITY POLICIES 
1st General policy: Understanding the economic role of the sector 
Orientation Proposed actions Commission's reply 
i. demonstration of the 
economic and social role of the 
sector, particularly with regard 
to employment creation, by 
performing comparable 
statistical analyses at the 
European level and specific 
studies 
2. Encourage national and 
European economic and social 
research work setting up of a group of statistical experts from the national craft 
organizations, with responsibility for defining, orienting and 
launching useful statistical analyses in collaboration with 
EUROSTAT. 
performance of thematic studies on a European and national scale 
on subjects defined jointly between the craft organizations and the 
Member States 
organisation of a symposium on the subject of identification 
criteria and the identity of the craft industry and small businesse 
in the Member States This group will meet for the first time in December 1995 in Rome at 
Istituto Tagliacarne. the 
n.n. 
The Commission is prepared to support a request to organize a 
colloquium on the initiative of craft and small enterprises 
2nd General policy: Measurement of the impact of Community legislation 
—:——: 1 :: :—r. Orientation Proposed actions Commission's reply 
Take account of the effects of 
Community legislation on small 
businesses and the craft 
industry, by examining the 
effects at administrative, legal 
and fiscal levels, and by 
simplifying the administrative 
activity of businesses at each 
stage of their operation. examine the impact of new European legislation on the craft 
industry and small businesses by systematically applying the 
business impact assessment procedure Uo the craft industry and 
small businesses 
allow European craft organizations to take part in committees for 
administrative simplification and improvement of the business 
environment The impact forms are drawn up mainly for SMEs and in particularly 
important cases. Craft and small businesses will be involved only in 
exceptional cases. 
The UEAPME attends as an observer the Committee for administrative 
simplification set up by DG XXIII. 
adapt the principle of extended implementations for Community The idea of partly or completely exempting craft and small enterprises 
Ifulslntlon or that of total or partial rxctmptlon for small from implementing a directive in not nlwityt» in their interents, since (he 
enterprises to he examined on a crue basis or for certain consumer is often looking for the best-quality products. In addition, in 
occupations as a result of the investments required to conform to some cases Member States retain a certain amount of room for manoeuvre 
the legislation. at national level. 
develop within Europe "approved management centres" or "tax n.n. 
assistance centres " to help businesses with their accounting and 
fiscal obligations | 
3rd General policy: Strengthening of representation in the European Union and development of the craft industry's image 
Orientation Proposed actions Commission's reply 
1. creation of a department Change DG XXIH's organization The Commission is planning to amend the DG XXIII organization chart 
"Craft and Small enterprises in in the near future. 
DG XXIII 
2. Creation of a European Craft support for the formation of a Working Party to define the The Commission supports the idea of organizing a preparatory colloquium) 
and Small Business Academy as orientation of the Academy on this topic and awaits a proposal from the UEAPME on establishing 
a place of information, this Academy. ! 
exchange and dialogue 
support for the organisation of preparatory work (expert meetings, n.n. 
pilot programmes....) and for the creation of the Academy 
3. Facilitate dialogue and encourage the grouping of European representative organizations. The Commission is in favour of combining the European representative 
groupings among representative organizations in order to increase the representativeness of sector. 
organisations However, the initiative must come from the organizations themselves. 
develop a language training programme for the organisations' There were programmes of this type under FORCE and LINGUA (action 
managers within the framework of the LINGUA programme III), and there could also be some under LEONARDO (Section III. 1 .b) 
develop trans-national exchanges in the form of placement n.n. 
! schemes and facilitate the xchange of best practices 
I • ! 
j develop the system of "craft experts' meetings" with specific Five meetings on particularly targeted subjects (reducing the workload, j 
| themes and facilitate the exchange of the best practices. access to credit, statistics etc) were organized before the Berlin j 
Conference. DG XXIII is prepared to continue to support this type of j 
action (technical standards, environment, bakers, EBC, vocational ! 
training etc) within the limits of its budget. [ 
^ ^ 
put in place a training programme on European affairs for The LEONARDO programme (Section II) offers n support for drawing up 
managers, Imxlnexx advixorx and those In charge of crt[fl training plnnN in n InuiHnnlionnl context on proposnls from an enterprise 
organisations within the framework of the LEONARDO or an enterprise federation. 
