Showing posts with label SMEs. Show all posts
Showing posts with label SMEs. Show all posts

1/15/09

In The Loop: 14/01/09

Blue sky thinking to revitalise affordable homes market
"Ministers are looking at detailed plans for a multibillion-pound infrastructure fund to kickstart the stricken housing market. Against the worst conditions for housebuilding for more than 30 years, senior Whitehall officials are drawing up a groundbreaking scheme that would see the public sector inject equity into social housing developments in an attempt to "lever in" insurance and pension funds investment.

The idea is to create a huge cash pool that would see up to £6 of private capital invested by institutions for every pound of government money to dramatically increase the number of affordable homes built in Britain." [Guardian]

Mandelson unveils £20bn plan to free up credit for businesses
"The business secretary, Lord Mandelson, today unveiled a £20bn package of measures to support British businesses as the recession gathers pace, by bolstering the availability of credit from the banking sector.

The government is also bringing in Mervyn Davies, one of Britain's leading bankers, to replace Digby Jones as trade minister. Lord Jones left the government in the last reshuffle." [Guardian]

Quarter of local authorities freeze recruitment due to credit crunch
"Nearly a quarter of local authorities in England have frozen recruitment and more than one in eight have axed jobs in response to a decline in income caused by the credit crunch, the Local Government Association (LGA) said today.

A survey of 154 council chief executives found that 34 have already frozen recruitment as a result of the economic slowdown (22%) and 20 have shed jobs (13%.)" [Guardian]

Thames estuary airport would have 'disastrous' environmental impact, London mayor Boris Johnson told
"Boris Johnson was today warned of "disastrous" environmental consequences if his plans for a new airport on the Thames estuary went ahead.

The Conservative London mayor, who is opposed to a proposed third runway at Heathrow, is pushing the case for a third London airport on the Thames estuary." [Guardian]

Click here to read more information on Mr Grimsdale, King Heron and Mobius

12/19/08

EU Parliament Monitor - 19/12/08

European Parliament questions Sony BMG merger
"The indie sector has been given renewed hope that the Sony BMG merger story hasn’t ended following the European Parliament’s decision to ask the EC competition commissioner to justify her decision to approve the merger of the two majors in 2004.

The European Parliament has fired off three questions to Neelie Kroes challenging the Commission about competition in the music market. The questions are:

- Why did the Commission not carry out an in-depth investigation when it adopted its last approval decision?
- What is the Commission's strategy for making sure that SMEs have market access in concentrated sectors like music?
- Will the Commission adopt new rules or guidelines on how competition policy should be adapted to cultural markets such as music?

The commissioner has six weeks to provide a written explanation, although it is unclear what action Parliament can take if it doesn’t like her answers. Meanwhile, European indie organisation IMPALA is still appealing the original EC decisions allowing Sony and BMG to merge, which led to an appeal in the Court of First Instance. An IMPALA spokesman says that the move by Parliament is quite rare and it means Kroes has to justify her decision.
SonyBMG were not commenting." [MusicWeek]

European Parliament questions Sony BMG approvals
"The elected European Parliament has challenged the European Commission about it's speedy decision earlier this year to allow Sony Music to buy Bertelsmann out of the two companies' joint venture record company, SonyBMG, which put the second biggest music firm in the world into the ownership of one organisation, Sony Corp.

They also question the Commission's wider policy regarding allowing such big companies to be created in the music and cultural industries without safeguards to protect smaller independent firms - in essence questioning the approval of the SonyBMG merger in the first place.

As much previously reported, the merger of Sony Corp and Bertlesmann's respective record companies to create SonyBMG in 2004 was not without controversy. Pan-European indie label trade body IMPALA said the creation of a company as big as SonyBMG was anti-competitive and should not be approved by the Commission (who have the power to block such deals). When the Commission then OKed the merger, without conditions, IMPALA went to the European Courts who ruled in the trade body's favour, agreeing that the Commission had failed to sufficiently investigate the merger before giving it the green light and ordering them to reinvestigate the proposals. That they did, subsequently approving the merger for a second time. IMPALA are currently appealing that Commission decision too." [CMUDaily]

European Parliament challenges the Commission again about competition in the music market and the SonyBMG merger, as independents’ appeal continues without new action over Sony buy out
"The European Parliament has challenged the European Commission for the third time over SonyBMG. The EC Commissioner for Competition, Neelie Kroes has six weeks to provide a written explanation regarding:

1. Why the Commission did not carry out an in-depth investigation when it adopted its last approval decision?
2. What the Commission's strategy is for making sure that SMEs have market access in concentrated sectors like music?
3. Whether the Commission will adopt new rules or guidelines on how competition policy should be adapted to the specificities of cultural markets such as music?

In the meantime IMPALA will continue its initial appeal regarding SonyBMG. In September the European Commission approved the buy out by Sony of Bertelsmann's shares in the joint venture SonyBMG and IMPALA objected because no remedies were put in place and there was no detailed investigation. As IMPALA is still in litigation over the creation of SonyBMG in the first place, however, it will not launch a new appeal over the buy out. IMPALA's concerns mainly relate to the market power of SonyBMG (and the other majors) rather than who owns it. IMPALA's appeal in the European courts will be heard again by the judges next year. IMPALA also appealed the EC's second approval decision and this case is on hold while the appeal against the first approval is being dealt with." [RecordOftheDay]

Christa Prets MEP on media literacy in a digital world: MEP Christa Prets wants more "digital education"
"We all need to better understand the media we are touched by daily, especially the young, says Austrian Socialist Christa Prets. MEPs backed her report on "media literacy in a digital world" on Tuesday. In an exclusive interview Ms Prets explained to us what media literacy actually is, how we can improve it and how it can be used to teach the young." [Europa]

12/10/08

EU Public Affairs Monitor - 02/12/08

EC pares down plans for telecoms super-regulator Dec 2008
"The European Commission has agreed to pare back plans for a telecoms super-regulator, following a European Parliament vote in September.

