COMMISSION OF THE EUROPEAN CŒfYlUNITIES 
COM(92) 470 final 
Brussels, 13 January 1993 
THE ENTERPRISE DIMENSION 
ESSENTIAL TO COMMUNITY GROWTH 
Community measures to intensify and to ensure the 
continuity of a policy for enterprise, in particular SMEs, in 
the Community 
PROPOSAL FOR A 
COUNCIL DECISION 
on a multiannual programme (1993-96) of Community measures to intensify 
the priority areas of policy for enterprise, in particular SMEs, in the 
Community 
(presented.by the Commission) 
PROPOSAL FOR A 
COUNCIL DECISION 
on a multiannual programme (1994-97) of Community measures to ensure the 
continuity of policy for enterprise, in particular SMEs, in the Community 
(presented by the Commission) 
94 t 
AH 
THE ENTERPRISE DIMENSION ESSENTIAL TO 
COMMUNITY GROWTH 
EXPLORATORY MEMORANDUM 
INTENSIFICATION OF PRIORITY ENTERPRISE 
POLICY MEASURES IN ORDER TO STIMULATE 
GROWTH IN THE COMMUNITY 
I. OBTECTIVES 
II. PRIORITY AREAS FOR INTENSIFICATION 
A) DEVELOPMENT OF EURO-INFO-CENTRES TO 
FACILITATE ACCESS TO COMMUNITY 
INFORMATION 
B) DEVELOPMENT OF NON-CONFIDENTIAL AND 
CONFIDENTIAL PARTNER-SEARCH NETWORKS -
BRE and BC-NET 
C) STEPPING UP ACTIVITIES TO PUT BUSINESSMEN 
IN DIRECT CONTACT WITH ONE ANOTHER 
UNDER THE EUROPARTENARIAT AND 
INTERPRISE PROGRAMME AND PROMOTING 
CROSS-BORDER SUBCONTRACTING 
D) IMPROVING THE ADMINISTRATIVE AND LEGAL 
ENVIRONMENT OF ENTERPRISES 
E) PROMOTING COMMUNITY INSTRUMENTS 
III. CONCLUSION 
ENSURING THE CONTINUITY OF A POLICY FOR 
ENTERPRISE, IN PARTICULAR SMEs, IN THE 
COMMUNITY 
I. OBJECTIVES 
II. MEASURES TO ENSURE THE CONTINUITY OF 
ENTERPRISE POLICY 
A) MEASURES AIMED MORE PARTICULARLY AT 
AREAS UNDER DEVELOPMENT 
Small firms and craft businesses 
The distributive sector 
Cooperatives, mutual societies, non-profit 
associations and foundations 
B) ENCOURAGING AN IMPROVED FINANCIAL 
ENVIRONMENT 
C) OBSERVATION AND EVALUATION OF THE 
POLICY 
European SME observatory 
Improving statistics on SMEs 
Evaluation of existing policy and measures 
III. CONCLUSION 
PROPOSALS FOR DECISIONS 
1. Proposal for a Council Decision on a multiannual 
programme (1993-96) of Community measures to 
intensify the priority areas of policy for enterprise, in 
particular SMEs, in the Community 
2. Proposal for a Council Decision on a multiannual 
programme (1994-97) of Community measures to 
ensure the continuity of policy for enterprise, in 
particular SMEs, in the Community 
EXPLANATORY MEMORANDUM 
In Edinburgh on 11-12 December 1992, the European Council, endorsing the 
guidelines put forward by the Commission, agreed action on a wide scale to 
support growth in the Community. 
The Declaration on Promoting Economic Recovery in Europe (1) states that: 
"Recognizing the importance of SMEs for creating employment and stimulating 
growth, the European Council called upon the Council and the Commission to 
ensure that the burdens from Community legislation on small and medium-
sized enterprises are reduced (including through the use of simplified 
schemes and exemption limits in the field of indirect taxation) and that full 
information about Community support is provided to SMEs. It asked the 
Commission to accelerate the actions in favour of SMEs which have proven 
their worth at the Community level". 
SMEs account for a major share of GDP, employment and regional 
development in the Community, and thus make a significant contribution to its 
economy (2). 
The current crisis of confidence and the economic difficulties now afflicting 
Community action (3) nevertheless underline the soundness of the analysis 
underlying the launch of an enterprise policy, and also of the measures taken 
since. The need to intensify and continue the policy has now been recognized 
and a priority part of it has been made central to the recovery and expansion 
of the Community economy. 
In this context, in order to restore the confidence of businessmen and hence 
stimulate their involvement in the economic process, it is essential to maintain 
the indivisibility of the enterprise policy framework. The objective of reviving 
growth justifies anticipating and increasing the Community's effort with regard 
to priority measures capable of mobilizing enterprises to achieve the recovery 
objective. 
(1) European Council, Edinburgh, 11-12 December 1992, Conclusions of the Presidency, 
Annex 4 to part A, point 8 
(2) According to the second Commission report "Enterprises in Europe", of the 11.6 million 
enterprises surveyed in 1988, 96.3% had less than 20 employees, 3.4% between 20 and 200 
employees and less than 0.2% had between 200 and 500 employees, accounting overall for 
70.2% of employment in the EEC; the proportion varies across the different regions of the 
Community. ISBN-92826-4609-2. 
(3) There has been a marked deterioration in short-term economic prospects. The lowering of 
growth forecasts in relation to those made in spring 1992 (1% growth now probable in 
1993 as against 1.7% previously) is an indication of a worsening in the economic situation 
even greater than expected (the threshold of 10% unemployment will probably be passed), 
with a longer timescale for recovery. This latter may be due to a number of factors, in 
particular the loss of competitiveness of some products on external markets due to the 
appreciation of certain currencies and especially, according to periodic surveys, a marked 
crisis in consumer and business confidence. 
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To mobilize businessmen in the short term, it is essential to hold up the long 
term prospects which the Community intends to provide in support of the 
steady expansion of enterprises, and in particular of SMEs. The need for 
longer-term action is the reason why a proposal for a decision has been put 
forward which identifies the instruments and areas which will ensure the 
continuity of enterprise policy. 
The co-existence within the unitary framework of enterprise policy of two 
proposals for decisions, each with its own value added, should make it 
possible to optimize the macro- and micro economic effects of the enterprise 
dimension. 
A degree of balance between these two aspects of enterprise policy is necessary 
to ensure that action to restore business confidence in a depressed economy 
does not jeopardize the credibility of Community action by neglecting the need 
to tackle long-term structural change. 
This programme in favour of enterprises therefore seeks to reinforce 
immediately those areas for priority action which could provide an immediate 
response to the needs for enterprises to adapt in a period of uncertainty. It will 
also have to ensure the continuity of supporting measures, whether of a 
general nature or in favour of specific categories of enterprises, in order to 
avoid merely shifting in time or from one business category to another the 
tendency towards negative expectations whose effect on economic 
development is clearly seen today. 
The general economic situation calls for a special effort where enterprises are 
concerned, which must supplement the substantial activity carried out in their 
regard for several years, designed to ensure the thorough involvement of 
enterprises, especially small and medium-sized ones, in a Community 
economy and society in full evolution. 
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INTENSIFICATION OF PRIORITY ENTERPRISE POLICY MEASURES IN 
ORDER TO STIMULATE GROWTH IN THE COMMUNITY 
(1993-1996) 
INTENSIFICATION OF PRIORITY ENTERPRISE POLICY MEASURES IN 
ORDER TO STIMULATE GROWTH IN THE COMMUNITY 
I. OBJECTIVES 
In order to ensure that Community enterprise policy involves a significant 
value added element and enables it to contribute to economic revival, the 
actions most closely geared to the situation of enterprises must be greatly 
developed and the interaction of instruments intensified. 
A major objective is to allow enterprises - beyond the necessary structural 
changes and greater competition - to seize the opportunities provided by the 
new dimension of the internal market. 
In the context of the Europeanisation of enterprises, the direct effect of 
strengthening instruments is therefore a crucial factor for growth. It must be 
based both on the information and cooperation networks set up and on the 
promotion of existing Community instruments, particularly the strengthening 
of technological potential, and must also promote the adaptation of the 
administrative and legal environment to the development of business initiative. 
As part of increasing internationalization, as regards both business strategy and 
the growing importance of partnership in industrial and technical cooperation, 
full account should be taken of the importance of external relations with non-
Community countries as markets are rapidly opening up. 
Networks and instruments should thus continue to be expanded to non-
Community countries, in line with the priorities of external affairs and 
development policy. The aim is the mutual one of creating the best possible 
conditions for contact between Community and third-country businesses, on 
the basis of know-how already tested at Community level, provided the proper 
functioning of instruments is not thereby jeopardized. 
Against this background, the instruments and measures developed to help 
SMEs should be directed, by way of priority, at the new European Economic 
Area, bringing in the EFTA countries, and also the countries of eastern and 
central Europe. Measures should be developed in complementarity with those 
provided for in the Community's various trade and development agreements, 
and in other assistance and cooperation programmes. 
The selection of the priority areas of enterprise policy to be reinforced with a 
view to economic recovery takes into consideration the results of the 
evaluation of the 1990-93 programme being carried out pursuant to Decision 
91/319/EEC (4). The evaluation recognized the soundness of the measures 
and their capacity to fulfil the tasks set for them, especially their relay effect in 
getting Community objectives across to firms. This why it has been decided 
that the priority areas advanced are those best able, once the resources at their 
disposal are increased, to sustain a process of reviving enterprises' activity. 
(4) Comments by the Commission on the Deloitte & Touche Report on the evaluation of the 
Community's enterprise policy, SEC(92) 1999 of 11 november 1992. 
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II. PRIORITY AREAS FOR INTENSIFICATION 
A) DEVELOPMENT OF EURO-INFO-CENTRES TO FACILITATE ACCESS 
TO COMMUNITY INFORMATION 
1. Information is one of the main factors contributing to the development 
and EuropeanLzation of businesses, and the Commission will endeavour to 
achieve maximum synergy between all the information intermediaries 
available to businesses. 
