COMMISSION OF THE EUROPEAN COMMUNITIES 
COM(94) 221 final 
Brussels, 07.09.1994 
COMMUNITY ACTIONS TO ASSIST SMEs AND THE CRAFT SECTOR: 
1. FOURTH COMMISSION ACTIVITY REPORT ON ENTERPRISE POLICY 
- YEAR 1993 -
2. COMMISSION REPORT ON COORDINATION OF THE ACTIVITIES IN 
FAVOUR OF SMALL AND MEDIUM-SIZED ENTERPRISES (SMEs) 
COMMUNITY ACTIONS TO ASSIST SME'S AND THE CRAFT SECTOR 
A 
On 25 May 1994 the Commission adopted an integrated programme to assist SMEs and 
the craft sector. 
The aim of this programme is to outline an overall programme for the actions - both 
current and new - to assist SME's, and so to improve the effectiveness and the 
visibility of the initiatives to be taken both by the Member States and by the European 
Union. All the current and new actions were presented in the Integrated Programme in 
the form of a table, which is reproduced on the following page. 
To meet these requirements of visibility and cohesion, it appeared necessary to 
combine the various items of information on the policies of the Union to assist SMEs 
which the Commission undertook to provide in the context of the Decision concerning 
a multiannual programme (1993-1996) to assist SMEs and the craft sector. 
The object of the present communication is to present in detail the current actions 
falling under the enterprise policy and other Community policies. 
Accordingly, the present document comprises: 
the report on the measures carried out in 1993 under the multiannual programme 
to assist SMEs , and 
the report on the coordination of Community measures to assist SMEs conducted 
in the context of other Community policies, with particular emphasis on regional, 
research and vocational training measures . This report which includes a 
summary, covers the period from 1991 to the end of 1993, and presents 
quantitative data on the impact of these programmes on SMEs. 
The Commission considers that this overall presentation of the Community measures 
and policies to assist SMEs will contribute to improving the visibility and coherence of 
the various policies of the European Union to assist SMEs and the craft sector, thus 
meeting the concern expressed by the Council and all the parties concerned with 
enterprise policy. 
1 COM(94)207 final of 3 June 1994 
2 Council Decision 93/379/EEC of 14.06.1993, OJ L161, 2.7.1993 3 
Report provided for in Article 3 (4) of Decision 93/379/EEC 
Report provided for in Article 5 of Decision 93/379/EEC 
A <su 
INTEGRATED PROGRAMME IN FAVOUR OF SMEs 
IS. CONCERTED ACTION _______,___^^ 
Objective : SME Environment Contents Financing 
Improving the administrative environment New measure : 
° Group on Administrative Simplification 
U. CONCERTED ACTION ^__ 
Objective : Support Measures for SMEs Contents Financing 
Stimulating measures in favour of SMEs New measures : -
° Forum on services to assist enterprises 
° Stimulating demand 
2.1 COMMUNITY CONTRIBUTIONS 
Objective : SME Environment Contents Financing 
Improving the administrative environment Measures being taken : 
, ° Business impact assessment system SME Multiannual Programme 
- New measure : SME Muhiannual Programme 
0 Cost benefit analyses 
Improving the legal and fiscal environment New measures : 
° Examine existing legislation SME Multiannual Programme 
0 Transmission of entreprises SME Muhiannual Programme 
° Fiscal environment SME Muhiannual Programme 
0 Late payments SME Muhiannual Programme 
° Local Services SME Muhiannual Programme 
2.1. COMMUNITY CONTRIBUTIONS . 
Objective : Support Measures for SMEs Contents Financing 
Improving access to finance and credit Measures being takenj 
° SME access to financial instruments : SME Multiannual Programme 
i.e. venture capital, mutual guarantee 
schemes, secondary markets 
New measures : 
0 capital markets SME Multiannual Programme 
° private capital for RTD 4th Framework Programme RTD 
° New financial engineering instruments SME Initiative 
° Round Table : analysis and follow up EIB + EIF + SME Initiative 
° Improving intervention measures of Structural Funds and EIB Global 
Community instruments Loans 
Cooperation Measures being taken : 
° Partner search networks SME Multiannual Programme 
(BC-NET, BRE) 
0 Direct partnership : Europartenariat, SME Multiannual Programme 
INTERPRISE 
° Sub-contracting : market transparency and SME Muhiannual Programme 
pilot projects 
New Measures : 
° Support after initial partnership contact SME Muhiannual Programme (crafts 
pilot project) + SME Initiative 
° enterprise networks SME Initiative 
* ° production and distribution networks SME Initiative 
° sub-contracting : trade shows, promotion 
centres, networks, quality strategy SME Multiannual Programme + SME 
Initiative • 
Management Quality, adapting SMEs to Measures being taken : 
structural changes and to the Internal ° support pilot project, similar to SME Multiannual Programme 
M , * EUROMANAGEMENT 
° Small entreprises, craft, retail, social SME Muhiannual Programme 
economy 
° Creators and young entrepreneurs SME Multiannual Programme 
New Measures : 
° intermediaries potential for assistance SME Initiative 
° support for SMEs with growth potential SME Multiannual Programme + SME 
(stimulate pilot projects) Initiative 
° assistance for managers and for workers SME Initiative + ADAPT 
threatened with industrial change 
" Training LEONARDO Programme 
Other actions Measures being taken : 
° Development and improvement of EIC SME Multiannual Programme 
network 
New Measures : 
° Improved access to RTD 4° Framework Programme RTD 
° Information Society and SMEs SME Initiative 
Principal Sources of Finance 
Multiannual Programme for SMEs 1993-1996: Ecu 112.2 million 
Community Initiative for SMEs 1994-1999: Ecu 1 billion 
Objective 4 : ADAPT Initiative 1994-1999: various projects for SMEs within Ecu 1.4 billion allocation 
Structural Funds 1994-1999: Community Support Framework and other Community Initiatives 
4th Framework Programme RTD-1995-1999: various projects for SMEs within Ecu 12.3 billion allocation 
EIB Global Loans: Ecu 1 billion for SME competitiveness 
Interest rates (2%): Ecu 45 million for 1994 - Ecu 22,75 million for 1995 
EIF: Ecu 2 billion for loan guarantees with future possibility of direct participation. 
FOURTH COMMISSION ACTIVITY REPORT 
ON ENTERPRISE POLICY 
- YEAR 1993 -
4 C 
INTRODUCTION 5 
I. REMOVAL OF UNDUE ADMINISTRATIVE, FINANCIAL AND LEGAL 
CONSTRAINTS 7 
1.1 Administrative simplification and assessment of the impact of Community 
legislation 7 
1.2 Improving the financial environment of enterprises 7 
1.2.1 Round table of senior members of the banking sector 7 
1.2.2 Payment periods in commercial transactions 8 
1.2.3 Stimulating the financial environment 9 
1.3 Transferring businesses , 9 
1.4 Cooperative societies, mutual societies and associations 10 
1.5 Improvement of external consultation 10 
II. INFORMATION AND SUPPORT FOR BUSINESSES 12 
2.1 Information for businesses 12 
2.1.1 Euro Info Centre network 12 
2.1.2 Development of the Social Economy EIC 14 
2.1.3 European Week for Business 14 
2.1.4 Miscellaneous information measures 16 
2.2 Measures in support of businesses 18 
2.2.1 Training and consultancy 18 
EUROMANAGEMENT - Preparing SMEs for the internal 
market 18 
EUROMANAGEMENT - standardization, certification, quality 
assurance and safety at work 
Small enterprises and craft businesses 
2.2.2 Finance 22 
Seed capital 22 
Mutual guarantee societies 23 
2.2.3 Access to markets 23 
Euromarketing 23 
Helping SMEs to work with central and eastern Europe 24 
SMEs and public procurement 25 
2.2.4 Technology 26 
SMEs and Community RTD activities 26 
VALUE-SME pilot action 26 
III. PROMOTION OF COOPERATION AND PARTNERSHIP 27 
3.1 The Business Cooperation Network (BC-NET) 27 
3.2 Business Cooperation Centre (BRE) 32 
3.3 Europartenariat and Interprise 33 
3.3.1 Europartenariat 33 
3.3.2 INTERPRISE .........36 
3.4 Subcontracting 38 
IV. POLICY ASSESSMENT AND DEVELOPMENT 41 
4.1 Improved knowledge of SMEs 41 
4.1.1. Statistics .41 
4.1.2 Definition of SMEs 42 
4.1.3 European SME observatory 42 
4.2 Policy development and preparation of new projects 43 
4.2.1 Commerce and distribution 43 
4.2.2 Cooperatives, Mutual Societies and Associations 46 
Annex 1 : List of principal texts adopted in 1993 relating to the Communities' 48 
enterprise policy 
Annex 2 : EUROPARTENARIAT Methodology 50 
Annex 3: INTERPRISE Methodology 51 
INTRODUCTION 
1993 represented a fundamental stage as regards the objectives, measures and development of 
Community enterprise policy. 
The entry into force and adoption of several major pieces of legislation mark a new 
institutional framework and reinforce and extend Community action to help businesses, and 
particularly SMEs, in the European Union. Thus, 1993 saw the birth of a second generation 
Community enterprise policy, closely coordinated with the policies of Member States. 
A quick glance at the key dates indicates the importance of the past year from three 
viewpoints: 
From the institutional viewpoint: 
Entry into force of the European Union Treaty on 1 November 1993: Article 130 
makes enterprise policy official (it is currently based on legal autonomy) and the 18th 
final declaration commits the Commission to take account, in its legislative proposals, 
of costs and benefits to the Member States' public authorities and all the parties 
concerned. 
From the general economic viewpoint: 
Commission proposal of 12 January 1993 on the establishment of the European 
Investment Fund, which will guarantee loans for investments by SMEs. 
Commission proposal of 9 July 1993 on the provision of Community interest subsidies 
on loans for SMEs extended by the EIB under its temporary lending facility 
Commission White Paper on growth, competitiveness and employment - the challenges 
and ways forward into the 21st century. This white paper proposes a complementary 
strategy to help enterprises, and particularly SMEs, in order to ensure the proper 
mobilisation of economic operators for growth, competitiveness and employment. 
From the enterprise policy viewpoint: 
Council Decision of 14 June 1993 on a multiannual programme of Community 
measures to intensify the priority areas and to ensure the continuity and consolidation 
of policy for enterprise, in particular SMEs, in the Community. This decision allocates 
a budget of ECU 112.2 million to enterprise policy for 1993-1996. 
SME Council Resolution of 11 November 1993 on strengthening the competitiveness of 
enterprises, in particular of SMEs and craft enterprises, and developing employment. 
Conclusions of the European Council held in Brussels on 10 and 11 December 1993. 
encouraging the creation of a fiscal, financial and administrative environment 
favourable to SMEs. 
This report fulfills the requirement laid down in both Article 6 of the Council Decision of 
28.7.1989 on the improvement of the business environment and the promotion of the 
development of enterprises, and in particular small and medium-sized enterprises, in the 
Community (OJ L 239 of 16.8.1989), and Article 3 of the Council Decision of 14 June 1993 
referred to above (OJ L 161 of 2.7.1993). 
I. REMOVAL OF UNDUE ADMINISTRATIVE. FINANCIAL AND LEGAL 
CONSTRAINTS 
1.1 Administrative simplification and assessment of the impact of Community legislation 
The Commission continued its work on administrative simplification procedures aimed at 
minimizing administrative, legal and financial burdens and costs to business. Particular 
reference continued to be paid to the problems for SMEs and the cumulative impact on them 
of complying with Community legislation. 
The work included consolidating and strengthening the Commission's business impact 
assessment system and the improvement of consultation procedures with business 
organisations. In line with the Commission's undertaking to improve the transparency and 
openness of its working methods, the Commission's proposed legislative programme is now 
published in the Official Journal. Advance warning is given of the Commission's intentions 
for legislation with an indication of those proposals which will be subject to the completion 
of a business impact assessment, and those which will be subject to broad advance 
consultation procedures with interested outside parties. 
Impact assessments themselves are also made publicly available through notification of their 
existence in the Official Journal. Under the impact assessment system around 30 proposals 
for legislation from the Commission's 1993 programme were identified as needing an impact 
assessment. A number of these proposals were presented by the Commission and discussed at 
the regular meetings with the SME business organisations. 
On 29 April 1993 the Commission held a working seminar with Member States and business 
organisations to discuss the impact assessment system critically and consider possible 
improvements. The main outcome of the seminar was the need for the Commission to 
consider the use of more sophisticated cost-benefit analysis when considering legislative 
proposals, although it was recognised that this would have considerable resource 
implications. 
1.2 Improving the financial environment of enterprises 
1.2.1 Round table of senior members of the banking sector 
At the request of the Commissioner for enterprise policy, Mr Vanni d'Archirafi, the 
Commission set up a Round Table comprising senior members of the banking sector from 
several Member States. This group had two objectives: 
in the medium term: to improve the allocation of private finance for SMEs (in 
consultation with financial circles, to identify best practices, assess the possibility of 
transposing them to Member States, and suggest new approaches fostering effective 
partnership between financial institutions and SMEs); 
in the short term: to prepare recommendations on the use of the European Investment 
Fund (EIF) (with respect to its status and indépendance) and subsidized loans (SME 
facility). The main points of the recommendations were submitted to the Council of 
Ministers responsible for SMEs at the Council meeting on 11 November 1993. 
The services responsible for enterprise policy provided the secretarial services for the Round 
Table (organizing 5 members' meetings and the expert working party). Several other 
Directorates-General concerned were invited to attend its discussions. 
The work led to adoption by the Round Table of the recommendations submitted to the SME 
Council on 11 November 1993. 
1.2.2 Payment periods in commercial transactions 
In order to determine to what extent the question of payment periods should be dealt with at 
Community level, and what measures, if any, should be proposed, consultation took place 
with the circles concerned during the first half of 1993 on the basis of the Commission staff 
working paper SEC (92) 2214. 
Over 130 written positions were received by the Commission following publication of the 
working paper. The ESC gave its opinion on 30.6.1993. In its Resolution of 21 April 1993 
on subcontracting and public procurement, the European Parliament considered that this 
question necessitated harmonization at European level and requested the Commission to 
submit specific proposals. A public hearing was arranged by the Commission following the 
request from the European Parliament on 7-8 July 1993 in Brussels. Some 30 professional 
organizations were represented. 
Consultations confirm that enterprises face serious problems in most Member States and 
sectors, and the situation has recently been deteriorating. The majority of the organizations 
consider that Community measures should be envisaged. The results of the consultation are 
currently being evaluated internally. 
Business circles were pleased that the Commission was taking an interest in a problem of 
very practical concern to enterprises and had given all groups concerned the opportunity to 
express their point of view. 
1.2.3 Stimulating the financial environment 
A Communication to the Council was prepared in order to analyse the financial problems 
facing small and medium-sized enterprises in the European Community and to indicate 
possible solutions worthy of further examination. The Communication was approved by the 
Commission on 19.10.19931 
The main targets are the Council of Ministers and the governments of the Member States, as 
most action will have to be taken at national and/or regional level; financial institutions and 
organizations providing advice and training to SMEs are also concerned. 
During the preparation, widespread discussions were held with interested parties and within 
the Commission services. Formal inter-service consultations were carried out between June 
and October 1993; the Article 4 Consultative Committee discussed the draft Communication 
on 16th July, 1993, as did the Trade and Distribution Consultative Committee on 22nd 
October, 1993. 
1.3 Transferring businesses 
Every year, too many businesses, and particularly SMEs, disappear because they have been 
unable to resolve problems relating to their transfer. Aware of the economic repercussions 
which this difficult operation can entail, the Commission is currently examining possible 
measures to safeguard the fabric of SMEs. It is basing its ideas on the proposals which 
emerged from the symposium which it organized on 29 and 30 January 1993 with around a 
hundred experts from all Member States. 
These proposals concern mainly measures aimed at reducing tax pressure and creating a legal 
environment which facilitates the transfer of an SME in order to ensure its continuity and the 
volume of employment. 
The conclusions of the symposium were submitted to participants, professional organizations 
and the Article 4 Committee. 
COM(93)528 
The proceedings of the symposium are being prepared. 
Other consultations are in progress. 
There is growing interest among those concerned in the subject of transferring businesses, 
including a proliferation of seminars, conferences, articles, etc. 
1-4 Cooperative societies, mutual societies and associations 
On 11 March 1992 the Commission submitted to the Council three proposals for regulations 
on the statutes for a European Association, a European Cooperative Society and a European 
Mutual Society. The purpose of these proposals is to institute European legal statutes 
permitting cooperative societies, mutual societies and associations to develop cross-border 
activities without losing their specific status as partnerships or suffering discrimination 
compared to companies with share capital. 
Following the opinion issued by the European Parliament in January 1993, the Commission 
submitted amended proposals on 6 July 1993. 
During the second half of 1993, the Belgian Presidency provided the necessary impetus to 
complete the first technical reading of the "cooperative society" dossier (ECS). 
The progress made in finalizing the legislation laying down the statutes of the European 
Company permitted faster headway, as it was possible for several of the wordings which had 
been approved by the delegations to be reused for the ECS (e.g. transfer of the registered 
office, hierarchy of laws applicable, conditions of eligibility for members of the governing 
bodies, etc.). 
Furthermore, a study was launched in September 1993 on "Direct taxes applicable to 
associations". 
1.5 Improvement of external consultation 
European business organizations 
In the spirit of openness and transparency which it has applied since its establishment, the 
Commission maintained close contact with trade organizations representing the particular 
interests of SMEs, craft enterprises, commerce and the social economy. 
10 
Monthly meetings with representative organizations permitted discussion of the activities of 
the services of the Commission and other departments. Representatives of other Directorates-
General were invited to explain their work and discuss it with business people. 
Commissioner Vanni d'Archirafi, responsible for enterprise policy, took part in two of the 
meetings. Commissioner Flynn came with him to discuss with the organizations the questions 
raised by the White Paper on Growth, Competitiveness and Employment. 
The Commission was pleased to find that agreement on mutual representation had been 
reached among seven European organizations representing SMEs and craft enterprises with a 
view to implementing consultation and negotiation procedures under the Protocol on Social 
Policy. 
Commerce 
Consultation of the commercial sector on legislation affecting its activitiy continued under 
the CCD, which was renewed for 1993-1995. The main subjects considered by the CCD in 
1993 were: payment delays, statistics, continuing work on codes of practice, particularly on 
new methods of payment, consumer affairs, foreign trade and the problems of commercial 
SMEs. 
The plenary meeting of the CCD on 5 March 1993 was held on the subject of "Trade, the 
pillar of the single market" and was attended by over 250 participants (CCD, experts, 
officials from the Commission and Member States, and the press). It was a significant event, 
as it is every year: declarations made on this occasion, and contacts established between the 
Commission, trade representatives, officials and the press, facilitate better understanding. 
Social economy 
As did the Third Conference, the Fourth Conference on the Social Economy, held on 8 to 10 
November 1993 in Brussels, stressed the need for a system of consultation with Community 
institutions. Initiatives for the establishment of a Social Economy Forum are in progress. 
Member States 
At the request of Commissioner Vanni d'Archirafi, a first informal meeting was held on 21 
June 1993 with the Directors General responsible for SMEs in the Member States, in order 
to enable the Commission to conduct an exchange of views on the overall situation of small 
and medium-sized enterprises in the Community. In particular, the Commission's activities 
11 
as regards information and the search for partners, and those relating to the implementation 
and development of measures such as those regarding the preparation of managers and the 
improvement of the administrative environment for businesses, were reviewed. Similarly, the 
various initiatives to assist SMEs at Community and national level, particularly as regards 
conditions of access to finance, participation in research and technological development and 
the use of the structural funds, were discussed. 
This first meeting had already made it possible to place the problems facing SMEs and the 
action taken in their favour within the broader context of cooperative management of the 
internal market, and that information and simplification were emerging as the preferential 
means of action at both Community and national level. The Commission intends to repeat 
this type of meeting, in particular in order to permit the development of action coordinated 
with Member States. 
II. INFORMATION AND SUPPORT FOR BUSINESSES 
2.1 Information for businesses 
2.1.1 Euro Info Centre network 
The creation of the Euro Info Centre (EIC) network in 1993 is directly connected with the 
developments which took place regarding recognition of the importance of SMEs for the 
revival of the European economy, as defined, in particular, at the European Councils in 
Edinburgh in December 1992 and Copenhagen in June 1993. One of the aims of this network 
is to introduce new forms of partnership on a triangular basis, as the network becomes more 
operational, comprising the Commission, enterprises and their representative organizations at 
regional and local level (chambers of commerce and trade, focal points for local 
development, trade organizations, etc.). 
With this in mind, the EICs aim to encourage European enterprises to become more 
European and more international through their various functions (production, marketing, 
management, finance, promotion). By means of continuous, interactive dialogue with local 
economic operators, the Euro Info Centres have thus found themselves in the front line for 
translating the new dimension of enterprise policy into reality. This mission on the ground is 
also in perfect synergy with the action of the Member States. 
12 
From this point of view, the particular activities of the EICs had a threefold mission in 1993: 
greater depth, quality and performance. 
As regards greater depth, the network improved the EICs' capacity to provide information, 
particularly by extending and systemizing the partnership measures between the EICs and the 
specialist Directorates-General of the Commission. Four specialist EIC working parties were 
set up on the Internal Market, R&D, external relations and Community programmes. 
Among other things, these developments enabled the EICs to play an active part in the work 
of the VAT Monitoring Committee, to collaborate - on the basis of a detailed questionnaire -
in monitoring the effective implementation of the internal market, and to contribute directly 
to the preparation of sectoral guides on the environment for enterprises. This work enabled 
the DirectoratesGeneralconcerned to promote knowledge of their programmes among 
businesses, through the EICs, and hence to promote greater participation by businesses in 
their initiatives. 
This exchange mechanism also permitted emphasis on the EICs' work of providing feedback 
while promoting the circulation of targeted, advance information. Finally, it helped to refine 
the work of assistance/advice offered through the EICs by encouraging the identification and 
selection of the businesses affected by Community initiatives and by stimulating more 
informed participation. 
The extension of the network to interested third countries continued throughout the year, by 
the establishment of Correspondence Centres in Budapest, Sofia, Reykjavik, Nicosia, 
Ljubljana, Bratislava, Ankara and Tel Aviv. 
As regards the quality of the services provided, special attention was paid to adjusting and 
perfecting the information tools and to intensifying and diversifying the continuing training 
programmes, with the twofold aim of achieving a more professional network and increasing 
the operationality of services to businesses. The monitoring of the work of the EICs was also 
stepped up and reorganized by the implementation of quality management, based directly on 
the technique of mangement by objectives. 
Finally, major technical changes were also made to improve both the speed of information 
distribution and the efficiency of the services. In particular, the organization of a Value 
Added Network (VANS) covering all Commission networks permitted a significant increase 
in 
13 
possibilities for communicating and transferring files while ensuring greater synergy between 
information and cooperation measures for the benefit of enterprises. A "hot line" was 
installed to permit direct, continuous consultation between the EICs and the information 
service of the central structure of the network on any question relating to Community 
policies and programmes. An ad hoc database was developed from a selection of questions 
which enterprises put to EICs and questions which EICs put to the central structure (a total 
of 5,000 questions in 1993). Finally, a significant effort was made to promote the network in 
order to stimulate a direct and systematic exchange between members themselves and with 
their sub-networks (over 2500 exchanges listed in 1993). 
As a result of the dynamism created by the new Community-level enterprise dimension,, the 
EICs thus became talking partners valued by the Commission in its relations with SMEs, 
through flexible, multi-purpose instruments. In particular, their field work ensured that 
services to businesses were more flexible, faster and more systematic in 1993. 
2.1.2 Development of the Social Economy EIC 
The ARIES (Social Economy Information Network Association) programme of work was 
implemented in 1993 in order to make available to Social Economy enterprises the 
information resources specific to this sector. 
ARIES covers the following activities: 
Database development programme 
Information products - standardization system 
Seminars, demonstration networks and stands 
Development of a standard ARIES member package (training, software, installation 
and pilot test networks). 
Demonstration sessions were held in the various member countries. 
2.1.3 European Week for Business 
A second Week for Business was held on 4 to 8 October 1993 to promote the measures and 
instruments used by the Commission to assist businesses and encourage their use, particularly 
by SMEs. 
14 
A series of events (lectures, round tables, open days, workshops, media campaigns, fairs and 
exhibitions) were organized in the 12 Community countries aimed at SMEs, representative 
organizations, local, regional and national authorities and any intermediaries concerned with 
SMEs. 
2,500 events were organized by members of the networks (EIC, BC-NET, BRE) with the 
support and participation of the Commission in almost 600 towns. 60,000 entrepreneurs took 
an active part (over 100,000 if one includes the public reached by radio and television 
broadcasts). 
The events related to all Community programmes and policies with the emphasis on topical 
aspects of concern to small and medium-sized enterprises (VAT, environment, 
implementation of the internal market, partnership, R & TD, public procurement, etc.). 
The Commission's participation took the form of leaflets, posters and, in a small number of 
cases, grants for the organization of certain events. Officials from a dozen Directorates-
General took part in over 250 events. Several members of the Commission also gave 
lectures, including Mrs Scrivener, Mr Bangemann, Mr Deus Pinheiro, Mr Matutes, Mr 
Millan and Mr Vanni d'Archirafi. 
In comparison with the results of the first European Week for Business in 1992, the 
following conclusions can be drawn: 
overall, the events were more specialised, more targeted and geared more closely to the 
immediate concerns of businesses (many sessions on VAT, transport and the 
environment, for example). At the same time, there were fewer big. general events. 
However, these two trends do correspond to the real aim of the services of the 
Commission, which is to stimulate a dialogue between specialists at regional and local 
level which is as close as possible to the real concerns of businesses; 
media coverage was very extensive: several hundred press cuttings have already been 
listed, and the number of radio and TV recordings is up; 
overall, coverage by country followed the same pattern as in 1992, with Italy the most 
active country. More initiatives were seen in Germany, Ireland and Denmark, and 
rather fewer in France and Greece (in Greece the decline was due to the proximity of 
the general election). 
A summary report comprising the comments of officials who took part as speakers, the 
press, the organizers and the services of the Commission is being prepared for the purpose of 
assessing the results of this Week. 
15 
Two examples of the most original events: 
* Organization of a question and answer project with businesses from the Rhône/Alps 
region, coordinated by ERAI (Entreprises Rhône/Alpes International) and the EIC 
network information service. This interactive exchange, which extended over 
several months, gave rise to daily publication, during the Week, of a selection of 
questions and answers in the local press (one topic per day). The nature of the 
questions and the diversity of questioners provided the Commission with an 
exhaustive view of the needs and concerns of businessmen in the region as regards 
the implementation of the internal market. 
* Excellent regional coverage by several British EICs such as Leicester, Newcastle 
and Liverpool, each of which organized over fifteen events and press campaigns 
during the Week. Among the "capillarization" efforts (dissemination of information 
at regional level), mention should also be made of the Sligo CCI in Ireland, the 
Economic Chambers Liaison Committee of the Languedoc Roussillon Region 
(Montpellier EIC) and the Dodecanese CCI in Greece. 
2.1.4 Miscellaneous information measures 
Information on the European Economic Interest Grouping 
Since the beginning of January 1993 the Commission has been circulating a brochure entitled 
"European Economic Interest Grouping (EEIG): the emergence of a new form of European 
cooperation - report on three years' experience", setting out information and examples of the 
use of the European Grouping by economic operators and particularly SMEs. Based on a 
survey launched in 1991 among all existing EEIGs, this document reports on the situation 
and responds to a need for practical information expressed by SMEs on the nature of this 
new form of cooperation and when it is appropriate to use it. 
16 
Following the interest aroused by this brochure, the services of the Commission decided to 
step up their action on EEIGs. A European EEIG Network (called REGIE), which will 
collate practical, accurate information on all EEIGs currently in existence, is now being set 
up. Ultimately, this will permit compilation of a database which can be used, in particular, 
for the benefit of SMEs wishing to develop some of their activities via cross-border 
cooperation, using the EEIG. 
Practical guide to competition for SMEs 
The Commission encourages SMEs to conclude cooperation agreements among themselves 
and is particularly concerned to establish and ensure compliance with rules guaranteeing free 
competition. The brochure "SMEs and competition - a practical guide", for direct use by 
SMEs, provides information on essential points, specifies the mechanisms and states the 
principles governing competition law at Community level. Practical examples and tables 
make it easy to ascertain whether an agreement concluded with another business is legal or 
whether it has to be notified for the purpose of obtaining exemption, and the measures and 
procedures applicable (notification, complaints, appeals). This guide is available in the 9 
Community languages simply on request. 
Continued publication of Euro-Info 
Euro-Info is a quick-delivery information bulletin intended for small and medium-sized 
enterprises and craft enterprises. It is sent free of charge to enterprises, organizations, trade 
associations and groups, BRE correspondents, members of the BC-NET network and the 
EICs. 
Euro-Info gives concise information on the measures and instruments set up by the services 
of the Commission responsible for enterprise policy and the action taken by other 
Directorates-General of concern to SMEs and craft enterprises. 
Euro-Info is published ten times a year in the nine Community languages, and its circulation 
will soon reach 70,000 copies. Special editions on subjects such as craft enterprises and 
subcontracting are also planned in the forthcoming months, in view of their special 
importance. 
Mobile stands 
The Commission currently has two modern mobile stands, more adaptable than the previous 
one. These stands are used to represent the enterprise policy at fairs and exhibitions, 
seminars and conferences for managers of small and medium-sized enterprises or craft 
businesses. 