Telecoms commissioner Viviane Reding had wanted a large body that could manage and potentially overrule national regulatory bodies such as the UK's Ofcom. However, she faced strong opposition from the national regulators and, on Friday, the Commission announced a new version of the proposed legislation, providing for a body of just 20 members — half of whom would be seconded from the national regulators themselves." [ZDNet]

Gov't launches £30m fund for small tech businesses 02 Dec 2008
"Business secretary Peter Mandelson on Monday announced a £30m fund for small to medium-sized technology companies.

As part of its Enterprise Capital Funds programme, the Department for Business, Enterprise and Regulatory Reform (Berr) will make the funds available to information technology, electronics and instrumentation companies seeking investment capital. The fund will be managed by TTP Ventures." [ZDNet]

12/5/08

EU Council Monitor - 05/12/08

Putting small businesses first
"The vast majority of businesses in the European Union are small and medium-sized enterprises (SMEs), with no more than 250 employees. They are the ones providing most new jobs. Finding themselves increasingly affected by the present financial crisis and economic downturn, they are soon to qualify for a package of special measures.

Having made SMEs' needs a permanent priority for the European Union, the Competitiveness Council on 1 December 2008 adopted some conclusions including specific steps to improve financing arrangements, simplify the environment and facilitate market access for SMEs.
The conclusions (in French) are available here." [Europa]

Competitiveness Council - Conclusions
The complete set of conclusions can be found on the link [Europa]

Small Business Act will "have a significant positive effect on the environment for SMEs"
"SMEs are crucial to Europe's economy, providing over 100 million jobs. In view of the current financial market crisis, the European Council must confirm that it will formally approve the Small Business Act and make its provisions binding, say MEPs in a resolution put forward by the EPP-ED and Socialist groups. The resolution was adopted with 614 votes in favour, 11 against and 9 abstentions.

Formerly approving the SBA will "ensure the necessary high visibility", while making its provisions binding will "have a significant positive effect on the environment for SMEs". [EuroParl]

First “European sessions on innovation”
"On 9 December 2008 in Paris, the French Presidency of the Council of the European Union is to hold the first “European sessions on innovation”, with the participation of the President of the French Republic and President of the European Council, Nicolas Sarkozy, as a prelude to The European Year of Innovation in 2009." [UE2008]

11/28/08

EU Events Monitor - 28/11/08

Françoise Le Bail: Small business, big ideas
"Next May, entrepreneurs from across the EU and further afield will take part in a series of events marking the first ever European SME Week. The week, which will run from 6-14 May, is being coordinated by the European commission’s enterprise and industry directorate-general under the slogan, “Small business, big ideas”. SME week will include fairs and conferences, online events, art and performance, networking events, company open days and competitions, all aimed at supporting Europe’s small businesses." [ParliamentMagazine]

Briefing - 3-4 December 2008 - Brussels plenary session
http://www.europarl.europa.eu/news/expert/briefing_page/41903-322-11-47-20081113BRI41902-17-11-2008-2008/default_en.htm

11/7/08

EU Public Affairs Monitor - 07/11/08

Benchmarks for innovation policy: A new study aims to find the ideal setting for entrepreneurs.
"A study to be published next month will set out an “entrepreneurial idyll” or an ideal environment for entrepreneurs to exist.
The study, carried out by Birmingham University and Cambridge University, aims to step away from the policy-driven measures to help boost small- and medium-sized enterprises (SMEs) and focus instead on what makes firms do well." [EuropeanVoice]

Spat over VAT persists - Germany remains highly critical over plans to lower VAT for more businesses.
"A row about extending the EU's lowest, 5% VAT rate to labour-intensive industries is likely to continue well into December, following a meeting today that revealed that divisions between the EU's 27 finance ministers remain deep.

There was, though, more agreement on VAT on cross-border trade and movement on several other issues, including an agreement to review alleged tax-evasion loopholes for Liechtenstein.
During the Ecofin meeting of finance ministers, Germany made it clear that there is no evidence that lowering VAT for labour-intensive businesses such as restaurants would create jobs and said thorough discussion is still required. The European Commission, with the strong backing of France, the EU presidency, presented the proposal in July." [EuropeanVoice]

French Senate Validates Three-Strike Scheme
"The French Senate has adopted the "Creation and Internet" law, only 24 hours after the debates began. While intense debates were anticipated, the draft gathered 297 votes in favor and only 15 against.

The draft law, which now has to be voted by the French Parliament, suffered surprisingly few amendments by the Senators, who most notably validated the three-strike scheme, under which infringers could ultimately see their Internet access cut." [Billboard][CMUDaily]

10/30/08

Grimsdale's Ire: 30/10/08

Gordon Brown urges banks to keep lending 30/10/08
“Gordon Brown today called on the banks to keep lending to small businesses despite the global credit crunch.