The main priority is therefore given to reinforcing and developing the 
Euro Info Centres (EIC) network. 
Tailored to the needs of businesses, the Euro Info Centres network plays a 
dual role, both upstream and downstream of the Commission administration: 
downstream, by disseminating information on Community affairs 
extremely widely through the many relay points branching out from the 
210 EICs; 
upstream, by stimulating highly valuable feedback on the regional 
economic climate in which businesses are operating. 
This information is available to all members of the network and will become 
increasingly important as the different regions take a greater share of the trade 
generated by completion of the internal market. 
Certain specializations, duly identified and encouraged by the networks's 
central unit, help to increase the added value of the network as a whole 
through the dissemination of increasingly operational information and the 
preparation of integrated information packages. 
The EICs also provide practical information and assistance for firms wishing 
directly to exploit the opportunities offered by Community programmes and 
increasingly open public procurement. 
The EIC network thus emerges as a highly effective diversified, multifunctional 
Community instrument- with a high added value - providing enterprises with 
information through decentralized small-business organizations, whose 
European activities it helps to stimulate. 
2. In view of the foregoing, both the structure of the network and the nature 
of the information provided need to be adjusted in a climate of broad dialogue 
which must enable businessmen to establish strategies quickly in connection 
with the effective functioning of the large single market. 
With this in mind, the following matters will be proposed: 
adjusting the composition of the network so as to take greater account of 
existing specialized networks (specializing by size of business -craft 
industry - or by sector) and granting further requests to join the network 
from decentralized relays currently operating as subnetworks; 
setting up new correspondence centres outside the Community, to take 
into account the needs of firms wishing to internationalize their 
operations; 
speeding up the process of making available reliable information targeted 
to their real needs of businesses in the context of the single market, in 
particular in the form of integrated information products, of the database 
type; 
as part of the financing of EICs, partial Commission funding of 
decentralized promotion work and database consultation to boost network 
effectiveness; the latter financing formula would replace the arrangement 
whereby free access is granted to Community databases only, a system 
which is to be phased out. The Commission's contribution would be 
conditional on the EICs achieving precise objectives, especially in 
penetration local business life. 
B) DEVELOPMENT OF NON-CONFIDENTIAL AND CONFIDENTIAL 
PARTNER-SEARCH NETWORKS - BRE and BC-NET 
3. The strategy of joint development of the two partner-search instruments 
(BRE and BC-NET) will take account of the different aspects of the quality-
improving approach supported by the Council from 1991, when it revised 
Decision 89/490/EEC, and of more recent factors resulting from the internal 
and external evaluation of the measures in this field: 
awareness measures and training for the business advisers belonging to 
these two networks will reflect the observed evolution towards greater 
interest in technological, financial and marketing cooperation; 
cooperation between the partner-search instruments (BRE and BC-NET) 
and other decentralized networks will be encouraged making it possible to 
provide a service closer to enterprises'needs: e.g.the BRE and BC-NET 
networks could flank initiatives of the Interprise type upstream and 
downstream; the networks will also seek appropriate forms of cooperation 
with business organizations, chambers of commerce and industry and 
chambers of trade so as to increase the network effect of the instruments 
and make them more effective. 
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4. The BUSINESS COOPERATION CENTRE (BRE) specializes in non-confidential 
searches for business partners and enables firms to be approached direct via 
the network of local correspondents in all Member States and in certain third 
countries. 
The development of the BRE will be continued in accordance with the 
approach of recent years, in particular: 
BRE's scope will be extended by increasing the number of correspondents 
inside and outside the Community; 
the quality of service will be improved by increasing the professionalism of 
the network correspondents; 
the intensification of cooperation between members of the network will be 
supported. 
The BRE network should also remain a simple and flexible system to use, since 
these are extremely important factors in making it accessible to the greatest 
number and in winning the esteem of correspondents and businesses alike. 
Thus, a number of operational improvements will be made: 
to identify more clearly the types of cooperation sought and the aims 
pursued, such as the gradual merger of EIC Conferences with the BRE 
to improve the instrument itself, notably by shortening file processing 
times in the central unit for managing the network. 
5. BUSINESS COOPERATION NETWORK (BC-NET), a large network specializing in 
confidential searches for business partners, will step up the drive for quality 
and productivity by focusing on the following points: 
providing stronger support for network members, in terms of training and 
computerization in particular, so that business advisers are able to give 
priority to the preliminary information-gathering phase and facilitate 
contacts between potential partners by giving businessmen an insight into 
new market opportunities; 
stepping up monitoring activities on the basis of regular reporting so that 
results can be assessed more closely in terms of agreements concluded 
and the necessary adjustments can be made to the nomenclatures, the 
computer system and the management of subnetworks; 
introducing and gradually adjusting charges for the service to help not 
only to reduce public expenditure, but also to help raise the quality of the 
service by making the network more homogeneous in terms of its 
preparation and follow-up capacity; after an initial phase in which a charge 
would be made for each cooperation profile, the possibility will be 
discussed with the advisers of changing over to a system of flat-rate annual 
charges, in the light of market conditions; 
the development of synergies with other Community measures, in 
particular following those already begun on the improvement of 
cooperation in the field of human resources and research and 
development - especially the better use of research results, and in close 
connection with other Community programmes, such as those for the 
financing of SMEs and public procurement. 
-8 
C) STEPPING UP ACTIVITIES TO PUT BUSINESSMEN IN DIRECT 
CONTACT WITH ONE ANOTHER UNDER THE EUROPARTENARIAT 
AND INTERPRISE PROGRAMME AND PROMOTING CROSS-BORDER 
SUBCONTRACTING 
6. The EURQPARTENARIAT programme will continue to pursue the twin 
objectives of business expansion and regional development. 
On the basis of the results of the internal evaluation currently being carried 
out, the Commission will endeavour to promote better preparation of 
enterprises and better follow-up of results in cooperation with national bodies. 
An effort will be made to ensure the balanced participation of firms in the 
Community, in neighbouring European countries and in the Mediterranean 
countries. 
The structural impact of the events will be stepped up and special attention 
paid to the existence in the region concerned of organizations that can provide 
follow-up. 
Europartenariats have so far chiefly concerned Objective 1 regions and this 
priority will be maintained. It will, however, be necessary to see that they are 
extended to the Objective 2 and 5(b) regions. 
7. The INTERPRISE programme has also attracted strong support from 
businesses, public bodies, trade associations and chambers of commerce, 
trade, etc. 
Support should continue to be given to sectoral or intersectoral meetings of 
this type and in particular to schemes promoting cooperation within and 
beyond the Community on priority topics such as the process of privatization, 
in which the position and role of SMEs should be strengthened. 
Furthermore, to ensure interaction between programmes, Interprise meetings 
could follow Europartenariats reasonably closely, in order to benefit from all 
the contacts initiated during the main event, in close coordination with other 
existing instruments (technology transfer days and investment forums - Sprint). 
8. Efforts to build up PARTNERSHIP WITH BUSINESSES OUTSIDE THE COMMUNITY follow a 
similar approach to the one for those within it. 
Since the aim is to encourage businesses in Member States and third countries 
to cooperate, the necessary finance will be drawn mainly from programmes 
developed as part of the Community's external relations policy. 
An initial project of this type has been run with Tunisia and has confirmed the 
soundness of the approach. On this basis, a multiannual pilot programme 
(Med Invest) is being prepared for the Mediterranean countries. 
Against such a background, the Interprise programme should continue to be 
opened up to businesses in third countries in conjunction with its 
Europeanization and internationalization objectives. 
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9. In CROSS-BORDER SUBCONTRACTING, account has to be taken of the rapid and 
far-reaching changes that are affecting the sectors concerned. 
The "total quality" approach is now a key factor in competitiveness, which 
depends not only on product quality but also on management principles 
designed to reduce malfunctions in the production process. Clearly, the 
requisite standard of quality must be achieved by all the links in the chain. 
Consequently, many main contractors are now signing cooperation 
agreements with subcontractors in order to bring them up to the same 
standard of quality. Stocks having been reduced through just-in-time delivery, 
management is now being taken into account as a factor contributing to 
competitiveness. 
These trends call for action to stimulate partnership on a longer-term basis 
between large firms and SMEs in order to guarantee product and service 
quality over time. 
In this context, Community action should continue to facilitate the emergence 
of a European market in subcontracting by: 
improving knowledge of the legal situation and economic importance of 
subcontracting, even in sectors that are still fairly effectively walled off; 
promoting the harmonization of auditing and certification procedures with 
a view to arriving at comparable quality standards enabling mutual 
recognition agreements to be concluded; in general, such action should 
give preference to mutual recognition agreements entered into on a 
voluntary basis; 
creating a genuine Europe-wide subcontracting network will facilitate 
cross-border contacts and exchanges of experience between trade 
associations; this is especially important for the competitiveness of the 
European economy, particularly in such key sectors as motor vehicles and 
electronics, for which pilot projects will be proposed to speed up the 
adjustment process. 
10. Measures to stimulate and back up cooperation between businesses will 
also be maintained. This is because, although a large number of Community 
firms already generate a proportion of their turnover outside their home 
country, notable differences do exist between sectors and regions in the 
Community. It is therefore essential to bear these sectoral and geographical 
factors in mind when adapting and diversifying the action to be taken, so as to 
stimulate the sectors in greatest need and thus contribute to efforts to boost 
activity. 
Likewise, there is no doubt that a firm's size is a factor in determining whether 
it is able to engage in cross-border cooperation and whether it stands to 
benefit. Special attention should therefore be devoted to the difficult situation 
of small firms and craft businesses as part of the single approach to enterprise 
policy. 
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D) IMPROVING THE ADMINISTRATIVE AND LEGAL ENVIRONMENT OF 
ENTERPRISES 
11. Given the likely acceleration in the completion of the internal market, a 
favourable business environment is increasingly important, especially for 
SMEs, and will require increased Community action. 
The new business environment will impose new responsibilities on 
Community institutions and national authorities as regards transparency, 
supervision and partnership. In March 1992 the Commission set up a group to 
look at these problems and make proposals to the Commission. 
