Competitiveness of SMEs: Policies, Key Stakeholders and Funding Programmes

Giovanna (Gianna) D’Addamio

Belgian-Italian Chamber of Commerce / UCL 1

About me Italian from Sulmona (Abruzzo)

Degree in International Relations and Diplomacy (University of Trieste)

Post graduate Master in European Studies (joint programme of three Berlin Universities, Humboldt-Uni. zu Berlin, Freie Uni., Technische Uni.)

Over 10 years experience in enterprise policy and SME support

Currently Project Officer at EASME, COSME Unit, Business Services Sector

Main responsibilities: I) support to the Enterprise Europe Network (main dossier: access to finance, sectoral areas: agrofood, aeronautics and space) and II) management of COSME and H2020 actions focusing on SMEs.

Previous experience at the Brussels office of Confcommercio, the Italian General Confederation of Enterprises, Professional Occupations and Self-employment

In charge of the dossiers on employment and social affairs, environment, financial services, ICT and regional policy. Special focus: tourism.

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CONTENTS

1. EASME

2. The European Enterprise Policy

3. COSME Programme 3.1 Access to finance

3.2 Access to markets and the Enterprise Europe Network

3.3 Improvement of Framework conditions

3.4 Entrepreneurship

4. Enterprise Europe Network (EEN)

5. SME Instrument

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1.

EASME

EXECUTIVE AGENCY FOR SMALL AND MEDIUM-SIZED ENTERPRISES

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VISION

We aim to create a more competitive and resource-efficient European economy based on Knowledge and innovation.

MISSION

We provide high quality support to our beneficiaries, turing EU policy into action.

As an executive agency of the European Commission, we manage significant parts of COSME, LIFE, Horizon 2020 and EMFF.

We ensure that actions funded under these programes deliver results and

We provide the Commission with valuable input for its policy tasks.

https://ec.europa.eu/easme/

1. EASME – Executive Agency for Small and Medium-sized Enterprises

1. EASME – Executive Agency for Small and Medium-sized Enterprises

Parent Directorates-General

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1. EASME – Executive Agency for Small and Medium-sized Enterprises

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2014-2020 Programmes managed by EASME

Pillar Industrial Leadership - Innovation in SMEs - SME Instrument

Pillar Societal Challenges - SC3: Secure, Clean and Efficient Energy - SC5: Climate action, resource efficiency and raw materials

o Environment oClimate Action

Access to Markets Framework Conditions Enterpreneurship

Field Control – Direct Management Integrated Maritime Policy Scientific Advise

1. EASME – Executive Agency for Small and Medium-sized Enterprises

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2014-2020 Programmes managed by EASME

Pillar Industrial Leadership - Innovation in SMEs (51.2 M. €) - SME Instrument (538.1 M. €) Pillar Societal Challenges

- SC3: Secure, Clean and Efficient Energy (148.4 M. €) - SC5: Climate action, resource efficiency and raw materials (96.1 M. €)

o Environment (382.6 M. €) oClimate Action (62.8 M. €)

Access to Markets Framework Conditions (142 M.€) Enterpreneurship

Field Control – Direct Management (22.9 M. €) Integrated Maritime Policy (55 M. €) Scientific Advise (16.5 M. €)

* Budget figures: Envelope to be

managed in 2020 (~ Budget per year)

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Programmes managed by EACI (2007-2013)

EIP

CIP

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2. THE EUROPEAN ENTERPRISE POLICY

2. The European Enterprise Policy

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Europe 2020 10 year Growth and Jobs Strategy

5 TARGETS for a Smart, Sustainable and

Inclusive Growth

1 Employment 2 R&D

3 Climate Change and Energy Sustainability 4 Education

5 Fighting poverty and Social Exclusion

The EU wants "… to promote the competitiveness of EU industry and businesses and enhance job creation and economic growth by creating a business-friendly

environment, particularly for small businesses and the manufacturing industry."

In this strategy, SMEs are a key actors as they…. are the 99 % of European businesses provide 68 % of jobs in the EU create 85% of all new jobs

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2. The European Enterprise Policy

1. REGULATIONS

E.g. Small Business Act for Europe (SBA, 2008) • unique framework for all the actions supporting SMEs. • 10 principles, which should guide the design and implementation of policies both at EU

and national level. • Main goals: improving the overall approach to entrepreneurship and mainstreaming

SMEs' interests in policy making.

