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REPORT (2020/2131(INI))

On a new strategy for European SMEs

A-9-2020-0237

Committee on Industry, Research and Energy · Rapporteur: Paolo Borchia

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✦ In short · AI summary of this text, generated 25 Sept 2026

Written by a language model from the full text only; every figure comes from the text. The paragraph links open the paragraph a statement rests on — check the text itself before relying on it.

Parliament's resolution on a new strategy for European SMEs welcomes the Commission's SME strategy but says it must be updated after the COVID-19 pandemic. It calls for less red tape, better access to finance, support for digital and green transitions, and help for sectors hit hardest by the crisis. It asks for an SME action plan with binding targets to cut administrative burdens by June 2021, a binding SME test on legislative proposals, and a revived Small Business Act. It also wants an EU SME envoy and an annual 'State of the SMEs Union' debate. It urges swift liquidity and re-capitalisation for SMEs, enforcement of the Late Payment Directive, and non-discriminatory bank lending. It calls for Horizon Europe funding for SMEs and support for innovation, digital skills and green practices. It asks for SME-friendly public procurement, a standalone SME chapter in trade agreements, and action against unfair competition. It also calls for support for women entrepreneurs, traditional sectors and social economy enterprises.

Committee position. The committee proposes to update the Commission's SME strategy in light of the COVID-19 crisis, focusing on reducing administrative burdens, improving access to finance, and supporting SMEs in the digital and green transitions. It calls for binding targets, an SME test, and an annual 'State of the SMEs Union' debate.

Key points

  1. Welcomes the Commission's SME strategy but says it must be updated after the COVID-19 crisis and aligned with the industrial strategy, data strategy and European Green Deal.
  2. Calls for an SME action plan with clear objectives, milestones and timeline, and for measures to cut administrative burdens and boost entrepreneurship.
  3. Welcomes the 'one in-one out' principle but says it only maintains the status quo; calls on Member States to avoid gold-plating and on the Commission to set binding targets to cut administrative burdens by June 2021.
  4. Calls for a binding SME test on legislative proposals, better impact assessments, and a Regulatory Scrutiny Board with more external experts and balanced representation of large and small companies.
  5. Calls for a revived Small Business Act, consistent application of 'think small first', an EU SME envoy under the Commission President, and an annual 'State of the SMEs Union' debate in Parliament.
  6. Urges swift liquidity and re-capitalisation for SMEs, enforcement of the Late Payment Directive, and non-discriminatory access to bank lending, including for intangible-asset business models.
  7. Calls for temporary relaxation of State aid rules while ensuring a level playing field, and for future State aid rules to consider SMEs in peripheral and calamity-affected areas.
  8. Urges Member States to protect employment and viable SMEs at risk of insolvency, and calls on the Commission to support transposition of the restructuring and insolvency Directive.
  9. Calls for Horizon Europe funding for SMEs, sector-neutral research and innovation policies, and support for non-digital SMEs and those improving environmental performance.
  10. Calls for digital skills training, digital crash courses, and action to tackle skills mismatches, including for micro-enterprises and women in STEM.
  11. Calls for an enabling regulatory framework and technical and financial support to help SMEs adopt green practices, products and processes, and welcomes circular economy and renovation wave opportunities.
  12. Calls for SME-friendly public procurement, a standalone SME chapter in trade agreements, and use of trade defence instruments against unfair competition.

Who is affected

  • SMEs and micro-enterprises in the EU, which would benefit from simplified procedures, better access to finance and targeted support.
  • Member States, which are asked to implement the Late Payment Directive, avoid gold-plating and support SMEs in accessing funding.
  • The Commission, which is asked to update the SME strategy, set binding targets and simplify EU funding procedures.
  • Sectors hit hardest by the pandemic, such as tourism, hospitality, culture, creative industries, transport and events.
  • Women entrepreneurs, who face gaps in entrepreneurship and access to finance and are targeted by upskilling initiatives.

Figures and deadlines

  • 24 million SMEs in the EU-27, which generated more than half of the EU's GDP and employed about 100 million workers before the pandemic.
  • 98.9% of enterprises in the EU's non-financial business economy are small enterprises with fewer than 49 workers.
  • In 2018 only 40% of companies were paid on time.
  • Women make up 52% of the total EU population but only 34.4% of the self-employed and 30% of start-up entrepreneurs.
  • Several Member States have set quantitative targets of up to 30% for the reduction of administrative burden.
  • Only 17% of SMEs have so far successfully integrated digital technology into their businesses.
  • No more than 600 000 SMEs are currently exporting outside the EU.
  • The EU's definition of SMEs is referred to in over 100 EU legal acts.

Legal basis: Article 3(3) of the Treaty on European Union