SMEs and entrepreneurship
Small and medium-sized enterprises (SMEs) are a powerful economic engine for Europe. Over 2002-2010, SMEs created 80% of the new jobs in the EU. But the economic crisis has weakened this contribution in many countries. Over 2008-2013, the evolution of employment in SMEs scored from -27% to +19% in the various EU countries. It is therefore vital to improve the business environment for SMEs everywhere in Europe.
This is very much a task for national governments, but the EU has also a critical role to play by implementing a horizontal pro-SME EU action agenda, and by ensuring that SMEs can reap the benefits of the EU flagship initiatives.
While entrepreneurship is often understood as relating to creation of new companies, it is in fact a mindset which is needed to start a new company or to keep an existing company on a dynamic growth path. According to Eurostat enquiries, entrepreneurship is currently weakening in Europe in comparison with other parts of the world. EU regulations need therefore to be well designed, in a way that fosters – and not erodes - the entrepreneurial ambitions of citizens.
Key message
We want Europe to become an “SME superpower”. SMEs are deeply rooted in European regions and societies. Many are important players in competitive value and supply chains and networks. They are undeniably a fundamental part of European DNA and their contribution to the economy, wellbeing and innovation of our continent is unquestionable.
The resilience of entrepreneurs in recent years has proven once again that they are part of the solution. They want to be part of an “SME superpower” project, but to do so, they need the right support from institutions at both national and European level.
The starting point for SMEs as well as for mid-caps and large corporates is that in the next EU cycle the EU puts competitiveness and the resilience of companies at the core of the political agenda.
Facts and figures
SMEs are critical for the European economy:
- 99 out of every 100 businesses are SMEs
- 2 in every 3 employees work in SMEs
- 58 cents in every euro of value added is generated by SMEs.
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