Some results of this mainstreaming… - State Aid Legislation: specific rules for delivering support to SMEs (State guartantees, simplified methodologies for accountability, concrete premiums) - Late payment directive (2011) strengthens businesses' rights to prompt payment - Public procurement directive (2014): new set of rules in EU procurement, which facilitate SMEs participation (lower turnover requirements, easier access to information, division of contracts into lots…)

…and many others, including those ones establishing funding instruments or services for SMEs.

2. The European Enterprise Policy

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2. TARGETED FUNDING FOR SMEs made available via different EU programmes:

Access to finance

Project funding (e.g. tourism sector)

Support to entrepreneurship

- SME Instrument - Eurostars PPP - Venture Capital

(Equity / Debt Guarantees)

Up to 100 B. € for: SMEs competitiveness, digital agenda, research & innovation and low carbon economy

Ask your Regional Authorities!

2. The European Enterprise Policy

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3. COSME

Competitiveness of Enterprises and Small and Medium-sized Enterprises (SMEs)

3. COSME

EU programme for the Competitiveness of Enterprises & SMEs:

strengthens the competitiveness and sustainability of the European enterprises,

encourages an entrepreneurial culture, and

promotes the creation and growth of SMEs.

~ 2,3 billion € for 2014 – 2020

~ 328 M. € / year

General Information and Work Programme

http://ec.europa.eu/growth/smes/cosme/

Implementation (call for proposals, call for tenders)

http://ec.europa.eu/easme/en/cosme

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3. COSME

Participating countries

28 EU Member States

Countries mentioned in the COSME Regulation, which have signed an agreement

Enlargement countries (at the moment Albania, Former Yugoslav

Republic of Macedonia, Montenegro, Turkey)

Eastern neighbourhood countries (only Moldova at the moment)

Southern neighbourhood countries (no one at the moment)

EFTA countries (only Iceland at the moment)

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Specific objectives and funding 2014-2020:

•Studies and Evaluations in different policy fields

•Events

•Cluster Policy

•Erasmus for Young Entrepreneurs

•Women Entrepreneurship

• Internationalization

• IPR Helpdesks

•Missions for Growth

•Debt

•Equity

•Accompanying actions ACCESS TO FINANCE

(min 60%)

ACCESS TO MARKETS (~21,5%)

(~2,5%)

~ 1.380 M. € ~ 494.5 M. €

~ 57.5 M. € ~ 264.5 M. € IMPROVEMENT OF FRAMEWORK CONDITIONS (~11,5%)

3. COSME

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Specific objectives and funding 2014-2020 per year (average):

•Studies and Evaluations in different policy fields

•Events

•Cluster Policy

•Erasmus for Young Entrepreneurs

•Women Entrepreneurship

• Internationalization

• IPR Helpdesks

•Missions for Growth

•Debt

•Equity

•Accompanying actions ACCESS TO FINANCE

(min 60%)

ACCESS TO MARKETS (~21,5%)

(~2,5%)

~ 197 M. € ~ 70.6 M. €

~ 8.2 M. € ~ 37.7 M. € IMPROVEMENT OF FRAMEWORK CONDITIONS (~11,5%)

3. COSME

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Equity instruments

Equity Facility for R&I (H2020)

* (for early stage)

EFG - Equity Facility for Growth of SMEs (COSME)

* (for SMEs in expansion phase)

Debt instruments

SME Guarantee Facility for R&I (H2020)

* (over 150.000€ guarantee)

LGF - Loan Guarantee Facility for SMEs (COSME)

* (up to 150.000 € for securising debt finance portfolios)

COSME & H2020 Financial Instruments for SMEs

3. COSME

3.1 Improving access to finance

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3. COSME

How do financial instruments arrive to the beneficiaries?

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One-stop-shop for SMEs: broad dissemination of relevant information for SMEs willing to expand their business, providing SMEs information on how to expand outside EU, mapping and filling gaps in support services, training programmes for SME managers.

