The goal of EU enterprise policy is to enhance corporate vitality, improve industrial competitiveness, and promote employment and economic development, with a core focus on supporting small and medium-sized enterprises (SMEs). Enterprise policy generally falls under the jurisdiction of member states; EU institutions primarily play a role in coordination, promotion, and fostering convergence in this area. The means employed include financial support, the publication of research reports, and the promotion of mutual learning and exchange among member states. Article 157 of the Treaty establishing the European Community states: "The Union and the Member States shall ensure that the conditions necessary for the competitiveness of the Union's industry exist," and "shall encourage the creation and growth of undertakings, particularly small and medium-sized undertakings." This clause serves as the legal basis for EU enterprise policy.
1. Overview of EU SMEs
According to the definition by the European Commission, enterprises with fewer than 250 employees, an annual turnover not exceeding 40 million euros, or an annual balance sheet total not exceeding 27 million euros, and which are not owned by one or more enterprises (that are not themselves SMEs) holding 25% or more of the capital or voting rights, are classified as SMEs.
SMEs hold a pivotal position in the EU economy. As of 2005, there were approximately 20 million enterprises of various types in the EU, of which 99.8% were SMEs, and 91.8% had fewer than 10 employees, known as micro-enterprises. The turnover generated by SMEs accounted for 57.5% of the EU total.
2. Policies to Support SMEs
In June 2000, the EU adopted the "European Charter for Small Enterprises" and formulated the 2001-2005 Multiannual Programme for Enterprise and Entrepreneurship, as well as national reform programs for each member state. The policies of the EU and its member states to support SMEs mainly include the following aspects:
【Financial Support】EU financial support for SMEs is mainly provided through the European Investment Bank (EIB) and the European Investment Fund (EIF). The EIB is the development bank of the EU; 90% of its funds are used for projects in underdeveloped regions of the EU, and the remaining 10% are used for Eastern European countries or developing countries associated with the EU. The EIB indirectly raises funds for SME investment through "global loans," which are loans provided by commercial banks responsible for researching SME projects based on the EIB's guidelines. Since 1990, the EIB has provided financing to more than 45,000 SMEs. Nearly 45% of these funds involve the industrial and service sectors, with over 80% of the beneficiary SMEs having fewer than 50 employees, and 97% having fewer than 250.
The European Investment Fund supports SMEs in two forms: first, loan guarantees, with a total amount of up to 8 times its subscribed capital, i.e., 16 billion euros; second, guaranteeing environmental loans through the "Growth and Environment" pilot project. The guarantees from the European Investment Fund enable SMEs not only to obtain loans but also to benefit from lower interest rates.
In November 2006, the European Commission's Directorate-General for Enterprise and Industry released a new policy document on "EU Support for SMEs," further clarifying the methods of financial support for SMEs as a guide for future policy. According to this document, EU funding for enterprises is divided into four categories: specific grants, structural fund support, financial instruments, and support for the internationalization of SMEs.
【Ensuring Free Movement and Regulatory Consistency in the Internal Market】According to the Treaty establishing the European Community, the European Commission's Directorate-General for Enterprise and Industry is responsible for supervising the free movement of goods within the internal market and the policies and standards of member states that affect enterprises, to ensure that enterprises receive equal treatment in any member state while reducing the administrative burden of approval on enterprises.
【Helping SMEs Improve Competitiveness】In accordance with the "Lisbon Strategy" and the national reform programs of member states, the European Commission is committed to enhancing enterprise competitiveness through various means, including personnel training, providing market information, and establishing "Business Innovation Centres" to provide SMEs with information, consulting, policy guidance, and legal advice at lower costs.