Importance of SMEs for the european economy

The Europe 2020 strategy recognises entrepreneurship and self-employment as key for achieving smart, sustainable and inclusive growth. There are 23 million SMESs (small and medium enterprises) in EU which represents 99% of total business. They are a key for economic growth, innovation, employment and social integration.

The European Commission made a study about the importance of SMEs in creating more jobs. What they found out was that 85% of net new jobs in the EU between 2002 and 2010 were created by SMEs. During this period, net employment in the EU’s business economy rose substantially, by an average of 1.1 million new jobs each year. The study also showed that young firms (younger than five years) are responsible for a majority of the new jobs. This is why the European union aims to promote successful enterpreneurship and improve the business enviroment for SMEs, to allow them to realise their full potentian in todays global economy

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So what do the EU do to promote successful enterpreneurship for SMEs?

The European Commission works on broad policy issues affecting entrepreneurship and SMEs across Europe, and assists SMEs through networks and business support measures. It helps existing and potential entrepreneurs to grow their businesses, giving special attention to women entrepreneurs, crafts and social economy enterprises.

The Small Business Act for Eurpe (SBA) embodies the EU’s commitment to SMEs and entrepreneurship. Member States have committed to implementing the SBA alongside the European Commission in an effort to make the EU a better place to do business.

Since SMEs have to be supported at local level, the Commission helps Member States and the regions to develop policies aimed at promoting entepreneurshio, assisting SMEs at all stages of development, and helping them to access to global markets The identification and exchange of good practices are key elements of this policy.

The European small Business Portal gathers together all the SME-related information provided by the EU, ranging from practical advice to policy issues, from local contact points to networking links.

 

So small and medium enterprises are very important for the European ekonomy, the EU have realized this and are making many attempts to promote these businesses. Still people in my home country, Sweden, think that it is very hard and riskfull to start or run their own business and they feel that they are not getting enough support from the state. How are the possibilities of starting up a company in your home country?

 

Sources:

http://ec.europa.eu/enterprise/policies/sme/index_en.htm

http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/performance-review/index_en.htm

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2 thoughts on “Importance of SMEs for the european economy

  1. In Germany it is easy to found a company, but regarding the time of the procedures (15 days), it is under the OECD-average (12 days). The main reason are the high bureaucracy and the statutory requirements. Especially the publishing of the articles of association with the local commercial registers takes some time (7 days). In an international comparison of “Doing Business” Germany lies 19th.
    On the page linked below you can see the whole ranking:
    http://www.doingbusiness.org/rankings

    Reply

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