SMEs: A favourable business environment: supporting enterprise and job creation

'Think Small First': A Small Business Act for Europe At a time when there is a global financial and economic crisis, it is companies, in particular SMEs that are the most sensitive and at the same time the most important elements in terms of job creation and recovery capacity. SMEs are a crucial part of our economy and a major source of employment, entrepreneurial skills and innovation   NCW Recommendations
• That the European Commission initiates the steps to establish and enact a separate legal framework to specifically address the needs of Small and Medium Sized Business (SMEs).
• The adoption of national legislation to give binding effect to the 'Think small first' principle proposed by the EU Commission in its communication 'Think Small First: A Small Business Act for Europe' with a view to the specific situation and needs of various types of SMEs (COM(2008) 394 final drawing up a Small Business Act National Plan (separate from the NRP).
• Appointing a national SME envoy charged with both managing implementation of the Small Business Act European style (SBAE) and ensuring that national laws transpose EU legislation that comply with the fundamental principles of Think Small First; (Malta Enterprise).
• Policy measures other than suitable financing that would help SMEs to grow and develop, recognising SMEs as the rule and not the exception.
• The establishment of obligation to ease the administrative burden for companies. More SME-friendly pubic service through specialised SME training in particular in the VAT department.
• Putting in place the framework conditions to the process of reaching the ambitious 3% of the GDP target for R&D spending in the next five years.
• Pilot measures on energy efficiency for SMEs  in particular in the construction sector.
• “Half of the women of the world are in ‘vulnerable jobs’, that is, they are self-employed in the informal sector or work as unpaid family members” ILO.  Falls in public spending increase women’s care burden. There is therefore the need to strengthen the capacity of government to promote gender equality (in this case) through Gender and Trade.The link between poverty and economic empowerment of women should be addressed through Gender responsive Budgets (GRB).  Identifying good practice in Gender and alternate trade and investment models (eg: Cyprus, Australia, UK etc).  Investment policies need to be based on female values (putting female values into finance).
• The need to increase the rate of women on Boards of State Banks Management, thus ensuring that the specific needs of women entrepreneurs are addressed to increase their participation in economic activity. There is also the need for legal recognition of self-employed separate from employee legislation.
• Addressing obstacles for self-employed women who cannot make full use of social benefits such as maternity and sick leave, who due to the nature of their work  cannot stay way from work for long.
• Strengthening the innovation capacity of SMEs by facilitating access to technology and finance, providing  innovative support services.
• Improving the availability, access (meeting the needs of working mothers) and quality  of adequate training offers for individuals both women and men and the physical infrastructure ( roads and transport) to facilitate access to and by clients.
• Nurturing a national entrepreneurial mindset through the National Curriculum at all levels of education for both women and men to encourage risk-taking, innovation and opting for non-traditional choices, involving companies in training and education schemes.
• Ensuring effective and full use of Community instruments, either for the development of regional infrastructures or to support transitions in sectors affected by structural changes through the European Social Fund (ESF) and the European Regional Development Fund (ERDF) in particular in the Tourism and Manufacturing Industry.
• Strengthening financial mechanisms by making better use of the European Investment Bank  (EIB) in taking part of the risk on the SMEs and to look at ways in which banks in Malta can still further boost the support they provide to SMEs, in particular those run by women, as outlined in the European Commission’s Small Business Act 2008 ((COM(2008) 394 final).
• Organising courses in ICT for small enterprises (such as village groceries, salons etc) to gear them towards setting up ICT facilities to provide facilities for a better service to clients and to reach a wider consumer range.
• Taking the necessary measures to encourage the development of initiatives in the social economy in particular to attract young people to this sector of the labour market.
• Ensuring that priority is given to educational systems at all levels to invest in  future skills for future jobs in areas such as ‘green’ jobs, ICT, environment, health and long term care for the elderly to stimulate the creation of new jobs in small and medium enterprises.
Grace Attard, NCW President, EESC member