The group's report (5) was received on 27 October and the Commission has 
formulated an initial response (6) ahead of the European Council in 
Edinburgh. This will form the background for the Commission's proposals to 
make the Community business environment simpler and more transparent. 
12. With this in mind, the Commission has already published two reports on 
administrative simplification to help businesses, and especially SMEs, in the 
Community (7). In view of the conclusions of the second report, it intends, in 
collaboration with the Member States, to increase the future impact of this 
work by wider circulation of the information gathered and by encouraging 
follow-up measures in the Member States. Joint studies bringing together the 
Member States and the Commission should enable progress to be made in 
perfecting existing simplification techniques, e.g. in terms of cost-benefit 
analysis. 
It is also important to ensure that all decision-makers are more aware of the 
objectives and techniques of simplification. The Member States should 
therefore be working towards the same goal as the Commission, as suggested 
by Council Resolution of 24 November 1992 (8). 
13. The incorporation into the Community's decision-making process of a 
phase of assessment of the impact on enterprises of proposed measures must 
remain a key element of the Community mechanism for improving the 
business environment. Impact assessment, based on the assessment form, will 
require improvement along the lines indicated in the second report on 
administrative simplification recently adopted by the Commission. 
The impact assessment system is still relatively new and a considerable amount 
of Community legislation predates it. The Commission has stated that, in the 
preamble to future proposals for legislation, it will set out the reasons for the 
legislation it is putting forward in the light of the principle of subsidiarity. It 
will also be re-examining some Community rules so as to bring them into line 
with that principle. The Member States too might undertake action along the 
same lines at national, regional and local level. 
(5) The Internal Market After 1992: Meeting the Challenge, SEC(92) 2044, 29 October 1992. 
(6) SEC(92) 2277, 26 November 1992. 
(7) SEC(89) 726, 19 June 1989 and SEC(92) 1867, 27 October 1992. 
(8) Council Resolution on administrative simplification, yet to be published in the Official 
Journal. 
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This exercise should cover not only Community legislation proper, but also a 
number of procedures associated with Community measures, such as 
formalities to be complied with. The task will be to collect information on the 
impact on enterprises of existing Community legislation in the light of the 
experience gained when it was implemented and, where necessary, to make 
proposals for reducing the administrative burden (9). 
14. Finally, greater efforts will have to be made to coordinate activities under 
the Community's enterprise policy and the various Community programmes 
which could benefit SMEs, without jeopardizing the objectives of each of the 
policies concerned. 
This should be accompanied by a strengthening of cooperation with the 
Member States as regards all the initiatives pursued in addition to those 
existing in some Member States or which are likely to be taken up by public or 
private intermediaries. 
Priority should also be given to intensifying and improving the quality of 
consultations organized with the trade bodies concerned. Regular meetings 
will be organized in future and will, as far as possible, involve other 
Commission departments; this forum should put greater weight on dialogue 
and conciliation so that, on the one hand, die measures envisaged by the 
Commission can be made known and, on the other, information can be 
obtained in return concerning the entrepreneurial sensibilities which should 
be taken into account at Community level. 
To this end, certain initiatives already in progress could be maintained with a 
view to the increased Europeanization of businesses. Support could be given, 
for example, to improving the representation of SMEs at European level to 
facilitate relations with European standardization bodies. 
15. In future, increasing attention will have to be paid to the practical obstacles 
SMEs still have to cope with, if they are to make the most of the single internal 
market. For example, the increase in cross-border trade will inevitably lead to 
a proliferation of litigation between nationals of different Member States. Here 
it might be useful, in line with the report on "The internal market after 1992: 
meeting the challenge" (10), to think in depth about how to help simplify the 
formalities governing the reciprocal recognition and enforcement of 
arbitration awards. 
E) PROMOTING COMMUNITY INSTRUMENTS 
16. Businesses are faced with a new rules stemming in particular from the 
change in the regulatory environment alongside the creation of the single 
market. 
(9) SEC(92)1867, 27 October 1992. 
(10) see note 5 
-12 
To encourage their development in this new environment, the Community has 
already implemented a series of appropriate Community programmes and 
instruments. 
It is now up to businesses to take initiatives enabling them to seize these 
opportunities, thus contributing to efforts to boost the economy. However, the 
availability of Community programmes and instruments must be 
complemented by an increased communication and promotion effort and by 
specific business-stimulation measures. 
The Community's communication measures will be maintained and enhanced 
on the basis of experience with the promotion campaign carried out in 1992 
and the mobilization brought about by the European business week in March 
1992. 
17. One priority for this increased effort will be to strengthen the 
technological potential of SMEs. This will involve widening SME participation 
in Community research programmes and improving access by such 
enterprises to the results of Community research. With this in view, the 
Commission will see that initiatives are properly coordinated, in compliance 
with the objectives for each programmes, wether these have a horizontal 
purpose or are intended for specific fields. 
Independent SMEs must take a greater part in the Community's research and 
technological development programmes if they are to have a fair chance 
alongside large firms in the race to improve international competitiveness and 
if they are to be better able to integrate the results of research and innovation 
into their growth strategies. 
Close coordination will be ensured with measures to be taken under, for 
example, the fourth framework programme for research and technological 
development (11). 
A considerable portion of the funds allocated to the promotion of Community 
instruments will be dedicated to the extension to other specific R&D 
programmes of the feasibility premiums successfully tried out in the context of 
Brite/Euram (1987-91). 
Also financed will be the extension of the Craft pilot project, currently being 
carried out, to new research topics and new fields of technology. 
Existing measures under Value and Sprint should be continued and 
encouraged. Specifically, Value relay centres could be set up alongside certain 
Euro Info Centres to provide additional synergy. The potential of BC-Net could 
also be exploited for the purpose. 
Considerable efforts must also continue to enable firms, and particularly 
SMEs, to make full use of the results of research and technological 
development work in the different fields covered. The seed capital pilot 
scheme has indeed contributed to the exploitation of technological potential, 
given that nearly three quarters of investments already implemented have 
related to innovation and technological development and the trend is towards 
an increase in this proportion. This measure will be strengthened in the period 
1993-96. 
(11) COM(92) 406, 9 October 1992. 
-13 
In addition to the measures provides for under the 3rd and 4th framework 
programmes in the field of R&DT, and in coordination with them, the 
following lines of action will be developed: 
informing SMEs more effectively; 
simplifying procedures for submitting research projects; 
evaluating the results of research activities involving SMEs; 
accompanying measures to the setting-up of research projects by means of 
appropriate financial mechanisms 
18. The method applied by EURQMANAGEMENT, which is to select a number of 
specialist consultants throughout the Community who then carry out an audit 
and advise businesses, has been used for the first time in the area of research 
and technological development. An evaluation is currently being made. If it 
turns out to be positive, the Community will work towards this approach being 
incorporated into the Member States' own programmes, if necessary by 
making an initial financial contribution. 
The same method might in future be adopted in other areas, to the extent that 
it is a sound instrument for spreading and supporting the use by enterprises of 
Community programmes and instruments. 
III. CONCLUSION 
In view of the deterioration in short-term economic prospects, and of the 
increasingly complex mechanisms which make up the business environment, 
the Commission must attach particular importance to supporting, and indeed 
restoring, the confidence of enterprises, a vital effort in generating the growth 
needed for the successful implementation of the internal market programme. 
It is desirable, therefore, that any measure which is capable of curbing or 
reversing negative expectations on the part of businessmen should be 
highlighted and implemented as quickly as possible. 
The measures identified in this document have proved their value with regard 
to informing and supporting enterprises in their attempts to gain access to the 
internal market, and on expanded markets. The intensification proposed here 
makes it possible, therefore, not only to boost support for growth but to 
provide those elements of permanence which enterprise policy needs. 
14-
ENSURING THE CONTINUITY OF A POLICY FOR ENTERPRISE, IN 
PARTICULAR SMEs, IN THE COMMUNITY 
(1994-1997) 
-15-
ENSURING THE CONTINUITY OF A POLICY FOR ENTERPRISE, IN 
PARTICULAR SMEs, IN THE COMMUNITY 
I. OBJECTIVES 
Enterprise policy, particularly that in favour of SMEs, which, as underlined by 
the Council resolution of 17 June 1992 (12), is an established part of 
Community action, could be a key element of the strategy of restoring both the 
credibility of Community policy and business confidence. 
The continued existence of these needs is explained by the fact that many 
enterprises, particularly SMEs, are still not able to participate fully in an 
integrated market and to take advantage of the opportunities that the 
completion of the internal market offers at this stage, thus heightening the 
uncertainty and negative expectations of enterprises. A great deal more has to 
be done therefore to restore business confidence. 
Of enterprises wishing to, or with the potential to, Europeanize or 
internationalize their operations, there are still too few SMEs which have 
anticipated the completion of the internal market and have thus implemented 
strategies to deal with the progressive globalization of markets (13). 
Participating in a process of globalization of markets represents an alternative 
strategy, requiring different analytical instruments and forms bf action, the 
availability of which depends on the enterprise's size, sector and location and 
on the existence of associated services. 
The Community therefore has a major role to play in providing enterprises 
with instruments for understanding and analysing the changing economic and 
social realities in Europe and in the world, as well as specific and direct back­
up to help enterprises achieve their full potential. 
By providing added value to instruments already existing at national or 
regional level, the Community can make a significant contribution to the 
Europeanization and internationalization of enterprises, as shown by the 
evaluation report on enterprise policy (14). In so doing, the Community may 
act to improve competitiveness by providing administrations and businesses in 
Member States with the capacity to analyse and understand situations at 
Community or indeed European level, with support for coordination of 
policies and with a capability for experimenting with specific tools and 
instruments, in particular to assist sectors undergoing development such as the 
craft industry, the distributive sector, cooperatives, mutual societies and non­
profit-making associations and foundations. 
(12)OJn°L178ofl5.792 
(13) European economy and social Europe, Special number 1990 ISBN 92-826-1819-6. 
(14) Comments by the Commission on the Deloitte and Touche report on the evaluation of the 
Community's enterprise policy, SEC(92)1999 of 11 November 1992. 
