Communication from the Commission to the Council, the European Parliament, the Economic and Social Committee and the Committee of the Regions - Helping Smes to "Go Digital"
Date: 2001-03-13
Institutions: European Commission
Subjects: EU Member State, digitisation, electronic commerce, new technology, small and medium-sized enterprises

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 13.3.2001
COM(2001)136 final

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

HELPING SMES TO
"GO DIGITAL"

EN

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

HELPING SMES TO "GO DIGITAL"

TABLE OF CONTENTS

1.

2.

3.

4.

INTRODUCTION ......................................................................................................... 4

THE GODIGITAL INITIATIVES ..................................................................................... 4

E-BUSINESS FOR SMES: SUBSTANTIAL OPPORTUNITIES, YET CHALLENGES AHEAD....... 5

GODIGITAL: PRIORITIES, ACTIONS AND TIMING .......................................................... 8

Action line 1:

Favourable environment for electronic business and entrepreneurship .............. 8

Action 1:

Benchmarking of national and regional strategies in support of....................
e-business .................................................................................................. 9

Action 2:

Measuring of take-up of ICT and e-business .............................................. 9

Action 3:

Improve access to information and collect feedback for policy making ........
purposes in the area of electronic commerce legislation ........................... 10

Action 4:

Electronic Business Interoperability ......................................................... 11

Action line 2: Take-up of electronic business.................................................................... 11

Action 5:

Promoting the awareness for going digital................................................ 12

Action 6:

Electronic commerce take-up ................................................................... 12

Action 7:

Provision of a loan guarantee facility for SMEs........................................ 13

Action 8:

Promoting better use of Structural Funds.................................................. 13

Action Line 3: ICT skills.................................................................................................... 14

Action 9:

Supporting industry-led initiatives for new ICT curricula ......................... 15

2

Action 10:

Creating an ICT Skills Monitoring Group with Member States............... 15

Action 11:

Launching a SMEs trainee programme ................................................... 15

5.

THE NEXT STEPS ...................................................................................................... 16

3

1. INTRODUCTION

The eEurope 2002 Action Plan was endorsed by EU Member States at the Feira European
Council in June 2000. The Action Plan's objective three "Stimulate the use of the Internet"
includes an action to encourage SMEs to ‘go digital’. The Plan1 identifies small and medium-
sized enterprises (SMEs) as critically important to efforts to bring about eEurope, and sets
specific targets to prepare them for its advent. The objective is to:

“encourage SMEs to 'Go Digital' through co-ordinated networking activities for the exchange
of knowledge on best practices, e-commerce readiness and benchmarking, ‘reference centres’
could help SMEs to introduce e-commerce into their business strategies”.

In response to the eEurope 2002 Action Plan,
GoDigital initiatives aiming at:

the Commission will undertake specific

–

–

–

–

identifying the main obstacles SMEs face as they engage in e-business,

proposing specific actions to help SMEs “go digital”, in particular by building on
existing policies and initiatives,

ensuring consistency among the various policies and initiatives to support SMEs
going digital at the European, national, regional and local levels, and

learning from practical experience and to benchmark various strategies to help SMEs
to go digital.

The objective of this Communication is to identify the specific SME needs to fully reap the
benefits of e-business and to present specific GoDigital initiatives to be implemented in 2001
by the Commission. Further actions will be taken in 2002 and onwards. GoDigital can help
it cannot replace
create better conditions for SMEs to enter into the digital age, but
entrepreneurship or the enterprise that ultimately takes the decision.

2. THE GODIGITAL INITIATIVES

this GoDigital

GoDigital’s overall purpose is to put together and adapt where appropriate support activities
to help SMEs to use information and communication technologies (ICT) with best possible
efficiency. To this end,
implementation plan will build upon existing
Community programmes aimed at the specific needs of SMEs. These programmes include the
DG Enterprise’s Multi-Annual Programme (MAP), the DG Information Society’s Information
Society Technologies (IST) Annual Work Programme2, and the Structural Funds. The
implementation plan will also be linked to national and regional programmes and initiatives
with similar aims. Implementation will be flexible and decentralised, it will pursue common
objectives, and reflect the need for closer co-operation among various support instruments for
SMEs at the European level. The objective is to ensure that SMEs take full advantage of the
existing support programmes and initiatives at national and European level.

