EU support for SMEs through COSME Brussels, 16 May 2018 Finnish Liaison Office for EU R&I Giacomo Mattinò, Head of Unit DG GROW.H2: Enterprise Europe Network and SME Internationalization
What is DG GROW? (DG Internal Market, Industry, Entrepreneurship and SMEs) 2
Why do SMEs matter? 3
10 priorities of Commission Juncker 4
The EU budget: facts and figures
Main issues for SMEs competitiveness Cross-border regulatory fragmentation and excessive administrative burden for starting a business Lack of entrepreneurship Difficulties in access to finance Significant barriers when doing business across borders inside and outside Europe 6
COSME - General objectives Strengthening the competitiveness and sustainability of the EU's enterprises, particularly SMEs and Encouraging entrepreneurial culture and Promoting the creation and growth of SMEs 7
COSME - Specific objectives
COSME in Practice Policy steering from DG GROW Implementation delegated to: EASME EIF (for Financial Instruments) Possibility for non EU Member States to participate: Albania, Montenegro, FYROM, Iceland, Turkey, Serbia, Moldova and Armenia, Bosnia and Ukraine For the Enterprise Europe Network: possibilities for business support organisations in non-participating countries to associate themselves with the Network
Objective 1: Improving access to finance 1. Debt instrument for SMEs growth: Loan Guarantee Facility (COSME) 2. Equity instrument for SMEs growth Equity Facility for Growth (COSME) Focus: growth-stage VC Example: https://www.youtube.com/watch?v=66qxvp4hft8
EU Financial Instruments: Why? Leverage effect Multiplication of scarce budgetary resources by attracting private resources to finance public policy objectives Institutional know-how EU can use the resources and specific expertise of local financial intermediaries Policy impact Effective way of delivering on policy objectives, financial intermediaries pursue EU policies Only economically viable projects are supported No market distortions
EU Financial Instruments in practice
Loan Guarantee Facility Support for transactions which otherwise would not have taken place (e.g. perceived higher SME risk, insufficient collateral across all sectors) Guarantees to financial intermediaries for newly generated SME financing portfolios Status (mid 2017): 75 intermediaries in 25 countries EUR 10.4 billion of financing provided 237,000 SMEs supported, out of which 50.5% start-ups
Equity Facility for Growth Investments into Venture Capital funds which target SMEs in their growth and expansion phase on a cross-border basis and/or help SMEs to internationalise Investments in early stage enterprises in conjunction with the 'InnovFin Equity Facility' under Horizon 2020 Status (mid 2017): 12 fund agreements signed, including 2 funds targeting the Western Balkans EUR 148.2 million of investments into 26 eligible final recipients (Expansion & growth-stage SMEs) in 11 countries
Overview of Financial Instruments for SMEs
www.access2finance.eu Your source of information on available EU finance support
Objective 2: Improving access to markets Main Instrument: The Enterprise Europe Network Other tools: SME IPR helpdesks Projects for Internationalization EU SME Center in China SME chapters in Free Trade Agreements Your Europe Portal - Business section
2.1. Enterprise Europe Network (EEN) The world's largest business support network 625 business support organisations 65 countries 3.000 professional advisers All EEN services must have a European dimension & provide EU added value to clients. https://www.youtube.com/watch?v=ad4uzz6wuuy
What the EEN offers: Advice on Single Market EU legislation, standards, overcoming obstacles Advice on Access to finance EU funding, other finance, readiness assessment, how to apply? Advice on new markets in Europe & beyond Innovation services, including innovation management capacity building Key Account Management for SME Instrument beneficiaries Business & technology partnerships Start-up & scale-up advisors + SME Feedback
EEN global presence EU Member States + Albania Iceland Armenia FYROM Montenegro Turkey Moldova Serbia Buss. Cooperation Centres* Russia Indonesia New Zealand Canada Japan Argentina China S-Korea Switzerland United States Brazil Peru Norway India Egypt Mexico Israel Tunisia Singapore Belarus Taiwan Chile Bosnia-Herz. Georgia Paraguay Jordan Ukraine Cameroon full list on: http://een.ec.europa.eu *not funded by EU
EEN Budget: 50 million per year Statistics from Final Evaluation of the impact of the Enterprise Europe Network, 2008-14