-16-
II. MEASURES TO ENSURE THE CONTINUITY OF ENTERPRISE POLICY 
A) MEASURES AIMED MORE PARTICULARLY AT AREAS UNDER 
DEVELOPMENT 
1. The horizontal nature of enterprise policy means that all types of small, 
medium-sized and large enterprise, whether in manufacturing or in services, 
are concerned. The 1990-93 action programme specifically included 
cooperatives, mutual societies and non-profit-making associations; it also 
enabled a pilot scheme to be funded for SMEs in the distributive sector. 
The Community will ensure the continuity of these specific measures flanking 
its enterprise policy. 
SMALL FIRMS AND CRAFT BUSINESSES 
2. Small businesses, craft businesses and artistic enterprises are nearly five 
million in number and account for some twenty million people. They should 
be able to benefit, in the same way as larger enterprises, from the positive 
impact of completion of the internal market both in terms of developing their 
working methods and skills and in marketing their products. 
However, a number of enterprises of this type are still at a disadvantage faced 
with the reality of the internal market and the internationalization of the 
economy. They therefore tend to approach the necessary adjustments from the 
viewpoint of resistance to increased competition rather than by implementing 
a strategy of global response to the challenges and opportunities which the 
single market presents. 
In the light of the outcome of the Avignon conference (15) and after wide-
ranging discussions with the parties concerned, the gradual implementation of 
a number of measures has been embarked upon aimed at slowly bringing 
these enterprises closer to all of the activities pursued by the Community as a 
preliminary to their involvement in the Community's mechanisms. 
The suitability of this approach was acknowledged by the Economic and Social 
Committee, which, in the recently adopted own initiative report (16), makes a 
large number of additional requests. The Commission proposes that the 
following, inter alia, be taken up: 
developing mutual awareness among small firms and craft enterprises, 
particularly by improving the access to information and cooperation 
between the bodies representing them; 
improving access to new technologies through greater participation in 
R&D programmes and support for innovation transfer; 
(15) Record of the first European craft industry coinference, CEC-DGXXIII 
(16) OJ [pending]; the Deloitte & Touche evaluation report referred to above (see note 14) 
also stressed the importance of specific measures in this field. 
-17-
improving support for crossborder cooperation by taking account of the 
specific situations of the craft industry in frontier regions in policies on 
subcontracting, the environment and financial markets; 
These new developments in Community action to assist the craft industry will 
also enable specific measures to be taken as a follow-up to the Avignon 
conference and to the direction outlined by the Council in Decision 
91/319/EEC of 18 June 1991. 
THE DISTRIBUTIVE SECTOR 
3. For enterprises in the distributive sector, the effects of the internal market 
are felt mainly at the supply level, thus reinforcing the strong concentration 
trends which already exist. The SMEs in this sector are seeking to obtain 
comparable advantages so that they can defend themselves against these 
trends, and horizontal grouping]» are therefore being formed, increasingly 
across frontiers. One of the bases for this approach, and one of the conditions 
for its success, is the integration of new technologies in the organization of 
distributive activities. The ability of an enterprise in the distributive sector to 
meet consumer demand will depend on its adaptation to advanced information 
and communication systems. 
Owing to the heterogeneous nature of the management culture in the 
distributive sector, the SMEs operating in that sector are experiencing major 
difficulties in making equivalent use of information technologies. 
The Community has sought to respond to this phenomenon by means of a 
limited pilot project, which is currently being assessed. Depending on the 
results of that assessment, a fresh set of stimulation measures might have to be 
envisaged designed to create cross-border links between distributive firms and 
between them and their suppliers through the introduction of new technology. 
These measures would be in addition to the horizontal measures listed in the 
Commission's work programme, which has been welcomed by the Council 
(17). 
THE COOPERATIVE, MUTUAL SOCIETIES, NON-PROFIT MAKING ASSOCIATIONS AND 
FOUNDATIONS 
4. In the cooperatives, mutual societies, associations and foundations sector, 
entities of widely differing size coexist, many of which are SMEs. They are 
distinguished by their aims and organizational modes, which call for special 
treatment. 
The Commission accordingly adopted on 18 December r991 three proposals 
for Regulations on the statutes for a European association, for a European 
cooperative society and for a European mutual society (18). 
(17) Towards a single market in distribution, COM(91) 41, 11.3-1991, and the Council's 
conclusions of 26 June 1992. 
(18) COM(91) 273, 53-1992. 
18-
As already announced (19), a work programme to support the efforts of these 
businesses as they face the changes brought about by the completion of the 
frontier-free economic area will be implemented with a view to creating an 
environment conducive to cross-border cooperation and seeking out new 
activities between partners grouped together in the single market. 
B) ENCOURAGING AN IMPROVED FINANCIAL ENVIRONMENT 
5. The general effort to improve the business environment is intended to 
facilitate business start-ups, continued operation and growth. Thus, the 
Community has already been able to play an important role as a catalyst in the 
area of business start-ups, a role which it intends to intensify in close 
collaboration with all parties concerned at national and Community level. 
Likewise, the conditions governing cross-border business transfers might lead 
to appropriate initiatives being taken in the light of the results of a forthcoming 
European conference currently being organized. 
6. At all stages of its development, the enterprise is affected by its financial 
environment which in the Community is currently characterized by a decline 
in cash flow together with under-capitalization (especially as compared with 
enterprises in the United States), in particular in SMEs. 
SME organizations all stress that this should be looked at under the 
Community's enterprise policy, and the Council Resolution of 17 June 1992 
called on the Commission to examine the general aspects of financing in the 
proposals it considered it should put to the Council in order to guarantee 
continuity in enterprise policy. 
As part of its growth initiative, the Community has launched the idea of an 
investment fund which will comprise a section specifically for SMEs. The task 
of enterprise policy in this context is essentially to examine the general 
conditions of finance for SMEs. 
7. Access to finance by borrowing is difficult for many enterprises which are 
not in a position to give traditional financial organizations sufficient guarantees 
to obtain a loan (fixed assets, personal wealth, reputation, etc.). 
One solution to these difficulties which are peculiar to SMEs may lie with 
mutual guarantee companies (20), for which a European association has just 
been formed to promote such companies in the Community by means of 
direct relations between businesses. 
(19) SEC(89) 2187, 18.12.1989. 
(20) SEC(91) 1550, 5.9.1991. 
-19-
In order to overcome this guarantee problem in the area of technology, the 
"Technology Performance Financing" scheme, which is part of the Sprint 
programme, aims to make it easier for SMEs, particularly those in traditional 
industries, to acquire new technology. 
In conjunction with the European Investment Bank (EIB), the conditions for 
granting assistance in providing guarantees to financial intermediaries and 
shares in risk capital for SMEs in assisted regions are also currently being 
studied. 
8. The difficulties which SMEs have in gaining access to external sources of 
finance lead them to rely heavily on self-financing to secure growth. It is 
therefore important to examine the measures which may increase SMEs' 
capacity for self-financing. 
Taxation can play an important role here. For example, the idea of allowing 
one-man businesses to opt to be taxed as companies, as suggested by the 
Ruding Committee and taken up in the Commission Communication to the 
Council and to Parliament (21), might help businesses not constituted as 
companies to become self-financing, corporation tax being lower in most 
Member States than the marginal rate of personal income tax. 
9. The difficulties SMEs have in increasing their own capital is also one of the 
clearly identified shortcomings in SME financing. 
In certain cases, venture capital can provide a solution to this problem. Its 
development, in particular at cross-border level, remains an important 
Community objective and there are a number of programmes to that end, such 
as Venture Consort and Eurotech Capital, or the cross-border investment 
forums organized by Sprint, where the Council has mandated the Commission 
to take action to strengthen innovation-financing infrastructure and activities 
(22). 
As regards seed capital, it should be examined whether the legal and tax 
provisions applicable to venture capital companies are appropriate for 
promoting cross-border growth in this field. 
But one of the major problems in venture capital operations, and all the more 
so in seed capital operations, is resale by funds of their own shareholdings, 
which can prove difficult due to lack of a sufficiently well-developed securities 
market. In most Member States, SMEs still find it difficult to gain access to stock 
markets because of the difficulty and the cost of the procedures involved. 
Secondary markets in the Community remain under-developed. That is why 
consideration should be given to the advisability and feasibility of promoting 
the development in Europe of a network of specialist operators in this field. 
(21) Commission Communication to the Council and to Parliament subsequent to the 
conclusions of the Ruding Committee indicating guidelines on company taxation linked to 
the further development of the internal market, SEC(92) 1118, 26.6.1992. 
(22) Council Decision 89/286/EEC of 17 April 1989, OJ No L 112, 25.4.1989. 
20-
10. Practices concerning payment periods in commercial transactions and 
public procurement are an important factor both in the operation of the 
internal market and in improving the short-term financing capacity of SMEs, 
which in general are creditors in the inter-industrial debt market. This 
naturally has an adverse impact on their financial situation. 
That is why the Commission is undertaking extensive consultation of interested 
parties to determine the extent to which this difficulty could be alleviated (23). 
Any action under the new programme will have to take account of the results 
of this consultation. 
11. In addition, the Community is making a direct contribution to solving the 
problems of SME finance in eligible areas via the structural Funds. 
Public authorities will have to ensure the greatest possible involvment of both 
side of industry, including SME representatives, in the preparation of, and 
follow-up to, the projects and programmes jointly financed by the structural 
Funds. 
12. It should be remembered that, as far as state aid in concerned, the 
Commission has always regarded aid to SMEs more favourably than aid in 
general (24), and will continue to ensure that aid granted to SMEs does not 
distort competition. 
The Commission will also continue to take a viewpoint which is decidedly in 
favour of cooperation between small and medium-sized businesses in the 
context of competition policy. Many firms do not know what they are allowed 
to do under competition rules. It is therefore important to stress the aspects of 
that policy which protect the development of cooperation, R&D, patent and 
know-how licensing, franchising and specialization agreements, provided that 
they do not restrict competition on the market. 
In this context, all available resources will be used to improve information on 
competition policy. 
