How to turn Europe into an SME superpower during the next EU cycle - a BusinessEurope position paper
During the next cycle, 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.
What do SMEs need to be more competitive?
- better regulation which truly support SMEs,
- better and faster access to finance,
- greater clarity around SME funding programmes allocation, including unbureaucratic access,
- a green transition that does not overwhelm but boosts SMEs, along with strong support for the skills needed for the twin transition; and,
- stronger EU SME governance.
A deeper Single Market in which barriers for businesses are addressed and quickly removed is also crucial, as well as a trade policy which takes into consideration the needs of export-oriented SMEs and an industrial policy in which SMEs play a central role.
On the green and digital transitions in particular, the EU needs to turn its attention to making it work and prove that its ambitions can lead to economic success after five years focusing on regulating these two crucial transitions.
European companies are committed to playing a central role in the necessary transitions. But in order to facilitate the green and digital transition for SMEs, breathing space for entrepreneurial solutions, guidance and support tools are needed. SMEs need time to understand, absorb and implement existing regulations – and should be shielded from accumulative new regulatory, financial and ESG burdens.
In the years to come, it will be essential for the competitiveness and wealth of Europe to truly support entrepreneurship. This should be done by ensuring that SMEs are equipped with the right skills needed. Allowing smooth and effective generational transfer of businesses is also relevant for the competitiveness and wealth of Europe. To ensure this, promoting the skills needed for smooth transfers of employer companies’ ownership at an EU-level is critical.
In our “Reboot Europe” publication, BusinessEurope launched its campaign for policy changes during the next EU political cycle, calling for a REBOOT in European policies, building on EU achievements, with targeted actions to tackle the structural weaknesses that are undermining companies’ efforts to deliver for people.
Building on this, to make the EU an “SME superpower”, we need the following actions to be prioritised during the next EU political cycle.
Read our Press Release here.