2010 6 Jan

EU Small businesses comprise all types of corporations starting from one-person companies to co-operatives. Whilst some Small businesses offer more or less traditional services or expertise products, many others are fast growing high-tech businesses. Despite their variations, though, Europe’s Small businesses share many challenges.

European Commission, Report on the results of the former session on a Small Business Act for Europe, in Spring 2008.

The facts show the amount of replies regarding the following problems:
Administrative and regulatory burden: a hundred and forty replies,
Access to finance: ninety eight replies,
Taxation: 61 replies,
Lack of skills: 43 replies,
Access to public procurements: 41 replies,
Unfair/too sturdy competition: twenty two replies,
Labour law: twenty two replies,
Access to Single Market: 17 replies,
Access to EU programmes: 16 replies,
Late payments: 16 replies,
Access to international markets: 16 replies. If you are in this particular case, you need Website translation.
Access to data and recommendation: sixteen replies,
Instability world economy/energy prices: 16 replies,
SME definition: 7 replies.

Making life easier for small business.
For most small and medium-sized companies, the executive inconvenience is their key problem. The cost of administrative procedures for a small business can be up to 10 times more than for a larger one making this inconvenience excessively grave for small business. This is often why the EU Commission has set itself 2 key targets:

First target is to scale back the executive load on entrepreneurs by twenty five% before 2012 and to make sure that all new legislation affecting business is SME-friendly. To attain this objective, the Commission is simplifying and improving European regulations, and encouraging state and regional authorities to try to to the same at their levels.


Less and higher regulation.
The EU Commission’s 2007 action programme to cut back administrative inconvenience by 25% has identified priority areas for action that focus on data obligations in areas like company law, employment relations, VAT and statistics. Some of these obligations have already been voided.

For example:
- European corporations now not need to announce business data within the national gazettes and they’ll (re-)use translations certified in one Member State when developing branches in other EU Member States.
- Member States ought to be allowed the option to exempt micro-enterprises from providing detailed knowledge in their annual accounts.

A 25% reduction in the executive load on companies would rework into a rise of 1.5% within the EU’s GDP – amounting to about €one hundred fifty billion. But, this can only be achieved by national, regional and local authorities acting along with the Commission. Thus far eighteen Member States have set national targets for reducing administrative loads.

Did you know?
Since 2005, the European Commission has:
A – Withdrawn seventy eight pending laws,
B – Simplified 54 initiatives,
C – Identified 2 five hundred obsolete acts to be repealed.

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2009 30 Dec

According to the EU Commission Vice-President, accountable for Company and Business, the EU is initiating an ambitious programme for the cutback of administrative problem and requires some help if they’re to succeed. Assistance from companies, stakeholders and EU Member States. The EU endeavours to speak to business managers, and, even more importantly, consider their ideas.

The European Commission is ready to make sure that new legislation does not add to the difficulty of small companies, but takes their wants into account. To try and do this the Commission has adopted the next principles:

1 – All new proposals with a sway on business should be subject to thorough examination with regard to their potential impact on SMEs.
2 – EU rules may set apart between micro, small, medium-sized and large corporations so as to confirm that the obligation created is proportionate to the various sorts of companies.
3 – Specific support measures, reduced fees, or perhaps exemptions can be applied to protect Small entreprises and ensure a level playing scope for all companies.

For instance:
The Commission has simplified the regulations concerning Small entreprises in the pharmaceutical sector by reducing fees for micro-enterprises, allowing to reschedule fees payment, providing administrative and regulatory help when submitting applications for the European Medicines Agency.

Among the European Commission, the Small company Envoy acts as a dedicated ambassador for sme and maintains active dialogue with SME stakeholders to ensure that the interests of small entrepreneurs are properly addressed in new regulations. The Small company Diplomat has been also active in proposing solutions for the barriers hindering SMEs.


Protecting Small businesses from late payments
Late payments is a real issue for business. Twenty-five % of all insolvencies represent late payments and European Small businesses are notably helpless in front of this key subject. To address this situation, the Commission has charged itself to review its 2000 Directive in order to simplify it and clarify issues like interest payments. This could dissuade late payers and guarantee that SMEs are paid within a reasonable time for all business transactions.

Make standardisation operate for SMEs
It is important that Small businesses are aware of European and international standards. And they need to incorporate them into their product specifications thus their services are competitive on international markets. To ensure that SME needs are taken into account when drafting standards, the Commission can double its monetary support for the promotion of SMEs’ interests.
In addition, it’s suggested that standards bodies reduce the cost of access to standards for Small entreprises. Measures are also planned to guide and support SMEs through the standardisation process.

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