SME washing or rightful claims?

28 June 2023

SMEunited points direction for SME policy 

Brussels, 28/06/2023 – SMEunited launches “SME claims” analysis to review decision-makers’ claims and will call for alteration if claims cannot be concretised. The organisation assessed progress in SME policy on the occasion of the 15th Anniversary of the European Small Business Act (SBA), the UN Micro, Small and Medium-sized Enterprises (MSME) Day and the OECD SME Ministerial held in Paris on 27-28 June. Too often decision-makers claim to have taken SME concerns into consideration while the real result seems to be counterproductive. 

The UN MSME Day celebrates small companies as they contribute to local and national economies and to sustaining livelihoods. Moreover, the UN states MSMEs hold the potential to transform economies, foster job creation, and promote equitable economic growth if given adequate support. However, they acknowledge that entrepreneurs have a lot on their plate, and often fewer resources than their larger counterparts. They may feel they lack the time, knowledge, capacity or funds to tackle global challenges. Others simply do not know where to start.

The Small Business Act’s 10 principles paved the way for a more SME-friendly business environment in the EU. Nevertheless, 15 years after its adoption, the SME performance review on the state of play in all Member States shows the EU still has to build upon these roots. Entrepreneurs fought to stay afloat during the COVID crisis. The war in Ukraine, inflation and regulatory burden continue pushing entrepreneurs against the wall. To ensure SMEs remain job creators and innovation drivers, the “Think Small First” principle must be at the core of EU policy, put into practice in the SME Relief Package as well as the next Commission’s mandate. 

The ”Think Small First” principle means legislation and policy are based on the capabilities and specific characteristics of small companies, adding layers when required for bigger companies. The objective should be simple, easy to apply rules for all, avoiding the perception of creating an “outlaw” category and avoiding thresholds for growth. 

At the OECD SME Ministerial, President Petri Salminen and Secretary General Véronique Willems call for coherent and consequent broad-based policies applying the “Think Small First” principle and to act accordingly. Although SMEs seem top of mind, acts do not always follow words. In the past years, politicians refer continuously to SMEs as the “backbone of the economy”, however decisions and policies they put in place are “one size fits all”. This is why SMEunited launches an “SME Claims” initiative, to assess claims made by decision-makers on SME benefits in their proposals. The SME claim will assess the thorough performance of the SME Test, the provision of an appropriate transition period and templates to comply with legislation, targeted support measures and the involvement of SME organisations to provide guidance. 

Photo: Petri Salminen and Véronique Willems at the OECD SME Ministerial

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