COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Review of the "Small Business Act" for Europe
Date: 2011-02-23
Institutions: European Commission
Subjects: administrative formalities, aid to undertakings, competitiveness, economic growth, entrepreneurship, financing, investment aid, market access, public awareness campaign, small and medium-sized enterprises

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EUROPEAN COMMISSION 

Brussels, 23.2.2011 
COM(2011) 78 final 

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

Review of the "Small Business Act" for Europe 

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

Review of the "Small Business Act" for Europe 

1. 

INTRODUCTION  

The  “Small  Business  Act”  for  Europe  (SBA)1,  provides  a  comprehensive  SME  policy 
framework, promotes entrepreneurship and anchors the “Think Small First” principle in law 
and policy making to strengthen SMEs’ competitiveness. 

Built  around  ten  principles  and  several  concrete  policy  and  legislative  actions  to  implement 
them,  the  SBA  invites  both  the  Commission  and  the  Member  States  to  tackle  the  obstacles 
that hamper SMEs’ potential to grow and create jobs. This Communication takes stock of the 
implementation  of  the  SBA  and  assesses  the  new  needs  of  SMEs  operating  in  the  current 
economic  environment,  where  they  find  it  increasingly  difficult  to  get  financing  and  access 
markets. The SBA must contribute to achieving the ambitious objectives of the Commission’s 
new reform agenda, the Europe 2020 strategy2, in which several SME-relevant actions have 
already been set out in the key flagship initiatives. The Annual Growth Survey3, presented by 
the  Commission  in  January  2011,  concludes  that  the  delivery  of  the  Europe  2020  strategy 
requires,  in  addition  to  fiscal  consolidation,  pro-active  policies  to  drive  growth  in  the  EU, 
including measures to improve the environment for industry and business, in particular SMEs. 
Also the Commission Communication “Towards a Single Market Act” launched a debate on 
key  measures  to  be  adopted  in  order  to  relaunch  the  Single  Market,  including  initiatives  to 
strengthen the competitiveness of SMEs. 

This review presents an overview of progress made in the first two years of the SBA, sets out 
new  actions  to  respond  to  challenges  resulting  from  the  economic  crisis  reported  by 
stakeholders, and proposes ways to improve the uptake and implementation of the SBA with a 
clear role for stakeholders, with business organizations at the front-line. At the same time, it is 
borne in mind that each SME is different: their variations in size, field of activity and legal 
form  require  the  appropriately  adapted  attention  of  policymakers.  Finally,  it  indicates 
commitments  by  the  Commission  to  continue  implementing  the  SBA,  while  calling  on 
Member States to do their share. 

2. 

THE  IMPLEMENTATION  OF  THE SBA  IS  PROGRESSING  STEADILY  BUT  MORE  NEEDS 
TO BE DONE 

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2 
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Commission Communication ‘Think Small First’ - A ‘Small Business Act’ for Europe, COM(2008)394 
final. 
http://ec.europa.eu/eu2020/index_en.htm 
COM(2011) 11 final. 

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The SBA is based on ten key principles and a number of concrete actions fully endorsed by 
the  European  Council  in  December  2008.  Both  the  European  Commission  and  the  Member 
States  committed  themselves  to  set  out  the  necessary  measures  to  improve  the  regulatory, 
administrative  and  business  environment  and  to  support  European  SMEs.  The  main  focus 
was,  and  remains,  structured  around  three  areas:  ensuring  access  to  finance,  taking  full 
advantage of the Single Market and smart regulation.  

A first report on the Commission's and Member States' measures to implement the SBA was 
published  in  December  20094.  This  section  builds  on  these  results  and  assesses  how  and  to 
what extent the EU and Member States have implemented the SBA. 

2.1. 

Progress made by the European Commission  

A leap forward in improving the business environment 

All legislative initiatives foreseen by the SBA have been adopted, with the exception of the 
Regulation  providing  for  a  Statute  for  a  European  Private  Company  (SPE),  still  under 
discussion by the Council. The Commission urges Member States to adopt it without delay in 
order  to  reduce  administrative  burdens  in  connection  with  cross-border  business.  The 
Directive  on  e-invoicing  adopted  by  the  Council  in  2010  brings  benefits,  in  particular  by 
allowing  the  sending  of  e-invoices  on  equal  terms  to  that  of  paper  invoices.  Moreover, 
businesses  with  a  turnover  of  less  than  €2  million  may  benefit  from  an  optional  cash 
accounting scheme which makes it possible for them to delay accounting for VAT until they 
receive payment from their customers5. The Directive to combat late payment adopted by the 
Council in January 2011 requires public authorities to pay within 30 days and sets an upper 
limit  of  60  days  for  business  to  business  payments,  unless  businesses  expressly  agree 
otherwise  and  if  it  is  not  grossly  unfair  to  the  creditor6.  Member  States  are  invited  to 
implement  the  Directive  without  delay.  In  addition,  the  Commission  has  began  to  use  an 
"SME test” in its impact assessments.  

The EU’s role in access to finance has grown 

To  improve  SMEs’  access  to  finance,  financial  instruments  within  the  Competitiveness  and 
Innovation  Framework  Programme  (CIP)  continue  to  facilitate  venture  capital  investments 
and  provide  guarantees  for  lending  to  SMEs.  Microenterprises  represent  90%  of  the  over 
100 000  SMEs  that  have  benefited  so  far  from  the  CIP  financial  instruments.  A  further 
200 000  SMEs  are  expected  to  benefit  by  2013.  On  average,  each  SME  that  is  granted  a 
guaranteed  loan  in  the  EU  creates  1.2  jobs7.  The  Commission  has  also  set  up  a  permanent 
SME  Finance  Forum  bringing  together  SME  representatives,  banks,  market  operators,  and 
other  financial  institutions,  including  the  EIB,  in  order  to  address  the  various  practical 
obstacles  faced  by  SMEs  when  attempting  to  get  credit.  Furthermore,  the  Temporary  State 
Aid framework that allows for additional aid for SMEs has been partially prolonged until the 
end of 20118.  

Access to markets is improving, in particular for public procurement 

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http://ec.europa.eu/enterprise/policies/sme/small-business-act/implementation/files/sba_imp_en.pdf 
Moreover, the Commission Green Paper on the future of VAT includes a specific section on SMEs. 
http://ec.europa.eu/enterprise/policies/single-market-goods/fighting-late-payments/index_en.htm 
SEC(2005)0433 final, Annex to COM(2005)121 final. 
Communication  of  the  Commission:  Temporary  Union  framework  for  State  aid  measures  to  support 
access to finance in the current financial and economic crisis, (OJ CC 6, 11.1.2011, p. 5). 

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Both  the  Commission  and  the  European  standards  bodies  have  made  good  progress  in 
promoting SMEs’ access to the development and use of standards. With the financial support 
of  the  Commission,  a  number  of  experts  representing  SMEs’  interests  are  helping  to  make 
European  standards  more  SME-friendly  while  the  European  standards  organisations  are 
beginning  to  facilitate  SMEs'  access  to  standards,  e.g.  by  setting  up  SME  helpdesks  and 
portals.  

When it comes to public procurement a recent Commission survey suggests that SMEs now 
experience fewer administrative burdens when accessing public procurement and have better 
opportunities for joint bidding. They secured 33% of the total value of procurement contracts 
above the thresholds of the EU Directives in the period 2006-2008, while their overall share 
in the economy, as calculated on the basis of their combined turnover, is 52%9. 

In  November  2010,  the  Commission  opened  an  EU  SME  Centre  in  China  which  provides 
information,  advice,  training  and  matchmaking  opportunities  for  European  SMEs  willing  to 
export to or invest in the Asian market.  

Entrepreneurship takes its place in the new innovation policy 

The  "European  SME  Week"  continued  to  provide  a  pan-European  platform  with  more  than 
1,500  events  and  3  million  participants10.  This  will  be  continued  in  2011  and  beyond. 
Moreover,  the  'Erasmus  for  Young  Entrepreneurs'  programme,  launched  in  2009,  offers  on-
the-job  training  to  nascent  and  new  entrepreneurs  with  a  view  to  fostering  cross-border 
networking  and  business  cooperation  with  experienced  entrepreneurs.  Last  but  not  least, 
around  250  successful  female  entrepreneurs  now  form  the  European  Network  of  Female 
Entrepreneurship Ambassadors set up by the Commission in 2009 to inspire more women to 
become entrepreneurs11.  

