Opinion of the Committee of the Regions on the Communication from the Commission to the Council, The European Parliament, the European Economic and Social Committee and the Committee of the Regions Implementing the Community Lisbon Programme Modern SME Policy for growth and employment
Date: 2006-06-15
Institutions: European Committee of the Regions
Subjects: EU programme, business policy, company growth, entrepreneurship, innovation, small and medium-sized enterprises

22.9.2006

EN

Official Journal of the European Union

C 229/53

Opinion of the Committee of the Regions on the Communication from the Commission to the
Council, The European Parliament, the European Economic and Social Committee and the
Committee of the Regions Implementing the Community Lisbon Programme Modern SME Policy
for growth and employment

(2006/C 229/08)

THE COMMITTEE OF THE REGIONS,

Having regard to the Communication from the Commission to the Council, The European Parliament, the
European Economic and Social Committee and the Committee of the Regions Implementing the Community
Lisbon Programme — Modern SME Policy for growth and employment, COM(2005) 551 final;

Having regard to the decision of the European Commission of 15 November 2005 to consult it on the
subject, under the first paragraph of Article 265 of the Treaty establishing the European Community;

Having regard to the decision of its president of 24 January 2006 to instruct its Commission for
Economic and Social Policy to draw up an opinion on this subject;

Having regard to its Opinion on the Competitiveness and Innovation Programme (COM(2005) 121 final
CdR 150/2005 fin) (1);

Having regard to its Opinion on the Integrated Guidelines
(COM(2005) 141 final CdR 147/2005 fin) (2);

for Growth and Jobs (2005-2008)

Having regard to its Own-initiative opinion of the Committee of the Regions on Competitiveness and
Decentralisation (CdR 23/2005 fin) (3);

Having regard to its Draft Opinion CdR 40/2006 rev. 2 adopted on 6 April 2006 by its Commission for
Economic and Social Policy (Rapporteur: Mrs Constance Hanniffy, Member of Offaly County Council,
Cathaoirleach of the Midland Regional Authority and Member of the Border Midland and Western Regional
Assembly, IE/EPP).

adopted the following opinion at its 65th plenary session, held on 14 and 15 June 2006 (meeting
of 15 June)

1. The Committee of the Regions' comments

transfer, and as large customers for the goods and services
provided by SMEs;

Giving fresh impetus to SME policy

1.1 welcomes
the Commission's communication on a
Modern SME Policy for Growth and Employment as a means to
give fresh impetus to SME policy, to re-focus policy on the
most essential elements and to streamline Community action
with a view to greater effectiveness;

1.4
recognises that the main competence in ensuring that
SME policy is truly effective rests primarily with the Member
States and encourages Member States to ensure that
their
National Reform Programmes deliver concrete measures to
support the creation and development of SMEs;

1.2
supports the promotion of an inclusive SME policy that
recognises the diversity of SMEs in terms of size, ownership
structure and sector, that provides a range of tailored supports
and a sensitive legislative environment to meet the diverse
needs of the EU's SMEs;

acknowledges the reference to the role of local and
1.3
regional authorities in the communication but considers that it
could have been more explicit regarding the crucial role that
local and regional authorities have in supporting SMEs,
in
providing an enabling environment for their development and

(1) Not yet published in the Official Journal of the EC.
(2) Not yet published in the Official Journal of the EC.
(3) Not yet published in the Official Journal of the EC.

draws attention to the analysis undertaken by the
1.5
Committee on the preparation of
the National Reform
Programmes (NRPs) and in particular on the lack of consulta-
tion with local and regional authorities and in this regard
welcomes the encouragement from the European Council in
March 2006 to continue its work on the NRPs;

considers that

implementation, and commitment

to
1.6
to a
implementation, by all stakeholders is obviously vital
successful SME policy and feels that in this regard the Commis-
sion should have set out in the communication some specific
targets and deadlines to help measure delivery;

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Official Journal of the European Union

22.9.2006

1.7
acknowledges the priority that the Austrian Presidency
has given to SMEs and welcomes the decision of the European
Council in March 2006 to include ‘unlocking business poten-
tial, especially for SMEs’ as one the specific areas for priority
action. The Committee would furthermore insist on a wide-
ranging and open assessment of the implementation of the
National Reform Programmes
in future by the European
Council and in particular a clear assessment on the delivery of
the benefits of these programmes to SMEs;

supports the provision of an adequate budget for the
1.8
Competitiveness and Innovation Programme (CIP), as it will be
a vital instrument for Community SME policy;

