Report from the Commission to the Council, the European Parliament, the Economic and Social Committee and the Committee of the Regions on concerted action with the Member States in the field of enterprise policy
Date: 1999-11-09
Institutions: European Commission
Subjects: EU action, EU policy, aid to undertakings, business policy, small and medium-sized enterprises

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 09.11.1999
COM(1999) 569 final

REPORT FROM THE COMMISSION
TO THE COUNCIL, THE EUROPEAN PARLIAMENT,
THE ECONOMIC AND SOCIAL COMMITTEE
AND THE COMMITTEE OF THE REGIONS

ON CONCERTED ACTION WITH THE MEMBER STATES IN THE FIELD OF
ENTERPRISE POLICY

REPORT ON CONCERTED ACTION WITH THE MEMBER STATES
IN THE FIELD OF ENTERPRISE POLICY

SUMMARY
............................................................................................................ 4
1. THE NATURE OF CONCERTED ACTION ........................................................... 5
Introduction ................................................................................................ 5
The Framework for Concerted Actions........................................................ 6
The Instruments of Concerted Action.......................................................... 7
The Nature of the Achievements of Concerted Action ............................... 10

1.1.
1.2.
1.3.
1.4.

2. CONCERTED ACTION 1

:

IMPROVING THE

BUSINESS

ENVIRONMENT................................................................................................... 12
Improving the Business Environment for Start-ups .................................... 12
2.1.
2.1.1. The Paris Forum on Improving the Business Environment for Start-

ups............................................................................................................ 12
2.1.2. Member State Action on the Environment for Start-ups ............................ 14
The BEST Report ..................................................................................... 17
2.2.
2.3.
The Transfer of Enterprises ....................................................................... 18
2.3.1. The Lille Forum on the Transfer of Enterprises.......................................... 18
2.3.2. Member State Action on the Transfer of Enterprises.................................. 18
General Assessment of the Results of Concerted Action 1 ......................... 20
2.4.

3. CONCERTED ACTION 2 : STIMULATING BUSINESS SUPPORT

MEASURES .......................................................................................................... 21
3.1.
Stimulating Business Support Measures for Start-ups................................ 21
3.1.1. The Madrid Forum on Support Initiatives for Start-ups ............................. 21
3.1.2. Follow-up Seminars on Support Measures for Start-ups ............................ 22
3.1.2.1. Training and Information........................................................................... 23
3.1.2.2. Finance for Start-ups................................................................................. 23
3.1.2.3. Incubators................................................................................................. 24
3.1.3. Dissemination Strategy.............................................................................. 25
3.1.4. Methodology of Best Practice ................................................................... 26
3.1.5. Member State Action on Support Measures for Start-ups.......................... 26
Support Measures for Enterprises in the Growth Phase ............................. 28
3.2.
3.2.1. The Baden Forum on Support Measures for SMEs in the Growth

Phase ........................................................................................................ 28
3.2.1.1. Training : .................................................................................................. 28
3.2.1.2. Finance ..................................................................................................... 29
3.2.1.3. Transnational Co-operation ....................................................................... 29
3.2.2. Follow-up on Support Measures for Enterprises in the Growth Phase........ 29
The Quality of Information........................................................................ 31
3.3.
Conclusions............................................................................................... 31
3.4.

4. CONCERTED ACTION 3 :

INCREASING THE VISIBILITY AND

EFFECTIVENESS OF SUPPORT SERVICES ...................................................... 33
4.1.
The Visibility and Effectiveness of Support Services.................................. 33
4.1.1. The Dublin Forum on the Visibility and Effectiveness of Support

Services. ................................................................................................... 33

4.1.2. Follow-up relating to the Visibility and Effectiveness of Support

Services. ................................................................................................... 34

4.2.

General Assessment of the Results of Concerted Actions 2 & 3. ................ 36

5. CONCLUSIONS AND FUTURE DEVELOPMENTS ........................................... 37
Summary of the Achievements of the Concerted Actions........................... 37
The Next Phase of Concerted Action......................................................... 38

5.1.
5.2.

ANNEX 1:
ANNEX 2:

PROGRAMME OF CONCERTED ACTION EVENTS..................... 41
HELPING BUSINESSES START-UP A ‘GOOD PRACTICE

GUIDE’ FOR BUSINESS SUPPORT ORGANISATIONS .................................... 42

3

REPORT ON CONCERTED ACTION WITH THE
MEMBER STATES IN THE FIELD OF ENTERPRISE
POLICY

SUMMARY

For a number of years the Member State authorities have been working with the Commission in
a programme of Concerted Actions in the field of Enterprise Policy. This Report provides an
account of the results of this work and the issues that it has raised. It draws attention to some of
the central questions relating to the Member States’ efforts to assist enterprises and explains
how concrete examples of good practice have been highlighted.

A major conclusion is that there has been a significant convergence in the Member States’
thinking on Enterprise Policy and in the practical aspects of policy implementation. The Report
thus indicates a remarkable cross-fertilisation of ideas and points to ways of further enhancing
this process.

The Concerted Actions have made use of a distinctive methodology based on identifying and
promoting the exchange of best practice.

Inspired by Article 157 of the Treaty, they have addressed central issues in Enterprise policy: the
simplification of the business environment, the provision of effective business support measures
and the visibility and take-up by enterprises of the services provided. Furthermore, they have
approached these issues from the standpoint of enterprises in different phases of
their
development: at the start-up phase, as they are growing and when they come to be transferred to
new owners.

The first section of the Report gives an account of the original conception of the Concerted
Actions, within the global approach to Enterprise policy established by the Integrated
Programme. The rationale for the course of the subsequent developments is also provided.

The detailed activities and the concrete results are described in the following three sections.

The identification of specific action for regulatory and administrative reform to make it easier
for enterprises to start-up led to the publication of
the Commission Recommendation on
Improving and Simplifying the Business Environment for Business Start-ups.

Similarly, analysis of measures to improve legislative and administrative provision for
transferring an enterprise and to assist businesses that
face this situation led to the
Communication from the Commission on the Transfer of SMEs.

In the broader area of support measures, work with the Member States has identified a range of
good practice in support of start-ups and is in the process of doing the same for growing
enterprises. It is recognised that improvements are needed, both in the coherence of service
provision and in the quality of the services offered.

Dissemination of these results is to be assisted by publications and through an electronic forum
associated with a web site that invites active discussion of the good practice that has been
identified. This is intended to stimulate a debate among the professionals that provide business
support and to create an increasingly rigorous basis for characterising best practice in the area.

4

REPORT ON CONCERTED ACTION WITH THE MEMBER STATES
IN THE FIELD OF ENTERPRISE POLICY

1.

THE NATURE OF CONCERTED ACTION

1.1.

Introduction

The widespread recognition of the significance of Small and Medium-sized Enterprises
(SMEs) for the competitiveness, growth and employment potential of the European
economy led the European Commission in 1994 to propose an Integrated Programme for
SMEs and the Craft Sector1. The aim of this Integrated Programme was to establish a
global framework for all actions for the benefit of SMEs within the European Union, with
a view to achieving closer co-ordination and partnership between all the parties involved
in SME development.

The Integrated Programme was clearly inspired by the White Paper on Growth,
Competitiveness & Employment2, which made several references to working with the
Member States in the area of SME policy and outlined the elements of an integrated
approach.

After presenting a key SME policy paper3 to the 1995 Madrid European Council, the
Commission developed a more ambitious policy for SMEs4, which elaborated on the
proposals set out in the 1994 Communication and called for an integrated approach in
which national, regional and local authorities, the social partners and the Community
institutions would each take practical action to promote SMEs and hence growth and
employment.

In proposing such an integrated approach to Enterprise policy, the Commission sought to
three previously distinct elements. These consisted of Community
bring together
Enterprise policy in the strict sense, those elements of other Community policies (such as
the Structural Funds, Research and Technological Development and Training) that had an
impact on SMEs and certain aspects of Member States’ Enterprise policy.

Reports on the first two elements are provided in the evaluation of the Multi-annual
Programme for SMEs5 and in the Report on the co-ordination of activities to assist SMEs

1

2

3

4

5

Integrated Programme in favour of SMEs and the Craft Sector, Communication from the
Commission, COM(1994)207 final of 03.06.1994.
''Growth, Competitiveness, Employment. The Challenges and Ways Forward into the 21st century”
Commission White Paper 1993.
‘’Small and Medium sized Enterprises – A dynamic source of employment, growth and
competitiveness in the European Union’’, Commission Communication of 29.11.1995, Document
SEC(95) 2087.
Integrated Programme for Small
Communication from the Commission. COM(1996)329 final of 10.07.1996.
Final Report. Evaluation of 3rd Multi-annual Programme for SMEs, COM(1999)319 final of
29.06.1999.

and Medium-sized Enterprises

and the Craft Sector,

5

and the craft sector6. It is the third element, concerted action on enterprise policy
between the Member States, that is the focus of attention here.

This Report, therefore, provides an account by the Commission of the progress that has
been made under the Concerted Actions. Member States have been consulted on this
report, particularly through the members of the Concerted Action Steering Group. They
have also been given the opportunity to make comments on earlier drafts of the document.
However, as is normally the case, the responsibility for the nature and content of the
Report rests with the Commission.

1.2.

The Framework for Concerted Actions

Concerted action is inspired by Article 157 paragraph 2 of the Treaty (ex-article130-2),
which in the context of promoting the competitiveness of the Community’s industry,
states that
‘the Member States shall consult each other in liaison with the
Commission and, where necessary, shall co-ordinate their action’. It continues: ‘the
Commission may take any useful initiative to promote such co-ordination.’

Several Council Resolutions have supported the proposed method of ‘concerted action’7.

The basic concept of this concerted action was that,
in the interests of promoting
competitiveness, the Member States, with the assistance of the Commission, would
achieve a greater effectiveness in their actions, in particular through a better targeting and
convergence of policy measures in the classic areas of Enterprise policy, namely the
improvement of the legislative and administrative environment for businesses and the
provision of support measures. This was to be achieved by a distinctive approach, based
on identifying and promoting the exchange of best practice.

The methods envisaged in this process were the organisation of large-scale fora, to
encourage contributions from a wide range of organisations and individuals with a
knowledge of the area under consideration, along with meetings of committees made up
of Member State and business representatives. Working groups from these committees
could conduct detailed work and benchmarking was suggested as a means of developing
common criteria which in turn could lead, where appropriate, to Recommendations from
the Commission.

The 1994 Integrated Programme envisaged concerted action relating to the three different
stages of a business life cycle in three broad policy areas. The policy areas, which came to
be known as Concerted Actions 1, 2 and 3 respectively, were: improving the business

6

7

‘’Report on the co-ordination of activities to assist SMEs and the craft sector ‘’ COM(1997)610
final, 25.11.1997.
Council Resolution on strengthening the competitiveness of enterprises, in particular SMEs and craft
enterprises, and developing employment of 22nd November 1993; OJ C 326, 03.12.93, p. 1.
Council Resolution on giving full scope to the dynamism and innovatory potential of SMEs,
including the craft sector and micro-enterprises, in a competitive economy of 10th October 1994, OJ
C 294 , 22.10.94, p. 4.
Council Resolution on the co-ordination of Community activities in favour of SMEs and the craft
sector of 22nd April 1996, OJ C 130, 03.05.96, p. 1.
Council Resolution on realising the full potential of SMEs, including micro-enterprises and the craft
sector, through an integrated approach to improving the business environment and stimulating
business support measures of 9th December 1996, OJ C 18, 17.01.97, p. 1.

6

environment, stimulating business support measures and increasing the profile of
support services. The life cycle stages identified were: start-up and early development,
the growth phase and the transfer of a business to the next generation.

The 1996 Integrated Programme proposed developing the existing framework through
more focused action on specific policy areas:

-
-
-
-
-
-
-
-
-

better access to finance and capital markets
administrative co-operation – particularly in the context of the Single Market
business services (including in the field of innovation)
SME actions in the field of research
access of SMEs to the Information Society
training for SMEs
entrepreneurship
craft and small enterprises
commerce

In the event, the initial framework proved to be very robust and provided the basis for a
systematic examination of the issues outlined in the subsequent document.

The two versions of the Integrated Programme, therefore, determined the basic shape of
the course of the Concerted Actions. As the programme unfolded, however, other
important policy developments also had an influence on the nature and scope of the
activities undertaken. Perhaps the most important of these arose from the establishment of
the Business Environment Simplification Task Force (BEST), at the invitation of the
Amsterdam European Council on 16 –17th June 1997.

The BEST Report8 was presented to the Cardiff European Council in June 1998. In
making a series of recommendations, based on an examination of ideas and practices from
across Europe, issues were addressed at both a European and a Member State level. It is
not surprising, therefore, that the BEST Report has relied to a large degree on the results
of concerted action, especially in relation to the business environment. Moreover, BEST’s
follow-up will be closely related to the process of concerted action. As will be seen, the
continuing Concerted Action programme has already been able to identify concrete cases
of the good practices that BEST advocates and also specific aspects of concerted action
have a place in the action programme to follow-up the Report9.

1.3.

The Instruments of Concerted Action

The early conception of the process of concerted action put a great deal of stress on the
promotion of an exchange of ideas and best practice through the organisation of large-
scale Fora. The idea was that a Forum, usually staged as a Presidency conference with
300–400 participants, would bring together political
leaders, business organisations,
experts and practitioners in the area to be addressed. Through a structured series of

8

9

European Communities (1998). “Report of the Business Environment Simplification Task Force”
Office for Official Publications of the European Communities, Luxembourg. ISBN 92-828-3418-2
Communication from the Commission "Promoting Entrepreneurship and Competitiveness"
COM(1998)550 final of 30.09.1998.
Action Plan to Promote Entrepreneurship and Competitiveness, conclusions of the Industry Council
of 29.04.99.