13. The new discussions as part of the Community's action to stimulate an 
improved environment respond to the wish espressed by the Council in its 
resolution of 17 June 1992 that Commission proposals designed to ensure the 
continuity of the enterprise policy should include consideration of general 
financing aspects. 
(23) SEC(92) 2214, 18.11.1992. 
(24) OJ No C 213, 19.8.1992. 
-21-
C) OBSERVATION AND EVALUATION OF THE POLICY 
EUROPEAN SME OBSERVATORY 
14. A European network of research centres specializing in the observation of 
SMEs was set up in mid-1992 with Community support. 
A need has emerged for the Community and enterprises to be given the means 
of observing the development of SMEs in an environment which is undergoing 
complete change as a result of the enlargement of markets. Anticipation of 
changes in vital if enterprises are to adapt and thus improve their 
competitiveness. This must be accompanied by an analysis and by the means to 
understand the situation of enterprises, including the very smallest, in the face 
of these changes. It will thus be possible regularly to adjust policies to help 
them at both Community and national level, thereby maintaining the 
confidence of these enterprises. 
On the basis of annual reports drawn up by this network, it will be possible to 
conduct a regular debate with representatives of enterprises and the 
enterprises themselves on the situation of SMEs and the means they have or 
need to adapt. 
This innovative scheme, which is a follow-up to Decision 91/319/EEC, has just 
been launched, and the debate generated by it will provide a consolidated 
basis for the development of enterprise policy. 
15. In the context of improving information to businesses, the Community will 
continue to provide direct information in the form of publications and support 
for the organization of seminars or conferences, either of a general nature or 
relating to specific aspects of Community enterprise policy. 
IMPPRROVING STATITICS ON SMES 
16. The development of statistical tools will continue to be part and parcel of 
most of the planned measures. 
The aim will be, among other things, to make the market more transparent 
through a fuller understanding of the parameters defining the structure, 
operations and performance of enterprises, and particularly small and 
medium-sized ones. 
The work will also endeavour to provide a more accurate picture of the range 
of products both in services to industry and in related areas. 
An effort will be made to improve the quality of statistics on individual 
businesses through greater synergy between public and private registers. 
Lastly, administrations will be encouraged to make their files available for 
statistical processing, in order to alleviate some of the burden on businesses. 
-22 
EVALUATION OF EXISTING POLICY 
17. As regards programmes under way, continuous internal assessment, and 
occasionally external assessment, should continue to keep objectives in line 
with changing situations and the relative effectiveness of the resources in play. 
We must also continue to carry out, or have carried out, accompanying studies 
to identify and take account of the priority needs of SMEs so that they can take 
advantage of Community policies and the new dimension of the market. 
III. CONCLUSION 
The enterprise dimension now has a sound Community basis, thereby justified 
by the need to ensure the continuity of the policy to assist business, in 
particular SMEs. This is all the more important since business is a fundamental 
element of European society. 
Given this situation, the Community must work to make economic support 
measures more convergent and devise appropriate lines of action and 
corresponding measures at Community level. 
This policy must rest on active partnership between the different parties 
involved: bodies representing the business interests concerned, Member States 
and Community institutions. Such synergy is essential if the Europeanization 
and internationalization process is to be given its full force and effectiveness. 
Thus, an environment conducive to the strategic development of enterprises 
will help to boost positive developments in European competitiveness and 
support efforts to achieve growth. 
-23-
PROPOSALS FOR DECISIONS 
24 
PROPOSAL FOR A 
COUNCIL DECISION 
on a multiannual programme (1993-96) of Community measures to intensify 
the priority areas of policy for enterprise, in particular SMEs, in the 
Community 
(.../.../EEC) 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic Community, 
and in particular Article 235 thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Parliament, 
Having regard to the opinion of the Economic and Social Committee,-* 
1. Whereas on 28 July 1989 the Council adopted Decision 89/490/EEC 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, as revised by Council Decision 91/319/EEC 
ofl8Junel991;5 
1 OJNoC of ,p. . 
2 OJNoC of , p. . 
3 OJNoC of , p. . 
4 OJ No L 239, 16.8.1989, p. 33-
5 OJNoL175, 4.7.1991, p. 32. 
25-
2. Whereas in its resolution of 17 June 1992 on Community action to support 
enterprises, in particular small and medium-sized enterprises, including craft 
industry enterprises, the Council confirmed its undertaking to support the 
consolidation of the action taken to help enterprises; 
3. Whereas the evolution of the economic situation calls for an initiative to 
relaunch growth, to whose success SMEs have an essential contribution to 
make; 
4. Whereas this situation involves proposing the adoption of a programme of 
Community measures to assist SMEs which takes full account of this new 
priority; 
5. Whereas the Commission has put before the Council a communication on 
enterprise policy for the Community, entitled "The enterprise dimension 
essential to Community growth";' 
6. Whereas this Decision applies to all forms of enterprise, in particular small 
and medium-sized enterprises, including those in commerce and the 
distributive trades and craft enterprises, cooperatives, mutual societies, 
associations and foundations; 
7. Whereas this policy involves, in particular, the intensification and wider 
distribution of information for enterprises, the stimulation of cooperation and 
partnership between enterprises, the improvement of the administrative and 
legal environment of enterprises and the promotion of Community 
instruments to assist enterprises; 
8. Whereas, however, many measures to assist enterprises are carried out at 
Member State level and Community measures will have to complement these; 
6 OJ No C 178, 15.7.1992, p. 8. 
7 yet to be published on the OJ 
26 
9. Whereas it is therefore necessary to adopt immediately a programme for a 
four-year period and to endow it with sufficient resources to attain its 
objectives; 
10. Whereas, the Treaty does not provide, for the adoption of this Decision, 
powers other than those of Article 235, 
HAS DECIDED AS FOLLOWS: 
Article 1 
A programme to intensify the priority measures for enterprise policy, in 
particular for small and medium-sized enterprises (SMEs), is hereby adopted 
for a period of four years from 1 January 1993. 
Article 2 
The programme referred to in Article 1 is intended to intensify growth-
oriented priority measures for enterprise policy. 
The principal objectives are as follows: 
A. to develop the Euro Info Centres to facilitate access by enterprises to 
Community information 
B. to develop the partner-search networks BRE and BC-NET 
C. to step up activities to put businessmen in direct contact with one another 
under the EUROPARTENARIAT and INTERPRISE programmes and 
promoting cross-border SUBCONTRACTING 
27 
D. to improve the administrative and legal environment of enterprises 
E. to promote Community instruments 
Article 3 
1. The Commission shall implement the measures necessary for the 
achievement of the objectives laid down in Article 2. 
2. The procedure laid down in Article 4 shall be followed for adopting 
measures relating to: 
the adoption, experimental implementation or extension of any project 
devised for application of this Decision, 
the content and timetable of and financial assistance for measures and calls 
for proposals, 
the periodical evaluation of the results of each project in accordance with 
the timetables laid down. 
3. The committee referred to in Article 4 may examine other measures 
provided for by the programme. 
Article 4 
The Commission shall be assisted by a committee composed of the 
representatives of the Member States and chaired by a representative of the 
Commission. 
-28-
The representative of the Commission shall submit to the committee a draft of 
the measures to be taken. The committee shall deliver its opinion on the draft 
within a time-limit which the chairman may lay down according to the urgency 
of the matter. The opinion shall be delivered by the majority laid down in 
Article 148(2) of the Treaty in the case of decisions which the Council is 
required to adopt on a proposal from the Commission. The votes of the 
representatives of the Member States within the committee shall be weighted in 
the manner set out in that Article. The chairman shall not vote. 
The Commission shall adopt measures which shall apply immediately. 
However, if these measures are not in accordance with the opinion of the 
committee, they shall be communicated by the Commission to the Council 
forthwith. In that event the Commission shall defer application of the measures 
which it has decided for a period of two months from the date of 
communication. 
The Council, acting by a qualified majority, may take a different decision 
within the time-limit referred to in the previous paragraph. 
Article 5 
The Commission shall present an evaluation report on the implementation of 
this Decision to the European Parliament, the Council and the Economic and 
Social Committee at the latest by mid-1996. 
Article 6 
The amount of the appropriations allocated annually to the measures provided 
for by this Decision shall be determined under the annual budgetary 
procedure. 
Article 7 
This Decision replaces Council Decision 89/490/EEC, as revised by 
Decision 91/319/EEC. 
Done at Brussels, 
For the Council 
29-
PROPOSALFORA 
COUNCIL DECISION 
on a multiannual programme (1994-97) of Community measures to ensure the 
continuity of policy for enterprise, in particular SMEs, in the Community 
(.../.../EEC) 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic Community, 
and in particular Article 235 thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Parliament, 
Having regard to the opinion of the Economic and Social Committee,^ 
1. Whereas on 28 July 1989 the Council adopted Decision 89/490/EEC 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, as revised by Council Decision 91/319/EEC 
ofl8Junel991;5 
1 OJNoC of ,p. . 
2 OJNoC of ,p. . 
3 OJNoC of , p. . 
4 OJ No L 239, 16.8.1989, p. 33-
5 OJNoL175, 4.7.1991, p. 32. 
30-
2. Whereas in its resolution of 17 June 1992 on Community action to support 
enterprises, in particular small and medium-sized enterprises, including craft 
industry enterprises, the Council confirmed its undertaking to support the 
consolidation of the action taken to help enterprises; 
3. Whereas the Council recommended in that resolution that the Commission 
should press ahead, having regard to the principle of subsidiarity, with the 
action necessary to create an environment favourable to the competitiveness of 
enterprises, in particular SMEs, and to back up their integration into the single 
market after 1992; 
4. Whereas the Council also requested the Commission to submit before the 
end of 1992, in the light of the evaluations made, any proposals it deems 
necessary to ensure continuity of the policy towards enterprises; 
5. Whereas independent experts have carried out, pursuant to Article 3 of 
Council Decision 91/319/EEC, an evaluation of the results achieved from all 
aspects of the existing programme; whereas the Commission has submitted the 
report, together with its comments, to Parliament and the Council/ 
8. Whereas the report confirms the appositeness of the enterprise policy the 
Community has carried out thus far, but makes proposals concerning the 
direction of certain measures; 
7. Whereas the Commission has put before the Council a communication on 
enterprise policy for the Community, entitled "The enterprise dimension 
essential to Community growth";8 
8. Whereas this Decision applies to all forms of enterprise, in particular small 
and medium-sized enterprises, including those in commerce and the 
distributive trades and craft enterprises, cooperatives, mutual societies, non­
profit associations and foundations; 
