The SME Assembly in Cyprus revealed some interesting information about the methods which the European Commission is using in order to attract more investors to SMEs and to increase the importance of these businesses.
Currently, there are over 23 million SMEs operating in Europe and each one of them is looking for different funding options in order to develop further. These enterprises are an important part of Europe’s economy as they are one of the most sustainable sources of employment.
It is the European Commission’s job to make sure that there are enough initiatives, polices and projects to stimulate the growth of SMEs. This is why they gathered together delegates from each European country in order to discuss their future plans with them.
The annual SME Assembly is hosted in Cyprus due to it being the current presidency of the council of the European Union for the second half of 2012. The event lasted for two days and it saw discussions and projects from delegates from the entire European Union. There were a lot of interesting plans goal is to expand SMEs in certain undeveloped cities and regions.
In Europe, SMEs are classified as independent companies with no more than 250 employees. Currently, SMEs are responsible for two thirds of the job spots in the private sector and 85% of the newly created job spots.
The European Commission’s yearly figures show that SMEs are responsible for 67% of employment in Europe and 58% of the gross value in the region. A comparison between SMEs in Europe and the UK, shows that the UK’s economy is more bias towards larger companies. The number of SMEs has reduced by 15 percent over the past several years, but the number of micro businesses has slightly increased during the same period of time.