Promoting entrepreneurship and skills

believes that any entrepreneurship should be encour-
1.9
aged and supported; welcomes the fact that the communica-
tion recognises that the needs of women entrepreneurs, young
people, minorities, migrants and older entrepreneurs are not
being sufficiently met; points out that the groups mentioned
cannot be treated as a single entity, and emphasises that each
individual group requires its own measures — needs may vary
in different countries and even within groups; also feels that
the proposals outlined are limited to support for networking
and that more concrete proposals are needed if entrepreneur-
ship levels are to be raised among these diverse target groups,
drawing from the European pact for gender Equality, adopted
by the European Council on 23/24 March 2006, and extending
it to the other groups;

Improving SMEs access to markets

the Euro Info
1.13 welcomes the proposed review of
the
Centres (EIC) by the Commission as it considers that
performance of
the EICs has been inconsistent across the
Member States, together with their capacity to provide compre-
hensive supports and advice on internationalisation to the
SMEs; likewise, it emphasises that the functions and responsi-
bilities of
the network's member bodies should be clearly
defined, and that mechanisms should be put in place for coor-
dination with other players, such as Europe Direct, in order to
prevent duplication in the provision of information and advice
services, and to facilitate efficient use of resources;

would welcome proposals to strengthen programmes
1.14
to improve SMEs' access to information technologies (ICT),
which will help them to be more competitive and access new
markets;

1.15
improving access to public procurement for SMEs;

notes the Commission's proposals

in relation to

1.16
considers that efforts aimed at standardisation should
not introduce any further bureaucracy that would impact nega-
tively on SMEs;

Cutting red tape

1.17 welcomes the commitments of the Commission to
simplify the rules and regulations to make it easier for SMEs to
access Community programmes, but would welcome greater
clarity on how this will be achieved and what the implications
may be for organisations disbursing Community funds;

1.10
highlights the value of local and regional initiatives in
fostering entrepreneurial mindsets and promoting and deli-
vering entrepreneur-friendly education at all levels within the
school system, but considers that many education and training
initiatives are not sufficiently responsive or flexible to meet
SME needs;

1.18
supports the commitment to the screening of forth-
coming legislation and encourages the Commission to engage
with SME representative groups in order to ensure that new
legislation will not inhibit SME growth and innovation poten-
tial;

1.11 welcomes the introduction of the European Enterprise
Award competition as a means of promoting entrepreneurship,
showcasing best practice at
levels and
encouraging potential entrepreneurs;

regional and local

1.12
draws attention to the requirement for more positive
attitudes to calculated and well based business risk and toler-
ance of business failure by society generally, but more specifi-
cally the banking and public sectors and calls on Member
States to ensure that a more entrepreneurial culture is created
throughout the EU and that greater value is attached to what-
ever previous business experience an entrepreneur may possess;

1.19
notes the important role accorded to the SME Envoy
in ensuring that EU policy is SME friendly, but is concerned
that sufficient resources be provided and more importantly that
sufficient status and political leverage be given to the Envoy to
ensure that the aims of the office are achieved;

1.20 welcomes the proposed integration of
the ‘Think
Small First’ principle across all EU policies and would like to
see SMEs given enhanced priority within the impact assessment
procedure for Community proposals;

1.21
would also support other initiatives for making SME
policy development more coherent and predictable so that
SMEs can anticipate consequences and be better prepared;

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C 229/55

1.22
notes the success of the one stop shop model which
has proven very effective in supporting and stimulating SME
growth in several regions across the EU, recognises their
potential as information sites for public procurement informa-
tion and assistance in explaining the process of awarding
public service contracts and calls for greater emphasis on this
approach generally; this could take the form of holding confer-
ences and seminars on best practice, which would help to
disseminate the best regional initiatives in this area;

Improving SMEs' growth potential

the problems faced by SMEs in accessing alternative sources of
funding;

Strengthening dialogue and consultation with SME stakeholders

1.30
into
recognises the need to take SME concerns
account at an early stage in drafting of EU legislation and in
the standardisation process, but calls for more explicit mechan-
isms and arrangements by which consultation with SME stake-
holders can be enhanced;

1.23 welcomes the commitment to increase SME participa-
tion in EU programmes and initiatives but considers that
specific programme commitments would need to be closely
monitored to ensure that these commitments are indeed being
met;

1.31
acknowledges the creation of the SME Panels as a
mechanism for responsive consultation on Commission propo-
sals and for developing a communication between SMEs and
the European Institution, but would have some questions
regarding the representative nature of such panels;

1.24 would welcome a more explicit account of the role
and level of assistance from the EU Structural Funds for
assisting SMEs and the contribution of the other Community
Instruments and would like to see a more coherent approach
to the delivery of these programmes supporting SMEs;

1.25
recognises the importance of linking SMEs to research
and technological initiatives and the difficulties encountered by
SMEs in accessing and exploiting research,
innovation and
Intellectual Property, but calls for a differentiated approach to
be adopted for smaller and non-technological SMEs in relation
to supporting the successful adaptation of new ideas;

