EU policy for SMEsWorkshop – the power of ideas: innovation and

design thinking for growth

Nicola-Elizabeth Morris

DG Internal Market, Industry, Entrepreneurship and SMEsUnit Enterprise Europe Network and SMEs Internationalisation

Brussels, 28 October 2015

COSME: Programme for the Competitiveness of Enterprises and SMEs

1st EU programme targeted to SMEs• Promoting the creation and growth of SMEs• Strengthening their competitiveness

Access to markets Access to Finance Improving framework conditions for business Promoting entrepreneurship

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Improving framework conditions for business

Reducing administrative burden and supporting smart regulation;

Promoting measures to improve SME policy development;

Stimulating the development of certain markets or sectors (clusters, e-skills, KETs, tourism…).

11%

Promoting entrepreneurship

Developing of entrepreneurial skills and attitudes for new entrepreneurs, young people or women;Mentoring schemes.

Examples: •European Network of Mentors for Women Entrepreneurs;•Erasmus for Young Entrepreneurs;•Education for entrepreneurship and self-employment at school and university.

2,5%

Improving access to finance

• Support those SMEs which would otherwise not obtain financing (concept of "additionality");

• Overall target is to provide support to up to 330,000 SMEs; provide up to € 25 billion in financing;

• Debt and equity financial instrument for SMEs: Loan Guarantee Facility (LGF) Equity Facility for Growth (EFG)

=> Both part of a single EU debt/equity financial instrument for enterprises’ growth and R&I.

60%

Improving access to markets

SME internationalisation is a core aspect of EU SME Policy

• 90% of future global growth will happen outside the EU

• Only 13% of EU SMEs export beyond EU borders

• SMEs face bigger challenges to enter third countries markets:

• less in-house expertise and financial or human resources

• Not enough specific information to locate/analyse markets

• Difficulty for finding possible customers or the right partners

• High cost of internationalisation, language issue and compliance with foreign laws and regulations

Support to SMEs at EU level should complement measures in place at national or regional level

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Political actions for internationalization

• Regulatory approximation

• Economic Diplomacy

• SME Dialogues

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SME internationalisation – firmly integrated into trade policy:

New trade and investment strategy

•Highlights need to ensure that European SMEs can take full advantage of more open markets.

•Commitment to include SME chapters in future trade agreements (effective provisions for SMEs)

Political actions for internationalization• 1. Regulatory approximation• Long term objective: to create a business-friendly environment

abroad by eliminating non-tariff barriers, approximating standards and strengthening the rule of law.

• Giving SMEs the confidence to invest and do business abroad.

• 2. Economic Diplomacy• Including initiatives such as trade missions and events• Also building on:

• The Enterprise Europe Network's strong reputation in the area of partnership, in countries where the network is present

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Political actions for internationalization• 3. SME Dialogues• Listening to business stakeholders' views on EU SME policy,

including SME internationalisation, exchanging best practice. • Bilaterally with the USA, China, Russia, and Brazil • Multilaterally in the Eastern Partnership, the EU-MED

Industrial Cooperation and the enlargement countries. Example: Euro-Mediterranean Dialogue on the textile and

clothing industry:• launched in 2014• platform for an exchange of experiences and information on

available instruments and initiatives to improve the competitiveness of the textile and clothing industry across the Euro-Mediterranean area

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Supporting SMEs internationalisation through dedicated actions (1)

IPR Help-Desks

• free of charge, first-line support on IP and IPR matters toEU SMEs involved in transnational partnership agreements

• Helpline service provides tailor-made and confidentialadvice on specific IP or IPR query

• Training support (notably via webinars) and publications to address main IPR issues for SMEs ("know before you go")

• IPR Help-Desks developed for Greater China (incl. Hong Kong & Taiwan), ASEAN countries + Latin America

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Supporting SMEs internationalisation through dedicated actions (2)

Business Centres

• Example of the EU SME Centre in China or the EU-Japan Centre on Industrial Cooperation advising SMEs on howto invest and seize business opportunities

Trade Agreements

• Inclusion in all future EU Trade agreements of effectiveSME provisions (example of ongoing TTIP negotiations)

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How do I get European funding?

What does this EU law mean for my business?

How do I find a new market abroad?

How can I sell my innovative ideas and technology?