6 OJ No C 178, 15.7.1992, p. 8. 
7 SEC(92) 1999 of 11 november 1992 
8 yet to be published in the OJ 
-31-
9. Whereas small and medium-sized enterprises play an important role in 
economic activity in general and in regional development, and a fundamental 
role as regards dynamism, productivity, adaptability and innovation; 
10. Whereas the development of a Community enterprise policy based on real 
competition assumes particular importance as regards making the Community 
economy more competitive and as regards employment growth, economic and 
social cohesion in the Community and the continuation of the widening of the 
market after 1993; 
11. Whereas, however, many measures to assist enterprises are carried out at 
Member State level and Community measures will have to complement these; 
12. Whereas it is therefore necessary to adopt a new programme for a four-
year period and to endow it with sufficient resources to attain its objectives; 
13- Whereas, the Treaty does not provide, for the adoption of this Decision, 
powers other than those of Article 235, 
HAS DECIDED AS FOLLOWS: 
Article 1 
A programme to ensure the continuity of an enterprise policy, in particular for 
small and medium-sized enterprises (SMEs), is hereby adopted for a period of 
four years from 1 January 1994. 
-32-
Article 2 
The programme referred to in Article 1 has the following objectives: 
to encourage the adjustment to structural change of sectors under 
development such as craft industry, the distributive sector, cooperatives, 
mutual societies, non-profit associations and foundations; 
to encourage an improved financial environment for enterprises; 
to promote better observation of the economic development of enterprises 
as part of the dynamic of effective implementation of the internal market. 
Articled 
1. The Commission shall implement the measures necessary to achieve the 
objectives laid down in Article 2. 
2. The procedure laid down in Article 4 shall be followed for adopting 
measures relating to: 
the adoption, experimental implementation or extension of any project 
devised for application of this Decision, 
the content and timetable of and financial assistance for measures and calls 
for proposals, 
-«: the periodical evaluation of the results of each project in accordance with 
the timetables laid down. 
3- The committee referred to in Article 4 may examine other measures 
provided for by the programme. 
33-
Article 4 
The Commission shall be assisted by a committee composed of the 
representatives of the Member States and chaired by a representative of the 
Commission. 
The representative of the Commission shall submit to the committee a draft of 
the measures to be taken. The committee shall deliver its opinion on the draft 
within a time-limit which the chairman may lay down according to the urgency 
of the matter. The opinion shall be delivered by the majority laid down in 
Article 148(2) of the Treaty in the case of decisions which the Council is 
required to adopt on a proposal from the Commission. The votes of the 
representatives of the Member States within the committee shall be weighted in 
the manner set out in that Article. The chairman shall not vote. 
The Commission shall adopt measures which shall apply immediately. 
However, if these measures are not in accordance with the opinion of the 
committee, they shall be communicated by the Commission to the Council 
forthwith. In that event the Commission shall defer application of the measures 
which it has decided for a period of two months from the date of 
communication. 
The Council, acting by a qualified majority, may take a different decision 
within the time-limit referred to in the previous paragraph. 
Article 5 
The Commission shall present an evaluation report on the implementation of 
this Decision to the European Parliament, the Council and the Economic and 
Social Committee at the latest by mid-1997. 
It shall also present to the Council, the European Parliament and the Economic 
and Social Committee a report on coordination between the initiatives taken in 
pursuance of this Decision and the various programmes manifestly in the 
interests of SMEs and craft industries but not covered by this Decision. 
-34-
Article 6 
The amount of the appropriations allocated annually to the measures provided 
for by this Decision shall be determined under the annual budgetary 
procedure. 
Article 7 
This Decision replaces Council Decision 89/490/EEC, as revised by 
Decision 91/319/EEC. 
Done at Brussels, 
For the Council 
35-
FINANCIAL STATEMENTS 

FINANCIAL STATEMENT 
1. TITLE OF OPERATION 
"The enterprise dimension essential to Community growth". 
To intensify the priority measures for enterprise policy so as to stimulate 
growth in the Community. 
2. BUDGET HEADING INVOLVED 
Article B5-320. 
3. LEGAL BASIS 
Council Decision of 28 July 1989 (OJ No L 239, p. 33) 
Council resolution of 14 November 1989 (OJ No C 297, p. 2) 
Council Decision of 18 June 1991 (OJ No L 175, p. 32) 
Council resolution of 17 June 1992 (OJ No C 178, p. 8). 
4. DESCRIPTION OF OPERATION 
The proposal for a Council Decision to which this financial statement 
relates follows on from the Council resolution of 17 June 1992, in which the 
Council recommended that the Commission should press ahead, in accordance 
with the principle of subsidiarity, with developing the action necessary to 
create an environment favourable to the competitiveness of enterprises, in 
particular SMEs, and to back up their integration into the single market 
after 1992. In framing this proposal, the Commission has drawn the 
necessary conclusions from the first programme, covering the period 1990-93, 
and from an evaluation report which it has transmitted to Parliament and the 
Council. The report confirms the overall appropriateness of the enterprise 
policy which the Community has carried out so far but makes proposals 
concerning the direction of certain measures. 
In Edinburgh on 11-12 December 1992, the European Council, endorsing the 
guidelines put forward by the Commission, agreed action on a wide scale to 
support growth in the Community. 
The Declaration on Promoting Economic Recovery in Europe* states that: 
"Recognizing the importance of SMEs for creating employment and stimulating 
growth, the European Council called upon the Council and the Commission to 
ensure that the burdens from Community legislation on small and medium-sized 
enterprises are reduced (including through the use of simplified schemes and 
exemption limits in the field of indirect taxation) and that full 
information about Community support is provided to SMEs. It asked the 
Commission to accelerate the actions in favour of SMEs which have proven 
their worth at the Community level". 
European Council, Edinburgh, 11-12 December 1992, Conclusions of the 
Presidency, Annex 4 to Part A, point 8. 
- 2 -
The operation is therefore a continuation of the measures developed under 
the first programme, to which the necessary adjustments and improvements 
have been made in order to comply with the acceleration of this part of 
enterprise policy for the period 1993-96. 
4.1 Specific objectives of operation 
To develop the Euro-Info-Centres to so as facilitate access by 
enterprises to Community information; 
To develop the partner-search networks by expanding the activities of 
the Business Cooperation Centre (BRE) in the case of non-confidential 
cooperation, and of the Business Cooperation Network (BC-Net) in the 
case of confidential cooperation; 
To step up activities to put businessmen in direct contact with one 
another under the Europartenariat, Interprise and Promotion of 
Cross-Border Subcontracting programmes; 
To improve the administrative and legal environment of enterprises;2 
To promote Community instruments and, in this context, to strengthen 
the technological potential of SMEs. 
4.2 Duration 
1993-96. 
4.3 Target population 
In theory, the above-mentioned measures could affect all SMEs in the 
Community. In practice, however, the number of SMEs concerned by 
cross-border measures will necessarily be smaller, reflecting the categories 
of enterprise. 
The measures are also targeted at all trade associations and other 
intermediaries (for example, chambers of commerce and craft) and the 
wholesale and retail trades. As many of the measures are implemented via 
networks of intermediaries, the number of enterprises actually affected 
cannot be precisely quantified. 
5. CLASSIFICATION OF EXPENDITURE OR REVENUE 
Non-compulsory expenditure; differentiated appropriations. 
Includes consultation of Member States and trade associations (ex-item 
B5-324). 
- 3 -
6. TYPE OF EXPENDITURE OR REVENUE 
Grants for joint financing with other sources in the public and/or 
private sector. 
Partial reimbursement through re-use of revenue for certain measures 
(e.g. in the case of BC-Net, charging from 1 January 1993 for the use 
of the network by non-Community industrialized countries and by 
advisers throughout the Community). 
7. FINANCIAL IMPACT 
7.1 Method of calculating total cost of operation 
Experience in current and previous financial years shows that the demands on 
the policy for S ME s have risen steeply. For a lack of appropriations, the 
Commission has had to reject many of the projects submitted in response to 
various calls for proposals. Although in certain cases the Community 
contribution can be modulated according to the arrangements for implementing 
the measure in order to finance as many projects as possible, the fact 
remains that the Commission may well no longer be able to get essential 
schemes off the ground if its financial contribution is no longer sufficient 
to attract investments by its partners (businesses or intermediaries); the 
Commission also has to aim to achieve a critical financial mass in the areas 
concerned in order to avoid spreading funds too thinly. 
This situation is reflected in all the calls for tender organized on the 
basis of this budget heading. Consequently, the rates of commitment and 
utilization under this heading have always been extremely high. 
The volume of funding requested has to be seen in the context of the merger 
of headings B5-320, B5-322 and B5-324 which the Commission has proposed in 
the preliminary draft budget for 1993. Until such time as the 1993 budget 
is definitively adopted, the figures for that year will remain purely 
indicative. 
Single heading, indicative amounts 
PRIORITY AREAS FOR INTENSIFICATION 
DEVELOPMENT OF EURO-INFO-CENTRES 
to facilitate access to Community information 
DEVELOPMENT OF PARTNER-SEARCH NETWORKS 
BRE and BC-Net 
STEPPINO UP DIRECT CONTACTS BETWEEN BUSINESSMEN 
UNDER THE EUROPARTENARIAT, 
INTERPRISE AND PROMOTION OF CROSS-BORDER 
SUBCONTRACTING PROGRAMMES 
IMPROVEMENT OF THE ADMINISTRATIVE AND LEGAL 
ENVIRONMENT OF ENTERPRISES1 
PROMOTION OF COMMUNITY INSTRUMENTS 
• STRENGTHENING THE TECHNOLOGICAL POTENTIAL OF SMEs 1993 
7.00 
0.80 
(.70 
0.90 
2.90 
18.30 1994 1995 
8.00 
0.90 
7.50 
1.20 
2.50 
20.10 9.00 
1.00 
3.10 1996 
22.30 70ÏAL 
1993/1996 
10.00 I I 
1.30 I 
8.00 
1.50 
3.50 
24.30 34.0C 
4.0G 
30.00 ! 
