SMEs adapting to global markets

Gist of the opinion

The Opinion lays out eight recommendations to guide actions to support SMEs in adapting to global market changes.

Recommendation 1: Respect Entrepreneurs, their right to take decisions and their need to bear the consequences of these decisions. Business support should assist entrepreneurs in tackling global market changes but must not substitute either the entrepreneurial decision itself nor shield the entrepreneur from the risk derived from the decision.

Recommendation 2: Reduce barriers to trade. Pursuing open markets, enforcing global trading standards and maintaining the Internal Market, remain the most effective ways of supporting exporting SMEs.

Recommendation 3: Encourage trade competitiveness through raising quality. The benefits of respecting European standards and of full participation in quality enhancing programmes, need to be made known in marketing campaigns in third countries. At the same time, it should be stressed that respecting EU standards is a condition for importing goods and services into the EU.

Recommendation 4: trade policy must "Think Small First". If partnerships are to be developed to deliver market access, SMEs need to be coordinated more closely to match the complex process of trade negotiations.

Recommendation 5: Tailor Policies to SME needs. There is a divergence between the experiences of SMEs of obstacles to internationalisation and the perception of these obstacles by policy makers. Support needs to be delivered through local and national intermediaries that are familiar with SMEs and in practical and accessible forms.

Recommendation 6: Support SMEs through their workers .The aim is to ensure that SMEs are able to draw upon a skilled and committed workforce in the labour market.

Recommendation 7: Networks matter to SMEs especially as they become global. Networks provide opportunities for SMEs but also present specific problems related to intellectual property and dominating customers which can be better addressed through a sectoral approach.

Recommendation 8: Innovate and Evaluate. Policy makers need to innovate in the real economy. Policy has to respond quickly to new challenges, be evaluated on sound quality evidence and engage with representative stakeholders to learn from success stories and changes in performance.