Proposal for a Decision of the European Parliament and of the Council amending Council Decision 2000/819/EC on a multiannual programme for enterprise and entrepreneurship, and in particular for small and medium-sized enterprises (SMEs) (2001-2005)
Date: 2004-12-07
Institutions: European Commission
Subjects: EU financing, EU programme, aid to undertakings, competitiveness, entrepreneurship, small and medium-sized enterprises

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 7.12.2004 
COM(2004) 781 final 

2004/0272 (COD) 

. 

Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Council Decision 2000/819/EC on a multiannual programme for enterprise 
and entrepreneurship, and in particular for small and medium-sized enterprises 
(SMEs) (2001-2005) 

. 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1. 

The  multiannual  programme  (MAP)  for  enterprise  and  entrepreneurship,  and  in 
particular  for  small  and  medium-sized  enterprises  (SMEs)  was  adopted  on  20 
December 2000 to run from 1 January 2001 to 31 December 2005, with a budget of 
450 million euro. 

2. 

The MAP aims to achieve the following objectives: 

–  to  enhance  the  growth  and  competitiveness  of  enterprises  in  a  knowledge-based 

and internationalised economy; 

–  to promote entrepreneurship; 

–  to simplify and improve the administrative and regulatory framework for business 

so that research, innovation and business creation can flourish; 

–  to improve the financial environment for business, especially SMEs; 

–  to  give  business  easier  access  to  Community  support  services,  programmes  and 

networks and to improve the co-ordination of these facilities; and  

–  to  support  the  implementation  of  the  European  Charter  for  Small  Enterprises  at 

Community level. 

3. 

The MAP is implemented through 3 types of delivery instruments: 

–  the  exchange  of  experience  and  the  identification  of  good  practices  between  the 

Member States; 

–  the  operation  of  a  network  of  Euro-Info-Centres  offering  services  and  advice 

about European matters to enterprises throughout European regions; 

–  the  provision,  via  the  European  Investment  Fund  (EIF),  of  a  number  of 

Community financial instruments for SMEs. 

4. 

An  external  evaluation  of  the  MAP  was  carried  out  by  independent  experts.  The 
experts  confirmed  that  the  MAP  has  met  its  overall  objectives  and  that  its  delivery 
instruments have been effective: 

–  The Community financial instruments for SMEs were found to have successfully 
contributed  to  facilitating  SMEs’  access  to  finance.  They  address  recognised 
market  gaps  or  market  failures  which  will  continue  to  exist  despite  the  market 
integration for financial services. However, evaluations have shown that excessive 
targeting of Community financial instruments for SMEs at special sectors of the 
economy or at certain policy goals can limit their acceptance in the market place. 
In addition, greater visibility for the Community financial instruments should be 
achieved. The role of the EIF in the operation of Community financial instruments 
for SMEs on a demand-led basis has been considered a best practice. 

–  The evaluations have verified the positive role of the Euro-Info-Centres Network 
in providing business support services to SMEs. However, it was  suggested that 
the  transversal  role  of  the  Euro-Info-Centres  Network  in  the  delivery  of  the 

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5. 

6. 

7. 

programme  should  be  strengthened,  for  example  in  the  dissemination  of 
programme activities and results.  

–  It  was  suggested  that  the  exchange  of  experience  and  the  identification  of  good 
practices between the Member States with a view to improving the environment 
for  entrepreneurship  and  enterprise  become  more  focussed.  Also,  monitoring  of 
the  follow-up  activities  carried  out  by  the  Member  States  would  enhance  its 
effectiveness.  

The  implementation  of  the  MAP  has  been  subject  to  regular  evaluations.  One  of 
them concerned the Joint European Venture (JEV) programme which was part of the 
Growth and Employment Initiative adopted by the Council in 1998 and which was 
integrated  into  the  MAP  end  of  2000,  however,  without  an  additional  budget.  The 
2003 evaluation report on the Growth and Employment Initiative indicated poor cost 
effectiveness  and  low  market  demand  for  the  JEV  programme  and  prompted  the 
Commission  to  propose  amending  the  MAP  so  that  JEV  could  be  phased  out.  The 
respective  programme  amendment  was  adopted  by  a  decision  of  the  European 
Parliament and of the Council on 21 July 2004.1 

A  public  consultation  on  possible  elements  of  a  future  support  programme  for 
entrepreneurship  and  enterprise  competitiveness,  to  succeed  the  MAP,  was  carried 
out by the Commission from March to May 2004. This consultation indicated strong 
support for a wider basis for policy analyses, development and co-ordination as well 
as for specific measures to help enterprises to be competitive and innovative. 