1.26
supports cooperation initiatives between local and
regional authorities, enterprises and their associations, acade-
mies, universities and research centres, as an instrument of
territorial industrial policy by establishing support networks to
help SMEs to overcome barriers to improved competitiveness,
better training and exploitation of innovation.

supports the proposed reform of the State Aids rules
1.27
to absorb, in part, SME risks, simplify procedures and adopt a
more flexible approach to aid for SMEs;

the

that

acknowledges

1.28
the 7th Framework
role
Programme for Research and Development can play in
supporting SME research activity, but calls for greater emphasis
on innovation, development and technology transfer
for
smaller SMEs, given the limited research capacity of a majority
of SMEs;

suggests

strengthening

boost
1.29
networking between SMEs, as well as measures that help to
establish networks between them. Boosting networks of ‘busi-
ness angels’ in particular could be extremely useful in solving

programmes

to

the

highlights

importance of

1.32
consultation with
regional and local interests and calls for greater clarity on how
the Commission intends to do this and on whether a more
decentralised approach in assisting SMEs will be encouraged by
the European Commission;

underlines the unique position that local and regional
1.33
authorities have as key implementation agencies but also as
partners to communicate with stakeholder groups and promote
entrepreneurship;

2. The Committee of the Regions' recommendations

2.1
urges Member States to consult the local and regional
authorities on the National Reform Programmes and to see to
it that these programmes deliver concrete measures to support
the creation and development of SMEs and calls for a clear and
explicit assessment of the benefits to SMEs arising from the
implementation of
the National Reform Programmes by
Member States;

proposes that, as part of its on-going analysis of the
2.2
implementation of
the Lisbon Strategy and the National
Reform Programmes, existing experiences of local and regional
policies for assisting SME development with a particular atten-
tion to industrial clusters and small firms network, will be iden-
tified with a view to drawing-up a guide to good practice;

2.3
calls on the European Commission to give more explicit
recognition to the role that local and regional authorities can
fulfil in supporting SMEs, providing an enabling environment
for their development and continued survival by means of
transfer, and as large customers for the goods and services that
SMEs provide through procurement, and in this regard calls for
more effective consultation with regional and local bodies on
SME policy initiatives;

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Official Journal of the European Union

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2.4
recommends that specific targets and deadlines be set
for the implementation of the new measures contained in the
communication, to help assess implementation, assist in disse-
to
mination of best practice and to ensure commitment
delivery;

2.8
requests that local and regional authorities give greater
consideration as to how they can better assist SMEs in their
areas, and enable them to access market opportunities espe-
cially in the provision of goods and services through public
procurement;

recommends that greater recognition be given to the
2.5
diversity of SMEs and calls
for more tailored supports,
including flexible training and education provision and sensitive
legislation to meet these diverse needs and calls for a more
differentiated
in Community
Programmes for micro, smaller and non-technological SMEs in
relation to supporting the successful application of new ideas;

approach to be

adopted

Promoting entrepreneurship and skills

2.6
calls on the European Commission, and the Member
States, to work with local and regional authorities that have
to
developed and are implementing innovative measures
support the entrepreneurial potential of women entrepreneurs,
young people, minorities, migrants and older entrepreneurs, in
order to inform the future development of Community policy
in this regard and recommends that consideration be given to
ring-fencing specific measures and allocations for these groups;

Improving SMEs access to markets

2.7
recommends that the review of the Euro Info Centres
(EIC) proposed by the European Commission should address
the adequacy of the financial provision to the EICs and also
their capacity to provide comprehensive supports and advice
on internationalisation to the SMEs in their catchment areas;

Brussels, 15 June 2006.

Cutting red tape

2.9
calls for greater efforts at reducing the impact of regu-
lation on the EU's SMEs and in ensuring that efforts aimed at
standardisation should not introduce any further bureaucracy
that would impact negatively on SMEs and urges engagement
with SME representative groups in order to ensure that new
legislation will not inhibit SME growth and innovation poten-
tial;

recommends that sufficient

2.10
resources, profile and
political leverage be given to the SME Envoy so that the objec-
tives of the position and expectation of SMEs are met;

2.11
calls for better coordination of SME policies and
support programmes through the further development of the
One Stop Shop model, such as e-government portals and
procurement one-stop shops;

2.12
calls on the European Commission and the Member
States to consider initiatives for making SME policy develop-
ment more coherent and predictable, such as the suggestion to
have two fixed dates per year where all new regulations would
come into force, so that SMEs can anticipate consequences and
be better prepared;

The President

of the Committee of the Regions

Michel DELEBARRE