The prime minister welcomed a commitment by the European Investment Bank to make £4bn available to provide finance to firms in the UK.” [Guardian]


Alistair Darling urges banks to use £4bn from European Investment Bank 30/10/08
“Alistair Darling today urged the banks to use a £4bn package of support from the European Investment Bank to help small and medium-sized businesses through the credit crunch.” [Guardian]


Card demand 30/10/08
“Gordon Brown yesterday demanded that lenders who provide store and credit cards must change their rules to make it more difficult to repossess homes. The prime minister's intervention came after Shelter warned that up to 5,000 homes repossessed last year - out of a total of 27,100 - were from people who took out "second-charge" loans. These can be people who take out a loan against their home to pay off cards. The Treasury wants the Finance and Leasing Association, which covers the £11bn "second-charge" market, to draw up a code of practice in line with that adopted by the Council of Mortgage Lenders, which stipulates that a lender should take a debtor to court to repossess a property only if they have exhausted other options.” [Guardian]

Click here to read more information on Mr Grimsdale, King Heron and Mobius

10/20/08

EU Parliament Monitor - 20/10/08

European commissioner Günter Verheugen has called for a ‘greater effort’ to help cut the ‘burden’ of red tape facing Europe’s SMEs.
Speaking in parliament on Tuesday, the German official also said the EU must collaborate with the business community to foster a “spirit of entrepreneurship.”
One way of achieving this, he argued, is to further reduce the ‘administrative and compliance’ burden on Europe’s SMEs. [TheParliament]

German deputy Elmar Brok has backed calls for the Irish to hold another referendum on the stalled Lisbon treaty before next June’s European elections.
Irish prime minister Brian Cowen is expected to come under pressure from both Paris and Bonn to call a second referendum as early as March when he attends this week’s EU summit in Brussels. [TheParliament]

10/17/08

EU Commission: Enterprise and Industry Monitor - 17/10/08

Powerful clusters: Main drivers of Europe’s competitiveness
Competitive clusters are powerful engines of economic development and drivers for innovation in the European Union. They provide a fertile business environment for companies, especially Small and Medium sized Enterprises (SMEs), to collaborate with research institutions, suppliers, customers and competitors located in the same geographical area. A Commission communication published today, calls for more efforts for facilitating the emergence of world-class clusters in the European Union. It addresses key challenges to achieve this: Deepening the internal market, improving cluster policies, fostering trans-national cooperation, promoting excellence of cluster organisations, and improving the integration of innovative SMEs into clusters. [Europa]

10/10/08

EU Events: October 2008 Monitoring

The Internet Summit Austria 2008
02 October 2008, Vienna, Austria
"e-Inclusion" is the leading theme of the conference, which will be a meeting of minds of the leading thinkers and major architects of the internet and the digital society today. Their range of experience will cover all aspects of e-Inclusion like e-Accessibility, Ageing, e-Competences, Socio-Cultural e-Inclusion, Spatial e-Inclusion, Inclusive e-government and broadband for all.
This event takes place in preparation for the European e-Inclusion Ministerial Conference 2008 in Vienna and is supported by the Federal Chancellery of Austria. The audience will consist of the top 300 CEOs, academics, administration and politicians of Austria and some European countries.
ISPA (Internet Service Providers Austria) is a non-profit organisation dedicated to advance the usage of the Internet in Austria. [Europa]

Internet of Things - Internet of the Future
6 - 7 October 2008, Nice Acropolis (France)

eGovernment for Regions at Open Days 2008
to be held 7th October 2008, Brussels, Belgium
This workshop, organized during the Open Days 2008 European Week of Regions and Cities, will look at current EU initiatives and activities in the eGovernment area and how they can benefit regions and municipalities. [Europa]

The conference will concentrate on the following 2 areas:
1. aspects related to the development of the mobile Internet
2. the industrial and technological perspectives necessary for the development of the 'Internet of Things'

The aim is to identify and discuss the technological state-of-the-art, future trends, as well as opportunities and challenges, and draw a comprehensive picture of how the Internet of Things will change our interactions with objects. [Internet2008]

Ministerial Conference on the Internet of the Future
8th October 2008 [Europa]

Towards Future Media Internet
13 - 15 October 2008, Saint-Malo, France
This event aims to be a major conference and exhibition devoted to the field of Networked and Electronic Media (NEM) and ICT at large. It will provide an opportunity to network and share information and viewpoints on R&D status and perspectives in this area. It is organised by the NEM platform, one of the European Industrial Initiatives, also known as Technology Platforms. The NEM Platform is established by key European stakeholders, addressing the convergence of media, communications, consumer electronics, and IT as a wide opportunity for future growth, by taking advantage of generalised broadband access, increased mobility, availability of rich media formats and contents, as well as new home networks and communications platforms. [Europa]

An industrial property rights strategy for Europe, Strasbourg, 16-17.10.2008
A strong industrial property rights system is a driving force for innovation, stimulating R&D investment and facilitating the transfer of knowledge from the laboratory to the marketplace. On 16 July 2008, the Commission adopted a Communication on an industrial property rights strategy for Europe which outlines actions to ensure Europe has a high quality industrial property rights system in the years to come. The Communication provides a horizontal strategy across the spectrum of different industrial property rights and includes initiatives on enforcement, innovation support for small and medium-sized enterprises, and the quality of industrial property rights. It complements the 2007 Communication on the patent system, which set out a way forward towards the adoption of a Community patent and an integrated EU-wide jurisdiction for patents. [Europa]

Second European Summit on Interoperability in the iGovernment
20 - 22 October 2008, Rome, Italy
This event will offer a forum to develop new strategies, to network and build synergies between participants. These will include representatives from the European Commission, national and regional governments, researchers, academics and ICT experts. The Summit aims to : analyze the European Interoperability Framework produced by IDABC ; verify the state of the art in Interoperability in Europe ; involve International and national stakeholders on interoperability, in order to define new priorities and to develop more innovative and efficient electronic services. [Europa]

World Standards Day 2008 conference: "Standardisation and SMEs: a challenge for Europe; what are the keys to success?" Paris, 21 October 2008
On the occasion of World Standards Day 2008, the French Presidency of the Council of the European Union, in cooperation with the European Commission, will organise a one-day conference about standardisation.
...