programme 
ensure that the "guide to craft and small businesses The guide will be updated in 1996. 
organisations " is regularly updated and extended to cover the new 
Member States of the EU | 
4th General policy: Consu tation with the craft and small businesses representative organisations and inclusion in the Social Dialogue 
Orientation Proposed actions Commission's reply 
1. Include European craft and These organizations are consulted at the green and white paper stages, 
small enterprises organizations before the legal texts are drawn up. 
in the process of drafting 
Community texts '_ 
2. Participation of the In its Communication on the implementation of the protocol on social 
European craft and small policy (final Com 600 of 14.XII. 1993), the Commission classifies the 
businesses organizations in joint Committee "UEAPME / EUROPMI and other affiliated 
advisory committees and organizations" as an organization to be formally consulted before deciding 
working parties at Community on possible proposals on social matters. 
level, including the Social Within the framework of the Standing Committee on Employment, a 
Dialogue Liaison Committee of employers exists which is invited to the meetings 
where UEAPME represents the craft industry and the small and meium 
size businesses. The Commission supports the various members of this 
Liaison Committee, including UEAPME, so that those may hold a 
I I preparatory meeting preceding the plenary meeting of the Committee. 
5th General policy: Participation in Community programmes 
Orientation Proposed actions Commission's reply 
1. Take account of the specific analyse of the participation of small businesses and of their DG XXIII will ask for all evaluation reports on Community programmes 
nature and particular needs of intermediary organisations in Community programmes, Training to take account clearly of the participation of SMEs and craft enterprises. 
the craft sector in Community programmes, Research and Development programmes, as well as 
programmes, if need be, Structural Funds, including Community initiative programmes 
through budgetory allocations 
for small enterprises. 
2. Improve the information gear Community information down towards regional and local n.n. 
available on Community structures, notably through the creation of EICs in national craft 
programmes organizations | ) 
3. extend the principle of 
"feasibility bonuses" to allow 
Ktnnll buninoRKcn onsicr «CCOHH 
to Community programmes Craft and small enterprises are taken into account in the programmes 
initiated by DG XXIII; in the other Community programmes the principle 
of fcuflibility prcmiutm for SMEH is becoming increasingly common, 
particularly for research and technological development 
4. Encourage the European 
craft and small business 
organisations to participate on a 
national (national co-ordination 
committees) and regional level 
in the management of 
Community programmes address a Recommendation to the Member States In accordance with the principle of subsidiarity, the initiative should come 
from the Member States. 
6th General policy: Understanding and taking account of the specific situation of small businesses and craft industries 
Orientation Proposed actions Commission's reply 
1. Make it easier to take 
account of smalll and craft 
businesses who have particular 
needs due to their geographical 
distance, particularly, those in. 
outlying regions and remote 
islands locations organisation of a European symposium on small and craft 
business in remote island locations, to define ways of promoting 
local development as well as foreign trade The Commission has supported the organization of a conference on this 
topic in Martinique on 21-23 September 1995. 
2. Strenghtening of the craft 
and small business aspect in the 
European Union's 
Mediterranean policy analysis of the situation and of the experience gained, particularly 
with regards to cooperation and training 
organisation of a European symposium between the bodies and 
businesses targeted in LEADER and URBAN n.n. 
Will take place in 1996 
<3\ 
Vocational Training and proficiency of craftsmen, business managers and cntrcprcncurinl spouses 
1st General policy: Revaluation of apprenticeship and promotion of sandwich course training 
Orientaion Proposed actions Commission's reply 
1. Understanding and conduct a comparative study of existing sandwich training course CEDEFOP has carried out a study "Apprenticeship in the EU member 
exchange of existing sandwich systems already in existence in EU countries (CEDEFOP) states: a comparison" comparing apprenticeship systems in the Member 
course systems States (12) which will be available at the end of July 1995. 
2. Obtain recognition for Recommendation to the Member States The Commission does not rule out studying a measure of this kind, which 
apprenticeship within the seems useful at Community level in the context of an exchange of best 
legislation of all Member States experiences. 