The  proposed  successor  programme  would  have  began  in  2006,  under  the  current 
financial perspective, and ended in 2010, the target date for achieving the ambitious 
objectives  set  by  the  Lisbon  agenda.  The  challenge  for  the  new  programme  would 
therefore  be  to  contribute  to  competitiveness  in  a  more  comprehensive  way  than 
achieved by the MAP. Subsequent to the evaluation and the public consultation, the 
Commission decided that a framework programme would have the greatest potential 
to  boost  innovation  and  competitiveness.  The  Commission  therefore  proposed,  in  a 
Communication  of  14th  July  20042  to  prepare  such  a  framework  programme  in  the 
context of the new financial perspective (2007-13). The framework programme will 
provide  the  means  and  instruments  for  implementing  policies  in  varied  fields 
influencing European competitiveness. This would include: 

–  Improving  the  business  environment  (access  to  investment  capital;  secure 
electronic  networks;  the  effective  delivery  of  EU-wide  business  services;  and 
modernised services through the use of ICTs). 

–  Ensuring that innovation works to promote competitiveness and is carried through 
into  practical  application  at  a  business  level.  (Synergies  with  the  Framework 
Programme  for  Research  “Technological  platforms”,  environmental  technology, 
renewable energy, working through the Intelligent Energy Agency). 

–  Backing  up  European  policy  on  enterprise  competitiveness, 

innovation, 
entrepreneurship and SMEs with policy expertise and the promotion of EU action. 

1 
2 

OJ L 268, 16.8.2004, p. 3-5. 
COM(2004) 487 final. 

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8. 

9. 

It is not possible to present such a Commission proposal for a framework programme 
on  innovation  and  competitiveness  in  2004  in  order  to  ensure  its  operation  as  of  1 
January 2006. The framework programme for innovation and competitiveness should 
also dovetail  with the  7th Framework Programme for Research. Consequently, both 
new framework programmes should start consecutively on 1 January 2007. 

Nevertheless,  it  is  essential  to  ensure  continuity  of  Community  support  for  the 
improvement of the business environment and for the growth and competitiveness of 
enterprises,  in  particular  SMEs.  It  is  therefore  important  to  avoid  any  disruption  of 
the  instruments  operated  under  the  MAP.  In  view  of  these  circumstances,  the 
Commission  proposes  that  the  current  programme,  as  amended  in  2004,  should  be 
prolonged  until  31  December  2006.  This  will  enable  the  Commission  to  present  a 
proposal for a Community framework programme on innovation and competitiveness 
as soon as possible.  

10. 

The European Commission therefore proposes: 

–  to prolong the MAP until 31 December 2006; 

–  to increase the financial reference amount by EUR 81.5 million. 

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2004/0272 (COD) 

Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Council Decision 2000/819/EC on a multiannual programme for enterprise 
and entrepreneurship, and in particular for small and medium-sized enterprises 
(SMEs) (2001-2005) 

(Text with EEA relevance) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Article 
157(3) thereof, 

Having regard to the proposal from the Commission3, 

Having regard to the opinion of the European Economic and Social Committee4, 

Having regard to the opinion of the Committee of the Regions5, 

Acting in accordance with the procedure laid down in Article 251 of the Treaty6, 

Whereas: 

(1) 

(2) 

It  is  essential  to  ensure  the  continuity  of  Community  support  for  enterprise  and 
entrepreneurship, and in particular for small and medium sized enterprises (SMEs). 

It  is  therefore  appropriate  to  extend  the  period  of  validity  of  Council  Decision 
2000/819/EC7  with  another  year  until  31  December  2006  and  increase  the  financial 
reference amount by EUR 81.5 million. 

(3) 

Decision 2000/819/EC should be amended accordingly, 

HAVE DECIDED AS FOLLOWS:  

3 
4 
5 
6 
7 

OJ C […], […], p. […]. 
OJ C […], […], p. […]. 
OJ C […], […], p. […]. 
OJ C […], […], p. […]. 
OJ L 333, 29.12.2000, p. 84. Decision as last amended by Decision No 593/2004/EC of the European 
Parliament and of the Council (OJ L 268, 16.8 2004, p. 3). 

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Decision 2000/819/EC is amended as follows: 

Article 1 

(1) 

In  Article  7(1),  the  financial  reference  amount  of  EUR  450  million  is  replaced  by 
EUR 531.5 million. 

(2) 

In Article 8, the date of 31 December 2005 is replaced by that of 31 December 2006. 

Article 2 

This Decision shall enter into force on the day of its publication in the Official Journal of the 
European Union.  

Done at Brussels, […] 

For the European Parliament 
The President 

For the Council 
The President 

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LEGISLATIVE FINANCIAL STATEMENT 

Policy area: Enterprise 

Activity: Encouraging entrepreneurship 

TITLE OF ACTION: MULTIANNUAL PROGRAMME FOR ENTERPRISE AND 
ENTREPRENEURSHIP, AND IN PARTICULAR FOR SMALL AND MEDIUM-SIZED 
ENTERPRISES (SMES) (2001-2005) 

1. 

BUDGET LINES + HEADINGS 

The following existing budget lines: 

010405: Improvement of the financial environment for SMEs; 

02020301:  Multiannual  Programme  for  Enterprise  and  Entrepreneurship,  and  in 
particular for SMEs; 

02010404: Administrative support;  

2. 

OVERALL FIGURES 

2.1 

Total allocation for action (Part B): 

€ 81.5 million for commitment 

This amount represents the budgetary impact of the proposal to prolong the existing 
programme, which is due to end on 31 December 2005, for the additional year to 31 
December 2006.  

