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SME-friendly Regions and CitiesSurvey of EU local and regional authorities

Mr Witold Krochmal, Rapporteur for the forthcoming CoR opinion on Competitiveness of Enterprises and small and medium-sized enterprises (2014-2020), invites you to provide your initial feedback on the policies for supporting SMEs and increasing the "business friendliness" of EU regions and cities.

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Your contribution will feed into both Mr. Krochmal's draft opinion (final adoption on 9-10 October 2012) and the 3rd CoR Monitoring Report on Europe 2020, due to be published in October 20121.

PLEASE FILL IN THIS QUESTIONNAIRE IN ANY EU LANGUAGE USING THE SPACES PROVIDED AND SEND YOUR COMPLETED QUESTIONNAIRE IN ANY WORD FORMAT TO:

europe2020@cor.europa.eu BY 23 APRIL 2012

For more information, including details of how to join the Europe 2020 Monitoring Platform, go to:

www.cor.europa.eu/europe2020The questionnaire will be available on this website in all languages as of the last week of March.

1 This annual report gives an account of how Europe 2020 is implemented on the ground, and the extent to which it is implemented in partnership by all tiers of government, ahead of the next European Commission's Annual Growth Survey. The 2nd CoR Monitoring Report was adopted in December 2011: http://portal.cor.europa.eu/europe2020/news/Pages/2ndCoRMonitoringReportonEurope2020.aspx

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CONTRIBUTOR INFORMATION2:

Name of sender: Marek WoźniakMarshall of Wielkopolska region

Contact details: (address, telephone, e-mail)

61-713 Poznań, Al. Niepodległości 18Tel. +4861. 626 66 00Fax +4861. 626 66 01email: marszalek@umww.pl

On behalf of: (name of local or regional authority)

Marshall's Office of Wielkopolska region

Country: PolandMember of the EUROPE 2020 Monitoring Platform (formerly Lisbon Monitoring Platform)3:

Yes No

1) Please summarise the current impact of the financial and economic crisis on enterprises in your area, especially SMEs.The effects of the global financial crisis, which have been felt throughout the Polish economy since the last quarter of 2008, have become particularly noticeable due to a fall in the number of new employees hired (employment freeze) and a reduction in the number of existing workers. In the Wielkopolska region, however, the situation is relatively stable. Labour supply exceeded labour demand, with an average registered unemployment rate of 9.2% over the years 2009, 2010 and 2011 compared to an average national rate of 12.3% (2010) and 12.5% (2011). Economic activity is primarily concentrated in micro-enterprises (94.5% of all registered businesses) and small enterprises (4.6%). Some 375 192 businesses are registered in the Wielkopolska region, of which 6 114 have foreign capital, employing a total of 596 100 people. Average salary in the region is above the national average. Of Poland's 16 regions, the Wielkpolska region has Poland's third highest level of GDP. This figure is higher than the national GDP of Cyprus, Lithuania and Latvia. It is similar to Slovenia's national GDP. GDP per capita is 63% of the EU average.

2 Privacy Statement The follow-up to your contribution requires that your personal data (name, contact details, etc.) be processed in a file. All the answers to the questions are voluntary. Your replies will be kept for a period of 5 years after the receipt of your questionnaire. Should you require any further information or wish to exercise your rights under Regulation (EC) No. 45/2001 (e.g. to access, rectify, or delete your data), please contact the data controller (Head of the Networks and Subsidiarity Unit) at europe2020@cor.europa.eu. If necessary, you may also contact the CoR Data Protection Officer (data.protection@cor.europa.eu). You have the right of recourse to the European Data Protection Supervisor at any time (www.edps.europa.eu). Please note that the questionnaire with your contribution and your contact details will be published online. Your questionnaire may be transmitted to CoR Rapporteurs and other EU institutions for information. Should you not agree to this, please inform us accordingly.