17 
Twelve activities concerning enterprise policy can be presented visually on a stand measuring 
about 30m2, on panels accompanied by logos and texts in the language of the country being 
visited, while a smaller stand is used to display activities relating to information and 
cooperation. In addition, a video clip is also shown and both general and targeted 
documentation is available to the public in the appropriate language. Finally, there is always 
a representative of the Commission's services on hand to give visitors further information. 
During 1993, the Commission's services responsible for enterprise policy took part in some 
thirty fairs and exhibitions in the countries of the European Union, and also in North Africa 
(Tunisia). In all cases, thousands of visitors including many business managers were able to 
improve their acquaintanceship with the Commission, and in particular with its activities to 
help SMEs and craft industry. 
2.2 Measures in support of businesses 
2.2.1 Training and consultancy 
EUROMANAGEMENT - Preparing SMEs for the internal market 
The Commission continued its training activities in order to help SME managers to define a 
strategy for their business as the internal market opens up. From this point of view, 1993 not 
only saw the finalization of around a hundred training schemes and studies of the impact of 
the large market, but also permitted the launch of the Euromanagement network comprising 
training and consultancy bodies from all Member States. 
On 17 May 1993 a seminar was held in Brussels, attended by 57 training/consultancy bodies 
which had taken part in the work of preparing SMEs for the internal market. It had two 
objectives: to evaluate all the action taken and to produce guidelines on the characteristics of 
the network to be set up. 
As regards evaluation, the work done enabled: 
SME managers to improve their knowledge of the new opportunities offered by the 
large market and to identify specific measures for seizing them; 
18 
training/consultancy bodies to familiarize themselves with the impact of the internal 
market on SMEs and take the initiative in organizing other seminars and activities 
downstream, such as establishing businessmen's clubs or marketing consortia. 
The conclusions of the seminar were as follows: 
the participating bodies unanimously recognized the existence of a need for training in 
the process of European integration among most SME managers; 
it was established that the main weakness of business managers lies in strategic 
management. In order to fill this gap, it is necessary to give them access to rigorously 
selected, appropriate information and to improve their ability to exploit that 
information and to implement appropriate measures in an effective way; 
if the network is to be able to make a useful contribution to the competitiveness of 
SMEs, it must encourage the exchange of information ("success stories"), tools and 
experts. It should also permit the development of new cross-border measures. 
Finally, the participating bodies proposed proceeding with the establishment of the network 
by stages: first, a phase in which a relatively flexible structure is consolidated, followed by 
opening up the network to new interested bodies. 
19 
EUROMANAGEMENT - standardization, certification, quality assurance and safety at work 
The Commission is pursuing two objectives with this pilot project: 
to assess the impact of European standardization, certification and quality assurance on 
SMEs; 
to provide information and advice to support SMEs' efforts to adapt to the 
requirements entailed. 
Following an invitation to tender, 52 consultants were selected by the Commission in 1993 to 
assess and advise 780 SMEs. In addition, an external coordinator, also selected by invitation 
to tender, was given the task of developing the methodology for assessing SMEs, providing 
assistance for consultants during the project and preparing a report summarizing the results 
achieved by the consultants. 
The project began in June with a training seminar aimed at updating the knowledge of 
consultants in the field of Community policy on standardization and certification and training 
them in methods of assessing SMEs. 
The assessments are going well and will be completed in February 1994. The coordinator 
will then be able to produce a final summary giving the Commission: 
a better idea of the problems of adapting to European requirements regarding 
standardization, certification, quality assurance and assurance of safety at work, 
encountered by this representative selection of SMEs; 
an initial indication of divergences by country and by sector. 
AFNOR, the French standards institution, has been chosen as coordinator. 
The Commission finances 50% of the assessment costs. Consultants are required to find 
other sources of finance, either public or private, e.g. in the form of financial participation 
by the SMEs assessed. 
20 
Small enterprises and craft businesses 
The measures launched in this field aim to promote the adaptation of small enterprises and 
craft businesses to the new parameters of the internal market. 
An initial 3 year pilot plan (1991-1993) is followed by the multiannual programme (1993-
1996). 
Measures implemented under this initial pilot plan included: 
invitations to tender issued in 1991 and 1992 following recommendations made by the 
European Conference on Small Enterprises and Craft Businesses and the monitoring of 
the performance of the 25 contracts awarded; 
organization of the 2nd European Conference on Small Enterprises and Craft 
Businesses and 11 preparatory symposia. 
In 1993 the main focus was on: 
preparing the 2 preliminary symposia (Luxembourg and Rome) for the 2nd European 
Conference; 
launching the 2 pilot projects concerning meetings of experts from professional 
organizations and exchanges between businesses; 
preparing SME/craft business guidelines in the Poseidom programme; 
issuing an invitation to tender concerning frontier zones; 
preparing an invitation to tender concerning cooperation between small enterprises. 
Pilot project on vocational training for craftworkers 
The purpose of this project, launched in 1990, is to provide young craftworkers with 
vocational training to enable them to pursue an occupation in their country of origin or 
ultimately to set up their own business. Forty five young people were selected from Greece, 
Spain and Portugal, aged 16 to 20 years, who had completed compulsory education in their 
country. 
These young people receive three to three and a half years' vocational training in Germany 
under the "dual" system (alternating periods in training centres and on the job). The training 
was preceded by a six-month language course. 
21 
Several meetings have taken place: 
the fourth meeting to assess the pilot project was held in Ohlstadt (Germany) on 18 
March 1993, attended by representatives of the young people, master craftsmen, trade 
organisations of the countries concerned and the German institution in charge of the 
project; 
a seminar on cooperation between European craft enterprises in the vocational training 
sector (Ohlstadt, 19 March 1993) was attended by the same participants and by 
entrepreneurs from the countries concerned; 
a conference on "Training for Business Managers" (Luxembourg, 15/16 November 
1993) was arranged when the pilot project was presented (140 participants attended). 
This is the only Commission project which aims to provide full craft training in a foreign 
country. 
In this third year, 28 young people are continuing the experiment, which corresponds to the 
success rate for their fellow trainees from Germany. 
The pilot project is co-financed via the PETRA programme. 
2.2.2 Finance 
Seed capital 
1993 was the fourth year of the Pilot Plan, which covers a five year period (1990-1994) and 
aims to encourage the establishment of businesses in the Community and improve new 
businesses' chances of survival. 24 seed capital funds were selected by an invitation to 
tender. These received reimbursable advances to fund 50% of their operating costs over 5 
years and 15 of them additionally benefited from capital contributions. 
Investment activity slowed down in 1993 as a result of economic problems. 
Three new members joined the network. Several events were organised: 
Seville (27/28 May 1993) - 7th network seminar - 55 participants: "The role of the 
public sector in early stage investment" 
22 
Brussels (2/3 December 1993) - 8th seminar - 150 participants "Investment in 
enterprise creation and growth: raising funds - co-financing - withdrawal". 
The Article 4 Committeee was informed of the progress of the pilot action at its meetings in 
February and July 1993. 
A progress report was submitted in January 1993. 
The Warwick Business School carried out an external assessment in 1992. 
After almost four years, the pilot plan has produced the following results: 
the 24 seed capital funds disbursed a fund of 40 MECU of which 57 % were provided 
by private sources, 37 % by public regional sources and 6 % by the Commission; 
20 MECU was invested by the funds in the creation of 187 new enterprises; 
161 enterprises of the 187 created were still active at the end of 1993 representing a 
failure rate of 14 % over 4 years; 
they created 1706 direct jobs and a further number of indirect subcontracting jobs; 
75 % of the jobs went into advanced technology sectors. 
Mutual guarantee societies 
The second congress of the European Mutual Guarantee Association was held in Hamburg on 
5 and 6 October 1993. Some 300 people from the Community and from third countries took 
part. As a result of this congress, both officials from SME development institutions and 
associations representing SMEs were made aware of the role that mutual guarantees can play 
in improving SME finance. 
The results of a recent comparative study on mutual guarantees and SMEs were presented, 
together with a pilot project, with the object of creating a mutual guarantee system in 
Portugal. This project is being run in close collaboration between IAPMEL, AECM and 
IMPI. 
2.2.3 Access to markets 
Euromarketing 
The purpose of this study (launched via an invitation to tender published in the OJEC of 
26.6.91) is to help SME managers to define an appropriate marketing strategy for their 
businesses in the context of the internal market. 
23 
EUROMARKETING objectives 
To examine marketing policies pursued by SMEs and ways of adapting their methods to 
the changing commercial environment. 
To identify an optimum Euromarketing strategy for SMEs wishing to seize the new 
opportunities offered by the large market. 
To draw up a guide for SME managers to help them define their own Euromarketing 
strategy. 
The study was completed in 1993 and its conclusions were presented in the form of two 
documents: 
a final report and a summary for the Commission. The latter document - which is to be 
widely circulated among Member States' public authorities and bodies - contains the 
study's main conclusions and puts forward some suggestions: 
for businesses, to enable them to implement a Euromarketing strategy, and 
for the Commission and public authorities, to enable them to make a useful 
contribution to SMEs in this area. 
a guide for SME managers, setting out the details of a Euromarketing strategy, 
illustrated by numerous case studies. The guide is intended to give the business 
manager some ideas and help him define the most appropriate marketing policy for his 
business in the context of the internal market. 
Helping SMEs to work with central and eastern Europe 
This action is intended to help Community SMEs to find new markets in central and eastern 
European countries. 
By means of a pilot action launched in 1993, the Commission aims to promote joint action to 
compile, disseminate and exchange information and know-how concerning foreign trade, 
investment and cooperation: seminars, conferences, staff exchanges and information tools. 
24 
The invitation to tender was finalized in September 1993. 11 contracts were awarded. 10 
further contracts are to be awarded subject to an additional budget appropriation. 
SMEs and public procurement 
In order to improve the opportunities for SMEs to access public procurement markets, the 
Commission has commenced work on the preparation of a work programme in order to 
insure a follow up of the broad lines of approach indicated in the Communication "SME 
Participation in Public Procurement in the Community" - SEC(92) 722 final. 
The majority of the considerable amount of preparatory work undertaken has involved the 
further examination of obstacles to SME participation already identified and to define all 
credible options for action. Consideration has also been given to the effective use in relation 
to this problem of the new Community financed instruments agreed by the European Council 
in Edinburgh and Copenhagen, as well as the structural and cohesion funds among others 
concerned with the development of a certification and testing infrastructure in the less 
favoured regions. The Commission's services have launched studies into how to improve the 
overall availability of information on the public procurement market, not least through the 
information and technical assistance to enterprises network. In this context some of the Euro 
Info Center have developed a specialisation in public procurement. 
A call for tender has been launched involving the analysis of irregularities in tender notices 
published in the Official Journal. In addition preparations are well advanced for a further call 
for proposals on the writing of a practical guide to management on effective preparation for 
participation in public procurement markets. 
A Seminar on SME access to public procurement was organized by the Commission services 
on 14/15 January 1994, which was attended by representatives from a broad range of 
organizations, public, semi-public and private. 
The Advisory Committee on Public Procurement was consulted on these tasks, most recently 
on 13 October 1993. 
25 
2.2.4 Technology 
SMEs and Community RTD activities 
A Commission communication to the Council entitled "SMEs and Community research and 
technological development (RTD) activities" was adopted by the Commission on 30.9.93 and 
submitted to the Council on 11.11.93. 
This document was intended to summarize the situation of SMEs in relation to Community 
RTD programmes, and to state the progress achieved and adjustments to be made in order to 
increase participation by SMEs. 
Between 1.1.1987 and 31.12.1991, only 1140 enterprises with fewer than 500 employees (or 
11% of all participants and 13% of the total budget) took part in Community RTD 
programmes, excluding information technology. As a result, the Fourth Framework R&D 
Programme (FRDP 1994-1998) should bring about a substantial increase in SME 
participation in its programmes, among other things by the extension to other research topics 
of the system of feasibility/expansion awards, devised under BRITE/EURAM. 
Following the adoption of this document, the Commission set up a working party to improve 
coordination of the various departments' action concerning SMEs in the context of 
Community research. 
EUROMANAGEMENT RTD II 
After consulting the Advisory Committee on Enterprise Policy (Article 4 Committee), the 
Commission decided to launch a second phase of the RTD Euromanagement pilot action in 
1994. This new action will aim to identify a substantial number of SMEs (some 1500) which 
can take part in calls for tenders under the Fourth FRDP concerning information 
technologies, industrial and scientific technologies and bio-technologies. It will also focus 
special attention on the exploitation by SMEs of the results of Community RTD. 
VALUE-SME pilot action 
This action aims to promote the transfer of innovations from Community R&D programmes 
to SMEs. The object is to improve the exploitation and dissemination of Community research 
results. 
26 
EXPLORATORY AWARDS: allowances designed to cover travel costs (and directly 
associated expenses) incurred by SMEs seeking to conclude a technology transfer 
agreement on the basis of Community research results (up to 75% of the actual costs: 
Maximum: ECU 7,000). 
TECHNOLOGY EXCHANGE AWARDS: allowances designed to cover all costs 
(labour, general expenses, equipment, etc.) associated with the assessment of the 
feasibility of transferring and using a technology (up to 50% of the actual costs: 
Maximum ECU 100,000). 
During 1993: 
10 contracts were signed for exploratory awards worth a total of ECU 42,000. 
5 contracts were signed for technology exchange awards worth a total of ECU 
270,000. 
10 VACRO-DAYS (Value Crossroads Days) were organised to promote the results of 
Community research among SMEs (5 on the ESPRIT programme, 2 on the BAP programme 
and 2 on BRITE/EURAM). 
HI. PROMOTION OF COOPERATION AND PARTNERSHIP 
3.1 The Business Cooperation Network (BC-NET) 
Structure of the network 
On 15 December 1993 the network had 571 members (advisers and intermediaries). 539 of 
them are located in Member States and 32 in 24 non-member countries. 
This situation is the outcome of the non-renewal of memberships which were not very active 
at the end of 1992 and the selection of new candidates by a call for proposals published in 
the Offical Journal in January 1993 (93/C17, 93/S15 of 22.1.93). 
These regular revisions of the composition of the network improve its quality while ensuring 
that it remains sufficiently large. 
27 
On 15 December 1993 the situation was as follows: 
Belgium 35 Italy 91 
Germany 91 Luxembourg 3 
Denmark 16 Netherlands 28 
Greece 35 Portugal 22 
Spain 63 United Kingdom 67 
France 78 Non-member countries 32 
Ireland 10 
The gradual opening of the BC-NET to non-member countries, making it possible to monitor 
and benefit from the internationalization of the economy, continued. 
The membership agreements of Canada and Morocco were officially signed on 2 July 1993 
at the annual Conference, PARTENARIAT '93. This extension gives the BC-NET a 
stronger presence in the Mediterranean area and an initial foothold in North America. It 
currently has a presence in 24 non-member countries. 
Activity of the network and results 
In 1993, the Central Unit recorded 10 053 CPs ("cooperation profiles"), or an average of 
838 CPs per month. 
Although the bulk of cooperation requests were still commercial (60.7%), there was a slight 
increase in requests for technical cooperation (27%) at the expense of financial cooperation 
(6.8%) compared with 1992. 
The breakdown of cooperation requests by sector of activity is also stable, with the 
manufacturing sector still dominant (65% of requests as at 30 November 1993 compared 
with 64% as at 31 December 1992). 
Activities of the Central Unit 
a. Specialized working parties and sub-networks 
The Central Unit set up a working party comprising BC-NET financial bodies. This working 
party met in January 1993. 
A "Flash Profile" working party also met in January 1993. Its work led to the establishment 
of a selective distribution system for FPs. 
A "Training" working party met in February 1993. A training programme was redefined on 
the basis of its conclusions, presented to the Advisory Working Party for Monitoring in 
March 1993. 
28 
Finally, a "Public Procurement" sub-network is being set up. 
b. Advisory Working Party for Monitoring 
The Advisory Working Party for Monitoring met in March 1993. As a result, it was decided: 
to step up support for members, in particular by continuing the quality management 
programme; 
to implement a further promotion programme; 
to optimize the efficiency of the network (public procurement, amendment of the Code 
of Practice, extension to non-member countries). 
c. National meetings 
In the first half of 1993, BC-NET organized national meetings in Ireland and Denmark, plus 
- in connection with Europartenariat - a national meeting in Lille, France (June 1993) and a 
meeting of British and Irish members in Glasgow, Scotland (December 1993)2. 
In addition, the Swedish and Finnish NCPs ("national contact points") arranged a meeting of 
their sub-networks, which was attended by the Commission services responsible for 
enterprise policy. 
Other national meetings, organized jointly by the Central Unit and the members concerned, 
are planned in each Member State. The first of this series was attended by Belgian and 
Luxembourg members in November 1993. 
d. Annual conference 
This year, the annual BC-NET conference was extended to the other cooperation activities 
promoted by the services responsible for enterprise policy. The conference, entitled 
"Partenariat '93 - The dynamics of growth", was attended by BC-NET and BRE members 
plus the main partners concerned with Europartenariat, Interprise and Subcontracting. 
Altogether, some 744 participants attended. 
In December 1992 a Europartenariat meeting of Italian members was organized at Bari. 
29 
e. Training 
Following selection of the new advisers, an initial series of BC-NET training sessions was 
organized in the various Member States (11 national training sessions) in May and June 
1993. 
Training sessions were also organized for the new NCPs in Argentina, Canada, Chile, 
Hungary, Morocco, the Philippines, the Czech and Slovak republics and Uruguay, and their 
sub-networks. 
Supplementary training sessions were organized for the Swedish and Finnish NCP sub­
networks and for other members with sub-networks. 
A second series of 26 training sessions open to all members began in the fourth quarter of 
1993. The training material was fully updated on this occasion. 
f. Charges 
Charges came into force on 1 January 1993 for Community members3, which meant that they 
had to sign an additional agreement4. 
g. Quality management 
The quality improvement policy continued through various measures, including: 
the introduction of charges 
renovation of the network with the new selection procedure, including a personal 
interview with candidates whose file merits additional information 
stepping up the training programmes. 
They already applied to the EFTA countries, Israel, Turkey and Australia. 
For new members the additional clause is incorporated in the BC-NET agreement. 
30 
The Central Unit has now started a programme of measures to improve operations. In this 
context, it launched a Quality Help Desk in the second half of 1993. 
h. Use of BC-NET f *• technological innovation 
Two measures were launched in connection with adapting BC-NET to technological 
innovation: 
a short-term project to place certain authorized technical and technological CPs in a 
database which can be consulted interactively and accessed via VANS; 
a long-term project to review the foundations of the BC-NET system, in particular as 
regards requests for technical and technological cooperation. 
i. Development of applications - BRS and VANS installations 
All the above activities are supported by data-processing developments. Apart from 
maintenance of existing applications, several developments were carried out in 1993: 
version 4.1 of the BRS software for sub-network members was successfully brought 
into service by over 30 intermediaries; 
a program known as RPS, which helps members to prepare their half-yearly activity 
reports, was produced in 1993; 
the BC-NET team developed a consolidated database on the services responsible for 
enterprise policy networks (this was used to prepare the consolidated directory of BC-
NET networks distributed at the European Week for Business, which took place from 4 
to 8 October 1993); 
a program enabling the Central Unit to charge its members from 1993 onwards was 
developed in 1993. 
The BRS and VANS installations continued: since 1 January 1993, 42 new BRS installations 
have been completed. The Central Unit also arranged a dozen VANS installations and seven 
training courses in the use of the services offered by VANS. 
31 
3.2 Business Cooperation Centre (BRE) 
During 1993 the BRE evaluated the results achieved by the qualitative and quantitative 
improvements carried out in 1991 and 1992. 
The network currently has 412 correspondents in 54 countries. 
The 6,580 cooperation profiles received and the continual applications for membership of the 
network from new organizations bear witness to the increasing importance and success of our 
work. 
At the same time, other measures to improve and stimulate the instrument have been set up. 
The measures adopted during the year followed the development projects already begun 
during 1991 and 1992 and are evolving in three basic areas: 
Technical and operational improvement of the network 
The computer system was improved. 
Working documents were finalized. The work of drafting more detailed information guides, 
one for use by correspondents, the other for businesses, was started some while ago. 
As regards translation, operational improvements were made and a project is under 
consideration for translating advertisements automatically into all Community languages to 
speed things up. 
Qualitative improvements and enlargement of the network 
Members of the network were "evaluated" on the basis of their individual activity in terms of 
cooperation offers sent, advertisement circulation capability and participation in the various 
network activities. 
A "survey" was conducted among correspondents in order to obtain statistics relevant to the 
development of the network and to stimulate reactions and/or suggested improvements. 
Points covered by the survey included the way in which correspondents work at sectoral or 
geographical level, the monitoring of contacts made for clients, and distribution and 
promotion methods and techniques. 
32 
A new half-yearly activity report form was made available to network members. 
Enlargement continued within the Community and outside. In particular, apart from new 
Community members, Costa Rica, Uruguay, Algeria, Lebanon and the Occupied Territories 
joined the network during 1993. It is planned to complete geographical coverage for the 
Mediterranean and Latin American countries under the MED-INVEST and LA-INVEST 
programmes. 
Stimulation and leadership of the network 
A newsletter on cooperation continues to be produced. 
Two closed monitoring meetings were organized. 
The plenary meeting was held in Brussels on 1 and 2 July 1993 during the Conference 
on Cooperation. 
National meetings for French, British and Irish members were organized during the 
"Lille" and "Scotland" Europartenariats. Meetings were also organized in Denmark and 
Ireland in order to stimulate the activity of members in those countries. 
3.3 Europartenariat and Interprise 
3.3.1 Europartenariat 
Europartenariat, a programme run jointly by the Directorate-General for "Enterprise Policy, 
Trade, Tourism and Social Economy" and the Directorate-General for "Regional Policies" 
aims to stimulate the development and growth of a less favoured region5 by cross-border 
SME cooperation. The method of arranging Europartenariat events is set out in Annex 2. 
Objective 1, 2 or 5b regions. 
33 
a) Analysis of events in 1993 
Since 1991 the number of events has risen to two per annum. 
"Europartenariat North-East France" 
In 1993, Europartenariat held the Lille event for objective 2 regions: Nord-Pas-de-Calais. 
Picardy. Champagne-Ardenne and Lorraine. The aim was to promote cross-border 
partnership between SMEs from the four regions of northern and eastern France and SMEs 
from Community countries, the Mediterranean perimeter, central and eastern Europe 
(CEECs) and EFTA. , 
Also, under the policy on opening up regions where development is lagging behind, Corsica 
and the Overseas Departments (Guadeloupe, Martinique, Guyana and Réunion) took part in 
the Lille event as host regions. 
The North-East France Europartenariat was the largest event ever organized in Europe for 
inter-firm cooperation, with numerous visiting firms from non-member countries (EFTA, 
CEECs, Mediterranean countries). 
At Lille the proportion of listed enterprises concluding cooperation agreements can be 
expected to exceed 40%. The agreements concluded cover a very wide range (financial, 
technological, subcontracting and patent agreements, etc.), thus confirming the pattern which 
has been emerging since the Leipzig Europartenariat in 1991. 
The figures on the "North-East France Europartenariat" can already be summarized as 
follows: 
Number of French businesses selected from North-East: 414 
Number of businesses selected from Overseas Departments: 63 
Number of businesses selected from Corsica: 18 
Number of participating countries: 42 
Number of visiting businesses recorded: 1,768 
Number of meetings requested: 10,650 
Average number of meetings per French business: 21 
34 
"Scotland'' Europartenariat 
"Scotland" was the 9th Europartenariat. Altogether, 1,259 visiting businesses from 55 
countries - including 626 from the Community - were in Glasgow on 13 and 14 December 
1993. 
Businesses from North America (United States and Canada), China and the Occupied 
Territories took part in this event for the first time. 
Some 6,000 meetings were pre-planned with the 334 Scottish businesses selected. 
The largest sectors represented were agri-foods, textiles and made-up goods, commercial 
services and training, electricity, electronics, optics and opto-electronics. 
The initial reactions of the participants testify to perfect logistical organization and excellent 
quality business contacts. 
b) Programme development 
Quota system 
The quota system was tested for the first time at the "France North-East Europartenariat". 
Each national adviser has to arrange the participation of a certain number of businesses in the 
event, the number being calculated in proportion to the budget submitted to the principal 
contractor. This system not only guarantees that a minimum number of Member States' 
businesses will be present, but also ensures additional commitment on the part of national 
advisers. 
Internationalization 
The programme is open to the EFTA countries and those of central and eastern Europe. 
Thus, PHARE co-finances promotions and business missions organized by national advisers 
from those countries. 
Similarly, the MED-INVEST programme facilitates support for this type of activity for 
advisers from countries bordering the Mediterranean. 
Monitoring 
It is planned to step up the monitoring of events. Thus, a supplementary report will be 
requested from the principal organizer one year after the event. This evaluation forms an 
integral part of the work programme of the principal organizer and the national advisers. 
35 
Structuring effects 
It must be stressed that Europartenariat acts directly on the following points: 
improving or developing the image of the region concerned; 
the important role of the partnership strategy; 
increasing SMEs* awareness of the opportunities offered by the single market; 
the need to internationalize business. 
Next events 
The next events will be held in: 
Poland: Gdansk, 9 and 10 June 1994; 
Spanish Basque country: Bilbao, 21 and 22 November 1994. 
3.3.2 INTERPRISE 
The purpose of the INTERPRISE programme (Initiative to Encourage Partnership between 
Industries and/or Services in Europe) is to support local, regional and national measures 
throughout the territory of the Community which are aimed at stimulating direct contact 
between businessmen in order to develop cooperation agreements between small and 
medium-sized enterprises. 
The INTERPRISE objectives and methodology are based on the operation of 
Europartenariat, but on a larger scale, involving industrial and developed regions as well as 
assisted regions. Projects have to include at least three regions of three Member States of the 
Community, although they may extend to regions outside the Community. 
Annex 4 provides details of how INTERPRISE events are organized. 
This programme facilitates: 
cross-border cooperation for small and medium-sized enterprises and guidance with a 
view to training them and encouraging them to form partnerships; 
36 
by means of joint action on the part of the regions, cooperation between trade 
organizations, chambers of commerce and industry, development agencies promoting 
economic development and the efficient operation of the internal market and the private 
sector; 
greater contact between businessmen, organizations and political institutions; 
the establishment of direct contact between Community measures and businesses, 
which can thus be aware of the existence of specific programmes of interest to them, in 
particular for the purpose of exploiting the opportunities of the large market. 
44 projects involving 290 regions were approved in 1993. 
Participation by Member States 
These projects represent a total of 47 events distributed as follows: France hosted 14 events, 
Italy 9, Spain 4, the UK, Germany and Belgium 3, Greece 2, the Netherlands 2, Denmark, 
Ireland and Portugal 1. Outside the Community, Poland, Hungary, the Czech and Slovak 
Federation and Malaysia each hosted an event. 
However, if we analyze the number of co-organizers per project we find that all member 
countries play a balanced part in the various projects: France (27 participations), Germany 
(22), Spain (22), Italy (21), UK (18), Belgium, (13), Netherlands (13), Denmark (8), 
Portugal (7), Greece (7), Ireland (4) and Luxembourg (1). 
As regards participation by non-Community partners (EFTA, CEECs, Baltic countries, 
Malaysia), the involvement of Sweden (3 times) and Poland (5 times) is particularly 
noteworthy. 
For example, the "Euro-Malaysian Partnership Days" INTERPRISE has already resulted in 
preparation of joint ventures in electronics and motor vehicles, and trade agreements have 
reached an advanced stage of negotiation, particularly for pharmaceutical instruments and air 
conditioning, in liaison with German, British, Italian and Dutch firms. 
Principal sectors 
Agri-foods, electronics, chemicals, environment, metals, textiles, building, services and 
timber were the most popular sectors for cross-border cooperation in 1993. Some 
37 
projects are highly specialized, such as the one on composite materials which led to the 
signing of 5 R & D CRAFT dossiers. 
Synergy between instruments on enterprise policy 
EIC: nine Euro Info Centres presented INTERPRISE projects in 1993 and 32 EICs took part 
as co-organizers. 
BC-NET: the projects sometimes incorporate the use of BC-NET in their methodology in 
order to improve the "Arrangement of meetings" phase. 
Quantitative evaluation 
Over 5,500 businesses took part in various events in 1993, while the figure for 1992 was 
around 4,200. 
An overall evaluation of activities in 1993 is in progress. Attention should be drawn to the 
results of a survey based on a questionnaire sent to organizers of projects held in September 
to December 1992. The questionnaire, launched in February 1993, related to the outcome of 
meetings during the 3 months following the event. The results are as follows: 
Number of participating firms: 1876 
Number of meetings: 9247 
Contracts already signed: 68 
EC-China Seminar (Antwerp. 6-8 December 1993) 
Finally, it should be mentioned that a seminar accompanied by business meetings was 
organized for the first time between the Community and China. 
The aim was to point out means of access to the Chinese market and to develop cooperation 
between SMEs. Thus, 40 Chinese businessmen had a large number of meetings with some 
sixty Community businessmen in areas such as magnetic telephone cards and meat 
processing. 
3.4 Subcontracting 
The growing importance attached to subcontracting in the Community was reflected in the 
prominent position of activities to promote it in the Council Decision of 14 June 1993 and in 
the emphasis placed upon it by the European Parliament in its Resolution on subcontracting. 
38 
In this context, the Commission decided to step up current coordination measures and 
develop a range of promotion measures. 
Moreover, the guidelines of the Pan-European Forum on Subcontracting, held in Madrid on 
14 and 15 December 1992, have been implemented, particularly in the priority areas of 
transparency and cooperation networks. 