7

debates and more detailed examination in workshops,
the issues could be clarified,
common problems identified and cases of good practice examined. This instrument has
indeed provided the basis for all the work that has been conducted under the Concerted
Actions. However, in view of the range of the issues inevitably raised by the large number
of participants with such varied experience, it has been necessary in every case for a
Forum to be followed up by some other action designed to achieve a more focused
examination of the questions initially raised at the Forum. These actions have been of
different kinds, depending on the extent and nature of the subject matter to be considered,
but they have all had the aim of building on the debate at the corresponding initial Forum.

The programme of Fora and seminars relating to each of the phases of business
development for each of the three Concerted Actions proposed in the Integrated
Programme is set out below:

Fora:

June ‘95
Paris
Madrid Nov ‘95
Nov ‘96
Dublin

Feb ‘97
Lille
Baden
Sept ’98
Helsinki Sept ’99

Seminars :

Improving the Business Environment
Support Measures for Enterprises
The Visibility & Effectiveness of
Support Services
All three actions
Support Measures for Enterprises
Rapid Growth and Competitiveness
through Technology

Start-up Phase
Start-up Phase
All phases

Transfer Phase
Growth Phase
Growth Phase

Jan ’98

All Phases
Rome
Start-up Phase
Stockholm May ’98
Start-up Phase
Madrid
June ’98
Start-up Phase
Helsinki Nov ’98
Paris
Growth Phase
Feb ’99
Copenhagen Nov ’99 Market and Export Support in a Globalised Growth Phase

Quality Services for Enterprises
Training for New Starters
Finance for New starters
Incubators & Innovation Support
Use of the Internet

Athens Feb 2000

Economy
Strategic Services for SMEs

Growth Phase

Annex 1 sets out this information in a table showing the three Concerted Actions against
the three phases of the lifecycle. In the cases of the Dublin and Lille Fora, more than one
cell of the matrix was addressed in the same Forum.

Follow-up, in the case of the first Forum on Improving the Business Environment for
Enterprises in the Start-up Phase, organised by the French authorities in conjunction with
the Commission in Paris in June 1995, was achieved through a representative committee,
known as the ‘Group on Improving and Simplifying the Business Environment’. This
held a number of meetings following the Paris Forum eventually giving rise, as will be
more fully explained below, to the Commission Recommendation on Improving the

8

Business Environment for Start-ups10. Similarly, detailed follow-up work to the Lille
Forum of February 1997 involved contributions from representatives of Member State
business organisations helping to shape the Communication on the Transfer of Business11.

In the case of the Fora held to examine issues relating to Support Measures for
Enterprises, such as those in Madrid in November 1995, which considered initiatives in
the start-up phase and in Baden bei Wien in September 1998, which was concerned with
measures aimed at growing enterprises, a different approach was required.

A Steering Group of representatives from the Member States, along with those of the
European business organisations, has been responsible for the follow-up work. However,
this Group, which has met at least twice a year, has mainly had a supervisory, planning
and co-ordinating role. The detailed work has been conducted either in working sub-
committees of the Steering Group or through a series of seminars jointly organised on
each occasion by one of the Member States and the Commission.

These seminars have been more restricted than the Fora, involving only about 100
participants, but they have also been more focused, either going into greater depth on a
particular topic or addressing specific issues that it had not been possible to include within
the programme of the corresponding Forum.

The Steering Group has also been responsible for the follow-up work in the third area of
concerted action, which concerns the visibility and take-up of support services. Again, a
more detailed examination of issues identified at the Dublin Forum of December 1996 has
been conducted through a seminar on quality and certification of support services and a
working group with representatives of 6 Member States.

Finally, both the Commission and the Member States have undertaken various activities to
improve information about and understanding of the issues addressed under the Concerted
Actions and to disseminate the results. These include exercises to collect information on
support measures and best practice, developing dissemination through the Internet and
pursuing an analysis of specific issues raised by commissioning studies. Explanations of
these supplementary measures are provided in the detailed accounts of the results of each
of the Concerted Actions in the following sections of the Report.

It is important to bear in mind, however, the differences in the nature of the subject matter
of each of the Concerted Actions and the consequent differences in the processes required
both to identify best practice and to promote its adoption. These differences are the main
explanation for the variations in the procedures used in the follow-up to the Concerted
Action Fora.

The examination of the legislative and administrative environment primarily involves a
relatively restricted number of regulations and practices, which are already fairly well
documented. The aim in this case is largely to bring about a change in national regulations
by the national authorities and it is to these authorities that proposals for change have to
be addressed. With business support measures, the emphasis is more on the wide range of

10

11

Commission Recommendation on Improving and Simplifying the Business Environment
Business Start-ups, OJ L 145, of 05.06.97, p. 29.
Communication from the Commission on the Transfer of SMEs, OJ C 93 of 28.03.98, p. 2.

for

9

operational practices on the ground, involving many different
types of agency. The
national authorities do have an important co-ordinating role and usually set in place the
necessary legislative and operational framework, but it is other bodies that mostly deliver
the policies. Frequently they have the right to undertake their own initiatives and will
usually operate with a considerable freedom to adapt the national framework to local
circumstances. Often therefore, measures, and in particular the details of services
provided, are not very well documented. In fact there is not even agreement on the
definition and typology of the activities concerned.

In bringing about changes and improvements, the national authorities clearly have an
important role and can introduce institutional changes, offer guidance and provide
financial incentives as well as implementing their own direct measures. But, at the end of
the day, the real changes have to be at an operational level. They have to be adopted
and implemented by the professionals working in many different types of agency. The
processes both of identification of best practice and its dissemination have to be wider
ranging than in the case of regulations and have to involve this broader audience.

1.4.

The Nature of the Achievements of Concerted Action

The detailed results of the Concerted Action are presented below. The general nature of
these results, however, should be outlined at this stage.

The identification of best practice is at the heart of concerted action. In the area of the
administrative and legislative environment for enterprises, this process has led in one case
to a Commission Recommendation12 and in another to a Communication13. In contrast,
the wide range of issues and practices addressed in the examination of support measures
for enterprises has not yet led to such a formal conclusion. In all cases the work on
Concerted Actions has identified specific practices which have been highlighted as worthy
of consideration for more widespread adoption in the interests of creating a better general
environment for enterprises.

The processes for achieving change on the basis of identified good practice are different in
each of the three Concerted Actions. As has been indicated, differing audiences have to be
addressed, ranging from the national authorities to the professionals in support agencies
operating on the ground. These differences are important in that they lead to different
dissemination strategies.

In this context, the inherent subtlety and flexibility of the concerted action approach
becomes significant. The aim is to bring about change and improvement in the regulatory
and institutional environment for enterprises, while at the same time fully respecting the
principle of subsidiarity, allowing for the very diverse circumstances that define the local
environment and encouraging a culture of positive emulation of European best practice
rather than a reluctant response to external pressure. This general approach can be easily
adapted to the differing circumstances of the different Concerted Actions, but it also
requires that the ground is prepared adequately.

12

13

Commission Recommendation on Improving and Simplifying the Business Environment
Business Start-ups, OJ L 145, of 05.06.97, p. 29.
Communication from the Commission on the Transfer of SMEs, OJ C 93 of 28.03.1998, p. 2.

for

10

It is significant that one of the generally acknowledged achievements of the Concerted
Actions is that they have been able to contribute substantially to a debate at a European
level and have helped to achieve a development of ideas and a convergence of opinion on
the part of many of the key participants. On many of the central issues in Enterprise policy
there is now a European consensus. This is a necessary pre-condition of the successful
changes that are occurring at an operational level.

The following sections of the Report (sections 2 – 4) provide an account of the detailed
results of each of the three Concerted Actions in turn.

11

2.

CONCERTED ACTION 1 : IMPROVING THE BUSINESS ENVIRONMENT

2.1.

Improving the Business Environment for Start-ups

2.1.1. The Paris Forum on Improving the Business Environment for Start-ups

The event which launched the Concerted Action programme was the Forum on Improving
and Simplifying the Business Environment for Start-ups, held in Paris on 19-20 June
1995. It was organised jointly by the French Government and the Committee for
Improving and Simplifying the Business Environment.

The Forum was attended by some 300 representatives of national administrations and the
business community, and received high level political support from Member State
governments. Naturally, with a conference of such a size there were many different
contributions. However, the general tenor of the debate, and the good practice cited,
provided inspiration for the follow-up work that was conducted primarily through the
Committee. It is also of interest that the Forum provided considerable evidence to support
the contention that SMEs in their start-up and early phases face particular and
characteristic problems that need addressing directly.

A series of seminars and meetings of the Committee provided follow-up to the Forum,
and allowed an examination of the issues raised in Paris in greater detail. In the course of
these discussions, a number of themes emerged:

– the scope for removing administrative burdens through greater operational efficiency
on the part of the public authorities. In many Member States, greater co-ordination
between different public authorities could avoid such problems as multiple
authorisations and duplicated requests for information. The lack of speed at which the
authorities responded to requests for information and authorisations was also criticised;

– the impact of taxation and social security systems on SMEs; both in terms of the
administrative burden, where the enterprise was effectively carrying out administration
for the state, and in terms of impacts on cash flow -- particularly in the case of VAT;

– the room for more effective use of information technology; and

– the significantly different practice across the Member States in terms of the conditions
that enterprises have to fulfil in order to be allowed to establish themselves in a variable
list of (usually craft) occupations; these differences are related to differences in training
arrangements in the Member States.

the French system of Centres de
Many examples of good practice were identified:
formalités d'entreprise provided an instance where establishing an enterprise had been
made easier by allowing all the formalities to be completed in one location. Similarly, the
progress made in France in the use of a single identification number for administrative
purposes, was regarded as an interesting pointer for other administrations.

In the case of taxation, the measures adopted in the UK in the administration of VAT
illustrated encouraging responses to certain critical issues. The steps taken to improve
consultation and to engender a more responsive culture among officials were helping to
make the system more sensitive to SME needs. The relatively high turnover threshold
before registration was required and the relatively simple VAT return, provided potential

12

benchmarks for other systems to emulate. Finally,
technology in registration formalities
encouragement for others who had already identified this as an issue.

the Danish use of information
and in filing annual accounts, provided

The work of the expert group that was set up to examine the issues in greater depth
culminated in the publication, on 22 April 1997, of the Commission Recommendation on
Improving and Simplifying the Business Environment for Business Start-ups.14

The Recommendation initially notes that regulatory and administrative burdens stem
mainly from the Member States’ regulations, and that action is primarily required at a
Member State’s level. At this level, co-ordination is required, not only between central
departments of government, but also between them and local authorities. France, Portugal
and the UK have specific departments under the responsibility of the Prime Minister
designed to achieve this co-ordination. Consequently, these have a better prospect of
carrying through reforms than the advisory committees to be found elsewhere in the
European Union. It, therefore, recommends the setting up of a specific department or unit
at the appropriate level with authority to co-ordinate simplification policy and measures,
along with the promotion of a more service-oriented attitude towards business on the part
of officials through proper training and information.

A better assessment of the impact of new regulations is also called for; with the use of
business impact assessments and cost-benefit analyses, where appropriate, in order to
achieve a suitable balance between the objectives of regulations and the means employed.
As far as the impact specifically on SMEs is concerned, the ‘Think Small First’ approach
is recommended.

At a more detailed level, it is suggested that there is scope for considerable improvement
in the procedures for starting up a business. A study is quoted15 that shows that the cost
of formally launching a business varies considerably between EU Member States and also,
of course, depends on the legal form taken. It could be as high as

2 000.

€

In addressing this situation, it is proposed that the Member States:

– introduce a single business registration form;

– set up single contact points where a single registration form can be deposited;

– introduce a system whereby public authorities can recognise enterprises by a single

identification number;

– ensure that different government departments avoid introducing duplicated or

superfluous forms and/or contact points;

– allow businesses to reject a demand for information if this information is already held

by another government department;

14

15

Commission Recommendation on Improving and Simplifying the Business Environment
Business Start-ups, OJ L 145, of 05.06.97, p. 29.
Logotech ''Etude comparative des dispositions légales et administratives nécessaires pour
formation des PME dans six pays de l'Union européenne'', Paris 1995.

for

la

13

– set clear targets in terms of deadlines for the processing of enterprises’ requests and

the granting of licenses or authorisations;

– introduce, where appropriate, a system whereby an application is deemed to have
been automatically granted if the administration has not responded within the fixed
deadline; and

– use information technology and databases as much as possible for the transmission
information

information submitted and/or the exchange of

and authentication of
between public authorities.

The issue of authorisation was also addressed in an annex to the Recommendation, setting
out seven basic principles for prompt action.

Measures were proposed to alleviate the constraints of a tax, social, environmental, and
statistical nature during the early years of an enterprise’s existence. They included
suggestions relating to: improvements in the fiscal treatment of start-ups and those
investing in them (specifically,
reductions in social security
‘Business Angels’);
contributions; reporting requirements; statistical obligations; and obligations relating to
the VAT system. Better co-ordination between taxation and social security systems was
also mentioned.