1

2

http://europa.eu.int/comm/information_society/eeurope/actionplan/index_en.htm.
As part of the European Community Research Framework Programme.

4

GoDigital’s priorities are to:

–

–

–

promote a favourable environment and framework conditions for electronic business
and entrepreneurship,

facilitate the take-up of electronic business, by making available as much as possible
research and technological development (RTD) results and enabling SMEs in every
sector to take advantage of them, and

Contribute to providing Information and Communication Technology (ICT) skills –
by alleviating shortages of these skills among SMEs, and by exploring and
developing new business skills for the new economy.

To facilitate the GoDigital initiative, the Commission will seek full support and active
participation from Member States, regional authorities, and the business community. Active
participation will be ensured through a kick-off conference in April, working groups with
Member States and the participation by regions and the business community in Commission
programmes. Ensuring that the majority of European SMEs benefit will entail exploiting
synergies between the GoDigital implementation plan and existing public and private sector
initiatives at national, regional and local levels. GoDigital will be designed as a rolling plan,
covering the next two years. Many activities, however, are expected to continue beyond 2002.
The Commission will
take stock of progress in 2001, against various GoDigital and
benchmarking measures, including the takeup of e-business and ICT among SMEs across
different Member States and across business sectors.

In the coming years, GoDigital will reach out to all SMEs interested in the digital economy.
For user-friendliness, and cross-fertilisation, the Commission has set up a dedicated Web site3
that presents all GoDigital ideas under a common logo. This site, hosted by the Commission,
offers a virtual link between all GoDigital stakeholders, and provides a forum for sharing best
practices on e-business across Europe.

3. E-BUSINESS FOR SMES:
SUBSTANTIAL OPPORTUNITIES, YET CHALLENGES AHEAD

There are now over 19 million SMEs in Europe. In most EU Member States, they make up
over 99 % of enterprises. SMEs generate a substantial share of GDP and, are a key source of
new jobs as well as a breeding ground for entrepreneurship and new business ideas. SMEs
will also in particular benefit from the lowering of entry barriers to markets as a consequence
of e-business. Hence, e-business is often described as the SMEs’ gateway to global business
and markets.

Thus, the success of eEurope is critically dependent on whether SMEs are fully engaged in
this process. Europe will only become a center of e-business if European SMEs are fully
committed to using the Internet as a leading-edge business tool.

3

http://europa.eu.int/ISPO/ecommerce/godigital and a feedback mechanism through e-mail
infso-godigital@cec.eu.int.

5

Because SMEs are more flexible in their internal organisation than larger companies, they
may often be able to adapt to changing market conditions more quickly and efficiently.
However, although Internet use figures differ among Member States and sectors, there is
generally a positive correlation between the size of an enterprise and its Internet use for
business, i.e. the smaller the company, the less it uses ICT. As a result, the preponderance of
SMEs in Europe’s economy is not matched by their use of e-business tools. (ref. table 1).
However, it should also be noted that most of the start-ups in the field of e-business are SMEs

On average, across Europe, only 42 % of SMEs have access to the Internet. In some Member
States, this is even less than the Internet penetration rate among households. Only 20 % of
SMEs use the Internet for commercial transactions. Of those that are connected, the majority
uses the Internet only for information purposes. Even in the most advanced Member States,
only a minority can handle transactions electronically (e.g. purchases, sales, electronic
auctions, e-payments). Against the background of the explosive growth of e-business world-
wide, especially in the US, these figures are alarming signs that European SMEs are not yet
fully committed to the Internet. The OECD estimates that the value of Internet transactions
doubles every 12-18 months4. European SMEs therefore risk missing important economic
opportunities.

Table 1: Use of the Internet by enterprise size, Europe-1999

Having direct access to the Internet

Distribution of product information via the
Internet

Distribution of products via the Internet

Receiving orders

Confirming orders

Paying via the Internet

Receiving payment via the Internet

Number of employees

1-9

49 %

27 %

7 %

10 %

9 %

5 %

3 %

10-49

50-249

Total

67 %

42 %

9 %

15 %

12 %

8 %

4 %

86 %

59 %

13 %

20 %

16 %

9 %

7 %

42 %

21 %

7 %

10 %

8 %

4 %

3 %

1

33 %

14 %

6 %

8 %

6 %

4 %

3 %

Co-operating in offering products or services
jointly
Source: ENSR Enterprise Survey 1999 as used in The European Observatory for SMEs – Sixth Report,

29 %

13 %

19 %

12 %

9 %

European Commission, 2000.