Entrepreneurs, organisations representing SMEs, the national standards bodies, administrations and other interested parties will meet on 21st October 2008 in Paris in order to share their experiences and throw new light on the strategic importance of standardisation for SMEs, the challenges ahead and the solutions which work. [Europa]

2nd Europe INNOVA Conference - Accelerating Innovation
The Europe INNOVA Conference 2008 will focus on accelerating innovation in Europe and how to optimise knowledge transfer, strengthening industry's innovation capacity through strategic partnerships and supporting innovative entrepreneurs. 22nd – 24th October 2008 [Europa]

9/30/08

EU Events: August and September 2008 Monitoring

Conference on the new services and networks of the information society, internet and media updated 31/08/08
The French Presidency is organising an "i2010" conference in line with the EU strategy to boost the digital economy and information society in Europe.

Industry, Research and Energy Committee 1/9/2008 & 10-11/9/2008

Extraordinary committee meeting in the beginning of September
- When? On 1 September 2008; the meeting will start at 19h30.
- Where? In Strasbourg, in meeting room SDM-S1.
- What is on the agenda? Please consult the link below.

Ordinary committee meeting later in September
- When? On 10-11 September 2008; the meeting will start at 9h00 on 10 September.
- Where? In Brussels, in meeting room PHS 3C050.
- What is on the agenda?.

Innovation and Research: SMEs are the DNA of European economy. How to support them more and better?
Conference "Union européenne, Recherche et PME: l'Innovation en Mouvement" (organised by the French Presidency) Paris, 15 September 2008 [Europa]

Innovation and Research: SMEs are the DNA of European economy. How to support them more and better?
Janez Potočnik, European Commissioner for Science and Research
Conference "Union européenne, Recherche et PME: l'Innovation en Mouvement" (organised by the French Presidency), Paris, 15 September 2008 [Europa]

IPR in ICT standardisation Workshop (19/09/2008)
ICT standardisation is facing an increased impact from the inclusion of "patented" technologies in ICT standards and specifications which raises a number of questions to be addressed. For ICT standardisation to continue its role as a major instrument to support competitiveness, to increase interoperability and to respond to industry expectations and societal needs, an adequate balance has to be found between the need for standardised approaches and the interests of IPR owners. Standards developing organisations should be able to implement effective IPR policies while respecting the requirements of competition law.

The European Commission is therefore organising a one-day workshop on intellectual property rights and ICT standards on 19 November in Brussels. [Europa]

'Cluster Policy and Management: European and regional initiatives for innovation' 22nd - 23rd September 2008, Berlin
Cluster policy and regional cluster management are key tools for regional development and innovation. The European conference 'Cluster Policy and Management - European and regional initiatives for innovation policy' presents latest achievements and new initiatives of cluster development.

European regions need more innovation and economic growth to catch up with the global challenges. National and regional governments have recognised the potential of clusters as a driver in regional development. By taking determined action public authorities improve cluster development. This results in strengthening local economies, creating new jobs and attracting new investors. For this reason many cluster initiatives have recently been launched. The European Commission established a number of programmes supporting research and development and started new initiatives to help national and regional governments to create and develop regional clusters. For national and regional governments it is crucial to receive latest information on European policies and to ensure a good cluster performance in their region. [Europa]

FoCus final conference, Representation of Baden-Württemberg to the EU, Brussels, 29.09.2008, 3:30 - 8:00 p.m.
The FoCus consortium would like to invite to the FoCus final conference where the partners will present the project results. The conference will take place in the Representation of Baden-Württemberg to the EU in Brussels on 29.09.2008. [Europa]

9/29/08

EU Commission: Enterprise and Industry Monitor - 29/08/08

Suggestions to reduce administrative burdens put on business by the EU
Published: 21/09/2007 19:17 CET Deadline: To be announced
This on-line questionnaire has been designed to register your problems and suggestions on administrative burdens. Your input will be taken into account in the preparation of EU measures reducing administrative burdens. Contributions and feedback from the Commission will be summarised in periodic reports published on the Enterprise and Industry website. [Europa]

Speech at EU conference: Reducing red tape for Europe (26/09/2008)
Vice President Günter Verheugen
Speech at EU conference: "Cutting Red Tape for Europe" [Europa]

Reducing burden for SMEs: Simplification of EU rules on mergers and divisions proposed (25/09/2008)
The European Commission has put forward a proposal for a directive that will further reduce the administrative burdens on European public limited-liability companies in the area of mergers and divisions. Under the proposal, companies would benefit from simplified requirements on reporting and on publication of draft terms. The proposal complements the two packages of "fast track" measures that were put forward by the Commission in March 2007 and April 2008. These measures will contribute to the objective of reducing administrative burdens on EU companies by 25% by the end of 2012. The total savings potential of the measures proposed so far in the area of company law, with the current proposal, is brought to 1 billion €/year. [Europa]

Open access to research results will boost business and innovation
The European Commission has launched a pilot scheme which will provide open access to research results funded under the EU’s Seventh Framework Programme for Research (FP7). The pilot includes fields worth about 20 per cent of the FP7 programme budget and will make it easier for researchers and businesses to access results in areas such as health, energy, environment and ICT. The aim is to ensure that results of publicly funded research can be disseminated and exploited as widely as possible. [Europa]

Venturing across borders to support innovative SMEs (25/09/2008)
Finding finance is one of the greatest challenges facing SMEs. The European Commission and Member States are working together to create the right conditions for cross-border venture capital funds and markets to develop. [Europa]