2.2 

Period of application: 1st January 2006 - 31st December 2006 

Payment  appropriations  may  extend  beyond  the  end  of  the  legal  base  until  31 
December 2008. 

2.3 

Overall multiannual estimate of expenditure: 

a) 

Schedule  of  commitment  appropriations/payment  appropriations 
intervention) (see point 6.1.1) 

(financial 

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€ million (to three decimal places) 

Commitment appropriations 

74.700

74.700

2006 

2007 

2008 

Total 

Payment appropriations 

29.880

22.410

22.410 

74.700

b) 

Technical and administrative assistance and support expenditure (see point 6.1.2) 

2006 

2007 

2008 

Total 

Commitment appropriations 

Payment appropriations 

6.800

6.800

6.800

6.800

Sub-total a+b 

Commitment appropriations 

81.500

0

0 

81.500

Payment appropriations 

36.680

22.410

22.410 

81.500

c) 

Overall  financial  impact  of  human  resources  and  other  administrative  expenditure 
(see points 7.2 and 7.3) 

Commitments/ payments 

8.914

TOTAL a+b+c 

Commitment 
appropriations 
Payment appropriations 

0

0

0 

0 

90.414

45.594

22.410

22.410 

8.914

90.414

90.414

2.4 

Compatibility with financial programming and financial perspective 

[ X ]  Proposal is compatible with existing financial programming. 
[..]  Proposal will entail reprogramming of the relevant headings in the financial 

perspective.  

[..]  Proposal may require application of the provisions of the Interinstitutional 

Agreement. 

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2.5 

Financial impact on revenue 

[X]  Proposal has no financial implications (involves technical aspects regarding 

implementation of a measure). 
[..]  Proposal has financial impact. 

3. 

BUDGET CHARACTERISTICS 

Type of expenditure 

New 

Non-comp. 

Diff. 

Non-comp 

Non-comp 

Diff 

Non-
Diff 

(NO) 

(NO) 

(NO) 

4. 

LEGAL BASIS 

EFTA 
contributions 

Contributions 
from 
applicant 
countries 

Heading in 
financial 
perspective  

Budgetary 
lines 

YES 

YESYES 

YES 

YES 

YES 

N° 3 

N°3 

N°3 

01 04 05 

02 02 03 01 02 
01 04 04 

Article 157 (3) of the Treaty establishing the European Community.  

5. 

DESCRIPTION AND GROUNDS 

5.1 

Need for Community intervention 

The objective of the prolongation is to ensure the continuation of the multiannual programme 
(MAP)  for  enterprise  and  entrepreneurship,  and  in  particular  for  small  and  medium-sized 
enterprises  during  the  year  2006.  The  present  programme  will  expire  on  the  31  December 
2005. The prolongation is deemed necessary to ensure continuity of the Community action in 
the  transition  period  towards  a  Community  framework  programme  on  innovation  and 
competitiveness (as proposed in the Communication on the Financial Perspectives 2007-2013 
of 14th July 2004, COM(2004)487 final). Moreover, the prolongation will allow the MAP to 
coincide with the financial perspectives, which have been established until 2006. 

The present proposal for prolongation does not include any modification to Council Decision 
2000/819/EC of 20 December 2000 as amended by Decision 593/2004/EC of 21/07/20048 of 
the  European  Parliament  and  the  Council,  except  for  the  duration  of  the  programme.  As  a 
consequence an additional year of budget allocation will be established. 

5.1.1 Objectives pursued 

The  objectives  and  instruments  of  the  Multiannual  Programme  (MAP)  for  Enterprise  and 
Entrepreneurship are set out in the Explanatory Memorandum. 

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OJ L268 of 16/08/2004, pp. 3-5. 

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Problems addressed by the programme 

The  needs  addressed  by  the  MAP  derive  from  the  problems  enterprises  face  in  all  Member 
States and participating countries due to:  

– 

Entrepreneurship gap and low rates of growth 

The  European  Union  does  not  adequately  exploit  its  entrepreneurial  potential.  It  fails  to 
encourage enough people to become entrepreneurs. 45% of Europeans state that they prefer 
self-employment (although this varies between 26 and 71% across the EU) compared to 67% 
in the USA, and whereas 22% of European citizens have considered starting a business, this 
level is 34% in the USA9. Europe generates few start-ups relative to the USA, and after start-
up  enterprises  demonstrate  lower  expansion  rates.  Whereas  30%  of  Europe’s  SMEs  declare 
growth  as  their  main  ambition,  too  few  actually  experience  substantial  growth.  All  of 
Europe’s  largest  firms  at  the  end  of  the  last  decade  were  already  large  in  1960.  To  release 
entrepreneurial potential, the EU must take serious steps to make Europe more attractive for 
business activity by tackling actively the barriers that restrict the entry of new enterprises in 
the  market.  This  concerns  in  particular  seed  and  start-up  financing  for  enterprises,  but  also 
development capital for their expansion.  

One  reason  for  inferior  average  EU  performance  is  an  administrative  and  regulatory 
environment  that  does  not  encourage  entrepreneurship  and  innovation.  Improving  the 
environment  in  which  firms  operate  must  therefore  be  a  continuous  task  and  one  where  the 
Commission can assist Member States. 

