European SME Policy

Though the Small Business Act of 2008 drew attention to the needs of SMEs, it applies primarily to start-ups and small enterprises. The subsequent European economic crisis brought start-ups and established SMEs further into the focus of policymakers in Brussels, who entertained great hopes for them as creators of new jobs. Nevertheless, a glance at the still high agricultural spending in the EU budget shows only too clearly how far off the radar the interests of SMEs continue to be. Particularly problematic is the EU’s insistence on regarding larger family businesses with at least 250 employees or 50 million euros in turnover as large companies and treating them like large corporations. A systematic EU SME policy would reduce the burden of red tape and include family businesses which have outgrown the EU’s definition of an SME. Moreover, EU policymakers should recognise the potential role of small and medium-sized manufacturing companies in fulfilling their aim of expanding manufacturing industry in Europe by 2020.