2009 to be the European Year of Creativity and Innovation (23/09/2008)
The European Commission welcomes the news that today the European Parliament, meeting in plenary session in Brussels, has, by adopting its report, supported the Commission proposal that 2009 be designated as the European Year of Creativity and Innovation. [Europa]

Helping entrepreneurs IMP3rove their innovation management (23/09/2008)
As its name suggests, IMP3rove helps boost the capacity of SMEs to manage innovation. This EU-funded project is developing a range of tools and practices to encourage SMEs to recognise the importance of innovation management and to apply its techniques to improve their firm’s competitiveness. The project covers a wide range of sectors, including information and communication technologies, knowledge-intensive services, biotechnology, space, and food and beverages. [Europa][Europa]

Open call for tenders - Reference No EACEA/2008/04
Study on the entrepreneurial dimension of cultural and creative industries
The aim of the study is to better understand the workings and specific needs of enterprises, particularly SMEs, in cultural and creative industries. The study must focus on environmental factors, especially regulatory, that influence the development of these enterprises, and also on the issue of access to funding and entry barriers. Particular attention must be given to research and development. Deadline: 14/10/2008 [Europa]

9/9/08

EU Commission: Competition - 09/09/08

General block exemption Regulation (GBER) comes into force 29/08/08
On 29 August 2008, the newly adopted Regulation declaring certain categories of aid compatible with the common market in application of Article 87 and 88 of the Treaty (General block exemption Regulation) comes into force. It allows Member States to grant certain well-defined aid without notifying it to the Commission. The Regulation authorises aid in favour of SMEs, research, innovation, regional development, training, employment and risk capital. It reduces the administrative burden for public authorities, the beneficiaries and the Commission. [Europa]

Block exemption Regulations Published 09/08/08
General Block exemption regulation GBER - 09.08.2008

Regulation: OJ No. L 214 of 09.08.2008 pdf

State aid: Commission approves rescue loan for TV 2 Denmark 04/08/08
The European Commission has authorised, under the EC Treaty’s rules on state aid, a credit facility granted by the Danish Ministry of Culture to support TV 2 Danmark AS. The Commission concluded that the credit facility, which addresses the company's cash flow problems, constitutes rescue aid in line with the EU rules on state aid to companies in difficulty (see MEMO/04/172). In due time, the Commission will review whether the credit is fully reimbursed or whether appropriate restructuring measures to restore the long term viability of TV 2 Danmark AS are taken.
[Europa]

9/5/08

EU Commission: Internal Market - 05/09/08

"Think Small First": A Small Business Act for Europe
Most jobs in the EU are provided for by Small and Medium Sized Enterprises (SMEs), companies of 250 employees or less. They have a crucial importance for the future development, but very often face enormous bureaucratic hurdles and obstacles. European SMEs deserve to be better assisted to fully unlock their potential of long term sustainable growth and of more job creation. To achieve this goal, the European Commission has unveiled today the Small Business Act for Europe (SBA), based on ten guiding principles and proposes policy actions to be undertaken by both the Commission and Member States. [Europa]

McCreevy announces major initiatives on accounting rules for small businesses
Charlie McCreevy, Commissioner for the Internal Market and Services has announced [as dated] a Member State option to exempt micro entities and a review of the Accounting Directives for small businesses. [Europa]

Preparation of the Competitiveness Council of Ministers, Brussels, 25/26 September 2008
The EU Competitiveness Council will meet in Brussels on Thursday 25 and Friday 26 September under the chairmanship of Luc Chatel, Secretary of State for consumption and industry European Affairs and Hervé Novelli, the French Minister of State for Trade, Craft Trades, Small and Medium-sized Enterprises, Tourism and Services. On Friday 26 September, the Space Council, a joint meeting of the Competitiveness Council and the European Space Agency (ESA) Ministerial Council, will be chaired jointly by Valérie Pécresse and Maria Van Der Hoeven, the Dutch Minister for the Economy and President-in-office of the ESA Council. Valérie Pécresse, the French Minister for Higher Education and Research, will chair a meeting of the European research ministers on 26 September. The European Commission will be represented by, Vice President Gunter Verheugen, responsible for Enterprise and Industry, Commissioner Charlie McCreevy responsible for the Internal Market and Services, Commissioner Janez Potocnik for Science and Research. [Europa]

8/29/08

EU Commission: Enterprise and Industry Monitor - 29/08/08

FoCus Online-Training 29/08/08
The FoCus training concept is particularly targeted at representatives of trade associations, regional development agencies and politics, who it is envisaged will subsequently act as multipliers by passing on their e-business know-how to small and medium-sized enterprises. The objective of the training is to help these multipliers plan and implement e-business more efficiently. They are supported with practical tips for designing and implementing successful strategies to encourage e-business adoption. [Focus]

Education essential for an enterprising Europe
A new report identifies a range of actions which will encourage more young people to view entrepreneurship positively, and to consider it as a potential career. By adding specific educational activities from the early years in school and university curricula, the experts behind the report suggest that Europeans will gain more entrepreneurial mindsets and abilities and therefore be more likely to start out in business themselves. [Europa]

UK’s Small Firms Loan Guarantee Scheme lending falls to 2,619 loans in 2007/8 22/08/08
(22/08/2008) The recently published 2007/8 annual report on the UK’s Small Firms Loan Guarantee Scheme has revealed that lending under the Scheme fell by 13% in volume terms and 12% in value terms year on year. [Europa]

