Strengthening MSMEs' financial resilience/second chance for entrepreneurs

Background

Micro, small and medium enterprises (MSMEs) are the backbone of the European Union economy, comprising 99% of all companies and employing more than 100 million Europeans.

However, MSMEs face a multitude of challenges in navigating the evolving regulatory environment, especially at a time of prolonged economic and geopolitical uncertainty. This own-initiative opinion from the European Economic and Social Committee focuses on these challenges and the ways in which the EU could offer better and more targeted support to MSMEs.

The opinion covers a broad range of regulatory issues relating to MSMEs, including reporting obligations, access to investment finance, administrative burdens, financial compliance and tax burdens. It calls for more robust and specific EU support mechanisms aimed at strengthening MSMEs' financial resilience, and it backs efforts to strengthen the principle of the 'entrepreneur's second chance' following a business failure.

 

Key points

The EESC recommends:

  • taking measures to strengthen the investment capacity of MSMEs so that they can finance the innovation at the heart of the green and digital transitions. Funding could come from the InvestEU SME window and from EU regional funds;
  • prompt adoption of the Late Payments Regulation;
  • developing data analytics, AI and machine learning tools to improve the early detection of MSMEs' financial distress;
  • reducing SMEs' reporting obligations even further than the planned 25% going forward;
  • a full assessment of the barriers that entrepreneurs in Europe face after a business failure.

Link to full opinion

 

Additional information

EESC section responsible: Single Market, Production and Consumption (INT)

Opinion type: Exploratory opinion

Rapporteur: Mira-Maria DANISMAN (Employers – FI)

Date of adoption by section: 03/10/2023

Result of the vote: 41 votes in favour and 0 against, with 0 abstentions.

 

Contacts

Daniela MARANGONI

Press officer

Tel.: + 32 2 546 8422 | Mob: +32 475 99 94 32

email: daniela.marangoni@eesc.europa.eu

 

Dalila BERNARD

Policy officer

Tel.: +32 2 546 8438

email: Dalila.Bernard@eesc.europa.eu