Small Business Act for Europe


The Small Business Act for Europe is an act designed to assist small businesses.

Background

In June 2008, the European Commission adopted a communiqué titled "Small Business Act" for Europe to the European Council, European Parliament, European Economic and Social Committee, and the Committee of the Regions. Its aim was to provide an SME policy framework to improve competitiveness and promote entrepreneurship. Rather than being a legislative Act, it contains provisions applying to small firms, directed at governments and institutions to "think small first" when establishing policy and law.

Content

The SBA invites the Commission and Member States to adopt:
The SBA applies to independent companies with fewer than 250 employees. It provides an "SME test" to ensure SMEs are taken into account at an early stage of the policy-making process. As such, all new administrative or legislative proposals are to be subjected to an SME impact review. Countries including Belgium, Finland, Denmark, and Germany have added this test into their national decision-making processes. The Act also carries a provision to appoint SME envoys, the role of which is to liaise between the EC and SMEs. The SBA promotes the Erasmus for Young Entrepreneurs program, and creates Market Access Teams in select export markets, particularly China and India.