Firms unimpressed with EU's new SME strategy
The long awaited passing of the European Commission's Small Business Act (SBA) has been met with disappointment by groups representing entrepreneurs across Europe.
Underpinned by the principle 'Think Small First', the commission trumpeted Wednesday's introduction of the legislation as a "crucial milestone" which will slash red tape, make public authorities more responsive, drive up access to finance and boost training and innovation.
Alongside initiatives aimed at making it easier to set up a company in different member states and measures to tackle late payment, commissioners promised to cut administrative burdens by 25% over the next four years. The needs of small firms, they said, will be taken into account during the planning of new regulations.
But after waiting for several years for the implementation of the Act, the reaction of small business lobby groups was been far from celebatory.
"The desire to think small first is a welcome development but this publication is unlikely to produce the shift in policy we were led to expect," said David Frost, director general of the British Chambers of Commerce.
"This is a mish-wash of watered down proposals and initiatives with a questionable amount of political will attached to it from the member states."
UEAPME, which represents small firms across Europe, meanwhile questioned whether sufficient financial support is available to back the Act's "ambitious aims" and credit management service provider Intrum Justitia criticised the commission's approach to tackling late payment, a problem which cost European SMEs €250bn in 2007.
"The SBA only points out that an amendment to the [Late Payment] Directive is prepared," the company said in a statement. "The work to prepare an amendment has actually been underway for more than a year. Therefore the SBA has failed to include new and substantial solutions to the ineffective directive."
In its response, the Forum of Private Business (FPB) called on the UK government to "go one step further" than the Act and prioritise the concerns of the UK's smallest firms.
"In the past, the UK government has championed much of what has been said in the Act," said FPB chief executive Phil Orford. "However, given the lack of a mandate compelling member states to implement these proposals, it is important that the government now takes on the mantle of supporting the UK's smallest businesses, in order to help them to grow by implementing real policies designed to address their needs."
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BusinessZONE - 26-Jun-2008
Categories: News
Story read: 1787
Number of comments: 1
Petition Government to go further
Jane Bennett, 26 June 2008 @ 16:33 PM
Small firms can add their name to a petition, calling for the UK government to go one step further and 'Think Smallest First' and reduce red tape and tax burdens. Visit thinksmallestfirst.org to sign the petition
Jane Bennett
Forum of Private Business