3 If you are interested in joining the Europe 2020 Monitoring Platform, please visit: http://portal.cor.europa.eu/europe2020/Knowledge/Pages/BecomeaMember.aspx

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2) Has your local/regional authority taken any specific measures to help SMEs address the crisis since 2008? YES X NO If YES, please describe in brief.One of the priorities of the Regional Innovation Strategy is to establish innovative enterprises by showing SMEs how they can introduce procedural innovations and implement innovative methods through the use of modern designs and functional products. The action taken by enterprises should help make their products and services more competitive.The Economic Promotion Strategy (strategic line 3) focuses on the need to continue internationalising the region's economy by helping Wielkopolska companies expand onto foreign markets: boosting their export capacities, ensuring closer links among companies for joint promotion abroad, improving companies' access to market information, stepping up their promotional activity on external markets and improving the recognisability and image of products made by local companies. This can help lead to the creation of a veritable "regional label."The final document of the Regional Foresight for Wielkopolska project sets out three scenarios for the development of the Wielkopolska region up to 2030. The Wielkopolska region has opted to implement the "dynamic development" scenario. As drivers of economic development, SMEs will play a key role in this process. Another project being rolled out is the POKL 8.2.1 project on Supporting cooperation between academic and business circles in Wielkopolska which promotes SME initiatives through, among others, the use of vouchers that allow companies to fund research and enable cluster initiatives to finance specialist research and technological advice, as well as by providing innovation brokerage services, advisory through coaching, work placements and training in companies for academic staff from science institutes. The Centrum Obsługi Inwestorów i Eksporterów (Investor and Exporter Service Centre – COIE) was set up in the Wielkopolska region as part of a project carried out by the Ministry of the Economy. Its aim is to boost the international reach of Polish companies by providing businesses with easier access to the comprehensive, high quality and free information they need to plan, organise and start export and investment abroad. The COIE also aims to increase the level of foreign investment in the region. The Employment Action Plan for Wielkopolska, which is adopted by the Wielkopolska regional authority, sets out the broad outlines for optimising the region's human resources The plan covers all action taken by the regional government and other institutions/organisations involved in shaping the labour market.

Adoption of the objectives of the Western Poland Development Strategy drawn up on the basis of an agreement signed between five regions (Wielkopolska, Dolnośląskie Lubuskie, Opolskie and Zachodniopomorskie) on 26 August 2010 – in particular Objective IV: Supporting the development of a network of scientific-research and educational institutes and developing other elements of a knowledge-based economy.

Direct financial support for the SME sector through:1. Allocation of funds from the European Regional Development Fund, under the 2007-2013 Wielkopolska Regional Operational Programme, earmarked to finance action in the SME sector;Measure 1.1 Development of micro-enterprises – allocation of EUR 10.69 million / support for 267

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projects;Measure 1.2 Support for the development of SMEs – allocation of EUR 175.26 million / support for 94 projectsMeasure 1.3 Development of the system for financial business support instruments through the implementation of the JEREMIE initiative. The project administrator is the Wielkopolska Agency for Enterprise Development. which granted 582 loans to SMEs during 2009-2012, for a total amount of PLN 75.43 million (EUR 18.17 million).Measure 1.5 Regional Economic Promotion – key project under the "Comprehensive promotion of the economy and investments in Wielkopolska" – allocation of EUR 3.1 million / organisation of 22 economic missions to 10 countries worldwide for 220 representatives of SMEs, business organisations, local government and institutes of higher educationMeasure 1.6 Development of cooperation networks – allocation of EUR 4 million / support for 9 projects.2. Allocation of funding under the JESSICA project (EUR 66 million) and economic initiatives implemented under the public-private partnership.

3) To what extent do you believe that the crisis has forced your region/city to rethink the regional policy making (process) on entrepreneurship and to apply the Small Business Act's "Think Small First" principle? Please explain in brief.Supporting the SME sector involves: promoting creativity and innovation, fostering HR development at enterprises, providing entrepreneurs with advisory and information, ensuring financial support instruments based on the needs of SMEs. This action has been incorporated into the strategic documents that are binding in the region. The crisis has therefore not led to any changes in the process supporting entrepreneurship.