Improving the transparency of the European market in subcontracting 
Following analysis of the surveys of the economic importance of subcontracting in all 
Member States, which showed the need to achieve greater transparency in the subcontracting 
market, the Commission continued the statistical exercise in direct liaison with national 
statistical institutes and trade organizations. The first phase of this exercise, which aims to 
add a subcontracting section to existing statistical instruments, relates to five areas of activity 
(motor vehicles, aeronautics, building, textiles/clothing and electronics), for which the 
crucial role of subcontracting was demonstrated by the economic surveys. 
The Commission is also making the necessary arrangements for regular updating of the 
practical guides to the legal aspects of subcontracting, and is examining whether a European 
subcontracting contract should be drawn up. 
Communication and improved cooperation between main contractors and subcontractors 
The Commission is pleased with the obvious interest in its subcontracting information policy. 
In response to specific requests it sent out some 10,000 documents published by its 
departments during the period following the Pan-European Forum in Madrid. 
Quality control and certification 
The Commission also actively supports and participates in an initiative by trade organizations 
aimed at mutual recognition of certificates, which should result in the establishment of a 
widely accepted code of practice. 
On the basis both of the initiatives launched and of the further encouragement from the 
Council, the Parliament and trade organizations or subcontracting intermediaries, the 
Commission decided to develop a framework of measures to promote subcontracting in the 
Community. In view of the increasing importance of well-organized, structured 
subcontracting in new inter-industrial relations, its encouragement is a strategic choice for 
improving the competitiveness of businesses and hence the growth of the Community 
economy. 
39 
Thus, in order to respond to businesses' growing need for practical measures on 
subcontracting, the Commission is carrying out measures to encourage the networking of a 
number of subcontracting exchanges and databases in the Community. This decentralised set­
up will aim to provide businesses with various types of information, e.g. on market 
situations, public contracts and legal, technical and certification questions. 
In addition, the pilot programme to promote the competitiveness of subcontractors in the 
consumer electronics sector was launched at a conference in Brussels on 24 and 25 March 
1993, attended by a large number of key figures and businessmen from this sector in the 
Community and Japan. A first phase of this programme, comprising a study mission on the 
organization of this sector in Japan, has already succeeded in encouraging the use of best 
practices by European components producers. 
40 
IV. POLICY ASSESSMENT AND DEVELOPMENT 
4.1 Improved knowledge of SMEs 
4.1.1 Statistics 
The work aimed at obtaining the most recent picture possible of the European enterprise 
population, conducted in collaboration with Eurostat, continued with the emphasis on using 
existing sources of information. 
The European Statistical System on SMEs, i.e. the data on enterprises broken down by size, 
was updated (it now contains figures for 1988-1991) and extended to other countries (it 
currently covers 22 countries), sectors of activity (the whole economy except agriculture is 
now covered) and size classes (it now comprises nine employment classes, and some 
countries have supplied data broken down by turnover). The latest figures which it 
incorporates are of better quality than before, partly as a result of the methodological 
documentation carried out by national statistical institutes. 
Research on the construction of a system of cyclical indicators proved fruitful in the three 
areas studied, namely demography, employment and output. As regards demography, several 
countries already have information on business creations and cessations and are even able to 
calculate survival rates. As regards the other two areas, the initial results seem to show that 
SMEs follow a separate cyclical trend from that of large companies. 
This progress is now being utilised to produce "Enterprises in Europe - Third Report", 
scheduled for publication early in 1994. 
41 
4.1.2 Definition of SMEs 
This question underlies all measures to assist SMEs. 
Following its 1992 Report to the Council6, the Commission continued to work with the 
Statistical Office on producing updated ratios between the various recommended definition 
criteria: turnover, number of employees and balance sheet total. 
An update of the list of definitions used in Community measures has been launched. 
4.1.3 European SME observatory 
Following its launch on 10 December 1992, the European SME Observatory sent the 
Commission an initial, independent report on the situation and prospects of small and 
medium-sized enterprises in the Community. 
This first annual report provides a considerable quantity of useful data, accompanied by a 
number of policy recommendations. Since the prime objective of the Observatory is to 
provide an overall, horizontal and coherent view of subjects relevant to SMEs, this report 
may become a basic reference document for those responsible for enterprise policy and SME 
development both at regional and national level and at Community level. In particular, this 
report - like those to follow - may be an important source of information on the development 
of different types of SME and the conditions under which they operate, and the information 
in this report is of considerable potential value for assessing the effects of the implementation 
of the single market on small and medium-sized enterprises. 
In order to help initiate a general discussion on subjects relating to small and medium-sized 
enterprises, the Commission decided to publish its own comments on the Observatory's first 
annual report7 and forward them to the Council, the European Parliament and the Economic 
and Social Committee. 
In particular, since the main aim of Community action is to ensure a high value added for 
Community enterprise policy and to help to relaunch economic activity in a context of 
growth generating more jobs, the Commission is pleased to note the convergence between 
the analyses, conclusions and recommendations of this report and the guidelines adopted in 
the 
6 SEC (92) 351 final of 29.4.1992 
COM (93) 527 final of 5 November 1993 
42 
new programme of Community measures to intensify the priority areas and ensure the 
continuity and consolidation of its policy for enterprise8. 
4.2 Policy development and preparation of new projects 
4.2.1 Commerce and distribution 
Commerce 2000 
The Commerce 2000 programme aims to promote cooperation links between SMEs by using 
modern management methods and new technologies in the commerce and distribution sector. 
The programme relates to a number of pilot projects, conferences and project assessments in 
connection with a call for tenders launched in 1991 (OJEC 1991 C 209). 11 pilot projects 
involving aid worth ECU 1,789,000 were completed in 1993. 
An Evaluation Conference was held in Brussels on 14 and 15 June 1993: the completed 
projects and their assessment were presented to over 300 participants (businessmen, trade 
representatives, officials and the press). A summary of the speeches was produced and 2000 
copies were distributed. 
A group of professionals and officials from the Commission met after the conference on 14 
and 15 June 1993 to assess the resulting action to be taken in the course of the second 
initiative. 
An Evaluation Report on the first initiative was produced by Deloitte & Touche: "Evaluation 
of the Commerce 2000 Programme" dated 30 June 1993. 
There was a request for the expression of interest in feasibility studies, and a call for tenders 
was issued for pilot projects (OJEC C277/20 of 15.10.1993) for the purpose of continuing 
this action, stressing its aim of encouraging cooperation between commercial SMEs 
(feasibility studies) and the exemplary way in which they are carried out (project subsidies). 
Council Decision 93/379/EEC of 14 June 1993, OJ L 161 of 31 July 1993 
43 
Example of a project under Commerce 2000 
The Scheins company (D) conducted an original experiment in cross-border liaison: this 
wholesaler is now linked to its suppliers and retailers in the horticultural sector in two 
neighbouring countries (L and B) by a bilingual data exchange system (French and 
German): this software, which is applicable worldwide, speeds up trade and promotes the 
volume of business between partners (total investment cost: ECU 93,000 including ECU 
30,000 in Community aid, or 32.3%). 
Trade statistics 
The main activities are: 
Publication : " Retailing in the European market of 1993 ". 
This work was submitted to government experts and the Committee on Commerce and 
Distribution in February. A mailshot was sent out to over 1200 European commercial 
operators to advertise this publication, which was also sent to over 300 representatives 
of the trade and the competent authorities. 
This publication has been very successful and there have been requests to extend the 
study to wholesaling. 
Pilot study on forms of selling in Community retailing. 
The initial conclusions of the study were presented in the form of a provisional report 
in October 1993 (the report will be produced and circulated only in its final form). 
Since the existing information does not correspond adequately to current demands, the 
Commission has planned a statistical annexe on "commerce" in a regulation on the 
structural statistics of enterprises. 
Many meetings of statistical experts and a joint meeting between government and trade 
experts (GCI/CCD) were held on this subject and led to agreement in principle on the 
draft regulation. The need for harmonization was recognized. There was a request that 
SMEs should be suitably taken into account by simplifying the questionnaires; "more 
rapid implementation of the Commission initiative" was requested. 
44 
Studies on commerce 
Over 1,000 copies of five studies completed in 1991 were circulated in 1993. These were 
studies on franchising, bulk-buying organizations, new commercial intermediaries, the 
impact of new technologies and forms of internationalization. 
Two new structural studies were presented on 5 February 1993 at a joint meeting between 
government (GCI) and trade (CCD) experts. They concern: 
foreign investments in the wholesale and retail trade in the EC (300 copies of the study 
circulated in October 1993); 
the trend in forms of commerce in the EC and the United States (to be circulated). 
A request for a declaration of interest was issued as regards studies on commerce and 
distribution (OJEC no. C 123/15 of 5.5.93), followed by two restricted invitations to tender 
concerning: 
production of 4 brochures on national and Community legislation of direct concern to 
commerce: commercial town planning, freedom of establishment, consumer protection 
and competition. 
trade missions relating to central and eastern Europe: formation of groups of experts 
representing the distribution sector in the Community, in order to establish contacts 
between businessmen and officials of the EC and the CEECs (cooperation between 
operators, support for the creation of trade associations). 
The presentation of each year's studies at a joint meeting between government (GCI) and 
trade (CCD) experts, to which the press was invited, was very successful and resulted in a 
request that the subjects be examined in greater detail. 
Circulation of these studies generates the same type of positive reactions. 
45 
Execution of the work programme 
As requested by the conclusions of the Council of 30 June 1992, submitted to the 
Commission (Bull. EC 6-1992, no. 1.3.58), a Report to the Council on the progress of the 
work programme in the field of Commerce was prepared. 
This report aims to analyze the sector's needs in terms of adjustment to the realities of the 
single market, in order to redefine the guidelines for Community action and report on the 
measures taken. 
It was submitted for consultation to government experts, members of the CCD and the other 
Commission departments, and to the heads of Member States' Departments of Trade. It 
should be included on the agenda of the Council in the second quarter of 1994 under the 
Greek Presidency. 
4.2.2 Cooperatives. Mutual Societies and Associations Statistics 
After the Commission services had sent out a questionnaire in 1992 to associations and 
foundations in the 12 Member States, and in view of the large number of replies (2300), the 
Social Economy Unit had to call in an outside agency to encode, process and analyze the 
replies. The ISG - Sozialforschung und Gesellschaftspolitik company was commissioned to 
do this work. 
The SPSS (Statistical Package for the Social Science) data processing system which they 
intend to use has the advantage of permitting an exchange of information with the John 
Hopkins University - Institute for Policy Studies, which is conducting a parallel and 
complementary study on the association sector. The MS-DOS data bank will be readable and 
compatible with the systems used by the Commission and most external bodies with which it 
is in contact, while preserving the anonymity of replies. 
The final report was submitted on December 1993. 
Classification of social economy enterprises 
The Commission ordered several studies to facilitate access for social economy enterprises to 
means of financing their investments. These studies led to practical measures to set up a 
financial package. It is now essential to identify the most efficient operators in the sector in 
order to establish the said financial package on an ideal basis (investor confidence). 
46 
This was the reason for the initiative entitled "Classification of the 500 largest enterprises 
and the 500 most dynamic enterprises in the social economy of the European Community" in 
December 1992. 
The Social Economy needs to be given a positive image by being presented from two 
viewpoints which demonstrate its competitiveness and by selecting 1,000 competitive 
enterprises from the social economy, to describe their strong points and potential, publicize 
them and quantify their performance. The contractor was selected on the basis of a call for 
tenders. 
The final report is to be submitted by 30.6.94. 
47 
ANNEX 1 
LIST OF PRINCIPAL TEXTS ADOPTED IN 1993 RELATING TO THE 
COMMUNITIES' ENTERPRISE POLICY 
COMMISSION 
Proposal for a Council's decision on Community membership of the European 
Investment Fund 
OJ. C 37 of 11.02.93 
Communication from the Commission of 30 September 1993 - SMEs and Community 
activity in research and technological development. 
COM(93) 356 
Communication from the Commission of 5 November 1993 - the European Observatory 
for SME comments by the Commission on the first annual report (1993). 
COM(93)527 
Communication from the Commission of 10 November 1993 on the financial problems 
experienced by SMEs. 
COM(93)528 
Proposal for a Council decision on the provision of Community interest subsidies on 
loans for SMEs extended by the EIB under its Temporary Lending Facility. 
COM(93)577 11.11.93 
COUNCIL 
Council decision of 14 June 1993 on a multi-annual programme of Community measures 
to intensify the priority areas and to ensure the continuity and consolidation of policy of 
enterprise in the Community, in particular for small and medium-sized enterprises. 
O.J. L 161 of 02.07.93 
Presidency Memorandum SMEs: Driving force of European growth (October 1993). 
48 
Council Resolution of 22 November 1993 on strengthening the competitiveness of 
enterprises, in particular of small and medium-sized enterprises and craft enterprises, 
and developing employment. 
O.J. C 326 of 03.12.93 
Conclusions of the European Council in Brussels on 10 and 11 of December 1993 
encouraging the creation of a tax, financial, and administrative environment favourable 
to SMEs. 
EUROPEAN PARLIAMENT 
The opinion of the European Parliament on the Commission proposal for a Council 
decision on a multi-annual programme (1993-1996) of Community measures to intensify 
the priority areas of policy for enterprise, in particular SMEs in the Community. 
OJC 150 of 31.05.93 
Resolution of Parliament on the Commission communications: "Towards a European 
sub-contracting market" and on "The participation of SMEs in public procurement in the 
Community". 
O.J. C 150 of 31.05.93 
- Report of 31.03.93 by Mr Robert SPECIALE, Member at the EP on sub-contracting. 
Session document of EP N° 203.858./final 
ECONOMIC AND SOCIAL COMMITTEE 
Opinion of the Economic and Social Committee on the proposal for a Council decision 
on a multi-annual programme (1993-1996) of Community measaures to intensify the 
priority areas of policy for enterprise, in particular SMEs, in the Community. 
OJ. C 161 of 14.06.93 
Opinion of the Economic and Social Committee on the Commission staff "Working 
pai>er on the problem of time taken to make payments in commercial transactions" 
O.J. C 249 of 13.09.93 
49 
ANNEX 2 
EUROPARTENARIAT Methodology 
A Europartenariat is organized as follows: 
1. Identification by the Commission of a Community host region requiring specific action 
for its development based on requests from interested regions. 
2. Identification by the Commission of one or more organizers. 
3. Identification and selection by the organizers of a number of SME/SMIs in the host 
region which meet very specific criteria such as enterprise size, partnership projects, 
ability of the enterprise to conclude a cross-border partnership and financial soundness. 
4. Publication of a catalogue in 80,000 copies and 5 Community languages (French, 
German, Spanish, Italian and English) introducing the enterprises selected and their 
cooperation projects (export promotion is not regarded as an objective). 
5. Promotion of the event in all participating countries (EEC, Mediterranean countries, 
CEECs, EFTA) through a network of national advisers, the cooperation and 
information networks of the Commission (Business Cooperation Centre (BRE), 
Business Cooperation Network (BC-NET) and Euro Info Centres (EICs)) and the 
network of European business and innovation centres (BICs). The role of the national 
adviser is decisive: in addition to his promotion and information activities, he 
accompanies enterprises at the event and assists them during meeting days. 
6. Organization of two meeting days on the basis of appointments fixed in advance and 
submitted by the enterprises themselves. 
Commission support 
1. Two-thirds of the total budget for the operation is provided by the Commission (one 
third per Directorate-General) and one third by the host country. In the case of 
Europartenariat promotions in Mediterranean countries and CEECs, finance is also 
provided by the Directorate-General for External Relations under the MED-INVEST 
and PHARE programmes respectively. 
2. Representatives of the Commission's services assist and advise the principal organizer 
during the various preparatory phases. 
50 
ANNEX 3 
INTERPRISE Methodology 
In order to be eligible for the Commission's services responsible for enterprise policy 
support, a project must now adhere to the programme's own methodology, which stipulates 
the following phases: 
1) Identification and selection of at least 15 enterprises per participating region with 
genuine cooperation projects (commercial, financial, technical, joint venture, transfer 
of know-how, etc. ). 
2) Publication and circulation of a catalogue containing the profiles and cooperation 
projects of all or some of the participating enterprises (single region or multi-region 
catalogue), all other procedures for exchanging information on enterprises and their 
cooperation projects between the enterprises themselves being permitted provided that 
the principle of choice of meetings by the enterprise is respected. 
3) Organization of contact days (logistical aspects, interpreting) and arrangement of 
meetings. For this purpose, the partners centralize requests for cooperation from 
enterprises and organize a programme of individual meetings on the basis of those 
requests. 
4) Evaluation and monitoring of meetings to establish the number of cooperation 
agreements concluded. 
Criteria 
The following criteria must be respected: 
the project may be presented at any time of year, and generally six months before .the 
event; 
the programme must relate to cooperation between enterprises; 
the programme must be organized by at least one body per participating region or 
country (minimum of 3 Community regions or countries); 
the bodies concerned must make a financial contribution to the programme; 
the methodology described above must be followed; 
the support of the Commission - Directorate-General XXIII must be mentioned in each 
document published in connection with the initiative; 
the budget must not show any loss or profit. 
Commission support 
The Commission provides support in two ways: 
technical assistance for the organization of the programme on the basis of the 
Commission's experience of cooperation programmes; 
granting aid, which may not exceed 50% of the organizer's total budget. 
51 
COMMISSION REPORT ON COORDINATION OF THE ACTIVITIES IN 
FAVOUR OF SMALL AND MEDIUM-SIZED ENTERPRISES (SMEs) 
52 
PROLOGUE 
The purpose of this present report is to establish an overview of Community interventions 
and programmes that favour SMEs but which are not within the framework of the Council 
decision relating to the SME multi-annual programme1. The coordination of Community 
interventions is twofold, on the one hand, it is to ensure that the specific features of SMEs 
are better taken into account when defining Community actions and on the other hand, to 
increase the participation of SMEs in these programmes. 
The report demonstrates that the coordination has borne fruit in fields such as research and 
technological development, international cooperation and vocational training. However, the 
analysis of the impact the Structural Funds have on the development of SMEs depends on 
information which the Member States must furnish notably for the ex-post and ex-ante 
evaluations required by the new regulations. The enlarged partnership introduced in the 
new regulations can improve the coordination. Therefore, it is incumbent on the 
Commission, the Member States, and the economic and social partners to join their efforts 
to ensure a tight coordination which is indispensable to the efficiency of the measures 
favouring SMEs. 
It is useful here to recall the approach of the Community in defining SMEs. In the report of 
the Commission to the Council of 29 April 1992 (SEC (92) 351 final), a unique definition 
for SMEs at Community level was not considered possible. The report nevertheless 
introduced a greater coherence into the Community definitions notably by using certain 
criteria. The Commission proposed in that report "to avoid an undue multiplication of 
thresholds, the Commission will give preference to those of 250 and 50 employees". The 
main definitions presently in use at Community level are shown in the annex at the end of 
this report. From this, we can see a certain convergence of the definitions presently in use 
at Community level. The Commission will take steps to promote a better transparency of 
the definitions used at national level, particularly within the context of Operational 
Programmes or global grants which are cofinanced by Structural Funds. 
93/379/EEC, OJ L 161 of 02.07.93, p. 68 
^3> 
CONTENTS 
SUMMARY WITH ILLUSTRATING TABLE 
INTRODUCTION 
I. THE COMMUNITY FINANCIAL INSTRUMENTS AND SMEs 
1.1 THE STRUCTURAL FUNDS AND SMEs 
1.1.1 Operations under Objectives 1, 2 and 5b 
1.1.2 Operations under Objective 5a 
1.1.3 The ESF and SMEs 
1.1.4 Community initiatives 
1.1.5 An initial evaluation of the use of the structural funds by SMEs 
1.2 The EIB and SMEs 
1.3 The NCI and SMEs 
1.4 The ECSC and SMEs 
H. RESEARCH AND TECHNOLOGICAL DEVELOPMENT AND SMEs 
II. 1 Participation by SMEs in RTD programmes concerning industrial technologies 
and materials, the environment, bio-sciences and technologies and energy 
II. 2 Participation by SMEs in research activities on information and 
telecommunications technologies 
II. 3 Participation by SMEs in programmes to exploit research results 
11.4 Participation by SMEs in innovation and technology transfer 
11.5 Other Community programmes related to technology and research 
II. 6 Coordination between Commission departments 
m. VOCATIONAL TRAINING PROGRAMMES AND SMEs 
III. 1 The Eurotecnet programme 
III.2 The COMETT programme 
III. 3 The FORCE programme 
111.4 CEDEFOP 
111.5 Local development and employment 
IV. OTHER COMMUNITY PROGRAMMES 
IV. 1 International co-operation 
IV.2 Hygiene, health and safety at work 
IV.3 New financial techniques and SMEs 
IV.4 Transport and SMEs 
IV.5 The environment and SMEs 
IV.6 Common Fisheries Policy and SMEs 
V. CONCLUSION 
sy 
List of tables 
illustrating tables 
table 1 : Table of ERDF commitments per year and accrued from 1989 to 1993 
table 2 : Global grants 
table 3 : Objective 5b 
table 4 : EIB 
table 5 : SME participation in Feasability premiums and CRAFT actions under the 
BRITE-EURAM Programme 
table 6 : SME participation in Framework programmes concerning 
telecommunications and information technologies 
table 7 : Number of SMEs which have directly benefited from SPRINT 
table 8 : Thermie projects involving SMEs 
table 9 : ECSC research activities and SMEs 
table 10 : Vocational training programmes (EURÔTECNET, COMETT, and 
FORCE) 
*T.T 
SUMMARY 
FINANCIAL INSTRUMENTS, COMMUNITY PROGRAMMES AND SMEs 
The programme concerning enterprise policy (Council decision 93/379/EEC of 14th June 
1993) provides for a coordination with other Community policies, apart from a certain 
number of specific actions with a budget of ECU 112.2 million for the period 1993-1996, 
favouring SMEs. This coordination aims to ensure that the conditions specific to SMEs are 
taken into better consideration by the other Community policies and also to encourage the 
participation of SMEs in the Community programmes. 
I. THE UNION'S FINANCIAL INSTRUMENTS 
The bulk of support given by the EU to SMEs is carried out through the Structural Funds 
in the form of co-financing with the object of assuring economic and social cohesion within 
the European Union. The financial support to SMEs is also effected through EIB global 
loans and New Community Instrument loans. 
THE STRUCTURAL FUND OPERATIONS (ERDF. ESF. EAGGF) 
From 1989 until 1993 the estimated amount provided for enterprises from the Community 
Support Framework and other measures was ECU 5 billion for objectives 1 and 2 and 
ECU 1 billion for objective 5b, being a total of ECU 6 billion under these objectives, 
which represents 13% of the CSF budget. The growing use by SMEs of the Structural 
Funds requires an increased visibility of the measures favouring SMEs, a greater 
involvement by SME intermediaries and a simplification of the grant aid proceedures. The 
expanded partnership provided for between the Commission, the Member States, the local 
or regional authorities and the social and economic partners will improve the Structural 
Fund operations in favour of SMEs during the period 1994-1999. 
THE EUROPEAN INVESTMENT BANK 
The EIB uses global loans to support small and medium scale investments and particularly 
those by SMEs. Since 1988 nearly 36,500 SMEs have benefited from credits amounting to 
more than ECU 9.7 billion, being more than 50% of the finance allocated to industry and 
services. In 1992, Italy, Germany, France, and Belgium were the principal beneficiaries of 
these global loan credits to SMEs. 
THE NEW COMMUNITY INSTRUMENT 
As of the 31.12.92 the total loans agreed under NCI III and NCI IV headings rose to ECU 
3.5 billion of which ECU 682.8 million were under NCI IV. These loans were used to 
finance new investments worth ECU 7.2 million corresponding to over 9,600 projects and 
contributing to the creation of 60,000 jobs. These loans are concentrated on enterprises 
with fewer than 50 employees. Under NCI IV, Italy, Spain, and the UK benefited most. 
XG 
IL RESEARCH AND TECHNOLOGICAL DEVELOPMENT: R&TD 
R&TD is a key element in competitiveness amongst SMEs. This is why the Commission is 
doing its best to encourage greater participations of SMEs in community research 
programmes and to set up the means to facilitate the diffusion of new technologies. 
Industrial technologies and materials, the environment, bio-science and technologies and 
energy 
In 1991 and 1992 SME participation in R&TD programmes for all sectors reached a rate of 
11.5% and the number of SME contractors reached 1004. The total sum allocated to SMEs 
was 167 MECU, 12 % of the global budget. 
As far as industrial orientated programmes are concerned, such as BRITE EURAM 
(industrial and material technologies), rates of participation are much higher: 32% 
involvement of SMEs with an allocation of 25% of available funds. This shows therefore a 
growing participation of SMEs in this programme, two specific schemes of which concern 
SMEs: "feasibility premiums" and "Cooperative Research Action For Technology" -
CRAFT. These specific schemes have enabled SMEs to aquire and develop new 
technologies and know-how directly linked with their activities and to be involved in a 
process of apprenticeship whereby they have had the opportunity to discover the growing 
importance of R&TD in increasing their competitiveness. 
Information and Telecommunications technologies: 
SME participation has been on the increase since the ESPRIT programme took off in 1980. 
Now the rate of SME participation in projects has reached 80% for communication 
technologies, 65% for information technologies, and 95% for telematics. 
Most of the SMEs which are partners in the projects are from high-technology or 
technology-intensive sectors of industry. They are R&TD service providers or components 
or semi-finished goods manufacturers and are essentially involved in the development of 
R&TD applications. 
Exploitation of research results: VALUE 
300 SMEs have benefited from the VALUE-SME pilot scheme to a total of 2.1 MECU. 
The aims of VALUE-SME is to promote the transfer of Community research results to the 
SMEs themselves. VALUE-SME is a good example of coordination between Commission 
services. 
EUROMANAGEMENT-R&TD enabled 657 SMEs to benefit from the intervention of 47 
technological advisers who identified more than 1000 R&TD projects. By 1993 these 
projects resulted in the submission of 120 research proposals replying to calls to tender 
from the commission, of which 30% were eventually selected. 
jr-} 
Innovation and technology transfer: SPRINT 
With a budget of 90 MECU for the years 1989-1993 the SPRINT programme has given 
support to technological cooperation between SMEs through inter-SME transnational 
cooperation networks and technology transfer open days. The diffusion of new technology 
has been helped by research and technology networks and specific projects designed to 
transfer inter-community technological innovations. 
Results concerning SMEs show that since 1989 : 
7200 SME have acquired new technology 
24,000 SME have tested or evaluated new technology 
64,000 SME have become aware of new technology 
Altogether a total of 95,200 have benefited from the SPRINT Programme. 
Other research activities outside the R&TD Framework Programme have affected SMEs 
for example in the field of energy (THERMIE programme), transports (EURET), and 
ECSC. 
The effective coordination between these R&TD programmes has made it possible to 
establish the SME dimension of the 4th R&TD Framework Programme allowing a greater 
transparency in community R&TD actions in the SME sector notably through joint 
promotion and coordination among existing networks. 
m. VOCATIONAL TRAINING PROGRAMMES 
A number of community programmes are designed to raise the level of qualifications 
throughout the Union in order to master the process of economic, technological, social, and 
cultural change. 
Amonst these programmes EUROTECNET (innovation in vocational training as a result of 
technological change), COMETT (training and education in technology), and FORCE 
(continuing vocational training) relate more directly to the SMEs. 
In EUROTECNET, 18% of the projects making up the network are targeted at SMEs. In 
COMETT, it is thought that 7000 SMEs are directly involved, giving a 75% rate of SME 
participation and a total of 30,000 SMEs benefiting either directly or indirectly from this 
training scheme. Under FORCE 1250 SMEs or groups of SMEs are associated with 
projects representing a 62% rate of direct participation. 
As far as Community action undertaken to develop local employment is concerned, the 
programme for Local Employment Initiative for Women (LEI) has given support to 700 
women businesses between 1986 and 1990. 
vT 
IV. OTHER PROGRAMMES 
Amongst the other programmes in operation it is useful to mention here those which are 
designed to promote the internationalisation of SMEs within the framework of cooperation 
with third countries. 
INTERNATIONAL COOPERATION 
Cooperation between SMEs is not limited to the EU territory but it has developed to 
include other countries such as those in EFTA who have already participated in the BC-Net 
networks and Euro Info Centres (as correspondence centres). Cooperation has also been 
developed with Central and East European countries through the PHARE programme, with 
the Commonwealth of Indépendant States (CEI) and Georgia as well as with the developing 
countries in Asia, Latin America, and the Mediterranean. 
Within the PHARE programme the Commission has put in place programmes for SME 
development with a budget of ECU 95 M that provide technical assistance to 8 countries 
of Central and Eastern Europe and 3 Baltic states. This support provides support services to 
SMEs, financial instruments and help in preparing an enterprise policy. The new partners 
in the Central and Eastern European countries are progressively getting involved in the 
information networks (EIC) and cooperation networks (BC-NET) as well as in the 
partnership programmes (Europartenariat, JOPP). The JOPP programme (Joint Venture 
Phare Programme) aims at stimulating the creation of joint ventures between SMEs in 
PECO. ECU 17 M has been given to SMEs since 1991 for up to ECU 400 M worth of 
investments. 
The cooperation with the Commonwealth of Indépendant States and Georgia is carried out 
through the TACIS programme which has a budget of ECU 20 M in 1992. 7 development 
agencies and 9 "Business communications centres - BCC" are to be created and connected 
with the BRE and BC-NET networks. 
