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Cohesion policy and support for SMEs
12.07.2008, 16:31
Commisionner Danuta Hübner gave a support for small business in the context of the cohesion policy. She explained that a cohesion policy is a launch pad to assist SMEs in becoming more competitive. Small and medium sized business (SMEs) are the backbone of the EU economy and a key cohesion policy partner to promote growth and jobs and also for regional, economic and social cohesion. There are 23 million SMEs accross the Union, representing 99% of all business and providing two thirds of all private sector jobs in the EU.
Total allocation business support through the cohesion policy for the period 2007-2013 will be around 55 euro Bn. This will go to large and small entreprises through general investment support for technology, research and innovation, financial engineering, business support services like mentoring or management consultancy checks but also other types of investments like business infrastructure, clusters and networks, and various training schemes. Directly targeted support for Small Businesses under the cohesion policy is 26 Bn euro and the support is focused strongly on the tecnology and innovation. Up to 65% of investments will be dedicated to tecnology and innovation activities for SMEs. Of the reminder, 14% goes to ICT activities in SMEs, 12% to start-ups and 9% for eco-friendly projects in SMEs.
The higest allocations by member states are: Denmark, Sweden, Finland, UK, Slovenia and Austria, all between 15-25% of the relative programme share. New member states face a challange in catching up in terms of developing support systems for SMEs and upgrading the role of SMEs in the economy. In addition, horizontal networking between SMEs in the New member states is an important factor to face increasing global competition but it is also a challenge since this represents a break with the top-down ar vertical tradition, strongly anchored in many NMS.But the support and the activities of Cohesion Plicy targeted to small businesses are not just about the funding. Soft factors are also at play. First, Cohesion policy covers all phases of business creation and dvelopment, including facilitating SMEs access to finance. In this context Mrs Hubner mentionned micro-credit initiative that will be launched in the September together with the EIB (European investment bank)- M Maystadt - and the EIF (European investment found) in Nice: This initiative has been created to help small business but also individuals that are not able to provide collateral, to acess to a finance in order to realize their ideas. She also mentionned JEREMIE initiative who has been included in more than 85 operational programmes, either on national or regional levels.
Secondly, Cohesion policy programmes bring funding closer to real concerns of SMEs through the partnerships. All actors, including business and their orgnizations participate in the planing and monitoring process.
Finally the cohesion policy improves the competitiveness of SMEs also by strongly promoting tailor made packages for SME networking. Commision support cluster-based networks but also inter-cluster networks where they support a full range of activities from the building of the physical cluster headquarters to setting up the virtual networks. All with the objective to bring together the public authorities, the universities and the business to innovate and create growth in their regions.
She concluded with the words that the small and medium business are the core of the Lisbon strategy and they have been the heart of Cohesion policy. This partnership between Cohesion policy and SME policy is a key factor in achieving competitiviness.