Small Business Act for Europe

The Small Business Act for Europe (SBA) is an act designed to assist small businesses.[1]

Background

In June 2008, the European Commission adopted a communiqué titled "Small Business Act" for Europe to the European Council, European Parliament, European Economic and Social Committee, and the Committee of the Regions. Its aim was to provide an SME policy framework to improve competitiveness and promote entrepreneurship. Rather than being a legislative Act, it contains provisions applying to small firms, directed at governments and institutions to "think small first" when establishing policy and law.

Content

The SBA invites the Commission and Member States to adopt:

  • ten principles to guide policy-making
  • legislative proposals guided by the "think small first" principle: the General Block Exemption Regulation on State Aids; Regulation providing for a Statute for a European Private Company; Directive on reduced VAT rates
  • policy measures that implement the ten principles at the Community and Member State levels.[2]

The SBA applies to independent companies with fewer than 250 employees (99% of EU businesses)[3]. It provides an "SME test" to ensure SMEs are taken into account at an early stage of the policy-making process. As such, all new administrative or legislative proposals are to be subjected to an SME impact review. Countries including Belgium, Finland, Denmark, and Germany have added this test into their national decision-making processes. The Act also carries a provision to appoint SME envoys, the role of which is to liaise between the EC and SMEs. The SBA promotes the Erasmus for Young Entrepreneurs program (participants spend up to six months working in a different country's SME), and creates Market Access Teams in select export markets, particularly China and India.[4]

References
  1. Desquitado, Tara. "5 Ways Europe Prioritizes SMEs, The 'Backbone' of its Economy". The Sociable. Retrieved 8 January 2018.
  2. Bruno Dallago; Chiara Guglielmetti; Michele Rondinelli. 2012. The Consequences of the International Crisis for European SMEs: Vulnerability and Resilience. Routledge. pp. 95–96. ISBN 978-0-415-68085-1.
  3. Laura Gavinelli, 2016. Business Strategies and Competitiveness in Times of Crisis: A Survey on Italian SMEs. Springer. p. 229. ISBN 978-1-137-57810-5.
  4. Small and Medium-Sized Enterprises: U.S. and EU Export Activities, and Barriers and Opportunities Experienced by U.S. Firms, Inv. 332-509. DIANE Publishing. pp. 2–3. ISBN 978-1-4578-1598-0.


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