The report by Edit HERCZOG (PES, HU) also calls for mandatory, systematic and targeted impact assessments for SMEs, known as an ‘SME test’. The SME test should apply to all new proposals for EU legislation affecting business including simplification of existing legislation and withdrawals of pending proposals, the report says, and Member States are encouraged to introduce similar SME tests at national level.
Moreover, MEPs stress that common commencement dates for new Community legislation affecting SMEs should be introduced and that red tape must be cut by at least 25%.
Better conditions for transferring family businesses
Member States' taxation system can be a deterrent to the transfer of businesses, in particular family businesses, increasing the risk of liquidation or closure of the company, say MEPs. Therefore, they call on Member States to review their legal and fiscal framework "carefully" to improve the conditions for transfer of businesses, especially in cases of owner retirement or illness.
A harmonised time limit for payments
One in four cases of failure of SMEs is due to late payments, in most cases on the part of public administrations, the report says. MEPs are worried that the present credit crunch may disproportionally affect SMEs as larger customers put pressure on smaller suppliers to grant extended payment terms.
Parliament therefore welcomes the Commission’s proposal to review the directive on combating late payment in commercial transactions, and calls on the Member States to improve the payment culture in their public administrations. It urges the creation at Community level of a harmonised time limit for payments, possibly shortened for payments to SMEs, and penalties for exceeding this limit.
Swift agreement on Community Patent
Small businesses need support to access intellectual property rights protection, uphold these rights and also use their IPR to attract finances, stress MEPs. They call for "a swift agreement (...) on a Community Patent ensuring low-cost, efficient, flexible and high-quality legal protection, adapted to the needs of SMEs", as well as on a harmonised European patent litigation system.
Further measures
Other measures proposed by the House to promote small businesses in Europe include:
- setting up a "statistics holiday" for micro enterprises, granting them temporary exemptions from mandatory statistical surveys.
- work-based vocational and occupational (re)training and lifelong learning programmes specifically tailored to SMEs’ needs, co-financed by the European Social Fund.
- using e-procurement.
- advance payment as general practice for all public procurement contracts.
- including the promotion of self-employment, entrepreneurship culture and business awareness in national educational curricula.