– 

Difficulties in access to debt and equity finance for SMEs 

On the equity side, there is a recognised market gap for venture capital across Europe. It has 
been  demonstrated  that  it  is  simply  not  rewarding  for  venture  capital  funds  to  invest  in 
individual  deals  between  200,000€  and  2,500,000€.  The  supply  of  seed  and  early  stage 
finance for new and young companies, especially in high tech sectors, is hampered. The main 
source  of  external  finance  for  SMEs  remains  bank  lending.  Banks  are  reluctant  to  lend  to 
some  types  of  SME,  since  returns  are  perceived  as  low  compared  to  the  required  capital 
allocation and to the unit handling costs. Furthermore, banks often suffer from “information 
asymmetry” when dealing with SMEs. Consequently, many SMEs face problems in obtaining 
loans  due  to  their  lack  of  collateral  or  track  record.  For  micro-loans  there  is  the  additional 
problem  of  high  processing  costs  for  banks,  which  can  increase  their  reluctance  to  lend. 
Furthermore, in most of the new Member States and the Candidate Countries there is a low 
level  of  banking  intermediation,  which  restrains  the  development  of  the  private  sector,  in 
particular SMEs. There are also very few venture capital funds providing seed and early stage 
finance in the new Member States. 

– 

Lack of European business support services for SMEs  

SMEs  have  particular  difficulties  in  accessing  information  about  EU  legislation  or 
programmes having an impact on them. It is difficult for them to find out how to access new 
markets  or  to  exploit  public  procurement  opportunities  offered  by  the  single  market.  SMEs 
lack  information  on  how  they  could  find  partners  for  potential  common  projects  to  take 
advantage  of  the  single  market.  In  addition,  SMEs  have  difficulties,  not  only  in  obtaining 

9 

Flash Eurobarometer, Nov 2002. 

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information  on  EU-related  issues,  but  also  in  voicing  their  views  on  EU-related  matters,  in 
particular  when  they  want  to  provide  direct  feedback  regarding  European  policies  and 
initiatives.  

Need  for  Community  intervention,  particularly  in  the  light  of  the  principle  of 
subsidiarity 

The  programme  is  concerned  with  issues  for  which  the  Community  is  responsible.  It  is 
designed as a Community instrument in support of actions taken by the Member States - in 
other words, responsibility with the Member States is shared. Implementation of the proposed 
intervention  instruments  cannot  be  adequately  achieved  by  the  Member  States  alone  for  the 
following reasons: 

First,  the  programme  provides  the  framework  for  networking,  exchanges  of  experience, 
know-how and good practices between Member States and other participating countries. This 
is by definition based on close cooperation on a European scale. To increase the effectiveness 
of this programme element, it will be supported by awareness raising and dissemination, and 
other relevant activities.  

Second,  the  programme  addresses  recognised  market  gaps  preventing  SMEs  from  enjoying 
access  to  appropriate  finance,  in  particular  for  starting  businesses.  It  also  addresses  the 
difficulties  of  smaller  enterprises,  especially  micro  enterprises,  in  accessing  loans.  The 
proposed programme is sufficiently flexible to respond to economic cycles and to differences 
in the functioning and state of development of the financial markets in the Member States by 
providing  leverage  to  respective  national  intervention  (for  instance  carried  out  by  national 
promotional banks). 

Third, the programme aims at improving, together with partner organisations in the Member 
States,  the  provision  of  European  business  support  services  related  to  EU-legislation, 
standards  and  programmes,  as  well  as  fostering  cooperation  (particularly  across  borders) 
between  SMEs.  These  services  could  not  be  offered  with  the  same  effectiveness  and  at 
affordable conditions for SMEs without Community intervention. Furthermore, the European-
wide  network  effect  achieved  by  the  programme’s  business  support  services  could  not  be 
achieved by individual Member States. Without such a network it would be very difficult to 
gather direct feed-back from SMEs in different regions and to centralise it in a timely manner 
so that it can be used for the definition of policies and initiatives at the EU level. 

5.1.2  Measures  taken  following  the  evaluation  of  the  multiannual  programme  for 

enterprise and entrepreneurship, and in particular SMEs (2001-2005) 

The multiannual programme (MAP) is subject to a number of evaluations, in accordance with 
Article 5 (1) of the Council Decision 2000/819/EC establishing the programme. The results of 
these evaluations will be taken into account in the implementation of the MAP for the period 
of the proposed extension.  

Internal evaluations took place in accordance with Article 5 of the MAP Decision in order to 
examine  the  progress  made  towards  the  overall  objectives  of  the  programme  and  the 
achievement of outputs, results, efficiency and effectiveness of individual actions. The results 
of these evaluations were followed up and incorporated into subsequent annual programmes. 
This  led,  for  example,  to  significant  improvements  in  the  application  of  the  performance 
indicators established by the Programme’s Management Committee. 

