Turning Europe into an SME superpower: Business proposes a clear path forward

BusinessEurope’s SME Roadshow in Berlin featured keynote speeches from Roberta Metsola, European Parliament President, and Michael Kellner, German Parliamentary State Secretary and Commissioner for SMEs

Brussels/Berlin, 15 October 2024 - BusinessEurope hosted the fourth event in its SME Roadshow series today in Berlin, Germany, organised together with the Confederation of German Employers’ Associations (BDA) and supported by the Federation of German Industries (BDI).

Europe is home to over 25 million SMEs, which represent 99% of all businesses and provide jobs for more than 88 million European citizens. However, SMEs have faced an increasing number of challenges in recent years, including persistent labour shortages and rising energy and credit costs. These difficulties have been compounded by a wave of new regulations.

Against this backdrop, today's discussion focused on the actions EU policymakers must take over the next five years, particularly given that the competitiveness of SMEs has been identified as a top priority by European Commission President Ursula von der Leyen.

Fabrice Le Saché, Chair of BusinessEurope’s Entrepreneurship & SME Committee, said: "Today in Berlin, BusinessEurope publishes a roadmap to transform Europe into an SME superpower. This is about ensuring better regulation that genuinely supports SMEs, creating streamlined access to finance, and making sure the green transition empowers SMEs rather than overwhelming them. The EU must also take a more active role in SME governance.

Regarding the revision of the Late Payment Directive, we emphasise that while fostering a culture of prompt payment is crucial, it is equally important to preserve freedom of contract in all B2B relations. We call on Member States and the European Parliament to maintain this flexibility in the upcoming negotiations. If this cannot be achieved, withdrawal of the proposal should be considered."

Steffen Kampeter, CEO of BDA, remarked: “The EU legal framework needs to be more manageable for SMEs. A lack of competitiveness often stems from an overly complex regulatory environment. As we face the challenges of a second consecutive year of recession in Germany, it is crucial that we focus on revitalising our economy. Now, more than ever, we need an environment that encourages SMEs and entrepreneurship. Hosting the SME Roadshow in collaboration with BusinessEurope here in Berlin is particularly timely, as small and medium-sized enterprises are the backbone of our workforce, employing 55% of the population and accounting for 99.3% of all German businesses.”

Please read BusinessEurope’s recommendations on “How to turn Europe into an SME superpower during the next EU cycle” here.