3. Encourage cooperation organisation of experts meetings or working groups under the CEDEFOP could do this when approached by the craft industries. j 
between schools and businesses responsability of CEDEFOP 
introduction of specific financing for cooperative actions between A call for proposals was published under the LEONARDO programme j 
schools and businesses, within the LEONARDO programme (O.J.C. 128, 24.5.1995) j 
4. Enoourage exchanges of n.n. 
practices concerning the status 
of young people in training as 
well as that of 
apprentices ' instructors 
5. Create a positive image of production of a video film showing the qualities of and the This campaign will be launched in 1996. 
the craft industry and of the opportunities provided by the craft industry. 
career potential it provides 
amongst the young, their 
families and the teaching body 
6. Involve craft organisations in promote the participation of organizations in management The UAPME takes part in the work of the consultative committee for the 
the management of national and committees for Community programmes, particularly LEONARDO LEONARDO programme. 
European mechanisms for 
sandwich course training _J 
7. Encourage cooperation and formation of a working group with representation from DG n.n. 
exchanges between training XXIII, DG XXII, DG V, CEDEFOP, and European craft 
centres organizations 
The LEONARDO programme includes exchanges of instructors. 
encourage the LEONARDO programme to take them into 
I consideration | 
8. Establish equivalents professional training permit A "individual portfolio" pilot project was carried out between November 
between gonoral training and 1993 nnd February 1995, in response to the Council's ideas of a 
vocational training and achieve "vocational training laisser-passer" and the European professional 
mutual recognition of this passport "recommended by the European Parliament and the ESC in their 
training and of European opinions on the LEONARDO programme 
qualifications Moreover, the Directive 92/51/EEC pertaining to a second general system 
of recognition of vocational training should facilitate the mutual 
recognition of his training. The Commission plans to submit a draft 
Directive on the professions currently covered by the said Directives of 
I "transitional measures". 
2nd General policy: Qualifications of entrepreneurs and further training 
Orientations Proposed actions Commission's reply 
1. Adapt the training to new CEDEFOP to carry out a special analysis of the needs in these CEDEFOP produced a "Guide to training heads of enterprises" in 1990, 
needs: 1) training specific to different areas, including the approaches of the national craft but has no plans to publish it. 
each business, 2) general organisations 
training covering areas of 
European interest, 3) training implementation within the framework of the LEONARDO Under the LEONARDO (Section II) and LINGUA programmes, directors 
of trainers and apprenticeship programme of pilot training programmes, including language of SMEs are eligible for this type of training scheme. 
instructors, 4) development of courses (LINGUA), designed specifically for the heads of craft 
distance training and computer businesses 
assisted training techniques. 
support for the use of telematics training tools in training centres An invitation to tender was issued in connection with the LEONARDO, 
and businesses ADAPT and Télématique programmes. 
2. Develop the training of carry out an analysis of best practices and experience in the n.n. 
business advisors Member States | 
3rd General policy: Improve apprentice and post-apprenticeship exchange schemes 
Orientation ^ Proposed nctions Commission's reply 
1. Develop the skills of future eveluate existing experience n.n. 
entrepreneurs and employees 
support for twinnings between craft organizations Schemes of this type are possible under the LEONARDO programme 
initiate discussions on the social statutes of young trainees n.n. 
4th General Policy: Increase participation in Community programmes 
Orientation Proposed actions _^ Commission's reply 
1. Include the heads of craft evaluate the participation of the craft industry in European The new LEONARDO programme makes provision for heads of craft 
businesses, co-owner spouses training programmes industries, assisting spouses, apprentices and journey men in its 
and young people in the guidelines. 
orientation of the programmes | | 
^ 
^o 
0 5th General policy: Support the economic nnd social role of co-owner spouses 
Orientation Proposed actions Commission's reply 
1. Clarify the social role of carry out a study on the economic importance of the role of n.n. 
assisting spouses spouses, their legal situation and status 
examine the best existing national practices The Commission has supported a number of actions with this aim, i.e. it 
organized a colloquium on "The situation of assistant spouses in European 
SMEs" in Brussels on 25 and 26 October 1993, which produced a 
detailed report covering 12 Member States, and a conference on female 
heads of enterprises and assisting spouses in Thessalonica in March 1994. 