! 
5.00 | 
I 
i 
I 
l i > 
12.CO ! 
85.00 
1 Includes consultation of Member States and trade associations (ex-item B5-324). 
- 5 -
1.3 Indicative schedule of commitment appropriations (without mini-budget) 
Preliminary 
draft budget 
for 1993 
18.30 Indicative planning 
1994 
20.10 1995 
22.30 1996 
24.30 1993-96 
85 000 
• • • 
8. ANTI-FRAUD MEASURES PLANNED IN THE PROPOSAL FOR THE OPERATION 
Measures to be funded and services or studies performed are checked by the 
Commission before payment, with due regard to contractual obligations and 
the principles of economy and sound financial or general management. 
Anti-fraud measures (checks, reporting, etc.) are included in all agreements 
or contracts between the Commission and recipients of funds. 
9. ELEMENTS OF COST-EFFECTIVENESS ANALYSIS 
9.1 Assessment and analysis of objectives 
Quantification 
The reader is referred to the table set out in point 7.2, which gives the 
figures for the different types of measure (under both the old programme and 
the proposed new one). 
speeding up the adjustment of SMEs to structural change (information 
for businesses, promotion, advertising, grants): 50% 
cooperation and partnership: 19.33% 
administrative, legal and financial environment which will benefit 
enterprises: 3.72% 
evaluation and development of enterprise policy: 6.78%. 
- 6 -
9.2 Grounds for the operation 
As far as subsidiarity is concerned, all the action taken here by the 
Community is such that it produces decisive added value, in particular as a 
result of the size of networks and the scale of the measures developed, the 
impartiality of decisions taken at the centre and the attention devoted to 
regional balance. 
This emerges clearly from the independent evaluation report and is stressed 
in the explanatory memorandum. 
Although Member States can themselves take a large proportion of the 
measures to assist enterprises, it is for the Community to take the 
cross-border measures, set up networks extending across the Community or 
beyond and organize schemes for the exchange of experience or know-how 
between financial institutions, chambers of commerce and craft and other 
intermediaries, as well as actual businesses looking for cross-border 
cooperation opportunities. Making such action a national preserve would not 
only be impracticable and less effective, but would also create distortions 
of competition since the level of support provided by each Member State 
would vary widely (a number of host structures have, for example, decided to 
close down their Euro-Info-Centre on the grounds that the burden on their 
finances was too heavy in comparison with the Commission's contribution). 
i 
The Commission ensures that all intermediaries and all businesses can 
benefit from Community measures on an equal footing and in fair and 
transparent conditions (as witnessed by the large number of calls for 
proposals published in the Official Journal). It also sees to it that the 
added value deriving from the network effect and the know-how built up at 
Community level are redistributed and made available to all interested 
parties, including in the Community's less-favoured or outlying regions. 
9.2.1 Cost 
The Council decided on 18 June 1991 to revise the programme, adding an extra 
budget of ECU 25 million to the ECU 110 million already deemed necessary for 
the period 1990-93. 
The European Council, meeting in Edinburgh on 11-12 December 1992, "asked 
the Commission to accelerate the actions in favour of SMEs which have proven 
their worth at the Community level". 
Consequently, the strengthening of the priority measures for enterprise 
policy so as to stimulate growth in the Community is proposed for the period 
1993-96 and is based on the experience acquired during the previous 
programme. These assessment aspects are also raised in the evaluation 
report and in the Commission's comments on it. 
- 7 -
The following details can be given on the various measures (the figures for 
each old and new measure are given in the table in point 7.2): 
- information for businesses: 
1. development of the EICs to facilitate access to Community 
information (stimulation, training, grants, databases); 
- development of partner-search networks: 
BRE and BC-Net: development of both networks within the Community 
and beyond; for BC-Net, implementation of a policy of specialization 
(particularly in innovation and technical cooperation) and a drive 
to raise the calibre of advisers (training) ahead of the generalized 
introduction of charges on 1 January 1993; 
- stepping up direct contacts between businessmen under the 
Europartenariat, Interprise and Promotion of Cross-Border 
Subcontracting programmes: 
1. partnership: intensification of the efforts to put businesses in 
direct contact with one another through Europartenariat, Interprise 
and similar international events; 
2. subcontracting: the programme, which was updated in the Commission's 
communication to the Council of January 1992, is aimed in particular 
at ensuring a business approach to the market and covers measures on 
communication between businesses, certification and sectoral 
measures (electronics); 
- improvement of the administrative and legal environment of enterprises: 
administrative simplification and trade associations. 
Consultation of trade associations and support for stimulation measures 
and the dissemination of their information among the 8 million 
businesses they represent; 
- promotion of Community instruments and strengthening the technological 
potential of SMEs. 
9.2.2 Spin-off effects 
Action under the above-(mentioned instruments and measures relates in 
particular both to improving the business environment and the supply of 
business information and to the search for and bringing together of partners 
with the specific aim of developing cross-border cooperation agreements. 
This is vital to the effective functioning of the single market, with regard 
to which enterprises must base their development strategy on goals that 
extend beyond the confines of their home country. 
- 8 -
The main spin-off effect will thus be to make enterprises more competitive, 
in particular through: 
greater opportunities for businesses to Europeanize and 
internationalize their operations; 
- development of the network effect; 
- lower costs, particularly for pilot schemes; 
- positive effects on growth and the economy in general; 
- positive effects on employment and the entire package of measures 
enabling SMEs to grasp the new opportunities offered by completion of 
the internal market and relations with third countries. 
9.2.3 Multiplier effects 
The planned measures graft a European dimension onto existing services 
provided by national partners. Planned expenditure from the Community 
budget will consequently generate considerable investment by public and 
private partners, thus exerting a significant catalytic effect and bringing 
about lasting structural change. 
For example, Euro Info Centres are set up in conjunction with host 
structures such as chambers of commerce offering information and advisory 
services, to which the EICs add a European dimension. 
Similarly, Europartenariat events are specifically aimed at developing 
cooperation between businesses in Objective 1, 2 and 5(b) regions and 
enterprises in other regions of the Community. Given that the Member State 
concerned contributes one third of the budget for each event and the 
participating firms meet their own travel and subsistence expenses, the 
multiplier effect can be estimated at 300%. 
Although it is desirable for the Commission to aim for a large multiplier 
effect, this should not be the only deciding factor in the choice of its 
action. The limitations of such an approach are amply demonstrated by the 
Commission's low level of financial support for the EIC network: a number of 
host structures have decided to close down their Euro-Info-Centre on the 
grounds that their share of the costs was too large and the Commission's too 
small. 
_ 9 -
9.3 Evaluation 
- Performance indicators selected: 
Evaluation reports based on quantitative criteria (e.g. number of queries 
answered, number of cooperation profiles generated) and matching the 
instrument to the needs (e.g. level of detail of nomenclatures, quality of 
documentation, targeting). 
Results will be evaluated by regular monitoring based on in-house checks and 
expert assessments by outside specialists where necessary. 
The cost of many of the measures taken is very moderate in relation to the 
market, as noted at certain points in the evaluation report. 
Development of measures targeted to the different markets for business 
information, cooperation and support. 
- Details and frequency of planned evaluation: 
Annual evaluation on an institutional basis (annual report provided for by 
Article 6 of the proposed Decision). This proposal is based on the 
evaluation report submitted by outside experts and transmitted by the 
Commission to the European Parliament and the Council in accordance with 
Article 3 of the Council Decision of 18 June 1991. 

FINANCIAL STATEMENT 
1. TITLE OF OPERATION 
"The enterprise dimension - essential to Community growth". 
A programme of measures designed to ensure the continuity of policy for 
enterprise, and in particular SMEs, in the Community. 
2. BUDGET HEADING 
Article B5-320. 
3. LEGAL BASIS 
Council Decision of 28 July 1989 (OJ No L 239, 16.8.1989, p. 33) 
Council resolution of 14 November 1989 (OJ No C 297, 25.11.1989, p. 2) 
Council Decision of 18 June 1991 (OJ No L 175, 4.7.1991, p. 32) 
Council resolution of 17 June 1992 (OJ No C 178, 15.7.1992, p. 8). 
4. DESCRIPTION OF OPERATION 
The proposal for a Council Decision to which this financial statement 
relates follows on from the Council resolution of 17 June 1992, in which the 
Council recommended that the Commission should press ahead, in accordance 
with the principle of subsidiarity, with developing the measures necessary 
to create an environment favourable to the competitiveness of enterprises, 
in particular SMEs, and to support their integration into the single market 
after 1992. In framing this proposal, the Commission has drawn the 
necessary conclusions from the first programme, covering the period 1990-93, 
and from an evaluation report which it has transmitted to Parliament and the 
Council. The report confirms the overall appropriateness of the enterprise 
policy which the Community has carried out so far but makes proposals 
concerning the direction of certain measures. 
This measure therefore incorporates most of those developed under the first 
programme, to which the necessary adjustments and improvements have been 
made in order to ensure the continuity of policy for enterprise, and in 
particular SMEs, in the Community. 
4.1 Specific objectives of operation 
to improve the business environment, remove administrative, legal, tax 
and financial barriers, improve the 
productivity, competitiveness and adaptability of businesses, including 
distributive enterprises and SMEs, and facilitate the transfer of 
businesses; 
- 2 -
- to help SMEs adjust to structural change in the wake of completion of 
the internal market, for example through measures aimed, in particular, 
at growth sectors. These comprise measures relating to small firms and 
the craft industry, distributive enterprises, cooperatives, mutual 
societies and non-profit-making associations and foundations; 
- to promote a more favourable financial environment; 
- to monitor and evaluate enterprise policy, in particular through the 
European observatory for SMEs, which links together bodies specializing 
in research on SMEs into a network with access to statistical 
background, studies, publications and information given at seminars and 
conferences; 
- to carry out, before the end of the programme, an external evaluation 
additional to the ongoing internal evaluation which forms part of the 
programme. 
