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How will Croatian SMEs benefit from the EU Accession

How will Croatian SMEs benefit from the EU Accession. Zagreb, 6. Oct 2011 Christian Weinberger Entrepreneurship and SME Policy Adviser. SBA. Role of the European Commission. Economic Policy is Member States domain Catalyst: SME Policy initiatives Best Projects - Good Practice exchange

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How will Croatian SMEs benefit from the EU Accession

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  1. How will Croatian SMEs benefit from the EU Accession Zagreb, 6. Oct 2011 Christian Weinberger Entrepreneurship and SME Policy Adviser

  2. SBA Role of the European Commission • Economic Policy is Member States domain • Catalyst: • SME Policy initiatives • Best Projects - Good Practice exchange • SME Performance Review • Supporting: • EEN Network • Financial Instruments • Own Policies: • Ensure all EU policies / programmes are SME friendly (better regulation)

  3. 58% of total business turnover = €14.000 billion SMEs - EU’s growth engine

  4. SMEs provide employment

  5. What is the SBA? • A set of politically binding principles • A package of concrete measures (legislative and non-legislative) • An implementation mechanism embedded in the EU 2020 strategy in order to • Improve the overall policy approach to entrepreneurship • Irreversibly anchor the “Think Small First” principle in policy-making • Promote SMEs’ growth by helping them tackle the remaining problems

  6. 10 politically binding principles • Create an environment for entrepreneurs and family businesses to thrive and entrepreneurship to be rewarded • Ensure that honest entrepreneurs who have faced bankruptcy quickly get a second Chance • Design rules according to the “Think Small First” principle • Make public administrations responsive to SMEs’ needs • Facilitate SMEs’ participation in Public Procurement and better use State Aid possibilities for SMEs

  7. 10 politically binding principles (ctd.) • Facilitate SMEs’ access to finance and support timely payments in commercial transactions • Help SMEs to benefit more from the opportunities offered by the Single Market • Promote the upgrading of skills in SMEs and all forms of innovation • Enable SMEs to turn environmental challenges into opportunities • Encourage and support SMEs to benefit from the growth of markets

  8. Recent Best Projects • Promotion of Entrepreneurship in the Media • Supporting the Internationalisation of SMEs • Models how to reduce the overproportional regulatory burden for SMEs • Simplification of Tax compliance procedures • Mini-companies in secondary Education • Effects of Tax Systems on the retention of earnings • Transfer of Business Market Places • Reducing the Stigma of Business Failure

  9. European Enterprise Awards • Awards for public authorities that promote entrepreneurship and SMEs • Five categories: • Entrepreneurship promotion • Red tape reduction • Enterprise development • Investment in skills • Responsible and inclusive entrepreneurship • Two selection stages: national and European • Winning practices available in print and on line • Next winners to be announced in May 2009 (closing European SME Week)

  10. SBA Fact sheets

  11. Registering a new business • Columns : • One stop shop • Time required • Costs

  12. Enhanced business information Multilingual For companies doing buisiness in another country Constant update Giving Practical information Access to national on-line servies Cooperation between European Commission (ENTR-DIGIT) Member States authorities Start of new Service : 4Q2008 Your Europe - Business theoretical information access to national information practical information: programmes/instruments practical information: assistance reference to legislation

  13. EU Network offering high quality services to the benefit of SMEs Organizing business cooperation across boarders Help accessing EU projects and funding Advising on EU legislation, standards and intellectual property rights Assist SMEs in raising their innovative capacities Support to going international Collecting SME feedback to legislative initiatives  The broadest range of tailored services for SMEs in the EU and beyond more than 500 regional organisations almost 6.000 experienced professionals active in 40 European countries EEN - Enterprise Europe Network

  14. CIP: Financial Instruments

  15. Framework Programme for Research and Development 2007 - 2013 • 9 themes such as food, agriculture and biotechnology, life science, IT, security • Budget EUR 58 bil. • 15% for SMEs (6 bil.) • Specific measures for SMEs • Level of co-financing increased --) 75% • Simplification measures • Participant Guarantee Fund (PGF)