2.1.2. Member State Action on the Environment for Start-ups

Member States report that there has been considerable movement on many of the issues
highlighted in the Recommendation. In France, for instance, a national debate led to major
reforms being announced on 3 December 199716
involving some 37 measures of
administrative simplification. Many of these reforms are very much in line with the
Commission Recommendation. They include: speeding up the process of registration (see
box 1), simplifying forms and reducing the amount of information required, improving co-
ordination between public authorities and facilitating the submission of official documents
by electronic means. A similar situation applies in the UK (see box 2).

16

''Premières mesures de simplification administrative pour les PME'' presented by the Secretary of
State to the Council of Ministers, 3rd December 1997.
14

Concerted Action 1

Box 1

Improving and Simplifying the Business Environment for Start-ups in France

In France there has been a radical simplification of procedures for start-ups.

‘Centres de formalités d’entreprises’ have been created to provide a single point of access for those
wishing to start-up an enterprise.

The procedures involved have also been dramatically improved. There is now a single form to be
completed for registration and this consists of one single page. There is also now a single identification
number.

Electronic systems are increasingly making the process easier to handle and the formalities can now be
completed within a day.

Information on progress with the programme of simplification measures is available on the Internet17.

The Danish authorities have carried the use of the Internet even further. On one site18, it is
now possible to find all the forms required for reporting to the government. Many of these
forms are interactive and can be used for directly submitting information to the
government. Payments can also be made on-line. A single electronic access point has
therefore been created. Pilot projects along similar lines are in operation in Finland.

In Austria, the direct influence of the Concerted Action is more clearly discernible. An
involving distribution of
active dissemination campaign followed the initial Forum,
information about the issues raised to business organisations and public bodies and making
it available on the Internet. Among many other developments, a central electronic business
register has been created, the application of the ‘first-stop-shop’ principle is planned and
smaller firms (<20 employees) are absolved from statistical and reporting requirements. In
Sweden, the debates at the Paris Forum fed into national discussions, which in turn led to
a range of measures including a project to introduce a single business registration form
and a single contact point for registration. A regulatory impact unit, known as ‘Simplex’
conducts impact analysis on proposed legislation and works for reduced, fairer and more
easily understood regulation. There is also an annual survey of SMEs that are in regular
contact with the major public agencies, with a view to improving the interface between the
administration and the business community.

Spain reports a very active dissemination process, making systematic use of the business
organisations. At government level the Paris Forum helped to focus a reflection on the
whole approach of the public administration towards SMEs, particularly as regards the
burdensome nature of administrative procedures. There is now in operation a Plan for
SME Competitiveness through Flexibility and Regulatory Simplification19 and the entry in
operation of the Single Access Points20 will reduce considerably the problems encountered

17

www.pme-commerce-artisanat.gouv.fr/chantiers/simp/index.htm
www.indberetning.dk

18
19 Plan de Agilizacion y Simplificacion Normativa para la Competitividad de la PYME.
20 Ventanillas Unicas Empresariales

15

by an entrepreneur at the moment of creating an enterprise. An unincorporated enterprise
can be created in a single day and for companies the number of procedures has been cut
from 17 to 15, while the time required for being established has been cut from 81 to 25
days.

Concerted Action 1

Box 2

Follow-up in the UK to the Recommendation on Improving and Simplifying the Business
Environment for Start-ups

In June 1998, the Better Regulation Unit of the Cabinet Office in the United Kingdom (now known as the
‘Regulatory Impact Unit’) conducted a systematic review of the UK’s response to the Commission’s
Recommendation on Improving and Simplifying the Business Environment for Start-ups. Each particular
recommendation in turn was considered against current practice and the work programmes of the UK
administration.
The review found that the UK was well on the way to meeting nearly all of the recommendations.

Since then the initial review progress has continued. For instance, in April 1999, a single organisation
was formed to deal with tax and national insurance contributions. This will not only facilitate the
processing of tax and insurance contributions from employees, but also enable a unified guidance and
assistance service to be delivered.

In the interests of transparency and encouraging feedback, information on the work of the unit is available
on a web site21.

In Belgium the approach has been to set up an agency for administrative simplification22
responsible to the Prime Minister. As well as having general
responsibility for
administrative simplification and for establishing a system for assessing the impact of
regulation on SMEs, this agency also has the task of establishing an electronic system for
completing formalities.

21

22

www.open.gov.uk/co/bru/bruhome.htm
Arrêté royal du 23 décembre 1998 relatif à L’Agence pour la simplification administrative
(MB 08.01.99)

16

Concerted Action 1

Box 3

Improving and Simplifying the Business Environment for Start-ups in Portugal

In Portugal, the creation of the ‘CFE Network’ (Centro de Formalidades das Empresas) has been achieved
after a considerable effort at co-ordination between a number of different government departments and
agencies. The CFE network, launched in 1997, is a one-stop-shop for start-up formalities, available
through 5 regional offices, (with 2 more planned). Replacing the previous need to visit 6 different
locations, the time for registration has been reduced from 4-6 months to 2-3 weeks.

Other administrative procedures have been simplified and the number of official forms reduced. There are
only 2 identification numbers. New information technology is being used to speed up procedures and a
new culture of client-orientation has been introduced into the service.

The CFE Network has been a great success with a rapid increase in the number of files being processed.
Although adapted to local circumstances, the inspiration of the French Centres de formalités d'entreprise
is freely acknowledged.

2.2.

The BEST Report

the Report of

A further major external impulse for change in legislative and administrative provisions
the Business Environment
affecting enterprises has arisen out of
Simplification Task Force23. This Task Force was composed of experts from all of the
Member States and was established by the Commission on the invitation of the
Amsterdam European Council. It reviewed the situation facing enterprises across the
European Union and made 19 major recommendations, supported by some 160 more
detailed recommendations. Aspects both of the regulatory and administrative environment
and of support measures for SMEs were covered in the Report. The BEST Report
commented on the degree of consensus evident across Europe about what needs to be
done to improve the situation faced by SMEs and, in fact, many of the issues highlighted
by BEST coincided with those identified in Concerted Actions.

The work of BEST and its follow-up has been presented elsewhere24. For present
purposes, it is necessary to note the following. The BEST Report was well received by the
Cardiff European Council and subsequently by the wider community of those involved in
Enterprise policy. It therefore contributed to raising the profile of the issues that the
Concerted Actions were intended to address. The follow-up to the BEST Report in the
form of the Action Plan25, endorsed by the Council on 29th April 1999, envisages a close
involvement of the work on Concerted Actions in the broader programme of actions by
the Member States and the Commission. The nature and quality of the work undertaken
by BEST, however, has obviated, at least for the present, any need to hold a forum to
address issues concerning the regulatory and administrative environment for growing
enterprises. On the other hand, the Council Conclusions envisage regular reports on the

23

24

25

European Communities (1998). Report of the Business Environment Simplification Task Force,
Office for Official Publications of the European Communities, Luxembourg. ISBN 92-828-3418-2.
Communication from the Commission "Promoting Entrepreneurship and Competitiveness",
COM(1998)550 final of 30.09.1998.
Action Plan to Promote Entrepreneurship and Competitiveness, conclusions of the Industry Council
of 29.04.99.

17

implementation of the Action Plan, which will provide a major source of information on
developments in this area.

2.3.

The Transfer of Enterprises

2.3.1. The Lille Forum on the Transfer of Enterprises

The Forum held in Lille in February 1997 both addressed the regulatory and
administrative environment in which enterprises can be transferred from one generation to
the next and also considered certain support measures that assist business owners in this
situation.

The Commission had already undertaken a certain amount of work on this problem and
drawn attention to the estimated 1.5 million jobs that are at risk across Europe because of
the problems of handing over the ownership of a business in circumstances such as the
the original owner. This work had resulted in a Commission
retirement of
Recommendation in 1994.26 The European Observatory on SMEs had provided further
insight into the economic consequences of this phenomenon in its Report published in
199627.

There was further examination of these issues at Lille and the collection of information
about progress in the Member States led to a Communication from the Commission28 in
which the following areas were highlighted:

– legal matters affecting the transfer of businesses, including appropriate legal forms
and procedures (to convert partnerships into limited companies and vice versa, a
simplified public limited company), establishing the continuity of businesses as a legal
principle and introducing simplified accounting procedures;

– taxation matters affecting the transfer of businesses, including reducing the impact of
inheritance or gift taxes, double taxation and taxes on the conversion of companies
and transfer of ownership to third parties or employees;

– support measures affecting the transfer of businesses, including better provision for
this situation by financial institutions and business support organisations, particularly
through better information and advice and, where appropriate, training.

2.3.2. Member State Action on the Transfer of Enterprises

The Commission has noted considerable progress in this area since the Forum. It is an
area where practices have diverged substantially between Member States and much has
been learned by observing what happens elsewhere.

26

27

28

Commission Recommendation on the Transfer of SMEs of 7th December 1994; OJ L 385 of
31.12.94, p. 14.
The European Observatory on SMEs, Fourth Annual Report 1996, section 6, European Network for
SME Research, Zoetermeer, the Netherlands.
Communication from the Commission on the Transfer of SMEs, OJ C 93 of 28.03.1998, p. 2.

18

The Swedish National Board for Technical and Industrial Development (NUTEK), which
took an active part in the Lille Forum, was also very active in organising a follow-up,
initiating a widespread national debate among experts and business organisations. In July
1998, NUTEK published a book ‘Ägarskiften i företag’29 (Transfer of Businesses) with
information about the situation in Sweden, advice on how to succeed in transferring a
business and examples of success stories. NUTEK also put forward proposals for
changing legislative provisions. These are currently under consideration by the Swedish
government.

level

the national

the situation at

In Austria the issue drew the particular interest of the Government and this led to an
analysis of
in co-operation with the business
organisations. A report has recently been presented30, and it is anticipated that for many
enterprises considerable relief will be given from taxation on inheritance and gifts and
greater time will be allowed for fulfilling other requirements. In the meanwhile the
Chambers of Commerce have created a simple Internet system for bringing together
retiring and prospective business people. A similar system exists in Denmark with a
database of potential buyers and sellers of business, being used by regional information
centres as part of an awareness campaign on the transfer of businesses.

Concerted Actions 1, 2 & 3

Box 4

Making the Transfer of Enterprises Easier in Spain

In Spain, where the issue is of great importance in view of the preponderance of family businesses in the
structure of the economy, there have been direct measures in the taxation area to facilitate transfer, with
large reductions in inheritance and gift tax.

The taxation incidence has been reduced by 95% on individual businesses or shares in businesses
inherited by spouses or descendants.

Indirectly, reforms of the regulations governing change in business ownership and a new law on risk
capital funds31 have facilitated continuity of commercial activity.

29

30

31

S-E Johansson and M. Falk. ‘Ägarskiften i företag’, NUTEK and Ekerlinds Förlag, Stockholm,
(ISBN 91-88595-18-8).
Institut fur Gewerbe-und Handwerksforschung ‘Enquete über Unternehmensnachfolge bei KMU’
Vienna 1999.
Law 1/1999, de Entidades de Capital-Riesgo y de sus Sociedades Gestoras.

19

2.4. General Assessment of the Results of Concerted Action 1

From the reports of the Member States, there has clearly been some important movement
in relation to issues raised at the Fora organised under the first Concerted Action. It is in
the nature of concerted action that it draws inspiration from movement that is taking place
on the ground. What is important in this is that, irrespective of where changes in national
legislation have been initiated, there is now considerable evidence that most Member
States are moving in the same direction and that a European consensus is emerging on the
necessary elements for a suitable regulatory framework for enterprises. The Concerted
Action has both played a part in allowing this consensus to emerge and in articulating
some of its characteristic elements. It has also allowed this progress to be documented.

This is not to say that there is no need for further changes. Movement in the right
direction does not mean that we have already arrived and, in particular, the process of
concerted action does not necessarily lead to a fully homogeneous business environment
throughout Europe. Nonetheless, the changes are encouraging and further work under the
Concerted Actions, which will largely take place within the framework established by the
BEST Action Plan, has a firm foundation on which to build.

20

3.

CONCERTED ACTION 2 : STIMULATING BUSINESS SUPPORT MEASURES

3.1.

Stimulating Business Support Measures for Start-ups

3.1.1. The Madrid Forum on Support Initiatives for Start-ups

The Concerted Action on Support Measures for Enterprises in the Start-up Phase was
launched at the Madrid Forum of 16th and 17th November 1995. The event jointly
organised by the Commission and the Spanish presidency succeeded in attracting a large
audience,
leaders, business organisations and
practitioners in the field of business support services. The aim was to strengthen the
effectiveness and coherence of measures designed to assist SMEs in their start-up and in
the early stages of their development.

including a wide array of political

In the Commission’s opening address, the Forum was reminded that such measures can
have a very marked effect on the chances of survival of new enterprises. Subsequent
contributions reinforced this point and consequently the first major conclusion of the
Forum was an agreement on the continuing importance of policy and action in support of
business start-ups.

The Forum was assisted in its deliberations by a document which had been prepared for
the occasion on the basis of contributions from the Member States. ‘The European
Directory of Measures in Favour of Business Start-ups and Assistance for New
Enterprises’ listed support measures in each Member State and while not aiming to be
entirely comprehensive, it did represent the first step in the attempts to provide a reliable
information base for cross-border comparisons of support measures.

A number of themes emerged from this Forum. They included :

– the necessity for continuing efforts to improve the environment

in which SMEs

operate;

– the significance of cultural and educational

factors in encouraging a spirit of

enterprise;

– the need for simplification of the programmes of support in face of the multiplicity

and complexity of the measures available;

– the importance of

tailoring support schemes to the stage of development of an

enterprise;

– the balance required between private and public provision in this field;

– the need to promote networking, both between enterprises and between support

agencies;

– the potential of

information technology, but also the continuing relevance of a

personalised service;

– the scope for improvements in the methodology for evaluating the measures used to

promote business start-ups.