To help traditional SMEs “go digital”, a number of well-documented perceived “obstacles”
need to be removed5. These include:

–

4

5

Current e-climate. The volatility of “dot.com” businesses is giving rise to much
publicity and discussion. Attrition rates are much higher among e-business dot.coms
than among SMEs in more traditional businesses. This may act as a further
disincentive to SMEs. Economic failures are an intrinsic element of business life,
particularly in a fast-changing environment like the Internet. In many Member States,
strict bankruptcy laws act as a strong disincentive to risk-taking. There are failures,

OECD, Economic Working Papers 252, 2000.
See for example ENSR Enterprise Survey 1999 as used in The European Observatory for SMEs – Sixth
Report, European Commission, 2000.

6

–

–

–

–

as well as remarkable success stories. What really matters is the existence of a spirit
of “entrepreneurship”.

Regulation. Although today’s regulatory environment seems to accommodate e-
level, problems may emerge when SMEs
business satisfactorily at national
participate in e-business across borders. While efforts to harmonise legislation in
Europe should result
in a clear and predictable framework for Europe, global
consensus on such key issues as consumer protection need to be further developed .
Unlike larger companies, with their teams of lawyers and consultants, SMEs tend to
avoid the legal risks of engaging in cross-border commerce. Readily available basic
legal information, and in particular semi-standardised legal advice, is therefore of
crucial importance for SMEs who, more than any other business, need simplicity and
predictability. Similarly, low-cost access to effective alternative dispute resolution
mechanisms (ADRs) is widely perceived as a key prerequisite for engaging in cross-
border e-business.

Skills. The lack of suitable technical and managerial staff with sufficient ICT
expertise is another major barrier. SMEs critically depend on “on-the-job-
competence”. Europe’s shortage of skilled ICT and e-business professionals is now
estimated at approximately 1.9 million. This could rise to as much as 3.8 million in
20036. Some Member States have taken action to attract ICT experts from third
countries. Bringing in outside expertise is costly, and in today’s very competitive
market for ICT specialists, big companies and fast-growing ICT start-ups have a
clear advantage over “traditional” SMEs;

Technology and standards. More than any other business users, SMEs have a strong
interest in standardised and fully compatible ICT solutions that stay relatively stable
over time. At present, the complexity and the lack of robustness of many ICT
solutions are discouraging many SMEs. Where software or systems prove to be
incompatible with those of customers and suppliers, there is a high risk that ICT
investment may be lost. SMEs do business with many different clients. Yet they
often have to follow the technology and business standards set by major clients, and
hence run the risk of becoming “locked-in” to a specific technology, used by one
contractor but not by others.

Cost. The cost of setting up an e-business includes preliminary planning, procuring
hardware and/or software tools (installation, training, and subsequent reorganisation),
continuous maintenance, servicing costs and telecommunications charges. The cost
of the initial investment has dropped in recent years. However, getting the right ICT
equipment is only part of the equation. Maintenance and service costs remain critical
for many SMEs. Uncertainty about the viability of the initial investment and the
rising cost of maintenance services may reduce their willingness to undertake the
necessary investments. In addition, SMEs have to be prepared to outsource ICT
services and to acquire professional skills and use consultants to help prepare for the
organisational changes required by e-business;

This list of potential barriers clearly requires a consistent policy response. National and
European policies in many areas must aim to ensure a more favourable - and more predictable
- business environment. This is one of the key preconditions for SMEs to stay competitive,

6

EITO Report 2001.

7

successfully harness the advantages of the Internet, and reap the full benefits of e-business.
The GoDigital initiatives directly address these problems, through specific actions. The key
challenge for policy makers is still
to lower barriers to market access and foster
entrepreneurship.

