Small and medium-sized enterprises (SMEs) are the backbone of Europe’s economy. They represent 99% of all businesses in the EU. In the past five years, they have created around 85% of new jobs and provided two-thirds of the total private sector employment in the EU. The European Commission considers SMEs and entrepreneurship as key to ensuring economic growth, innovation, job creation, and social integration in the EU.
What the EU does for SMEs?
- Creates a business friendly environment
At the centre of the Commission’s action is the Small Business Act for Europe (SBA) that provides a comprehensive SME policy for the EU and EU countries. The SBA promotes the “Think Small First” principle and promotes entrepreneurial spirit among European citizens.
- Promotes entrepreneurship
The Commission promotes entrepreneurship through the Entrepreneurship Action Plan, supports entrepreneurship education, and provides support tools for aspiring entrepreneurs.
- Improves access to new markets and internationalisation
The Commission’s priority is to ensure that enterprises can rely on a business friendly environment and make the most out of cross border activities, both within the EU Single Market and outside the EU.
- Facilitates access to finance
Access to finance is the most pressing issue for many small enterprises. The Commission works on improving the financing environment for SMEs and provides information on funding. The Late Payment Directive strengthens businesses’ rights to prompt payment.
- Supports SME Competitiveness and Innovation
Promoting competitiveness and innovation are key aspects of EU policy in relation to industry and enterprise, in particular for SMEs.
- Provides key support networksand information for SMEs
– the Your Europe Business Portal is a practical guide to doing business in Europe. It provides entrepreneurs with information and interactive services that help them expand their business abroad;
– the Enterprise Europe Network helps SMEs and entrepreneurs access market information, overcome legal obstacles, and find potential business partners across Europe;
– the SME Internationalisation Portal provides information on foreign markets and helps European business internationalise their activities;
– the single portal on Access to Finance helps SMEs find finance supported by the EU.
Source: European Commission