Brussels, 08/10/2007 (Agence Europe) - It is easier and cheaper to set up a company in the EU than it was five years ago: the administrative procedures to register a company was reduced from 24 days in 2002 to about 12 days today; the cost has fallen to € 554 in 2007 compared to € 813 in 2002. this is the most incisive result of the European Commission's mid-term review on 2005 SME policy EUROPE 9032 and 9067). Published on 4 October, the communication, “Small and medium-sized enterprises - Key for delivering more growth and jobs. A mid-term review of Modern SME Policy” examines progress achieved since 2005 in five main areas of the Commission's SME policy: cutting red tape, improving access to markets, promoting entrepreneurship and skills, improving growth potential and strengthening dialogue with stakeholders.
Noting that over the past two years, SMEs have been the main driver of employment growth in the EU, in particular in sectors like construction, transport, communication or tourism, the Commission also illustrates other positive results in the strategy. It welcomes the fact that entrepreneurship education is increasingly part of school curricula, and that there is a growing awareness of entrepreneurship and SME issues. It points out that the coordinated European reform agenda put in place under the renewed Lisbon Partnership for Growth and Jobs has encouraged an increasing number of Member States to integrate the interests of SMEs into their policy-making processes. The Commission has supported this process by collecting and publishing more than 250 good practices from the Member States, e.g. in the areas of improving on-line access, taxation and better regulation.
The Commission has also increased the SME focus within major EU spending programmes for the period 2007-2013. A significant share of the Structural Funds will be spent to support the creation and growth of SMEs, notably to improve their innovative capacity, their investment in RTD and skills. Also more than €1 billion has been earmarked for financial instruments within the Competitiveness and Innovation Framework Programme (CIP).
The Commission also finds the first results of the implementation of the “Think Small First” principle encouraging and has proposed the first ten fast-track actions in areas such as company law and employment relations to further reduce administrative burden and to save up to €1.3 billion in administrative costs.
“Second Chance policy” for non-fraudulent bankruptcies
On 5 October the Commission also adopted a communication on the stigmatisation of business failures, in which it proposes measures to prevent business closures and encourage new chances for non-fraudulent business closures (95% of closures). Its aim: to get EU Member States to engage more vigorously in reducing the stigma of business failure and putting in place a "second chance policy". To back up this aid, the Commission is also launching a website on “second chance” containing: testimonials of real restarters; a self-assessment tool for entrepreneurs in the danger zone; national contact points to find advice; communication material (leaflets, posters- and info clips) facts, figures and quotes; summaries of insolvency law.
More than half of young Europeans keen to start their own business
According to the latest Flash Eurobarometer on entrepreneurial mindset, backs up the Commission's general satisfaction. According to results published on Monday 8 October, over half of the EU's young people find it desirable to become entrepreneurs within the next five years. 42 % of young people consider it feasible to really establish a company. Education plays a crucial role in this respect: 44% of the 15-24 years old say that their school education made them interested to become an entrepreneur. Eurobarometer also reveals that citizens' attitudes in the new Members States (NMS) is more entrepreneurial than in EU-15: 40% of all respondents and 62% of young people in the Member States which joined the EU in 2004 (NMS10) are keen to become self-employed, compared with 28% and 48 % in the EU-15. Young people in new member states are even more entrepreneurial than their fellows in the US (15-24 age group in US: 57 %). However the survey points out that the main problem is that Europeans fear business failure, to go bankrupt, to have no income and to loose everything. They are less risk oriented than the Americans. Framework conditions do also matter: more than 70 % of Europeans see financial support and complex administrative procedures as a problem. (eh)