The Commission has put entrepreneurs and SMEs at the heart of its innovation and research 
policy12.  Its  aim  is  to  remove  the  remaining  barriers  to  "bringing  ideas  to  market"  and 
promoting  entrepreneurial  mindsets  among  students  and  researchers.  The  proposal  includes 
new  financial  instruments  for  start-ups  and  fast  growing  firms  expanding  in  EU  and  global 
markets  (e.g.  loans,  venture  capital  and  risk-sharing  finance),  further  simplification  of  EU 
research  and  innovation  programmes,  affordable  intellectual  property  rights  (IPR)  and 
strategic use of procurement budgets. The Commission also intends to support internationally 
competitive  clusters,  bringing  together  large  companies  and  SMEs,  universities,  research 
centres and communities of scientists and practitioners to exchange knowledge and ideas. 

Cohesion  Policy  programmes13  and  the  European  Agricultural  Fund  for  Rural  Development 
(EAFRD)14 are both key means of turning the priorities of the SBA into practical action on 
the  ground  while  ensuring  complementarity  between  EU,  national  and  regional  support. 
Further  investment  should  encourage  regions,  to  find  specific  niches  in  the  innovation 
landscape, based on ‘smart specialisation strategies’. 

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http://ec.europa.eu/enterprise/policies/sme/business-environment/public-procurement/index_en.htm 
http://ec.europa.eu/enterprise/policies/entrepreneurship/sme-week/ 
http://ec.europa.eu/enterprise/policies/sme/promoting-entrepreneurship/women/ambassadors/index_en.htm 
The Europe 2020 flagship Initiative "Innovation Union", adopted by the Commission in October 2010.  
Communication ‘Regional Policy contributing to smart growth in Europe 2020‘, COM(2010)553. 
http://ec.europa.eu/agriculture/rurdev/leg/index_en.htm 
http://ec.europa.eu/agriculture/fin/index_en.htm 

and 

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2.2. 

Developments in the Member States 

Progress in improving the business environment is slow 

All Member States have acknowledged the importance of a rapid implementation of the SBA, 
but the approach taken and the results achieved vary considerably between Member States15. 
While most of them have adopted national targets for reducing administrative burdens, not all 
Member States have effectively reduced them. Only a few Member States have integrated an 
SME  Test  into  their  national  decision  making  approach  (Belgium,  Denmark,  Finland, 
Germany, Poland, Slovenia, Sweden and the United Kingdom ).  

Access to finance has improved but the challenge remains in the hands of the Member States 

As  a  response  to  the  financial  and  economic  crisis,  most  Member  States  have  adopted 
measures to enhance SMEs’ access to finance, especially bank lending, through advantageous 
subordinated loans,  loan  guarantee schemes or microcredit programmes. Six  Member  States 
(Belgium,  Hungary,  France,  Germany,  Ireland  and  more  recently  Finland)  have  created  a 
"credit  ombudsman".  Given  that  access  to  finance  is  in  the  end  largely  in  the  hands  of 
Member States, a stronger approach is warranted. 

Access to markets improves as Member States introduce innovative procurement procedures 
and e-government 

Several  governments  support  the  internationalisation  of  SMEs,  e.g.  by  financial  support  for 
export  promotion,  market  access  strategies  and  participation  in  trade  fairs  (Cyprus,  Czech 
Republic,  Denmark,  Estonia,  France,  Germany,  Ireland,  Italy,  Latvia,  Lithuania,  Malta,  the 
Netherlands, Poland, Portugal, the Slovak Republic, Spain, Sweden and the United Kingdom). 
Some  of  them  (e.g.  Denmark,  Slovenia)  focus  on  high-growth  companies  willing  to 
internationalise;  some  others  have  established  new  export  promotion  agencies  (e.g. 
Luxembourg) or new support programmes (e.g. Hungary). A mentoring scheme, whereby big 
companies support the internationalisation of SMEs, is also being piloted (e.g. France). 

Only a few countries have reported that they have started to promote the European Code of 
Best Practices in order to facilitate SMEs’ access to public procurement (e.g. Austria, Cyprus, 
France,  Germany,  Hungary,  Ireland,  Lithuania,  Poland,  Portugal,  Sweden  and  the  United 
Kingdom). The most widespread SME-friendly measures in this area remain cutting tenders 
into  lots,  whenever  possible,  and  facilitating  access  to  information  through  centralised 
websites, interactive web pages, and other e-procurement developments. 

Some Member States have developed new models to favour collaboration among companies 
(e.g. Italy with business networks and Germany with cluster networks). 

In order to support entrepreneurship at this difficult economic time, Member States have to 
step up their efforts to simplify bankruptcy procedures 

No progress can be reported in the area of simplification of bankruptcy procedures. Only five 
the 
Member  States  (Belgium,  Finland,  Ireland,  Spain  and 
recommendation  to  complete  all  legal  procedures  to  wind  up  a  business  in  the  case  of  non-
fraudulent bankruptcy within a year. This is the same as 2009 and 2008. 

the  UK)  comply  with 

15 

Examples of Member States’ actions to implement the SBA are included in the Annex. 

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Finally, Member States are making good progress in making it cheaper and faster to start up a 
company. The average time and cost to start up a private limited company in 2010 was 7 days 
(12 days in 2007) at a cost of € 399 (€ 485 in 2007)

16.  

2.3. 

Need for further action 

Much has been achieved since the adoption of the SBA. The Commission has been faithful to 
commitments and implemented most of the measures promised. Member States, on the other 
hand,  present  a  patchier  record.  For  the  SBA  to  achieve  its  objective  of  an  SME  friendly 
economic policy, it is important to ensure that the actions to which the EU and Member States 
committed  themselves  at  the  time  of  its  adoption  are  fully  implemented.  At  the  same  time, 
much  has  changed  in  the  economic  context  and  new  challenges  have  emerged.  For  SME 
policy to respond correctly to the current circumstances, it is essential to look further.  

On  this  basis,  the  SBA  Review  proposes  a  set  of  new  actions  aiming  to  respond  to  the 
challenges resulting from the economic crisis, and further developing existing actions in line 
with the Europe 2020 strategy, in the following areas:  

–  making smart regulation a reality for European SMEs, 

–  paying specific attention to SMEs’ financing needs,  

–  taking a broad-based approach to enhancing market access for SMEs, 

–  helping SMEs to contribute to a resource-efficient economy, and  

–  promoting entrepreneurship, job creation and inclusive growth. 

These  actions  will  only  make  an  impact  if  based  on  strong  SME  governance.  Ways  to 
improve this are proposed by the SBA Review, giving a clear role for stakeholders. 

3. 

GIVING FRESH IMPETUS TO THE SBA  

3.1. 

Smart regulation needs to become a reality for European SMEs  

The  implementation  of  the  “Think  Small  First”  principle  remains  the  core  principle  of  the 
SBA.  It  implies  a  simplification  of  the  regulatory  and  administrative  environment  in  which 
SMEs  are  operating,  notably  by  designing  rules  according  to  it,  including  the  ‘only  once’ 
principle  or  by  using  tools  like  e-government  and  one-stop-shop  solutions.  While  both  the 
Commission  and  Member  States  have  increasingly  made  efforts  to  implement  the  principle, 
there  is  still  scope  for  making  its  application  more  systematic  based  on  the  EU’s  Smart 
Regulation agenda17. 

The  Commission  will  further  strengthen  the  application  of  the  ‘SME  test’  in  its  impact 
assessment procedure to ensure that impacts on SMEs are thoroughly analysed and taken into 
account in all relevant legislative and policy proposals, with a clear indication of quantified 
effects  on  SMEs,  whenever  possible  and  proportionate.  While  performing  "competitiveness 
proofing"  of  its  proposals  the  Commission  will  analyse  the  ability  of  European  businesses, 

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http://ec.europa.eu/enterprise/policies/sme/business-environment/start-up-procedures/index_en.htm 
Communication on Smart regulation in the EU, COM(2010) 543. 