The cooperation with developing countries is effected through the MED-INVEST (ECU 
12,2 M from 1993 to 1995) programmes for third countries in the Mediterranean, LA-
INVEST (ECU 18.5 M from 1993 to 1995) programme for Latin american countries and 
ECIP (ECU 20 M in 1992 and ECU 39 M in .1993). 
Finally measures to promote Community exports to third countries are equally pursued. 
V. CONCLUSION 
The consideration given to SMEs in community programmes is increasing and the 
Commission will continue its efforts in association with the Member States and the 
representatives of SMEs and craft industries to facilitate the full participation of SMEs in 
the process of Euro integration highlighted by the measures introduced in the white paper 
on "Growth, Competitiveness, and Employment". 
^3 
FINANCIAL INSTRUMENTS, COMMUNITY PROGRAMMES AND SMEs 
0 Community interventions 
Financial interventions 
- Structural Funds (1989-1993) 
(estimation of allocations) 
- European Investment Bank 
global loans (1988-1992) 
- New Community Instruments 
(NCI III et IV) - loans 
Research and Technological Development 
Programmes 
- all programmes together in 1991 and 1992 
among which 
• BRITE-EURAM which includes 
- Feasability premiums 
- CRAFT 
• JOULE 
- telecommunications and information 
technologies : 
• Communication technologies 
• Information technologies 
• telematic systems credits allocated 
to SMEs in ECU 
6Bn 
9,7 Bn 
3.5 Bn 
167 M 
5.6 M 
26 M number of SMEs 
36 500 
1004 
192 (projects) 
255 (projects) SME 
participation as a 
% of all projects 
11,5% 
32% 
100% 
100% 
16% 
80% 
65% 
95% SME 
participation as a 
% of total budget 
13% 
12% 
25% 
100% 
100% 
19% 
Communitv interventions 
- VALUE SME 
- EUROMANAGEMENT-RDT 
- SPRINT 90 MECU (1989-1993) 
- THERMIE (90-93) 
- ECSC 
Vocational training programmes 
- EUROTECNET 
- COMETT 
- FORCE 
International cooperation programmes 
- PHARE-SME Programme 
- JOPP (1991-1993) 
- MED-INVEST (1993-1995) 
- LA-INVEST (1993-1995) 
- ECIP 1992 
1993 credits allocated 
to SMEs in ECU 
2,1 M 
175 M 
26 M 
95 M 
17 M 
12,2 M 
18,5 M 
20 M 
39 M number of SMEs 
300 
657 
95.200 
311 projects 
46 projects 
7000 (direct) 
30.000 (indirect) 
1250 
186 projects SME 
participation as a 
% of all projects 
100% 
100% 
59% 
18% 
75% 
62% 
100% 
93,3% 
100% 
100% SME 
participation as a 
% of total budget 
100%. 
100% 
41% 
48% 
100% 
100% 
100% 
(X) The reader's attention is drawn on the fact that this table lists community interventions of different nature and therefore, figures are not 
always comparable from one line to the other. On the one hand, figures cover different time periods and, on the other, amounts refer to either 
grants or loans. Therefore, the amounts allocated to SMEs cannot be added up in columns. 
INTRODUCTION 
An initial Commission report on "the coordination of activities in favour of SMEs falling 
outside the scope of Council Decision 89/490/EEC" has already been adopted on 26 May 
19922 covering the period from July 1989 to the end of 1990. That report met the 
requirements laid down by the Council Decision of 28 July 19893, which has since been 
replaced by the Council Decision of 14 July 19934. 
Taking account of the information already supplied in the first report, especially the 
programme descriptions, which is still valid for the period covered by this report, the 
Commission preferred to concentrate its efforts in the present report on the actual 
coordination of the Community programmes and initiatives. In addition, aspects not already 
covered in the first report, such as evaluation of the impact of the programmes on SMEs, 
will be examined. 
The purpose of this report is to cover the years 1991 and 1992, plus part of 1993, as far as 
possible. 
The importance of small and medium-sized enterprises in the recovery of growth and 
employment in Europe, generally recognised by Community and national bodies, fully 
justifies a horizontal approach to ensure both the coherence of Community action in favour 
of SMEs and better integration of the SME dimension in other Community policies and 
initiatives. Although, in the face of the changes confronting large enterprises in the 
traditional economic sectors, SMEs have potential advantages because of their flexibility, 
their capacity to adapt to the needs of the market and their capacity for innovation. They 
face serious challenges as well, - completion of the internal market and industrial changes -
which SMEs must face up to in order to remain competitive. Hence the need to ensure that 
SMEs can play a full part in the process of European integration. 
This report does not aim to review all the Community programmes or initiatives which 
could have a direct or indirect impact on SMEs. Taking account of the diversity of 
Community intervention and the horizontal character of SMEs, such an analysis would 
amount to studying virtually all the Community programmes. Besides, the action plan for 
SMEs established by Council Decisions 89/490/EEC of 28 July 1989 and 93/397/EEC was 
subject to separate reports. 
Instead, this report centres on four main chapters: SMEs and the structural funds, SMEs 
and the research and technological development programmes, SMEs and the vocational 
training programmes and finally SMEs and the other Community programmes of obvious 
interest to SMEs and craft industries. 
2 SEC (92) 704 final. 
3 89/490/EEC, OJ L 239 of 16.08.89, p. 33-34. 
4 93/379/EEC, OJ L 161 of 02.07.93, p. 68. 
Gz< 
I. THE COMMUNITY FINANCIAL INSTRUMENTS AND SMEs 
1.1 THE STRUCTURAL FUNDS AND SMEs 
The first period of the reformed Structural Funds ran from 1989 to 1993 and by the end of 
this period virtually all of the funds had been committed. The effort to achieve economic 
and social cohesion in the Community will continue during the new 6-year programming 
period (1994-1999) on the basis of the conclusions of the December 1992 Council of 
Edinburgh, which decided on the amount to be allotted to the Structural Funds for the next 
few years (141 MMECU), and of the new regulations adopted on 20 July 1993s. 
The previous report gave an exhaustive account of the Community's structural measures as 
regards their broad principles (concentration, additionality, programming, partnership), 
instruments (ERDF, ESF, EAGGF - Guidance), financial resources and mode of operation. 
This chapter of the report will deal with Community operations under Objectives 1, 2 and 
5b, Community initiatives, the European Social Fund, then the financial instruments of the 
European Investment Bank and the New Community Instrument, and finally the lessons 
learnt from an initial evaluation of the use of the Structural Funds by SMEs. 
1.1.1 COMMUNITY OPERATIONS UNDER OBJECTIVES 1, 2 AND 5b 
The Community's structural measures for 1989-1993 represented a budget of ECU 60.3 
billion (at 1989 prices) by way of structural fund commitment appropriations plus ECU 3 
billion for 1991-1993 representing the Community's outlay on the recovery and integration 
of the new German Lander. Table 1 describes the ERDF-commitments per year, per 
country, and accrued from 1989 to 1993. 
OJ L 193 of 31.07.93: Framework Regulation No. 2081/93 (amending Regulation No. 
2052/88), Coordination Regulation No. 2082/93 (amending Regulation No. 4253/88), 
Regulation No. 2083/93 (amending Regulation No. 4254/88 on the ERDF), Regulation No. 
2084/93 (amending Regulation No. 4255/88 on the ESF), Regulation No. 2085/93 (amending 
Regulation No. 4256/88 on the EAGGF Guidance Section) and Regulation No. 2080/93 
(establishing the financial instrument of fisheries guidance). 
63 
Table 1 
Table of ERDF commitments per year and accrued from 1989 to 1993 up to 
31.12.93 for objectives 1, 2 and 5b and innovative actions (article 10 ERDF) 
in thousand ECU 
B 
DK 
D 
EL 
ESP 
FR 
IRL 
I 
L 
NL 
P 
UK 
COM 
EC 89 
40.686 
8.948 
178.507 
642.029 
1.220.927 
219.809 
308.373 
910.846 
3.462 
592.567 
505.588 
34.895 
4.666.637 90 
66.803 
18.390 
113.941 
561.693 
1.802.226 
442.739 
291.997 
837.113 
2.975 
45.677 
533.722 
469.548 
40.747 
5.227.571 91 
74.435 
26.122 
246.201 
882.586 
1.741.648 
334.898 
280.096 
1.440.666 
2.511 
27.473 
938.883 
590.808 
125.223 
6.711.550 92 
48.386 
14.216 
211.578 
1.427.840 
1.924.284 
621.859 
636.022 
1.017.014 
19.142 
56.425 
1.497.162 
654.559 
257.448 
8.385.935 93 
93.711 
12.074 
350.217 
1.081.129 
2.283.905 
761.188 
519.472 
2.441.724 
732 
64.414 
1.374.600 
897.614 
152.193 
10.032.973 accrued 
324.021 
79.750 
1.100.444 
4.595.277 
8.972.990 
2.380.493 
2.035.960 
6.647.363 
25.360 
197.451 
4.936.934 
3.118.117 
610.506 
35.024.666 
Source : Direction General for Regional Policies and Direction General for 
Budgets. 
(o^l 
OBJECTIVE 1: development and structural adjustment of regions whose 
development is lagging behind 
The Community aid entered in the Community Support Frameworks (CSFs) of Objective 1 
regions under the Structural Funds totals ECU 36,200 million (at constant 1989 prices), to 
which should be added the total for other financial instruments: additional lines in the 
Integrated Mediterranean Programmes (IMP) and the Specific Programme for the 
Development of Portuguese Industry (PEDIP), representing ECU 1,084 million. Both the 
IMPs and PEDIP predated the entry into force of the new Structural Funds Regulations. 
Most of the operational programmes and other forms of intervention under the CSFs were 
approved in 1990 and 1991. Thus, about 300 operational programmes, 63 projects and 
major projects as well as 13 global grants have been approuved. 
Mention should be made of PEDIP, the specific programme for the development of 
Portuguese industry, set up by a Council decision because of its relatively weak position as 
regards the rest of industry in the EU. PEDIP covers a wide range of actions to stimulate 
the industrial sector, including measures to support small and medium-sized enterprises, 
industrial quality and competitiveness. The following actions in favour of SMEs have been 
supported: establishment and development of technological centres, centres of excellence 
and the dissemination of new technologies, acquisition of testing and metrological 
equipment, support for industrial associations, partnership projects between large 
enterprises and SMEs and aid for the acquisition of production equipment. 
Between 1989 and 1992, direct aid for SME projects under PEDIP totalled ECU 370 
million for investments worth ECU 1600 million in over 1300 enterprises. This aid total 
represents roughly 21% of total public (national and Community) expenditure on the 
programme. 
More specifically, intervention of the EAGGF Guidance Section in the case of Objective 1 
regions takes place mainly in the form of operational programmes, falling under one fund 
or several, and Community initiatives (including LEADER). Total commitments during 
1991-1992 came to ECU 978 million for operational programmes. Those allocated to 
Community initiatives totalled ECU 174 million, including ECU 124 million for LEADER. 
The specific programmes, POSEICAN, POSEIDOM and POSEIMA, received ECU 30 
million in commitment appropriations. In addition, ECU 183 million were committed over 
the same period for operational programmes carried out in the new German Lander. 
CS 
The main aims of the finance provided are: diversification of production, development of 
alternative resources, development of practices which do not harm the environment, and 
creation of permanent jobs in rural areas. SMEs are eligible for all the measures described, 
and in practice, SMEs and one-man businesses receive almost all the finance made 
available for these measures. 
As regards the intervention of the European Social Fund, experience over the past 4 years 
has made it possible to identify a certain number of operations as regards SMEs, 
particularly for the period from the end of 1991 to the present day. 
The ESF supports vocational training projects for "persons working in small and medium-
sized enterprises". The aim is to enable working people to adapt to the jobs available. The 
promotion of retraining and hence occupational mobility upgrades the potential of the 
labour force in these regions. 
Between 1989 and 1993 over ECU 10 billion were budgeted for vocational training, 
employment and the development of human resources in Objective 1 regions. The 
expenditure in favour of SMEs mainly takes the form of continued training, which benefits 
the staff of SMEs. Although there is not always an "SME" line of action in Objective 1 
regions, a great number of projects envisaged in operational programmes and other forms 
of intervention support SMEs, especially the major programmes on "Industry and Services" 
for Ireland, the "Tourism" and "Business Competitiveness" lines of action in Greece or 
PEDIP in Portugal. 
For example, two measures introduced at the end of 1991 in the operational programme on 
"Industry and Services " in Ireland benefit SMEs. These are: 
- job training schemes: in-service training. These schemes are a new approach to 
vocational training problems in Ireland and fulfil the expectations of employers who feel 
that existing structures are not yet sufficiently appropriate to the business world; 
- employment premiums: for the first time, this employment aid should receive financial 
support from the private sector (25%, the remaining 75% coming from the ESF). 
These two new measures tie in with the conclusions of an ad hoc working party at national 
level, which stressed the need to exploit the potential of local enterprises in Ireland. 
GQ 
OBJECTIVE 2: conversion of regions or parts of regions seriously affected by 
industrial decline 
The first phase CSFs relating to Objective 2 regions covered a 3-year period (1989-1991) 
and the total allocation was fixed at ECU 3,900 million (constant 1989 prices). The second 
phase CSFs (1992-1993) relate to a total allocation of ECU 3,354 million (constant 1992 
prices). More than 200 of the operational programmes and other forms of intervention (15 
major projects and 4 global grants) included in the CSFs were approved. 
Analysis of 18 operational programmes for the United Kingdom shows that aid for the 
development of enterprises, particularly SMEs, was provided in the objective 2 regions. 
The support comprises: business services (financial, management, design and marketing), 
local employment initiatives promoting new businesses, part-financing of industrial 
investment in the form of grants or loans and loan guarantee support, services to facilitate 
access to venture capital and launch capital for the growth and expansion of enterprises. 
The creation or promotion of economic conversion structures or regional development 
teams including investment in "Enterprise Agencies ", running costs of enterprise centres, 
the promotion of marketing and exports to facilitate participation by small enterprises in the 
internal, market. This example shows the variety of measures undertaken. 
An evaluation of ERDF operations under Objectives 1 and 2 was launched by the 
Commission in 1993. It should show the impact on SMEs of Community operations in 
these regions. 
The European Social Fund intervention for Objective 2 regions is ECU 1,762 million was 
scheduled for training and employment in these areas during 1989 to 1993. One of the 
priorities of the CSFs renegotiated for 1992-1993 is to strengthen the fabric of SMEs in the 
zones concerned, by expanding local industrial subcontracting, encouraging innovation in 
SMEs and modernizing the craft sector. 
A great many sectors are concerned in both industry (biotechnology, maintenance) and 
services (transport, office automation, telecommunications, health care). In the majority of 
Member States a priority line of action has been identified in favour of SMEs "to 
encourage the creation and development of enterprises" (France, Italy, UK, Luxembourg, 
Belgium, Netherlands....), with training funded by the ESF intended to accompany the 
modernization and restructuring of enterprises. 
(o ^| 
In certain cases, priority has been given to vocational training intended to develop a 
veritable "enterprise culture" based on training and qualifications, not only for managers 
but also for all staff involved in the different functions of business administration and 
management. 
Example: in the Basque country in Spain, the National Institute of Industry set up a project 
in 1992 based on the concept of "integral quality", designed as a management technique to 
place all aspects of business operation on a profitable basis. The Institute chose an 
enterprise for this experiment in the capital goods and iron and steel/metallurgy sector. 
All functions (from manual worker to product manager) and all the networks of the 
enterprise (administration, finance, distribution) are involved. Working parties are set up in 
which the emphasis is on specific activities and methodological problems. 
This process is intended to lead to the systématisation of good practices and a study of each 
job to promote quality awareness and motivation. In seeking customer satisfaction at 
minimum cost, the whole enterprise becomes more competitive. 
EUROPEAN ENTERPRISE AND INNOVATION CENTRES: CEEIs 
The European Enterprise and Innovation Centres (EC-BIC European Community Business 
Innovation Centres) are a particularly important aspect of Community regional policy in 
favour of SMEs; they were specially created to promote the establishment or growth of 
innovative SMEs and to make optimum use of local potential in the form of human, 
physical and financial resources. The Commission supported the formation of the 
association "European Business Innovation Centre Network" (EBN), which encourages the 
BIC network by training, promotion and information measures. The EBN* s members 
include financial institutions, international networks, technical institutes, professional 
consultants and international business groups, which improve the network by effectively 
coordinating the individual activities. 
The BICs have adopted an integrated approach to local economic development in making 
available to enterprises a complete programme of efficient services with the aim of 
improving their managerial and entrepreneurial capability by preparing a strategic 
development plan (business plan) which includes market analysis, a financial package, 
technology, and setting up and monitoring the enterprise. Community support for the BICs 
is granted in all regions eligible for ERDF finance. 
GY 
Set up in 1984, the BICs now number 92, distributed not only throughout the Community 
but also in central and eastern Europe. So far, almost 3000 innovative industrial SMEs 
have been set up or developed by the BICs, employing an average of 5.5 persons per 
enterprise. 
Furthermore, 15 of the existing 25 launch capital funds (supported by the enterprise policy 
via repayable advances on their operating costs) have been supported by the BICs, which 
contribute towards the funds as shareholders. The launch capital funds comprise the 
"European Seed Capital Fund Network" financed jointiy under regional policy and 
enterprise policy. 
GLOBAL GRANTS 
Apart from the operational programmes, one of the innovations introduced by the 1988 
reform was the possibility of using global grants. "The Commission may entrust to 
appropriate intermediaries, including regional development bodies designated by the 
Member State in agreement with the Commission, the management of global grants, which 
shall be the preferred method of intervention in favour of local development initiatives"6. 
14 global grants were awarded in 1991 and 1992: 13 to Objective 1 regions and one to 
Objective 2 regions of France. Table 2 shows the amounts granted for each country. In 
1991 and 1992 over ECU 238 million were allocated to global grants, which should 
engender investment in the order of ECU 756 million. The rate of Community part-
financing averages 31%, provided mainly by the ERDF, and 50% in the case of Italy. The 
majority of global grants provide for spécifie measures for SMEs. 
In Italy, ERDF aid for global grants is devoted to the "Industry, craft activities, services" 
line of action of the CSFs of Objective 1 regions (except for a global grant to develop 
tourism). 
Article 5 (2) of Regulation No. 2052/88. 
69 
Table 2 
IHHH 
COUNTRY 
1991 
FRANCE (Objective 2) 
Stride (ANVAR) 
SPAIN (Objective 1) 
Andalucia (IF A) 
Murcia (IFM) 
1992 
Objective 1 
ITALY 
"Industry, Crafts, Services" 
Apulia (BIC-APULIA) 
(IASM) 
(GEPI) 
"Tourism" (INSUD) 
(AFM/Edilizia) 
(ENFAPI) 
(EFIBANCA) 
(UNIONCAMERE) 
Sardinia (CONSORZIO 21) 
Mezzogiorno (FIME) 
IRELAND 
Internally Generated Development 
Area Management Development Ltd 
TOTAL Amount of 
global grant 
(MECU) 
17.3 
46 
18.9 
218 
10 
8 
87 
3 
5 
10 
6.35 
7.6 
6.5 
10 
238.45 Total Cost 
(MECU) 
35.02 
338 
36.2 
4 
20 
16 
216 
6 
10 
20 
12,7 
12.04 
13 
17,5 
756.46 Part-financing 
EC (%) 
50% 
13% 
52.3 % 
70% 
50 % 
50% 
40.28% 
50 % 
50% 
50% 
50% 
63% 
50% 
57 % 
31.5 % ERDF 
(%) 
90% 
100 % 
100 % 
100 % 
100 % 
100 % 
100 % 
100 % 
100 % 
100% 
100% 
100 % 
100 % 
63.7% ESF 
(%) 
10% 
36.3% 
lo 
Actions in favour of SMEs in this area include the following: creation of a network of 
agencies to provide data processing services and management aid for SMEs in the building 
industry, support for set-ups supplying specialist services for SMEs, support for innovation 
in SMEs (new processes and products), creation of consortia between SMEs for 
guaranteeing loans, exports and advanced services, start-up aid and financial services such 
as venture capital, launch capital, participation premiums and participation loans. 
The global grant to the Andalucian Development Institution (IFA) is structured in 5 sub-
programmes in favour of SMEs: productive investment aid, aid for business services, local 
development, industrial and craft zones, and technical aid. The global grant to Murcia, 
unlike that for IFA, also contains measures to promote tourism. 
The global grant to Ireland aims to support internally generated development, i.e. to 
promote and support local economic development initiatives by aid for the creation and 
development of enterprises, education and training and, finally, technical assistance. 
The STRIDE global grant to France, awarded to ANVAR (National Agency for the 
Exploitation of Research) concerns research and" the transfer of technologies in Objective 2 
regions of France. 
s 
It is still too soon to know how effective the global grants are for SMEs, since they have 
only just been awarded. However, as for other actions, it is planned to evaluate these 
global grants. 
PARTNERSHIP BETWEEN ENTERPRISES 
The two programmes linking entrepreneurs, EUROPARTENARIAT and the 
INTERPRISE, are described in the report on the application of the Council Decision of 28 
July 19897. These programmes are coordinated by the regional policy and enterprise policy 
staff. 
COM (93) 365 final of 23.07.93. 
a/) 
COMMUNITY OPERATIONS UNDER OBJECTIVE 5 b: DEVELOPMENT OF 
FRAGILE RURAL AREAS 
1. Reminder of the breakdown of the allocation of the three funds in the CSFs 1989-1993 
and state of commitments 
Objective 5b concerns 50 zones in 9 Member States. It covers 5% of the population and 
17% of the territory of the Community. 73 operational programmes have been approved 
under Objective 5b, worth ECU 2,607 million. By 31 December 1993, all the credits 
allocated to this objective were committed. Table 3 shows the breakdown by country, the 
state of commitments as to 31.12.1993 and the breakdown of ERDF operations under 
Objective 5b. 
2. Operations of the various funds 
The ERDF has acted to diversify economic activity in rural areas. The programmes have 
had a spin-off/lever effect on other sources of public or private finance. One "ERDF" ECU 
has in fact generated investments worth about ECU 5. Thus, Community aid worth ECU 2 
billion has generated projects costing ECU 7.5 billion, of which 2.7 billion came from the 
private sector and 4.8 billion from the public sector (Community, national and regional). 
The ERDF operations complement those of the EAGGF in the field of agri-foods, timber, 
tourism (agri-tourism) and rural infrastructures; and those of the ESF, in helping to create 
and renovate professional structures for training. 
ESF intervention in 5b areas is scheduled to total almost ECU 450 million duirng 1989-
1993. In these regions it is mainly a matter of developing training in new skills and 
promoting employment to permit diversification of the economy, particularly in favour of 
farmers. 
Example: the renewal of a traditional cutlery industry in France (Laguiole): although the 
know-how had entirely disappeared, specific training over a 9-month period enabled 7 
trainees to learn their trade from course instructors (professional cutlers). One of them also 
received management training. A private limited liability company was then set up to 
assemble parts from Thiers. It employs around twenty people, and its competitiveness is 
based on the quality of its products. 
\c 
Table 3 
OBJECTIVE 5b 
Breakdown of the amount alloted to the 3 funds entered in the CSFs (1989-1993) 
COUNTRY MECU ('89 prices) Aid per head of population 
(ECU) 
FRANCE 960 170 
GERMANY 525 113 
ITALY 385 133 
UNITED KINGDOM 350 235 
SPAIN 285 289 
NETHERLANDS 44 99 
BELGIUM 32.5 125 
DENMARK 23 215 
LUXEMBOURG 2.5 735 
TOTAL 2607 158 
Commitments as at 31.12.1993 
COUNTRY 
FRANCE 
GERMANY 
ITALY 
UNITED KINGDOM 
SPAIN 
NETHERLANDS 
BELGIUM 
DENMARK 
LUXEMBOURG 
TOTAL EAGGF 
535 
223 
231 
22,2 
204,1 
14,2 
12,2 
3,8 
1,604 
1247 ERDF 
405,2 
288 
158,3 
290,3 
76 
29 
15,2 
15 
1,037 
1278 s ESF 
161 
78 
46 
52,45 
44,3 
11,5 
14,8 
9,8 
0,052 
418 3 FUNDS 
1101,2 
589 
435,3 
364,95 
324,4 
54,7 
42,2 
28,6 
2,693 
2943* 
ERDF 2 MECU not distributed. 
33 
3. Report on ERDF operations 
The sectoral breakdown of ERDF operations in Objective 5b programmes shows that the 
main beneficiaries are the SMEs and craft enterprises followed by tourism, with 40% 
(or over ECU 1 billion) and 32% respectively of the loans. 
The ERDF acts to support: 
the creation of activity zones, enterprise nurseries, "ateliers-relais" [skill centres], 
common services centres, training centres, research and development centres; 
productive investments and office automation equipment or robotics; 
measures to revive or transfer commercial and craft activities and shop renovation 
projects in town centres and villages; 
promotion and support measures, such as advice and innovation aid, incentives to 
improve training, aid for the relocation of activities in rural areas, promotion of tele-
working or the creation of multi-media centres; 
financial engineering to encourage an increase in equity capital (acquisition of 
holdings, participation loans, launch capital) and to reduce debt (joint guarantee, 
interest subsidy, leasing). 
Measures to modernize and adapt production machinery, to support the establishment and 
expansion of enterprises by using start-up accommodation ["bâtiments-relais"] and activity 
zones are obviously implemented more rapidly than "non-material" support such as 
business advice, transfer of technologies or financial engineering. 
Tourism has been given priority as a line of action in almost all the operational 
programmes. However, there are still insufficient funds to meet the growing demand. 
Projects funded by the ERDF are concerned mainly with the creation and development of 
accommodation, facilities to exploit the full potential of tourist centres and the stimulation 
and promotion of tourism. 
1y 
However, operations have related principally to accommodation, these being the easiest to 
implement. 
As regards the environment, some of the ERDF operations have related to investment by 
enterprises (SMEs, craft and service businesses) aimed at limiting pollution in their 
production systems. 
The first programming report reveals a number of shortcomings. In some Member States, 
the volume and distribution of the funds were determined in advance and not on the basis 
of the needs set out in the development plans. Most of the zones do not readily accept 
innovations such as new communication techniques or financial engineering. Thus, under 
the "SME support" programme, there was heavy emphasis on material investments, to the 
detriment of non-material investments such as advice or training. Furthermore, measures to 
promote the integration of SMEs in the single market or to limit the effects of opening up 
frontiers and increasing competition (taxation, standardization) are inadequate. 
Some partners, particularly enterprises, have been forced to alter their investment 
programme because of the downturn in the economy from 1991 onwards. In some Member 
States, local authorities have even had to set new priorities to take account of budget 
austerity. Thus, in some cases it has not been possible to create productive infrastructures 
(industrial areas) or tourist facilities. Measures to stimulate trade and rural craft activities 
centred around towns have not always been preceded by an analysis of location priorities. 
The concept of a "focal point" is still lacking. 
In the light of this first report, analysis of the handicaps of rural zones has identified the 
needs of SMEs in rural areas which must be met by the priorities of the new planning 
period. 
The great majority of rural zones feature the following: 
insufficient and inappropriate advisory services and reception structures 
remoteness from information and innovation centres; 
few subcontracting SMEs 
inadequate standard of vocational qualifications 
low propensity for executives to move there 
shortage of financial instruments. 
Thus, the needs of SMEs relate to finance, including public aid, the supply of services, 
training and the integration of enterprises into the network. 
In the next programming period (1994-1999) support for SMEs should therefore focus on 
three priority lines of action: 
expanding the supply of services for SMEs, including training and telematics; 
helping SMEs to adapt to the constraints of the internal market; 
encouraging the participation of local SMEs in a system of organised cooperation 
networks. 
This general pattern corresponds to the objectives of the enterprise policy. 
1.1.2 OPERATIONS UNDER OBJECTIVE 5a: speeding up the adjustment of 
agricultural structures and the improvement of the processing and marketing 
of fishery and aquacultural products 
Community financial aid for these operations is granted by the EAGGF Guidance Section. 
L Structural aid for the modernization of farms 
Community legislation8 provides for the possibility of granting structural aid to farmers 
and/or groups of agricultural producers. The EAGGF Guidance Section aid was in the 
order of ECU 983 million in 1992 and concerned the part-financing of three principal 
measures, namely: 
investment aid at a rate of approx. 50,000 new farmers each year, encouraging the 
diversification of activities, greater consideration for the environment and higher rates 
of part-financing for backward regions; 
compensation in the form of allowances for over 1.2 million farmers in disadvantaged 
regions: these may represent over 30% of the income of such regions; 
8 Regulation (EEC) No. 2328/91, OJ L 218 of 06.08.91 ; No. 1096/88, OJ L 110 of 29.04.88 and 
Regulation (EEC) No. 1360/78, OJ L 166 of 23.06.78. 
^ 
start-up and investment aid for young farmers (essential in order to rejuvenate the 
agricultural population). 
These measures were successful for viable farms and young farmers, and in countries such 
as Spain and Portugal which have used them recently in connection with the modernization 
of their agriculture. 
2. Aid for modernization of the processing and marketing of agricultural and forestry 
products 
There are two regulations providing for Community support for the modernization of the 
processing and marketing of agricultural products (Regulation (EEC) No. 866/90) and 
forestry products (Regulation (EEC) No. 867/90). While the first provides for the 
possibility of supporting investments by natural or legal persons or groups, the second 
gives priority to financing investments which concern SMEs. 
