The "Small Business Act" for Europe was adopted by the European Commission on 25 June 2008. It is the European Commission's ambitious plan to address the needs of Europe's small and medium-sized businesses. Its objective is to make Europe more entrepreneurial and help its businesses thrive as it improves framework conditions for SMEs while taking full account of their diversity. Compared to it's US counterparts, European SME's show lower growth figures and they are less innovative.

SME's are facing difficulties to attract (venture) capital according the EC

According the EC, one of the reasons is the difficulties SME's are facing to attract (venture) capital, as especially the European investment market between the € 100,000 - € 1 million is fragmented and inefficient. Under the SBA, programmes will be facilitated that grant fiscal advantage to investors that make "mezzanine financing" more attractive.
 
Günter Verheugen, European Commission Vice-President, responsible for Enterprise and Industry:  "now is the time, once and for all, to cement the needs of SMEs in the forefront of the EU's policy. The SBA brings the full weight of Europe behind SMEs - enlisting all the resources of Europe to help small business in their daily business and to clear the path for those that want to create more jobs and grow in Europe and beyond." 

The Small Business Act comprises a set of 10 common principles to guide SME policy as well as a number of proposed actions to translate the principles into practice. It focuses on promoting entrepreneurship, anchoring the Think Small First principle in policy-making and supporting SMEs' growth. The implementation and monitoring of the Small Business Act will be ensured by the Commission and Member States, within the Lisbon Strategy for Growth and Jobs. 

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Andre Maljaars