4. GODIGITAL: PRIORITIES, ACTIONS AND TIMING

This Plan describes a first set of actions to be taken in support of eEurope for SMEs. These
actions will be implemented in 2001-2002, building on the Multiannual Programme for SMEs
and on the IST programme. The main focus for 2001 will be further promoting take-up of
e-business, notably through Euro Info Centres, and the benchmarking of national policies in
support of ICT and e-business. The first step to helping SMEs go digital is to learn from each
other’s experience. In the course of 2001, further initiatives will be prepared to address more
specifically the needs of SMEs in their transition towards the new economy.

ACTION LINE 1:
FAVOURABLE ENVIRONMENT FOR ELECTRONIC BUSINESS AND
ENTREPRENEURSHIP

In the Commission Communication “Challenges for Enterprise Policy in the Knowledge-
Driven Economy”7 the lack of entrepreneurship was identified as a major challenge for
Europe by comparison with its trading partners. Many companies have traditionally been risk-
averse, and may give higher priority to cutting costs in the short term than to developing new
products and new business models. As a result, most
Internet-related technology
breakthroughs and business innovations were pioneered elsewhere.

Today, e-business is opening up new opportunities for entrepreneurship. Whereas, in the early
stages of the commercial Internet, the main focus was on investing in ICT infrastructures, the
challenge now is to use the Internet as a new business tool. This does not, however, imply that
the deployment of a broadband infrastructure is sufficient. Further initiatives need to be taken
to encourage the further development of broadband infrastructure and Mobile-commerce.

E-commerce, both business-to-consumer and business-to business (B2C and B2B) are
radically changing the ways in which companies and markets are organised. To foster and
accompany these structural changes, most Member States have launched ambitious national
initiatives to stimulate entrepreneurship in general, and the use of ICT and e-business in
particular. To maximise the impact of research projects in the market and to ensure as far as
possible a level playing field for economic players, regardless of size, the Commission will
continue to support wider consensus-building efforts, at sectoral
level and through the
European Standards Organisations.

The GoDigital
initiatives must help create synergies among diverse national strategies.
GoDigital benchmarking and EU-wide policy co-ordination can add real value, by enabling
Member States to learn from each other’s experience and initiatives, as the Internal Market in

7

COM(2000) 256 final of 26.4.2000.

8

e-business takes shape, and Europe enters the new global economy. To this end, the following
actions will be taken in 2001-2002:

ACTION 1:

BENCHMARKING OF NATIONAL AND REGIONAL STRATEGIES IN SUPPORT OF
E-BUSINESS

Objective:
to describe and benchmark national and regional policies and instruments
developed for the promotion of e-business for SMEs. This will help Member States and
regions to assess their policies and identify best practices on the basis of national experience.
It should also help to identify how European funds and other EU initiatives can complement
regional and national strategies.

Implementation: Benchmarking of national and regional ICT and e-business strategies will be
carried out in close co-operation with the Member States, under the BEST 20018 programme.
Many initiatives to promote ICT and e-business, notably for SMEs, have been launched over
the past few years at national and European level. Although information about them is readily
available, the precise way they work and their impact have often not been assessed with
sufficient accuracy. There is also a need to understand the different approaches better and to
identify in which environment they work best.

Responsibility: The European Commission and Member States.

Timetable: the first phase, in 2001, will be devoted to gathering information and identifying
benchmarks. The second, to be launched in 2002, will involve assessing the information with
Member States and ascertaining best practices on the basis of the chosen benchmarks.

ACTION 2: MEASURING OF TAKE-UP OF ICT AND E-BUSINESS

Objective: to develop a comprehensive GoDigital scoreboard for measuring the take-up of
ICT and e-business by SMEs in EU Member States and across business sectors.

Implementation: DG Enterprise will develop and regularly publish a GoDigital "scoreboard",
based on a common methodology. This will be done in conjunction with the benchmarking of
national strategies in support of e-business, and supported by research projects under the
auspices of the IST Programme9. All this will provide a basis for regular discussions with
Member States. Periodic sectoral and cross-sectoral reports will analyse structural changes
and market trends in different sectors, as a result of the transition towards the “new”
economy. A series of workshops will review and validate the empirical findings and identify
appropriate policy responses.