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and SMEs in particular, to compete on the EU markets and abroad. Moreover, the differences 
between micro-, small and medium-sized enterprises need to be recognised and be taken into 
account  when  applying  the  ‘SME  Test’,  and,  where  appropriate,  specific  measures  such  as 
reduced fees or simplified reporting obligations should be envisaged. Whenever the option to 
implement  these  types  of  measures  is  left  to  the  Member  States,  they  should  make  use  of 
them. Similarly, Member States should avoid ‘gold plating’, i.e. exceeding the requirements 
of EU legislation when transposing Directives into national law. The Commission confirms its 
readiness to assist the Member States in this task.  

To  ensure  that  the  regulatory  framework  is  fit  for  purpose  and  to  identify  the  cumulative 
effects  of  legislation,  the  Commission  will  apply  "fitness  checks"  to  existing  legislation 
whereby  evaluations  of  individual  pieces  of  legislation  are  complemented  with  a  more 
comprehensive approach. This will help to identify inconsistencies and obsolete or ineffective 
measures  and  will  further  reduce  the  burden  on  SMEs,  including  those  working  in  non-
industrial  sectors  for  instance  in  the  field  of  trade  or  crafts.  Such  an  approach  is  currently 
being developed in the area of services with a view to testing the overall functioning of the 
Single Market for services, notably from the angle of SMEs18. 

Simplification  is  a  major  objective.  By  October  2011,  the  Commission  will  simplify  the 
transparency  and  reporting  requirements  for  smaller  listed  companies.  Moreover,  the 
Commission  is  assessing  the  simplification  of  the  audit  requirements  for  small  firms  to 
follow-up the Green Paper on Audit policy19.  

Involving stakeholders closely when developing EU SME policy is an essential element of the 
SBA. The decision to increase the period of public consultations launched by the Commission 
from  eight  to  twelve  weeks  from  2012  onwards  should  give  more  time  to  stakeholders  to 
consult  their  members  and  to  consolidate  their  position  on  SME-relevant  initiatives.  The 
Enterprise  Europe  Network’s  revised  SME  panels  complement  feedback  received  from 
established SME representative bodies at national and EU level.  

Efforts  to  make  public  administrations  responsive  to  SMEs  need  to  be  strengthened,  in 
particular by increasing the use of e-government solutions. The e-Government Action Plan20 
sets out a wide range of actions which will allow SMEs to spend less time on administrative 
procedures,  including  through  promoting  cross-border  e-procurement.  In  the  same  manner, 
the  Commission  will  work  with  Member  States  to  further  develop  the  "Points  of  Single 
Contact", aimed at considerably facilitating such procedures, into user-friendly e-Government 
portals  which  allow  for  electronic  completion,  including  cross-border,  of  all  necessary 
administrative requirements. 

The Commission will: 

•  ensure that SME expertise is fully available when assessing the impact of new proposals 
on SMEs while taking into account differences in the size of enterprises, where relevant; 

•  promote  across  the  EU  the  application  of  the  "only  once"  principle  whereby  public 
authorities and administrative bodies should refrain from requesting the same information, 
data,  documents  or  certificates  which  have  already  been  made  available  to  them  in  the 

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COM(2011) 20. 
http://ec.europa.eu/internal_market/consultations/2010/green_paper_audit_en.htm 
http://ec.europa.eu/information_society/activities/egovernment/action_plan_2011_2015/index_en.htm 

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context of other procedures;  

•  simplify the EU accounting framework by revising the basic requirements for annual and 

consolidated accounts (4th and 7th Directive) of limited liability companies; 

•  in  line  with  the  Smart  Regulation  Communication,  explore  the  possibility  for  reducing 

"gold plating" by Member States; 

•  carry out “fitness checks” in order to assess whether the regulatory framework for a policy 

area is fit for purpose and, if not, what should be improved; 

•  carry  out  Single  Market  “performance  checks”  in  order  to  identify  and,  as  appropriate, 
remedy difficulties pertaining to the interaction of simultaneously applicable pieces of EU 
legislation to the service sector.  

The Member States are invited to: 

•  systematically assess the impact of legislation on SMEs using an ‘SME test’ while taking 

into account differences in the size of enterprises, where relevant; 

•  present  at  a  defined  moment  of  each  year  a  forward  planning  of  business  related 

legislation that will enter into force over the next budgetary period; 

•  apply the “Think  Small First” principle not only to  legislation but  also  to administrative 
procedures affecting SMEs (e.g. by introducing a single interlocutor and reduced reporting 
obligations). 

3.2. 

The economic situation requires specific attention to SMEs’ financing needs 

The SBA invites the EU and Member States to facilitate SMEs’ access to finance, including 
supporting  timely  payments  in  commercial  transactions.  Due  to  the  economic  crisis,  many 
SMEs  have  seen  their  financial  situation  and  their  credit  worthiness  deteriorate,  despite  a 
viable  underlying  business  model  and  a  solid  customer  base.  At  the  same  time,  the  latest 
European Central Bank (ECB) lending surveys have shown that several European banks have 
tightened their credit standards for companies21. New initiatives are needed to improve SMEs’ 
access  to  finance,  including  via  capital  markets  and  encouraging  investment  through  fiscal 
policies.  High  indebtedness  has  made  many  SMEs  vulnerable  to  difficult  financial  market 
conditions.  Therefore,  Member  States  should  provide  incentives  for  investing  revenue  in 
equity, keeping in mind  that  the needs of  entrepreneurial growth companies and established 
mainstream European SMEs are different. Public SME finance schemes should be boosted at 
both  national  and  European  level  in  order  to  address  identified  market  failures,  and 
streamlined  to  improve  accessibility.  Particular  attention  should  be  paid  to  the  problem  of 
financing the first growth phase of firms. 

New  regulatory  provisions  for  financial  institutions  introduced  either  at  EU  level  or  by  the 
Member  States  should  be  appropriately  calibrated  and  accompanied  by  impact  assessments 

21 

http://www.ecb.int/stats/money/surveys/lend/html/index.en.html 

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(‘SME  Test’).  The  Commission  will  be  particularly  attentive  to  the  impact  on  lending  to 
SMEs when proposing increased capital requirements for banks in 2011.  

Improved  and  more  efficient  loan  guarantee  schemes  are  essential  for  SMEs  which  do  not 
always  have  collateral.  This  is  the  case  in  particular  for  those  borrowing  small  amounts,  as 
improved provision of microcredit can boost entrepreneurship at national and regional levels. 
To this end the Commission has launched the Progress Microfinance Facility22 and is working 
on  encouraging  the  exchange  of  good  practices  in  microfinance,  promoting  training  and 
offering  support  for  microfinance  institutions,  notably  in  the  framework  of  JASMINE23, 
supporting the drafting of a code of good conduct24. It is important that all banks, irrespective 
of  their  size,  can  have  access  to  all  EU  financial  instruments.  Furthermore,  banks  could  be 
encouraged  to  develop  specific  creditworthiness  criteria  for  SMEs,  taking  into  account,  for 
example, qualitative criteria.  

The  market  deficiencies  in  venture  capital  require  that  the  supply  of  venture  capital  is 
increased  and  that  there  are  high  quality  firms  with  growth  potential  in  which  to  invest.  To 
improve  entrepreneurs’  ability  to  address  investor  concerns  and  to  be  ready  for  investment, 
existing  good  training  practices  across  Europe  should  be  spread  more  widely.  Furthermore, 
there  is  a  need  to  establish  quality  criteria  at  European  level  for  good  investment  readiness 
programmes, to help entrepreneurs to choose the right programme.  

There  is  also  a  need  to  make  investors  more  aware  of  the  opportunities  offered  by  the 
development  prospects  of  listed  SMEs,  to  create  the  conditions  for  an  efficient  network  of 
stock exchanges or specific regulated markets focussing on SMEs, as well as to make listing 
and disclosure requirements more adapted to SMEs. 

The Commission will adopt an action plan for improving SMEs’ access to finance, including 
access  to  venture  capital,  capital  markets  and  will  try  to  improve  matching  of  offers  and 
requests of venture capital, within the Enterprise Europe Network. 