21

Evidently the themes identified in the conclusions of the Madrid Forum encompass a very
broad range of issues and while other more specific recommendations were made in the
three working groups, the major contribution of the Madrid Forum, in retrospect, was in
giving an orientation to the subsequent work. In particular, the discussions in the working
groups on measures relating to training and information, access to finance and support
infrastructure led to a follow-up seminar programme focusing on these areas and a
number of the recommendations made influenced the support instruments that have been
put in place by the Commission. The Internet instruments, for instance, being created by
the Commission following a call for tender, envisage the possibility of electronic
networking between business support organisations through a system of discussion
groups. This is intended as a move towards the ambition of creating a continuous
electronic forum on best practice that was a recommendation of one of the working
groups at Madrid.

3.1.2. Follow-up Seminars on Support Measures for Start-ups

Discussion on follow-up with the Member States in the Concerted Action Steering Group
led to the definition of a programme designed to produce a package of specific examples
of good practice in the areas under consideration in Madrid. It was decided that this
would be best achieved by holding smaller scale seminars on specific sets of issues. The
seminars, hosted by one of the Member States, would aim to restrict the number of
participants to allow real debate to take place and would involve a high proportion of
expert practitioners.

In the course of 1998, three very productive seminars took place.

The first of the series was a seminar on training for start-ups in Stockholm in May in
conjunction with the Swedish authorities. This was followed by a seminar in Madrid in
June in conjunction with the Spanish authorities on issues related to finance for start-ups.
A final seminar, jointly organised with the Finnish authorities, was held in November 1998
in Helsinki on support for innovatory enterprises through incubators.

At each of these seminars, there was not only agreement on the major elements necessary
in a programme for providing effective support to start-ups, it was possible in most
instances to identify particular cases that could serve as concrete examples of good
practice.

Information on this good practice has been published in the first instance in reports from
each seminar that have been circulated in the Member States. In addition some 20
particular cases have been identified as the basis for a much broader dissemination
campaign.

These cases point to the following issues, with their corresponding cases of good practice:

22

3.1.2.1. Training and Information

Issue

Good Practice

the need to establish a culture of
entrepreneurship

the Danish Action Plan
Promoting
Culture
a
Entrepreneurship

for
of

supporting this by training trainers

the ‘Trading Places’ project of the
Centre for Enterprise in Leicester
in the UK

promoting enterprise
Education

in Higher

the need for a package of coherent
and practical information support
for start-ups that is easy to access

TOP programme
Twente

of

the
University
Netherlands

of
in

the
the

national

‘Entreprendre

an information package based on
the
en
France’ scheme, developed by a
group of support organisations in
Poitou-Charentes

the scope for flexible access to this
information through the use of
information technology

the CD-Rom produced and widely
circulated in Sweden by the ‘Young
Enterprise’ network

the value of
targeted help for
particular groups of start-ups, such
as women entrepreneurs

training of women by the GDO
organisation in Portugal to present
their business proposals effectively
to banking organisations

3.1.2.2. Finance for Start-ups

Issue

Good Practice

the advantages of a financial
agency at a national level whose
prime responsibility is to ensure
that start-ups have sufficient access
to appropriate finance

ensuring
potential
that
entrepreneurs are able to present
plans
their
themselves
effectively
to banks and other
providers of finance

and

role of

in Germany,
the
the
Deutsche Ausgleichsbank, with its
comprehensive range of
financial
and advisory services for start-ups

the ‘Starter’ service of the Belgian
Generale de Banque

23

the potential for more sympathetic
treatment of
start-ups by banks
through ‘relationship management’
and
friendly
practices

customer

other

making
finance for
with micro-loans

available

appropriate
start-ups, beginning

the potential for putting in place
networks that can make better use
of the opportunities represented by
Business Angels

to

develop

equity
continuing
markets suitable for SMEs, not
least as a means of creating an exit
for risk capital investments

‘relationship management’

the
introduced by the Bank of Ireland

the
micro-loans
Finnvera plc in Finland

offered

by

the National Business Angels
Network in the UK

the ‘Neuer Markt’ in Germany

3.1.2.3.

Incubators

Issue

Good Practice

the need for the right combination
of services in incubators

the promotion of quality in service
delivery

bringing about effective technology
transfer

the scope for incubators in new
sectors

value

the
networking
of
incubators and for their clients

for

infrastructure,

business
the
planning and financial package of
the IZET Innovation Centre and its
regional partners
in Schleswig-
Holstein in Germany

the implementation by Bordeaux-
the French AFNOR
Productic of
standard for
the functions and
services of incubators

links

academia,
between
the
commerce and industry of St John's
Innovation Centre in Cambridge in
the UK

the Travel Park Incubator Network
in Finland that assists start-ups in
the Tourism sector

in Finland, the 17 incubators of the
Helsinki region, co-ordinated by
the Uusimaa Employment
and
Economic Development Centre

24

mutual support at a national level

Implementing co-operation systems
between enterprises
through the
Spanish Association of Business
and Innovation Centres (ANCES)

the need for a balanced funding of
incubators

Centre

International

for
the
Advanced Communication at
the
Sophia Antipolis Science Park in
France relies on both private and
public funding

potential

the
incubator

of

the

virtual

technology

park
the
virtual
operated through
the Lavantal
Innovation Centre in the Austrian
province of Carinthia

3.1.3. Dissemination Strategy

More detail on these cases in the form of a brief description is presented in Annex 2. This
gives the text of a publication aimed at professionals involved in business support. This
publication indicates sources of more substantial information on each case, but it is also
designed to form the basis of a much broader dissemination campaign that will seek to
exploit the possibilities of current information technology. Here the initial objective will be
to make use of an Internet site both to allow widespread distribution of the cases
identified at the seminars and to give access to further information. Each case cited,
therefore, will have a brief description on screen, but there will also be links to the specific
section of the report on the seminar with the details of the case as first presented and to
other
the
information,
organisation concerned.

links to the Internet site of

including whenever possible,

Box 5 provides an example of one such practice initially presented at the Stockholm
seminar on training and information for start-ups.

Over the longer term, the aim is to create an Internet community initially of those that
have participated in the Concerted Action fora, but subsequently of business support
organisations generally. This community will be encouraged to conduct a sort of
continuous electronic forum. This process will begin with a series of discussion groups
based on participants in the start-up seminars. They will be invited to discuss the good
practice cited, to propose other examples of possibly better practice and to raise related
issues of quality and coherence in the delivery of support services. Since, at the beginning,
this scheme will operate as a pilot project, active participation in discussions will be
relatively restricted, but this should also mean that discussion can be well focused and
well-informed and it will be open for any visitor to the site to read. The paper publication
referring to the examples of good practice will draw attention to the Concerted Action
web site and the possibilities of following discussion on the good practice initially
identified through this site.

25

Concerted Action 2

Box 5

An example of the sort of ‘good practice’ identified under the Concerted Action on
Stimulating Business Support Measures is the following :

Coherent and Practical Training Support in France

Issue :

Start-ups need a coherent and practical ‘package’ of training support, that is easy to access.

Good practice :

training measures “Training for Business Start-up, Anytime,
The “package” of
Anywhere”, is a distance learning programme, developed in the framework provided by
the national “Entreprendre en France” network. It is offered by the six Chambers of
Commerce and Industry of Poitou-Charentes in France, in association with the CNED
(Centre National pour l’Education à Distance) the national agency for enterprise creation
(Agence Pour la Création d’Entreprises) and CEPAC Atlantic Centre. Training modules
help the entrepreneurs to analyse their own capabilities, the project feasibility and the
necessary steps for the initial development of the business. A business project dossier,
including a business plan, is prepared and close support is provided by advisors from the
Chambers of Commerce and Industry and the professional associations belonging to the
‘Entreprendre en France’ network. The training material
is produced and marketed
through the CNED and is available in paper and electronic formats32.

For further information see annex 2

3.1.4. Methodology of Best Practice

Behind this strategy of dissemination lies a particular conception of the process of best
practice identification. It is felt that essentially this must be an iterative process. In the first
instance cases have been identified that appear to experts in the area to have a certain
interest and to be worthy of consideration by other professionals. However, no-one is in a
position to claim at this stage that they represent the best possible practice. Best practice
can only be established by a much broader debate, by a critical comparison with other
practices and by more rigorous and objective evaluation. It was for this reason that a
Working Group on the Methodology of Best Practice was established by the Steering
Group as part of the follow-up programme. This working group has begun to examine
criteria for the definition of best practice and the possibility of using benchmarking and
similar techniques in defining best practice in particular types of support service. A call for
expressions of interest was published in April 1999 with a view to engaging consultants to
conduct work on aspects of such a benchmarking exercise. It is intended that the working
group will act as a focus for developing a more systematic analysis of best practice,
building on the lessons of the first phase.

3.1.5. Member State Action on Support Measures for Start-ups

Drawing attention to the examples of good practice already identified also requires the
assistance of the national authorities. This has taken various forms.

32

www.cned.fr

26

There have been a number of direct applications of ideas presented at the Madrid Forum
and in the subsequent seminars. In response to a questionnaire on follow-up to the Forum,
circulated in 1997, for instance, some Member States reported very specific action.

In the case of Finland, after an evaluation of the material presented in Madrid, the
Ministry of Trade and Industry selected the ten most interesting measures for Finland and
consulted with business support agencies. Three measures were considered suitable for
adoption. One, for example, was a service operated by the regional Employment and
Economic Development Centres, based on the Swedish telephone service for start-ups
(‘Startlinjen’)33.

to Madrid influenced the development of

the
In Greece, discussions subsequent
Operational Programme for Industry within the Community Support Framework,
in
particular, through an improved structure to the support services provided for start-ups in
areas such as business planning and technical assistance. There was also the adoption of
measures for the creation of incubator units in various parts of Greece and assistance
provided for established professionals who wished to create a new enterprise.

There was also use of the material presented in the Forum and seminars to stimulate
national debates. A number of Member States report systematic dissemination of the on-
going work to their main business organisations. In the case of the Netherlands the
practices identified in the Forum and seminars were taken into account in a discussion
paper called ‘Klaar voor de Start’ (Ready for the Start), circulated for comment to more
than 400 organisations and then discussed in five expert meetings. The results of this
consultation are now being incorporated into a policy paper shortly to be submitted to the
Parliament. Increasingly the material generated is being made available to interested
organisations via Internet sites, as in Austria, for example, where this has been the practice
for a number of years.

Again there is some evidence of a general tendency to convergence in the face of similar
problems. The Dutch Ministry of Economic Affairs launched the ‘Twinning Project’ for
start-ups in the Information and Communications Technology sector in 1998, offering an
integrated package of physical facilities, management support, finance and networking, as
independently recommended by the Helsinki seminar later in the year. Similarly the
Austrian ‘Gruenderservice’ operated by the Economics Ministry has been active in
promoting entrepreneurship and developing the use of new information technology for
providing information and advice. In Portugal, the SINPME network in the 14 regional
offices of IAPMEI34 provides a one-stop shop for information on national assistance for
enterprises. It is supported by an integrated system for access to databases and the
Internet and by highly trained information officers. In the area of finance, the idea of a
Business Angel network developed in the UK has been taken up by the Netherlands,
Germany and Austria and these networks are now being co-ordinated at a European level.

Business organisations have also contributed, not only to presentations and debate at the
Concerted Action fora and seminars, but also to the dissemination of information on the

33

34

since developed its

Startlinjen has
www.nutek.se/startlinjen.
Instituto de Apoio as Pequenas e Médias Empresas e ao Investimento (Institute for Support for Small
and Medium-sized Enterprises and for Investment.)
27

services, which are now available on the Internet :

conclusions. The German savings banks, for instance, organised a conference on issues
the Madrid Forum and EURADA (the European Association of
initially raised at
Development Agencies) has regularly published reports in its newsletter of Concerted
Action events.

The work that has been done on support measures for enterprises in the start-up phase has
produced a specific set of good practices that have started to influence the way that these
measures are delivered across Europe. In the meanwhile the work programme has moved
on to a consideration of support services for growing enterprises.

3.2.

Support Measures for Enterprises in the Growth Phase

3.2.1. The Baden Forum on Support Measures for SMEs in the Growth Phase

The Forum entitled ‘SMEs in the Growth Phase – Key Factors in Improving
Competitiveness’ launched a new stage in the second Concerted Action. It took place at
Baden near Vienna in September 1998, under the Austrian presidency.

Again three broad areas of support measure were addressed by this Forum, training,
finance and the promotion of co-operation. Work was commissioned prior to the Forum
and presented to the workshops in order to define a framework for the discussion.

Among the initial conclusions35 the following issues emerged:

3.2.1.1. Training:

– proper initial training helps enterprises both to survive and grow effectively;

– training for growth should start as soon as the enterprise is established;

– training of growing enterprises must move away from a system based on the

occasional seminar. A life-long learning approach was the key;

– development of entrepreneurial competencies must match the development of the

enterprise throughout its entire life-cycle;

– training should be sensitive to the differing requirements of different

types of

enterprise;

– provision for training in preparation for the transfer of an enterprise should be built

into the training plan;

– publicising the availability of training and support is crucial;

– there is scope for considerable improvement in training through innovative thinking,
involving self-training in networks, co-operation between providers with different
know-how, through ‘regional competency centres’ and more ‘tailor-made’ provision;

– rigorous evaluation is necessary to improve the quality of provision.