It also took part in the Paris Forum on simplification on 22 and 23 June 
. _99_ 
2. Support the formation of a produce a guide of co-owner spouse organizations The Commission considered it preferable initially to make a census of 
European network of training schemes for assisting spouses. Following an invitation to tender 
organisations working to m 1991, the FEM drew up a guide to such training schemes in 12 
support co-owner spouses Member States. 
support for the formation of a European network of associations The Commission has contacted the UAPME on this matter. 
for assisting spouses 
3. Encourage co-operation support through the European programme for equal opportunities Section II of the LEONARDO programme contains specific actions to 
between spouse organisations or LEONARDO assist female heads of enterprises and assisting spouses. 
and training organisations | | 
6th General policy: Improve the qualifications of co-owner spouses • 
Orientation Proposed actions Commission's reply 
2. Encourage training for incorporate training for spouss into the priorities of the The LEONARDO programme includes the topic of the training of 
spouses LEONARDO programme assisting spouses in its Section II. 
develop an experimental programme on transnational training The LEONARDO programme authorizes this type of training in its 
; [ Section II. 
7th General policy: European training policy to assist small businesses and the craft industry 
Orientation Proposed actions Commission's reply 
Incorporate the needs and priorities of the craft industry into the The Commission (DG XXIII) is in direct contact with the representatives 
"1996 -European year for education and training " programme of the craft sector and small enterprises. 
and ensure the involvement of craft and small business 
organisations in the preparation and running of this programme. j 
IMPROVING THE COMPETITIVENESS OF BUSINESSES 
1st General policy: Support for the introduction of Quality policies; taking account the particular constraints of small businesses in the 
technical regulations 
Orientation Proposed action Commission's reply 
2. Raise awareness amongst introduce a business impact assessment for European The Commission has already used impact assessment forms in connection 
national legislators and standardisation with technical directives. As regards standards, this is mainly independent 
certification bodies of the work carried out by the European standardization authorities. 
effects on small businesses of 
demands related to the study and analyse the problems arising for small and craft Under the EUROMANAGEMENT programme, the Commission has 
application of technical businesses in the application of standards audited 850 enterprises. The fmal report of the European coordinator 
regulations and standards, AFNOR will be published at the end of 1995. 
particularly with regards to distribution of the conclusions of EUROMANAGEMENT -
adjusment costs. Standardization, Certification, Quality 
3. Facilitate the involvement of Commission representation to the CEN The Commission has advised the CEN on several occasions of the need fol 
small business organisations in involve the SME and craft enterprises organisations in the work of j 
standardisation and certification standardization and certification. CERN is open to this question of 
work, at both national and participation. 
Community levels. 
Support for a European standardization office for SMEs and the The Commission is in agreement with supporting a European association 
craft businesses, capable of contributing to the work of european of SMEs and craft enterprises for standardization. The establishment of 
standardisation organisations \ this association is in hand. 
5. Train experts from craft encourage, within the framework of Community programmes, n.n. 
organisations and small trans-national training within craft organisations for European 
businesses in the areas of standardisation, certification and quality. 
standardisation, certification 
and quality | | , 
U 
6. Inform and support small launch of a a Euromanagement Quality programme for the craft The Commission hopes to launch this programme provided that budgetary 
businesses in their approach to Industry resources are increased. 
quality 
exchange of best practices in aid to improve quality in craft The Commission has already supported several events connected with this 
businesses and intends to continue its support for this type of action. 
support for the creation and distribution of effective teaching tools Requests for finance for actions of this type can be addressed to the 
for raising awareness and help with self-training | Commission under the LEONARDO programme. 
2nd General policy: Involvement in environmental protection policies 
Orientation Proposed actions Commission's reply 
1. Adapt national and European incorporation into Community legislation of the principle of a The Commission has begun work on codification 
regulations to the specific needs longer period of adaptation for small businesses in the 
of small and craft businesses implementation of regulations, and ifnecesssary, provide for an 
exemption system in matters not relating to essential hygiène, j 
health and safety requirements 
2. Ensure the involvement of The Commission will consult the private sector; it will also include the 
natioal and European . SME and craft enterprises associations. 
organisations in national and 
European regulation work 
3. Facilitate the respect of develop, within the framework ofEIB and EIF funds, preferential At the request of the European Parliament, a programme on the subject of 
regulations by businesses aid for investment by businesses to use environmental protecting "growth and environment" was implemented in 1995; it involves a 
technology. possible total of ECU 150 million. 