Supporting Social Tourism 21/08/2008
Social tourism gives travel and leisure opportunities to groups like the elderly, youths and persons with disabilities. By encouraging amongst other initiatives low-season travel it supports local economies and provides year-round employment. Possible EU support measures for social tourism were discussed at a recent conference organised by the Enterprise and Industry DG. [Europa]

Incentives for the increased commercialisation of unused patents 06/07/08 (Deadline: 12 September 2008)
In the framework of Entrepreneurship and Innovation Work Programme 2008 and Innovation Framework Programme, this study is meant to advance further theoretical and empirical insights into the existence of an increasing percentage of unused sleeping patents across numerous sectors in Europe. Unused sleeping patents are patents that are kept in force by the patentee but not (yet) used productively. While there might be legitimate technical reasons for such behaviour, it becomes sub-optimal for society if the underlying reason is the non-willingness or non-ability of patentees to trade them, as this blocks the innovation process. [Europa]

8/24/08

EU Public Affairs Monitor - 24/08/08

IFPI: "Three strikes" efforts hit worldwide home run 19/08/08
"The music business doesn't actually enjoy suing its fans, nor does it like being the worldwide target of scorn, wrath, calumny, disdain, rancor, and ridicule (did I miss any?). No, according to the International Federation of the Phonographic Industry, or IFPI -- the global music recording trade group -- the industry would much rather solve the P2P file-sharing problem through ISP partnerships rather than lawsuits.

We reported yesterday on Jim Griffin's work with Warner to make a voluntary blanket music license a possibility by partnering with ISPs and college networks. That's the "carrot" approach, but the music business wants some effective "sticks," too, and IFPI now believes it has found a good one: graduated response, also known as "three strikes" rules, which are being trotted out of regulatory dugouts around the world." [ArsTechnica]

Small Business Administration Orphan Works Roundtable August 24, 2008
"The Small Business Administration Office of Advocacy held a roundtable on the economic impact on small business (every artist) of the orphan works legislation at the Salmagundi Club in Manhattan on August 8. A webcast is available. (The Salmagundi Club is a 137-year old institution to promote the visual arts, named after Washington Irving's Salmagundi Papers.)

The roundtable participants included a broad cross-section of the creative community all of whom objected to, and many outright opposed, the orphan works legislation." [MusicTechPolicy]

3/9/08

EU Commission: Competition - 03/09/08

Study on the entrepreneurial dimension of cultural and creative industries 03/09/08
The aim of the study is to better understand the workings and specific needs of enterprises, particularly SMEs, in cultural and creative industries. The study must focus on environmental factors, especially regulatory, that influence the development of these enterprises, and also on the issue of access to funding and entry barriers. Particular attention must be given to research and development. [Europa]

5/28/07

Why Do Many Start-Up Businesses Die So Quickly?

New businesses have always been at an economic and business disadvantage compared to more established companies as a result of lower productivity, a lack of experience and insufficient contacts. More recently there have been significant shifts in the business climate as a result of globalisation, which increases competition as larger companies attempt to establish international branding and standards globally. To counteract this smaller companies are forced to focus on their strengths and cooperate more where they are less competent. This evolving framework is creating a new balance where both large and smaller companies. For start-up companies this will require a more considered but also more agile and collaborative philosophy, as there is less room for failure in today’s global economy. However, despite this there is significant scope for new start-ups to fill niches too small or ignored by larger companies.


Overcoming the First Business Hurdles
Aidis and Mickiewicz felt that younger business leaders were at a disadvantage compared to more experienced businessmen, as “experience accumulated in the current business is another important factor that makes the owners of businesses more confident in choosing a risky strategy for business expansion.”[1] However, Honjo considers that younger business leaders find it easier to deal with changeable environments.[2] Overall, academics opinion appears to confirm that younger entrepreneurs are less successful than more experienced businessmen.


Given the difficulties of entering a marketplace it is imperative for a high level of business understanding, both in terms of life experience and research. Peel considers that on average high planners are significantly more profitable and successful than low planners. He also concludes that strategic planning intensity is positively associated with the use of formal investment appraisal techniques and that SMEs “engaging in detailed strategic planning also employed the more sophisticated net present value capital budgeting technique to a significantly greater extent than their counterparts who worked out their strategic plans in less detail.”[3]


For SMEs it is important to get sound advice on raising finance, government assistance and training in the use of marketing techniques. Storey felt that “whilst there is a wide range of policy initiatives to assist small firms, governments throughout Europe have yet to formulate a coherent policy towards the sector,…public policies have been developed, jettisoned and often reintroduced on a piecemeal basis.”[4] Chen and Williams noted that “development assistance programmes tend to improve small business success rates for high-technology industries while they are ineffective for the low-technology industries.”[5] They also felt that bank loans “generally play a leading role in explaining business failure rates for high technology industries.”[6]


SMEs tend to have weak finances, with small cash flows making it difficult to invest significantly in projects. Foreman-Peck et al highlight that modern business relies on four main practices: ICT use, innovation, skills development and networking. Individual SMEs and their management may be “distinguished by their strategies and their emphasis on the policy instruments available to them.”[7] As start-up companies are limited by their smaller budget it is only feasible to explore a small handful of competences, otherwise the cashflow may be affected and the company is more difficult to coordinate due to its limited number of employees. For example, SMEs usually have to buy in services and/or undertake tasks with less specialized staff. An example of these handicaps is VAT compliance costs, which are extremely regressive: 7.8% of revenue for the lowest turnover range of firm in 1986–87 compared with 3.69% for the average.[8] Similarly, greater regulatory costs disproportionately force smaller firms out of business.[9]

Many companies look towards the Internet to improve their revenues. However, in a survey Webb and Sayer found that only 50% of respondents could identify tangible benefits as a result of their Web presence. Of these, only 69% felt most benefits were in the area of advertising and public relations, 15% in marketing and sales, 7% in customer feedback, 7% in globalisation; 15% felt it was too soon to tell.[10] They do not consider web sites critical enough unless they support existing business operations or create new opportunities for doing business. This is backed up by Schlenker and Crocker, who highlight how the optimism of the New Economy decreased, citing Amazon.com’s rapid recognition of the need to manage regional distribution outlets in order to maintain a rapid supply chain.[11] Consequentially, it is important for new start-ups to fully understand what the Internet and having a Web presence means to the company in allocating resources.