4) Please state which of the following objectives for SMEs are supported by your local/regional authority. For each item selected, please state briefly what form this support takes:

a) improving access to new markets and fostering international growth (within and beyond the European Union)

b) ensuring easier access to financing for SMEsc) helping address the regional skills mismatchd) promoting entrepreneurship as a career pathe) improving internet access f) e-government services for SMEsg) facilitating innovative activity and marketing of its resultsh) others (please specify)

- improving access to new markets and fostering international growth involves the organisation of trade missions, attended by representatives of SMEs, business organisations and institutes of higher education as well as participation at international trade shows and specialist fairs (Brazil, India, Canada, Kazakhstan, Russia, Japan, Italy, Georgia etc) financed by ERDF funding under Measure 1.5 of the Wielkopolska Regional Operational Programme - ensuring easier access to financing for SMEs involves extensive promotion within the sector, media and at information meetings with SMEs organised by the Wielkopolska regional authority (e.g. promotion of JEREMIE financial instruments, implementing permanent investment projects in

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JESSICA urban areas and the introduction of coaching services under the JOSEFIN project).- supporting "dual education courses" which combine theoretical and practical knowledge and the promotion of careers guidance initiatives carried out, among others, by business organisations with financial support from Wielkopolska regional authority. - fostering academic entrepreneurship as a key element at the beginning of a university graduate's career through the organisation of competitions for Public Utility Organisations and the Student Centre for Innovation and Technology Transfer project, implemented under POKL 8.1.1 - involvement in the construction of the Wielkopolska Broadband Network, which will ensure that at least 90% of the region's inhabitants have access to e-services.

5) How SME friendly is your legislation (including your system of taxation)? What legal changes could be introduced at European, national and/or subnational level to improve the situation for businesses?Registration of a limited liability company (sp. z o.o.) within 24 hours. The principles of the amended Commercial Companies Code are not actually met in practice.

6) In order to increase regional competitiveness, should you target specific economic activities for support? If so, what are these economic activities? In the Wielkopolska region, support should be given to the creative sectors (design) and to the airline, biotechnological, ICT and IT sectors.

7) The European Council recently identified a series of urgent measures for supporting growth, in particular SMEs. Among others, the following objectives were identified:

a) Strengthening the Single Marketb) Completing the Digital Single Market by 2015 (in particular: boosting confidence in

online trade; providing better and cheaper broadband coverage)c) Reducing administrative and regulatory burdensd) Removing external trade barriers and ensuring better market access and investment

conditions outside the EUe) Improving access to financef) Delivering top-quality business support servicesg) Promoting entrepreneurship h) Promoting the development of an effective EU-wide venture capital regimei) Making more effective use of pre-commercial public procurement to support

innovative and high-tech businesses.To what extent could these actions improve the situation for SMEs in your region/city? Can you suggest any other action?Strengthening the Single Market is of particular importance – the universal access and availability of services, in accordance with GATS requirements, as well as the free movement of goods and capital. Including the region in the dialogue between the EU and its partners outside Europe (Asia, Africa and Latin America) through participation in ACP work. The joint promotion of businesses from EU Member States on external markets, organised by specialist EU agencies, is advisable.

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8) The COSME Programme for Competitiveness of Enterprises and SMEs will replace4 the current CIP (2007-2013) and will have a budget of EUR 2.5 billion from 2014 to 20205. Please comment on:

a) the potential benefit of the COSME programme for your regionb) the challenges relating to its implementationc) the action that the national, regional and local authorities in your country could take to make COSME a success storyd) the role that the local partners of the Enterprise Europe Network or other business support providers could play with respect to COSME

The programme for the Competitiveness of Enterprises and SMEs will make it possible to step up action to increase innovation and economic competitiveness within the region. The programme should improve SMEs' access to financing in the form of capital and debt instruments, access to the EU's internal and external markets and make the promotion of entrepreneurship more effective. Implementing the programme will require the organisation of an information campaign to encourage potential beneficiaries (existing or planned SMEs) to make use of the available funding. The national, regional and local authorities could take action to simplify the legal and organisational procedures involved when private individuals wish to set up a business. This will require the formulation of effective national legislative instruments. It would also be a good idea to incorporate the programme into the action of institutes/organisations supporting entrepreneurship (e.g. Krajowy System Usług dla MŚP – the National System of SME Services).