-
4. Inform and support facilitate trans-national training for craft organisations experts n.n. 
enterprises by establishing new within the framework of Community programmes. 
support mechanisms 
support for the creation and distribution of effective awareness The Commission has requested the EICs to produce a guide to the 
raising teaching tools, including for self-training environmental management of enterprises 
a European study on Member States' practices regarding support n.n. 
for the introduction of environmental mechanisms in craft 
1 businesses and an analysis of best practices 
support within the framework of the Structural Funds for the 
formation of resource and advise centers to assist the craft 
industry in environmental matters 
support for the creation of training and qualification modules on 
the environment within initial and further training programmes 
Take account of the needs of small businesses in the Ecoaudit 
system 
launch of a EUROMANAGEMENT Environment policy in favour 
of small and craft businesses n.n. 
n.n. 
The Commission will support 50 enterprises for the ECO-AUDIT 
certification under the new EUROMANAGEMENT Environment 
programme. 
3rd General policy: Development of research, transfer of technology and support for innovation 
Orientation Proposed actions Commission's reply 
1. Recognition of the current 
situation analysis of the actions and measures taken in the Member States 
relating to suppport for innovation and for the transfer of 
technology in the craft industry The preparatory work for the Berlin Conference and the Commission's 
studies have shown that it is very exceptional for small enterprises to talce 
part in Community work on research and development 
2. Encourage the transfer of 
technology across sectors and 
geographical areas and promote 
access to leading-edge 
technology distribution of a guide on centres of technology transfer 
support the involvement of small businesses in the 4th Community 
R&D programme Under SPRINT, the Commission has published a guide to technology 
transfer centres. 
Commission studies have shown that it is exceptional for small and craft 
enterprises to take part in Community programmes, including the 4th 
RTD programme. 
4th General policy: Improve Business Cooperation 
Orientation Proposed actions Commission's reply 
1. Analyse specific problems of 
craft businesses organize meetings between experts from Member States 
organisations When required, the Commission needs experts from the craft 
organizations in the Member States. 
2. Improve Community 
cooperation tools in favour of 
small businesses participation of craft businesses within the 
"EUROPARTENARIAT" scheme 
facilitate the development of craft- INTERPRISE especially in 
cross-border regions 
support craft industry pilot projects for cooperation At the EUROPARTENARIAT Conference in Dortmund on 20 and 21 
March 1995, one third of the exhibitors were craft enterprises. 
INTERPRISE projects to assist craft enterprises have been conducted and 
will be continued. 
The Commission has initiated a cooperation programme to assist craft 
enterprises supported by their intermediaries. 
o 
3. Encourage the creation of 
combined marketing action* 
(guides, buying, syndicates, 
group participation in trade 
fairs and purchasing actions) support the joint participation of craft businesses of at least three 
Member States to trade fairs rind exhibitions n.n. 
5th General policy: Encourage the use of industrial artistic design 
Orientation Proposed actions Commission's reply 
1. Promote design education 
and training produce a guide of bodies specialising in training and advice on 
industrial design 
support the design and distribution of training modules 
particularly within the framework of the LEONARDO programme Under the SPRINT programme, the Commission has produced a guide on 
this topic. 
The Commission is open to any proposals on this matter. 
2. Create a European award for 
craft design set up a group of experts to develop the principle 
launch a pilot project The Commission has given financial support 
The Commission is awaiting a joint evaluation proposal from the 
organisations concerned. 
6th General policy: Support for the creation and transfer of businesses 
Orientation actions Commission's reply 
1. Identify the needs and 
specific situation of small and 
craft businesses exchange of best practice on help available for business 
creation/transfer Under the integrated programme in favour of SMEs and the craft sector, 
the Commission adopted a Recommendation on the transfer of SMEs and 
craft enterprises on 7 December 1994, and is organising a forum on these 
subjects in Madrid on 16 and 17 November 1995. 