Sectoral cooperation between NCPs and the EEN MoUs between NCP CSAs and EEN Sector Groups Task forces Agreed common annual work plans/activities Regular info exchange Inform/signpost SMEs about/to EEN/NCPs e.g. promotion campaign for "weak" H2020 countries Common brokerage events/company missions Trainings Exchange of client profiles een.ec.europa.eu PLACE PARTNER S LOGO HERE
EEN - Vision beyond 2020: Mission of the EEN to help European SMEs innovate, grow and scale up in the Single Market and internationally Vision for 2025 to achieve high impact for our client businesses for the regions in which they operate and for Europe to create connections to lead markets, lead customers finance and innovation partners and to be acknowledged as the global business support network of excellence een.ec.europa.eu PLACE PARTNER S LOGO HERE
This means evolving along four broad lines: 1. Client centric approach: moving to a hub and spoke model 2. Providing better quality services 3. Stronger positioning and visibility of the EEN 4. Responding to new developments and policy priorities een.ec.europa.eu PLACE PARTNER S LOGO HERE
2.2. SME IPR Help Desks Helps SMEs to protect and enforce their IP rights in China, Latin America and Southeast Asia Provision of free information and services Jargon-free, first-line and confidential advice on IP issues, to protect IPR notably during exhibitions and fairs 25
2.3. Projects for Internationalization Pilot project to support European SMEs going abroad and become active 5 target markets: Canada, USA, Chile, Cameroon, India SMEs having no previous internationalisation experience will be provided with relevant tools 80 companies selected Training, coaching programme, matchmaking activities and brokerage events in 5 countries 26
2.3. Projects for Internationalization "Maximising matchmaking experience at trade fairs around the world" Organisation of EU -Third Country B2B, C2C and C2B events at the occasion of Major International Fairs Example: TEXWORLD 2017 Paris 27
2.3. Projects for Internationalization EU Gateway Business Avenues Targeted business missions in China, Korea, Southeast Asia and Japan 8 key sectors targeted 50 companies per business mission Coaching and new business contacts during pre-arranged meetings with potential partners 28
2.4. EU SME Centre in China First line advice for SMEs wishing to develop their presence on the Chinese market Numerous international exhibitions & fairs attended, supporting Member States' stands (e.g. Shanghai in 2016, GENERA in Madrid in 2017) Member of North and West China Enterprise Europe Network Business Cooperation Centre 29
2.5. SME chapters in Free Trade Agreements Several FTAs about to be implemented or under negotiation (with Canada, Vietnam, Singapore, Japan, Mercosur, Indonesia, Philippines) Modernisation of existing FTAs (Mexico, Chile ) Dedicated SME provisions to be inserted in all FTAs Objective: to allow SMEs to fully benefit from new business opportunities offered FTAs are not only for big guys! 30
2.6. Your Europe Portal Business section Information on rights, obligations and administrative procedures business relevant chapters (eg. taxation, product requirements, environmental rules) access to online government services For businesses looking to do business in another EU country www.youreurope.eu 31
Objective 3: Improving framework conditions for businesses Reducing administrative burden, supporting smart regulation & SME policy Stimulate development of certain markets/sectors Examples: Better regulation platform, SME envoys' network Clusters go international, Collaboration platform Tourism industry, Digital economy Blueprint for sectoral skills
Objective 4: Promoting entrepreneurship Developing entrepreneurial skills and attitudes (especially among new entrepreneurs, young people and women) Creating mentoring schemes Promoting social entrepreneurship Examples: Erasmus for Young Entrepreneurs - www.erasmus-entrepreneurs.eu European Entrepreneurship Education Network EE-HUB Entrepreneurship Education Peer-Learning workshops
Erasmus for Young Entrepreneurs EU Exchange programme for entrepreneurs from the EU Member States and 13 additional countries (also USA, Israel, Singapore) 1-6 months exchanges for a new entrepreneur with an experienced entrepreneur abroad Opportunity to exchange knowledge business ideas contacts experiences https://www.youtube.com/watch?v=kdsc1shbc1q
Erasmus for Young Entrepreneurs Benefits for entrepreneurs
Erasmus for Young Entrepreneurs Key results Between 2014 and 2016: over 2100 participants have created 241 companies and over 1000 new jobs 55,5 million EUR in 9 Calls 5.700 exchanges (i.e. 11.400 entrepreneurs involved) 15.000 entrepreneurs registered in the database (leading countries: IT, ES, UK, DE, RO) 176 intermediary organisations in 30 countries
Thank you for your attention! DG GROW.H2 giacomo.mattino@ec.europa.eu 37