Opening Speech to the follow-up Seminar

of concerted actions 2&3

"Boosting SMEs through the Internet"

[VIDEO]

By Christos PAPOUTSIS

Member of the European Commission

Responsible for Enterprise Policy,

Distributive Trades, Social Economy and Tourism

 

February 8, 1999

PARIS

Ladies and gentlemen,

 

Welcome to the follow-up Seminar of concerted actions 2&3 "Boosting SMEs through the Internet".

The work you will undertake in these two days is important because it will contribute to the exchange of experience in the use of the Internet by both SMEs and business support organisations. This seminar follows on from the Forum meeting in Baden/Vienna, which took place last September and which launched the process of examination of best practices in the growth phase of SMEs.

This seminar is, in addition, addressing the main objective of the Commission’s Concerted Actions with respect to SMEs. That is to increase the efficiency of Member State actions in the improvement of the business environment, and in the stimulation of business support measures through sharing experiences and identifying best practices.

Let us firstly look at some characteristics of European SMEs

European SMEs account for over two thirds of the European workforce, and therefore play a central role in the creation of new job opportunities. They are also vital for the growth of the economy.

However, studies have shown that, out of a total of 25% of SMEs with a potential for rapid growth - only 10% of enterprises in reality meet this goal.

It is clear that the full potential of our SMEs is not being achieved and we have to ensure that more appropriate support mechanisms are developed.

Internet is an important tool for SMEs in all sectors. At the same time, the information and communications industries are growing more than 5 percentage points faster than the other sectors, in real terms, effectively driving total economic growth in the EU by more than 15%. This sector therefore offers great opportunities for the development of all businesses and particularly SMEs and the creation of new companies. It allows companies to access global markets.

According to a recent survey carried out on behalf of the European Commission on "The information needs of European SMEs and the Internet", only about half of the companies employing between 10-50 persons are now making use of the Internet.

At the same time, their use of the Internet is primarily for the exchange of messages and the retrieval of information. Less than half of the current SME users have made a more proactive use of the Internet by designing their own web sites – something that would help to promote their products and services.

 

It is clear, that we need to help European SMEs reach their full potential. This age of rapid technological developments provides opportunities for growth that should not be missed.

In the European Commission we have been very active in the promotion of electronic commerce and the development of SMEs. I would like to present to you some relevant recent actions in this field:

 

First of all, we launched an Internet based one-stop-shop, which is specially designed for SMEs. Companies can use this practical and accessible tool free of charge, in order to obtain concrete answers to questions relevant to them. It is a major source to data, advice and information.

The one-stop-shop offers, for example, direct access to the over 230 Euro-Info-Centres, making it the largest Information network of the Commission. It allows free access to information on calls for tender, as well as to the citizens and SMEs contact points, created by the different administrations of the Member States.

We are also very active in clarifying and simplifying the legal and administrative environment of SMEs. The recent proposal for a Directive on the legal aspects of electronic commerce, contributes to the establishment of a clear framework, and it will allow electronic commerce to benefit from the advantages of the Single Market.

This directive builds upon the framework, which has already been established with respect to issues such as consumer protection, data privacy and copyright. It also removes legal barriers in areas where new problems have arisen, such as on-line contracts and liability issues. It also enhances the protection of consumers by establishing a number of provisions that:

lessen the risk of illegal activities via the Internet,

increase transparency of on-line activities,

provide new guarantees with respect to on-line contractual relations

and promote codes of conduct.

You will have the opportunity at this seminar to hear, in greater detail, the programme of the Commission aimed at increasing SME participation in electronic commerce developments.

Ladies and gentlemen, I believe we can expect some important results from this seminar. It will enhance the exchange of best practice examples in the use of the Internet and the new information and communication technologies for the development of SMEs. These conclusions will allow the different institutions to inform, advise and assist SMEs to grow in the most effective way.

At the same time, we in the Commission will benefit, since we are currently drafting the priorities for the fourth multi-annual programme for SMEs. And, I am sure that your experiences and conclusions will provide further useful input towards this process.

Therefore, I would like to thank the French Ministry of Economy, Industry and Finance for their hospitality, and all the speakers and participants for their contributions and participation.

I wish you all a very successful Seminar.