A new portal has just been launched by the European Commission to help SMEs obtain information on the whole spectrum of EU policies, legislation, programmes and initiatives relevant to Europe's small and medium-sized enterprises. The following is a partial outline of this portal.

Ø       EU funding for SMEs

Promoting growth and creating new jobs in the European economy – and it is SMEs which play the biggest role in realising these ambitions – is at the heart of the EU’s main funding programmes. There are many opportunities available within the range of programmes, and this tool aims to help SMEs to find the ones which are most appropriate to their individual situation. It provides quick and easy access to information on opportunities within all the main EU programmes relevant to SMEs.

Whilst the Commission has made every effort to ensure the information within this tool is correct, users planning to make a funding application should cross-check with the information provided on the programme’s own webpages – linked from within this tool.    Users should also note that the tool includes the main EU programmes of relevance to SMEs. Other programmes and initiatives run by the Commission, as well as individual calls for tender, although not specifically intended for SMEs may also have opportunities for small firms to obtain funding.

Ø       Making SMEs more competitive

Setting up an SME is just the beginning. If SMEs are to have a significant impact on Europe’s economy, they need to grow bigger – take on more employees, and expand their product ranges, markets and turnover. In many cases, the skills and experiences of an entrepreneur are not necessarily sufficient to grow the business to a much larger size. Further stages in the company’s development require, amongst other things, new technologies and the know-how to implement them, new staff, with additional skills, and access to new markets. And of course, financial investment is a major requirement for growing a firm.

For most SMEs, the domestic market is their only market; only one-fifth of European SMEs export their products or services outside their home country. And even fewer have entered deeper into foreign markets; just 3% of SMEs have set up subsidiary firms, branch offices or entered into joint ventures in countries other than their own.  While large firms have the resources to operate in many markets, for smaller companies going abroad is a big step. There are many reasons for SMEs’ lack of penetration in foreign markets, including linguistic and cultural barriers, and differences in regulatory and legal environments. Furthermore, many SMEs are unaware of specific opportunities that would suit their business. They simply do not have the resources and the contacts which could alert them to potential partners and openings in foreign markets. And of course, the financial investment needed to launch into a new market can be a significant barrier to many SMEs.

Most Member States have put a range of programmes and support structures in place to help smaller firms tackle export markets. To help them all learn from each others’ successes, the Commission has set up a group of experts from all Member States to identify and share details of proven initiatives in this field. The group is due to produce a catalogue of good practices in early 2008.

Ø       Going international

If you want to expand your business, looking beyond your own country’s borders can be a daunting step, but is one which could create major growth in your business. One of the European Union’s greatest achievements is the creation of the European Single Market – a market with around 500 million consumers – and SMEs can benefit greatly from this. The Single Market has removed many of the barriers which, in the past, would have made it difficult for you to sell your products and services in another EU Member State.

In principle, if your product fulfils the regulations necessary to go on the market in your own country, it will not need to undergo further testing, certification or technical procedures before it can be sold in another Member State. Common EU rules, where necessary, and mutual recognition of national rules in many other cases have made it much easier for small firms to break into markets outside their home country.

Ensuring that SMEs are able to take full and fair advantage of Single Market opportunities is one of the European Commission’s biggest priorities. If you’re considering seeking out markets outside your own country, you should find out what your rights, obligations and opportunities are in the Single Market, and outside Europe. Furthermore, there are guides and programmes available to help you identify and profit from international business opportunities. Finally, if you come across instances where you believe Single Market rules have not been properly applied by public authorities, causing your company or product to be discriminated against, the Commission has set up the SOLVIT service which can try to resolve the problem.

And for firms which have already got a base in the Single Market, there are opportunities across the world. The EU negotiates on trade as a bloc, and the advantages gained can be worth as much to small firms as to larger ones. However, making the first steps into a market on the other side of the world is usually much harder than going to another European country. To help managers overcome these difficulties, the Commission has developed a number of programmes and networks, which provide guidance, support and even training to make more of such long-distance trading opportunities.

Ø       Support services across Europe

The European Union presents a huge range of opportunities for SMEs. But there are many factors which may discourage you from exploring these possibilities. Whether you feel your firm lacks specialist knowledge and experience, or you’re worried about language or cultural barriers, or simply think you don’t have the resources, there is help available to smooth your path to these opportunities.

Dedicated support services, staffed by experienced experts with contacts across Europe, play a major role in helping SMEs to grow and to develop new products and markets. By offering help at a local level, support services are best placed to understand your specific requirements, as well as offering you an overview of the instruments, opportunities and legislation across Europe relevant to your business. The European Commission has established a number of support services in the EU, seeking to help firms – SMEs in particular – benefit from the many opportunities available in the Single Market.

Among the networks with offices based in regions across Europe, the Euro Info Centres should be an SME’s first point of call, since they can provide information to SMEs on any aspect of EU policies, programmes and legislation. Other networks focus on more specialist tasks, for example the Innovation Relay Centres help firms and research organisations match up offers and requests to enable technology transfers between enterprises in different countries. From 2008, these two networks will be combined to form a single point of access for SME support. In addition, there are services which are offered through a central on-line and/or telephone help desk. Whilst SMEs are the primary target for most of these support services, some are also able to help larger firms and organisations which wish to enter into partnership with enterprises.

More information and assistance is just one click away……………

http://ec.europa.eu/enterprise/sme/index_en.htm