The pandemic has revealed the vulnerability of small and medium-sized enterprises (SMEs) due to disruptions in supply chains and associated solvency problems. This is why it is important that SMEs be placed at the heart of public policies, as they are the backbone of European industry and economy, employing almost 100 million people.
In order to achieve Europe’s recovery, it is necessary to support SMEs. In addition to providing advice and public sustenance during the twin green and digital transitions, more needs to be done.
Against this background, the European Commission proposed in September 2022, a SME support package focusing on three key areas:
Combating late payments:
Late payments pose a threat to the survival of SMEs. Despite the existence of the EU Late Payment Directive, less than 40 % of payments are made within the contractual period. This puts at risk the liquidity and very existence of SMEs. To address this situation, it has been proposed to revise the Late Payments Directive and establish a modern and robust legal framework that promotes responsible business conduct across the Single Market. This framework could include ceilings for business-to-business payments, strengthen enforcement of sanctions, provide effective dispute resolution and mediation tools, and promote transparency in payment discipline.
Facilitating business in the Single Market:
SMEs continue to face a significant administrative burden. To address this problem, we need to simplify legislation and reduce disproportionate costs for SMEs. Better regulation and cutting red tape remain key priorities. To this end, it has been proposed to create a single set of tax rules called BEFIT, which will reduce bureaucracy, compliance costs and encourage employment and investment in the EU. The power of digital data should also be harnessed to give SMEs easy online access to information, procedures and helpdesks when doing cross-border business.
Facilitating access to finance and competences:
It is essential to invest and promote the growth of SMEs. The Recovery and Resilience Facility offers unprecedented levels of funding for the digitalisation, green transition and upskilling of SMEs. However, it is necessary to ensure that this money effectively reaches SMEs. This is how the InvestEU programme, which seeks to mobilise investments of more than EUR 370000 million, will play a key role in helping SMEs access loans and own funds. The lack of skilled workers should also be taken into account through the use of tools such as the Skills Pact and the training of skilled labour.