In 1991, among the 846 projects supported by EAGGF aid worth ECU 396 million, 506 
SMEs (almost 60% of the projects) received Community aid worth ECU 218 million 
(or 55% of EAGGF aid). In 1992, of the 1,137 projects supported, corresponding to 
EAGGF aid worth ECU 440 million, 890 SMEs (or 78% of the projects) received aid 
worth ECU 271 million (or 62% of EAGGF aid). Although SMEs represent the majority 
of the beneficiaries in many projects, they submit smaller projects so that EAGGF aid to 
SMEs is proportionately less than for large enterprises. 
Furthermore, the importance of SMEs varies greatly from one Member State to another: 
for example, 33% of projects in Denmark concerned SMEs as opposed to 100% in Spain 
and Greece in 1991. The participation of SMEs increased between 1991 and 1992, rising 
from 60% to 78% of projects and from 55% to 62% of EAGGF aid. The average EAGGF 
contribution per project carried out by SMEs also varies considerably. In 1991 it ranged 
from ECU 61,260 in France to ECU 801,530 in Germany, the Community average per 
SME project being ECU 431,527 (excluding Luxembourg). In 1992 the difference 
between Member States diminished (from 65,649 for the Netherlands to 559,838 for 
Ireland) and the average per SME project was ECU 304,600. Finally, in 1991 the 
average EAGGF-orientation contribution funded for other projects not concerning SMEs 
was 21% higher than for SMEs and over double in 1992. 
^ * 
3. Improvement of the processing and marketing of fishery and aquacultural products 
Community regulations9 provide for the possibility of part financing public, semi public, 
and private investment projects which involve the improvement of production methods 
including the processing and marketing of fishery and aquacultural product. These 
investment projects include the construction and modernisation of commercial premises and 
infrastructure, the improvement of sanitary conditions, the introduction of new technologies 
and the development of new processes and products. Priority is given to projects submitted 
by groups of producers and cooperatives, as well as to projects which meet the specific 
needs of SMEs. In 1993, ECU 74 M were granted to approximately 60 projects. 
1.1.3 THE EUROPEAN SOCIAL FUND AND SMEs 
The task of the European Social Fund is to improve job opportunities in the Community. 
Essentially, it supports vocational training operations (accompanied, where necessary, by 
vocational guidance), employment aid and the development of appropriate training 
structures. 
As stressed in the previous report, since the 1980s the ESF has placed the emphasis on 
supporting vocational training and employment for workers in small and medium-sized 
enterprises, in view of their importance in the varied fabric of the economy and in job 
creation. 
This applies, for instance, to the 198810 regulation, which gives preference to vocational 
training and employment aid for the purpose of modernizing SMEs, including co-operatives 
and associations. 
0 
f 
The new regulations approved on 20 July 199311 further reinforce this trend. SMEs are to 
be given special attention under the new Objective 4 (devoted to adapting workers to 
industrial change and changes in production systems). 
9 Regulation No. 4042/89, OJ L 388 du 30.12.89. 
10 Regulation No. 4255/88 of 19 December 1988. 
11 Council Regulation (EEC) No. 2084/93 of 20 July 1993 amending Regulation (EEC) No. 
4255/88 laying down provisions for implementing Regulation (EEC) No. 2052/88 as regards 
the European Social Fund. 
For this purpose, training operations are to be linked to the requirements which SME 
workers have to fulfil as a result of changes in production systems, the need to promote 
quality products and to preserve the environment. 
Similarly, under Objectives 1, 2 and 5b, where the Social Fund aims to promote stability 
and growth of employment in the regions concerned, it is clearly stated that part-financed 
projects will in particular include continuing vocational training, advice and guidance for 
workers of either sex in SMEs. 
Horizontal Objectives: Objectives 3 and 4 
The ESF spent over ECU 7 billion on combating long-term unemployment and integrating 
young people into working life during 1989-1993. 
In providing vocational training for the long-term unemployed and the young under these 
two Objectives, in order to give them basic training associated with work experience and/or 
training in new technologies, the ESF aims to raise the standard of qualifications of the 
labour force throughout the Community, which could benefit SMEs. 
In connection with these Objectives, the ESF also supports vocational training projects in 
favour of the most vulnerable people, particularly the disabled, in order to integrate them 
into the ordinary, unprotected work environment and enterprises. 
One example in Luxembourg: from market analysis, two foundations confirmed a significant 
increase in demand for labour in horticulture and gardening (activities most commonly 
performed by craft enterprises and SMEs, which offer an opportunity to integrate physically 
or mentally handicapped people into the economy). 
They set up worker training "under glass " for the physically and mentally handicapped, 
with ESF support, which reached "cruising speed" in 1991. Tfiis type of action is 
sometimes accompanied by a campaign to increase awareness among employers (by 
brochures, seminars), in order to encourage them to take on disabled staff" (e.g. in the UK). 
The ESF also aims to support the creation of enterprises by the long-term unemployed and 
the young. 
1 9 
Vocational training part-financed by the ESF aims to eliminate a major obstacle to the 
creation of enterprises, namely the lack of theoretical and practical knowledge in this field: 
research has shown (e.g. in Belgium) that only the best-trained people want to set up their 
own business. 
In conclusion, it should be remembered that the operation of the Social Fund is governed 
by the principles of Structural Fund reform, and thus by the principle of partnership. In 
accordance with this principle, all Member States are responsible for selecting projects 
locally and subsequently submitting them for Community funding. In this situation, the 
Commission's staff cannot always know about the projects (if they are not the projects 
which the Member States themselves chose to emphasize, particularly in the monitoring 
committees). 
It should also be noted that the principal responsibility for informing the final beneficiaries 
of structural operations in the field of training and employment rests with the Member 
States; this obligation is reinforced in the new legislation which has just been approved for 
the Structural Funds. It is therefore necessary to ensure that Member States improve the 
distribution of information on structural operations, particularly for enterprises. 
1.1.4 COMMUNITY INITIATIVES 
There are two new measures to be added to the Community initiatives presented in the 
previous report: 
KONVER in favour of areas affected by the reduction in the activities of armament 
industries and military bases. Launched at the request of the European Parliament, the 
KONVER initiative was adopted on 6 April 1993 under Article 11 of Council Regulation 
EEC No. 4253/88. It follows the financing of pilot projects in 1991 and 1992 under the 
PERIFRA budget heading. This action is included in the 1993 budget with a credit of ECU 
130 million (ECU 85 million for the ERDF and ECU 45 million for the ESF) and will 
continue in 1994 and beyond. The new German Lander are eligible. The measures covered 
include training, innovation and environmental measures generally used in conversion 
programmes. A number of Member States, such as the United Kingdom and Belgium, have 
submitted measures in favour of SMEs in their programmes. 
KD 
The RETEX initiative, adopted in 199212, is intended to speed up the economic 
diversification of the areas concerned, in order to reduce their dependence on the textile 
and clothing sector and to facilitate the adaptation of viable enterprises in all industrial 
sectors. The contribution of the Structural Funds is estimated at ECU 100 million up to the 
end of 1993 with a budget of ECU 400 million planned for 1994-1997. Partially financed 
measures include the improvement of know-how, encourage innovation by means of 
advisory services, technical assistance, co-operation programmes, vocational training, 
renovation of buildings and improved access to venture capital and loans. 
Among the Community initiatives launched, a number can be grouped under the heading of 
"integration of the least developed regions into the Internal Market" were of special interest 
to SMEs. These are STRIDE, TELEMATIQUE and PRISMA. 
STRIDE: ECU 460 million from the ERDF and the ESF (1990-1993) 13 
STRIDE aims: 1) to increase the capacity for innovation and technological development 
of Objective 1 regions, where a lack of facilities and investment has 
been identified in relation to Community averages; 
2) to increase participation by research centres and institutions and by 
enterprises from these regions in Community or international research 
programmes and networks. 
The initiative is also helping to develop links between industry and research in the regions 
of both Objective 1 and Objective 2. 80% of STRIDE resources are allocated to Objective 
1 regions. 
TELEMATIQUE: ECU 233 million from the ERDF (1991-1993)14 
TELEMATIQUE aims to promote the use of advanced telecommunications services in 
Objective 1 regions, including improved access to advanced services located in other 
regions of the Community. The initiative reinforces the process begun by the STAR 
programme by encouraging SMEs to use advanced telecommunications services and 
helping them to establish or develop such services themselves. 
12 Commission decision, OJ C 142 of 04.06.92, p. 5. 
13 OJ C 196 of 04.08.90, p. 18. 
14 OJC 33 of 08.02.91, p. 7. 
-g^ 
PRISMA: ECU 114 million from the ERDF (1991-1993) 15 
PRISMA aims to improve infrastructures and services to enterprises in Objective 1 regions 
so that enterprises in these regions can participate and obtain full benefit from the 
completion of the single market. 
Eligible measures concern: 
- the creation or expansion of calibration and metrology services for enterprises in order to 
contribute towards the quality policy of the enterprises; 
- technical assistance to SMEs as regards the opening up of public procurement and to 
help them to cope with the abolition of measures within the meaning of Article 115 of 
the EC Treaty. 
As regards rural development, the leader Community initiative should be mentioned 
because of its interest to SMEs, craft industries and tourism. 
LEADER - (Links between actions for the development of the rural economy): ECU 450 
million from the 3 funds (1991-1993)16 
LEADER aims to encourage a local development approach based on the consideration of 
programmes run by local development structures in zones of Objectives 1 and 5b. Part-
financing is provided by means of global grants. In this context, LEADER supports 
integrated programmes comprising a wide range of eligible measures: stimulation of rural 
development, vocational training and employment aid, rural tourism, small and medium-
sized enterprises, craft industries and services, developing local agricultural and forestry 
products, providing facilities for local development groups, including telecommunications 
equipment. 
LEADER has benefited 217 local groups. An initial "snapshot" of the programme shows 
that 25% of the budgets are devoted to SMEs and craft industries with a higher 
proportion in 5b zones of France and Italy. 
15 OJC 33 of 08.02.91, p. 9. 
16 OJC 73 of 19.03.91. 
•Z Z. 
Support for SMEs and craft enterprises is often supplemented by measures relating to 
human resources or the development of local agricultural products. Tourism is the most 
highly developed area of action under LEADER, representing over 42% of expenditure. 
Tourism can be regarded as also concerning SMEs as this sector consists mainly of SMEs. 
The Community initiatives in connection with the Community Human Resources NOW, 
HORIZON, and EUROFORM have to be mentioned for which the ESF intervenes. They 
emphasize the transnational dimension of the projects funded. More particularly, NOW 
(equal opportunities for men and women) aims to promote the creation of businesses by 
women. 
Example: under NOW, the project set up in 1991 by the Saint Gabriel Family Social Centre 
near Marseilles, for women wishing to achieve social and occupational reintegration. 
There are plans to create two enterprises in the clothing and catering sectors. At the same 
time, child-care facilities have been organised for women undergoing training. This project 
is being run in partnership with a similar project in Naples (Italy). 
An evaluation of Community initiatives has been launched, and the conclusions should be 
available in 1995. 
THE FUTURE GENERATION OF COMMUNITY INITIATIVES 
On 16.06.1993 the Commission published a green paper on the new generation of 
Community initiatives for 1994-1999 which caused widespread discussion of Community 
initiatives. All the partners were requested to state their opinion by the end of September 
1993. In doing so, Member States' representatives responsible for SMEs (Article 4 
Committee) and the professional organisations representing SMEs were also informed and 
consulted so that they could express their opinions and, if appropriate, submit proposals for 
meeting the specific needs of SMEs, and thus increased the participation of SME 
organisations. 
By definition, Community initiatives have an obvious value added because.,of their 
Community dimension. Unlike the CSFs, they can include measures which extend beyond 
national frontiers and offer an appropriate framework for promoting transnational co­
operation and the pooling of know-how in areas facing the same problems. They help to 
implement innovations by enabling new approaches to be tried out, which can subsequently 
become an integral part of the CSFs. 
*3 
On the 16.02.1994, the Commission adopted its overall approach on the Community 
Initiatives for the period 1994-1999. Total resources amount to ECU 13.45 bn being 9% of 
total Structural Fund resources. 
Among the 9 themes proposed by the Commission, there are some which are a continuation 
from before. This is so for INTERREG II; internal and external cross border cooperation, 
LEADER II, rural development, REGIS II, outmost regions, the initiative for 
EMPLOYMENT-HUMAN RESOURCES with NOW and HORIZON, the initiative to 
assist regions affected by industrial change RECHAR, RESIDER, RETEX, and KONVER. 
Significant initiatives were proposed to respond to industrial change and to follow through 
with the measures introduced in the White Paper on "Growth, Competitiveness, and 
Employment", for example EMPLOYMENT-YOUTH START, EMPLOYMENT-AD APT, 
the URBAN and PESCA initiatives and finally and above all the SME initiative. 
The SME initiative with a budget of ECU one billion of which ECU 800 M is directed to 
objective 1 areas will fund projects designed to improve production systems, the diffusion 
of technological innovations, cooperation between SMEs and access to credit and venture 
capital. This initiative will be an integral part of the "2nd generation" of Community 
actions favouring SMEs. 
The proposed initiatives were submitted to the European Parliament, the Committee of the 
Regions, the Economic and Social Committee, as well as the new management committee 
for the Community initiatives which is composed of representatives from the Member 
States. The Commission decided the initiatives on 15 June and the texts were published in 
the Official Journal on 1 July 1994. 
1.1.5 AN INITIAL EVALUATION OF THE USE OF THE STRUCTURAL FUNDS 
BY SMEs 
Structural fund aid is made available to national and regional authorities on the basis of 
Community Support Frameworks devised in partnership between the Commission and 
Member States. The CSFs are concentrated on a small number of priority lines of action 
and do not define specific projects. They therefore do not permit any precise breakdown of 
the amounts allocated to SMEs or any indication of the resources which SMEs actually 
received during 1989-1993. 
gt-f 
As regards Objective 5b, however, analysis of the services does indicate entirely 
satisfactory results. 40% of ERDF operations under objective 5b (for 1989-1993), 
namely over ECU 1 billion, concern SMEs and craft industries. This high rate of 
intervention in favour of SMEs and craft industries illustrates the importance of the 
potential role of SMEs and craft industries in the development of rural areas. On the other 
hand, as regards regions eligible under Objectives 1 and 2, there are no figures available to 
show the breakdown of ERDF operations in favour of SMEs and craft industries in 
particular. 
One should however mention the results of a study carried out in February 1993 for the 
Commission on "The use of the structural funds by SMEs". This study was based on 
national reports and reflects the difficulty in identifying specific projects. 
A whole range of measures and instruments have been set up to support enterprises, e.g. in 
the following fields: productive investment, access to finance - financial engineering 
(venture capital, launch capital, guarantee funds, interest subsidies, etc.), business 
modernization and restructuring, establishment of enterprise nurseries, technology parks, 
vocational training, technological innovation centres, research, creation and development of 
enterprises, advice for enterprises (management, marketing), international promotion, 
exports. However, SMEs have not always succeeded in benefiting from the support 
intended for them. 
The study shows that out of ECU 10 billion reserved for supporting enterprises under CSFs 
for the regions of Objectives 1, 2 and 5b (or 20% of the total budget of the CSFs), only 
ECU 2.5 to 3 billion was allocated to SMEs in operational programmes, among which 
SMEs would actually have received only a small proportion of the available funds, 
particularly in regions eligible under Objective 1. 
The study proposes a number of recommendations which are worth considering: 
involve organizations representing SMEs (such as chambers of commerce and industry, 
craft chambers, regional development agencies, and small business federations) in the 
preparation, implementation and monitoring of operational programmes. In its contacts 
with Member States, the Commission should insist on greater involvement in the 
partnership for the professional organisations of SMEs; 
simplify Community aid application procedures and make them more transparent for 
SMEs, and speed up the allocation of loans; 
increase efficiency and diversify the networks of intermediaries who can actually deal 
with Community aid applications from SMEs at local and regional level; 
persuade national authorities to use the loans and global grants available; 
improve structural fund monitoring and evaluation procedures in order to be in a better 
position to evaluate the specific impact of Community intervention on SMEs. 
However, one finds that the SMEs themselves impede their ability to absorb Community 
aid because: 
they lack the necessary management capability or business development strategy; 
owner-operators are unwilling to dilute their business capital, a pre-condition for 
obtaining most forms of venture capital; 
SMEs have limited ability to structure their projects in a commercially viable manner 
and to supply the information required for evaluating the ventures associated with 
granting aid (lack of "business plans"). 
The situation is complex. The Commission's staff themselves face a number of problems in 
measuring the impact of the structural funds on SMEs, particularly because of: the 
programming approach, which does not permit identification of projects which might be 
submitted by SMEs, the large number of operational programmes (over 500 just for 
Objectives 1 and 2) and the actual definition of SMEs, the criteria for which differ from 
one Member State to another. It is also difficult, in the CSFs, to distinguish direct 
measures in favour of SMEs from measures which could be indirectly beneficial to SMEs. 
Moreover, measures in favour of SMEs can be classed under several lines of action: 
"industries and services", "business competitiveness", "local development", "research and 
technological development", which may benefit SMEs even though not specifically aimed 
at them. 
<?C 
Finally, Member States also tend to give preference to infrastructure rather than to 
measures to support SMEs, which has the advantage of consuming loans more rapidly and 
producing immediate, tangible results, which is not always true of measures in favour of 
SMEs. 
Nevertheless, the Commission's staff have examined the CSFs and a large number of 
operational programmes in regions eligible under Objectives 1 and 2. On this basis, they 
have estimated the loans allocated to SMEs. These estimates show that almost ECU 5 
billion (1989 prices) has been allocated to direct measures in favour of enterprises, 
particularly SMEs. If we add to this ECU 5 billion the amount of intervention under 5b of 
ECU 1 billion, total intervention under Objectives 1, 2 and 5b can be estimated at 
almost ECU 6 billion allocated to SMEs, or almost 13% of the volume of the CSFs for 
these 3 Objectives. 
Taking stock of measures and summarizing budgets in this way is well beyond the scope of 
this report and requires closer coordination not only by the Commission's staff but also by 
Member States (particularly the regional authorities) responsible for implementing the 
programmes. 
One possible way of improving knowledge of both the measures actually implemented and 
the amounts which in fact benefit SMEs would be to persuade Member States to distinguish 
measures in favour of SMEs from other measures. For this purpose, inclusion of a sub-
programme or "SME development support" line of action in the CSFs would have the dual 
advantage of rendering measures in favour of SMEs more visible and adopting a 
differentiated, integrated approach to take account of the specific needs of SMEs. Targeting 
action in this way would enable SMEs to be better informed of the possibilities of 
Community support, find answers to their problems and thus improve their access to this 
aid. This would also make it easier to identify examples of particularly innovative good 
practices and transfer them to the regions facing greater problems. 
The Commission wishes to improve the visibility of projects carried out in favour of SMEs 
as part of regional policies. For this purpose, it is endeavouring to persuade Member States 
and responsible authorities to pay special attention to support for SMEs in the new 
Community Support Frameworks. 
^3 
One way of attaining this objective also lies in the implementation of Article 4 of the new 
framework regulation, which provides for extending the partnership to "the competent 
authorities and bodies - including, within the framework of each Member State's national 
rules and current practices, the economic and social partners designated by the Member 
State." 
In proposing this expanded partnership, the Commission intended to foster participation at 
national, regional and local level by competent authorities and bodies which can help to 
increase and improve the effectiveness of structural fund operations. While it is clearly up 
to Member States to designate the economic and social partners, the implementation of this 
partnership could be a chance for businesses, especially SMEs, to gain representation and 
hence influence over the use of the Structural Funds in their region. 
The framework of the next set of programmes is fixed. It is now up to all the partners to 
decide on the role that SMEs might play. 
1.2 THE EUROPEAN INVESTMENT BANK (EEB) AND SMEs 
1.2.1 Within the Community 
Set up to facilitate the financing of investments encouraging European integration with 
funds borrowed on • the capital markets, the European Investment Bank, financial 
independent institution of the European Community, has performed as a financial 
institution supporting Community policies. 
The EIB finances investments fulfilling the objectives of Community policies, the priority 
being to support regional development and to help to develop communications networks, 
but also to support environmental protection and a better standard of living, and finally to 
increase the competitiveness of industry. It also contributes towards policies concerning co­
operation with non-member countries. 
In order to increase industry's international competitiveness and encourage its integration at 
Community level, the EIB finances large-scale investments by means of individual loans 
and small-scale investments, particularly by small and medium-sized enterprises, indirectly 
via its global loans. 
•Î-Î 
The EIB uses global loans to support small and medium-scale investments, 
particularly by SMEs, which could not be financed by individual loans on grounds of 
administrative efficiency. Global loans are concluded with financial intermediaries 
operating at national, regional or even local level, who use them in agreement with the 
Bank and according to its economic, technical and financial criteria. Global loans have 
gradually extended their scope to adapt to changing needs and the diversification of 
Community policies. 
Global loans usually fulfil several Community policy objectives and concern: 
in disadvantaged areas, small and medium-sized enterprises in industry, services 
(especially tourism) and agriculture and small-scale infrastructures; 
outside these areas, investments by small and medium-sized enterprises in industry and 
tourism; 
and whatever their location, small and medium-scale investments which contribute 
towards Community objectives in the sphere of environmental protection, energy, 
transport and advanced technologies. 
«• 
The EIB collaborates with almost a hundred partners, financial institutions or commercial 
banks. 
The figures in Table 4 show the importance of the EIB's role in supporting investments by 
SMEs. 
Since 1988 the EEB has provided considerable support for the funding of SMEs. Thus, 
almost 36,500 SMEs have received loans worth a total of over ECU 9.7 billion, or 
more than 50% of the finance allocated to industry and services. More than 23,000 
operations (ECU 6.4 billion credit) concern investments in assisted areas and about 
13,500 projects outside these areas (of which 11,600 and ECU 3 billion represent own 
resources, 1,700 and ECU 660 million are NCI resources). 
£5 
Table 4 
THE EUROPEAN INVESTMENT BANK 
The EIB in figures: 
The volume of EIB loans totalled: 
in 1992: MMECU 17 (up 10.7 % in 1991), of which MMECU 16 was loaned in the 
Community and MECU 893 in connection with non-member country 
cooperation policies. 
in 1991: MMECU 15.3 
The EIB and regional development: 
1992: MMECU 11.8 (93 % in regions eligible for structural fund intervention: 
Objectives 1, 2 and 5b). 
1991: MMECU 8.49 
Between 1989 and 1992, EIB finance in favour of regional development totalled over 
MMECU 35, including MMECU 31 in assisted zones (Objectives 1, 2 and 5b). 
The EEB and SMEs: 
In 1992 the EIB concluded global loans totalling ECU 3,258 million, compared with 
3,758 million in 1991. Altogether, 8,788 credits worth 4,071 million were granted in 
1992 compared with 10,271 worth 2,991 million in 1991 (of which respectively 17 
million and 71 million on global loans of the current NCI). 
40 % of the volume of credits under global loans was granted for small and medium-
scale investments in the infrastructure and energy sectors, usually carried out by local 
authorities. 
60 % of credits under global loans go mainly to support SMEs in the least developed 
regions. A breakdown of SMEs by the number of persons employed shows a 
concentration of enterprises with fewer than 50 employees (over half the amount and 
almost 75 % of the number of credits). 
Finance granted by the EIB in the Community to support the competitiveness of 
enterprises totalled 
in 1990: MMECU 3.7 of which almost MMECU 2 was for 7,447 SMEs 
in 1991: MMECU 3.3 of which MMECU 2.3 was for 9,548 SMEs (including credits 
under global loans from the NCI) 
in 1992: MMECU 2.6 of which MMECU 2.1 was for 7,223 SMEs. Italy (MECU 
913), Germany (MECU 321), France (MECU 318), Belgium (MECU 183) 
and Spain (MECU 162) have benefited most from global loans for SMEs in 
1992. Moreover, the EIB supports SME investments as far as the 
environment or the rational use of energy are concerned. 
^o 
(6 
The European Council in Edinburgh on 11 and 12 December 1992, recognising the 
importance of the role of the EIB, particularly in the unfavourable economic climate, 
requested it to implement a temporary loan mechanism totalling ECU 5 billion (for 1993 
and 1994), more commonly called the "Edinburgh facility", in order to speed up the 
funding of infrastructure projects, particularly those relating to trans-European transport 
networks, telecommunications, energy and environmental protection. The mechanism is 
already in place and the EIB has already granted loans for an amount of ECU 3.5MM in 
November. 
At the same Council it was also decided to create a European Investment Fund, as part of 
the European growth initiative, to grant loan guarantees for projects relating to trans-
European networks and SMEs. With a capital of ECU 2 billion underwritten by the EIB 
(40%), the Commission (30%) and banks (30%), this instrument will be able to grant 
guarantees up to an ultimate total of eight times its subscribed capital, or ECU 16 billion. 
Later on the EIF could acquire shareholdings. Thus, this new fund will be able to benefit 
SMEs throughout the Community by guaranteeing them loans. 
The European Council of Copenhagen on 21 and 22 June 1993 requested the EIB, in co­
operation with the Commission, to increase the temporary loan mechanism adopted in 
Edinburgh (the "Edinburgh facility") by ECU 3 billion and to extend it beyond 1994. Of 
these ECU 3 billion, one billion will go to improve the competitiveness of SMEs, now 
called the "SME facility". The loans will have a 2% interest rebate granted within a period 
of 5 years. Only investment projects which will ensure job creation will benefit from these 
interest rebate. 
1-2.2 Outside the European Community 
Outside the Community, the EIB operates within the framework of the Policy for 
Cooperation with third countries. It provides finance for investments in industry, 
agriculture and services, mainly through global loans with financial institutions and 
development banks. 
In the countries of Africa, the Carribean and the Pacific as well as the overseas countries 
and territories the EIB cofinances such investments partly from its own resources and partly 
from risk capital from the budget resources. 
From 1976 to 1992 within the 4 Lomé Agreements more than ECU 1900 million (57% of 
the total assistance) was accorded to investments in the production sectors, of which about 
500 million was given to aproximately 1100 small enterprises in the private sector. 
9/] 
In the countries of the Mediterranean basin various financial protocols in force from 1988 
to 1992 permitted the funding of projects in industry, agriculture and services of up to 
ECU 400 million (24% of the total) of which 200 million went to 1400 investments by 
small enterprises in the private sector, mostly in partnership with enterprises from EU 
countries. 
In Central and Eastern Europe the activity engaged in since 1990 has permitted the support 
of investments mainly in the infrastructural sector and the energy sector. In industry the 
progressive development of the banking sector made it possible to provide global loans up 
to a total of 290 million (from a total of 890 million at the end of 1992) for about 20 first 
credits operations amounting 42 million. 
1.3 THE NEW COMMUNITY INSTRUMENT (NCD AND SMEs 
To be eligible, the projects which are submitted must comply with the objectives fixed by 
the Council in its decisions "enabling the commission to contract loans to promote 
investments in the community". These objectives are detailed in the implementation 
decisions authorizing the various sets of loans. The Commission and the EIB negociated 
cooperation agreements for the mandates given to the Bank to act on behalf of the 
community, for the account and at the risk of the community. 
The general objectives change little from one NCI tranche to another, and concern the 
funding of investment projets contributing to a growing convergence and integration of 
economic policies (NCI I, II and III) to industrial change and to the competitiveness of the 
Community, notably in the application of new technologies and innovations (NCIIV). 
As regards the guidelines, they are more specific and turn the various NCI tranches into 
instruments meeting the requirements of the economy of the moment. 
Therefore, the implementation decision for NCI II17 provided for the funding of SME 
productive projects together with funding energy and in infrastructural projects. 
17 Council decision 82/169/EEC of 15.03.82, JO L 078 of 24.03.82, p. 19. 
ÏJL 
The NCI III18 retains the same priority. The guidelines established by the Commission 
ensure that the SME-NCI loans which are not submitted to any geographical limitation, 
could be used to complement the EIB operations in non assisted areas. 
The NCI IV19 was confined exclusively to funding projects for SMEs in industry, 
particularly those projects that include new technologies and innovation as well as the 
rational use of energy. Furthermore, these loans could be used to fund certain intangible 
activities such as those connected with patents, know-how, research and development. 
The Council of Ministers in their decision empowering NIC IV20 "invited the EIB to set 
aside a fund of ECU 750 M from its own resources" for loans covering the same fields. In 
authorising the EIB to intervene in favour of SME projects outside assisted areas with its up 
to 750 million, the Council of Bank governors has also authorised the Bank to pursure if 
necessary that type of investment beyond that tranche. 
The NCI in figures: 
On 31.12.1992, loans granted under NCI III and NCI IV totalled ECU 3,544.4 million, 
of which ECU 682.8 million were for NCI IV. These loans were used to finance new 
investments worth ECU 7.2 million, corresponding to over 9600projects and helping to 
create almost 60,000 new jobs. In addition, most of the loans are concentrated on 
enterprises with fewer than 50 employees, in terms of both the number of projects 
financed and the amounts granted. 
The major part of the global loans under the last 3 tranches (NCI II, NCI III and NCI IV) 
went to industrial enterprises (89%), particularly the engineering industry (19%), the 
food industry (13%), the textile industry (10%) and the paper indsutry (8%). A 
significant proportion went into services (7.5%) and particularly business services 
(5.4%). Moreover, the bulk of the individual loans was concentrated in the assisted 
regions of the Community. More particularly, in the case of NCI IV (ECU 682.8 million), 
the breakdown of loans by country shows that Italy received the most (ECU 285.7 
million), followed by Spain (ECU 132 million) and the UK (ECU 96.1 million). 