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A  Strategic  Evaluation  of  Financial  Assistance  Schemes  for  SMEs,  carried  out  in  2003  by 
Deloitte Touche on behalf of DG BUDG identified the Community Financial Instruments of 
the MAP for particular praise and endorsed the effectiveness of its design and implementation 
methods. 

The  report  of  the  external  evaluation  of  the  MAP  was  finalised  in  September  200410.  This 
mainly  looked  at  the  effectiveness,  efficiency  and  sustainability  of  the  programme,  at  the 
relevance  of  the  programme’s  objectives,  and  at  the  coherence  between  the  measures 
undertaken  under  the  programme  and  its  objectives.  In  their  report,  the  evaluators  gave  an 
overall positive assessment of the programme. It is fulfilling its main objectives and is having 
a general positive impact on environment in which businesses operate in Europe. With regard 
to  policy  development,  MAP  actions  generally  responded  to  the  needs  of  the  target  groups 
and  achieved  their  objectives.  The  Euro  Info  Centre  Network  was  assessed  as  effective, 
although there is scope for improvement. It was also considered that the Community financial 
instruments  achieved  their  objectives  by  contributing  to  improve  the  financial  environment 
for business. The evaluation recommends:  

– 

– 

– 

– 

– 

Improved consistency between the objectives of the programme and actions carried 
out under the programme through a better integrated strategic planning of activities. 
Innovation and business co-operation activities could be reinforced, as could links to 
other  initiatives  (e.g.:  structural  fund  and  research  activities).  It  also  suggested 
reinforcing  the  links  between  the  MAP  and  the  reporting  process  of  the  European 
Charter for Small Enterprises; 

re-enforcing the transversal role of the EICs; 

improving the visibility of the programme, particularly of the Community financial 
instruments. The EICs could provide a valuable resource in improving dissemination. 

a reduction of the overall number of actions, whilst increasing their size and impact. 

increased use of performance indicators in annual implementation reports. 

These  recommendations  may  be  applied  in  the  context  of  the  current  (extended)  legal  basis 
through  annual  programming  measures  and  do  not  necessitate  changes  in  the  Council 
Decision  2000/819/EC.  They  will  also  be  taken  into  account  in  the  design  of  any  successor 
programme from 2007. 

5.2 

Actions envisaged and budget intervention arrangements 

The MAP will therefore continue, through the extension period, to be implemented through: 

(1) 

Policy analyses, development and coordination in the fields of entrepreneurship and 
SMEs  through  application  of  the  open  method  of  coordination  between  participating 
countries  requiring  studies,  surveys,  and  publications;  awareness  raising  including 
conferences and other events; as well as benchmarking, networking and other relevant 
activities.  Actions  will  include  support  for  the  representation  of  SMEs  in  European 
standardisation; 

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SEC(2004)1460 

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(2) 

(3) 

Community  financial  instruments  for  SMEs:  as  under  the  MAP  thus  far,  this  will 
include investment of the European Investment Fund (EIF) in suitable venture capital 
funds;  guarantees  or  counter-guarantees  of  SME  loans,  equity  and  quasi-equity,  and 
contributions to financial intermediaries specialised in microcredit, and in the case of 
shortages of qualified investment and technology staff to deal with SME applications 
for venture capital; 

European business support services for SMEs: this will include contributions to the 
Euro-Info-Centres  or  bodies  hosting  them.  External  technical  support  structures  will 
continue  to  provide  support  for  the  EIC  network  in  terms  of  co-ordination  and 
auditing; 

Target population 

The  target  population  consists  of  all  enterprises  in  the  European  Economic  Area  and  the 
candidate  countries,  in  particular  small  and  medium-sized  enterprises  (SMEs),  and  existing 
and potential entrepreneurs throughout the participating countries. There are over 25 million 
enterprises in the enlarged EU, 99.8 per cent employ less than 250 persons and 93.1 per cent 
have  less  than  10  employees.  Some  actions  are  aimed  at  specific  target  groups  and/or 
economic sectors. Business representative organisations and associations, including Chambers 
of  Commerce,  are  additional  target  groups.  The  target  population  of  each  type  of  action 
differs slightly: 

– 

Policy Analyses, Development and Co-ordination 

The intermediaries will be national, and (to some extent) regional and local authorities with 
responsibility for the development and implementation of SME and entrepreneurship policies. 
The  final  beneficiaries  will  be  enterprises  and  entrepreneurs  at  which  national,  regional  or 
local measures are directed.  

– 

Community Financial Instruments  

The intermediaries will be banks and financial institutions, including venture capital firms and 
institutions  specialised  in  microcredit.  The  final  beneficiaries  will  be  start-ups  requiring 
access  to  equity  to  bring  their  products/services  to  the  market  and  SMEs  lacking  sufficient 
collateral  to  gain  access  to  loans,  which  will  be  supported  via  the  guarantee  schemes, 
including microcredits.  