4.2 Duration 
1994-97. 
4.3 Target population 
In theory, the above-mentioned measures could affect all SMEs in the 
Community. In practice, however, the number of SMEs concerned by 
cross-border measures will necessarily be smaller, reflecting the categories 
of enterprises described in the explanatory memorandum. 
The measures are also targeted at all those representing intermediaries 
analogous to chambers of craft and those representing the wholesale and 
retail trades, cooperatives, mutual societies and non-profit-making 
associations and foundations. As many of the measures are implemented via 
networks of intermediaries, the number of enterprises actually affected 
cannot be precisely quantified. 
5. CLASSIFICATION OF EXPENDITURE OR REVENUE 
Non-compulsory expenditure; differentiated appropriations. 
- 3 -
6. TYPE OF EXPENDITURE OR REVENUE 
- Grants for joint financing with other sources in the public and/or 
private sector. 
- The funding of symposia, seminars and the like is to be granted up to a 
certain proportion of costs, determined in the light of the organizers' 
needs and the importance of the event for the sector in question 
(attainment of the above-mentioned objectives). 
- Preparatory or feasibility studies, evaluation reports, consultants. 
7. FINANCIAL IMPACT 
7.1 Method of calculating total cost of the operation 
Experience in current and previous financial years shows that the demands on 
the policy for SMEs have risen steeply. The Commission has had to reject 
many of the projects submitted in response to various calls for proposals. 
Although some of the projects were eliminated because they did not develop 
the cross-border dimension sufficiently, a large number of highly promising 
projects had to be rejected for want of funds. Although in certain cases 
the Community contribution can be reduced according to the arrangements for 
implementing the measure in order to finance as many projects as possible, 
the fact remains that the Commission may well no longer be able to get 
essential schemes off the ground if its financial contribution is no longer 
sufficient to attract investments by its partners (businesses or 
intermediaries). 
The volume of funding requested has to be seen in the context of the merger 
of headings B5-320, B5-322 and B5-324 which the Commission has proposed in 
the preliminary draft budget for 1993. Until such time as the 1993 budget 
is definitively adopted, the figures for that year will remain purely 
indicative. 
7.2 4 • 
1 •• - - ' 
| Measures designed to ensure the continuity of policy 
| for enterprises 1994-97 
|A. MEASURES SPECIFICALLY TARGETED AT GROWTH AREAS: 
| - craft industry and small firms 
| - distributive enterprises 
| • cooperatives, mutual societies and 
| non-profit-making associations and foundations 
IB. PROMOTING A MORE FAVOURABLE FINANCIAL ENVIRONMENT 
|C. MONITORING AND EVALUATION OF POLICY 
| - European observatory for SMEs 
| - improving statistics on SMEs 
| - studies, publications, seminars and conferences 
| • evaluation of policy and existing schemes 1 • -
1993 
1.50 
2.00 
0.00 
1.20 
0.20 
1.60 
0.00 
6,50 1994 
1.30 
2.00 
0.20 
0.20 
1.30 
0.20 
1.50 
0.00 
6.70 ' 1995 
1.30 
2.00 
0.20 
0.20 
1.40 
0,20 
1.60 
0.00 
6,90 1996 
1.40 
2.10 
0.20 
0.20 
1,40 
0.00 
1.30 
0,50 
7.10 • 
j 
1997 
1.40 
2.10 
0.30 
0.30 
1.50 
0.30 
1.40 
0.00 
| ,,, 1 
TOTAL 
1994-1997 
5.40 
8.20 
0.90 
0.90 
5.60 
0.70 
5.80 
0.50 
... . •.-.. 
I 28.00 
1_ -
7.3 Indicative 
mini-budget) schedule - 5 -
of commitment appropriations (excluding 
Token entry 
Preliminary 
draft budget 
for 1993 
6.50 Indicative planning 
1994 
6.70 1995 
6.90 1996 1997 
7.10 !' 7-30 TOTAL 
28.00 
8. ANTI-FRAUD MEASURES PLANNED IN THE PROPOSAL FOR THE OPERATION 
Measures to be funded and services or studies performed are checked by the 
Commission before payment, with due regard to contractual obligations and 
the principles of economy and sound financial or general management. 
Anti-fraud measures (checks, reporting, etc.) are included in all agreements 
or contracts between the Commission and recipients of funds. 
9. COST-EFFECTIVENESS ANALYSIS 
9.1 Assessment and analysis of objectives 
Quantification 
The reader is referred to the table set out in point 7.2, which gives the 
figures for the different types of measure (under both the old programme and 
the proposed new one). 
For guidance, some of the appropriations for 1992 were broken down as 
follows: 
- promoting a financial environment which will benefit enterprises; trade 
associations: 1.9% 
- evaluation and development of enterprise policy: 6.78%. 
In addition to the above, there are the developments in the extensive fields 
of the craft industry and small enterprises [5 million firms] and the 
distributive trades [4 million firms] which are factors for the continuity 
of policy for enterprise. 
- 6 -
9.2 Grounds for the operation 
As far as subsidiarity is concerned, all the action taken here by the 
Community is such that it produces decisive added value, in particular as a 
result of the size of networks and the scale of the measures developed, the 
impartiality of decisions taken at the centre and the attention devoted to 
regional balance. 
This emerges clearly from the independent evaluation report. 
Although Member States can themselves take a large proportion of the 
measures to assist enterprises, it is for the Community to take the 
cross-border measures, set up networks extending across the Community or 
beyond and organize schemes for the exchange of experience or know-how 
between financial institutions, chambers of commerce and craft and other 
intermediaries, as well as actual businesses looking for cross-border 
cooperation opportunities. Making such action a national preserve would not 
only be impracticable and less effective, but would also create distortions 
of competition since the level of support provided by each Member State 
would vary widely. 
The Commission ensures that all intermediaries and all businesses can 
benefit from Community measures on an equal footing and in fair and 
transparent conditions (as witnessed by the large number of calls for 
proposals published in the Official Journal). It also sees to it that the 
added value deriving from the network effect and the know-how built up at 
Community level are redistributed and made available to all interested 
parties, including in the Community's less-favoured or outlying regions. 
9.2.1 Cost 
Acting on a proposal from the Commission, the Council adopted on 
28 July 1989 the multiannual programme to support the development of SMEs. 
The Council decided on 18 June 1991 to revise the programme, adding an extra 
budget of ECU 25 million to the ECU 110 million already deemed necessary for 
the period 1990-93. 
The new programme designed to ensure the continuity of policy for 
enterprise, and in particular SMEs, in the Community is proposed for the 
period 1994-97 and benefits from the experience gained during the previous 
programme. These assessments are also mentioned in the evaluation report 
and covered by the Commission's comments thereon. 
- 7 -
The following details can be given on the various measures (the figures to 
each old and new measure are given in the table in point 7.2): 
- measures specifically targeted at growth areas: 
1. craft industry and small firms: 
- support for the craft industry - implementation of measures in 
accordance with the Council guidelines of 18 June 1991; 
2. distributive enterprises: 
- Europeanization of distribution structures and promotion of the> 
introduction of new technologies which will benefit SMEs and 
distributive enterprises; 
3. cooperatives, mutual societies and non-profit-making associations 
and foundations; 
- promoting a more favourable financial environment; 
- monitoring and evaluation of policy: 
1. European observatory for SMEs based on the networking of bodies 
specializing in the SME field and supported by statistical tools 
developed by the Statistical Office of the European Communities to 
supply the quantitative and qualitative data which firms need. The 
network will draw on a basis composed of studies, publications, 
seminars and conferences; 
2. evaluation of policy and existing schemes. 
9.2.2 Spin-off effects 
The main spin-off effect, in addition to continuity of policy, will be to 
make enterprises more competitive, in particular through: 
- greater opportunities for businesses to Europeanize and 
internationalize their operations; 
development of the network effect; 
lower costs, particularly for pilot schemes; 
- positive effects on growth and the economy in general; 
positive effects on employment and the entire package of measures 
enabling SMEs to grasp the new opportunities offered by completion of 
the internal market and relations with non-member countries. 
- 8 -
9.2.3 Multiplier effects 
The planned measures graft a European dimension onto existing services 
provided by national partners. Planned expenditure from the Community 
budget will consequently generate considerable investment by public and 
private partners, thus exerting a significant catalytic effect and bringing 
about lasting structural change. 
As far as measures relating to the distributive trades are concerned, 
experience in 1991 has shown that a contribution of some 25% by the 
Commission suffices to prompt the sector to put up the remainder of the 
necessary finance. The multiplier effect can thus easily be as high as 
400%. 
Although it is desirable for the Commission to aim for a large multiplier 
effect, this should not be the only deciding factor in the choice of its 
action. The limitations of such an approach are amply demonstrated by the 
Commission's low level of financial support for the EIC network: a number 
of host structures have decided to close down their Euro-Info-Centre on the 
grounds that their share of the costs was too large and the Commission's 
too small. 
9.3 Evaluation 
- Performance indicators selected: 
Results will be evaluated by regular monitoring based on in-house checks 
and expert assessments by outside specialists where necessary. 
The cost of many of the measures taken is very moderate in relation to the 
market, as noted at certain points in the evaluation report. 
- Details and frequency of planned evaluation: 
Annual evaluation on an institutional basis (annual report provided for by 
Article 6 of the proposed Decision). This proposal is based on the 
evaluation report submitted by outside experts and transmitted by the 
Commission to the European Parliament and the Council in accordance with 
Article 3 of the Council Decision of 18 June 1991. 

ISSN 0254-1475 
COM (92) 470 final 
DOCUMENTS 
EN 10 
Catalogue number : CB-CO-92-585-EN-C 
ISBN 92-77-50844-2 
Office for Official Publications of the European Communities 
L-2985 Luxembourg