SMEs in the Context of Globalisation

Increased cooperation between governments over trade, including lower import tariffs and uniform trading standards combined with the development of faster and cheaper logistics and access to information via the Internet has helped to usher in a new age of global trade. The high levels of trade have put pressure on both large and small companies in different ways. Tambunan suggests that “great demands are made on the ability of SMEs to improve their efficiency and productivity and to adapt to and be flexible as regards market, product, technology, management, and organization.”[12] He goes on to suggest that further globalisation will generate larger market opportunities, with individual SMEs “often unable to capture these opportunities that require products with better quality and prices and good services after sale, larger production quantities, products homogeneous standards and regular supply.”[13]


For Web and Sayer the shift from concentrating on products to focusing on the services accompany the products “distinguishes the new economy from the old,”[14] with the evolution having several consequences for “firms that design, manufacture and distribute their products and services. If competitive advantage no longer comes from the physical characteristics but from the services and information integrated in the product offer, the market will favour firms that are capable of producing services and information to the detriment of purely manufacturing concerns.”[15]

Webb and Sayer also feel that the emergence of standards of quality will make it difficult for many companies to succeed, especially as companies have unprecedented access to corporate and consumer information. Their solution lies in SMEs benchmarking, as new or small companies are in most cases unlikely to be influential enough to go against the standard set by larger companies. Webb and Sayer consider benchmarking to be “the need to learn the business lessons of the early (or earlier) adopters.”[16] In terms of Internet start-ups they consider that the “pattern of Internet penetration and maturity is well established, having been repeated many times in many countries around the globe. It is not very difficult and does not take very long to establish your own level in this pattern.”[17] It is important to bear in mind that having a better standard means very little if everybody is using a more established platform

Balancing Self Sufficiency With Interdependency

Hughes asserted that the SMEs that succeeded in growing were more likely to have introduced product or process innovation. They were also more likely to have developed networks of collaborative partnerships and faced up to management development and reorganization needs as growth proceeded.[18] This is backed up by Kay who suggests that “firms survive and grow in a competitive environment if they are good at providing something the market wants. ‘Competencies’ of firms may thus be the key to growth.”[19] For start-ups the competency approach suggests that nurturing firm-specific knowledge and skills and investing in training of the appropriate type will be conducive to growth.


The Asian Development Bank considered that many enterprises “experience difficulties achieving economies of scale, and they also constitute a significant obstacle to internalizing functions such as training, market intelligence, logistics, and technology innovation and can also prevent the achievement of a specialized and effective inter firm division of labour, all of which are at the very core of firm dynamism.[20]


One method to combat this is to create trade clusters, which Tambunan considers to be effective both in Indoensia and
Europe, with experiences in many European countries showing that “clusters can be a powerful means for overcoming…constraints and succeeding in an ever more competitive market environment. Through clustering individuals can address their current problems related to their size, production process, marketing, procurement of inputs, risks associated with demand fluctuations, and market information and can improve their competitive position. Through a cooperation of enterprises in a cluster, they may take advantage of external economies: presence of suppliers of raw materials, components, machinery and parts; presence of workers with sector specific skills; and presence of workshops that make or service the machinery and production tools. A cluster will also attract many traders to buy the products and sell them to distant markets.”[21]


Despite the perceived benefits of joining trade associations as a result of improved contacts and prestige there are a number of critics, as membership “significantly reduces the chance that an SME is in the ‘high growth’ category, which is consistent with the cartel hypothesis.”[22] In comparison to the profitability result, the impact of trade association membership on growth category remains negative and significant at the 5% level for manufacturing, the professions and finance interacting.[23] Nijkamp felt that the benefits of the Rotary Club can be distracting, as the time lost from business may be unproductive and that the uniform networking style is perhaps contrary to the entrepreneurial spirit.[24] However, this criticism is mainly in regards to high growth companies, with trade associations likely to be beneficial to new SMEs.


Unfortunately, there are intrinsic difficulties in forming such networks through purely market relations. These depend upon the ability to evaluate what is to be exchanged in advance. But in the case of information, the evaluation cannot be made independently of the exchange: once a potential buyer knows how much a seller’s information is worth, they also know what the information is, and so need give up nothing in exchange. Because of this difficulty of creating the property rights in information and knowledge, there may be a ‘market failure’, a suboptimal rate of innovation and therefore of cost reduction and/or product development for start-up companies.