Sample actions:

• Enterprise Europe Network (600 organisations in over 50 countries)

• On-line portals (e.g. IPR Helpdesks, "Your Europe Business“ Portal)

• Trade support actions (European Footwear mission to Kazakhstan, Textile study for BRICs, EU Japan-Centre)

• Dialogue with third countries (industrial policy cooperation)

3. COSME

3.2 Improving Access to Markets

3. COSME

3.2.1. IPR HELPDESKS

IPR SMEs Helpdesks offer first-line advice and support to European SMEs facing Intellectual Property Rights difficulties in several countries.

- Helpline and expert advice (answers to queries); - Guides, fact sheets, newsletters; - E-learning tools, webinars, workshops.

Regional IPR SME HELPDESKS: MERCOSUR IPR HD: http://www.latinamerica-ipr-helpdesk.eu/

CHINA: http://www.china-iprhelpdesk.eu/ ASEAN: http://www.southeastasia-iprhelpdesk.eu/

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3. COSME

3.2.2. EUROPEAN IPR HELPDESK

H2020 Projects

Official IP services of the European Commission providing free-of-charge, first-line advice and information on Intellectual Property (IP) and Intellectual Property Rights (IPR).

Targeted at researchers & SMEs participating in EU-funded projects & SMEs involved in international technology transfer processes.

Main services

Helpline operated by a team of IP experts offering tailor-made advice;

Trainings & awareness raising;

Publications and info material.

www.iprhelpdesk.eu/

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3. COSME

3.2.3. Access to markets - Other Online Services

EU-Japan Centre

Aims at promoting all forms of industrial, trade and investment cooperation by facilitating exchanges of experience between EU and Japan businesses.

http://www.eu-japan.eu/summary-our-services

Your Europe Business Portal

Provides companies planning cross-border activities with information and interactive services.

Services concern real-life situations Single point of access to all mobility-related

information.

http://europa.eu/youreurope/business/index_en.htm

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Sample Actions

Studies (tenders), benchmarking, initiatives in specific sectors: SME Performance Review, Implementation of the Action Plan “Construction 2020”

Clusters excellence and Cluder Internationalisation Programme for SMEs

Tourism and Promotion of social entrepreneurship & family businesses: call for proposals & other actions

Guidance for bio-based product markets

Tools: Corporate Social Responsibiliy Risk Check Tool

European Resource Efficiency Excellence Centre

Conferences, expert meetings: High Level Group on Regulatory Fitness for Competitiveness

3. COSME

3.3. Improving Framework Conditions

OBJECTIVE

"to improve framework conditions for the competitiveness and sustainabiltiy of EU enterprises, particularly SMEs, including in the tourism sector".

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3. COSME

3.4. Promoting Entrepreneurship

Sample Actions

Studies, support to policy implementation Eurobarometer on entrepreneurship Digital Entrepreneurship Awareness Raising Campaign Exchange of best practices (Senior entrepreneurs)

Platforms and services for entrepreneurs e-platform for female entrepreneurs EU Network of Mentors for Women entrepreneurs – via National Contact Points

COSME supports the implementation of the Entrepreneurship 2020 Action Plan

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Exchange programme which gives entrepreneurs who intend to start a business (or have recently started one) the chance to learn from experienced owners of small businesses in other EU countries.

How to participate?

1. Look for your Local Contact Point

2. Submit your CV and Business plan via the on-line form

3. Contact your potential "host entrepreneur" and sign the agreements.

4. Do the stay in the host country – under supervision of the Local Entrepeneur and an Intermediary Organisation.

http://www.erasmus-entrepreneurs.eu/index.php

3. COSME

3.4. Promoting Entrepreneurship

4.

Enterprise Europe Network

(EEN)

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Co-funded by the European

Commission via COSME

2015 – 2020

Previously Co-funded via

the Competitiveness and

Innovation Programme

(CIP)

2008 – 2014

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• Based on the experience and the know-how of EICs (Euro-Info Centres) and IRCs (Innovation Relay Centres)

• “One-stop shop” for EU businesses

• Pratical support offered by local organisations

• Listening to SMEs to help them participate in the European policy making (SME Feedback)

4. ENTERPRISE EUROPE NETWORK

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4. ENTERPRISE EUROPE NETWORK

EEN is the tool for helping small companies make the most of the business opportunities in the European Union and beyond.