EU financial support 

The  Commission  considers  that  financial  instruments  should  play  an  increasing  role  in 
facilitating SMEs’ access to finance and, at the same time, provide important leverage for the 
capital  available  for  lending.  As  part  of  its  overall  proposal  on  the  post-2013  Multiannual 
Financial Framework, the Commission will propose streamlining and enhancing the existing 
set  of  innovative  financial  instruments  that  includes  the  SME  Guarantee  Facility  and  the 
RSFF25  to  help  SMEs  to  invest  and  grow.  The  Commission  will  be  particularly  attentive  to 
ensure that the future financial instruments of the EU l play a key role in ensuring that market 
deficiencies affecting SMEs are correctly addressed.  

Moreover,  regulatory  deficiencies  will  also  be  addressed  by  making  an  efficient  single 
European market for venture capital funds a reality, looking at all the elements that hinder the 
smooth  functioning  of  the  venture  capital  fund  market  and  hamper  growth,  and  ensuring 
appropriate protection of retail investors, where relevant.  

22 
23 
24 

25 

http://ec.europa.eu/social/main.jsp?langId=en&catId=836 
Joint Action to support Microfinance Institutions in Europe. 
http://ec.europa.eu/social/main.jsp?langId=en&catId=836 and 
http://ec.europa.eu/enterprise/policies/finance/borrowing/microcredit/index_en.htm 
Risk Sharing Financial Facility, http://www.eib.org/products/loans/special/rsff/index.htm?lang=en 

EN 

9 

   EN 

                                                 
 
The European Council's call in February 2011 for simplification of EU instruments in support 
of  research  and  innovation  aims  to  facilitate  the  take-up  of  these  instruments  by  innovative 
companies,  in  particular  by  finding  a  new  balance  between  trust  and  control.  The  European 
Council  calls  for  an  assessment  of  how  best  to  meet  the  needs  of  fast-growing  innovative 
companies  through  a  market-based  approach.  In  this  connection,  the  Commission  was  also 
invited  to  explore  the  feasibility  of  a  Small  Business  Innovation  Research  Scheme.  Public 
procurement  should  be  better  geared  towards  creating  greater  demand  for  innovative  goods 
and  services,  and  intellectual  property  rights  should  be  better  valorised  as  outlined  in  the 
Innovation Union flagship.  

The  Commission  will  strengthen  its  actions  to  facilitate  SMEs’  access  to  EU  funding 
programmes.  It  will  continue  to  follow  up  the  effective  allocation  of  the  Cohesion  policy 
budget  for  business  support,  especially  the  part  directly  targeted  to  SMEs26.  It  will  also 
continue to launch SME-dedicated calls in the current Research Framework Programme and 
to provide improved user support. The Commission is also considering proposing a Common 
Strategic  Framework  covering  all  current  Research  and  Innovation  programmes  and 
initiatives,  which  would  benefit  in  particular  SMEs  by  offering  lighter  administrative  and 
financial rules, a set of streamlined instruments for SMEs covering the full innovation chain 
in a seamless manner, and a one-stop-sop for advice and support.  

The ongoing simplification of the Financial Regulation27 should also have a positive impact 
on SMEs’ access to and participation in Union financing. 

The Commission will:  

•  within  a  streamlined  and  enhanced  set  of  financial  instruments,  aim  to  help  a  higher 
number  of  beneficiary  SMEs  through  strengthened  loan  guarantee  schemes  that  will 
support investments, growth, innovation and research; 

•  make  EU  funding  programmes  more  accessible  to  SMEs  by  further  simplifying 

procedures;  

•  adopt in 2011 an action plan for improving SMEs’ access to finance, including access to 
venture  capital  markets,  as  well  as  targeted  measures  aimed  at  making  investors  more 
aware of the opportunities offered by SMEs; 

•  consider adopting a new legislative regime to ensure that by 2012  venture capital funds 

established in any Member State can function and invest freely in the EU; 

•  as  requested  by  the  European  Council,  explore  options  for  setting  up  an  intellectual 
property rights valorisation instrument at the European level, in particular to ease SMEs' 
access to the knowledge market. 

The Member States are invited to: 

26 

27 

The total planned allocation to business support in Cohesion Policy in the current programming period 
2007-2013  is  around  € 55  billion  of  which  € 27  billion  is  explicitly  targeted  at  SMEs  only  and  €28 
billion is not related to business size.  
Proposal  for  the  Regulation  of  the  European  Parliament  and  of  the  Council  on  the  financial  rules 
applicable to the annual budget of the Union COM(2010)815. 

EN 

10 

   EN 

                                                 
•  facilitate  SMEs’  access  to  the  Structural  Funds  by  allowing  SMEs  to  submit  all  data 

necessary for Structural Funds support only once; 

•  develop  "credit  ombudsman"-type  solutions  to  further  facilitate  the  dialogue  between 

SMEs and credit institutions; 

•  ensure  that  inconsistencies  in  tax  treatment  do  not  lead  to  double  taxation  which  would 

hamper cross-border venture capital investments; 

•  create one-stop-shops where SMEs can apply for European, national and local grants. 

3.3. 

Providing a broad-based approach to enhance market access for SMEs 

The SBA invites the Commission and the Member States to support and encourage SMEs to 
benefit from the Single Market, including the digital Single Market and the growth of markets 
outside  the  EU  while  facing  the  challenge  of  a  sustainable  economy.  Moreover,  the  Europe 
2020 strategy sets out several actions to improve the EU’s competitiveness vis-à-vis its main 
trading partners, notably through establishing an industrial policy for the globalisation era and 
a  renewed  trade  strategy28,  and  to  promote  a  resource-efficient  Europe.  Finally,  the 
Communication  “Towards  a  Single  Market  Act”29  sets  ambitious  objectives  to  improve  the 
Single Market and presents a comprehensive package of measures.  

3.3.1.  Making the most of the Single Market for SMEs 

Despite considerable progress in helping SMEs to benefit from the Single Market, they still 
remain  cautious  in  engaging  in  cross-border  activities  for  various  reasons.  Making  cross-
border payments is often perceived as costly and burdensome, as are the available instruments 
to  resolve  possible  conflicts  with  customers,  in  particular  in  e-commerce.  Facilitating  the 
recovery of cross-border debts is crucial for a well-functioning Single Market. Given that over 
60% of cross-border debt remains unrecovered, the Commission will bring forward measures 
to facilitate cross-border debt recovery30.  

It is also necessary to further facilitate SMEs’ access to public procurement which represents 
17% of the EU GDP, notably through further simplification31. SMEs’ access to standards and 
the  representation  of  their  interests  represented  in  the  standardisation  process  is  improving 
albeit slowly. The process could still be improved to ensure, among other things, a balanced 
stakeholder participation in the standardisation process. Differences in company law, contract 
law  and  tax  systems  may  create  difficulties  and  generate  costs  to  the  extent  that  they 
discourage  entrepreneurs  from  expanding  their  business  to  other  Member  States.  Therefore, 
the Commission will propose a single set of rules for computing the corporate tax base across 
the  EU  to  make  it  simpler  for  SMEs  to  expand  their  activities  within  the  Single  Market. 
Initiatives relating to the functioning of VAT will also be designed to limit the administrative 

28 
29 
30 
31 

EN 

Communication “Trade, Growht and World Affairs”, COM(2010)612, 9.11.2010 
http://ec.europa.eu/internal_market/smact/index_en.htm 
SEC(2005)433, Annex to COM(2010)135 final. 
See 
http://ec.europa.eu/internal_market/publicprocurement/modernising_rules/consultations/index_en.htm 

modernisation 

public 

Green 

Paper 

EU 

the 

on 

of 

procurement: 

11 

   EN 

 
                                                 
burden on businesses and to promote cross-border activity. Moreover, SMEs often face unfair 
contractual terms and practices imposed by various players in the supply chain.  

