In recent years, the EU has been increasingly pushing for SMEs to operate outside their national borders. In order to encourage such practices, European businesses have the possibility to opt for financial support from the EU.
Access to funds depends on the needs of the SME in question, as does its eligibility for indirect or direct funding by the EU. Having proper access to EU funds is indeed an important component for Maltese businesses within the internal market.
EU membership has allowed Maltese businesses to have access to the EU´s internal market, which is composed of over 500 million inhabitants. These people provide a huge market for Maltese business and commerce. Apart from this, eurozone membership has also helped reduce transaction costs for businesses due to the use of a common currency.
Although the level of businesses’ economic potential is very significant, some Maltese and other EU SMEs still face both internal and external difficulties. Such difficulties hinder their success and the positive impact they could have both at a national and an EU level. In response to this, EU programmes have been created to provide funding and support to European businesses in the hope that economic growth and entrepreneurship in the EU will be boosted as a result.
Since having better access to funds entails that the competitiveness levels of Maltese SMEs can be further enhanced, one must make sure to address issues such as bureaucracy or excessive regulation. In this manner, even new Maltese businesses can enter the internal market through smoother procedures.
For instance, the COSME programme is specifically intended to facilitate and improve access to finance for SMEs. COSME also targets red tape to facilitate the establishment of businesses and facilitate their operations. With this programme in place for the next seven years, €2.02 billion will be available for SMEs and entrepreneurs. These funds are intended to alleviate financial constraints for all types of SMEs, ease market access and reduce administrative burdens.
Supporting businesses through more funding can help increase the EU’s competitiveness as a whole
The European People’s Party has been a leader in the negotiations leading up to this programme. This is because ensuring support for businesses is a priority for the group. The main understanding that SMEs are the engine for both job creation and economic growth has triggered the EPP´s efforts to promote such programmes.
On the other hand, Horizon 2020 is a financial instrument designed for SMEs and citizens interested in research and development. One of the overarching objectives of this framework is to have less bureaucracy and a faster and more efficient access to funding.
Maltese businesses can also make use of other tools such as the Small Business Portal, which provides further information on available funding and provides guidelines on how businesses can apply for such funds.
Supporting these projects and other similar projects is crucial because it will help boost economic growth, reduce youth unemployment and, therefore, improve Europe’s future economic potential.
Apart from facilitating access to financial support programmes, one must also ensure that there is always funding available for SMEs and new businesses. This is a key point which the EPP has always pushed for.
Supporting businesses through more funding can help increase the EU’s competitiveness as a whole. The role that businesses play within EU economics is therefore a crucial one.
In the European single market, Maltese companies can freely operate across borders.
Being part of the EU and having access to its internal market, which includes some of wealthiest countries worldwide, has widened the opportunities available to Maltese businesses. This has come as a result of the ongoing efforts by the European Parliament and other EU institutions which ensure that funds are available so that business can remain innovative and competitive.
David Casa is a Nationalist MEP.