A4-0245/97

Resolution on the fourth annual report of the European Observatory for SMEs (1996) (C4-0292/97)

The European Parliament,

- having regard to the fourth annual report of the European Observatory for SMEs (1996) (C4-0292/97),

- having regard to its resolution of 24 May 1996 on the Commission communication 'The European Observatory for SMEs¨ - comments by the Commission in the third annual report (1995) ((OJ C 166, 10.6.1996, p. 238.)),

- having regard to its opinion of 17 March 1995 on the proposal for a Council Decision relating to a multi-annual programme (1994-1996) of work for cooperatives, mutual societies, associations and foundations in the Community ((OJ C 89, 10.4.1995, p. 202.)),

- recalling its previous resolutions on policies for the benefit of SMEs and, in particular, its resolutions of 24 April 1997 on the Commission communications and report on

. the craft industry and small enterprises, keys to growth and employment in Europe ((OJ C 150, 19.5.1997, p. 44.)),

. the integrated programme for SMEs and the craft sector ((OJ C 150, 19.5.1997, p. 47.)),

. the coordination of activities in favour of SMEs and the craft sector ((OJ C 150, 19.5.1997, p. 50.)),

- having regard to the report of the Committee on Economic and Monetary Affairs and Industrial Policy (A4-0245/97),

A. whereas in 1995 99.8 % of the 16.5 million non-primary private enterprises were SMEs, while 92.8% were very small enterprises,

B. whereas the average number of persons employed in each enterprise declined from seven in 1992 to six in 1995, due to a decline in employment in large enterprises,

C. whereas according to the data provided by the annual report SMEs are less vulnerable to business cycle fluctuations than large- scale enterprises (LSEs),

D. whereas sound management is a key factor for successful SMEs; whereas the craft trades in particular are often characterised by weak managerial and marketing abilities,

E. whereas the transfer of ownership issue is becoming increasingly important, as about a third of the small business owner- managers are over 50 years old;

F. whereas about 1.5 million SMEs in Europe risk unnecessary closure and about 6.3 million jobs are at risk, if the transfer issue continues to be neglected,

G. whereas 20-30 % of all enterprises in EU-12 are managed by women and 25-30 % of all new enterprises are started by women,

H. whereas women play an important role as assisting spouses in 60-80 % of all SMEs,

I. whereas cooperatives, mutuals, associations and foundations (CMAFs) account for at least 6.5% of the number of private enterprises and employment in CMAFs is equivalent to about 5.3 % of that in private enterprises,

1. Welcomes the fourth annual report 1996 of the European Observatory for SMEs as informative and comprehensive documentation of the trends, practices and developments in the European Union, Iceland, Liechtenstein, Norway and Switzerland;

2. Welcomes the inclusion in the fourth annual report of in-depth specific studies on 'Women and SMEs¨ and 'Co-operatives, Mutuals and Non-profit Organisations¨, which have been neglected so far;

3. Points out that female entrepreneurs still encounter many difficulties, especially in the field of capital and finance, as - according to the annual report - women are often regarded as financial risks by banks, and calls for action to improve this situation and achieve a change of attitude;

4. Recommends that the Member States organize a campaign, in cooperation with women's organizations, members of the professions, the self-employed and SMEs, to provide the women involved and their spouses with information about their legal status and about every possible voluntary arrangement, on the basis of company law and the laws relating to matrimonial property and inheritance, which might improve their legal status;

5. Notes with concern that the major problems facing assisting spouses still lie in the field of social protection as well as in their legal status and calls for a reform of matrimonial and fiscal law, for matrimonial and company law to be brought into line with each other as well as for the introduction of adequate social security provisions;

6. Calls for the final adoption of the European Cooperative Statute, the blocking of which is a significant obstacle to cross- border operations of cooperatives in the Single Market;

7. Reminds the Commission that a European statute for the European Company has still not been adopted and asks it to investigate the extent to which a European form for an established company might provide a solution for undertakings wishing to cooperate further than is currently possible under the European Economic Interest Grouping;

8. Takes the view that CMAFs contribute to economic growth and employment and calls for the creation of support structures such as Cooperative Development Agencies to address the problems in the field of business planning, training and financing and thus increase this contribution;

9. Regrets that the multi-annual programme (1994-1996) of work for cooperatives, mutual societies, associations and foundations in the Community was never adopted and is now on the verge of being withdrawn by the Commission;

10. Is of the opinion that the poor quality of the statistical data available on CMAFs clearly demonstrates that continued studies in this field are required and calls on the Commission and the Member Stats to increase work in this field;

11. Is of the opinion that as far as the problem of transfer is concerned, the possibilities offered by the transfer of enterprises to their employees such as Employee Share Ownership Plans and Employee Common Ownership Plans should be more actively taken into account;

12. Notes that the high level of inheritance taxes and gift taxes is an important factor which inhibits transfer and calls on the Member States to consider lowering or exemption from these taxes where this seems appropriate;

13. Calls on all the institutions involved to make entrepreneurs more aware of the need to prepare the transfer, be it through the organisation of work sessions or exchange of best practice and experience;

14. Notes that management competence is an essential element for the success of SMEs and the craft trade and calls for the improvement of initial training as well as continuing training and for harmonisation of apprenticeships within the European Union;

15. Notes that in the field of financing the possibilities for securitisation of Mutual Guarantee Schemes and Loan Guarantee Schemes as practised in the United States can significantly reduce the discrimination SMEs are facing in this field;

16. Regrets that the implementation of the ELISE programme is being blocked by the Council;

17. Points out that as far as the internationalisation of SMEs is concerned, access to loan and guarantee schemes to finance the introductory period and to cover commercial as well as political risk is of vital importance as is management training, the availability of information and cooperation in industrial networks;

18. Notes that a reduction of corporation tax on the retained profits of small businesses can be an effective instrument to increase employment as a significant number of those businesses which have the potential for growth are inhibited by the corporate tax systems in many Member States which favour investing money outside rather than inside the enterprise;

19. Notes that local partnerships between large enterprises and SMEs, which exist mainly in the manufacturing industry, give SMEs privileged access to strategic resources and do have a positive impact on employment growth and thus encourage this development;

20. Hopes that the European Observatory for SMEs will be able to pursue its activities in the most useful manner and at regular intervals, all the more so since its annual report concerning SMEs is now widely acknowledged as a reference document in scientific and economic circles;

21. Instructs its President to forward this resolution to the Commission, the Council and the parliaments of the Member States.