– 

European Business Support Services for SMEs 

The  intermediaries  will  be  organisations  hosting  Euro  Info  Centres.  The  final  beneficiaries 
will  differ  according  to  the  services  provided:  in  the  case  of  promotion  and  information 
services, the potential target group would be a proportion of the 25 million SMEs. As regards 
the rendering of specialised assistance on EU-related issues or cooperation matters, the target 
SMEs  will  be  those  with  a  vocation  and  a  potential  to  be  active  on  a  cross-border  basis. 
Evidence suggests that about 8 million SMEs have foreign suppliers and about 5 million are 
exporting themselves. Only 3% collaborate with foreign SMEs or have a subsidiary, branch or 
joint venture abroad. 

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The envisaged budget intervention arrangements are the following: 

(1) 

(2) 

Contracts  and  grant  agreements  following  transparent  procurement  and  selection 
procedures.  

Co-financing  (grants)  for  the  c.  310  Euro-Info  Centres  or  partner  (“host”) 
organisations  operating  a  Euro-Info  Centre:  each  eligible  Centre  or  the  partner 
organisation receives 25.000€ (amounting on average to 10% of operating costs). The 
co-financing  will  be  granted  following  transparent  procedures  based  on  appropriate 
criteria.  

(3) 

Technical  and  administrative  support  needed  for  the  operation  of  the  Network  will 
continue to be provided by external contractors.  

5.3  Methods of implementation 

Budget implementation will be ensured by the Commission in a centralised way: 

(1) 

(2) 

(3) 

Policy  analyses,  development  and  co-ordination  in  the  fields  of  Entrepreneurship, 
enterprise policy and SMEs will be directly implemented by the Commission. 

The  Community  Financial  Instruments  will  continue  to  be  indirectly  implemented 
by  the  Commission  via  the  European  Investment  Fund  and  relevant  financial 
intermediaries.  This  practice  is  based  on  Article  54.2  c)  and  Article  56.2  of  the 
Financial Regulation applicable to the general budget of the European Communities. 

European  Business  Support  Services  for  SMEs  will  be  directly  managed  by  the 
Commission as provided for in Council Decision 2000/819/EC. The possibility will be 
studied  of  transferring  these  tasks  to  an  Executive  Agency  from  2007  in  accordance 
with Council Regulation EC/58/2003 of 19 December 200211 laying down the statute 
for  executive  agencies  to  be  entrusted  with  certain  tasks  in  the  management  of 
Community programmes, and in particular Article 3 (1) thereof.  

11 

OJ L11 of 16.1.2003, p.1 

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6. 

FINANCIAL IMPACT 

6.1 

Total financial impact on Part B (over the entire programming period) 

6.1.1 Financial intervention 

Commitment appropriations in € million (to three decimal places) 

Objective 1: To enhance the growth and competitiveness of 
business in a knowledge-based internationalised economy 

Objective 2: To Promote Entrepreneurship 

Objective 3: To simplify and improve the administrative and 
regulatory framework for business so that research, 
innovation and entrepreneurship in particular can flourish  

Objective 4: To improve the financial environment for 
business, especially SMEs 

Objective 5:To give business easier access to support services, 
Community programmes and networks and to improve the 
coordination of these facilities  

2006 

Total 

3.050 

3.050 

3.450 

1.300 

3.450 

1.300 

57.300 

57.300 

9.400 

9.400 

Objective 6: Other 

200 

200 

TOTAL 

74.700 

74.700 

6.1.2 

Technical  and  administrative  assistance,  support  expenditure  and  IT  expenditure 
(commitment appropriations) 

 Expenditure on Budget Line 02 01 04 04 

2006 

Total 

1) Technical and administrative assistance: 

a) Technical assistance offices (TAO) for operation of the Euro 
Info Centres and Euro Info Correspondence Centres network  

6.100 

6.100

b) Other technical and administrative assistance: 

- intra-muros: 
- extra-muros: 
of which for construction and maintenance of computerised 
management systems: 

Sub-total 1 
2) Support expenditure: 
a) Studies 
b) Meetings of experts 

c) Information, publications and audio-visual material 

Sub-total 2 
TOTAL 

6100 

700  

700 
6800 

6800

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6.2. 

Calculation of costs by measure envisaged in Part B (over the entire programming 
period) 

Commitment appropriations in € million (to three decimal places) 

Breakdown 

Type of outputs 
(projects, files, 
etc.) 

1 

Number of 
outputs 
(total for 
years 
1…n) 
2 

Expenditure on budget line 02 02 03 01 

Objective 1: To enhance the growth and 
competitiveness of business in a knowledge-
based internationalised economy 

Identification  of  dissemination  of  good  practice 
in the incorporation of enterprises into the digital 
economy, including development of indicators 

Open method 
project and 
report 

Actions  to  promote  adoption  of  standardisation 
by SMEs 

Benchmarking of other issues affecting the 
competitiveness of enterprises 

Improve access of crafts and small businesses to 
ICT by improved support services; electronic 
networking between support organisations, 
authorities and small businesses 

Statistical development and analysis 

Studies 

Total: Objective 1 

Objective 2: To Promote Entrepreneurship 

Strategy to promote entrepreneurship 

Identification,  exchange  and  implementation  of 
good  practice  through  benchmarking,  concerted 
actions,  seminars  and  conferences,  use  of 
working groups and databases 
Statistical development and analysis 