In addition, the Commission can provide some financial support to workshops/conferences,
organised by business federations, chambers of commerce and business support networks
such as Euro Info Centres (EICs) and Innovation Relay Centres (IRCs) under the GoDigital
umbrella. The main target audience will be policy makers. Both actions – the statistical

8

9

BEST is a procedure for the progressive development of enterprise policy. It aims to identify and
exchange good practices amongst Member States and between Member States and the Commission.
An IST programme with a call for proposals on statistical tools, methods, indicators and applications for
the information society was issued in 2000. Projects resulting from this call will start early 2001. A call
for proposals on "socio-economic analysis and indicators for the information society" is envisaged for
2001.

9

scoreboard and the organisation of workshops – will be implemented under the MAP 2001
Work Programme.

Responsibility: The European Commission and Member States,
chambers of commerce, EICs, IRCs and others.

industry associations,

Timetable: starting 2001, in conjunction with the Multiannual Programme 2001-2005. The
sectoral analysis will be carried out throughout the duration of the Multiannual Programme.

ACTION 3:

IMPROVE ACCESS TO INFORMATION AND COLLECT FEEDBACK FOR POLICY
MAKING PURPOSES IN THE AREA OF ELECTRONIC COMMERCE LEGISLATION

Objective: To provide SMEs with relevant and user-friendly information and advice on legal
and regulatory issues of e-commerce, to analyse the practical problems encountered by
businesses operating in the Internal Market, and to take these into account in future policy
developments.

Implementation:

–

for

Improved information: The legal uncertainties related to cross-boarder e-commerce
transactions have already been addressed by the European Community. However, the
apparent lack of awareness amongst the SMEs about the legislation on jurisdiction
and applicable law in cross-border e-commerce transactions constitute barriers for
SMEs willing to go on-line. This calls
information
dissemination and awareness raising. In recent years the European Community has
adopted a number of legal acts to allow consumers and businesses to better benefit
from cross broder e-commerce, for example Directive (1995/46/CE) of the European
Parliament and of the Council on the protection of individuals with regard to the
processing of personal data and on the free movement of such data, Directive
(1997/7/EC) of the European Parliament and of the Council on the protection of
consumers in respect of distance contracts, and Directive (1999/93/CE) on a
Community framework for
full
implementation of the e-commerce Directive (2000/31/CE) will certainly contribute
to a more favourable and predictable business environment for e-business in Europe.

reinforcement of

In addition,

signatures.

electronic

the

Moreover, the regulation (CE) n° 44/2001, on jurisdiction and the recognition and
enforcement of judgements in civil and commercial matters, aims to establish
provisions to unify the rules of conflict of jurisdiction in civil and commercial
matters and to simplify the formalities for rapid and simple recognition and
enforcement of judgements emanating from Member States, addressing inter alia
electronic commerce in the context of the internal market.

Under the European Commission initiative “Dialogue with Businesses” an Internet
web-site has been developed (http://europa.eu.int/business) which provides practical
businesses information on a wide variety of topics in 11 languages. This web-site
will be further developed in order to cover legal aspects of e-commerce. The
“Dialogue with Business” web-site also provides links to the Euro Info Centres (EIC)
network, which has already developed expertise in this field. In order to assist with
the implementation of Go-Digital, it is proposed to set up a new E-business sector on
this web site.

10

–

Feedback: Enquiries posed by SMEs and problems they encounter while doing
business in the EU should be constantly taking into account for policy making. E-
commerce will therefore be included in the Commission’s new “Interactive Policy
Making” – initiative which aims – via the Internet- to collect spontaneous reactions
from the marketplace using existing networks (such as the EIC network) in order to
enhance the Commission’s ability to assess the impact of its policies (or the absence
of them) on the ground; to evaluate proposals for new actions, to respond rapidly and
in a targeted manner to problems or issues that emerge, and to be accountable for its
actions.

Responsibility: The European Commission, with the involvement of the EIC network.

Timetable: Completion of the new section on e-commerce for the “Dialogue with Business”-
web-site by 2001; a supportive IST project on a legal portal may start mid 2001.

ACTION 4:

ELECTRONIC BUSINESS INTEROPERABILITY

Objective:
standardisation and consensus building.

to promote interoperable electronic business solutions,

through European

Implementation: The European Standards Organisations have been invited to offer platforms
for industrial consensus -building at sectoral level, with direct participation from industry.
These should help to improve understanding of future needs for technical and business
standards for the emerging e-marketplaces, notably in the B2B area. The Commission will
organise a workshop with e-market makers, industrial fora, European standards organisations
and SMEs in Brussels. Support will continue to be provided to the implementation of the
Rolling Standardisation Action Plan of standards organisations CEN, CENELEC and ETSI.