18 Council decision 83/200/EEC of 19.04.83, JO L 112 of 28.04.83, p. 26. 
19 Council decision 87/182/EEC of 09.03.87, JO L 71 of 14.03.87, p. 34. 
20 Council decision 87/182/EEC of 09.03.87, JO L 71 of 14.03.87, p. 34. 
3> 
1.4 The ECSC and SMEs 
SMEs in some areas of industrial decline benefit preferentially from this type of 
Community resources within the context of the loans granted by the ECSC . They are loans 
granted under favourable market conditions with interest rebates (max. 3%) in connection 
with job creation. 
H RESEARCH AND TECHNOLOGICAL DEVELOPMENT (R & TD) AND 
THE SMEs 
The attention being paid by the Commission to strengthening the cohesion and coordination 
between Research and Technological Development (R & TD) policies and action in favour 
of SMEs is clearly expressed in the Commission's proposal to the Council on the 4th R & 
TD Framework Programme21. 
R & TD is a key element in the competitiveness of SMEs in a context of heightened 
international competition} That is why the Commission has endeavoured to increase the 
participation of SMEs in Community research programmes. The Commission has in fact 
opened up its R & TD programmes to SMEs and is taking action to disseminate new 
technologies. 
The communication from the Commission entitled "SMEs and Community activity in 
research and technological development"22 makes a detailed analysis of the participation of 
SMEs in existing programmes, particularly those under the 3rd R & TD framework 
programme, and sets out the prospects offered by the 4th R & TD framework programme 
for the achievement of more effective co-ordination. 
In the present report the Commission has concerned itself with R & TD programmes which 
have formed the subject of particularly close coordination between the Commission's staff, 
especially programmes more specifically aimed at SMEs and programmes in which SMEs 
have played an active part. 
21 Fourth R & TD framework programme. COM (93) 276/OJ 93/C 230/04. 
22 COM (93) 356. 
3y 
II.l PARTICIPATION BY SMEs IN R & TD PROGRAMMES CONCERNING 
INDUSTRIAL TECHNOLOGIES AND MATERIALS, THE ENVIRONMENT, 
BIO-SCIENCES AND TECHNOLOGIES AND ENERGY 
Under Community framework programmes for research and technological devleopment, 
the participation of SMEs is a strategic priority. This priority is reflected in the 
implementation of individual specific programmes, which shows an active move to 
encourage greater participation by SMEs in all the research projects undertaken. Contracts 
signed in 1991 and 1992 under all the specific R & TD programmes, taking all sectors 
together, with the exception of information and telecommunications technologies, include: 
1004 contractors (or 11.5%) are SMEs, representing a commitment of ECU 167 
million (or 12% of the total budget). The corresponding percentages for industrial 
programmes such as BRITE-EURAM industrial and material technologies (32% of 
contractors and 25% of funds) and JOULE non-nuclear energy (16% and 19%) are 
less than the general average, as one might expect. SMEs are playing a growing part 
especially in the BRITE-EURAM programme (industrial technology and materials), under 
which there are two specific projects aimed at SMEs entitled Feasibility Premiums (FPs) 
and "Cooperative Research Action for Technology (CRAFT)". 
Feasibility premiums are aimed at individual SMEs with research capacity which wish to 
prepare a proposal for the BRITE-EURAM programme. This action grants financial aid up 
to a maximum of ECU 30,000 and covering up to 75% of the total cost of feasibility 
studies lasting 9 months and intended to test or prove the feasibility of a concept, process 
or material for a BRITE-EURAM project. 
CRAFT enables SMEs with few if any R & TD resources to gain access to research by the 
allocation to a transnational group of industrial SMEs of financial aid equivalent to 50% of 
the total cost of an R & TD project carried out by a third organisation (research centre, 
university or enterprise). Individual projects must involve a minimum of 4 independent 
SMEs from at least 2 Member States and the budget must be between ECU 400,000 and 
ECU 1 million over a one or two-year period. 
One of the basic criteria for projects under the framework programme is transnational 
cooperation (shared-cost research projects, concerted action and accompanying measures). 
3S 
This cooperation should entail close contact with businesses, universities or research centres 
in other regions of the Community. In this context, CRAFT has the specific aim of 
stimulating close collaboration between SMEs themselves by bringing together businesses 
in a particular sector or from different sectors to consider a common technical problem 
which can be dealt with jointly for the benefit of all. 
In order to improve access to CRAFT for potential customers of SMEs and to obtain a 
support and advice instrument for SMEs wishing to participate in CRAFT, a network of 
"National Focal Points" has been set up by the Commission, covering all Community and 
EFTA countries. This is an informal, flexible network not financed by the Commission, 
but it is through this network that information is distributed and many CRAFT 
accompanying measures are organised (promotion targeted on SMEs, sectoral studies, 
workshops), helping SMEs to identify their R & TD needs and their partners before 
submitting their candidature to CRAFT. 
The promotion of CRAFT has also been particularly fruitful via the R & TD sub-network 
of the Euro-Info-Centres. There have been similar contacts between Commission 
departments and the VALUE relay centres recently set up. 
Apart from programmes aimed specifically at SMEs, other measures are taken in favour of 
SMEs, such as the inclusion of special mention in all information documents and wider 
circulation of R & TD results among SMEs. 
The Feasibility Premiums action implemented since 1989 currently has a budget of ECU 6 
million for 1991 to 1993. The CRAFT programme has a budget of ECU 57 million for the 
same period. These 2 programmes represent 10% of the BRITE-EURAM programme 
budget and concern exclusively activities specific to SMEs. 
SME participation in Feasibility Premium and CRAFT, actions under the Brite-Euram 
programme is shown in Table 5. 
Although it has not yet been possible to evaluate CRAFT as the first CRAFT contract did 
not start until 1993, experience with a number of pilot projects completed in 1991 and 1992 
has proved very positive. 
3£ 
Table 5 
Table Summarizing SME Participation in Feasibility Premium 
and Craft Actions under the BRITE-EURAM Programme 
Actions 
Feasibility 
premiums GLOBAL 
BUDGET 
6 MECU 
(1991-93) Number of 
proposals 
Number of projects 
selected 
Funds committed in 
ECU Up to 
15.12.92 
270 
99 
2,890,717 From 
15.12.92 
to 
10.09.93 
270 
93 
2,740,392 TOTAL 
540 
192 
5,631,109 
Actions 
Craft 
Craft 
phase I 
Craft 
phase II GLOBAL 
BUDGET 
57 MECU 
1991-1993 
Number of 
proposals 
Number of projects 
selected 
Funds committed in 
ECU 
Number of 
proposals 
Number of projects 
rejected 
Funds committed in 
ECU Up to 
15.01.93 
156 
78 
1,074,852 
39 
31 
11,625,395 From 
15.01.93 
to 
31.05.93 
237 
117 
1,645,483 
37 
29 
12,017,087 TOTAL 
393 
195 
comprising 
706 PME 
2,720,335 
76* 
60 
23,642,482 
50 proposals + 5 resubmissions 
®>3 
Among the proposals adopted, the following three examples show that CRAFT aims to 
meet very specific needs of businesses by enabling them to solve everyday technical 
problems: development of a new aluminium cladding system to prevent corrosion (5 
partners from 4 different countries), use of microwaves in continuous ovens to manufacture 
food products (6 partners from 3 countries), development of a wire impregnated with 
synthetic diamond for stone-cutting (10 partners from 3 countries). 
The typical profile of an SME participating in CRAFT is a business from a traditional, 
low-technology sector, unlike the businesses which belong to the much less numerous 
category of what are known as "High Tech'' SMEs. 
The impact and advantages of these programmes for SMEs may be summarised as follows: 
they are an effective and viable means of developing and acquiring new technologies 
and know-how directly linked with their activities; 
SMEs are involved in a process of apprenticeship enabling them to discover the value 
and increasing importance of R & TD as a factor in maintaining or improving their 
competitiveness; 
they enable SMEs to gain a better understanding of their technological and competitive 
environment, and thus encourage their strategic approach; 
they facilitate the establishment of contact networks for future collaboration with a 
more direct impact on their business activities. 
H.2 PARTICIPATION BY SMEs IN RESEARCH ACTIVITIES ON 
INFORMATION AND TELECOMMUNICATION TECHNOLOGIES 
The Commission has a number of actions relating to pre-normative and pre-competitive 
research and technological development of enabling technologies in areas such as 
information and communication, industrial and materials technologies. The programmes for 
Information Technologies, Communications Technologies, and for the Development of 
Telematic Systems in areas of general interest are some examples. They are implemented 
by periodic open calls for proposals for trans-national cooperative projects. 
The involvement of SMEs in these projects has been increasing since the Commission 
started the ESPRIT programme in the early 80s. 
3^ 
Today, SMEs participate in 80% of the projects in the area of Communication 
Technologies, 65% in the area of Information Technologies and approximately 95% of 
projects in the Telematic Systems area. Most of the SMEs which are partners in the 
projects are from high-technology or technology-intensive sectors of industry. They are 
R&TD service providers or components or semi-finished goods manufacturers and are 
essentially involved in the development of R&TD applications. SMEs from the traditional 
industry sectors also participate as end-users, benefiting from the exploitation and 
adaptation of advanced technology. 
The pre-competitive research carried out under the above research programmes is helping 
to create and improve the specific enabling and generic technologies that are of the utmost 
importance in achieving a competitive advantage for EC industry, including SMEs. The 
pre-normative research contributes to the development of European and world-wide 
standards and is also of interest to SMEs, as it provides them with the means to extend 
their potential markets. 
The Information Communication Technologies (ICT) programmes have enabled SMEs to 
build links with other companies, universities and research centres and have encouraged the 
emergence of start-ups and the growth of innovatory SMEs. With their capacity to innovate 
and react quickly to market changes, SMEs have actively participated in the ICT 
programmes and helped to accelerate the development of new types of products and the 
exploitation of leading-edge technologies. 
Past experience has, however, highlighted the difficulties faced by SMEs and other 
organisations from the peripheral regions of the Community in participating in some 
research areas. To cope with this situation, pilot actions were started aiming at 
strengthening the ability of local organisations, particularly SMEs, to participate in the 
programme, and at reducing the risk of using the research results. 
These special actions are primarily devoted to help SMEs to understand and apply EC 
R&TD derived technology. They have provided support for the first-time use of technology 
(e.g. the use of electronics in production), workshops, training and publication in the Less 
Favoured Regions. 
3^ 
The main activities carried out in these regions are aiming at increasing awareness of 
technology and applications and facilitating the exchange of experts with other regions of 
the EC, transferring technology from research projects, demonstrating to industry, 
particularly SMEs, practical applications of the technology, and supporting research into 
advanced topics in preparation for future projects. 
As a direct result of the special actions in Spain, Portugal, Greece, Italy and Ireland a number of 
SMEs, the majority of which had no previous experience with advanced technology, have 
acquired or are in the process of gaining new skills. These actions have also contributed to a more 
efficient Information Technology infrastructure in the Community and increased the demand for 
innovation. 
Awareness and promotion activities were also carried out to make sure that SMEs obtain 
information on R & TD programmes and procedures for application, and to promote the 
cooperation between SMEs and other enterprises, universities and research centres. 
Complementary activities in other programmes are also related to the promotion of development 
and access to research and technology. Particularly worthy of mention are the activities carried 
out by the programme for Trade Electronic Data Interchange Systems, using communications 
networks (TEDIS). As EDI - Electronic Data Interchange - is playing an increasing role in 
making European firms more competitive and efficient, it has committed funding to a range of 
regional centres to promote awareness in the use of EDI, putting particular emphasis on raising 
awareness on SMEs throughout the Community and in those countries or regions which are 
lagging behind. 
Table 6 shows the percentage participation by SMEs in programmes concerning 
telecommunications and information technologies. 
H.3 PARTICIPATION BY SMEs IN PROGRAMMES TO EXPLOIT RESEARCH 
RESULTS 
VALUE programme: (1989-1993) ECU 38 million - exploitation of the results of Community 
research. 
VALUE programme II - centralised action 1992-1994 66 MECU. 
y]^>^> 
Table 6 
TABLE SUMMARIZING SME PARTICIPATION IN FRAMEWORK PROGRAMMES CONCERNING 
TELECOMMUNICATIONS AND INFORMATION TECHNOLOGIES 
0 Frame 
work 
I 
II 
III Programme 
ESPRIT 
AIM 
DELTA 
DRIVE 
ESPRIT 
EUROTRA 
RACE 
VALUE I (3) 
COMM, TECH 
INFO, TECH 
TELEMATIC 
VALUE IIW 
TOTAL Credit 
Committed 
750,000,000 
17,187,000 
17,442,000 
47,867,000 
1,500,348,062 
17,000,000 
468,401,000 
7,276,890 
356,025,000 
949,676,756 
255,865,000 
7,060,000 
4,394,148,708 Credits 
Allocated to 
SMEsO) 
407,810,632 
13,753,000 
16,438,000 
43,141,000 
1,238,234,559 
2,200,000 
254,073,000 
2,910,156 
295,083,000 
741,917,706 
234,994,000 
2,965,200 
3,253,520,253 SME/Global 
Budget (2) 
(%) 
54 % 
80% 
94% 
90% 
83% 
13 % 
54% 
40 % 
83 % 
78% 
92% 
42% 
74 % Projects* 
Total 
239 
43 
28 
63 
418 
88 
92 
109 
75 
379 
134 
52 
1720 SMEs 
139 
32 
26 
55 
300 
0 
51 
55 
59 
243 
126 
31 
1117 % 
58 
74 
93 
87 
72 
0 
55 
50 
79 
64 
94 
60 
65% Partners** 
Total 
551 
197 
160 
254 
1453 
35 
421 
197 
480 
1182 
1173 
113 
6216 SMEs 
159 
61 
70 
81 
545 
0 
95 
93 
128 
382 
385 
66 
2065 % 
29 
31 
44 
32 
38 
0 
23 
47 
28 
32 
33 
58 
33% Participations*** 
Total 
1264 
277 
203 
442 
3769 
134 
881 
205 
812 
2699 
1699 
131 
12516 SMEs 
226 
71 
88 
133 
844 
0 
129 
101 
173 
515 
520 
78 
2878 % 
18 
26 
43 
30 
22 
0 
16 
49 
21 
19 
31 
60 
23 % 
(1) Budget for projects with SME participation. NB: these figures are a guide, since subsidiaries of large undertakings, for example, are included 
among SMEs. The amounts indicated for Value I and Value II concern the projects introduced by SMEs. 
(2) % of the budget for projects with SME participation/Global budget. 
(3) Projects for exploitation of Research (1989-92). 
(4) Projects for exploitation of Research (1992-93). 
* Number of contracts. 
** Partners: there may be several SME partners in the same project. 
*** Participation: an SME may participate in several projects. 
The VALUE programme aims to promote the dissemination and efficient use of the results 
of research in science and technology in order to help improve the competitiveness of 
European industry, and particularly that of SMEs. The support provided for contractors 
participating in Community research, and particularly SMEs, involves financing market 
research and feasibility studies, and the preparation of business plans for SMEs seeking 
venture capital or other forms of finance. 
The centralized operations approved by the Council on 29 April 199223 for the diffusion 
and exploitation of the results from the Community R&TD activities (VALUE II) put in 
motion actions which directly or indirectly benefited SMEs. Amongst these the following 
are notable: 
grants to SMEs interested in exploiting the results from Community R&TD 
(exploratory awards or exchange of technology awards) to facilitate the use of the 
results in the SMEs environment and to exploit the results from Community R&TD 
programmes; 
direct assistance to promote the exploitation of Community R&TD results (exploitation 
projects); 
the setting up of a network of 27 relay centre within the Member States to improve the 
level of information, particularly for SMEs, on the activities of Community R&TD and 
on the results and resulting knowledge; 
the organisation within this network of thematic actions to promote the results 
(VACRO DAYS) among the Industry fabric of Community regions and in particular 
SMEs. 
The CORDIS information system, comprising several data bases, centralizes and updates 
key information on R & TD activities and their results. It gives SMEs access to the 
information through Euro Info Centres, for instance (which should thus have electronic 
access to application forms for every Community R & TD programme), or VALUE relay 
centres set up in 1992. 
23 Council decision 92/272/EEC of 29.04.92, JO L 141 of 23.05.92, p. 1 
4o2 
VALUE SME is a pilot action launched in 1991 which aims to promote the transfer of 
Community research results to SMEs and to exploit the research results obtained by SMEs 
under a Community programme. VALUE SME offers premiums for exploration (for the 
conclusion of an agreement) and the transfer of technologies. Some 300 SMEs have 
benefited from the activities of VALUE-SME. The budget for this pilot action is ECU 2.1 
million. In view of the encouraging results achieved in 91 and 92, the action was renewed 
in 93. 
The VALUE programme will organize a series of seminars to promote the results of 
Community research among SMEs which benefited from the EUROMANAGEMENT -
R & TD Audits pilot action. It will be recalled that the EUROMANAGEMENT - R & TD 
Audits action enabled 657 SMEs to benefit from the intervention of 47 technological 
advisers, who identified over 1,000 R & TD projects which, early in 1993, led to 120 
research proposals addressed to the Commission in response to invitations to submit 
proposals for the third framework programme; 30% of them were selected. This action 
should be repeated in 1994 for the 4th Framework Research and Development Programme. 
H.4 PARTICIPATION BY SMEs IN INNOVATION AND TECHNOLOGY 
TRANSFER 
,s 
SPRINT programme: (1989-1993) ECU 90 million. 
The Community SPRINT programme24 promoting innovation and technology transfer is 
one of the instruments set up by the Community to improve the ability of SMEs, including 
craft enterprises, to absorb technologies. 
Sprint has three main lines of action. 
- to strenthen the European innovation and technology support service infrastrucutre; 
- to facilitate the diffusion of new technologies and other resources to firms; 
24 Council decision 89/286/EEC of 17.04.89, OJ L 112 of 25.04.89, p. 12. 
O'O^ 
- to improve the awareness and understanding of innovtion and the exchange of 
experiences on national and community innovation policies. 
Since April 1989, a series of actions have been launched corresponding to each of these 
three lines of action. 
A. European Infrastructure of Innovation Support Services 
In order to strengthen the European Infrastructure of Innovation Support Services and 
further develop these Services throughout Europe, SPRINT has promoted the establishment 
of transnational networks of innovation support services, working in cooperation and 
disseminating the "best practice" in their fields. 
The programme currently supports 
- 50 networks involving in total more than 300 technology agencies, liaison services, 
regional development agencies, Chambers of Commerce and Science Parks spread 
throughout Europe; 
- the EUROTECH network, which has brought together twelve National Research and 
Development Organisations including ANVAR (F), British Technology Group (UK), 
CDTI (ES), CNR (IT), Fraunhofer Gesellschaft (D), TNO (NL), etc; 
- 50 networks of collective sectoral research centres - "centres techniques industriels" in 
France, "Forschungsgemeinschaften" in Germany - grouping in total 200 such 
associations, i.e. one third of all such centres in Europe, in either traditional industries 
such as construction, textiles and wood or concerned with trans-sectoral technologies 
such as laser and information technology. 
Moreover, to build upon the extensive experience developed within those networks, 
SPRINT has launched an integrated coordinated programme to identify and disseminate 
"Best Practice". This project will contribute to strengthening professionalism and 
management of the networks, establishing quality standards and enhancing transnational 
links between participants. 
In addition to the above networks the SPRINT programme was instrumental in launching 
the European Association for Contract Research Organisations (EACRO) which currently 
gathers more than fifty contract research organisations in Europe. 
4o V 
The aim objective of this mega network, similarly to the European Venture Capital 
Association (EVCA) and the European Association for the Transfer of Technologies, 
Industrial Information and Innovation (Til) which were launched during the pilot phase of 
the programme, is to become the forum of Europe for the organisations it represents and 
provide them with the services necessary for their development such as training and 
exchange of information. 
Finally, the programme, on an experimental basis, has been helping local and regional 
authorities to design and plan Science Parks and Innovation Centres better by providing 
them with European expertise and best practice in this area. Three calls for expression of 
interest were launched in this context. The first one resulted in the selection of more than 
100 experts in designing, planning and managing Science Parks, the second and third ones 
in the selection of 82 Science Park developments which could benefit from the experience 
of a small group - 3 to 5 - of experts referred to above. 
As an indirect result SPRINT has become the focal point for European expertise in this 
area. 
B. Intra-Community diffusion of technological resources 
In order to facilitate the Intra-Community diffusion ofs technological resources and 
competences to companies, the programme provides, on an experimental basis, support for 
specific industrial large-scale technology transfer projects which demonstrate the means of 
adapting and applying new available technologies in sectors or regions where they are not 
yet used. Projects which directly involve industrial firms, both large and small ones, are 
designed to act as catalysts for trans-regional or trans-sectoral technology transfer. 
Feasibility studies on forty of these specific projects are currently underway and it is 
expected that thirty projects t will proceed, with Community support, through to full 
implementation. 
Moreover, in order to develop awareness amongst SMEs as to the access and the use of 
new techniques for innovation and technology management, the programme has launched 
the MINT initiative. MINT (Managing the Integration of New Technology) has been 
developed as a Community-wide experimental diagnostic consultancy scheme, providing 
EC financial support to 1000 SMEs throughout the Member States, who will receive 
consultancy to facilitate their adoption of new technology. 
^I 
Several actions have been launched concerned with the dissemination of information and 
innovation management techniques. Examples of such actions are the support for 
transnational cooperation schemes between Research and Technology Organisations, -
referred to above as networks - to disseminate technical and economic information 
concerning new technologies and innovation management techniques as well as to promote 
the effective adoption by companies of Advanced Manufacturing Technologies, and quality 
management, control and assurance procedures. It is estimated that through these 
cooperation schemes more than 100,000 industrial SMEs, mostly in traditional 
industries, are reached annually. 
To support the better use of design as an innovation management tool, the programme has 
launched during its experimental phase the European Community Design Prize. Three 
awards have already taken place with a total of 1000 SME applications throughout the 
Community. The next ECPD will take place in 1994. 
In addition, the programme has continued to provide support for actions which aim at 
reducing the transaction costs for the transnational acquisition of technology and/or 
technical interfirm cooperation. Examples of such actions are the 70 networks of brokerage 
and liaison service whose task it is to facilitate transnational acquisition of technology by 
companies or establish technological cooperation between them. More than 300 interfirm 
agreements have been identified as a direct result of these networks. Another example is 
the Technology Transfer Days, which put selected companies in a particular region, 
seeking partners in other countries, in contact during one or two days with technology 
brokers from other regions. 16 Technology Transfer Days have already been held and 16 
more will be organised over the next two years enabling more than 1,300 firms to present 
their requests/opportunities for technological cooperation to technology brokers and liaison 
services all over Europe. 
Finally, two schemes concerned with the financing of innovation have been launched. The 
first one - called Transnational Investment Fora - brings together entrepreneurs of 
innovative growth companies looking for sources of funding with financiers, also from 
several Member States, looking for investment opportunities. 8 Investment Fora have 
already been held bringing together a total of 300 innovative high tech SMGEs. Over the 
next two years 10 such fora will be organised, bringing together in total 800 innovative 
companies with more than 1000 financiers, mostly venture capitalists, from all over the 
Community. 
/) oG 
The second, known as the "Plan for financing technology according to performance" 
(F.T.P.) aims to facilitate the acquisition of new technologies by enterprises, and 
particularly SMEs, by improving liquidity and strengthening the competitiveness of 
European suppliers of new technologies, which are often also SMEs. Thus, SPRINT 
supports a group of major banks and selected European financial institutions which act as 
intermediaries in promoting technology. SPRINT underwrites part of the finance at risk 
which these financial institutions provide for technologies under FTP projects - the value of 
each project ranges from ECU 50,000 to 200,000 - and takes charge of the commercial and 
technical arrangements. 
Table 7 gives a breakdown, by type of measure set up by the Commission, of the number 
of enterprises which have benefited directly from the SPRINT programme, by acquiring, 
testing or being informed of new technologies. 7,200 SMEs acquired new technologies, 
24,000 SMEs tested or evaluated new technologies and 64,000 were made aware of 
new technologies, particularly via transnational networks. Altogether, 95,200 SMEs 
benefited from the SPRINT programme. 
C. Effectiveness and coherence of public policies 
With regard to improving the effectiveness and coherence of public policies promoting 
innovation and technology transfer two types of activities have been financed. 
The first one, which partly already started during the pilot phase, concerns the exchange of 
knowledge and experience between the Member States and the Commission concerning 
innovation policies and innovation support measures. 
Topics which have received particular attention are: 
Patents and other Intellectual Property Rights; 
Science Parks; 
Regional Technology Advisory Centres; 
Innovation Management Techniques, particularly Design, Value Analysis and Quality. 
^o ^ 
Table 7 
Number of SMEs which have directly benefited from SPRINT 
L Adoption of new technology 
A. Transnational technological cooperation between SMEs through 
transnational networks for inter-SME coopération, and technology 
transfer days 
• 600 agreements established each involving two SMEs. Examples 
of such agreements are production or distribution licences, joint 
R&D and production agreements; 
• for each agreement to come through, an average 10 SMEs have 
evaluated or tested the technology; 
• for each agreement to come through an average 30 SMEs have 
been made aware of the new technology 
B. Diffusion of new technologies 
f through networks of Research and Technology (since 1986) : 
300 Research and Technology Organisations - with an average 750 
SME clients each, have participated in this action 
• 2 % of client SMEs have acquired new technology as a direct 
result of activities of these networks 
• 8 % of client SMEs have evaluated or tested new technology as 
a direct result of the activities of these networks 
• 20 % of client SMEs have been made aware of new technology 
4 Specific projects for intra Community innovation transfer (20 
such projects each involving 5 SMEs) : 
• SMEs involved in the specific projects 
• SMEs that will be made aware of new technology when 
diffusing the results of the specific projects 
II. Other benefits 
C. Facilitating the uptake of new technology through the MINT 
(Managing the Integration of New Technology) scheme 
• 1000 SMEs will receive consultancy to facilitate their adoption of 
new technology 
D. Investment Fora 
• 10 fora each one involving an average 40 innovative SMEs, from 
different countries looking for funds 
Total A - D Number of 
SMEs that 
acquired new 
technology or 
other 
resources 
(e.g. finance) 
1,200 
4,500 
100 
Number of 
firms directly 
involved 
1,000 
400 
7,200 Number of 
SMEs that 
tested/ 
evaluated 
new 
technology 
6,000 
18,000 
24,000 Number of 
SMEs that 
have been 
made aware 
of new 
technology 
18,000 
45,000 
1,000 
64,000 
4 off 
In order to organise a review of public measures and policies supporting innovation and 
technology transfer at regional, national or Community level, a series of Innovation Policy 
Fora has been launched in 1993. The themes for the first series are as follows: 
Support of High Technology Based New Firms (NTBNF) 
The Acquisition and Diffusion of Tacit Technological Knowledge 
The Clustering of Innovative SMEs 
Research and Technology Organisation, strategies for the future 
Quality promotion towards innovative SMEs. 
The second type of activity concerns the establishment of the European Innovation 
Monitoring System (E.I.M.S.), which aims to build up a European knowledge base and 
research capabilities on innovation and technology transfer. 
A call for tenders resulted in the selection of 53 organisations with expertise in research on 
innovation and technology transfer. They will help the Commission services in developing 
this system and by carrying out the survey projects. A second call is currently being 
evaluated. 
Several projects have been launched that can effectively support the decisions and actions 
of the following target groups: 
policy makers and public administrators from the Commission, Member States and 
regional bodies 
suppliers of innovation supporting services. 
Two main areas are currently concerned with SMEs: 
1. Innovation studies using existing data 
There is at present a number of data sources which can be used to explore comparative 
performance in science, technology and innovation. These include databases integrating 
R&D and industrial performance data; data sets drawn from decentralised innovation 
surveys; literature-based innovation surveys, and other sources. EIMS seeks to use these 
sources to provide a "state of the art" empirical overview of innovation and research 
activity, looking at the following issues.: 
s,o$ 
* R&D performance and industrial structures 
* Inter-industry flows of new technology 
* Inter-European comparisons of innovation activity 
* Industrial distribution of innovation outputs 
* Sources of innovative ideas 
* Obstacles to innovation 
* Inter-firm technological cooperation 
2. Surveys and new data sources 
EIMS cannot be implemented just by integrating and comparing existing data sets. It must 
sponsor the development and use of new and innovative sources of information on 
innovation in Europe. Innovation surveys will therefore play a central role in developing 
the EIMS. 
They will form a basis for monitoring the variety of innovation patterns, environments and 
practice across Europe. 
A series of national innovation surveys have been launched in cooperation with 
EUROSTAT and based on methodological work and tests, to cover: 
* the innovative capabilities and strategies of European firms; and 
* the application and diffusion of technologies and innovation management techniques. 
About 55000 SMEs will be concerned. 
At the end of 1992, SPRINT financial commitments totalled ECU 87 million, or almost the 
whole of the programme budget. The breakdown of the budget according to the 3 types of 
action described above conforms to the 1989 Council decision (EC/89/286), namely: 
infrastructure and services: ECU 50 million 
dissemination: ECU 30 million 
improving knowledge: ECU 10 million. 
An inter-departmental group meets regularly on an informal basis to exchange information 
on the financing of innovation in order to coordinate initiatives and action taken in this 
area. 
AAo 
The Commission submitted to the Council a proposal for a Decision to extend the SPRINT 
programme by one year in 1994 and to allocate it a budget of ECU 23 million25. 
II.5 OTHER COMMUNITY PROGRAMMES RELATING TO TECHNOLOGY 
AND RESEARCH 
THERMIE PROGRAMME 
In the sphere of energy, apart from the SAVE and ALTENER programmes, the THERMIE 
programme provides support for SMEs. 