35

‘SMEs in the Growth Phase – Key Factors in Improving Competitiveness’ Proceedings, Austrian
Federal Ministry for Economic Affairs, Vienna 1999.
28

In terms of the content of training, proposals were made concerning central processes in
managing an enterprise, such as assessing needs and formulating business goals and
concerning coaching in essential skills, such as the effective presentation of business
plans.

3.2.1.2. Finance

– financial instruments need to be attuned to the differing requirements of the different

kinds of enterprise;

– problems affecting access to capital, should not only be tackled from the supply side
but also by addressing managerial capabilities, a continuing aversion to equity
capital and the problems in the information flows and communication;

– finance for high risk projects is possible if the right assessment tools are used;

– but the financing of innovation should not be restricted to high tech areas;

– information tools can be used to increase the transparency with which finance is both

offered and taken up;

3.2.1.3. Transnational Co-operation

– assistance for co-operation between enterprises must be very flexible, to take account

of the range of enterprise experience and the different forms it can take;

– there continue to be barriers to co-operation which need examination and regulatory
reform, for instance, to facilitate cross-border working by employees involved in co-
operation;

– more consistent follow-up can be very productive;

– effective assistance can be provided to enterprises in developing cross border

contacts;

– greater promotion of existing instruments is required along with a more systematic

evaluation of their strengths and weaknesses.

An often-repeated theme at the Forum was the necessity to distinguish between the
differing needs of different types of enterprise. In the concluding session there was a
debate about the flexibility which is required to respond to these needs. This again pointed
to the advantages of the method adopted under the Concerted Actions which provided
this flexibility by encouraging rather than imposing improvements.

3.2.2. Follow-up on Support Measures for Enterprises in the Growth Phase

All the issues listed above are still very much provisional. The intention is to proceed in
the same way as with the measures relating to start-ups. This implies that all measures for
growing enterprises will be presented as a package, in line with one of the principal

29

themes emerging from all the discussions on support measures, namely that the services
should be provided in a comprehensive, coherent and consistent way. As with start-up
measures, further investigations of particular themes will be pursued. It was not possible
at the Baden Forum to address the whole range of measures for growing enterprises.
Having focused on training, finance and co-operation, it was necessary to complement this
process by examining the rapidly evolving range of business support services that are
offered. For this reason the Concerted Action Steering Group decided to organise a series
of seminars in 1999 and the beginning of the year 2000, which would address the
following :

– the use of the Internet;
– new export support services in a globalising economy;
– strategic support services, such as benchmarking, supply chain management strategies

and co-ordinated services, particularly at a regional level.

A seminar on encouraging the use of the Internet by SMEs and its applications in support
services took place in Paris in February 1999. A rich variety of perspectives and practices
were presented on this complex and rapidly evolving area. The proceedings have been
published by the French authorities in the form of a CD-Rom36. The analysis of this
material, the determination of the key issues and the identification of good practice that
should be highlighted is still being undertaken.

Some of the issues raised, however, can be summarised as follows :

– a clear vision needs to be developed on how to promote the exploitation of the

Internet;

– awareness raising is still required among enterprises;

– de-regulation is necessary, but also the promotion of competitiveness through
research and development; validation, implementation and assessment mechanisms
are also necessary;

– partnership and co-operation are key, particularly in value chains and industrial

clusters;

– appropriate financing is needed and legal assistance;

– virtual incubators could be particularly appropriate;

– the public authorities have a role in their own use of the Internet, in promoting a
wider awareness of electronic payment and in the improvement of logistical systems;

– better information on what is happening in the industry should be created through

data collection observatories and surveys.

The other two seminars are scheduled to take place in November 1999 and February
2000.

36 Ministère de l’économie, des finances et de l’industrie, ‘Les Actes du séminaire : L’Internet au

service des PME’, Paris 1999.

30

In addition, in order to focus on the situation of rapidly growing SMEs, the Forum on
Rapid Growth and Competitiveness through Technology in Helsinki on 16-17th September
1999, under the Finnish presidency, also took place within the Concerted Action
framework. This represented a response to the strong theme, emerging particularly from
types of
the Baden Forum that a differentiation should be made between different
enterprise when attempting to identify effective support measures. The results of this
Forum are still being analysed, but it is clear that a better understanding of the nature of
rapidly growing firms was achieved, along with an appreciation of how developing
information technologies impact on them. A number of good cases of effective support for
firms of this kind were presented and there was identification of several encouraging
practices in which public administrations are using new technology to provide more
effective services to enterprises. As with the other elements in the analysis of support
measures for growing enterprises, the detailed results of this Forum will be published in
due course.

3.3.

The Quality of Information

An issue that arose at an early stage in the Concerted Action on Support Measures was
the nature and extent of the information base for an effective comparison of support
measures. For the Madrid Forum of 1995, as has already been mentioned a directory was
produced giving information on support measures for start-ups in all the Member States.
It was subsequently decided to improve this data source and constitute it as a database.
After a call for tender and the award of a contract, the ‘Support’ database has now been
created with over 700 measures relating to start-ups in EU Member States. The intention
of the Commission is to extend this database to cover measures relating to other phases of
enterprise development, to make it available in more Community languages and to make it
accessible via the Internet, with separate interfaces for enterprises on the one hand and for
officials and business support organisations on the other.

It is also important to point out that it is hoped that the Support database will itself
become a focus and instrument of concerted action. In fact, it is already becoming so. The
range and quality of the data will depend in the future, as in the past, on the active co-
operation of the Member States. But more significantly the use of the database as an
instrument in reflections on developments in support policy at a national level, which has
already begun in a small way, has considerable potential. The database has been designed
to facilitate not only simple entering of new data, but also a simple procedure for
distributing the results of searches in various formats. This active use of the database is
very much encouraged by the Commission which will try to ensure that as the database
evolves, more information will be made available that reflects the basic objective of
facilitating the identification of good practice. In particular more data will be entered
concerning the impact and evaluation of each support measure.

3.4.

Conclusions

There has been a considerable movement in the orientation of the Member States towards
support measures for enterprises. The Concerted Actions have played a part in helping
some of this movement and in beginning to establish a framework for observing further
progress. Much remains to be done, including a completion of the examination of support
measures for growing enterprises and the effective engagement of professionals in
business support organisations in the adoption of better practices. This will be helped by

31

the electronic forum and other systems that are now being put in place. But the work
under Concerted Action 2 has also identified a number of central themes that are
important for addressing the aim of creating first class support services for enterprises.
These themes include the need for measures to be designed to fit
the specific
circumstances of different types of enterprise, the need for services to be provided as a
consistent and coherent package, the need for them to be easily accessible, the growing
scope for using information technology for this purpose and the need for quality standards
to be established. Before setting out the full picture, it is necessary to consider the results
from the third Concerted Action that add an extra dimension to these issues.

32

4.

CONCERTED ACTION 3: INCREASING THE VISIBILITY AND EFFECTIVENESS OF
SUPPORT SERVICES

4.1.

The Visibility and Effectiveness of Support Services

4.1.1. The Dublin Forum on the Visibility and Effectiveness of Support Services

The Dublin Forum on the Visibility and Effectiveness of Support Services in November
1996 introduced the third Concerted Action. The Forum considered the issue of
stimulating the demand for support services and the related question of how the visibility
of support services can be increased.

The issues were addressed by distinguishing between the promotion of support services by
public authorities at national and regional levels and by intermediary bodies and then by
looking at the marketing of support services.

The overall themes to emerge were the following:

– client-orientation : enterprises need to be involved more systematically in shaping the

design and delivery of support measures and services;

– there are probably too many programmes and services and too many organisations

delivering them; they should be rationalised, particularly at a regional level;

– a modern business service culture should be developed in support organisations;

– services need to be targeted better, taking different kinds of enterprise into account,
and to have more substance and depth to them; they should move away from those
traditionally provided towards services linked to essential business innovation
processes;

– evaluation of programmes and services should be a standard practice.

An issue that was not resolved, but which clearly is important, is the question of the right
balance between public and private provision of support services. There are substantial
differences in how this question is perceived across the EU, but in any event, it is evident
that co-operation between public and private services is crucial.

Two organisations were pointed to as good examples of the provision of high quality
services that were well-orientated towards meeting clients’ needs. These were ERVET37
of Emilia Romagna in Italy and FORBAIRT38 in Ireland.

Specific recommendations were made about the marketing of support services:

37

38

www.ervet.it/english/Welcome_e.htm
Forbairt
www.irish-trade.ie/main.html

now part

is

of Enterprise

Ireland, whose

services

are

explained

at :

33

– national campaigns are most effective as a backdrop to local promotion of services

and should concentrate on raising general awareness;

– at a local level, there needs to be co-ordination between agencies to ensure that a

clear message is conveyed;

– promotion should emphasise what

the enterprise wants not what

the support

organisation can provide;

– it is important to overcome the isolation of SMEs, providing structures, such as export
clubs, experience exchange groups and other forms of networking that can help
enterprises make better use of available services;

– direct visits to enterprises and telephone promotion can be rewarding;

– organisations such as banks can be used to promote services;

– use should be made of information technology, and especially the Internet.

Although approaching the subject from a different angle, it is interesting that again at
Dublin the issues of the coherence of service provision and its quality came to the fore.

4.1.2. Follow-up relating to the Visibility and Effectiveness of Support Services.

In the discussions following the Dublin Forum there was some comment on the extent of
the overlap between the subject matter of the second and third Concerted Actions. It was
acknowledged that the two Concerted Actions were often looking at the same services
from different perspectives and the Steering Group agreed that work on the two actions
would proceed in parallel. Nonetheless it was also recognised that Concerted Action no 3
was addressing a distinct and important question. There are not only issues about the
content and rationale of support services, but also about the way that they are delivered.
Moreover, the perceptions and motivations of support service users, primarily SMEs,
should continue to be addressed.

One of the first instances of this was the seminar on quality services to enterprises
organised in Rome in February 1998. Discussion at this seminar was wide-ranging, but
among the issues under consideration the following were included:

– the need to ensure that enterprises could access without undue difficulty a

comprehensive set of business services;

– within this broad range a consensus should be created on a core set of services that

should be available anywhere in Europe;

– at the same time, a confusing profusion of support services should be avoided;

– service providers should be client-oriented and sensitive to enterprises’ individual

needs and circumstances;

– enterprises need better information both on the availability of business services and

on their nature and quality;

34

– systems for assuring enterprises of the quality of the services provided need to be
created, particularly by the certification of suppliers and through codes of conduct;

– new ways need to be found to encourage the take-up of business support services,
including dealing with this issue in the training of both entrepreneurs and service
providers and through the appropriate use of information technology.

Concerted Action 3

Box 6

The Transparency of Support Service Markets in Italy

The Italian Directory of private support service providers.

In order to promote services in the area of training and consultancy, the Italian Union of
Chambers of Commerce (Unioncamere), in conjunction with a number of partners, has
created a Directory of over 700 (largely private-sector) service providers, which can be
consulted on the internet39. Searching the database by category of service (14 types are
identified) and by region or for the whole country produces a list of experts and
consultants, who have each provided specific information about
themselves. This
information consists of contact details, areas of know-how, turnover, numbers of clients
and employees, banker’s references, any certification and membership of national and
international associations, details of past and current assignments and participation in
Community Programmes.

Unioncamere is not in a position to provide any guarantees concerning the entries in the
database, but the system enormously increases the transparency of the market for these
services and consequently helps to address a significant market failure. Enterprises are
able not only to locate sources of assistance more easily but to do so with greater assurance.

Another aspect of the continuing attention paid to the question of visibility and take-up of
support services is illustrated by the activities of a special working group set up by the
Concerted Action Steering Group. Following on from the seminar in Rome, the Italian
authorities proposed to examine in greater detail the attitudes of both s and support
organisations to the nature and quality of support services. A number of the Member
States expressed an interest in examining this question and after discussion in a visibility
working group, a co-ordinated study is being conducted in a project financed jointly by
the five Member states involved and the Commission.

Finally it should be mentioned that a number of the issues identified in Dublin have been
considered in the drafting of the Recommendation on the Access of SMEs to Support
Programmes40 which is being considered for adoption by the Commission. There is
obviously some overlap between support programmes and support measures, even though
programmes are usually more elaborate, requiring, for instance, formal applications, often
in competition with other applicants, in contrast to the open access to support measures.
It is therefore not difficult to see that many of the practical problems experienced by
enterprises in following the procedures for accessing Community and national support

39

40

www.repertorio.camcom.it
Commission Recommendation on the Means of Improving the Access of Small and Medium-sized
Enterprises to Support Programmes.

35

programmes are similar in nature to difficulties encountered in the apparently simpler
process of making use of support services. Often there is not adequate information,
programmes are not designed to take the differing circumstances of SMEs into account
and SMEs are not in the best position to exploit effectively what is being offered.

4.2. General Assessment of the Results of Concerted Actions 2 & 3.

A series of clear themes have emerged from the work on both aspects of support
provision for enterprises. In spite of the undoubted good practice that exists around
Europe and the dedication of many of the people who assist enterprises, there is definite
room for improvement and in fact it is precisely the professionals in the field who are
leading the call for such improvements.