2. Improve training prior to 
business creation or transfer support training prior to business creation or transfer within 
Community programmes 
encourage business creators to take part in prior training The Leonardo programme offers support for heads and creators of 
enterprises. 
^ ^ 
3. Improve conditions for identify the. administrative difficulties associated with the The Commisssion supported the organisation ol u forum on simplifying 
business creation formalities of establishing a business administration, held in Paris on 19 and 20 June 1995. 
encourage the setting up of business formality centres Such centres already exists in regions covered by the structural funds. 
exchange of best practices by means of conferences The Commission supports and takes part in conferences on these topics 
launch a pilot project for venture capital specially adapted for In 1989, the Commission initiated a pilot programme on "seed capital" 
small and craft businesses and, through the structural funds, especially through the EC BIC 
network, supports the creation of several assistance funds. In those 
regions that benefit from the structural funds programmes, the EC BICs 
provide entrepreneurs with support by means of advices and 
comprehensive assistance. 
improve European support programmes for the creation of 
businesses by women n^n 
4. Improve the conditions for identify the negative factors that hinder transfer: report and The Commission will forward a Recommendation on this matter to the 
business transfer recommendation Council. 
analyse best practices in the Member States In 1994, the Commission organised a seminar on this topic, which was 
discussed in the forum on simplifying administration held in Paris on 19 
j 1 and 20 June 1995. 
FINANCING AND ACCESS TO CREDIT 
1st General policy: Understanding of the specific situation of small businesses and the craft industry, including that of female heads of 
businesses» with regard to financing and access to credit 
Orientation Actions __ Commission's reply 
draft a communication on 
the exchange of best practices regarding the financial In November 1993 the Commission presented a communication on the 
management of businesses question of financing SMEs, which it will follow up by a communication 
access to credit on a national and European level in September 1995 concerning the capital markets for fast-growing 
enterprises. 
consoUdatio of capital Before the end of 1995 the Commission will present a communication on 
!_____: other forms of finance 1 the capital markets for fast-growing enterprises. 
2nd General policy: Improve the relationship between banks and business 
Orientation Actions ' Commission's reply 
1. Encourage cooperation support a working group comprised of representatives from the The Commission supports the "Round table of leading representatives 
between banks and businesses sectors concerned to propose new practical measures for adoption from the banking sector", which comprises representatives from 15 banks 
and 7 SME organizations, and which makes proposals on these matters 
2. Encourage the creation and study and analyse the existing systems in Member States The Commission is awaiting a proposal on these centres from the private 
development of management sector. 
centres and centres for financial 
and accounting formalities J 1 . 
3rd General policy: Offer products and financial conditions adapted to the needs of small businesses 
Orientation Actions Commission's reply 
1. Develop mutual guarantees set up a system of mutual guarantees In countries where they do The Commission supported the creation of the European Association for 
not already exist via partnerships between businessmen, banks, mutual Guarantees, which supported the creation of SCM (mutual 
public authorities and European institutions guarantee societies) in Portugal and is reorganizing the operation in 
; Greece. 
2. Take into account the lead EIB and EIF funds towards investments in standardisation Under the pilot project "Growth and environment", the Commission 
specificity and constraints of Issues support the purchase of clean technologies through a system of reduced 
small businesses within the guarantee premiums with neutral guarantees. 
framework of financial 
conditions creation of global incentives (EIB) granted to financial or The EIB grants global loans totalling between 2 and 3 000 million ecus 
guarantee institutions in order to develop "micro-loans" to per year. In 1994/95, the pilot project with reduced interest rates for job 
individual companies. creation, at ECU 1 000 million, was invested in the market for projects 
[ [ ( which would create new jobs in SMEs. { 
BORDER AREAS 
1st General Policy: Improve the procedures relating to the formalities of transnational activities 
Orientation Actions - Commission's reply 
1. Analyse the obstacles and produce a report by the Commission on the constraints and In 1996 the Commission will present a full report on the completion of 
technical barriers presented difficulties encountered by small businesses in all border zones the Single Market and any obstacles to its completion 
2. Continue the work begun on establishment of an "Appeal Centre" at Commission level to deal As a rule, legal proceedings should be resolved bilaterally. However, 
simplification and the with disputes, concerning obstacles and barriers encountered by enterprises may submit complaints to the Secretariat General of the 
administrative, technical,- legal small businesses, that cannot be solved locally. Commission. 
and fiscal deregulation 
necessary to secure real encourage the setting up of discussion and exchange groups for n.n. 
freedom to provide trans- each border zone to deal with the constraints upon competition 
national services between local and neighbouring businesses.Launch a pilot 
programme to promote dialogue (meeting days) (INTEREG) 
encourage the creation of formality centres which would advise Following an invitation to tender, the Commission is supporting the I 
businesses or carry out the formalities for them, including creation of six centres for dealing with formalities, in addition to the 
taxation formalities. existing centres. 