The THERMIE programme, which aims to support the establishment and dissemination of 
efficient technologies, is particularly concerned with reductions in harmful emissions, 
industrial competitiveness, especially for SMEs,v and co-operation with non-member 
countries. 
Apart from supporting innovative projects, THERMIE implements accompanying measures 
through a network of 40 European bodies for the promotion of energy technologies: the 
OPET network. 
Through this network, SMEs are helped to set up their energy projects by receiving 
targeted, accurate information, participating in "marketing" discussion groups attended by 
professionals, industrialists and OPETs, and developing transnational partnerships for the 
presentation of innovative projects on a Community scale. A data base on energy 
technologies has also been set up for SMEs. 
Since SMEs make a significant contribution to technological innovation, the THERMIE 
programme's selection criteria for innovation projects in SMEs include co-operation and 
partnership, encouraging the Community character of projects. 
Statistical analysis of the THERMIE programme for the period from 1973 to 1991, 
including previous programmes demonstrating and supporting technologies relating to 
hydrocarbons, shows that, on average, 50% of bidders are SMEs. In addition, the share 
of SMEs in projects presented and adopted is 57% for users and 48% for energy 
technology manufacturers. 
25 COM (93) 306 final of 05.07.93. 
A s)A 
SME participation in THERMIE from 1990 to 1993 is described in table 8. From 1990 to 
1993, about 60% of the projects involve at least one SME and account for over 40% of 
the budget. 
The THERMIE programme and the OPET network have taken account of the special needs 
of SMEs by providing them with financial support, assistance with the administrative and 
financial arrangements for projects, complete and accurate information, a means of finding 
European partners and involvement in the future direction of energy technologies. Thus, in 
facilitating access for SMEs, the THERMIE programme helps to improve the 
competitiveness of SMEs and reinforce their administrative and financial comprehension of 
Community programmes. 
There is no doubt at all that the introduction of efficient energy technologies in SMEs will 
improve their production costs and help to maintain or create jobs. The analysis showed 
that some 17,000 jobs were either maintained or created as a result of the THERMIE 
programme over the period 1973-1991. 
ECSC RESEARCH ACTIVITIES 
Research programmes in the field of health and safety have also helped to promote inter-
firm co-operation and partnership between SMEs from different regions of the EEC. The 
following programmes are concerned: 
First joint research programme on safety in the ECSC industries, 1989-199426; 
5th and 6th research programme on "Industrial hygiene in mines" 1983-199127 and 
1991-1994; 
5th research programme on "Technical control of nuisances and pollution at the place 
of work and in the environment of iron and steel works" 1985-199328. 
26 OJC 325 of 29.12.89. 
27 OJ C 332 of 08.12.83 and OJ C 14 of 22.01.91, 
28 OJC 338 of 31.12.85. 
A*\L 
table 8 
NUMBER OF THERMIE PROJECTS INVOLVING SMEs 
AND SUPPORT GRANTED 
^ 
3 
^ RATIONAL 
USE 
OF ENERGY 
RENEWABLE 
ENERGY 
SOURCES 
SOLID 
FUELS 
OIL& 
GAS 
1990 -1993 Number of 
projects 
Support (MECU) 
Number of 
projects 
Support (MECU) 
Number of 
projects 
Support (MECU) 
Number of 
projects 
Support (MECU) 
Number of 
projects 
Support (MECU) 1990 
SME TOTAL in % 
23 39 59.0% 
9.1 18.7 48.7% 
21 27 77.8% 
4.8 6.6 73.1% 
1 3 33.3% 
8.7 9.6 90.9% 
8 16 50.0% 
5.2 10 51.8% 
53 85 62.4% 
27.8 44.9 . 62% 1991 
SME TOTAL in % 
34 65 52.3% 
13.1 34.8 37.5% 
32 51 62.7% 
20.5 35.7 57.4% 
1 6 16.7% 
0.1 22.1 0.6% 
11 30 36.7% 
4.7 22.9 20.7% 
78 152 51.3% 
38.5 115.5 33.3% 1992 
SME TOTAL in % 
29 52 55.8% 
13.9 31.6 43.9% 
43 67 64.2% 
18.6 35.1 53% 
0 4 0% 
0 33.2 0% 
16 31 51.6% 
8.3 27.7 29.9% 
88 154 57.1% 
40.8 127.6 32.0% 1993 
SME TOTAL in % 
30 42 71.4% 
30.1 43.3 69.4% 
40 52 76.9% 
24.1 35.2 68.3% 
1 10 10% 
0.5 33 1.4% 
21 35 60% 
14 26.4 52.9% 
92 139 66.2% 
68.6 138 49.7% 1990-1993 
SME TOTAL in % 
116 198 58.6% 
66.1 128.5 51.5% 
136 197 69% 
68 112.7 60.4% 
3 23 13% 
9.3 97.9 9.5% 
56 112 50% 
32.2 87 37% 
311 530 58.7% 
175.7 426.1 41.2% 
SME = projects involving at least one SME 
TOTAL = total number of projects supported 
Source: evaluation sheets and Commission's decisions on support granted 
Table 9 shows the breakdown by Member State of the amounts allocated to SMEs as a 
percentage of the total volume allocated to the programmes. From this it is evident that 
credits allocated to SMEs average 48%, with a maximum of 77% for the largest of the 
three ECSC research programmes. 
SMEs played an essential part in devising research projects aimed at improving health, 
safety, industrial hygiene and the environment at work and in their home area for workers 
in European coal and steel industries. 
Many of the results of these research projects carried out by SMEs have led to the 
preparation of directives aimed at improving health and safety at work. They have therefore 
been more closely connected with Community decisions. The Commission's financial 
participation was generally 60% of the total cost of the research. The consequences in 
terms of employment and the economic spin-offs are very obvious (industrial patents have 
very often been filed). However, owing to the future of the ECSC Treaty and the gradual 
reduction in ECSC levies, the amounts allocated to ECSC research are going to be reduced 
considerably or even abolished. SMEs will therefore have to opt for diversification of their 
industrial activity and adopt new lines of business. 
RESEARCH ACTIVITIES IN THE FIELD OF TRANSPORT 
The EURET programme (European Research in Transport), a research programme in the 
field of transport, was launched by the Council Decision of 21 December 199029. It has 
three objectives: to optimize the management of transport networks, to optimize logistics 
and to reduce external effects. Allocated a budget of ECU 26.8 million, the programme has 
enabled SMEs to participate by the creation of business consortia. Although large 
undertakings have received over half the available funds (51%), SMEs come second in 
receiving 19% of the budget (ECU 3.6 million), followed by research institutions (13%), 
universities (12%) and consultants (5%). 
29 Decision 90/11/EEC of 21.12.90, OJ L 8 of 11.01.91, p. 16. 
WH 
Table 9 
ECSC RESEARCH ACTIVITIES AND SMES 
^ 
^ ECSC 
Research 
Programmes 
Safety Programme 
(1989-94) 
Programme on 
"Technical control of 
nuisances and pollution 
at the place of work and 
in the environment of 
iron and steel works" 
(1983-1991)(1991-1994) 
Programme on 
"Industrial hygiene in 
mines" 
(1985-1993) 
Total Total Budget for 
the Programme 
in MECU 
21 
23 
11 
55 Amounts allocated to SMEs as % of the total budget for the programmes 
and by country 
FR 
3.4 % 
25.7 G 
4.6 % 
3.2 
15.9 
-SP 
5.6 % 
2.6 
6.5 GB 
1.8 % 
12.5 IT 
4.2 % 
23.9 
2.2 PT 
2.2% 
2 B 
19.9 
1.5 Total 
21.8 
77.3 
38.6 
48% Absolute 
figures in 
MECU 
4.578 
17.8 
4.2 
26.578 
n.6 COORDINATION BETWEEN COMMISSION DEPARTMENTS 
In conclusion, coordination between Commission departments has been particularly fruitful 
in connection with specific action aimed at SMEs both under R & TD programmes like 
CRAFT and via the feasibility premiums of the BRITE EURAM programme. Moreover, 
the Commission departments are invited to send representatives to the IRDAC - Industrial 
Research and Development Advisory Committee - whose opinions on SMEs as regards R & 
TD form the basis of the CRAFT programme. This also applied in the case of programmes 
to exploit research results, such as VALUE, and in the conduct of the 
EUROMANAGEMENT - R & TD pilot action. 
The VALUE programme also develops synergies with Community initiatives which help to 
finance technological SME projects such as EUROTECH CAPITAL, SPRINT 
INVESTMENT FORA, SPRINT TECHNOLOGY PERFORMANCE FINANCING, 
VENTURE CONSORT and the Launch Capital pilot plan. 
To improve the integration of the different approaches of the concerned Commission 
departments to venture capital for SMEs, a common brochure has been produced on 
"venture capital for the exploitation of Community research activities carried out by 
SMEs". 
An inter-departmental working party on R & TD and SMEs has just been set up to foster a 
global approach and consolidate these first attempts at coordination, intended to improve 
the response to the special needs of SMEs. 
The working party's objective is to give concrete form to the SME dimension of the 4th 
framework programme of R & TD by increasing the complementarity of measures 
implemented under different policies. Thus, in particular, it will aim to improve the 
transparency of Community R & TD actions among SMEs by joint promotion and the 
coordination of existing networks. 
y)/)& 
m. SMEs AND VOCATIONAL TRAINING 
In the field of vocational training (apart from important amounts (about 20 MMECU for 
the period 1989-1993) which were granted by the European Social Fund for the vocational 
integration of people encountering difficulties on the labour market) the Commission has 
implemented a number of programmes intended to improve the level of qualifications 
throughout the Community in order to face up to the process of economic, technological, 
social and cultural change (ERASMUS, COMETT, LINGUA, EUROTECNET, FORCE 
andPETRA). 
These programmes meet the following objectives: 
encourage transnationality, which permits an improvement in quality while respecting 
national systems; 
multiply transnational exchanges and increase the mobility of students and instructors; 
create suitable networks for facilitating exchanges, co-operation and the setting up of 
joint projects. 
Of these programmes, EUROTECNET (innovation in the field of vocational training 
resulting from technological change), COMETT (education and training in technology) and 
FORCE (continuing vocational training) are the ones of more direct concern to SMEs. 
Thus, after a brief account of their objectives, this report will deal with their impact on 
SMEs. 
Table 10 gives figures showing the participation of SMEs in these three programmes. 
HI.l THE EUROTECNET PROGRAMME 
The EUROTECNET programme30 aims to promote innovation in the field of vocational 
training resulting from technological change. It is designed to help Member States adapt 
vocational training to the change in technologies. In order to promote the exchange of 
information and the transfer of experience and expertise, a Community network of 
demonstration and co-operation projects was set up. 
30 Council decision 89/657/EEC, OJEC No. L 393 of 30.12.89, p. 30. 
>71^ 
^B^B^^H 
SUMMARY TABLE OF ACTIONS IN FAVOUR OF SMES 
UNDER EUROTECNET, COMETT AND FORCE PROGRAMMES 
PROGRAMMES 1991-1992 
EUROTECNET (1990-1994) 
. Budget (MECU) 
Total number of projects in the network 
Total number of projects targeted at SMEs 
% of projects targeted at SMEs 7.5 MECU 
277 
46 
18% 
COMETT (1990-1994) 
. Budget (excl. EFTA) (MECU) (90-92:121) 
(93-94:79) 
Number of beneficiary SMEs* 
(directly or indirectly) 
Number of SMEs directly involved** 
Number of SMEs with < 50 employees 
Number of SMEs with 50 to 200 employees 
Estimated SME participation rate 
FORCE (1991-1994) 
. Budget 91-93 
Total number of projects 
(invitation to submit proposals 91 et 92) 
Number of SME contractors or 
project coordinators 
including groups of SMEs 
SME beneficiaries 
- directly 
- through groups of enterprises 
- through professional or sectoral 
federations, etc. 
Number of enterprises involved, 
including groups of SMEs 
(contractors, coordinators, partners) 
Number of SMEs directly involved 
including groups of SMEs (contractors, 
coordinators, partners) 
Rate of direct participation by SMEs -
groups of SMEs / all enterprises. 200 MECU 
30,000 
7,000 
3,300 
2,300 
> 75% 
32.8 MECU 
427 
140 
Several thousand, as SME groups may have 
many members, sometimes several hundred. 
2.000 
1,250 
62 % 
1 
* Estimate. 
* * SME involvement includes the completion of training courses. 
siO? 
It has allowed research to focus on in-service training, particularly in the field of 
apprenticeships. The aim is to improve the skills and capability of employees in SMEs, in 
particular, and to manage technological change and create the necessary conditions for an 
enterprise to become a place of learning. The EUROTECNET programme, launched in 
1990 for 5 years, considerably expands the opportunities for vocational training systems to 
profit from innovation throughout the Community. It gives preference to qualifications 
which take account of the profound changes and which have a strong technological 
element. Both training methods and the instruments necessary to enable SMEs to provide 
continuing training for their staff are constantly being adapted to take account of 
technological changes. 
The Council decision stipulates that SMEs must participate in the implementation of the 
programme and in the dissemination of the results achieved. Thus, EUROTECNET has 
placed the emphasis on projects which have a direct or indirect impact on the introduction 
of innovative solutions concerning human resources in SMEs. Following the selection 
procedures in the 12 Member States, 277 demonstration projects were selected to form the 
network of EUROTECNET projects, of which 46 (or about 18%) concern basic or 
continuing vocational training in or for SMEs. 
These projects may be divided into four groups: 
s 
1. projects which aim mainly to develop new approaches and methods in order to analyse 
SMEs' skill and training requirements; 
2. projects which aim to improve the level of qualifications of SME employees. These 
projects are more particularly concerned with identifying "key skills" which enable 
workers to meet their needs as regards both technical qualifications and personal 
development; 
3. projects which aim to reorganise/transform training centres into business services 
centres in order to meet the specific needs of SMEs; 
4. projects which aim to promote technology transfer within SMEs (e.g.: CIM -
Computer Integrated Manufacturing, CAD - Computer Aided Design, LAN - Local 
Area Networks) and develop new learning strategies and methods in enterprises. 
S)q<j 
As an example from each category of projects one might mention: 
- the Italian project of AFM-Edilizia in the building and civil engineering sector, which 
aims to develop and establish SMEs by a system of advanced services (new 
technologies), to stimulate demand by introducing new professional profiles and to 
promote new organisational strategies in building such as integrating large/medium-
sized undertakings with SMEs; 
- the Belgian "ARIA" project, which aims to train business managers in the need to 
maintain and develop the intellectual assets of SME employees and to inform them of 
technological developments. Thus, continuing training is regarded as an investment in 
the human capital of the business; 
- the British project by Newcastle College, which aims to develop innovation in training 
for new qualifications in electronics in order to meet the skill requirements of emerprises 
(CAM/CAD, micro-computers, robots), the objective being to provide industry with 
engineers and technicians capable of adapting to particular needs; 
- another British project being carried out by the University of Aberdeen in the field of 
aquaculture aims to give training in bio-technologies for the staff of recently established 
European aquaculture farms, by using multimedia training techniques and remote 
training in situ. This project concerns continuing in-service training in peripheral areas 
using rural telecommunications networks. 
The subject of SMEs and vocational training has been covered by various EUROTECNET 
seminars, such as those on SMEs and CIM, the development of human resources or new 
training concepts, and were attended by many SMEs. The conclusions of these seminars 
have been published and circulated. 
Mention should also be made of the EUROTECNET publications designed to help SMEs in 
their effort to adjust and reorganize in the face of new approaches to the development of 
human resources and new training strategies such as: the practical manual for SMEs: "12 
steps towards the qualification of employees: mastering new technologies through 
continuing training", "The Learning Organization", which includes guidelines for the 
reorganisation of SMEs, "EPOQUAL", which contains a sample of case studies on new 
professional profiles, and "The importance of robotics (CIM) for continuing training in 
small and medium-sized enterprises". 
n do 
III.2 THE COMETT PROGRAMME 
The COMETT programme (1990-1994)31 is a programme for intra-Community cooperation 
between universities and industry regarding initial and continuing training in the field of, in 
particular, advanced technology. One of its general objectives is to respond to the specific 
skill requirements of SMEs. 
The measures implemented are arranged in the following 4 sections: 
Section A: development and reinforcement of the European network of UETPs: 
university-enterprise associations for training to promote greater transnational 
cooperation; 
Section B: transnational exchanges by the granting of bursaries to students or persons 
who have completed their initial training or to the staff of universities and 
enterprises; 
Section C: joint projects for continuing training in technologies, particularly advanced 
technologies, and remote multi-media training; 
Section D: complementary promotion and accompanying measures. 
A detailed analysis of SME participation in the COMETT programme was made in 1992 
from a sample of 200 SMEs which had participated in 129 projects selected via the 
invitation to submit proposals launched in 1990. This study and information obtained from 
the COMETT data base show that approximately 75% of undertakings involved in 
COMETT are SMEs (fewer than 500 employees), namely around 7,000 SMEs. Of 
these 7,000 SMEs which participated directly, 3,300 (or almost half) employ fewer than 50 
people and 2,300 (or a third) have between 50 and 200 employees. 
80% of COMETT projects include at least one SME, and this figure has been increasing 
steadily since COMETT I. Each UETP network (University Enterprise Association for 
Training, section A) includes an average of 10 SMEs. Every joint project on continuing 
training in advanced technology and multi-media (section C) includes an average of 4 
SMEs. 
31 Council decision 89/27/EEC, OJ No. L 13 of 17.01.89, p. 28. 
A Zs\ 
Of the SMEs which participate in COMETT, 40% take part in the UETPs (section A), 
33% in transnational exchfinges (section B) and about 25% in joint continuing training 
projects (section C). A growing number of SMEs are active in two sections, A and B or A 
andC. 
It is estimated that 30,000 SMEs will benefit directly or indirectly from COMETT II, 
particularly through the training courses. 
From the analysis it was also possible to discern a typology for SMEs in COMETT. The 
SME participation rate by country shows no significant differences. On the other hand, 
60% of SMEs which are partners in the same project operate in the same country and 20% 
in neighbouring countries. Thus, COMETT is an important entry point for SMEs wishing 
to become European. 
As regards activity sectors, one third of the SMEs involved are service undertakings, 
particularly consultancy, software design and training undertakings. Thus, it is the services 
sector where the smallest undertakings are found, whereas those in the industrial sector 
tend to be of medium size (between 50 and 500 employees). Also, consultants form the 
most active SME sector in COMETT and, conversely, the traditional industrial sector has 
the lowest participation rate. 
HI.3 THE FORCE PROGRAMME 
The FORCE programme32, for continuing vocational training in Europe, aims to persuade 
undertakings, particularly SMEs, of the need to invest in continuing vocational training and 
to encourage them to provide such training for workers. For this purpose, the transnational 
measures under the FORCE programme support the coordination of innovation, the 
conducting of European sectoral surveys on continuing vocational training plans, the 
exchange of comparable data on continuing vocational training, analysis of contractual 
policy on continuing vocational training and forecasts of trends in skills and occupations. 
During 1991 and 1992, 427 projects were selected (164 in 1991 and 263 in 1992). 1,250 
SMEs or groups of SMEs are taking part as partners in over two thirds of the 
projects, either directly or indirectly via associations, chambers of trade or inter-firm 
training bodies. 
32 Council decision 90/267/EEC, OJ No. L 156 of 21.06.90, p. 1 
All. 
(8 
The projects are sectoral or inter-sectoral in character and are aimed at different categories 
of workers. They support SMEs in their continuing in-service vocational training activities 
by means of studies and training materials. 
Generally speaking, SME projects fall into five groups: 
1. continuing training projects involving a high degree of direct participation by SMEs (at 
least three SMEs as contractor, coordinator or partner); 
2. continuing training projects with the participation of chambers of trade and associations 
(indirect participation by SMEs); 
3. continuing training projects for large undertakings/SMEs; 
4. SME continuing training projects involving majority participation by training bodies 
and both sides of industry; 
5. continuing training projects for undertakings in general, including SMEs. 
1. Continuing training projects involving a high degree of direct participation by 
SMEs 
These projects involve at least 3 SMEs and sometimes as many as 10 SMEs. Large 
undertakings and/or chambers of trade and associations are not represented, except on a 
minority basis. In most cases they are located in frontier regions, particularly between 
Germany and the Netherlands, and are coordinated by economic bodies. These projects 
involve several countries. An SME may be both the contractor and the coordinator of a 
project. The majority of projects in this group involve 3 or 5 SMEs. Inter-firm training 
bodies are also represented in practically all the partnerships. 
Irrespective of their specific objectives, these projects share a precise classification of SME 
skill requirements, which is clearly reflected in the results aimed at. The continuing 
training programmes and teaching concepts intended for different target groups (pilot 
projects) need to be supplemented by devising guidance structures and support for planning 
the skills required by industry (skill projects). The results will have to be circulated by 
means of modern training and learning methods. 
A^2> 
For example, the project coordinated by BBS (Berufsbildungsstûtte), geared to SME 
training needs, aims to harmonise the skills required by employees of the Dutch and 
German partners in the field of synthetics. The cross-border partnership should reduce the 
differences in the level of development between developed regions such as Munster and less 
developed regions such as the five new Lander. 
The training modules are intended for training in the training centres and subsequently in 
undertakings. They will comprise multimedia tools for learning in training centres, guides 
for in-service training, information seminars for SMEs and an advice structure intended to 
help implement training strategies. This project involves continuing training centres, 
professional associations, a business association, a university, SMEs and large 
undertakings in Germany and the Netherlands. 
Other projects concern, for example, strategic information management in the SME 
clothing sector (F, UK, GR) or in the sail-making sector, consisting mainly of micro-
businesses which wish to develop certified training and create an accredited network of 
suppliers and maintenance services in European industry (UK, GR, P, I, IRL). 
2. Continuing training projects with the participation of chambers of trade and 
associations 
In this group of projects it is not the direct participation of SMEs that is decisive but the 
grouping of undertakings, and particularly SMEs, in chambers of trade, be they private or 
public, at national level, and professional associations. Britain's "Training and Enterprise 
Councils" (TECs) play a particularly active part. 
This category comprises two types of project. First, partnerships between at least five 
national professional associations which, by a resolutely European approach, aim to 
respond to future skill requirements of participating undertakings, for example in the 
clothing and footwear industry, and the food and goods transport sectors. Then, there are 
the projects in which a decisive part is played by chambers of commerce and industry and 
chambers of trade, which mainly represent SMEs. Although these projects generally adopt 
a specific, sectoral approach, e.g. in order to prepare continuing training concepts and 
training materials for technico-industrial workers in different sectors, they often have an 
inter-sectoral aspect to assist SME managers in their own continuing training activities or in 
planning and applying measures to improve skills at work. 
/izy 
To illustrate, the project coordinated by the Confederation of National Associations of 
Tanners and Tawers of the European Community (COTANCE) which has Greek, Italian, 
French, Dutch and Danish partners, aims to devise a new teaching instrument suited to 
remote instruction, in order to provide continuing vocational training for Community 
tanneries. 
Other projects concern continuing training for craft entrepreneurs in Europe or training in 
total quality management and statistical control methods in the aluminium industry. 
3. Continuing training projects for large undertakings/SMEs 
In this category, it is the large undertakings which are directly involved in projects in 
transferring their know-how and knowledge to SMEs. Thus, the experience of large 
undertakings is made available to SMEs. It is not a question of transferring the continuing 
training and organisational structures of large undertakings to SMEs, since the latter do not 
generally have a continuing training department, still fewer a human resources development 
department, but have adapted proven continuing training materials to the specific conditions 
of SMEs making use of modern teaching methods. Thus, the target groups for these 
projects are generally SME teachers and instructors. Training bodies also play a key role in 
partnerships as coordinators, in particular in harmonising training materials with the needs 
of SMEs and providing the basic initiation. 
For example, the coordinated project "Values and Performance", an ASFO training 
network in France in partnership with training associations, undertakings, universities and 
major banks in France, Belgium, Spain, Italy and the UK, plans to set up a transnational 
consortium to devise assistance for SMEs. This consortium will compare analyses and 
evaluation methods in large undertakings and select the elements most applicable to SMEs; 
it will then produce an "SME training advice assistance package ". 
4. SME continuing training projects involving majority participation by training 
bodies and both sides of industry 
Undertakings are not directly involved in this category, and the projects always concern 
continuing training programmes and concepts as well as guidance structures and planning 
aid for SMEs. 
/) z r 
Apart from inter-firm training bodies, universities and University-Enterprise Associations 
from the COMETT programme are increasingly taking part in these projects*. Undertakings 
then become involved at the level of trying out the results of the projects. Partnerships are 
concluded between training bodies and employers' associations or unions. 
For example, the project being carried out by the Portuguese Industrial Association 
(A.I.P.) in collaboration with France, comprising associations of undertakings, sectoral 
training centres and UETPs, aims to develop transferable methods for training SME 
managers in strategic management and the management of human resources. 
Another project being carried out by the Bedrijfsschool Machinefabriek in Breda in the 
Netherlands consists in developing a "flexible production system - just in time * training 
module in order to avoid the huge loss of production when a flexible production machining 
lathe is run in. This module is applicable to SMEs and allows women to be integrated into 
the production process. _ 
5. Continuing training projects for undertakings in general, including SMEs 
Continuing training products in this category do not apply specifically to SMEs but to all 
undertakings. The projects aim to develop guidance structures or planning aids (skill 
projects), continuing training programmes or the content of training courses (pilot projects) 
in a particular industrial sector such as metallurgy or pharmaceuticals. However, some 
projects take an intersectoral approach and deal with more general topics such as the 
organisation of in-service continuing training, e.g. for female workers in the service sector. 
m.4 CEDEFOP 
In the vocational training field, mention should be made of the work of the European 
Centre for the Development of Vocational Training (CEDEFOP), which complements that 
of the Commission. CEDEFOP has given priority to the need to begin research and 
programmes aimed at: 
1. developing and improving the training of SME executives and managers, especially in 
small enterprises, for which the target groups are "SME training officers and training 
organisers"; 
/) £Q> 
2. identifying the most effective training measures for promoting the creation and 
development of small enterprises, for which the target group is "creators of 
enterprises"; 
3. promoting exchanges of experience and cooperation; 
4. identifying good examples of programmes and strategies used to improve the 
competitiveness of SMEs, for which the target group comprises "SME support 
institutions". 
In order to meet the specific needs of the above-mentioned target groups, the following 
work has been done: 
1. SME training officers and training organisers. 
Five skill guides have been produced for the introduction of training measures in SMEs. 
These guides aim to improve the skills of the training officer and the training organiser in 
order to support the creation and development of SMEs. These guides relate to four crucial 
aspects of corporate life: development of entrepreneurial spirit, support for creation, 
support for the survival and development of small enterprises and preparing SMEs for the 
single market. 
These guides have been used successfully in 7 countries. However, evaluation has shown 
that model training courses suitable for SMEs should have been developed from these 
guides. Thus, CEDEFOP has supported the preparation of teaching materials in the form of 
"Manuals for training in SMEs", which will be available at the end of 1993. 
2. Enterprise creators 
On the basis of national studies carried out in the twelve Member States on the training of 
managers of small businesses, CEDEFOP has published a synopsis which summarizes these 
national studies in the form of information sheets by country. These information sheets 
relate to the demography of enterprises, the profile of creators, policies supporting the 
creation of enterprises and training for creation. In addition, this publication offers a series 
of recommendations on improving the conditions for creating and developing new 
enterprises in the Community. 
-nz q. 
3. Exchanges of experience and cooperation 
In 1991 a transnational management training project for craft enterprises was launched in 
the Saar-Lor-Lux transboundary region. This project aimed to identify common 
denominators between national models in the wider region. This enabled the chambers of 
commerce of the Saar-Lor-Lux Inter-regional Council of Chambers of Commerce to 
prepare a joint training programme model for craftsmen wishing to create an enterprise. 
This project also led the Economic and Social Committee to propose to the Commission, in 
its opinion on SMEs and craft enterprises33, that CEDEFOP, in collaboration with the 
Commission, should concentrate more on training heads of enterprises and that the 
cooperation project should be extended to European craft industries. 
4. Institutions supporting SMEs 
In order to identify examples of good practice in training in SMEs, CEDEFOP has carried 
out a study which has two objectives: 
to list the external and internal problems preventing small businessmen from receiving 
training; 
to identify good support strategies and programmes developed in the 12 Member States 
in order to overcome these obstacles. 
The conclusions of the study show that there are no major differences in the problems 
encountered by enterprises. As regards demand, there is a lack of infrastructures offering 
effective training, and at the same time entrepreneurs reject traditional training. As regards 
the training available, in most cases the methods are unsuited to the needs of entrepreneurs, 
there is no made-to-measure training and instructors lack competence as regards the 
problems of small businessmen. On the other hand, the strategies developed show the 
greatest diversity both in the development of infrastructures and services and in marketing 
strategies for training, strategies to imprpve the quality of training offered, in particular by 
"made-to-measure" training, the introduction of new technologies or more flexible methods 
more appropriate to the businessman, and finally strategies for the creation and support of 
networks for cooperation between enterprises and training bodies. 
33 OJC 332 of 16.12.92, p. 35. 
^J7 
The actions developed by CEDEFOP have had a lever effect on the launch of initiatives 
aimed at supporting training in SMEs. For example, the new German Lander have set up a 
support network for the creation of enterprises and an enterprise creation observation post 
has been set up in Portugal. Seminars have also been organised to disseminate the results of 
the work. 
The work of CEDEFOP described above has been carried out under the working 
instruction entitled "development of vocational training in SMEs and cooperatives". 
Although the budget is limited, namely ECU 175,000 in 1991 and ECU 127,000 in 1992, 
the action carried out has had an obvious impact on SMEs. 