Over 50 countries 590 partner organisations >3.000 professionals

Diversity of Partners - Chambers of commerce - Economic development agencies - Technology transfer centres - Universities

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Sample organisation of the EEN

NATIONAL LEVEL one consortium or more consortia, according to the seize and/or the structure of the country. E.g.

Italy: 5 consortia, Belgium: 3 consortia, Ireland: 1 consortium

REGIONAL LEVEL consortia may reflect regional organisation or partners may agree on a multi-regional consortia. E.g.

Italy: multi-regional consortia – ALPS = Piemonte, Valle d'Aosta, Liguria

Germany: combination of regional (Bavaria - Bavaria2Europe) and multi-regional consortia (Berlin-Brandenburg - CIP-NET BB)

Belgium: 1 consortium for Flanders, 1 for Wallonia and 1 for Brussels

LOCAL LEVEL

Chambers of commerce, Economic development agencies, Technology transfer centres, Universities.

Organisation may be only in one town or have offices in different towns.

4. ENTERPRISE EUROPE NETWORK

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Services provided through local EEN partner:

Going International Meeting with potential business partners, advice on markets

Partnering services Huge profile database with commercial, technologial, research projects offers/requests

Access to finance - Evaluation company financial situation & kind of support needed - Information about sources of financing (venture capital, public aid, tax credits, etc.)

Promoting participation to H2020

Innovation support services (innovation management services)

Feedback to the European Commission: Speak up on EU law

Intellectual property and patents (IPR): advice and support

Advice on EU Law and Standards

4. ENTERPRISE EUROPE NETWORK

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Aeronautics & Space Agrofood

Automotive, Transport and Logistics

Bio Chem Tech

Creative Industries

Environment

Healthcare

I CT Industry and Services

Intelligent Energy

Maritime Industry and Services

Materials

Nano- and Microtechnologies

Services and Retail

Sustainable Construction

Textile and Fashion

Tourism and Cultural Heritage

Women Entrepreneurship

17 SECTOR GROUPS

4. ENTERPRISE EUROPE NETWORK

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Where to find the closest EEN partner?

Local EEN Partner

EEN website http://een.ec.europa.eu

Social Media

4. ENTERPRISE EUROPE NETWORK

5.

SME Instrument

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5. SME Instrument

Main Goal:

- helping high-potential SMEs to develop groundbreaking innovative ideas for products, services or processes that are ready to face global market competition;

- supporting innovation through phased, progressive and complimentary support.

Beneficiaries:

SMEs only. However, they can organise the project in the way that best fits their business needs – meaning that subcontracting is not excluded.

Mono-beneficiary or consortia

Budget available: about € 3 billion (2014-2020)

General Information and Work Programme

http://ec.europa.eu/programmes/horizon2020/en/h2020-section/sme-instrument

Information about implementation, including list of beneficiaries:

http://ec.europa.eu/easme/en/horizons-2020-sme-instrument

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5. SME Instrument

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5. SME Instrument

Phase I

Amount: EUR 50,000 (lump sum) per project (70% of total cost of the project);

Duration: around 6 months

Phase II

Amount: between EUR 500,000 and EUR 2,5 million (70% of total cost of the project as a general rule)

Duration: around 1 to 2 years

Phase III

Objectives: facilitating the commercial exploitation of the innovation activities resulting from phase I or phase II.

Activities to be proposed should support investment readiness, links with private investors and customers through brokerage activities, assistance in applying for further EU risk finance and a range of other innovation support activities and services offered via the EEN.

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5. SME Instrument

Coaching

Free-of-charge business coaching is offered to beneficiaries of phases I and II.

Coaching is provided by experienced business coaches selected through the EEN.

The coaching is proposed in parallel and aims at:

enhancing the company's innovation capacity,

aligning the project to the identified business development strategy, and

developing the commercial/economic impact and long term sustainability.

Questions?

Latest update: 14 November 2015

Thank you for your attention!

Latest update: 14 November 2015