european sme policy for belarus based on public private...
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Belarus – the richest of EaP Countries
EU SBA and OECD SME Policy Index
Doing Business Belarus Number 38 – Kosovo 40 Ukraine 76
5.000$ GDP –Capita Belarus – like Serbia – Double of Ukraine
How to reach the next level of economic development?
Do you want to reach Poland, Lithuania, Croatia, Romania?
What to learn from the SEE, Balkans, EaP, Ukraine and CEE?
6 Central Strategic Consideration and Recommendations
SME & PPD
Workshop Minsk 2nd March 2018
EaP SMEs Learning from and with SEE
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European SME Policy for Belarus
Based on Public Private Dialogue
1. Competition I between Countries – Competitiveness of nations
2. Competition II between Regions inside for investments and locations
3. Competition III between SMEs based on a regulated and rule bound market
economy and a level playing field and equal access to public opportunities
4. Cooperation I between Nations and Economies – WTO, Free Trade
Agreements, Economic Integration, Regional Cooperation, Cross Border
Cooperation
5. Cooperation II National SME Economic Policy Dialogue - PPD
6. Cooperation III SME Value Chain, Trade Association, Cluster, Incubator
SME Policy – the right balance between
Competition and Cooperation
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SMEs provide Jobs, Growth, Prosperity
Is Competition Law and its implementation
Anti-State Subsidy, Anti-Monopoly, Anti- Market Power abuse
Openness, transparency, Equality in opportunity and access of State controlled
assets, budgets, concessions, land, information, urban and infrastructure projects
and planning, government data, procurement, taxation, customs, licenses
No matter – big or small, political or personal connected, location in center or
periphery, minority or ethnic or gender or age,
Exceptions only in public interest to support specific groups like women, periphery
regions, specific disadvantaged groups – but again based on clear rules
The essence of SME policy
is Competition and Equal Access to Public
Assets, Budgets and Information
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SMEs provide Jobs, Growth, Prosperity
Fair Competition based on Rules
A SME Bank on National Level
A SME Policy Agency on National Level
Regional SME Development Agencies
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Power to SMEs– Power to Regions
SME Competing for SMEs
Austrian SME Policy is done by Ministry of Economics
https://www.bmdw.gv.at/Seiten/default.aspx
And Investment promotion from ABA https://investinaustria.at/en/ but SME support
Austria SME Financing by Austrian State SME Bank www.aws.at and most SME by
Austrian Regions with 9 different Regional SME Agencies https://www.ecoplus.at/ & https://www.biz-
up.at/ http://www.salzburgagentur.at/ https://www.standort-tirol.at https://www.sfg.at/ https://www.kwf.at/ http://www.wirtschaft-
burgenland.at/index.php?id=17 https://wirtschaftsagentur.at/
SME & Regions
But as well
Regions
competing for
SMEs
1. Do not fall in trap of following some Western European
economic model of 2018 – you will end like Greece
2. Germany and Austria of the 1960ies
3. Slovakia and Estonia of 1990ies
4. Croatia and Bulgaria 2000
5. Macedonia and Montenegro 2010ies
6. Western Balkans in EU accession trajectory 2025- 2029
7. Focus on Regional Competitiveness Tax, Costs, Location,
Quality, Infrastructure, Skills, Openness
The SME Growth miracle - of Austria in
1960ies, CEE in 1990ies, SEE in 2000,
Balkans now, and now in EE
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Repeating the SME Growth Miracle
Focus on SME Competitiveness
Regional Cooperation RCC http://rcc.int/
CEFTA Trade, Investment and SME www.cefta.int
Public Finance Education http://www.cef-see.org/
Public Administration Reform http://www.respaweb.eu/
Entrepreneurship Learning http://www.seecel.hr/
Transport and Infrastructure http://www.seetoint.org/
Anti - Corruption http://rai-see.org/ http://www.ecfr.eu/article/commentary_why_ukraine_should_become_a_balkan_country
The SME Growth miracle –in a stable
framework of European SEE regional
cooperation mechanism
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Cooperation I – Trade Belarus, join WTO & SEE Regional Cooperation
Certainly there are development models in the world without EU or supranational
trade integration but not in EU periphery and not for small and medium economies
To reach the next level of 7 to 9 thousand GDP per capita to double GDP in next
decade to reach todays level of Montenegro, Bulgaria and Romania and Croatia
SME requires all sector of the economy to reach the regulatory quality, stability and
density of safely invest in and the rule of law and the market size only EU integration
provides and offers with a Powerful EU Internal Market based on the four freedoms
and the unprecedented liberalization success from energy to transport etc
And the decisively battle for Competition, Anti Subsidy and Anti Monopoly can only
be won against vested interests in EU context and with EU support and within EU
framework
A EU Framework is required to achieve the next level to ensure
the European Governance, EU Market Access,
European Investment Security and
EU SME Reform and Competitiveness Consensus
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European SME policy requires EU
framework
Financial Education – Business Planning
https://www.ifc.org/wps/wcm/connect/b4f9be0049585ff9a192b51
9583b6d16/SMEE.pdf?MOD=AJPERES
Payment delay and enforcement – Late Payment Directive of EU
– Implementation http://ec.europa.eu/growth/smes/support/late-
payment_en
New SME access models – Leasing, Factoring, Purchase order
Financing http://fitsmallbusiness.com/purchase-order-
financing/
Promotion of e-payment- fight against informality
https://www.betterthancash.org/
SME Access to Finance
The key for growth
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Why Europe matters for SMEs…Let us discuss the most
crucial issue SME access to finance…
SME Focus of Banking Sector
http://ec.europa.eu/growth/access-to-finance_en
Micro Finance System
