In the EU we have 23 million of small medium-sized enterprises (SMEs) providing 79 millions of jobs. It will be explained shortly by the author what the relevant sizes are of defining an SME correctly. 99 % of all enterprises in the EU are SMEs. This means, that they are the backbone of the European economy, acknowledged as a constant source of ideas, innovation, entrepreneurial skills, the principal providers of existing jobs and the main source of new employment. But as they only have limited human and financial resources, they often are caught in their particular environment and are not able to expand their business to other countries. This means, that they can not act internationally like all the big and global oriented companies. Things like bureaucracy burdens, getting their innovated products duplicated by the big companies, not having the knowledge about opportunities to enter new markets, lack of finance, etc. are making it very hard for them to survive. And making the step from local to international, national or even regional can turn out in big issues as well. That’s why the European Commission has already done and will do even more in future to protect Europe´ s SME economy and support them to get bigger and prosper. When SMEs are growing they will be able to provide more jobs and therefore our economy will be able to keep pace with the dynamic economy of the 21st century. Policy needs to provide the right business environment. They have to improve the framework in which SMEs operate. The Policy has to focus on helping the different types of small business thrive and prosper, whether they are start-ups, high-growth companies, traditional family firms, artisans or professionals working by their own.
Inhaltsverzeichnis (Table of Contents)
- 1 Introduction
- 2 Considering quantitative definitions
- 3 Considering qualitative definitions
- 4 Why is it so important to support SMEs?
- What are the differences between SMEs in advanced market economies and SMEs in emerging market economies and countries in transition?
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper investigates the role of central and local governments in fostering an entrepreneurial culture. It provides an overview and evaluation of government actions aimed at supporting Small and Medium-sized Enterprises (SMEs) in the European Union (EU), the United Kingdom (UK), and specific regions of the UK. The main objective is to understand the challenges and opportunities facing SMEs in the context of economic development and explore how government interventions can facilitate their growth and competitiveness.
- The importance of SMEs for economic growth and job creation
- Challenges faced by SMEs, including limited resources, bureaucracy, and competition from larger firms
- The role of government in supporting SMEs through policies, programs, and infrastructure
- Comparative analysis of SME support systems in different regions and countries
- The significance of entrepreneurial skills and a strong entrepreneurial culture for economic prosperity
Zusammenfassung der Kapitel (Chapter Summaries)
- 1 Introduction: This chapter introduces the importance of SMEs in the EU economy, emphasizing their role in job creation and innovation. It highlights the challenges SMEs face in expanding their operations and competing with larger companies. The chapter outlines the need for government support to foster an enterprise culture and enable SMEs to thrive.
- 2 Considering quantitative definitions: This chapter explores quantitative definitions of SMEs based on factors such as number of employees, turnover, and balance sheet total. It provides a historical overview of different definitions used in the UK and EU, highlighting the evolution of the criteria for classifying businesses as small or medium-sized.
- 3 Considering qualitative definitions: This chapter examines qualitative definitions of SMEs, focusing on characteristics such as independent management, ownership, and market share. It presents different models for defining small businesses based on features that distinguish them from larger corporations.
- 4 Why is it so important to support SMEs?: This chapter outlines the crucial role of SMEs in economic development. It emphasizes their contributions to job creation, market flexibility, diversification of economic activity, and regional development. The chapter discusses the impact of SMEs on countries in transition and the importance of government support for their continued growth.
Schlüsselwörter (Keywords)
Key terms and concepts explored in this paper include Small and Medium-sized Enterprises (SMEs), entrepreneurial culture, economic development, government support, job creation, innovation, bureaucracy, internationalization, market economy, emerging markets, countries in transition, and the Bolton Report.
- Quote paper
- Nina Rakowski (Author), 2006, An overview and evaluation of government actions on SMEs in the EU, the UK and specific regions of the UK, Munich, GRIN Verlag, https://www.grin.com/document/67684
