EaP SMEs Learning from and with SEE Belarus the richest of EaP - PowerPoint PPT Presentation

European SME Policy for Belarus Based on Public Private Dialogue SME & PPD Workshop Minsk 2nd March 2018 EaP SMEs Learning from and with SEE 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 www.flattax-europe.eu 1 2/27/2018

SMEs provide Jobs, Growth, Prosperity SME Policy – the right balance between Competition and Cooperation Competition I between Countries – Competitiveness of nations 1. Competition II between Regions inside for investments and locations 2. Competition III between SMEs based on a regulated and rule bound market 3. economy and a level playing field and equal access to public opportunities Cooperation I between Nations and Economies – WTO, Free Trade 4. Agreements, Economic Integration, Regional Cooperation, Cross Border Cooperation Cooperation II National SME Economic Policy Dialogue - PPD 5. Cooperation III SME Value Chain, Trade Association, Cluster, Incubator 6. www.flattax-europe.eu 2 2/27/2018

SMEs provide Jobs, Growth, Prosperity Fair Competition based on Rules The essence of SME policy is Competition and Equal Access to Public Assets, Budgets and Information 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 www.flattax-europe.eu 3 2/27/2018

Power to SMEs – Power to Regions SME Competing for SMEs A SME Bank on National Level A SME Policy Agency on National Level Regional SME Development Agencies 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 www.flattax-europe.eu 4 2/27/2018

Repeating the SME Growth Miracle Focus on SME Competitiveness The SME Growth miracle - of Austria in 1960ies, CEE in 1990ies, SEE in 2000, Balkans now, and now in EE Do not fall in trap of following some Western European 1. economic model of 2018 – you will end like Greece Germany and Austria of the 1960ies 2. Slovakia and Estonia of 1990ies 3. Croatia and Bulgaria 2000 4. Macedonia and Montenegro 2010ies 5. Western Balkans in EU accession trajectory 2025- 2029 6. Focus on Regional Competitiveness Tax, Costs, Location, 7. Quality, Infrastructure, Skills, Openness www.flattax-europe.eu 5 2/27/2018

Cooperation I – Trade Belarus, join WTO & SEE Regional Cooperation The SME Growth miracle – in a stable framework of European SEE regional cooperation mechanism 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 www.flattax-europe.eu 6 2/27/2018

European SME policy requires 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 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 www.flattax-europe.eu 7 2/27/2018

Why Europe matters for SMEs…Let us discuss the most crucial issue SME access to finance… SME Access to Finance The key for growth 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/ www.flattax-europe.eu 8 2/27/2018

Why Europe matters for SMEs… SME Access to Finance What is matter for the next level 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 9 2/27/2018 www.flattax-europe.eu

SMEs Jobs, Growth, Prosperity Cooperation SME PPD Towards a Belarus SME National Consensus on SME Competitiveness 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 www.flattax-europe.eu 10 2/27/2018

THE SME Regional Position Paper2017 http://www.eu4business.eu/files/medias/regional-position- paper_final_kyiv-21-june-2017-2_0.pdf National SME Consultation Competitiveness Consensus Council 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 www.flattax-europe.eu 11 2/27/2018

Building the SME Consensus THE Belarus SME YEAR Developing the SME Consensus broad Multi Stakeholder Coalition based 6 thematic SME campaigns every year 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 www.flattax-europe.eu 12 2/27/2018