III.5 LOCAL DEVELOPMENT AND EMPLOYMENT 
In connection with Community action to develop local employment, mention should be 
made of the LEI, LEDA and SPEC programmes and the EGLEI and TURN networks, 
which very often concern SMEs to a great extent, particularly by their demonstration 
effect. 
LEI and SPEC provide financial support, while LEDA consists more in supporting a 
network of experiments and research projects. 
The Local Employment Initiative programme (LEI)34 for women, set up in 1984, aims to 
provide direct support for women starting a business, co-operative or other local 
employment initiatives. In 1987, under the second Community action programme on Equal 
Opportunities, a European network of experts was set up to support women wishing to start 
a business. From 1986 to 1990, almost 700 women's businesses received Community 
support. LEI is also a key action under the 3rd Community action programme on Equal 
Opportunities (1991-1995) for men and women. Its budget is very limited (ECU 1.5 
million per annum) and although the premiums are small (ECU 1500 per full-time job) they 
act as a lever in encouraging other financial partners to contribute to the projects. The LEI 
network offers technical assistance and sets up partnerships for the formation of networks, 
inter-firm co-operation and synergy with other Community programmes. 
34 Council recommendation of 13.12.84 on the promotion of positive action for women, OJ L 331 
of 19.12.81, p. 34. Council resolution of 21.05.91 on the third medium-term Community action 
programme on equal opportunities for men and women (91-95). OJ C 142 of 31.15.91, p. 1. 
^5 
Publications include the "Guide to better Business", which helps women lo launch and run 
their business, or the export guide. 
The special job creation aid programme (SPEC), set up in 1990 for 3 years in response to a 
European Parliament initiative, provides financial and technical aid for action intended to 
promote employment by means of diagnosis and forecasts concerning the repercussions of 
the completion of the internal market. Thus, among other things it backs up programmes 
supporting SMEs and the transfer of know-how to other Community countries. 
The Local Employment Development Action programme (LEDA) launched in 1986 aims to 
improve know-how in the field of local development and to help local bodies to combat 
unemployment, create new jobs and exploit local potential. Having identified positive 
experiments, the programme prepared methods and techniques, with the help of local 
experts and researchers, for designing effective local development strategies which were 
then circulated throughout the Community. For this purpose, the programme set up a 
network of 33 pilot zones in the 12 Member States plus "associate zones" (particularly in 
central and eastern European countries), which serve as a basis for the exchange of 
experiences organised in the form of seminars and study visits. In 1991 a management 
training programme was also set up and a local development manual was published. With a 
budget of ECU 2 million per annum, the LEDA programme does not finance initiatives 
directly, but gives support to actions such as the development of local projects for 
employment creation, training programmes, and seminars with experts. 
In July 1993 the LEDA Programme entered its third phase which is expected to last three 
years. The priorities for LEDA 3 are: 
1. to strengthen the network through the inclusion of a number of new areas; 
2. to further enable practitioners to identify, distil and develop good practice through the 
mechanism of "LEDA circuits" (mini-networks), with practitioners from the LEDA 
areas taking the lead; 
3. to extend its dissemination activities throughout the community and beyond, in EFTA 
countries and Central and Eastern European regions where LEDA is establishing 
networks of associated areas; 
4. to facilitate the practical application of LEDA know-how: 
adapting its local development instruments, such as the Management Development 
Programme and Practical Manual to the special needs of different types of areas 
and; 
encouraging and supporting the adoption of good practice in Community, national 
and local programmes. 
y\ jo 
(9) 
In 1986 the Commission also set up the programme of exchange visits for local 
development officers, directed by the European Group on Local Employment Initiatives 
(EGLEI), in order to train officers by exchanges and the comparison of practical ideas and 
to develop transnational cooperation, and also the trades unions' regional network of 
employment initiatives (TURN) at the level of regional and local trades unions. 
All these initiatives in the field of local development permit experimentation and the 
pooling of innovative practices which can then be transferred and thus act as a catalyst, 
especially in SMEs. 
IV. OTHER COMMUNITY PROGRAMMES 
IV.l. INTERNATIONAL COOPERATION 
Cooperation between enterprises is one of the priority lines of action of the enterprise 
policy. This chapter presents the cooperation programmes which have been set up to 
stimulate and sustain cooperation between Community enterprises and enterprises in non-
Community countries, namely: the countries of the European Free Trade Association, 
central and eastern European countries, the countries of the CIS and Georgia, and the 
countries of Asia, Latin America and the Mediterranean. 
1. COOPERATION WITH EFTA COUNTRIES 
Although the involvement of the EFTA countries has no impact on the European 
Community budget, these countries take part at their own expense in the BC-NET networks 
and Euro-Info-Centre (as a correspondence centre) and in the EUROPARTENARIAT 
programme. For example, the Austrian Chamber of Commerce has stated that, through the 
BC-NET network, 29 contracts hâve been signed between Austrian and Community firms 
covering sectors such as textiles, furniture or services and consisting in the establishment of 
subsidiaries, the development of commercial activities, representation or subcontracting. 
131 
2. COOPERATION WITH CENTRAL AND EASTERN EUROPEAN COUNTRIES: 
CEECs 
Under the PHARE programme the Commission has set up SME development programmes 
by providing assistance for the following countries: Poland, Hungary, Czech Republic, 
Slovakia, Bulgaria, Albania, Slovenia, Romania, Lithuania, Latvia and Estonia. In this 
connection, the amounts allocated to SMEs are ECU 31 million for Poland, ECU 20 
million for the former Czechoslovakia, ECU 25 million for Hungary, ECU 2.5 million 
for Bulgaria, ECU 2.1 million for Albania, ECU 700,000 for Slovenia, ECU 10 million 
for Romania, ECU 2 million for Lithuania, ECU 1 million for Latvia and another 
ECU 1 million for Estonia. The support is concentrated on 3 types of measure: SME 
assistance services (advice, information and training), financial instruments (banking 
services) and guidance on the formulation of an enterprise policy. These programmes are 
run in a decentralised manner by a management unit in each country comprising local and 
external experts. 
The departments responsible for the enterprise policy are closely associated with the 
implementation of measures for SMEs under the PHARE programme. This coordination 
takes place at several levels, in particular by technical assistance for the development of 
SMEs in these countries, help with defining, monitoring and evaluating calls for tenders 
and the joint organisation of seminars. They also contribute towards the gradual integration 
of new partners from the CEECs into the SME information and cooperation networks, 
namely the EICs and BC-NET, the organisation of a EUROPARTENARIAT in Poland in 
1994 and, finally, the development of inter-firm cooperation and partnership under the 
JOPP programme. 
The JOPP programme (Joint Venture PHARE Programme)35 is a specific programme under 
the PHARE programme which aims to develop support measures for the creation of joint 
ventures in the CEECs by Community SMEs and partners from those countries. 
This programme comprises 4 types of measure: 
finance for feasibility studies carried out by Community SMEs before the creation of a 
joint venture in the CEECs; 
35 Commission decision of 30 January 1991 No. Z91/01 
ise 
participation in the capital of the joint venture in parallel with financial intermediaries; 
finance for the cost of training the staff of the joint venture; 
general measures to reduce the cost of access to information needed for the creation of 
a joint venture. 
JOPP had a first budget of ECU 20 million for the period 1991-1993, of which ECU 17 
million directly benefits SMEs. At the end of 1991, ECU 1 million had been committed 
for the benefited of SMEs and on 31 December 1992 a further ECU 10.4 million was 
added, total budget was committed in September 1993. An additional budget of 27.5 
MECU was immediately allocated to the JOPP Programme to face the increasing demand 
coming from the SMEs 
The measures implemented essentially enabled Community SMEs to carry out feasibility 
studies for their joint venture projects, thus reducing the administrative, financial and legal 
constraints impeding the development of joint ventures. Following feasibility studies, a 
number of SMEs have already actually set up the joint ventures envisaged with the aid of 
JOPP programme credits. 
Although the JOPP finance benefits all CEECs, Poland and Hungary are the main 
beneficiaries. This finance covers all productive sectors of the economy, and it is the 
industrial production and services sectors which are the primary beneficiaries, followed by 
consumer goods and agri-foods. Community SMEs in fact benefited the most from this 
programme (93.3% of the dossiers accepted). It is now planned that the participation to the 
Joint Venture Capital, besides that of financial intermediaries, will be exclusively given to 
requests from Community SMEs. By encouraging the creation or expansion of Joint 
Ventures in the CEECs, this programme is meant to foster investments of Community 
SMEs abroad. Estimated investment totalled ECU 400 million for a Community budget 
commitment of ECU 17 million, or a lever effect from 1 up to 24. 
^ 53 
3. COOPERATION WITH THE CIS AND GEORGIA 
j 
The Commission has set up a programme to support the process of economic reform and 
development in the Commonwealth of Independent States (CIS) and Georgia, aimed at 
establishing a market economy: the TACIS programme (Technical Assistance to the 
Commonwealth of Independent States (CIS) and Georgia)36. With a budget of ECU 20 
million for 1992, this programme provides for a technical assistance programme targeted 
on SMEs which consists in developing the necessary competence and local know-how by 
the creation of partnerships between enterprises and networks both within and outside the 
countries receiving Community support. Thus, 7 development agencies and 9 "Business 
Communication Centres - BCCs" will be set up and then connected to the BRE and BC-
NET networks. 
4. COOPERATION WITH DEVELOPING COUNTRIES IN ASIA, LATIN 
AMERICA AND THE MEDITERRANEAN 
Specific programmes to foster the development of SMEs have been set up in a number of 
developing countries. They include the MED-INVEST programme for Mediterranean Third 
Countries, the LA-INVEST programme for Latin American countries and the ECIP 
programme. 
MED-INVEST is a programme which supports cooperation for the development of SMEs 
in Mediterranean Third Countries in association with European SMEs and professional 
bodies. It aims to promote in Mediterranean Third Countries an environment which favours 
the development of SMEs and an increase in their ability to compete. With a budget of 
ECU 12.2 million for 2 years (1993-1995), Med-Invest grants non-repayable aid to groups 
of enterprises, institutions, bodies or development associations with genuine capability in 
the field of information, inter-firm cooperation and support Tor economic development. 
The Business Cooperation Network (BC-NET) is associated with this programme to 
reinforce and extend the network in the 11 Mediterranean countries and to provide training 
for members and the necessary accompanying measures for economic operators. The 
Commission departments responsible for the enterprise policy provide technical assistance 
for the creation of partnerships. 
36 Council Regulation No. 2127/91/EEC of 15.07.91, OJ L 201 of 24.07.91, p. 2. 
LA-INVEST, an industrial cooperation and investment promotion programme in Latin 
American countries37, with a budget of ECU 18.5 million for 2 years (1993-1995), aims to 
facilitate trade, transfers of technology and know-how, and finance for the mutual benefit 
of both Latin American and European businesses. The ERB is also associated with this 
programme. 
European Communities-Investment Partners (ECIP) is a financial instrument for developing 
countries in Latin America, Asia and the Mediterranean, set up in 1988; its legal basis 
dates from 199238 when it was extended for a further 3-year trial period and allocated more 
funds on account of its success (ECU 39.15 million for 1993). 
ECIP's main objective is to facilitate the creation of joint ventures in eligible countries in 
order to contribute towards their economic development. Thus, it intervenes in the different 
phases of setting up an enterprise: from identification of potential partners and projects 
through intermediaries to training and technical assistance, and including a feasibility study 
for the project and a contribution to the capital of the joint venture. The maximum which 
may be granted is ECU 1 million for a joint venture. ECIP excludes multinationals and 
requires the joint venture to include at least one Community partner and one partner from 
the country concerned. SMEs have been given priority. ECIP support is provided via a 
network of 73 financial intermediaries. 
In 1992, 186 projects were approved, worth ECU 20.27 million, against 171 projects 
during the period from 1988 to January 1991. The promising results show that this 
instrument plays a role in Asia, Latin America and the Mediterranean in encouraging local 
economic operators to consider the European Union as a partner for developing their 
businesses. 
Other specific joint actions are also planned, such as the organisation of a seminar on inter-
firm partnership with China. 
37 Council Regulation No. 443/92 of 25.02.92. 
38 Council Regulation No. 319/92 of 03.02.92. 
^2S 
5. PROMOTION OF COMMUNITY EXPORTS TO NON-MEMBER COUNTRIES 
The promotion of Community exports to non-member countries can be supported, as under 
the EXPROM programme for Japan, by executive training measures, market research and 
logistical and financial support for participation in fairs. In addition, joint action by the 
departments has resulted in export guides for the United States, Canada, Australia or Japan, 
in order to facilitate and promote Community exports to these buoyant markets. 
In conclusion, most of the cooperation programmes with third countries, such as TACIS, 
PHARE, Export Promotion, EXPROM-Japan, Med-Invest, ECIP, Med-Campus and Med-
Urbs, encourage the development of SMEs and particularly joint ventures. Although SMEs 
are the main beneficiaries, directly or indirectly (through larger undertakings), Community 
support is not specifically aimed at Community SMEs, and the PHARE and TACIS 
programmes, for example, also support SMEs in countries receiving Community aid. On 
the other hand, in the case of joint ventures both parties are guided by a common interest 
which allows permanent economic ties to be formed between Community partners and 
those in non-member countries. 
All the work of cooperation with non-member countries is carefully coordinated by the 
various competent Commission departments. It enables those countries to benefit by the 
expertise acquired as regards enterprise policy and the existing networks of intermediaries 
of European SMEs, and it gives European SMEs a better insight into the opportunities 
available to them in non-member countries through Community programmes. 
IV.2 HYGIENE, HEALTH AND SAFETY AT WORK 
1. European Year of Safety, Hygiene and Health at Work (1992) 
In connection with the European Year of Safety, Hygiene and Health at Work, organised in 
1992, special attention was paid to information and improved safety and health in SMEs. 
A 3G 
The project selection criteria laid down in the Council decision of 25.7.9139 establishing 
the European Year of Safety, Hygiene and Health at Work stipulate that projects in favour 
of SMEs should be preferred. Out of a budget of ECU 12 million, 56% of the actions 
directly financed by the Commission and 50% of the projects part-financed on the 
proposal of the National Liaison Committees40 were intended for SMEs. 
The majority of these actions aimed: 
to inform SMEs about European and national legislation on health and safety at work; 
to increase awareness of these problems among those responsible in SMEs and to train 
them to take these problems into account; 
to provide practical instruments for evaluation and improvement in this matter. 
Moreover, in actions directly organised by the Commission, special attention was paid to 
SMEs: 
by consulting European SME organisations; 
by informing the Euro Info Centres; 
by circulating information and miscellaneous documents and brochures direct to SMEs 
or through networks likely to reach SMEs (such as sectoral professional organisations, 
SME federations, Euro Info Centres); 
by producing documents targeted on SMEs; 
by promoting information and training media likely to be used in SMEs (e.g. film 
video). 
The enterprise policy services were associated with the European Year of Safety, Hygiene 
and Health at Work, in particular by producing a "handbook of self-auditing on safety at 
work" for SMEs and co-financing a special edition of the EURO-CE review, with a 
circulation of 200,000 copies. During this Year, the Commission staff gave talks on the 
various aspects of workers' health protection in SMEs; these were collected in the form of 
conference reports. 
Since this was essentially an information campaign, these actions did not aim to modify the 
administrative, financial or legal environment of SMEs, but to circulate information on 
rules and good practice in this matter. 
39 OJL 214 of 02.08.91 
40 Provisional figure. 
13^-
In view of the importance of this field of activity, the Commission, in collaboration with 
the Advisory Committee for Safety, Hygiene and Health Protection at Work, set up by the 
Council Decision of 27.6.7441, undertook a longer term discussion of information for 
SMEs on safety and health at work. This discussion will take place in collaboration with 
both sides of industry and the enterprise policy services. 
In conclusion, departmental coordination in the field of Safety, Hygiene and Health at work 
has been very fruitful. 
2. Activities in the field of health protection at work 
In coordination with the World Health Organisation and the International Labour Office, 
the Commission departments are developing safety cards on chemical substances. These 
cards, intended mainly for SMEs, are meant to provide information on the characteristics, 
toxic potential and typical reactions of certain chemicals used at work. So far, the first 
series of cards and a handbook have been prepared and translated into the Community 
languages. It is planned to add to the card series by stages in order to cover the maximum 
number of chemical substances. 
A draft recommendation is being prepared on the establishment of a system for collecting 
and disseminating information on technical solutions which could improve conditions at 
work. 
The aims of this draft are: 
to encourage cooperation in the exchange of suitable solutions for problems at work; 
to define clearly the objectives and constraints of a system of this type; 
to consider whether a data base of typical solutions would be appropriate; 
to propose measures to be taken in.this field. 
Under Article 118a of the Treaty, when preparing a draft act of legislation aimed at 
improving the health and safety of workers, the Community must prove that the act does 
not impose administrative, financial or legal constraints on the creation and development of 
small and medium-sized enterprises. The competent Commission departments are 
responsible for analysing the potential impact of the proposed acts on the creation and 
development of SMEs. 
41 OJ L 185 of 09.07.74, p. 74. 
130* 
3- Training and advice for creators ot SMEs 
In 1987 and 1988, training and advice for creators of SMEs as regards health and safety at 
work were supported by the European Social Fund. Two pilot actions were successfully 
completed, one in Luxembourg with the Chambers of Trade and the other in the Nord-Pas-
de-Calais region in partnership with the Region and the Caisse Régionale d'Assurance 
Maladie, and were continued in 92 and 93. By these actions, SMEs were made aware of 
and trained in safety and health at work, so that these problems were integrated into the 
management of the business. A deterioration in safety in a business is frequently a first sign 
of deteriorating management. These actions help prevent a number of young businesses 
from going bankrupt. They have resulted in the creation of two teaching tools for safety 
training: two computer programs which simulate SME management, one in the carpentry 
sector and the other in the prepared meat products trade. 
In view of the success of these two pilot actions, similar actions will be carried out in Spain 
and Portugal. They form the subject of inter-departmental coordination. 
IV.3. NEW FINANCIAL TECHNIQUES AND SMEs 
In connection with new financial techniques, the Commission has continued to develop two 
actions, in addition to the JOPP programme described in the chapter on cooperation with 
the CEECs. These are EUROTECH CAPITAL42 and VENTURE CONSORT whose aims 
include the elimination of unjustified financial constraints which impede the creation and 
development of SMEs. These programmes are administered in collaboration between the 
Commission departments and form part of a set of financial (SEED CAPITAL) or 
technological (VALUE, SPRINT, IMPACT) programmes. 
EUROTECH CAPITAL participates directly in financing SMEs developing transnational, 
advanced technology projects. 
VENTURE CONSORT part-financed SMEs to the level of ECU 0.8 million in 1991, 
ECU 0.9 million in 1992 and ECU 0.7 million in 1993. EUROTECH CAPITAL 
participated in financing SMEs to the level of ECU 1.9 million in 1991, ECU 1.4 
million in 1992 and ECU 1.1 million in 1993. 
42 Commission decision No. EEC/1781/91 of 17.12.91 
A S3 
These financial measures help to reduce the cost of financing SMEs while encouraging their 
integration into international markets. Due to a lever effect of 1 to 25 EUROTECH 
CAPITAL part financing made it possible to provide SMEs with a global amount of 195 
MECU of venture capital since the beginning of the programme. 
Since the EUROTECH CAPITAL action concerns investments, its impact in terms of 
economic development cannot be measured until the end of the investment cycle, which is 
from 5 to 10 years. 
Due to the fact that the European Investment Fund will include equity capital activities for 
SMEs, it is envisaged to carry out an internal evaluation of the Venture Consort action 
prior to its integration in the SME activity of the Fund. 
IV.4. TRANSPORT AND SMEs 
Although there is no legislation specifically aimed at SMEs in the transport sector, almost 
all the measures taken have a direct or indirect effect on SMEs. In 1992 and 1993 the 
Council adopted several regulations which substantially liberalized the transport of goods 
and passengers by road, sectors in which SMEs are most numerous. 
Road haulage 
Regulation EEC No. 881/92 of 26 March 199243 on access to the market in the 
international carriage of goods by road within the Community provides for the elimination 
of all quotas on 1.1.93. International transport now takes place under cover of a 
Community licence which replaces all the documents or authorizations previously required. 
According to people in the sector, this measure, which is reflected in administrative 
simplification, permits a saving of 3 to 4% on the price of traditional transport and even 
more on the price of "Express" type transport. 
43 OJ L95 of 09.04.92, p. 1. 
Concerning road cabotage, the EC Regulation n° 3118/93 of 25 October 199344 laying 
down the conditions under which non resident carriers may operate national road haulage 
services within a Member state provides for the progressive liberalization of cabotage 
(through annual quota allocated amongst the Member States) to be effective on July 1st 
1998 when limitations will disappear. 
Carriage of passengers by road 
Regulation EEC No. 684/92 of 16 March 199245 on common rules for the international 
carriage of passengers by coach and bus, another sector in which SMEs are numerous, has 
the effect of liberalizing all occasional passenger services and shuttle services with 
accommodation. The elimination of authorizations removes substantial administrative 
formalities, very important to SMEs which operate more particularly in this sector. The 
regulation also reduces the time taken to obtain the necessary authorizations for regular 
transport services and shuttle services without accommodation. 
As regards "passengers cabotage", EC Regulation n° 2454/92 of 23 July 199246 laying 
down the conditions under which non-resident carriers may operate national road passenger 
transport services within a Member State, provides for the immediate liberalization of 
certain cross-border special regular services, other regular services being excluded for the 
time being, as well as of non regular services, the immediate liberalization of "closed-door 
tours" and the liberalization of all non regular services from 01.01.1996. 
IV.5 THE ENVIRONMENT AND SMEs 
The Fifth Environmental Action Programme states in chapter 4 on manufacturing industry 
that there should be no discrimination between SMEs and larger enterprises. It further 
states that "a special effort will be made to avoid disproportionately burdensome 
administrative, financial or legal constraints which might impede the creation or 
development of SMEs.... It may be possible to provide direct practical assistance, 
including provision of expert services, training programmes". 
44 OJ L 279 of 12.11.93, p. 1. 
45 OJ L 74 of 20.03.92, p. 1. 
46 OJ L 251 of 29.08.92, p. 1. 
-W-1 
Consequently, besides the possibilities of obtaining subsidies under the framework on State 
aids for environmental purposes, financial instruments for environmental protection such 
as, for example, the LIFE instrument provide the possibility of supporting SMEs as well as 
larger enterprises. 
Until the end of 1991, SMEs could obtain support under the framework of the Community 
Actions for the Environment programme (ACE)47. This regulation specifically stated that 
the development of clean technologies and of improved techniques for the recycling of 
waste is likely to be of particular importance for SMEs. The annual budget of ACE was 
about ECU 4.5 to 5.5 million but only a small part of the budget was spent on SMEs. 
From 1992 onwards SMEs can be supported under the framework of the LIFE Financial 
Instrument for the Environment48. The total annual budget is approximately ECU 66 
million (ECU 400 million up to the end of 1995) of which ECU 20 million are foreseen for 
nature protection and 5% for projects outside the Community. 
Since the LIFE instrument has a larger budget than the ACE programme, it may be 
assumed that the size of projects funded will be larger. This may prove a deterrent to SMEs 
with only a limited capital available, for example, for the financing of clean technology 
projects which are a "follow-on" from research and development. However, if SMEs in 
different Member States collaborate on projects, raising the appropriate degree of funding 
should not be a problem. 
This possibility is emphasized in the annex to the LIFE regulation, where it is stated under 
"3. administrative structures and environment services" that the actions are "to foster 
greater cooperation between the authorities of Member States particularly with regard to the 
control of trarjsboundary and global environment problems." The "clean technology"49 
tender offer stated that for project selection purposes, the Commission will give preference 
to projects involving an association between at least two partners from outside the 
Community and to projects calling for the use of an international network. Some projects 
have been submitted by association of SMEs. It is obviously too early to evaluate the 
participation of SMEs in these programmes. Results will be examined in the next report. 
47 Council Regulation EEC No. 2242/87 of 23.07.87. OJ L 207 of 29.07.87, p. 9. 
48 EEC Regulation No. 1973/92 of 21.05.92, OJ L 206 of 22.07.92. 
49 Published in OJC 336 of 19.12.92, p. 13. 
A^Z 
One of the aims of these programmes is to turn the environment protection concern into an 
advantage in terms of competitiveness and employment. Nevertheless, financial resources 
remain limited and it is up to businesses to exploit the potential benefit of the integration of 
new technologies to prevent pollution. 
IV.6 COMMON FISHERIES POLICY AND SMEs 
Besides measures carried out within objective 5a for the improvement of the processing and 
marketing of fishery and aquacultural products, the Commission gives substantial support 
within the structural aspects of the Common Fisheries Policy to restructuring the fisheries 
sector, in particular the Community fleet, as well as to developing aquaculture. 
Mainly formed of SMEs, the Community fisheries fleet, which is in overcapacity in most 
Member States is subject to numerous capacity reductions and has to face huge investments 
to modernize and meet the sanitary and safety standard requirements. 
About ECU 20 million were spent in 1993 to modernise this sector, including building new 
boats, and ECU 164 million were spent on adjusting the capacities. 
Aquacultural businesses are also, for most of them, small and their expansion is largely 
conditioned to their fulfilment of Community sanitary and environmental requirements. In 
1993, 269 projects received ECU 52.7 million, priority being given, besides sanitary 
standard to the development of new productions. 
V. CONCLUSION 
In this report the Commission has endeavoured to give an account and measure the impact 
of programmes and initiatives carried out at Community level in favour of SMEs. The 
SME dimension is in fact present in a great many policies, and is tending to be reinforced 
so that SMEs become more involved in the process of European integration. 
Wishing to develop synergies between the various Community programmes which they 
administer, the Commission departments have coordinated their efforts to achieve greater 
efficiency, particularly in favour of SMEs. 
^M3 
Thus, coordination has been particularly fruitful as a result of the joint actions or close 
collaboration between the departments in fields such as: inter-firm cooperation 
(Europartenariat, Interprise, Med-Invest, La-Invest, TACIS, PHARE), research and 
technological development (VALUE SME), finance (Eurotech Capital, Venture Consort) 
and finally, vocational training. This coordination has often permitted a greater impact on 
SMEs than if the initiatives had been carried out in isolation. 
However, improvements are probably necessary in the field of regional policies, where 
coordination is more difficult because of the multiplicity of partners involved: Member 
States, regional and local authorities, and numerous Commission departments. 
Furthermore, most of the instruments set up (particularly Community Support Frameworks 
and Community Initiatives) do not aim only at support for SMEs: that is integrated into 
broader support policies. 
Aware of the potential role of SMEs in achieving economic and social cohesion, the 
Commission wishes to increase the visibility of action in favour of SMEs under regional 
policies in order to facilitate access to these funds for SMEs and to improve their 
effectiveness, particularly by supporting SME intermediaries. In accordance with the 
principle of partnership, it is therefore necessary to convince Member States and the 
regional and local authorities responsible for implementation to pay special attention to 
SMEs when preparing the regional development plans now submitted to the Commission. 
The creation of the Committee of the Regions, an advisory committee of representatives of 
local and regional authorities, set up by the European Union Treaty, should also have a 
positive impact on SMEs. 
Moreover, improving the European representativeness of the professional organisations of 
SMEs is a key element in strengthening coordination. Steps have already been taken in this 
direction by means of the social dialogue. 
The Commission will therefore continue its efforts with all its partners, Member States, 
professional organisations, economic and social partners, to ensure that SMEs can play a 
greater part in Community programmes and that the policies developed actually take 
account of their specific needs. 
^Vy 
SUMMARY OF MAIN DEFINITIONS OF SMEs CURRENTLY IN USE AT COMMUNITY LEVEL 
c, subject concerned 
SME State. AidU) 
(OJCEC213of 
19.08.92) 
- small businesses 
- medium-sized businesses 
simplified annual 
accounts for SMEs(2) 
- small firms 
- medium-sized firms 
non life insurance^) 
(Directive 88/357) 
VAT - exemption 
(6th Directive) 
EIB- global loans 
EIB - interest rate subsidies 
(under discussion) 
SME statistics: 
- micro 
- small 
- medium 
- large 
Research and Development 
- CRAFT 
- faisability premiums max. number 
of employees 
50 
250 
50 
250 
250 
500 
250 
0,1-9 
10-19,20-49,50-99 
100-199,200-249,250-499 
+ 500 
500 max. turnover 
(in million ECU) 
5 
20 
5 
20 
12,8 
0.005 
-
20 
/ 
38 max. balance-sheet 
total 
(in million ECU) 
2 
10 
2,5 
10 
6,2 
„ 
-
10 
-Independancy 
Max. 25% capital 
held by a large 
entreprise 
(apart from exceptions) 
-
_ 
_ 
Max. 1/3 capital 
held by a large 
entreprise 
Max. 25% capital 
held by a large 
entreprise 
(apart from exceptions) 
-
Max. 1/3 capital held by a 
large enterprise Other criteria 
-
-
net fixed assets < 75 
MECU 
-
-
-
1 It is sufficient to have 1 of the 2 criteria - turnover or balance sheet - in addition to the number of employees. 
2 U sufficient to have 2 of the 3 criteria - max. number of employees, turnover or balance sheet. 
1 It is sufficient to have 2 of the 3 criteria. 
ISSN 0254-1475 
COM(94) 221 final 
DOCUMENTS 
EN 08 
Catalogue number : CB-CO-94-233-EN-C 
ISBN 92-77-69486-6 
Office for Official Publications of the European Communities 
1^2985 Luxembourg