4. Speed up the work to The Commission is naturally in favour of this guideline and is continuing 
introduce a final system for to study the practical aspects. 
applying VAT in the country of 
origin | \ I ; 
2nd General Policy: Improve the general operation conditions of businesses 
Orientation Actions Commission's reply 
1. Improve the information under the INTERREG programme, support the production of n.n. 
available to businesses on the brochures and transregional information documents for craft 
conditions for pursuing their businesses 
activity in the adjacent country 
and on market knowledge and 
the potential for development. 
Support the translation of 
useful regulations into the the 
language of the neighbouring 
country. | ; | j 
-^ 2. Encourage business authorize "INTERPRISE" or similar meetings between the two The Vademecum for the INTERPRISE programme stipulates that there 
cooporntion and pnrtnenthip border regions , and not necessarily between three countries must be at least three partners from three different Suites, 
meetings to share transborder 
information create a programme to assist direct cooperation between two ïn 1994 the Commission initiated a programme for SMEs on cooperation 
businesses to support the follow-up of cooperations projects, in between craft enterprises and other partners, and another programme on 
the areas of commercial, technical and R&D cooperation research and technological development aimed specifically at small 
; . ; enterprises. 
3. Introduce training under the LEONARDO programme, grant priority to transborder This can be done under the LEONARDO programme (Sections I, II or 
programmes adapted to trans- training III). 
border activity, dealing s 
essentially with language, 
economic and cultural aspects 
4. Support for cooperation n.n. 
between bodies representing co-
owner spouses across adjacent 
regions - • . ; 
5. Support for apprentice support from the LEONARDO programme The Commission supports the exchange of apprentices between 
exchanges between border enterprises under the LEONARDO programme. 
businesses ; [___ • [__ ; 
3rd General Policy: Support for the heads of businesses • 
Orientation • Actions - Commission's reply 
1. Develop transregional to develop and improve the Commission initiative to support the Within the framework of the INTERREG programme, the Commission 
support structures for SMEs in creation of trans-border offices has supported several initiatives towards that goal. 
the private sector to provide 
assistance with administration, support the setting up of a network of transborder offices n.n. 
information promotion and 
cooperation with businesses envisage a medium to long term prospect for these transborder The Commission is very much in favour of cross-border offices, even if it 
from neighbouring countries offices ; has difficulties in initiating new operations. The rule which applies is the 
- principle of gradual reduction of the Commission's support, once the 
project has been launched, in order to encourage cross-border offices to 
be viable in the medium term. --, 
2. Encourage the training of set up, within the framework of the LEONARDO programme, a Under the LEONARDO programme, support can be given for devising 
economic trans-border advisors training programme on cross-border activities for business resources to support innovators and for their dissemination. 
advisors | 
COOPERATION WITH CENTRAL AND EASTERN EUROPE 
cN 1st General Policy: Understanding of the situation of small businesses in Central and East European Countries 
Orientation Actions • Commission's reply 
Socio-economic analysis of the launch of a study to provide legal and economic statistics The Commission has cofinanced a study on this topic since these countries 
situation and needs concerning the situation and role of small businesses have embraced the market economy. In addition, the Economisch Instituut 
voor het Midden-en Kleinbedrijf (EIM), the organization responsible for 
the European Observatory for SMEs, will compile the available data on 
SMEs in these countries so that these references can usefully supplement 
1 • 1 the European Observatory's data. 
