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The European Commission discussed about how to shape a strategy aimed to the growth the potential and competitiveness of small enterprises (SME). Key elements agreed are:

• Making it possible to start a company in 3 days for less than €100;
• Increasing access to finance and public procurement and reducing bureaucracy;
• Introducing an SME-friendly test for all new legislation at EU and Member State level. For this purpose, the European Commission and all Member States should introduce a specific SME test before any legislation is adopted.

The test should ensure that no new obstacles arise that could hamper the smooth running of Europe’s 25 million small businesses. Twelve countries have already made the SME test a reality, and several more are in the process of introducing it. The SME Envoys agreed to implement the above measures in all Member States by September 2012. With these measures Europe is actively strengthening the position of SMEs, which are widely viewed as critical to restoring economic growth.

A survey on the application of the SME test in the EU Member States was carried out by the European Commission in the beginning of 2011. Replies were obtained from all EU Member States via the national SBA contact points.

Slightly less than half of all EU Member States report that they already apply the SME test (44,4%). Malta, Slovenia and the Slovak Republic are in the process of setting it up. Remaining Member States report not to apply a specific SME test at the moment, most often as SMEs are already accounted for in regulatory impact assessments. In four EU Member States, discussions are currently on-going on the political level with the aim of introducing the SME test.

A large share of the EU Member States considers that the SME test has a policy impact and real value added for SMEs in their country. The main benefits brought forward include:

• The SME test contributes to better regulation as disproportionate costs laid on businesses can be avoided;
• The SME test gives small firms time and money to adapt their businesses; and
• The SME test renders impacts clearer and mitigating measures easier to identify.

Summing up, there seems to be considerable variations between Member States in terms of the consistency and quality of the SME tests carried out and a strong case for moving the SME test implementation forward in the European Union but the first results are encouraging.

The European Commission is committed to support a strong SME test in the EU Member States and is now evaluating how the members states’ proposals could be further developed.

NB: This summary is only for information and is not designed to interpret or replace the reference document, which remains the only binding legal text. Source: http://europa.eu

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