Presentation of the SME Performance Review 2015/2016 European Economic and Social Committee Group III SMEs, Crafts and the Professions Category 2 December 2016 Brussels Ludger Odenthal H.1 - COSME Programme, SME Envoys and Relations with EASME European Commission - DG Internal Market, Industry, Entrepreneurship and SMEs
The Annual Report - background Collecting / harmonizing available statistical information and literature on the EU SME sector to: Provide an overview of size and structure of the EU SME sector Estimate and analyze SME trends Short-term outlook Comparison with partner countries
The SBA country Fact Sheets - background Objective: information tool for analysis of national SBA implementation and SME policies based on analysis of statistical data and policy information Sources: well established, internationally recognised databases, i.e. mainly intl. organisations (Eurostat, WB, etc.); network of country experts Use: Monitoring tool for SBA implementation process Input into Europe 2020/Competitiveness reporting Inform /Stimulate policy debate within Member States between government and business
SBA in the Fact Sheets SBA Principles 1. ENTREPRENEURSHIP 2. 'SECOND CHANCE' 3. 'THINK SMALL FIRST' 4. 'RESPONSIVE ADMINISTRATION' 5. PUBLIC PROCUREMENT & STATE AID 6. ACCESS TO FINANCE 7. SINGLE MARKET 8. SKILLS & INNOVATION 9. ENVIRONMENT 10. INTERNATIONALISATION
The SBA profile EU average +/- 0,5 standard deviations France 1. Entrepreneurship 10. Internationalization 9. Environment 1,0 0,8 0,6 0,4 0,2 0 2. Second chance 3. Think small first The raw data is normalized following a min/max approach; 8. Skills and Innovation 7. Single market 4. Responsive administration 5. State aid & public procurement The country score per principle is calculated as a weighted average of the normalized indicators; 6. Access to finance
SBA policy measures at EU28 level for Second chance (2011 Q1/2016)
EU SMEs basic figures Class size Number of enterprises Number of persons employed Value added European Union European Union European Union Number Share Number Share Billion Share Micro 21 356 252 92.8 % 40 057 410 29.5 % 1 454 21.2 % Small 1 378 702 6.0 % 27 503 428 20.2 % 1 233 18.0 % Medium-sized 224 647 1.0 % 23 170 353 17.0 % 1 251 18.2 % SMEs 22 959 601 99.8 % 90 731 191 66.8 % 3 938 57.4 % Large 44 458 0.2 % 45 168 733 33.2 % 2 924 42.6 % Total 23 004 059 100.0 % 135 899 924 100.0 % 6 862 100.0 % These are estimates for 2015 produced by DIW Econ, based on 2008-2013 figures from the Structural Business Statistics Database (Eurostat). The data cover the 'non-financial business economy', which includes industry, construction, trade, and services (NACE Rev. 2 sections B to J, L, M and N), but not enterprises in agriculture, forestry and fisheries and the largely non-market service sectors such as education and health. The advantage of using Eurostat data is that the statistics are harmonised and comparable across countries. The disadvantage is that for some countries the data may be different from those published by national authorities.
SME recovery continues 8
but no full recovery to pre-crisis levels yet Number of SMEs in the EU28, value added generated by these SMEs and number of persons employed by these SMEs, 2008 to 2015 (2008=100) 9
Full recovery in services, but construction and manufacturing still lag behind Employment growth in SMEs by sector (2008-2015) 10
Degree of SME recovery after the crisis by EU Member State 11
How have SMEs fared in 2015 in the EU a cross-country overview Negative annual growth Annual growth of 0% to 4.9% Annual growth of 5% or more SME value added growth in 2015 2 MS (EE, EL) 17 MS (AT, BE, BG, CY, DE, DK, ES, FI, FR, HU, HR, IT, LT, LV, NL, SI, SK) 9 MS (CZ, IE, LU, MT, PL, PT, RO, SE, UK) SME value added growth in 2014 2 MS (CY, FR) 18 MS (IT,SK,ES,FI,EL,HR,CZ,S E,AT,DK,BE,IE,BG,HU,D E,NL,PL,PT) 8 MS (LT,SI,RO,EE,LU,MT,LV,U K) SME employment growth in 2015 SME employment growth in 2014 1 MS (FI) 27 MS - 5 MS (CY, EL, IT, FI, FR) 23 MS - 12
Huge impact of business closures 13
Strong link between 'Second chance' and start-up dynamism EC estimates: Introduction of 3 year threshold for insolvency proceedings would have led in 2009-2014 to + 594 000 SMEs + 2 376 000 jobs 14
Insolvency discharge period % increase in the number of new enterprises if the discharge period is reduced to 3 years in Member States where the discharge period is currently longer than 3 years 62% 15
Overall policy implementation at EU28 level for Second chance Are legal procedures connected to bankruptcy 10 completed within a year? Is discharge from bankruptcy done in maximum 15 three years? Are re-starters (entrepreneurs who underwent 14 non-fraudulent bankruptcy) treated on an equal footing with new start-ups? Are there national information campaigns (or 5 other measures such as trainings, information sessions on procedures, etc.) to reduce the stigma of failure? Is there the possibillity of automatic discharge for honest entrepreneurs after liquidation? 6 Are there early warning and help-desk mechanisms in place to prevent or coach entrepreneurs going into bankruptcy? 12
Overall policy implementation at EU28 level for Access to finance Are there bank loans and corresponding guarantee schemes for accessing loans?? 27 Are there funds available dedicated to starting up a business? 20 Are there national grants in place for supporting startups? 25 Is there risk capital in place for supporting SMEs or start-ups 24 Is there funding for innovation, proof-of-concept and commercialisation of innovation?? 26 Is there a one-stop-shop to support SMEs to access the available funding they need? 14
SBA policy implementation for EU (2011-16)
Thank you very much for your attention! Ludger ODENTHAL (Team leader) H.1 COSME Programme, SME Envoys and Relations with EASME DG Internal Market, Industry, Entrepreneurship and SMEs European Commission Contact: GROW-SPR@ec.europa.eu SME Performance Review: http://ec.europa.eu/growth/smes/business-friendly-environment/performancereview/index_en.htm 19