This situation is also exacerbated in the case for R & D, as all firms are “forced to maintain an equivalent breadth of R& D competences as other firms in the same industry, and at the same time maintain their innovative activities at the industry rate of evolution.”[25] Narula also felt that SMEs greater flexibility and rapid response compensate for some of the disadvantages of size, and may allow SMEs to maintain the rate of technological change. However, they do not “necessarily help SMEs when it comes to the absolute limit on its resources.”[26]


All SMEs should be cautious when assessing whether to use internal or external R & D. Although recognising overlap, Narula considers that “niche and marginal competences are strategically less significant and can be taken through alliances. However, “the strategic importance of these technologies determines to what extent their development can be externalised.”[27] This in turn is determined “by the extent to which the technology is tacit, the extent to which collaboration is required to utilise it, and to what extent the partners’ activities need to be monitored.” One method of overcoming such problems is to make sure that none of the SMEs partners has enough of the technology to be a competitor and try and work with smaller companies so the chance of abuse is minimised. Narula’s anecdotal evidence suggests that this is important enough to the point of rejecting cheaper contracts in return for greater access to the complete product in case the partner becomes a competitor. For Narula, “the more successful SMEs have been able to maintain their competitive position through a more astute use of non internal R & D, with less in-house R & D than larger firms. In the case of start-ups this is more critical as they have limited opportunities to fail with bad business partners.


Start-up companies have to recognise the strengths and weaknesses of their company relative to other companies. The ability for consumers and companies to access goods and services cheaply across the globe has increased the spectre of companies not being able to establish themselves quickly enough. To deal with this start-ups must be prepared to fill very tight niches that other companies ignore, trade on their strengths and collaborate where they lack competences or are unable to benefit from significant scale. Ignoring these pressures and spreading too thinly investment and coordination makes SMEs less profitable and dynamic in the long run. Over time it may be possible to expand the competence of goods and services but this should normally be only after the organic growth of a company. However, significant research needs to be taken into the type of association or partnership that any company takes, as it will affect future development of any business and perhaps determine whether any start-up succeeds or fails.


Written by Jonathan McHugh
First written in May 2007

[1] Aidis, R and Mickiewicz, T Entrepreneurs, Expectations and Business Expansion: Lessons from Lithuania (Europe-Asia Studies, Vol 58), 2006

[2] Honjo, Y Business Failure of New Software Firms (Applied Economics Letters), 2000

[3] Peel, M and Bridge J How Planning and Capital Busgeting Improve SME Performance (Long Range Planning, Vol 31), 1998

[4] Storey, DJ Understanding the Small Business Sector (Routledge, London) 1994

[5] Chen, J and Williams, M The Determinants of Business Failures in the US Low-Technology and High Technology Industries (Applied Economics, Vol 31), 1999

[6] Chen, J and Williams, M The Determinants of Business Failures in the US Low-Technology and High Technology Industries (Applied Economics, Vol 31), 1999

[7] Foreman-Peck, J; Makepeace, G and Morgan, B Growth and Profitability of Small and Medium sized Enterprises: Some Welsh Evidence (Regional Studies, Vol 40) 2006

[8] Sandford, C; Godwin M. and Hardwick P Administrative and Compliance Costs of Taxation (Fiscal Publ., Bath) 1989

[9] Ollinger M. and Fernandez-Corrnejo J Sunk costs and regulation in the U.S. pesticide industry (International Journal), 1998

of Industrial Organization 16, 139–168.

[10] Webb, B and Sayer, R Benchmarking Small Companies on the Internet (Long Range Planning Vol 31), 1998

[11] Schlenker, L and Crocker, N Building an e-business Scenario for Small Businesses: The IBM Gateway Project (Qualitative Market Research: An International Journal), 2003

[12] Tambunan, T Promoting Small and Medium Enterprises with a Clustering Approach: A Policy Experience From Indonesia (Journal of Small Business Management), 2005

[13] Tambunan, T Promoting Small and Medium Enterprises with a Clustering Approach: A Policy Experience From Indonesia (Journal of Small Business Management), 2005

[14] Webb, B and Sayer, R Benchmarking Small Companies on the Internet (Long Range Planning Vol 31), 1998

[15] Webb, B and Sayer, R Benchmarking Small Companies on the Internet (Long Range Planning Vol 31), 1998

[16] Webb, B and Sayer, R Benchmarking Small Companies on the Internet (Long Range Planning Vol 31), 1998

[17] Webb, B and Sayer, R Benchmarking Small Companies on the Internet (Long Range Planning Vol 31), 1998

[18] Hughes Small Firms and Employment. (ESRC Centre for Business Research, University of Cambridge) 1997

[19] Foreman-Peck, J; Makepeace, G and Morgan, B Growth and Profitability of Small and Medium sized Enterprises: Some Welsh Evidence (Regional Studies, Vol 40) 2006

[20] ADB Best Practice in Developing Industry Clusters and Business Networks (Asian Development Bank), 2001

[21] Tambunan, T Promoting Small and Medium Enterprises with a Clustering Approach: A Policy Experience From Indonesia (Journal of Small Business Management), 2005

[22] Foreman-Peck, J; Makepeace, G and Morgan, B Growth and Profitability of Small and Medium sized Enterprises: Some Welsh Evidence (Regional Studies, Vol 40) 2006

[23] Foreman-Peck, J; Makepeace, G and Morgan, B Growth and Profitability of Small and Medium sized Enterprises: Some Welsh Evidence (Regional Studies, Vol 40) 2006

[24] Nijkamp P Entrepreneurship In A Modern Network Economy (Regional Studies, Vol 37), 2003

[25] Narula, R R & D Collaboration by SMEs: New Opportunities and Limitations in the Face of Globalisation (Department of International Economics and Managemnt, Copenhagen Business School), 2000

[26] Narula, R R & D Collaboration by SMEs: New Opportunities and Limitations in the Face of Globalisation (Department of International Economics and Managemnt, Copenhagen Business School), 2000

[27] Narula, R R & D Collaboration by SMEs: New Opportunities and Limitations in the Face of Globalisation (Department of International Economics and Managemnt, Copenhagen Business School), 2000