The Commission is taking action to ensure that optimal conditions exist for SMEs to engage 
in cross-border trade, including via the internet. The Single Euro Payments Area (SEPA) will 
allow SMEs to benefit from simpler payment arrangements with reduced costs and no need to 
use more than one bank account within the Single Market32. SEPA also provides a platform 
for  the  development  of  pan-European  e-invoicing  and  its  mass  adoption  by  SMEs.  The 
Commission has also emphasised in its ‘Digital Agenda’ the potential of online business, with 
a  specific  target  of  33%  of  SMEs  conducting  online  purchases/sales  by  2015.  Moreover,  to 
promote cheap, simple and quick redress and thus offer an efficient alternative to more costly 
and lengthy court proceedings, the Commission is currently preparing a legislative proposal to 
promote  Alternative  Dispute  Resolution  (ADR)  schemes  in  the  EU,  including  the  possible 
development  of  an  EU-wide  online  dispute  resolution  system  for  e-commerce  transactions 
covering both B2B and B2C situations.  

The  Commission  will  carry  out  an  in  depth  analysis  of  the  unfair  commercial  practices  and 
contractual clauses in the business to business environment in the Single Market and table a 
legislative proposal if needed in order to protect businesses against unfair contractual terms. 
Moreover, the Commission will issue a Communication on the Directive on Misleading and 
Comparative  Advertising33  to  look  into  problems  SMEs  often  face  such  as  directory  scams. 
The  Commission  will  also  work  towards  ensuring  that  SMEs  in  economically  dependent 
situations  will  be  protected  against  unfair  commercial  practices  and  have  the  possibility  of 
seeking  effective  redress  against  such  practices,  wherever  they  are  applied  within  supply 
chains. 

EU law and policies recognise the importance of guaranteeing adequate consumer information 
on the manufacturing process, including the manufacturer and the origin of products marketed 
in  the  Single  Market34.  Special  attention  is  given  to  the  respect  of  standards  governing 
workers’  health  and  safety,  ensuring  the  hygiene  and  safety  of  products,  and  to  rules 
protecting  the  environment.  While  legislative  initiatives  aimed  at  improving  the  regulatory 
framework  are  being  discussed  at  the  Parliament  and  the  Council  with  the  support  of  the 
Commission35,  SMEs  should  be  better  informed  about  how  they  can  use  existing  EU  legal 
instruments  to  protect  their  legitimate  interests  against  unfair  commercial  practices  and 
misleading information. 

SMEs  are  regularly  harmed  by  anti-competitive  practices,  such  as  cartels  or  abuse  of 
dominant position. To look at the options so that SMEs can effectively exercise their right to 
full  compensation  for  such  kind  of  damage,  the  Commission  has  launched  a  public 
consultation on a coherent European approach to collective redress.  

Finally,  a  considerable  amount  of  Single  Market-related  information  and  advice  for 
businesses is made available through EU information services (such as the Enterprise Europe 

32 
33 
34 

35 

http://ec.europa.eu/internal_market/payments/sepa/ 
Directive 2006/114/EC 
Information about the origin or place of provenance of goods is covered by two legislative initiatives 
currently under discussion: the proposal for a Regulation concerning the provision of food information 
to consumers and the “Quality Package”, COM(2010)738. 
Proposal  for  a  Council  Regulation  on  the  indication  of  the  country  of  origin  of  certain  products 
imported  from  third  countries  (COM(2005)661)  and  Proposal  for  a  Regulation  of  the  European 
Parliament  and  of  the  Council  on  textile  names  and  related  labelling  of  textile  products 
(COM(2009)31). 

EN 

12 

   EN 

                                                 
Network,  European  Small  Business  Portal,  SOLVIT,  Your  Europe  -  Business  Portal)  and 
national websites. This allows SMEs to access information in their own language. At the same 
time,  the  Member  States  should  promote  the  Commission's  information  services  and  ensure 
an increased coordination between the Commission's and national information tools. 

The Commission will:  

•  carry out an in-depth analysis of unfair commercial practices in the European Union and 

table a legislative proposal, if needed; 

•  present  tax  initiatives,  such  as  a  legislative  proposal  for  a  Common  Consolidated 
Corporate  Tax  Base  (CCCTB)  and  a  new  VAT  strategy  aiming  notably  at  reducing  tax 
obstacles and administrative burdens for SMEs in the Single Market;  

•  undertake a revision of the European standardisation system in 2011; 

•  prepare a guidance document explaining the rules on labelling of origin and inform SMEs 

of the means available to them to protect their legitimate interests; 

•  propose  an  instrument  of  European  Contract  Law  responding  to  the  needs  of  SMEs 

seeking to enter new markets; 

•  set up a uniform procedure to facilitate cross-border debt recovery by enabling a creditor 

to preserve money held by his debtor in a bank account in another Member State. 

The Member States are invited to: 

•  fully implement the ‘European Code of Best Practices facilitating SMEs’ access to public 

procurement’; 

•  promote  the  online  publication  of  easily  accessible  and  free-of-charge  abstracts  of 
European  standards  with  a  clear  indication  of  changes  made  whenever  standards  are 
revised.  

The Commission will, and the Member States are invited to: 

•  together strive to enhance electronic interoperability in the Internal Market, in particular 
delivering on the Single Market Act’s  proposal for a decision by 2012 to ensure mutual 
recognition of e-identification and e-authentication across the EU and the revision in 2011 
of the Directive on electronic signatures. 

3.3.2.  Helping SMEs to face globalised markets  

Globalised  markets  offer  new  business  opportunities  to  EU  SMEs.  According  to  a  recent 
study36,  they  are  more  internationally  active  than  their  counterparts  in  the  USA  and  Japan: 

36 

http://ec.europa.eu/enterprise/policies/sme/market-access/internationalisation/index_en.htm 

EN 

13 

   EN 

 
 
                                                 
25% of EU SMEs export or have exported at some point during the last 3 years, of which 13% 
exported outside the EU Single Market. At the same time, the study points to a huge untapped 
market  potential,  in  particular  in  the  BRIC  countries37  which  are  estimated  to  account  for 
about 60% of world GDP by 2030. At present, these markets are only served by 7% to 10% of 
exporting EU SMEs.  

To be able to successfully access third-country markets, SMEs must be equipped with proper 
skills,  be  supported  by  an  appropriate  policy  framework  enabling  them  to  acquire  a 
competitive  advantage,  and  have  a  level  playing  field  when  it  comes  to  tackling  obstacles 
such  as  foreign  regulatory  frameworks  and  non-tariff  barriers38.  The  Commission  is 
considering  a  number  of  options  including  market  access  assistance  and  guidance  on 
regulatory  issues,  standardisation  and  conformity  assessment.  This  takes  into  account  the 
services provided by existing business organizations, the Enterprise Europe Network as well 
as  the  EU  Business  and  Technology  Centre  in  India  and  the  EU  SME  Centre  in  China.  In 
parallel, SMEs benefit from actions undertaken in the context of the Market Access Strategy, 
such  as  the  Market  Access  Database  or  the  work  of  over  30  Market  Access  Teams  in  key 
export  markets  who  bring  together  the  local  expertise  of  representatives  of  EU  delegations, 
Member States’ embassies and EU business with the aim of improving European companies’ 
access to these markets39.  

The Commission is keen to promote new forms of collaboration among companies, including 
between businesses located in different regions or countries. This represents of a new model 
of  collaboration  through  clusters  and  business  networks,  which  enable  enterprises  to  join 
forces and will stimulate a coherent and coordinated approach to achieve a common objective 
without  losing  their  independence.  The  Commission  will  carry  out  a  study  on  how  the 
European level can best support this kind of collaboration.  

In addition, in early 2011 the Commission will launch new actions in support of world-class 
clusters to promote international cluster activities, excellence in cluster management and the 
extension of the European Cluster Observatory.  

As  part  of  the  EU’s  international  agenda,  the  Commission  will  promote  areas  of  particular 
interests for SMEs  in its bilateral and multilateral co-operation with third countries, e.g. trade 
facilitation,  as  well  as  the  integration  of  the  SBA  principles  in  relevant  Agreements  and 
related monitoring and coordination mechanisms. Moreover, it will pursue efforts to eliminate 
non-tariff barriers and restrictions on access to raw materials by using the available tools of 
trade  policy.  This  will  also  contribute  to  further  open  up  sectors  that  are  still  largely 
inaccessible to SMEs like services and public procurement markets, and help to enforce IPR.  