Enterprise Europe NetworkAdvice, information and cross-border

partnership services for European SMEs

I need a business/technology partnerLegal obstacles, administrative requirements

for exporting my products to…. Relevant standards…

Services to SMEs•Advice, support & information •Support for cross-border business and technology partnership •Enhancing SMEs' innovation management capacities

(Key Account Management services for Horizon 2020 SME instrument)

+ Feedback to the European Commission on difficulties encountered by SMEs

Thematic scope

•Internal market, innovation, EU programmes…….

•Access to finance / Improving SMEs' financial knowledge

•Energy efficiency, climate & environment (in-house services or signposting)

Third countries: Business Cooperation Centres (services focus on partnership)

How the Enterprise Europe network operatesIntegrated services: consortium partners provide an SME with a set of services to address its specific needs (assesses needs, tailor made advice…):

eg partner search, support for concluding partnership agreements, advice on relevant legislation/formalities to help an SME expand to new marketsKey assets of the Network: •Experienced staff•Proven capability to network with partners abroad to solve cross-border issues

Strong experience in

B2B meetings

Partnership professionals

Database+ advice by experts13000 technology &

commercial opportunities

Company missions

Advice

Business Cooperation CentresBased in 3rd countriesRole: Partnership and country information to help EU businesses benefit from opportunities on international markets•Norway, Switzerland•Armenia, Belarus 1, Georgia, Russia, Serbia, Ukraine, •Egypt, Israel, Jordan 1, Tunisia•Canada, USA •Argentina, Brazil, Chile, Mexico, Paraguay, Peru•India•Central China, East China, West & North China, Indonesia, Japan, Singapore, S. Korea, Taiwan•New Zealand South-Africa

 

Erasmus for young entrepreneurs• Helps new entrepreneurs acquire competence to manage

an SME• Via a placement with an experienced entrepreneur in

another European country participating in the programmeAdded vaue for the host business:• Exchange of knowledge and experience • Extension of network of contacts to another European

country• New business contacts• Access to foreign markets that are new for youThe stay is co-financed by the EU

Erasmus for young entrepreneursObligations / responsibilities for the host business:

•Supports a high quality training experience: based on experience and action for creating a viable business

•Establish good working relations

•Ensuring quality of experience

•Specific objectives and activities for each individual placement defined beforehand.

Other design and innovation related initatives

Design-Driven innovation: using design techniques and user-centric innovation strategies to:

- develop and market products or services- improve market advantage and customer satisfaction

•A project "Capabilities for design-driven innovation in European SMEs" running until Sept 2018 will build capacities of business intermediaries to help SMEs implement this form of innovation•The Enterprise Europe Network will have access to results

Workplace innovation: Various resources available on the EU Workplace Innovation Network (http://portal.ukwon.eu/)

Including short films illustrating how some of Europe’s most exciting companies are engaging employees in enhancing performance, innovation and working lives

Other design and innovation related initatives

• COSME includes a range of actions to promote cluster excellence and international cluster cooperation (in Europe and beyond), with special emphasis on cross-sectoral cooperation to support emerging industries. The Cluster Excellence Programme Cluster internationalization programme Cluster observatory

Future initiative in the pipeline

A pilot action to allow SMEs to formulate vacancies for innovation-relevant skills which they cannot find on the national labour market (2016).

Your Enterprise Europe Network partner will have further information as soon as this is launched.

Specific initiatives for textilesWORTH project financed under the previous EU programme for SMEs (CIP):

Supported transnational partnership between designers and businesses (manufacturers, retailers, craftsmen, technology companies) to create new innovative products

In the fashion, textiles, jewelry, shoes, optical industry, furnishings and leather sectors

Requirement to have partners from different Member States (or other countries participating in the programme)

Likely that this will be re-launched in 2016 (dependent on the adoption of the related work programme)

EU programmes relevant to textilesHorizon 202O: Research and development: Also includes specific SME measures: •Emphasis on promising technological ideas with excellent commercial potential.•Support for the feasibility and innovation phases, and advice/support for a third phase to signpost SMEs to other sources of finance for commercializationEurostars •Supports development of a new product, process or service that will be rapidly commercialized •Focus on research intensive SMEs (at least 10% of turnover dedicated to research). SMEs do the research. Supported by member countries

LIFE: environment

Thank you for your attention!

Nicola-Elizabeth MorrisEnterprise Europe Network and Internationalisation of SMEs

DG Internal Market, Industry, Entrepreneurship and SMEs

nicola-elizabeth.morris@ec.europa.eu