Competing in the Single Market - SMEs and ... - Erhvervsstyrelsen

APPENDIX IV:Summary of the Panel session at the Baltic Development Forum Summit, Riga, Oct.6, 2003:Competing in the Single Market – the impact of EU Membership on SMEsOne of the important concerns of the new member states in the Baltic Sea Region with regard totheir accession to the European Union is that their SMEs will not be able to capture theopportunities nor cope with the challenges that arise from joining the Single Market.Against this background, the Baltic Development Forum (BDF) and the International Organisationfor Knowledge Economy and Enterprise Development (IKED) gathered representatives frompolitics, academia and the private sector to discuss how to enable a successful transition for SMEsin the New Member States to the Single Market. In particular, the panel discussed the barriers toSME development and how these barriers can be overcome.The panel consisted of an excellent combination of top-level politicians and policymakers,academics, and business people:Meelis Atonen, Minister of Economic Affairs and Communications, EstoniaAndris Denins, Director, BDO InvestPer Eriksson, Director-General, VINNOVAMarian Geldner, Professor, Warsaw School of EconomicsJuris Lujans, Minister for Economics, LatviaJorma Routti, Executive Chairman, Creative Industries Mgt.Thorhild Widvey, Secretary of States, Ministry of Foreign Affairs of NorwayThe session was moderated by Thomas Andersson, President of IKED.The panel agreed on the following overall assessment of the situation for SMEs in theBaltic Sea Region:SMEs are the future agents of economic change, growth and employment and thusof prosperity (one indication of this is the fact that, on average, SMEs account for morethan 50% of total employment and GDP and make up more than 90% of total enterprisesin the Baltic Sea Region).Accession to the Single Market offers great opportunities for sustainable economicgrowth and particularly for SMEs in Lithuania, Latvia, Estonia and PolandA lot is currently being done in these countries to ensure a favourable businessclimate and environment and to promote innovation and enterprise development(This can be seen in the far-reaching economic reforms and policy initiatives but also in thehigh growth rates and the rapid catching up of the Baltic countries and Poland when itcomes to indicators for innovation and ICT use).BUT: Significant challenges remain when it comes to enabling the development ofa critical mass of innovative and internationally competitive SMEs in the Baltic SeaRegion (One clear indication of this is the relatively low number of economically activeenterprises per 1000 inhabitants (in relation to population) and the high rate of uncertaintyamong SMEs regarding the consequences, opportunities, and effects for them of joiningthe Single Market; another indication is the relatively low number of economically activeenterprises in some of these countries).115