37 
38 

39 

Brazil, Russia, India and China. 
A study commissioned by the Commission identifies specific problems encountered by various types of 
SMEs when involved in Trade Defence Investigations, including lack of transparency and difficulties in 
accessing  information  and  proposes  possible  solutions  to  them.  The  Member  States  are  currently 
discussing  the findings of  this  study  in  order  to  decide on follow-up  actions.  For  further  information, 
please  see  DG  Trade  website:  http://ec.europa.eu/trade/tackling-unfair-trade/tradedefence/information-
for-business/sme/ 
http://ec.europa.eu/trade/creating-opportunities/trade-topics/market-access/export-from-eu/ 

EN 

14 

   EN 

                                                 
The Commission will:  

•  present  in  2011  a  new  strategy  on  the  support  of  EU  SMEs  in  markets  outside  the 
European  Union  and  a  strategy  for  globally  competitive  clusters  and  networks40  with  a 
specific focus on analysing the role played by them in improving SMEs’ competitiveness; 

•  address problems of SMEs with regard to  the use of the EU Trade Defence Instruments 

(TDI) by increasing information on and assistance in using these instruments;  

•  pursue  systematic  efforts  to  eliminate  non-tariff  barriers  in  Free  Trade  Agreements  and 
facilitate SMEs’ access to third country markets and help to enforce IPR, in line with the 
renewed trade policy.  

The Member States are invited to: 

•  provide support to SME network-building, in accordance with Community State Aid and 

competition rules;  

•  encourage SMEs to hire or buy in specialist expertise in order to help companies to grow, 

innovate and go international. 

3.3.3.  Helping SMEs to contribute to a resource-efficient economy 

The  Commission  has  taken  action  to  raise  SMEs’  awareness  of  environmental  and  energy-
related issues and has provided support to assist them in implementing legislation, assessing 
their  environmental  and  energy  performance  and  upgrading  skills  and  qualifications.  While 
these actions need to be reinforced, Europe 2020 shifted the focus to helping SMEs become 
key  players  in  transitioning  to  resource-efficient  growth.  Whilst  SMEs  have  some  market 
incentives  to  optimise  their  resource  use,  in  many  cases  the  market  signals  are  not  easy  to 
identify  or  interpret  and  SMEs  face  challenges  of  limited  information,  time  and  human  and 
financial  resources.  To  overcome  this  they  need  the  availability  of  appropriate  funding, 
including  through  regional  business  support  programmes,  timely  information,  and  concrete 
assistance provided by business support organisations such as the chambers of commerce and 
consulting  services.  Developing  incentives  to  encourage  energy  and  resource  audits  can 
promote this transition.   

Market-based  instruments  can  also  be  used  to  encourage  behaviour  leading  to  resource 
efficiency, so benefiting job creation and economic growth.  

The Commission will set up a specific framework to allow SMEs to take up the challenge of a 
resource-efficient economy and to reap the potential. In particular the Commission will: 

•  implement the new Energy Efficiency Plan, and move towards an Eco-innovation Action 
Plan  that  pays  special  attention  to  SMEs  in  promoting  networking,  low  carbon 
technologies and resource efficient innovation; 

•  further  develop  the  specific  action  on  environmental  and  energy  experts  within  the 
Enterprise  Europe  Network,  whereby  specific  knowledge  transfer  on  the  state  of  the  art 

40 

Commission  Communication  "An  Integrated  Industrial  Policy  for  the  Globalization  Era  Putting 
Competitiveness and Sustainability at Centre Stage", COM (2010) 614. 

EN 

15 

   EN 

                                                 
methodologies  and  best  practices  will  be  transferred  from  regions  that  have  advanced 
experience to those lagging behind;  

•  the  Enterprise  Europe  Network  will  support  SMEs  in  marketing  products  and  services 

resulting from best practices, in particular low carbon technologies; 

•  SME  Panels  and  the  SME  feedback  database  of  the  Enterprise  Europe  Network  will  be 
used  to  help  to  improve  the  quality  of  environmental  legislation,  including  its 
implementation. 

The Member States are invited to:  

•  make  better  use  of  State  Aid  possibilities  to  support  investment  in  the  environment  and 

energy fields; 

•  help  SMEs  acquire  the  necessary  managerial  and  technical  skills  to  adapt  their  business 
towards  the  low  carbon,  resource  efficient  economy,  inter  alia  through  the  European 
Social Fund; 

•  provide  regulatory  incentives  to  SMEs  registered  with  the  Eco-Management  and  Audit 
Scheme (EMAS) and with ISO 14.000 and take measures to encourage micro and small 
enterprises to take advantage of simplified EMAS-type schemes, such as “EMAS-EASY”. 

3.4. 

Promoting entrepreneurship, job creation and inclusive growth  

SMEs are the leading job creators in the EU but due to the economic crisis some 3.25 million 
jobs in SMEs have been lost.  

In the current situation, the Member States must further simplify administrative requirements 
and  the  procedures  to  wind  up  a  failing  business.  Moreover,  about  one  third  of  business 
failures  occur  in  the  context  of  a  business  transfer.  Therefore  it  is  essential  to  improve  the 
framework conditions for business transfers as over the next decade up to 500,000 businesses 
providing  2  million  jobs  will  have  to  be  transferred  every  year41.  The  Commission  will 
present a set of policy recommendations in 2011 based on a study measuring the size of the 
bankruptcy and second chance problem. 

As part of the Flagship initiative "An Agenda for New skills and jobs"42, the Commission will 
assess future skills needs in micro and craft (-type) enterprises. Moreover, the "Youth on the 
Move" initiative43 puts the accent on training to ensure that education systems truly provide 
the right skills to start and manage an SME. 

Too few innovative EU SMEs grow into large, globally successful companies. The remaining 
barriers for entrepreneurs to "bring ideas to market" must be removed using a wide range of 
policy  measures  based  on  a  broad  concept  of  innovation  in  products  and  services  which 
includes  any  change  that  speeds  up  and  improves  the  way  businesses  conceive,  develop, 
produce  and  market  new  products  and  services  as  set  out  in  the  Innovation  Union 
Communication44. The Commission will explore the feasibility of monitoring the innovation 

41 
42 
43 
44 

http://ec.europa.eu/enterprise/policies/sme/documents/transfers/index_en.htm 
COM(2010) 682 final. 
COM(2010) 477 final. 
http://ec.europa.eu/research/innovation-union/index_en.cfm 

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16 

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performance of micro-enterprises, and propose an integrated framework for the development 
and promotion of e-skills for innovation and competitiveness, with special attention to small 
enterprises, start-ups and gazelles.  

There  are  also  SMEs  which  follow  business  models  different  from  the  traditional  capital-
based  companies.  This  category,  known  as  the  “social  economy”,  includes  non  profit 
associations, foundations, co-operatives, mutual societies and similar legal forms. In order to 
respond  to  the  particular  needs  of  these  undertakings,  the  Commission  announced  in  the 
Single Market Act a number of actions that will provide a level playing field. These actions 
would  address  issues  related  to  cooperatives,  foundations  and  mutuals  on  the  one  hand  and 
enterprises pursuing social objectives on the other.   

The Commission will:  

•  create mentoring schemes for female entrepreneurs in at least 10 EU countries to provide 

advice and support with the start up, functioning and growth of their enterprises; 

•  identify  best  practices  to  support  business  transfers  and  launch  a  campaign  to  promote 

these practices; 

•  adopt,  by  the  end  of  2011,  a  Social  Business  Initiative  focusing  on  enterprises  pursuing 

social objectives.  

The Member States are invited to:  

•  implement the recommendation set out in the SBA Action Plan to reduce the start-up time 
for  new  enterprises  to  3  working  days  and  the  cost  to  €100  by  2012;  reduce  the  time 
needed  to  get  licences  and  permits  (including  environmental  permits)  to  take  up  and 
perform the specific activity of an enterprise to one month by the end of 2013; 

•  implement  the  recommendation  set  out  in  the  SBA  Action  Plan  to  promote  second 
chances for entrepreneurs by limiting the discharge time and debt settlement for an honest 
entrepreneur after bankruptcy to a maximum of three years by 2013;  

•  develop user-friendly and widely supported marketplaces and databases for transferrable 
businesses and provide training and support to increase the number of successful business 
transfers,  including  communication  campaigns  to raise  awareness  of  the  need  for  early 
preparation of business transfers. 

