European SME Policy for Belarus

1. 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

2. 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

3. 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

4. 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

5. 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 National Competitiveness

6. 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 10 000 GDP per capita to double GDP in next decade to
overtake todays level of Montenegro, Bulgaria and reach Romania and Croatia SME
requires all sector of the economy to reach the regulatory quality, stability and density
to safely invest in and the rule of law and the market size only EU regulatory
framework 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 – but how to get it without EU Accession perspective?
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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Cooperation I - European SME policy
requires a EU regulatory framework

7. 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…

8. 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
Why it matters for the next level
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www.flattax-europe.eu
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Why Europe matters for SMEs? II

9. 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

10. 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
SME PPD Public Private Dialgue
Towards a Belarus SME National
Consensus on SME Competitiveness
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Cooperation II – Create Consensus on
SMEs Jobs, Growth, Prosperity

11. 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

12. 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

13. 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

14. The European SME Institutional
Infrastructure
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Developing the SME Infrastructure

15. Trade Association in Sectors
National SME Policy PPD Platforms
SME Clusters & SME Value Chains
National Producer – Retailer – Consumer Dialogue
SME Nucleus – Mini Clusters and Start Up training – Skills Set
SME Segment focus on Women, Youth, Migrants, Minorities
Regional Cohesion and Disparities
For this see EU and OECD SME Policy Index
But! - Focus on improving SME sector and issue cooperation but avoid collusion,
price fixing, cartels and oligopoly, insider access, cornering markets and occupied
access and opportunities of state –public by political connected
Establishing the balance between Competition and Cooperation right is not easy but
essential for success, growth and SME based broad middle class participation in
economic and society
SME Cooperation Instruments and tools
Value Chain, Clusters and Networks and
Association
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Cooperation III
Cooperation between SMEs –
but based on competition not collusion

16. Treat Land, labor and Capital better – and much better then in region – low tax
rates, 10% ,Corporate and Income- focus on VAT, Property tax for revenues tax
only distributed profit taxed- excellent,
Open Labor market for neighboring countries, decrease labor related social
charges and pension costs, flexible labor market rules
Doing Business – e-Gov – e-SME – Use Digital Transformation
European Kataster and e-construction permit Open Land Market
SME Institutional Framework – The Austrian model
Power to Regions – Power to SME
EU SME Policy based on WTO Membership, CEFTA and SEE and CBC
A European SME Policy Reform and SME Competitiveness Consensus
SME Policy Based on fully enforced European Competition Regulation
Now for the second level of European Economic
Development
Treat labor, capital and land decently
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6 Central Success Factors
Triple Competition and Triple Cooperation

17. 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
Key links every SME stakeholder in Belarus
needs to know
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European SME Links

18. www.flattax-europe.eu
gfehlinger@gmail.com
https://www.facebook.com/gunther.fehlinger.3
SME Regional Position Paper EaP
2017
http://www.eu4business.eu/files/medi
as/regional-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
SME -Balance Competition & Cooperation
Please see the ETR –
The Road to Growth for Ukraine
Online at