Responsibility: The European Commission and in co-operation with industrial fora and
European Standards Organisations.

Timetable: workshop on standards for e-marketplaces by April/May 2001; Publication of a
grant theme on consensus-building initiatives in support of GoDigital by June 2001; Grants to
CEN, CENELEC and ETSI for standardisation work by June 2001.

ACTION LINE 2:
TAKE-UP OF ELECTRONIC BUSINESS

Getting into e-business remains a difficult step for many SMEs. It requires substantial
investment, critical technical and managerial skills and risks. Understanding these challenges
entails focussing the discussion on specific, sectoral and local needs. Initiatives designed to
promote take-up must be targeted at specific sectors and types of SMEs. There is no longer a
general lack of awareness of e-business. But when it comes to actually “going digital”,
hurdles remain. The Commission will organise a GoDigital campaign, not only to inform
SMEs about existing funding possibilities, but also to improve understanding of the real
problems that SMEs face, particularly in less-favoured areas and sectors.

Take-up measures in the IST Programme aim at transferring “leading edge” knowledge as
insufficiently deployed methodologies to industry and other
well as established but

11

organisations in order to achieve greater efficiency, higher quality and greater economy.
Finally, steps will be taken to facilitate SMEs’ access to ICT investment loans and provide
them with better business support services. Such take-up actions will need to be further
refined and taking into account the results of the benchmarking studies and the consultations
with SMEs in 2001.

In 2001, the following actions will be taken in this area:

ACTION 5:

PROMOTING THE AWARENESS FOR GOING DIGITAL

Objective: to provide SMEs with sufficient information about the needs and tools for a wider
use of ICT and e-business, building upon regional and business initiatives.

Implementation: the Commission will organise a number of GoDigital events throughout the
European Union, bringing together SMEs, ICT vendors and e-market players. These events
will aim at better helping SMEs to understand available e-business tools and applications.
Furthermore, the objective is to encourage SMEs to fully participate in the emerging e-
marketplaces. These awareness events will be organised by e-commerce reference centres and
other platforms at regional and national level under the GoDigital umbrella, with possible
financial contributions from the Commission.

As a next step, industrial associations, chambers of commerce and business support networks
(notably Euro Info Centres, Innovation Relay Centres and others) will be invited to
disseminate practical
information about successful e-business strategies, building upon
existing material and pilot activities. Business support networks play an important role in
raising SME awareness, because of their ability to act in co-operation with national and local
initiatives, and because of their proximity to SMEs. All envisaged activities should address
the specific needs of SMEs to participate and compete in the new economy (types of ICT
equipment, quality of services and products, etc.). The Commission will support – through
grant themes - a number of workshops aiming at providing practical assistance to enhance the
ability of SMEs to participate effectively in e-marketplaces.

Responsibility: The European Commission, with the support of chambers of commerce,
industry associations and business support networks (EICs, IRCs, etc.).

the Commission will

Timetable:
invite European associations, chambers of commerce,
business support networks and other institutions that can act as multiplier to a kick-off
meeting in May 2001. The publication of a grant theme for the financial support for regional
and sectoral events in support of GoDigital will be launched after the adaptation of the
Multiannual Programme 2001-2005. A "GoDigital Summit", where results and experiences
will be shared, is scheduled for late 2001.

ACTION 6:

ELECTRONIC COMMERCE TAKE-UP

Objective: facilitating e-business take-up by SMEs through pilot projects under the IST
Programme.

Implementation: take-up measures under the IST Programme include:

12

–

–

–

Trials (for SME users and suppliers) to promote the adaptation and introduction of
in
leading-edge
industrial/service applications and its joint evaluation by suppliers and users,

established)

technology

(promising

fully

but

not

yet

Best practice actions, (for SME users) promoting improvements in the practices,
processes and operations in industry and services through the introduction of proven
but not yet widely deployed methods and technologies, so as to achieve greater
efficiency, higher quality and greater economy in the user organisation, and

Demonstration projects designed to prove the viability of new technologies offering
economic advantages but which are not yet commercialised directly.