4. 

STRENTHENING THE GOVERNANCE OF THE SBA TO DELIVER TANGIBLE RESULTS 

Strong governance is the key to successful implementation of the SBA.  

To  assess  progress  the  Commission  will  collect  information  on  Member  States’  actions  and 
issue annual reports on the competitiveness of the EU Member States, based on article 173 of 
the Lisbon Treaty. The monitoring of Member States’  competitiveness policies will provide 
the basis for peer reviews and exchange of good practices. The Commission will report to the 
Council on progress in implementing the SBA. 

EN 

17 

   EN 

Stakeholders' involvement will be strengthened and SME stakeholders are invited to engage 
actively in the implementation of the SBA, including through provision of regular input on the 
implementation of the SBA actions. 

The Commission will:  

•  set up an SBA Advisory Group composed of representatives of governments and business 
organizations to contribute to evaluating and reporting on the uptake of the SBA, to step 
up  efforts  to  disseminate  widely  information  on  SME-policy  actions  and  to  promote  the 
exchange of good practices. In this context, it will further develop the SME Performance 
Review, focused notably on the measures in the SBA Action Plan, in order to monitor and 
assess Member States’ performance in implementing the SBA on the basis of a wide range 
of success indicators; 

•  propose  launching  an  annual  SME  Assembly  closely  linked  to  the  SBA  good  practices 
conference in order to mobilise all relevant stakeholders in the implementation of the SBA 
and to foster dialogue between them. 

Member States and, where relevant, regional and local authorities, are invited to:  

•  set up, in coordination with representatives of business organizations, national and local 
SBA  implementation  plans  backed  up  by  a  strong  monitoring  mechanism  as  well  as  a 
body  in  charge  of  coordinating  SME  issues  across  different  administrations  (“SME 
Envoy”), provided with adequate human resources and having a high standing within the 
administration itself. 

5. 

NEXT STEPS  

To ensure full implementation of the SBA and to respond to the current challenges SMEs are 
facing, the Commission is determined to continue to give priority to SMEs and to  take  into 
account  their  specific  characteristics  in  its  proposals  and  programmes.  Improving  the 
awareness  and  visibility  of  actions  with  national  and  regional  policy  makers  and  other 
stakeholders  will  be  instrumental  in  ensuring  that  the  SBA  is  implemented  close  to 
entrepreneurs. The SME Envoy will be mandated with the task of monitoring the progress of 
the  Member  States  in  the  implementation  of  the  SBA  and  will  regularly  inform  the  SME 
Assembly.  The  Member  States  are  invited  to  fully  implement  the  updated  SBA.  This 
invitation is equally relevant for the candidate countries and potential candidates.  

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ANNEX  

SBA Review 
Examples of some good practices implementing the 10 principles of the SBA 

Please  note  that  this  Annex  does  not  constitute  a  comprehensive  assessment  of  Member 
States’  policies  and  should  be  regarded  as  a  supplement  to  available  European  or  national 
publications on SME policies. 

Principle  1:  Promoting 
entrepreneurship 

Many  Member  States  have 
entrepreneurship 
programmes  to  foster  the  entrepreneurial  attitudes  and  skills  of 
young people and to make them aware of the possibility of starting 
a  business,  either  by  integrating  entrepreneurship  into  school  and 
university curricula or by setting up extra projects45.  

introduced 

In  some  countries  entrepreneurship  education  is  the  object  of  a 
coherent  national  strategy  (Denmark,  the  Netherlands,  Sweden 
and  the  UK),  while  other  countries  are  moving  in  the  same 
direction (Austria, Portugal). In Latvia, hundreds of students can 
submit  business  plans  annually  in  the  context  of  a  competition. 
The  Netherlands  established  a  programme 
for  young 
entrepreneurs to do networking in the USA.  

female  entrepreneurship 

Some countries are involved in national or European programmes 
encouraging 
(Cyprus,  Denmark, 
Greece,  Finland,  France,  Germany,  Iceland46,  Ireland,  Italy, 
Norway47,  Poland,  Slovakia  and  Sweden).  Several  Member 
States use considerable amounts provided by the Structural Funds 
for these programmes. 

Other good practice examples 48 

Austria:  A  “Succession  exchange”  (launched 
is 
facilitating  the  transfer  of  businesses.  Support  services  and  an 
electronic  platform  are  provided  for  matchmaking  entrepreneurs 
intending to transfer a firm and entrepreneurs looking to take over 
a firm. 

in  2008) 

France:  The  “Auto-entrepreneur”  statute  (2009)  allows  any 
citizen (unemployed, employed, officials, pensioners) to easily set 
up a business and benefit from a number of tax exemptions during 
the  3  first  years.  More  than  500.000  “auto-entrepreneurs”  have 
been created between January 2009 and June 2010. 

45 

46 

47 
48 

http://ec.europa.eu/enterprise/policies/industrial-competitiveness/industrial-
policy/files/member_states_competitiveness_performance_and_policies_en.pdf  
Iceland and Norway are among the non EU member States that implement the SBA and benefit from 
the Competitiveness and Innovation Programme. 
See footnote 2. 
http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/performance-review/index_en.htm (see 
SBA country fact sheets 2009, section 5 on Good Practice. 

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Principle 2: Second chance 

Romania: The “Start” programme aims to develop entrepreneurial 
skills among young people (18-35 years old) and supporting start-
ups.  (Budget:  EUR  21.2  million  in  2009,  including  EUR  19 
million for grants and 2.1 for financing the implementing agency).  

Sweden:  The  national  programme 
to  promote  women’s 
entrepreneurship  (2007-2010)  provides  support  services  and 
mentoring  to  start-ups  run  by  women.  A  national  network  of 
women ambassadors was set up and in 2009 inspired the creation 
of 
the  European  Network  of  Female  Entrepreneurship 
Ambassadors. 

Only five Member States (Belgium, Finland, Ireland, Spain and 
the  United  Kingdom)  comply  with  the  recommendation49  to 
complete all legal procedures to wind up a business in the case of 
non-fraudulent bankruptcy within a year. 

Other good practice examples 50 

Belgium: Law on the continuity of enterprises (2009), providing a 
moratorium for companies facing financial difficulties in order to 
prevent a situation of insolvency and pre-bankruptcy. 

Estonia:  The  Reorganisation  Act  adopted  in  2008  created  an 
alternative  to  bankruptcy  proceedings  that  enable  companies  to 
survive in case of temporary solvency problems. 

Latvia: a new Insolvency Law entered into force in 2010 making 
insolvency procedures simpler and faster, ensuring stabilisation of 
the  financial  sector  and  reducing  the  level  of  debt  in  the  private 
sector. 

Principle  3:  Think  Small 
First 

Only  a  few  Member  States  (Belgium,  Denmark,  Finland, 
Luxembourg,  Germany,  Poland,  Slovenia,  Sweden  and  the 
United Kingdom) have integrated an SME Test into their national 
decision making approach. 

The Netherlands is an interesting example of successful reduction 
of administrative burden; the Dutch model51 has been replicated in 
other countries. 

49 
50 

51 

http://ec.europa.eu/enterprise/policies/sme/files/docs/sba/sba_action_plan_en.pdf  
http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/performance-review/index_en.htm (see 
SBA country fact sheets 2009, section 5 on Good Practice). 
http://ec.europa.eu/enterprise/policies/better-regulation/administrative-burdens/action-
programme/index_en.htm#h2-5 & and 
http://english.minlnv.nl/portal/page?_pageid=116,4093799&_dad=portal&_schema=PORTAL 

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Other good practice examples  

Germany: 23 bureaucratic procedures were simplified in 2009, as 
part  of  the  Third  Act  on  reduction  of  bureaucratic  barriers  for 
SMEs52. 

Italy:  In  April  2010,  the  government  adopted  a  recommendation 
to  implement  the  SBA  in  Italy  and  set  up  a  permanent  working 
group  gathering  Ministries,  Chambers,  Business  Organisations, 
Regions  and  an  Italian  member  of  the  European  Economic  and 
Social Committee to monitor the implementation of the SBA and 
propose  initiatives  in  this  context.  An  annual  report  on  the 
implementation  of  the  SBA  is  drafted  and  published  on  the 
internet53. 