The themes can be summarised as follows :

– support to enterprises must be client-oriented;

– there is a need for services to be more comprehensively provided across all regions of
the European Union and for there to be greater coherence and consistency in this
provision; above all the general standards of service quality should approach that of
the best anywhere in the Union;

– different services for different types of enterprise: the distinction between measures
transfer from one

for different phases of development (start-up, growth phase,
generation to the next) needs to be taken further;

– for each type of enterprise a core package of services, clearly related to all the major
functional areas of business activity, should be defined and should be within easy
access of any SME;

– suitable use of information technology should be made to help provide this access;

– quality standards for these services need to be defined; performance benchmarks have
to be established and then continuously reviewed; moreover, evaluation of measures
should be routinely built into their operation;

– the increasing professionalisation of staff delivering business support measures is
urgently needed, whether operating in the private or public sectors; this has to be
the
supported by appropriate training and qualifications, career
development of professional associations and public recognition;

structures,

– the drive to improve quality and professionalism should be based on an active

programme of best practice identification and exchange.

In short, although covering a vast array of different practices and approaching the subject
from different directions, both of the Concerted Actions have arrived at two common
central themes: the need for increased coherence in the services offered to enterprises and
for the quality of these services to be assured, wherever they are provided.

36

5.

CONCLUSIONS AND FUTURE DEVELOPMENTS

5.1.

Summary of the Achievements of the Concerted Actions

The programme of the Concerted Actions is a relatively ambitious one. It started with
some of the fundamental themes in Enterprise policy, and required examination of issues
that have many ramifications. A considerable amount of co-ordination was required,
notably of inputs from all the Member States, and it was necessary to involve a large
range of professionals and business organisations. The process of identifying and
exchanging best practice and the instruments used to achieve this were relatively
unfamiliar and, to an important extent, had to be developed along with the programme.
With no legal requirement beyond the general provision in the Treaty, essentially this
process was driven by good will. Moreover, everything had to be done within the existing
budgets of the Commission and the Member States.

Set in this context, considerable progress has been achieved with the Concerted Actions.
A particular aim, cited in the Integrated Programme41, was to achieve a better targeting
and convergence of policy measures. This has happened. It is clear from the results of
each of the Concerted Actions that the authorities in the Member States have learned a
considerable amount from their counter-parts elsewhere in the Union and have applied
these lessons in their own legislation and practices.

It is also possible to point to specific changes that have been brought about by Concerted
Actions. Furthermore, they have had an important function both in helping the growing
consensus to be articulated and in allowing progress in improving the situation for
enterprises to be observed and monitored.

There is now a debate on the business environment and on support measures conducted at
a European level and there has been observable progress in this debate in terms of defining
clear and coherent ideas about priorities. The Concerted Actions have been able to
articulate that. Better targeting and some convergence have consequently been achieved
and markers have been set by which further progress can be measured.

The emerging consensus on priorities will be able to build on the specific
recommendations for improving the business environment and developing services for
enterprises characterised by their comprehensiveness, quality and flexibility that are set out
in sections 2.1 and 4.2 above.

There has also been progress in the routines and procedures developed for the Concerted
Action fora and seminars. The experience accumulated in organising these events has
helped the Commission and the Member States make them more productive.

There has been better focus in debates brought about by reference to a well-defined
framework. Through participation in an established programme of events, clear
progression has been evident in subject matter and methodology. There has also been
more extensive preparation in some instances and certainly a greater degree of follow-up.

41

Integrated Programme for Small
Communication from the Commission. COM(1996)329 final of 10.07.1996, p. iv.

and Medium-sized Enterprises

and the Craft Sector,

37

This has been achieved at
to Community and national budgets, as
confirmed in the Evaluation Report on the 3rd Multi-annual Programme for SMEs,42
where the Concerted Actions are evaluated very positively.

little extra cost

The first part of the programme for the Concerted Actions, as initially envisaged in the
Integrated Programme, has now largely been achieved. The final elements will be provided
in the events concerning support measures for growing enterprises, that are planned for
the end of 1999 and the beginning of 2000.

It is evident that the main lessons to be learned from the Concerted Actions are precisely
the concluding themes that were presented in points 3.4 and 4.2 above. Together with the
Recommendation on Improving the Environment for Start-ups, the Communication on the
Transfer of SMEs, the BEST recommendations and the BEST Action plan, these themes
define the priorities for the next phase of Concerted Action.

5.2.

The Next Phase of Concerted Action

The next phase of concerted action will have to see a new framework to provide the sort
of perspective that was a major contribution of the Integrated Programme. Developing the
themes of the initial framework, the next phase will also have to ensure that the results of
the work of the first phase continue to be acted upon, to amplify what might be called the
second wave effects of concerted action. These consist of the real and specific changes,
recommended in the first phase, in the practices of public authorities and both public and
private agencies, in the direction of a more coherent and effective provision of the publicly
determined elements of the business environment for enterprises.

Continuing to encourage and monitor the adoption of the provisions of the Commission
Recommendation on Improving the Business Environment
for start-ups and the
Communication on the Transfer of Businesses, and indeed the BEST Report, will be a
significant element. The effective dissemination and further adoption of the results of
Concerted Actions 2 and 3 will be the other part.

In this it will be necessary to continue to refine the procedures and approach of Concerted
Actions. There is general agreement that the current rolling work programme should
develop a longer perspective, looking several years ahead, and that the experience gained
from the organisation of the earlier work should be documented in the form of a vade-
mecum. The IT instruments used in support of Concerted Actions will need a lot of
further development, not only in terms of the technical aspects but also in making them
effective instruments of analysis and co-operation by the Member States.

It will also be necessary to take into account a wider constituency than has so far been
involved in a systematic way. Some of the recent events in the Concerted Action
programme were smaller in scale than the initial fora and more focused on particular areas
of expertise, relating to the provision of specialised training, financial services and
incubator management. These events particularly allowed a certain amount of networking
of professionals in the area concerned and discussion about continuing debate on the
questions that were being raised. Ideas about new directions for the services under

42

Final Report. Evaluation of 3rd Multi-annual Programme for SMEs, COM(1999)319 final of
29.06.1999.

38

consideration were reflected in the formal conclusions of the seminars. Subsequent
contacts have confirmed that there is an interest in following up the initial discussion and
establishing an on-going debate about an exchange of best practice and the promotion of
coherence and quality in the services in question. This interest
is reflected in the
arrangements for the discussion groups that have been established as part of the Internet
provision for concerted action. This builds on developments that are taking place within
the organisations concerned, where issues to do with the quality of service provision are
already a matter of high interest. Providing the opportunity for this work on the definition
of best practice to reach a wider audience will become a major feature of the programme
for concerted action over the next period.

It is important, however, that these developments are seen in the context of the on-going
programme of work of the Concerted Action Steering Group. Reference was made in
section 2 to the two working groups on the methodology of best practice and on the
visibility and take-up of support services. These working groups are both dealing - from
different angles - with the question of how to establish objective criteria for judging best
practice. On the one hand, the definition of best practice can be approached by the
iterative process of publishing ‘good practice’ and inviting the professional audience to
cite better practice. This is the approach inherent in the debates to be conducted through
the Internet site. On the other hand, it may be possible to identify a priori the criteria by
which best practice is defined and to apply these criteria in establishing benchmarks for
service delivery performance in a range of support services.

The working groups are pursuing analysis leading in this direction. In fact, the two
approaches are intended to feed off each other and lead to a rapid arrival at a set of
performance indicators that can serve as reference points for definitions of quality
standards of whatever form, professional codes of conduct or other instruments for
delivering first-class quality support services for enterprises.

The interaction between these two approaches to the definition of best practice is not only
of significance in terms of the methods applied. The Concerted Actions have developed an
approach that
is highly suitable to work where the application of the principle of
subsidiarity is not only a constitutional requirement, but a guarantee of effectiveness. The
input of the Member State authorities into the establishment of fundamental criteria for
the process of objectively defining best practice will allow them to determine the direction
of the debate among professionals. In turn this should ensure that the recommendations
that arise are applicable right across the European Union and can be taken up by the
Member States.

These developments will take us beyond the essentially subjective approach to best
practice definition inherent in the earlier Concerted Actions. The simple presentation of
interesting ideas and practices at large scale fora certainly has its place. The inspirational
value derived from seeing how colleagues elsewhere tackle familiar problems is an
important motivational factor. However, it also has its limitations and it is now clear that
the growing concern for a professionalism in support service delivery means that the
definition of best practice has to be more systematic.

Of course, in referring to the next phase of concerted action, it should be borne in mind
that this process of co-operation between Member States does not proceed by discrete
jumps. Many of the moves to provide a more substantial underpinning for concerted
action are already under way. Nor do the Concerted Actions operate in a vacuum. It is

39

also necessary to take into account other important developments in Enterprise and
related policies. Among these, the BEST Action Plan has set a certain course In addition
the annual National Action Plans on Employment, which,
in relation to the
entrepreneurship pillar,
report on on-going and planned activities to improve the
entrepreneurial climate, also have to be taken into account.

The Concerted Actions are at a point where there is not only a need to recognise the
developments indicated by their own internal logic, but also to allow them to make an
effective contribution to these other important European initiatives. In fact, the BEST
Action Plan already envisages such a contribution and, since the motivation for the
Concerted Actions was initially, and still remains, similar to that behind both BEST and
the specific pillar on entrepreneurship in the Employment Guidelines, the links are not
difficult to establish.

The precise form of further developments is outside the scope of this Report. They will
have to be determined in conjunction with the other elements that will together make up
Community Enterprise policy after the expiry of the current Multi-annual Programme.
However, it is clear that what the Concerted Actions can contribute is a distinctive and
increasingly sophisticated approach and methodology. Together with the detailed record
being accumulated of important changes across Europe in central areas of Enterprise
policy, concerted action promises to continue to be a significant part of the efforts of the
European Union and the Member States to develop and implement a coherent strategy for
encouraging growth and competitiveness through strong and dynamic enterprises.

Annexes

Annex 1:

Programme of Concerted Action Events

Annex 2:

Helping Businesses Start-up – A’Good Practice Guide’ for Business
Support Organisations

40

Annex 1

PROGRAMME OF CONCERTED ACTION EVENTS

Start-up

Growth

Transmission

Subsequent Action

Business
Environment

Paris ‘95

Support
Measures

Madrid ’95

Baden ’98
Helsinki ’99

Lille ‘97

Stockholm
Madrid
Helsinki

Paris
Copenhagen
Athens

Dublin ’96

Rome

Visibility &
of
Take-up
Services

Commission
Recommendation &
Communication*
Seminars,
Dissemination
Good Practice
Start-ups,
Working Group on
Best Practice
Seminar,
Working Group on
Visibility & Take-up

of
on

Commission Recommendation on Improving and Simplifying the Business

*
Environment (22/04/97).
Communication of the Commission on the Transfer of Small and Medium-sized
Enterprises (28/03/98).

European Commission

Annex 2

Helping Businesses Start-up

A ‘Good Practice Guide’ for Business Support Organisations

42

Introduction

The diversity that characterises the European Union is, in many areas, also one of its
major strengths. This publication is helping to launch a process that will exploit this
strength for the benefit of the growing number of small and medium-sized enterprises that
are the driving force of the modern European economy.

Most enterprises require assistance at some stage in their development. This is particularly
the case for enterprises at the beginning of their life. There is now a lot of evidence that
the right environment and the right type of information and advice at this stage can help
both to launch the business successfully and also to ensure that it survives the difficult
early years.

In this publication you will see the results of a programme of consultations on business
support measures conducted as ‘Concerted Actions’ between the Member States of the
European Union. Some twenty examples have been identified of good practice in
providing assistance to start-ups in the areas of training and information, finance and
through direct support in the form of incubators. A short description is provided of each
‘good practice’ along with sources of further information, particularly relating to the
seminars where the case was initially presented and the internet sites of the organisations
concerned.

I hope these examples of good practice are of interest to all involved in business support
measures, but especially to the professionals working directly with enterprises and helping
them to develop their business. It is clear that there are numerous other examples of good
or even better practice known by people with this practical experience. Indeed, part of the
purpose of this publication is precisely to encourage a feedback of information on other
examples and a debate on their respective merits. If you are a professional involved with
business support measures, I hope that you will actively follow this debate. Details of its
organisation are provided in the next few pages.

Learning from each other, adapting each other’s best practices with a view to improving
existing support measures, these are the ways that across Europe we can build truly
professional support services for enterprises with the highest possible standards of quality.
I recommend this publication to you as an important contribution to this process.

43

Helping Businesses Start-up

A ‘Good Practice Guide’ for Business Support Organisations

New enterprises bring innovation and vitality to modern economies. They allow new
products and services to find their way rapidly on to the market and new techniques and
processes to be introduced flexibly. In this way, they create employment opportunities for
a growing proportion of the working population. The creation of new enterprises is
therefore a policy priority for all of the Member States of the European Union.

When starting up, enterprises need the right conditions in which to flourish. They also
often look for external guidance and assistance. Sometimes this is provided informally by
friends and acquaintances. But when professional assistance is sought, this is often from
one of the wide range of business support organisations that exist across Europe, many of
which have services which are specifically dedicated to assisting start-ups.

In many instances this assistance can make the difference between success and failure. In
any event, new entrepreneurs certainly expect a service that is easily accessible and
adapted to their needs and is of a high quality. This is no more than they deserve.

Many of the services provided are already highly professional. There is a lot of good
practice. But even the best business support organisations know that they can learn from
the experience of others and particularly from similar organisations elsewhere in Europe.

The purpose of this publication is to help to bring improvements in the broad range
of support to small and medium-sized enterprises by promoting the spread of good
practice.

