Supporting enterprise development and SME in Europe

Small and Medium Enterprises (SME) are the backbone of Europe’s economy: there are 23 million SMEs in Europe representing around 99% of all undertakings, and 57% of them are sole proprietorships. They provide two thirds of total private-sector employment, represent 80% of the total job creation and produce more than half of the EU added value. This article examines the main as well as the latest elements of EU policy and programmes in favour of supporting enterprises and SMEs in particular. It starts by looking at the SME policy framework and then focuses on the financial aid within the EU financial perspectives in 2007-2013 such as the research budget or the structural funds. The article describes the different measures for SMEs in terms of financial instruments and support programmes and services, addressing in each case strengths, weaknesses, trends and possibilities. It also looks at the changes to policies and programmes following the financial and economic crisis.