Studies 

Total: Objective 2 

Participation 
and information 
to SME 
organisations on 
standardisation 
bodies 

projects and 
reports 

Studies and 
reports 
study 

Open method 
project and 
report 
projects and 
reports 

Studies and 
reports 

Average 
unit cost 

Total cost 

(total for 
years 
1…n) 
4=(2X3) 

600

350

800

700

400

200

3.050

3 

100 

350 

100 

100 

200 

100 

6 

1 

8 

7 

2 

2 

10 

100 

1.000

8 

2 

7 

150 

1.200

275 

100 

550

700

3.450

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Objective 3: To simplify and improve the 
administrative and regulatory framework for 
business so that research, innovation and 
entrepreneurship in particular can flourish  

Identification,  exchange  and  implementation  of 
good  practice  through  benchmarking,  concerted 
actions,  seminars  and  conferences,  use  of 
working groups and databases 

Open method 
project and 
report 

100 

500

5 

2 

3 

250 

100 

Studies and 
reports 

projects and 
reports 

Statistical  development  and  analysis  for  the 
development of the Business Impact Assessment 
system for Community legislation 

Studies  for  the  development  of  the  Business 
for  Community 
Impact  Assessment  system 
legislation 
Total: Objective 3 

Objective 4: To improve the financial 
environment for business, especially SMEs 
Organisation  of  Round  Table  of  Bankers  and 
SMEs in the candidate countries 
Identification, exchange and implementation of 
good practice through benchmarking, concerted 
action, business angels, seminars, workshops and 
conferences, use of working groups and 
databases 
Monitoring  of  the  use  of  the  euro  by  enterprises 
and,  where  necessary, 
the 
adjustment process 
Statistical development and analysis 

facilitation  of 

Studies 

Total: Objective 4 

Objective 5:To give business easier access to 
support services, Community programmes 
and networks and to improve the coordination 
of these facilities  
Ensure  effective  operation  of  the  Euro  Info 
Centres  and  Euro  Info  Correspondence  Centres 
network  (excludes  expenditure  on  line  02  01  04 
04 (see 6.1.2) 
Identification,  exchange  and  implementation  of 
good  practice  through  benchmarking  of  support 
services 
Promotion  of  enterprise  policy, 
information, 
EURO-info  bulletin  (excludes  expenditure  on 
line 02 01 04 04 (see 6.1.2)) 

Total: Objective 5 

Objective 6: Other 

European  Observatory  for  SMEs;  publication, 
dissemination 
Evaluation of the Multiannual Programme 

Total: Objective 6 

500

300

1.300

0

600

0

300

400

1.300

projects and 
reports 

3 

200 

Studies and 
reports 
Studies and 
reports 

2 

2 

150 

200 

Grants to EICs 

360 

25 

9.000

projects and 
reports 

4 

100 

Evaluation 
report 

1 

200 

400

0

9.400

0

200

200

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Expenditure on budget line 01 04 05 

Objective 4: To improve the financial 
environment for business, especially SMEs 
ETF-Start up 

SME Guarantee Facilities 

Seed Action Capital 

JEV* 

Total 

TOTAL (A + B) 

EIF investments 
in VC funds 
EIF (counter) 
guarantee 
agreements for 
SME loans with 
financial 
intermediaries 
facility grants 

5 

30 

3600 

1200 

18.000

36.000

4 

500 

2.000

0

56.000

74.700

* JEV has been phased out under Decision 593/2004/EC of 21/07/2004. 

Nota bene: Open Method of Co-ordination between participating countries will normally include 
expert meetings, analyses, seminars and publications. 

7. 

IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE 

The  needs  for  human  and  administrative  resources  shall  be  covered  within  the  allocation 
granted to the managing DG in the framework of the annual allocation procedure.  

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7.1. 

Impact on human resources 

Type of post 

Staff to be assigned to 
management of the action 
using existing and/or 
additional resources (1), 
(2) 

Number of 
permanent 
posts 

Number of 
temporary 
posts 

Total 

Description of tasks deriving from the action 

Preparation of the work programme, launch of calls 
for tenders and/or proposals, evaluation of the 
tenders/proposals, negotiation of and monitoring of 
contracts, monitoring and evaluation of the 
programme and reporting, technical and financial 
monitoring of the projects and contracts, monitoring 
of the implementation of the programme, information 
and programme promotion actions, coordination 
between other Community programmes and EU 
Member State initiatives, relations with the 
Committee, links to the institutions regarding the 
implementation of the programme, monitoring. 
3 A-grade and 3 B-grade officials are employed in DG 
ECFIN to monitor and co-ordinate the execution of 
the Community financial instruments via EIF 

A 
B 
C 

28 
12 
16 

10 
1 
6 

38 
13 
22 

Officials 
or 
temporary 
staff 

Other human 
resources 
Total 

56 

17 

73 

(1) 

(2) 

The  estimates  provided  in  the  above  table  are  based  on  current  human  resources 
involved in management or co-ordination of MAP actions. The figures exclude human 
resources from horizontal resources services. 