9) Do you wish to share your experiences (please indicate: title of the project/policy action, brief description, source of funding, if the action is carried out in partnership with other levels of government, obtained results, website and any other element you deem useful) on the above issues and/or add any further comments or suggestions? If so, please include your comments here. Please send us any additional relevant reports/policy papers which you may have available.The implementation of structural funds in the Wielkpolska region has yielded positive results (Wielkopolska Regional Operational Programme, a regional component of the Human Capital Operational Programme, direct applications to national programmes).Implementation of regional strategies: 2010-2020 Regional Innovation Strategy for Wielkopolska and the 2011-2020 Economic Promotion Strategy for Wielkopolska as well as a number of development scenarios set out in the Regional Foresight for Wielkopolska final document.

THANK YOU FOR YOUR COOPERATION!

4 Compared to the CIP, COSME places a greater emphasis on overcoming the direct obstacles which SMEs face when setting up a business, accessing foreign markets or looking for business information and advice. The programme's five key actions are: (1) Access to finance for SMEs through dedicated financial instruments; (2) Enterprise Europe Network: a network of business service centres; (3) Entrepreneurship (supporting transnational networks and knowledge sharing); (4) Improving framework conditions for the competitiveness of enterprises and policy development; (5) Internationalisation of SMEs.

5 More information at: http://ec.europa.eu/cip/cosme/

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Background information

Although Europe 2020 remains the EU's long-term strategy of structural reforms for smart, sustainable and inclusive growth, the European Council set out a number of short term priorities in the first quarter of 2012 to help boost growth and jobs. One of these priorities is to ensure the business continuity of SMEs and to strengthen them in view of the key role they need to play if the European economy is to return to a path of growth and job creation. .

To this end, the main action undertaken by the EU institutions include: Small Business Act6 - a set of 10 principles which should guide the design and

implementation of policies both at EU and national level. This is essential to create a level playing field for SMEs throughout the EU and improve the administrative and legal environment so as to allow these enterprises to unleash their full potential to create jobs and growth;

Improving access to finance, delivering top-quality business support services and promoting entrepreneurship through the COSME Programme for Competitiveness of Enterprises and SMEs, which will have a budget of EUR 2.5 billion from 2014 to 2020 and replace the current CIP (2007-2013). Compared to the CIP, COSME places a greater emphasis on overcoming the direct obstacles which SMEs face when setting up a business, accessing foreign markets or looking for business information and advice. The programme's five key actions are: (1) Access to finance for SMEs through dedicated financial instruments; (2) Enterprise Europe Network: a network of business service centres; (3) Entrepreneurship (supporting transnational networks and knowledge sharing); (4) Improving framework conditions for the competitiveness of enterprises and policy development; (5) Internationalisation of SMEs7.

Promoting the development of an effective EU-wide venture capital regime, through an "EU passport" (to allow venture capital fund managers to grow and to market their funds across the EU using a single set of rules) and a "fund of funds" (to provide cross-border risk capital and a financing scheme to support innovative SMEs).

Making more effective use of pre-commercial public procurement to support innovative and high tech businesses.

Reducing administrative and regulatory burdens at EU and national level. The European Entrepreneurial Region (EER) award label, identifying and rewarding

EU regions with outstanding entrepreneurial visions).

6 http://ec.europa.eu/enterprise/policies/sme/small-business-act/7 More information at: http://ec.europa.eu/cip/cosme/

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