2nd General Policy: Understanding of local representative organisations and assistance for their development 
Orientation Actions - Commission's reply 
Encourage the creation and identify existing organizations n.n. 
development of support 
structures (chambers of support for cooperation and twinning with craft industry chambers The COOPME programme, financed under PHARE, covers the 
commerce and craft industries) and professional organizations in the EU, especially through cooperation and twinning schemes 
to be run by businesses programmes for exchanges and training for middle management 
and consultants 
financial assistance for the formation and development of Some schemes have been financed by the Commission 
organizations 
support for the secondment of managers from EU organizations in n.n. 
order to assist in the formation of organisations in the CEEC I 
3rd General Policy: Encourage the implementation of national or regional policies in favour of craft industries and small businesses 
Orientation Actions Commission's reply 
Assist governments in the information: training for governement officials notably through The Commission takes some officials from these countries into its 
implementation of measures in training placements in EU Member state administrations departments concerned with craft and small and medium sized enterpriser, 
favour of the development of but the PHARE programme has no specific section, for the craft sector, 
craft industries and small 
businesses | ; I ; 
^ 4th General Policy: Encourage the development of craft and small enterprises 
Orientation Actions . Commission's reply 
1. Organize specific on the spot finance pilot In-service training programmes within craft n.n. 
training programmes businesses in the areas of technological development, financial 
management, acountig and marketing 
put into place pilot sandwich course programmes, pilot training Schemes of this kind are already in existence in most of these countries; 
programmes entrepreneurial spouses, language training the Commission is planning to initiate a number of supplementary 
programmes for business advisors and heads, training schemes provided that the budgetary appropriations are increased. 
programmes for trainers, designed in collaboration with EU 
organisations, within the framework of PHARE and TACIS and in 
partnership with EU organisations: 
2. Encourage commercial and implement a pilot programme, within the framework of PHARE Under the PHARE programme, the UAPME organizes programmes of 
technological cooperation with and TACIS, for personalised support for businesses, through exchanges and secondments of experts from the European Union. 
EU businesses partnerships between EU and CEEC organisations in the form of 
assignments by experts from chambers of craft industries 
financial assistance for CEEC craft businesses to take part in EU The Commission has established programmes to promote experts which 
trade fairs supplement the national programmes. 
financing of the cost of cooperation, mainly through INTERPRISE The Commission has initiated a scheme for this. 
and JOPP between CEEC and EU enterprise 
develop, with the participation of the organisations concerned, a n.n. 
partner search network and support cooperation between 
businesses ; 
3. Ensure the particular set up "transborder development bureaus" of the craft and small n.n. 
development of craft businesses business organisations of the regions concerned 
in the regions bordering the EU 
countries, particularly within support the inter-business co-operation, notably through 
the framework of the PHARE- partnership fairs, entrepreneurs 'meetings and specialised trans-
INTERREG programme | border fairs (PHARE, INTERREG). | n.n. 
Orientation Actions . , -• . Commission's reply 
4. Improve the finnncinl organise a working group composed of banking experts and n.n. 
environment of businesses representatives from the craft and small business organisations 
encourage the setting up of mutual guarantee funds and venture 
capital funds The Commission wishes to encourage these schemes and has supported a 
pilot scheme on venture capital in Hungary. 
develop, within the framework of PHARE and TACIS, credit lines 
for SMEs to enable the use of "micro-loans" This type of loan exists already in Hungary and is being studied in 
I ; I Rumania and Bulgaria. 
5th General Policy: Redeployment of PHARE • TACIS procedures 
Orientation Actions Commission's reply 
1. Open up PHARE and ensure greater involvment of the representative organisations of n.n.. 
TACIS operations more the CEEC in the selection and implementation of measures • 
towards the craft and small 
business organisations grant Community funds directly to the organizations with a The PHARE programme has no provision for operations of this kind, 
view to autonomous management even in the case of calls for proposals; under the COOPME programme, 
in order to maintain clear and transparent criteria, a direct agreement is 
possible between associations (such as Eurochambers) and then with their 
members. 
2. Intensify coordination The Commission is in favour of this, 
between Community and 
national instruments j | 
ISSN 0254-1475 
COM(95) 502 final 
DOCUMENTS 
EN 08 04 10 
Catalogue number : CB-CO-95-544-EN-C 
ISBN 92-77-94704-7 
Office for Official Publications of the European Communities 
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