There is broad agreement about principles. The BEST Report43, for instance, which has
the necessary
been widely welcomed, makes a number of recommendations about
improvements in the business environment and in business support services. This current
publication, however, takes the process further by pointing to specific examples that
illustrate how, in the case of support measures for start-ups, the principles are being put
into practice.

These examples have been gathered through a programme of co-operation in enterprise
policy between the Member States of the EU, known as ‘Concerted Action’. In this
programme, the European Commission has helped the Member States to organise an
extensive exchange of experience in areas that are crucial for the success of enterprises
and for the competitiveness of the European economy.

In a series of fora and more restricted seminars the issues for start-ups have been
identified in the areas of training and information, access to finance and the provision of
direct support in the form of incubators. Practitioners and specialists nominated by the
Member States have participated in debates and have explained how their organisations
have developed high quality provision in these areas.

43

Report of the Business Environment Simplification Task Force, Office for the Official Publications
of the European Communities ; Luxembourg 1998. ISBN 92-828-3418-2.

44

A number of the cases cited in the course of the Concerted Action programme are
outlined below. Moreover, reference is made to sources of further information on these
‘good practices’, both in the reports of the seminars in which they were presented and,
where available, in relevant Internet sites.

The selection of the particular cases listed was conducted on the basis of the conclusions
of the seminar debates, from which the most important issues for start-ups were identified.
The Commission has worked together with the Member States to establish which
practices illustrate the point at issue clearly and are worthy of further consideration.

It is hoped that the good practices cited will be of interest in their own right and will
stimulate reflection and change among support agencies that have a responsibility for
business start-ups. However this publication is only a beginning. It is clear that there are
many other examples of good practice. The intention is that a much broader debate will be
initiated in which information on these other practices will be provided and their
respective merits considered. This, in turn, should lead to a much wider exchange of good
practice.

Further information about good practice identified through the Concerted Actions is to be
found on the European Commission’s Web site at:

http://europa.eu.int/comm/dg23/index.htm

In particular, up-to-date information on the good practice cited below and on the other
cases presented at the Concerted Actions fora and seminars can be found.

However, this site also offers to business support organisations and to others interested in
enterprise policy:

*

*

the possibility of further investigation into initiatives and policies of the
Member States of the European Union,
debate on best practice in a wide range of support measures through a
series of discussion groups.

The discussion groups in particular will be pushing forward the debate about best practice
and standards in support services and the broader range of support measures and, after a
pilot phase, will be seeking the active involvement of an ever wider group of professionals
in the provision of support measures. Those who wish to follow this debate or to make
their own contribution should look at the Discussion groups on the Concerted Actions
home page.

Further developments are under way, both in terms of identifying good practice in support
for enterprises during other phases of their life cycle and in terms of enhancing the web
site as a source of information and inspiration for those responsible for providing
enterprises with the support they require. If you have a professional interest in helping
enterprises achieve success, make a point of watching the developments in this area and
see if you can learn from the ideas and practices of your colleagues across Europe.

45

Twenty Examples Of Good Practice

Measures to assist business start-ups range from developing the right motivation at school
and providing a conducive physical environment for bringing a business idea to fruition,
through to making available very particular types of information and advice and giving
access to the right type of finance.

The following examples illustrate how, across the range of support measures, it is possible
to provide effective assistance to start-ups. Together they represent a package of
measures, underlining the point that start-ups have a range of needs and that they will
succeed best if their support is both comprehensive and of a high quality.

46

DISSEMINATION OF GOOD PRACTICE RESULTS
TRAINING AND INFORMATION FOR START- UPS (STOCKHOLM)

Training is one of the essential prerequisites to the creation of an enterprise, and to its
survival. In recent years, a large number of countries, institutions and organisations
have developed training programmes targeted at entrepreneurs. In addressing this issue,
the Stockholm seminar aimed to present some of the most successful
training
programmes, and to make a contribution towards improving training facilities
throughout Europe.

Further information on the following examples can be found in Training for Business
Start-ups, Final report of the Stockholm seminar, 4-5 May 1998

1.

A culture of entrepreneurship

Issue:

A culture of entrepreneurship needs to be encouraged, particularly among
young people, by promoting enterprise in the school curriculum and
encouraging a more positive perception of entrepreneurs, including those
who do not succeed initially. This needs to be supported by appropriate
teaching materials and educational facilities.

Good practice:

The Ministry of Education in Denmark has set up a programme to promote
entrepreneurship in the education system. This programme is known as the
“Handlingsprogram for dansk selvstaendighedskultur:
Ivaerksaetteri og
innovation” or “ Action Plan for Promoting a Culture of Entrepreneurship in
Denmark: Entrepreneurship and Innovation.” Over a 2-year period, 30-40%
of young people have received training in entrepreneurship, ranging from
primary and lower-secondary school to university and vocational levels. 200
projects have been implemented, which means that facilities and teaching
materials have been developed for the whole education system. Teachers
have received particular training in entrepreneurship. An evaluation of the
programme shows that, after receiving the training, pupils and students have
been much more motivated to start their own business or to work in an SME.

47

Organisation:

Contact details:

The Danish Ministry of Education

Jørgen Balling RASMUSSEN

Undervisningsministeriet
Frederiksholms Kanal 25F
1220 Copenhagen K
DENMARK
Tel: +45 33 92 50 00
Fax: +45 33 92 55 47
E-mail: Joergen.Balling.Rasmussen@uvm.dk

2.

Training the Trainers

Issue:

To bring about a change of culture in the school system and in higher
education, teachers, academics and trainers must themselves change their
attitudes and approach. They can be assisted in making this change.

Good practice:

In the “Trading Places” project, the Centre for Enterprise Leicestershire in
the UK works to promote interaction between educational institutions, the
business community and business support organisations. The scheme
basically offers academics the chance to change places with business people
for part of the week. They thus gain direct experience of adapting their
academic knowledge to particular small business problems. Entrepreneurs are
given the opportunity to work within an academic institution and to share
their experience of managing an SME with students. The accumulated
experience of many such exchanges is leading to a collection of case studies
that will be available for teaching purposes across the region, to a longer
term modification of teaching programmes, and to long-term collaborative
partnership.

48

Organisation:

Contact details:

Centre for Enterprise Leicestershire

Paul HANNON

The Centre for Enterprise
The Innovation Centre
49 Oxford Street
Leicester
LE1 5XY
UNITED KINGDOM
Tel: +44 (0)116 250 6068
Fax: +44 (0)116 250 6069
E-mail: centforent@webleicester.co.uk

Further information:

Report: Trading Places - Academics in SMEs project.
Internet: http://www.centreforenterprise.co.uk (under development).

3.

Promotion of Enterprise in Higher Education

Issue:

Universities and other institutions of higher education could do a lot more to
encourage entrepreneurship among their students.

Good practice:

The University of Twente in the Netherlands has developed an infrastructure
for stimulating, nurturing and supporting the entrepreneurial spirit among its
students. Its TOP programme directly supports students starting enterprises
with facilities, mentoring and interest-free loans. But the University also tries
to see that entrepreneurial attitudes play a part in its intellectual life, in the
courses it offers and in its encouragement of experimentation with
enterprising projects.

49

Organisation:

Contact details:

University of Twente

Dr van der SIJDE

Jan van BENTHEM (Project manager TOP-projects)
Liaison Group University of Twente
P.O Box 217 - 7500 AE ENSCHEDE,
THE NETHERLANDS
Tel: +31 534894699
Fax: +31 53 4893360
E-mail: j.w.l.vanbenthem@lg.utwente.nl

Further information:

Report: An Infrastructure for Academic Entrepreneurship.
Internet: http://www.utwente.nl

4.

Coherent and Practical Training Support

Issue:

Start-ups need a coherent and practical ‘package’ of training support, that is
easy to access.

Good practice:

The “package” of
training measures “Training for Business Start-up,
Anytime, Anywhere”, is a distance learning programme, developed on the
framework provided by the national “Entreprendre en France” network. It is
offered by the six Chambers of Commerce and Industry of Poitou-Charentes
in France, in association with the CNED (National Centre for Distance
Learning) the Agency for Enterprise Creation and CEPAC Atlantic Centre.
Training modules help the entrepreneurs to analyse their own capabilities, the
project feasibility and the necessary steps for the initial development of the
business. A business project dossier, including a business plan, is prepared
and close support is provided by advisors from the Chambers of Commerce
and Industry and the professional associations belonging to the Entreprendre
en France network. The training material is produced and marketed through
the CNED and is available in paper and electronic formats.

50

Organisation:

Contact details:

CEPAC Centre Atlantique

Madame Maryvonne BOULESTIN
CEPAC Centre Atlantique
10 place du Temple
F-79000 Niort
FRANCE
Tel: +33 5 49287970
Fax: +33 5 49245711

CNED
Téléport 4 BP 200
F-86980 Futuroscope Cedex
FRANCE
Tel: +33 5 49499494

Further information:

Report: Training for Starting a Business, at Anytime, Anywhere
Internet: http://www.cned.fr

5.

The Use of Information Technology

Issue:

Information Technology can provide flexible access to training for potential
entrepreneurs and make it more appealing and more informative.

Good practice:

The ‘Young Enterprise’ network in Sweden, like its counterparts elsewhere
in Europe, offers experience of setting up and running a company to young
people between the ages of 16 and 20. 75% of Sweden’s ‘gymnasium’
schools participate in the scheme. Recently, interactive training material has
been provided for the students by means of a CD-ROM, which was widely
circulated and is easily adaptable.

51

Organisation:

Contact details:

Young Enterprise Sweden

Johan CARLSTEDT

Young Enterprise Sweden,
c/o Industriförbundet
Box 5501
S-11485 Stockholm
SWEDEN
Tel: +46 8 7838068
Fax: +46 8 6624176
E-mail: johan.carlstedt@industriforbundet.se

Further information:

Report: A Description of Young Enterprise Sweden.
Internet : http://www.ungforetagsamhet.se

6.

Help for Women Entrepreneurs

Issue:

Certain groups of entrepreneurs, especially female entrepreneurs,
particular problems and require particular types of training.

face

Good practice:

Among the numerous examples of specific training support for women, the
assistance provided by the Portuguese organisation GDO addresses the
problem of accessing bank credit. Women are trained both to present their
own case effectively to the bank, and to have a better appreciation of the
banks’ expectations. Assistance is also given with the negotiation of rates and
guarantee conditions.

52

Organisation:

GDO

Contact details:

Luis Alberto FERNANDES

GDO
Rua do Borja n°55 – 2a C/V DTA
1350-045 LISBOA
PORTUGAL
Tel: +351-21-3979977/78
Fax: +351-21-3979978

Further information:

Report: Training Women in Negotiations with Banks.

53

DISSEMINATION OF GOOD PRACTICE RESULTS
FINANCE FOR START- UPS (MADRID)

The Madrid seminar aimed to deepen the analysis of new financial support measures for
the creation of enterprises in the different Member States. In centring the debate on
financial mechanisms for start-ups, it was recognised that this factor is still one of the
principal barriers to the development of entrepreneurial projects. The exchange of best
practice between Member States can help to reduce such financial obstacles.

Further information on the following examples can be found in Finance for SMEs in
the Start-up Phase, final Report of the Madrid seminar, 22-23 June 1998

1.

The Institutional Framework

Issue:

There needs to be a financial agency whose prime responsibility is to ensure
that start-ups have access to finance.

Good practice:

The Deutsche Ausgleichsbank concentrates on the promotion of start-ups
and enterprises in the early years of their operation. It offers a comprehensive
range of both financial and advisory services to potential entrepreneurs.
Financial services range from promotional loans to equity finance, but these
are complemented with an increasingly diverse set of support services.

Organisation:

Contact details:

Deutsche Ausgleichsbank

Geerd WURTHMANN

Deutsche Ausgleichsbank - Kreditsekretariat
Ludwig-Erhard-Platz 3,
D-53179 Bonn
GERMANY
Tel: +49 2 228312947
Fax: +49 2 228312356
E-mail: dtabonn@t-online.de

54

Further information:

Report: The Development of Financial Aid to the Benefit of New Business Start-ups
Internet: http://www.dta.de

2.

Presenting the Entrepreneur’s Case

Issue:

There is a need on the part of some entrepreneurs to present themselves more
effectively to banks, with better and more coherent information about their
actual or prospective activities.

Good practice:

In Belgium, Générale de Banque assists prospective entrepreneurs with a
‘Starter’ service which includes drawing up a business plan and analysing the
business project. This basically involves the bank helping customers to
present themselves.
The target group is people with sufficient own funds who are considering
starting up or taking over a company.
Those selected for this scheme have to accept professional advice and
assistance for the first three years. This advice is furnished by an approved
consultant chosen by the customer from a list provided by the bank.
In order to improve the organisation and management of this assistance, the
bank has set up a group of advisors from universities and the business world -
they are responsible for
training them and co-
recruiting consultants,
ordinating assistance programmes for those starting up in business.

Organisation:

Contact details:

Générale de Banque

Philippe GOOSSENS

Générale de Banque Corporate Finance
Warandeberg 3
B-1000 Brussels
BELGIUM
Tel: +32 2 5184576
Fax: +32 2 5184779

Further information:

Report: Bank Finance.
Internet: http://startersfr.gbank.be

55

3.

Relationship Management by the Banks

Issue:

A welcome development in the banking sector is the greater focus on the
particular circumstances of SME clients. Customer-friendly practices,
particularly ‘relationship management’, are in the interests of both banks and
SME clients. For SMEs the advantage is in being assessed on the real
strengths of the business rather than according to some abstract formula.

