BusinessEurope discusses challenges facing Europe's SMEs at Berlin roadshow

Economics
Webp t505ci912jrx74dw1phja6qaudty
Fredrik Persson President | Business Europe

BusinessEurope held its fourth SME Roadshow event in Berlin, Germany, in collaboration with the Confederation of German Employers’ Associations (BDA) and supported by the Federation of German Industries (BDI). The event featured speeches from Roberta Metsola, European Parliament President, and Michael Kellner, German Parliamentary State Secretary and Commissioner for SMEs.

Europe is home to over 25 million small and medium-sized enterprises (SMEs), representing 99% of all businesses and employing more than 88 million citizens. These enterprises have faced numerous challenges recently, including labor shortages and increased energy and credit costs. Additionally, new regulations have compounded these difficulties.

The discussion at the event centered on actions EU policymakers should take over the next five years. This focus aligns with European Commission President Ursula von der Leyen's identification of SME competitiveness as a top priority.

Fabrice Le Saché, Chair of BusinessEurope’s Entrepreneurship & SME Committee, stated: "Today in Berlin, BusinessEurope publishes a roadmap to transform Europe into an SME superpower. This is about ensuring better regulation that genuinely supports SMEs, creating streamlined access to finance, and making sure the green transition empowers SMEs rather than overwhelming them. The EU must also take a more active role in SME governance."

Le Saché also addressed the revision of the Late Payment Directive: "Regarding the revision of the Late Payment Directive, we emphasise that while fostering a culture of prompt payment is crucial, it is equally important to preserve freedom of contract in all B2B relations. We call on Member States and the European Parliament to maintain this flexibility in the upcoming negotiations. If this cannot be achieved, withdrawal of the proposal should be considered."

Steffen Kampeter, CEO of BDA remarked: “The EU legal framework needs to be more manageable for SMEs. A lack of competitiveness often stems from an overly complex regulatory environment. As we face the challenges of a second consecutive year of recession in Germany, it is crucial that we focus on revitalising our economy. Now more than ever we need an environment that encourages SMEs and entrepreneurship. Hosting the SME Roadshow in collaboration with BusinessEurope here in Berlin is particularly timely as small and medium-sized enterprises are the backbone of our workforce employing 55% of population and accounting for 99.3% percent of all German businesses.”