Small is beautiful

EU policymakers are struggling to turn rhetoric about small companies into action, writes Lorraine Mallinder.

In this era of big global markets, EU politicians find it hard to think small. EU business legislation, largely focused on the major challenges facing the EU economy in a joined-up world, rarely makes direct attempts to address the concerns of small- and medium-sized enterprises (SMEs).

Fighting for their place in a maze of EU regulation, SMEs, the employers of an estimated 75 million people throughout Europe, are feeling a little frustrated. Although politicians often seize on their flagging cause to voice well-intentioned words of support, brave decisions in their favour are sadly lacking.

Bar a few funding initiatives, there is little specifically tailored for Europe’s SMEs. Cross-cutting projects such as the European Commission’s better regulation agenda, which aims to slash the administrative burden for EU business generally by 25%, will certainly be welcomed by SMEs. But more help is needed.

In a wish list unveiled at SME Day 2007 on Tuesday (5 June), small businesses made a number of demands. The Commission is urged, among other things, to cut more red tape, to unblock fiscal obstacles to cross-border movement of venture capital, to pour more money into seed financing and to introduce a tax credit scheme for knowledge transfer activities.

The German government, in its list of priorities issued at the beginning of its presidency, pledged to further the SME agenda as part of its work on industrial competitiveness. Although the issue has been given some attention, for example at a conference on SME-friendly measures held this week in Berlin (4-5 June), the presidency has failed to meet expectations.

EU policymakers are struggling to turn rhetoric about small companies into action, writes Lorraine Mallinder.