Good practice:

The Enterprise Support Unit of the Bank of Ireland has led the introduction
of relationship management to the benefit of both the bank and clients. This
approach is complemented by a range of financial and advice services geared
to the particular circumstances of start up and developing enterprises. They
also include "First Step" loans, which are interest-free for a 3 year period.

Organisation:

Contact details:

Bank of Ireland

Barry MC NAMARA

Bank of Ireland
Lower Baggot Street
Dublin 2
IRELAND
Tel: +353 1 6615933.
Fax: +353 1 6763493

Further information:

Report: Recent Developments in SME Financing.
Internet: http://www.bankofireland.ie (under business banking).

4.

Micro-loans

Issue:

The provision of micro-loans, for relatively small amounts which often do not
require collateral, needs to be increased.

56

Good practice:

In Finland, Finnvera plc (the risk financing expert) provides micro-loans
especially for micro-enterprises and small businesses set ups, which offer
employment to not more than five people. This loan can be granted to all
enterprises regardless of their legal form. A micro-loan cannot exceed FIM
100,000 (
16,800). The interest rate of a micro-loan is lower than on normal
risk loans and that of a loan for women entrepreneurs is even a little lower.

€

Organisation:

Contact details:

Finnvera

Martin INGMAN

FINNVERA Liaison Office
58, Av. Des Arts
B-1000 Bruxelles
BELGIUM
Tel: +322 5489614
Fax: +322 400709075
E-mail: martin.ingman@euronet.be

Further information:

Report: Bank Finance for Start-ups: An Outsider’s View.
Internet: http://www.finnvera.fi

5.

Networking with business angels

Issue:

Increasing the involvement of Business Angels in SME financing, particularly
by more effective networking with SMEs with investment potential, should
be encouraged.

Good practice:

National Business Angels Network supports businesses with growth
potential, who may benefit from equity funding and the management input of
private investors. Similarly, the network provides a service to business
angels (private investors) who are looking to invest their money and time in
growth businesses. It has over 400 registered investors, offering funds and
expertise and a nation-wide network of associates.

57

Organisation:

Contact details:

National Business Angels Network

Ms. Susan KRANTZ

National Business Angels Network
40-42 Cannon Street
London EC4N 6JJ
UNITED KINGDOM
Tel: +44 171 3292929
Fax: +44 171 3292626
E-mail: info@nationalbusangels.co.uk

Further information:

Report: LINC (Local Investment Networking Company).
Internet: http://www.nationalbusangels.co.uk

6.

Equity Markets

Issue:

It is important to further develop equity markets suitable for SMEs, not least
as a means of creating an exit for risk capital investments.

Good practice:

The ‘Neuer Markt’ in Germany is an interesting example, similar to the
‘Nouveaux marchés’ elsewhere, but illustrating the possibility that such a
development can take place even in the German financial market which has
traditionally been resistant to this type of share trading.

58

Organisation:

DIHT

Contact details:

Dr Torsten SLINK

DIHT
49 A, Boulevard Clovis
B-1000 Brussels
BELGIUM
Tel: +32 2 2861611
Fax: +32 2 2861605
E-mail: tslink@bruessel.diht.ihk.de

Further information:

Report: Summary for the seminar “Finance of Enterprises in the start-up phase.
Internet: http://www.neuermarkt.de/INTERNET/NM/NM3.nsf

59

DISSEMINATION OF GOOD PRACTICE RESULTS
INCUBATORS AND SUPPORT STRUCTURES FOR START- UPS
(HELSINKI)

The business incubator industry is a powerful tool for the creation of SMEs, for
supporting them in their start-up phase, and for accelerating their growth rate. The
Helsinki seminar therefore aimed to provide an extensive picture of the present state of
the European incubator industry, through the exchange of good practices and new ideas
between the Member States.

Further information on the following examples can be found in Best Practices in
Incubator Infrastructure and Innovation Support, Final report of the Helsinki seminar,
19-20 November 1998.

1.

The Right Combination of Services

Issue:

It is now clear that if incubators are to be successful in promoting highly
innovative enterprises, there must be the right package of services on offer.
These must
include good basic facilities, working closely with research
centres and technology institutes, well-structured access to risk capital and
scope for networking at all levels from the local to the international.

Good practice:

IZET Innovation Centre in Germany is the activity of Gesellschaft für
Technologieförderung Itzehoe mbH, a non-profit company co-founded by the
City of Itzehoe and the county of Steinburg.
It offers enterprises a
professional infrastructure, a flexible support service and expert advice.
Technology transfer is undertaken with the neighbouring Fraunhofer-Institute
for Silicon Technology ISIT, as well as with other universities and research
institutes. In 1998 IZET became a partner of the centre of competence in
Electronic Commerce for Northern Germany. Training is provided in
business planning, entrepreneurship, and appropriate financing strategies.
This includes assistance for securing venture capital. IZET is active in a
regional network of ten incubators in Schleswig-Holstein. The centre also
initiates and takes part
transfer
projects and standardisation projects, in collaboration with other technology
centres across the EU.

in European research and development

60

Organisation:

Contact details:

IZET Innovationszentrum Itzehoe

Dr Ingo HUSSLA

Gesellschaft für Technologieförderung Itzehoe mbH
Fraunhoferstr. 3
D-25524 Itzehoe
GERMANY
Tel: +49 4821 778 600
Fax: +49 4821 778 500
E-mail: info@izet.de

Further information:

Report: Innovation Support in Incubator Centres of Northern Germany
Internet: http://www.izet.de

2.

Quality in Service Delivery

Issue:

There is now sufficient experience with incubators to know how they should
fit into the process of local economic development, what should be their core
services and what standards they should achieve in delivery of these services.
Pooling of this experience should lead to high standards everywhere.

Good practice:

As part of an on-going consideration of quality issues, the French Association
of Directors of Business Incubators (ELAN),
in collaboration with the
Ministry of the Economy, Finance and Industry, initiated a process leading to
the French standards agency AFNOR publishing a standard on the functions
together with an associated
and services of incubators (NF X50.770),
certification regulation (NF 248). The standard, which is intended as a
training tool, aims to ensure the most effective support possible for
enterprises. Among the responses to this initiative, the network of incubators
in the Aquitaine region have conducted a ‘pre-audit’
to identify the
adjustments necessary for a certification of their members. These incubators
are currently in the process of certification. Bordeaux Productic has been
certified as conforming to the norm NF X50.770 since January 1999.

61

Organisation:

Contact details:

ELAN (national)
Bordeaux-Productic (regional)

Mme Françoise BOIVERT
Olivier PRUDHOMME

Bordeaux-Productic
Site Technologique de Marticot
33610 Cestas
FRANCE
Tel: +33 5 56 21 59 59
Fax: +33 5 56 78 89 13
E-mail: fboivert@bordeaux-productic.alienor.fr

Further information:

Report: The Networking Strength in Professional Organisation in Incubators:

the

French NORM.

3.

Effective Technology Transfer

Issue:

The effective transfer of technology from universities and research institutes
to commercial applications is a commonly stated, but elusive objective.
Suitable means for consistently achieving this objective are a major concern
for incubators.

Good practice:

Cambridge boasts a concentration of
science- and technology-based
companies that is unique in Europe. Since St John's Innovation Centre was
set up there as a technology incubator in 1987, over 100 companies have
graduated from the site. It now houses 54 companies, with around 750
employees. The centre provides a support environment for people whose
background is in science and technological research, with the emphasis on
helping them to acquire the business skills necessary to supplement their
technical abilities. Research indicates that only 15 of the 154 businesses
assisted by the centre have ceased trading, compared to the 70 or so that
might have statistically been expected.

62

Organisation:

Contact details:

St John's Innovation Centre

Walter HERRIOT

St John's Innovation Centre
Cowley Road
Cambridge CB4 4WS
UNITED KINGDOM
Tel: +44 (0)1223 420252
Fax: +44 (0)1223 420844
E-mail: wjherriot@stjohns.co.uk

Further information:

Internet: http://www.admin.cam.ac.uk/univ/innovation/2.html

4.

Scope for Incubators in New Sectors

Issue:

Although incubators are often thought only to involve science-based
companies, in fact, the model has a number of applications in other areas.

Good practice:

The Travel Park Incubator Network (currently Helsinki, Espoo, Oulu,
Savonlinna and Vaasa) operating in Finland is a business incubator network
dedicated to the Tourism sector. The aim of the Travel Park is to help some
to develop over a two-year period into
60-80 enterprises each year
functioning and profitable small companies capable of offering high quality
and innovative services for tourists and other travellers. There is close and
mutually beneficial co-operation between the Travel Park and major Finnish
travel/tourism related companies.

63

Organisation:

Contact details:

Travel Park Incubator Network

Jari AURANEN

Travel Development Centre Finland Ltd
Travel Park Incubator Network
P.O.Box 8, Pajuniityntie 11
FIN-00321 HELSINKI
FINLAND
Tel: +358-9-5807 8368
Fax: +358-9-5807 8375
E-mail: smak.helsinki@haaga.fi

Further information:

Report: Theme Tourism and Services
Internet: http://www.haaga.fi/smak/travelpark

5.

The Value of Networking for Incubators and their Clients

Issue:

For incubators to be cost-effective it is crucial that they are linked into local
innovation networks, which encourage interaction between new and existing
enterprises and enable incubators to exploit to the fullest possible extent co-
operation in support services and areas such as high quality training.

Good practice:

The 17 incubators in the Helsinki region, which since 1995 have created 760
new knowledge-based companies and 1300 jobs, work together as a network
with groups of incubators developing training programmes, examining quality
finding better ways to identify potential entrepreneurs. This
issues or
networking,
involving the local community and medium and large-scale
enterprises, is part of the reason for the cost-effectiveness of this policy
initiative.

64

Organisation:

Contact details:

Uusimaa Employment and Economic Development Centre

Taavetti MUTANEN

Employment and Economic Development Centre for Uusimaa
PO Box 15
FIN-00241 Helsinki
FINLAND
Tel: +358 9 2534 2481
Fax: +358 9 2534 2400
E-mail: taavetti.mutanen@te-keskus.fi

Further information:

Report: Incubators in Helsinki region
Internet: http://www.yrityshautomot.net

6.

Mutual Support at a National Level

Issue:

Incubators facing similar problems to those of their colleagues can address
important
issues such as the quality of services and the promotion of
technology transfer by collaborating at a national level.

Good practice:

The Spanish association of Business and Innovation Centres (ANCES) assists
its members to implement co-operation systems between the enterprises
supported by these centres, an exchange of experience and Benchmarking in
network co-operation, total quality management, and to better exploit the
potential of technology developed in the universities. It also helps to promote
spin-off activities from existing companies. This is largely achieved from the
direct input of the members.

65

Organisation:

Contact details:

Asociación Nacional de Centros Europeos de Empresas e
Innovación Españoles

D. Jesus CASANOVA

Asociación Nacional de Centros Europeos de
Empresas e Innovación Españoles
Avda. Benjamín Franklin, 12
46980 Valencia
SPAIN
Tel: + 34 96.199.42.00
Fax: +34 96.199.42.20
E-mail: ances@ances.com

Further information:

Report: BICs Networking for Co-operation - the Spanish Model (ANCES).
Internet: http://www.ances.com

7.

The Need for a Balanced Funding of Incubators

Issue:

In the early stages incubators suffer from many of the same problems as their
clients. Like any start-up, an incubator at first has no customers, no cash flow
and no critical mass. While private funding should be encouraged, it takes
many years to achieve break-even and during this time there is a continuing
need for public funding.

Good practice:

The Sophia Antipolis Science Park in France is Europe’s largest with an area
of 2,300 hectares, 1,200 companies and 20,000 employees. The International
Centre for Advanced Communication (CICA), which now accounts for 52 of
these companies and some 800 employees, was launched in 1987 with
support from the local community. CICA is clearly a success in terms of its
basic objectives of promoting IT-based companies. However, in spite of a
steady increase in private-sector financing, CICA’s reliance on its basic public
funding is likely to continue for some years to come.

66

Organisation:

Contact details:

International Centre for Advanced Communication (CICA)

Alain ANDRE

CICOM Organisation, CICA
2229, route des Crêtes
Sophia Antipolis
06560 Valbonne
FRANCE
Tel: +33 (0)4 92 94 20 00
Fax: +33 (0)4 92 94 20 20
E-mail: andre@cica.fr

Further information:

Report: Incubator finance - case example from France
Internet: www.cica.fr

8.

The Potential of the Virtual Incubator

Issue:

A virtual incubator, making use of modern information and communication
technologies, offers many advantages, not least among which is the removal
of the need to invest heavily in land or buildings.

Good practice:

technology park,

telephone operators etc) at

implemented in the Austrian province of
The virtual
Carinthia through the Lavantal Innovation Centre, offers a limited number of
services (conference room facilities,
the
Innovation Centre, but many more services are now offered through
links. These include accounting services, video
computer and Internet
conferencing, information and advice on legal matters, marketing, quality and
standards. Active co-operation between the enterprises is also encouraged.
The capital that would have been tied up in premises is now to be partially
invested to replace rental income, but also partially used to provide start-up
capital.

67

Organisation:

Contact details:

Lavanttal Innovation Centre

Dieter RABENSTEINER

Lavanttal Innovation Centre
AUSTRIA
Tel: +43 43 52 35 911
Fax: + 43 43 52 35 851
E-mail: rabensteiner@liz.at

Further information:

Report: Financing a regional virtual technology park
Internet: http://www.liz.at

68