Good practice examples 54 

Czech Republic: "The Data box" (2009) aims at simplifying data 
transfer 
and 
and 
administrations. 

communication 

businesses 

between 

Principle  4:  Responsive 
administrations 

Hungary:  The  administration  provides  one-stop  shops  for 
registering  a  company  with  simplified  and  electronic  procedures 
(since  2008,  electronic  procedures  are  compulsory  and  the  time 
required to set up a business has been reduced to one hour). 

Portugal:  The  "Simplex"  programme  aims  at  simplifying 
administrative  processes,  procedures  and  practices.  Since  2009, 
public consultations are also made via a public blog. 

52 

53 

54 

http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/performance-review/index_en.htm (see 
SBA country fact sheets 2009, section 5 on Good Practice. 
http://www.sviluppoeconomico.gov.it/pdf_upload/documenti/Rapportosba2010DEF.pdf and 
http://www.sviluppoeconomico.gov.it/primopiano/dettaglio_primopiano.php?sezione=primopiano&tem
a_dir=tema2&id_primopiano=718 
http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/performance-review/index_en.htm (see 
SBA country fact sheets 2009, section 5 on Good Practice. 

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Principle  5:  Access 
public procurement 

to 

Only a few countries have started to promote the European Code 
of  Best  Practices  in  order  to  facilitate  SMEs’  access  to  public 
procurement  (Austria,  France,  Germany,  Ireland,  Poland, 
Portugal,  Sweden  and  the  United  Kingdom).  The  most 
widespread  SME  friendly  measures  remain  cutting  tenders  into 
lots  and  facilitating  access  to  information  through  centralised 
interactive  web  pages,  and  other  e-procurement 
websites, 
developments. 

Other good practice example 55 

United  Kingdom:  The  “Supply2.gov.uk”  government  web  portal 
advertises  public  sector  contracts  and  provides  access 
to 
government  opportunities.  In  2008,  the  Office  of  Government 
Commerce  published  12  recommendations  to  reduce  the  barriers 
SMEs face when competing for public sector contracts. 

Principle  6:  Access 
finance 

to 

Good practice examples56  

Most  Member  States  have  adopted  policy  measures  to  facilitate 
SMEs’  access  to  finance  through  public  support  to  guarantee 
schemes  (Belgium,  Cyprus,  Czech  Republic,  Estonia,  France, 
Germany,  Greece,  Hungary, 
Italy,  Latvia,  Lithuania, 
Netherlands,  Poland,  Portugal,  Romania,  Slovakia,  Slovenia, 
Spain  and  the  United  Kingdom)  or  microcredit  co-funding 
(Austria,  Germany,  Hungary,  Ireland,  Latvia,  Lithuania, 
Slovakia  and  Sweden).  Several  Member  States  have  also  taken 
measures  to  increase  riskcapital  (Czech  Republic,  Denmark, 
Germany,  Ireland,  Luxembourg,  Poland,  Slovakia,  Sweden 
and  the  United  Kingdom).  It  is  also  worth  mentioning  that 
Belgium,  Hungary,  France,  Ireland  and  more  recently  Finland 
have created a "credit ombudsman". 

A few Member States have taken action to tackle late payments, 
anticipating the recast of the late payments Directive and, in some 
cases,  going  beyond  its  scope  (Belgium,  France,  Germany, 
Portugal  and  the  United  Kingdom).  In  2010,  Spain  adopted  a 
new law  setting a 30-day  term for public payments and a 60-day 
term for business-to-business payments. 

55 

56 

http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/performance-review/index_en.htm (see 
SBA country fact sheets 2009, section 5 on Good Practice. 
http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/performance-review/index_en.htm (see 
SBA country fact sheets 2009, section 5 on Good Practice. 

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Principle 7: Single Market 

Principle  8:  Skills  and 
Innovation 

Principle 
Turning 
9: 
environmental  challenges 
into opportunities 

22  Member  States  have  set  up  operational  one-stop  shops 
(points of single contact)57. They allow service providers to deal 
with their administrative formalities electronically when they want 
to  do  business  across  Europe.  15  of  them  provide  a  website  in 
English  in  addition  to  their  national  language(s)  (Belgium, 
Cyprus,  Czech  Republic,  Denmark,  Estonia,  Finland, 
Germany, Greece, Hungary, Italy, Lithuania, the Netherlands, 
Portugal, Spain and Sweden). 

Several  Member  States  provide  funding  to  young  innovative 
companies  through  notably  seed  capital  and  venture  capital 
(Austria,  Belgium,  Czech  Republic,  Finland,  Germany, 
Greece,  Hungary,  Spain,  Sweden  and  the  United  Kingdom). 
innovation  centres  or 
Others  provide  financial  support 
competitiveness  poles  linking  Universities,  research  centres  and 
businesses  (Austria,  Belgium,  Czech  Republic,  Germany, 
France,  Ireland,  Italy  and  the  United  Kingdom).  “Innovation 
vouchers”,  allowing  SMEs  to  buy  innovative  consulting  services 
and  know-how,  have  become  widespread  (Austria,  Greece, 
Ireland,  the  Netherland,  Portugal,  Slovenia  and  the  United 
Kingdom) 58. 

to 

Other good practice example 

Italy: In order to encourage the networking of innovative SMEs, a 
law was adopted in July 2010 regulating companies’ networks and 
providing those networks with fiscal, administrative and financial 
incentives59.  

In order to help SMEs upgrade or replace equipment with energy 
efficient  alternatives,  several  Member  States  provide  energy 
efficiency  funding  through  favourable  loan  conditions  or  direct 
subsidies (Belgium, Bulgaria, Cyprus, France, Germany Malta, 
Portugal,  Slovenia  and  the  United  Kingdom).  Some  also 
support SMEs developing business opportunities on green markets 
(Bulgaria,  Czech  Republic,  Germany  and  Slovakia).  Member 
States  also  provide  consulting  services  for  SMEs  to  inform  them 
and raise awareness of energy efficiency cost-saving and business 
opportunities (Austria, Belgium, Bulgaria, Germany, Hungary, 
Spain, Sweden and the United Kingdom).60 

57 
58 
59 
60 

http://ec.europa.eu/internal_market/eu-go/  
"SMEs, Entrepreneurship and Innovation" OECD Studies on SMEs and Entrepreneurship, 2010 
http://www.urp.it/allegati/Legge_2010_122.pdf (Article 42). 
http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/performance-review/index_en.htm (see 
SBA country fact sheets 2009, section 5 on Good Practice. 

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Other good practice examples 61 

Denmark:  Through  the  Business  Innovation  Fund  (EUR  100 
million  for  2010-2012)  created  in  2009,  the  Danish  Ministry  of 
Economic and Business Affairs supports business opportunities in 
green markets.  

The Netherlands: The Foundation for Knowledge and Innovation 
in  Energy  and  Environmental  Technology  (set  up  in  2008)  is  a 
network of 160 companies, knowledge institutes and regional and 
local  governments,  co-financing  projects  delivering  eco-products 
and technologies (e.g. smart solar applications, smart grids, etc.). 

the  Netherlands,  Poland,  Portugal, 

Several governments support the internationalisation of SMEs, e.g. 
by financial support for export promotion, market access strategies 
and  participation  in  trade  fairs  (Cyprus,  Czech  Republic, 
Denmark,  Estonia,  France,  Ireland,  Italy,  Latvia,  Lithuania, 
Malta, 
the  Slovak 
Republic,  Spain,  Sweden  and  the  United  Kingdom)  Some  of 
them  (Denmark,  Slovenia)  focus  on  high-growth  companies 
willing  to  internationalise;  some  others  have  established  new 
export  promotion  agencies  (Luxembourg)  or  new  support 
programmes  (Hungary).  A  mentoring  scheme  whereby  big 
companies support the internationalisation of SMEs, is also being 
piloted (France)62. 

Principle  10:  Support  to 
internationalisation 

61 

62 

Source:  SBA:  Database  of  good  practices  http://ec.europa.eu/enterprise/policies/sme/best-
practices/database/SBA/index.cfm?fuseaction=welcome.detail 
http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/performance-review/index_en.htm (see 
SBA country fact sheets 2009, section 5 on Good Practice. 

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