http://www.ey.com/Publication/vwLUAssets/EY-and-university-
of-cambridge/$FILE/EY-cambridge-alternative-finance-report.pdf
Accounting Reform – Easy Financial Planning
https://ec.europa.eu/growth/smes/business-friendly-
environment/accounting_en
Land and Banking –Kataster and Collateral https://www.land-
links.org/
The accelerating upwards helix of SME growth based on a
proven success trajectory
SME Access to Finance
What is matter for the next level
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Why Europe matters for SMEs…
Deep conflicts in all post communist societies
In deed in all European society about economic and social politics
between Free market, Small Gov, Redistribution, Social Democrats and
most decision makers lack economic background
It is essential to reach a consensus between public and SME community
and media and elite and all stakeholders, trade union and business
association, left and right in politics and keep a dialogue between
stakeholders and social partners active
SMEs are creating jobs, bring growth and ensure prosperity for if not all
so most and their employees and families and consumers
Cooperation SME PPD
Towards a Belarus SME National
Consensus on SME Competitiveness
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SMEs Jobs, Growth, Prosperity
Economic Ministries, Central Bank, Tax & Customs, Land Register
Business Chambers, FDI and Bilateral Chambers, National Associations and
Sector Federations,
BSP like Banks, Insurances, Accountants, Notaries, Lawyers, CMC
Consultants, Consulting Engineers, Export and Certification Consultant,
Quality Infrastructure Experts, Financial and Property Evaluators
Donors and International Projects
Round Table for SME reform progress monthly
National Council under Minister 4 times a year
One Top Level National SME Congress with State President of Prime Minister
present and taking Patronage and receiving the Annual SME Status
Competitiveness Consensus Progress Report
National SME Consultation Competitiveness Consensus
Council
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THE SME Regional Position Paper2017
http://www.eu4business.eu/files/medias/regional-position-
paper_final_kyiv-21-june-2017-2_0.pdf
The European SME START UP WEEK
http://startupeuropeweek.eu/ –February 2018
The European E-Skills for e-SMEs Week – e-Gov in March 2018 eskills4jobs.ec.europa.eu/
The European Week for SMEs and Regional Development May 2018
http://ec.europa.eu/regional_policy/regions-and-cities/#!/home
The European SME Competition Culture Week June 2018
http://ec.europa.eu/competition/index_en.html
The European SME WEEK - Presentation of SME Progress Report 2018
https://ec.europa.eu/growth/smes/support/sme-week_de
The European SME Entrepreneurship Week 2018 http://gew.co/ in November 2018 focusing on entrepreneurship in 5
key SME segments – Youth, Women, Migrants-Minorities, Poor and Periphery
The European SME Vocational Skills Week 2018 https://europa.eu/newsroom/events/european-vocational-skills-week_en
in December
Developing the SME Consensus
broad Multi Stakeholder Coalition based
6 thematic SME campaigns every year
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Building the SME Consensus
THE Belarus SME YEAR
The Ukrainian European E-Skills for e-SMEs Week in 15 March 2017
eskills4jobs.ec.europa.eu/
The Ukrainian European Week for SMEs and Regional Development
The Ukrainian European EU SME WEEK 2017
https://ec.europa.eu/growth/smes/support/sme-week_de
The Ukrainian European Entrepreneurship Week 2017 http://gew.co/ in
November 2017 focusing entrepreneurship in 5 key SME segments
The Ukrainian European Vocational Skills Week 2017
https://europa.eu/newsroom/events/european-vocational-skills-week_en in
December
The Ukrainian European START UP WEEK
http://startupeuropeweek.eu/ –February 2018
The SME Year in Ukraine 2017
will have 6 pillars
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The Ukrainian European SME YEAR 2017
The European SME Institutional
Infrastructure
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Developing the SME Infrastructure
Trade Association
SME Policy Networks
Clusters
Value Chains
SME Nucleus
Focus on improving SME sector and issue cooperation but
avoid collusion, price fixing, cartels and oligopoly
Establishing the balance between Competition and Cooperation
SME Instruments and tools
Value Chain, Clusters and Networks
and Association
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Cooperation between SME but based on competition
Land, labor and Capital – continue excellence in taxation and openness -
tax only distributed profit taxed- excellent, Open Labor market, low labor
related social charges and pension costs,
European Kataster and e-construction permit Open Land Market
SME Institutional Framework – The Austrian model
Power to Regions – Power to SMEs
Doing Business – e-Gov – e-SME
EU SME Policy CEFTA and SEE and CBC
A European SME Policy Reform and Competitiveness Consensus
Now for the second level of European
Economic Development
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6 Central Success Factors Triple Competition and Triple Cooperation
http://ec.europa.eu/growth/smes_en
https://ec.europa.eu/growth/smes/business-friendly-environment/regional-policies_en
http://ec.europa.eu/growth/smes/business-friendly-environment/small-business-act/sme-envoys_en
https://ec.europa.eu/growth/access-to-finance_en
http://ec.europa.eu/growth/smes/business-friendly-environment/small-business-act/sme-assembly_en
https://ec.europa.eu/growth/sectors_en
http://www.oecd.org/countries/belarus/sme-policy-index-eastern-partner-countries-2016-
9789264246249-en.htm
http://www.ueapme.com/
http://www.eu4business.eu/files/medias/regional-position-paper_final_kyiv-21-june-2017-2_0.pdf
Which links every SME stakeholder in Belarus
needs to know
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European SME Links
www.flattax-europe.eu
https://www.facebook.com/gunther.fehlinger.3
http://www.eu4busines
s.eu/files/medias/regio
nal-position-
paper_final_kyiv-21-
june-2017-2_0.pdf
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A SME Focus Belarus – ready for the next
level of European Economic Development