Responsibility: European Commission

Timetable: DG Information Society launched 15 best practice actions and 20 trials in 2000.
These are currently running. In spring 2001, new projects will be launched. These will include
6 trials, and 9 best practice actions. In 2001 a new call for proposals will be made for regional
and sectoral electronic commerce pilot actions. A further call for take-up proposals will be
opened in June 2001.

ACTION 7:

PROVISION OF A LOAN GUARANTEE FACILITY FOR SMES

Objective: to provide SMEs with loans for investment in ICT and intangible assets (hardware,
software, training, and introduction of Internet and e-business practices).

Implementation: An SME Guarantee Facility will be implemented via co-/counter-guarantee
schemes in Member States. The loan guarantees will be extended by the European Investment
Fund to national guarantee schemes and mutual guarantee societies. Agreements have been
1.4
signed by the EIF with 19 financial intermediaries covering total guarantee portfolios of
billion This catalyst scheme is also intended to convince the Member States of the
effectiveness as a catalyst of guarantee instruments which improve SMEs’ access to loan
finance.

€

Responsibility: European Investment Fund,
intermediaries in the Member States and DG Enterprise.

in close

collaboration with

financial

Time-schedule: Starting 2001

ACTION 8:

PROMOTING BETTER USE OF STRUCTURAL FUNDS

Objective: to make better use of the Structural Funds in promoting the take-up of e-business
by SMEs.

Implementation: Access to new technologies and to the information society is considered a
key priority for the Structural Funds programming period 2000-2006 to help overcome the
digital divide. Interventions financed by the Structural Funds should focus on demand-side
measures supporting regions i. a. to develop local content and applications, and help SMEs to
adopt and effectively use ICT.

As the programming exercise is coming to an end, the Commission will carry out a number of
actions to help ensure an efficient use of Structural Funds earmarked for the information

13

society and the knowledge-based economy and for improving synergies between the IST-
Programme and the Structural Funds as a follow-up to the conference on “The Information
Society and Economic, Social and Territorial Cohesion” in Lyon, in December 2000.

€

Furthermore,
400 million from the ERDF have been made available for the period 2000 –
2006 for the new Innovative Actions10 with the objective of contributing at a regional level to
the transition to the knowledge-based society by developing and testing new approaches
through pilot and demonstration actions.

One of the three strategic themes of the new innovative actions under the ERDF is
e-EuropeRegio: the information society at the service of regional development. The regional
authorities concerned will be invited to submit their proposals for programmes by 31 May at
the latest each year between 2001 and 2005, covering i. a. objectives such as encouraging
SMEs to include electronic commerce in their development strategies and to find suitable
ways of meeting their employees' needs in computer skills, and if possible, making use of
applications developed under the IST-Programme.

Responsibility: The European Commission

Timetable: starting 2001.

ACTION LINE 3:
ICT SKILLS

The digital economy is creating an ever-greater demand for qualified ICT specialists. The
rapid growth of this demand has already led to a shortage of such specialists, making it
difficult for SMEs to recruit experts. The implications of this shortage are not just short-term.
If they are not remedied, they may become an obstacle to the further penetration of ICT and e-
commerce in business. Adapting education and labour market systems to the requirements of
the new economy represent a major challenge for enterprise policy at national and European
level.

The importance of this issue and the implications for the labour market, as outlined in the
Commission Communication “Realising the European Union’s Potential: Consolidating and
Extending the Lisbon Strategy”11, have led to the proposal to set up a high level skills and
mobility task force, with the task of analysing and finding solutions to the ICT skills shortage,
as well as enhancing the mobility of labour force.

The concerns related to the ICT skills shortage are among the reasons, which prompted the
launch of the "eLearning: Designing Tomorrow's Education" initiative12. This major initiative
seeks to mobilise the educational and cultural communities, as well as the economic and
social players in Europe, in order to speed up changes in the education and training systems
for Europe's move to a knowledge-based society. The Member States of the European Union
have decided to work together to harmonise their policies in the field of educational

10

11

12

COM(2001) 60-005 final of 31.1.2001, The Regions in the New Economy: Guidelines for innovative
actions under the ERDF in 2000-2006.
Realising the European Union’s Potential: Consolidating and Extending the Lisbon Strategy.
COM(2001) 79 final.
COM(2000) 318 final of 24.5.2001
http://europa.eu.int/comm/education/elearning/index.html.