  16. Structural funds 2007 - 2013 • 350 billion Euro for the 2007-2013 period • Structural funds • Cohesion fund • Rural development fund and Fisheries fund • Decentralised management of programmes • From 50% to 85 % co-financing, e.g.: • tourism, environment, • training, entrepreneurship support, • financing schemes, incubators • individual business investments

  17. European Commission in cooperation with a European level Support Office (SO) and intermediary organisations (IOs) at national / regional level coordination support matching Practical induction Experienced host entrepreneur established in another EU country New entrepreneur going abroad to learn from an experienced entrepreneur 1 – 6 months stay abroad Learning on the job, exchange of experience, market access, networking, intercultural learning Erasmus for Young Entrepreneurs 18

  18. Benefits of accession to the EU Some examples: • In Poland, access to finance has increased exponentially via the structural funds: most beneficiaries were/are SMEs. Under the Polish National Cohesion Strategy since 2007 until 2nd October 2011, 60.576 contracts for co-financing were signed with beneficiaries, for the amount of PLN 268.5 billion (64.583.964.144 EUR) The amount of co-funding from the EU was PLN 186 billion, which constitutes 68.6 percent of allocation for the 2007-2013 period.

  19. Benefits of accession to the EU • In Slovenia, SMEs benefited from new financial instruments backed by EU funding: guarantees from MAP and CIP programme, as well as the recent fund stimulating development of venture capital market with cofinancing from Jeremie (Structural funds). • Also, the European Commission's initiative about "one-stop-shops" and reduced cost for setting up business led to outstanding results: businesses can be now established via online one-stop-shop in 1 day and with no costs.

  20. Benefits of accession to the EU • Also in Bulgaria, improved access to finance is a positive effect of accession to the EU. • For instance JOBS MFI, a newly established non-bank financial institution in Bulgaria, has received a senior loan of € 3 million under the EU Progress Microfinance initiative. It allows to grant microleases and microloans to microenterprises including sole traders, job seekers and unemployed people wishing to create their own microenterprise, and disadvantaged groups on the labour market.

  21. Benefits of accession to the EU • In Estonia, the EU has a strong positive effect on the development process. GDP growth has accelerated after the accession in 2004, so did also the trade volumes for both exports and imports. • One of the most important resources for change is investments from EU structural funds. During the years 2004-2006, 798.8 million EUR of EU structural funds and Cohesion Fund finances were allocated to Estonia • Estonia reduced the administrative burdens for business creations in line with the Commission's targets. (Today you can register your company in Estonia online within two hours!) • SMEs gained access to the Internal Market, but in many sectors they also faced more competition from their Western European 'counterparts'. Many Estonian smaller SMEs were not ready; that imposed higher market standards for them.

  22. Benefits of accession to the EU Summary • Competition is more global and hence, more fierce. • Opportunities and rewards are also greater • A very broad range of support is available from the EU • Policy support • Individual support • Financial support  Take the initiative NOW

  23. Info & Contacts • European Small Business Portalhttp://ec.europa.eu/small-business/index_en.htm • SBAhttp://ec.europa.eu/enterprise/entrepreneurship/sba_en.htm • European SME Week 2011 http://ec.europa.eu/sme-week • Enterprise Europe Networkhttp://www.enterprise-europe-network.ec.europa.eu/index_en.htm • Entrepreneurshiphttp://ec.europa.eu/enterprise/policies/sme/promoting-entrepreneurship/index_en.htm • Erasmus for Young Entrepreneurs http://www.erasmus-entrepreneurs.eu/ • The European Network of Female Entrepreneurship Ambassadors http://ec.europa.eu/enterprise/policies/sme/promoting-entrepreneurship/women/ambassadors/index_en.htm • Directorate-General for Enterprise and Industryhttp://ec.europa.eu/enterprise/index_en.htm Entr-sme-envoy@ec.europa.eu Fax : +32.2.29.94143

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