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The European Small Business Act was formally agreed by Member States on the 1st December 2008. At a meeting in Brussels, Member States adopted the Act and an Action Plan which gives added impetus to delivering priorities in the context of the economic downturn.
The Small Business Act covers a wide range of policy areas to improve the environment for Europe’s small businesses. It is based around ten principles and a number of underlying measures at the EU and national level.
On 1 December, Member States committed to implement the Small Business Act and to take action in three priority areas:
The Act highlights the importance of European Investment Bank funding for SME lending; improving cross-border venture capital; simplifying access to EU funding programmes; improving prompt payment and helping SMEs to become ‘investment ready.’
The Act includes measures to strengthen the Single Market for SMEs, for example through greater use of market and sector monitoring; reinforcing the SOLVIT system; introducing a European Private Company Statute and improving access to public procurement opportunities.
The Act stresses the importance of reducing administrative burdens and includes a Commission commitment to include an SME test in Impact Assessments; to use Common Commencement Dates and ‘special measures’ such as transition periods, derogations and exemptions for small and micro firms. Member States are invited to take similar steps.
A variety of other measures are presented in the fields of innovation, skills, education, entrepreneurship and meeting environmental challenges.
Full text of the Commission’s SBA communication
Full text of the Council Conclusions, including the Action Plan, agreed at the meeting on 1 December
The Small Business Act was further endorsed by European Heads of State of the 27 European Member States at a meeting held on 11th and 12th December 2008.
The UK supports the Small Business Act and the Action Plan and supports measures to deliver in the three priority areas of access to finance, better regulation and access to markets. Business Minister Shriti Vadera said:
The Small Business Act allows member states to put small businesses at the heart of the EU's economic policies. It could reduce administrative burdens, enhance access to finance and provide better access to global markets - all of the things the UK has been calling for. In the current economic downturn it is more important than ever that we focus on supporting small and medium-sized businesses which are the lifeblood of the economy.
It is now vital that the Commission and Member States take action to implement the Act. The Commission and Member States will report annually on progress in implementing the measures.
In October 2007, the Commission first announced its intention to draft a Small Business Act within the context of its Communication document on Small and medium-sized enterprises – Key for delivering more growth and jobs - A mid-term review of Modern SME policy
. Within this document, the Commission acknowledged the need for a Small Business Act to give a new dimension to the drive for growth and jobs in Europe.
An open consultation on the proposal was launched by the Commission in January 2008 and Member States, business organisations and individuals were invited to submit their views via an on-line survey. The UK submitted a formal written response to the Commission on 4 April 2008. The UK position was informed by consultation across government departments and with small business organisations in the UK. Following the consultation period the Commission published its proposals on 25 June 2008 as a Commission Communication document entitled
Think Small First – A Small Business Act for Europe