At  present  67  people  (equivalent  full  time)  are  involved  in  implementing  the 
multiannual  programme  for  enterprise  and  entrepreneurship  (2001-2005)  within  DG 
Enterprise  (35  grade  A,  10  grade  B  and  22  grade  C).  In  addition,  central  support 
services  for  the  Euro-Info-Centres  Network  (as  provided  for  by  Council  Decision 
2000/819/EC on the MAP) employ 52 people in benefit of the Network. 6 further staff 
members  (3  grade  A;  3  grade  B)  work  in  DG  ECFIN  on  the  execution  of  the 
Community  financial  instruments  for  SMEs  by  the  EIF  requiring  monitoring  during 
and beyond the programme duration on the Commission side.  

7.2 

Overall financial impact of human resources 

Type of human resources 

Amount (€) 

Method of calculation * 

Officials: 
Temporary staff: 
Other human resources (specify budget line) 
- ENDs 
- Auxiliaries 

56 
17 

7.884  €million 

73  x €0.108 million per annum 

0  x € 0.0445 million p.a. 
0  x € 0.0870 million p.a. 

The amounts are total expenditure for twelve months. 

Total  73

7.884  €million 

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7.3 

Other operating expenditure deriving from the action 

-  Compulsory 

Budget line 
(number and heading) 
Overall  allocations  (Title  ex-
A7) 
ex-A0701 - Missions 
ex A07030 - Meetings 
ex  A07031 
committees12 
ex  A07032  -  Non-compulsory 
committees 
ex A07040 - Conferences 
ex  A0705 
-  Studies 
consultations 
… Other expenditure (specify) 
Information systems (ex-A-
5001/A-4300) 
Other  expenditure  -  Part  A 
(specify) 

and 

Amount (€million) 

Method of calculation 

0,200 
0,400 
0,080 

€ million 
€ million 
€ million 

(Annual  extimates  based  on  previous  years 
experience) 
€800/mission x 250/year 
€800/meetingx25exp./meetgx 20/year 
 €800/meetingx32exp./meeting 3/year 

0,350 

€ million 

X 

X 

Total 

1,030 

€ million 

The amounts are total expenditure for 12 months. 
I. 
II. 
III. 

Annual total (7.2 + 7.3) 
Duration of action 
Total cost of action (I x II) 

8.914 €million 
1 year 
8.914 €million 

8. 

FOLLOW-UP AND EVALUATION 

8.1 

Follow-up arrangements 

Following  the  adoption  of  this  Decision,  the  management  of  the  programme  actions  will 
continue  to  be  based  on  an  annual  programming  cycle.  The  Commission  will  establish,  in 
consultation  with  the  Enterprise  Programme  Management  Committee  (EPMC),  the  2006 
annual work programmes including specific, appropriate and coherent performance indicators 
for the deliverables (quality and quantity), implementation and effectiveness. Each action will 
be explicitly linked to one or more stated objectives of the programme.  

The performance of the programme will be scrutinised by the Management Committee which 
will meet 3 or 4 times in the year. As has been the case thus far, the EPMC will receive an 
annual  Implementation  Report,  covering  implementation  and  budget  execution.  The 
Implementation  Report  will  also  be  made  available  to  the  European  Parliament  and  general 
public.  

8.2 

Arrangements and schedule for evaluation 

An independent external final evaluation of the actions carried out under the MAP has been 
carried  out  in  accordance  with  Council  Decision  2000/819/EC  (Article  5)  and  will  be 
transmitted  to  the  European  Parliament  and  the  Council.  The  recommendations  of  the 
evaluation will be taken into account in the proposed period of extension. 

12 

Enterprise Policy Management Committee (EPMC) 

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9. 

ANTI-FRAUD MEASURES 

(Article  3(4)  of  the  Financial  Regulation:  "In  order  to  prevent  risk  of  fraud  or  irregularity, 
the  Commission  shall  record  in  the  financial  statement  any  information  regarding  existing 
and planned fraud prevention and protection measures.") 

There  are  no  (internal  or  external)  audit  reports  giving  raise  to  indications  for  fraud  under  
the activities undertaken in pursuance of Council Decision 2000/819/EC. 

Verification before payment of subsidies or the delivery of services and studies ordered and 
carried  out  by  Commission  services  will  take  place,  taking  into  account  the  contractual 
obligations  and  the  principles  of  economy  and  sound  financial  and  global  management.  All 
contracts,  conventions  and  legal  undertakings  concluded  between  the  Commission  and  the 
beneficiaries  under  the  programme  foresee  the  possibility  of  an  audit  at  the  premises  of  the 
beneficiary  by  the  Commission’s  services  or  by  the  Court  of  Auditors,  as  well  as  the 
possibility  of  requiring  the  beneficiaries  to  provide  all  relevant  documents  and  data 
concerning  expenses  relating  to  such  contracts,  conventions  or  legal  undertakings  up  to  5 
years  after  the  contractual  period.  Beneficiaries  are  subject  to  the  requirement  to  provide 
reports  and  financial  accounts,  which  are  analysed  as  to  the  eligibility  of  the  costs  and  the 
content,  in  line  with  the  rules  on  Community  financing  and  taking  account  of  contractual 
obligations, economic principles and good financial management. 

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