14

technology and share their experience. eLearning aims to support and coordinate their efforts
and to accelerate the adaptation of education and training systems in Europe.

"Go Digital" will be implemented in line with the eLearning initiative. The following actions
will be taken in this area.

ACTION 9:

SUPPORTING INDUSTRY-LED INITIATIVES FOR NEW ICT CURRICULA

Objective: to support joint initiatives between industry and education for the definition of new
requirements for ICT skills and to adapt education curricula accordingly.

Implementation: The “Career Space” project was launched by eleven leading ICT companies
and the European ICT Association (EICTA) with the support of the Commission.. This
represents a joint effort to define skill requirements of the ICT and user industries regarding
ICT professional staff, and to develop curricula guidelines. The project is based on co-
operation between industry, professional bodies, universities and other education institutions.
Its first phase concerned the definition of “job and skills profiles” for key jobs and job areas
in the ICT industry. This has been successfully completed. The current phase of the project
focuses on the preparation in co-operation with higher education organisations of guidelines
for curricula that reflect the education and training needs of the industry and the workforce
requirements for the new economy.

In view of the importance of closing the increasing gap between the supply and demand of
skilled ICT staff, and considering the urgency of concrete solutions, the co-operation with the
“Career-Space” project will be reinforced and extended notably in the scope of the
Commissions “eLearning: Designing tomorrows education” initiative.

Responsibility: The European Commission,
education institutions and other stakeholders.

the European ICT Association (EICTA),

Timetable: The “Career Space” project is under way.

ACTION 10: CREATING AN ICT SKILLS MONITORING GROUP WITH MEMBER STATES

Objective: to establish a working group, in collaboration with Member States, to monitor
market demand for ICT and e-business skills as well as the existing supply of such training
and provision of skilled workforce from the public and private sector.

Implementation: Member States have taken a number of initiatives to adapt curricula for
education and vocational training and to attract ICT experts from third countries. Under the
BEST programme for 2001, an expert group will be established to define the industry
requirements and to monitor the actions aimed at improving the availability of ICT skills. By
focussing specifically on the needs of the ICT professionals and of the SMEs in particular, the
expert group could give a useful sectoral contribution to the work of the proposed high level
skills and mobility task force.

Responsibility: The European Commission in close co-operation with Member States.

Timetable: to be launched in 2001 (first quarter), with a view to issuing a first report by the
end of 2001.

15

ACTION 11: LAUNCHING A SMES TRAINEE PROGRAMME

Objective: to help European students to develop entrepreneurship, by a trainee programme
with SMEs. The SMEs would benefit from the students' expertise and availability for setting
up and supporting their future e-business system.

Implementation: the terms of reference and conditions for such an programme will be drawn-
up in co-operation with the e-commerce reference centres, DG Education and Culture and
others. Essential to this is the selection of suitable candidates with sufficient ICT skills, such
as basic knowledge in the use of standard office applications, experience in how to link up to
the Internet and use basic Internet applications. Under this “Traineeships for SMEs”
programme, suitable candidates will be supported for a period of 5-6 months to assist SMEs
on-site with e-business applications set-up and ICT use. The programme will thus facilitate a
dynamic exchange of knowledge between SMEs on the one hand and e-commerce assistants
(e.g. students) on the other. This action is specifically targeting students from technical
schools and higher education establishments, with special emphasis on e-business.

Responsibility: The European Commission

Timetable: consultations to start in 2001. Feasibility study under the IST Programme.

5. THE NEXT STEPS

This Communication identifies a first series of actions helping SMEs to GoDigital. These
actions will be implemented in close collaboration with Member States. Further information
on the implementation will be available on the GoDigital web-site13.

The GoDigital Implementation Plan will be continuously updated and be further developed in
support of the eEurope 2002 Action Plan. New areas for initiatives will be systematically
explored, e.g. in the field of the interactions between business and public administration and
the further promotion of ICT take-up and professional skills. Further co-ordination with
Member States shall be primarily ensured through the Enterprise Policy Group.

13

http://europa.eu.int/ISPO/ecommerce/godigital.

16