Regional Policy Dialogue Meeting “SMEs in a Green Economy”, 09 March 2018, Paris Session 1, PAVLOVIC Jovana, OECD, Policy Analyst

1. Regional Policy Dialogue
Meeting
“SMEs in a Green Economy”
SME Policy Index: Main Challenges of SME Greening in
the Western Balkans and Turkey
Friday, 9 March 2018
OECD Conference Centre, Paris
Room CC12
Co-funded by
the European Union
1

2.  Measure SME policy
convergence in
non-EU member
countries based
on the principles of
the Small Business Act
for Europe (SBA)
 Assess the design, implementation
and monitoring and evaluation of
SME policies and institutions
 Benchmarking within each policy
area, allows for comparisons across
time
 Fifth cycle launched in 2017
1. Entrepreneurial learning and
women’s entrepreneurship (ETF)
2. Bankruptcy and second chance for
SMEs (OECD)
3. Institutional and Regulatory
framework for SME policy making
(OECD)
4. Operational environment for SMEs
(OECD)
5. SME support services (OECD) and
public procurement (OECD/SIGMA)
6. Access to finance for SMEs (EBRD)
7. Standards and technical regulations
(OECD)
8. Enterprise skills (ETF) and innovation
policy for SMEs (OECD)
9. SMEs in a green economy (OECD)
10. Internationalisation of SMEs (OECD)
SME Policy Index Dimensions
2
The SME Policy Index: Objective & Scope
OECD South East Europe

3. 1 2 3 4 5
9: SMEs in a green economy
1. Entrepreneurial learning and women's…
8a: Enterprise Skills
8b: Innovation Policy for SMEs
2: Bankruptcy and Second chance for SMEs
5a: Support Services for SMEs and Start-Ups
10: Internationalisation of SMEs
6: Access to Finance for SMEs
4: Operational Environment for SMEs
5b: Public Procurement
3: Institutional framework for SME Policy Making
7: Standardisation and technical regulation
2016 WBT average scores per dimension
2012 WBT average scores per dimension
3
Levels
The SME Policy Index 2016: Performance of the WBT
economies per dimension
Level 1: No framework
Level 2: Draft/pilot, some signs
of government activity
Level 3: Solid framework in
place
Level 4: Level 3 + concrete
indications of effective policy
implementation
Level 5: Level 4 + significant
record of concrete and effective
policy implementation
• Regional average at 2.51, a slight increase from 2012 (2.26)
• SMEs in a green economy scored worst -> we are meeting today
OECD South East Europe

4. The SME Policy Index 2016: «SMEs in a green economy»
Performance by economy
4
Weighted scores for dimension 9: SMEs in a green economy, compared to 2012
Source: OECD SME Policy Index 2016
*This designation is without prejudice to positions on status, and is in line with UNSCR 1244 and the ICJ Opinion on the Kosovo declaration of independence.
OECD South East Europe
*
• Turkey was the regional leader: its national SME strategies include environmental
provisions and financial incentives for the greening of SMEs are in place
• The rest: either no clearly defined environmental polices in their SME strategies or
limited concrete actions or targets to meet their environmental goals
Overall comment:
Environmental
policies do not
focus on SMEs in
particular
&
Limited incentives
and instruments in
place

5. the degree of greening of the current
SME, industrial and innovation policy
frameworks & if strategic enterprise and
innovation policy documents cover eco-
efficiency and eco-innovation
• Inclusion in SME strategies
• Existence of sector-specific
policies targeting SMEs
• Functioning of the government
body & Effective co-ordination
with stakeholders
9.1 Environmental policies
targeting SMEs
provision of regulatory instruments and
financial incentives for SMEs to adopt
sustainable practices, government efforts
to promote environmental management
systems
• Regulatory instruments
• Financial incentives
• Environmental Management
System
9.2 Incentives and instruments
The SME Policy Index 2016: Assessment Framework for «SMEs
in a green economy»
Planning
& Design
Monitoring
& Evaluation
Implementation
Planning
& Design
Monitoring
& Evaluation
Implementation
5

6. Main findings (SME PI 2016): 9.1. Environmental policies
targeting SMEs
• Some economies’ national action plans and SME development strategies take into
account SME greening (but this remains at the level of planning)
o Focus on resource efficiency (energy savings, recycling)
• Most economies lack substantive policies to promote eco-innovation among SMEs
o If they exist, they are part of the non-SME related frameworks
• Government capacities to provide advice and guidance for SMEs to meet
environmental issues vary across the region
o Designated body is there, but often with limited staff and funds
o Evidence on the effectiveness of these programmes mostly missing
Notable disparities in how far national SME policy frameworks emphasise
environmental dimension
OECD South East Europe 6

7. Main findings (SME PI 2016): 9.2. Incentives and
instruments
7
Regulatory instruments and financial incentives to support SMEs in going
green lack across the region
OECD South East Europe
• A region-wide lack of provision of regulatory instruments to simplify permit
procedures or reduce the inspection frequency for low-risk facilities
• Financial support for the greening of SMEs largely missing (with the
exception of certain economies)

8. • Greater focus on assessing the
implementation of SME policies in the
region
• Endeavour to gauge the policies’
outcomes. More attention to involving
private sector and civil society in our
assessment
• Providing concrete, more hands-on
support in implementing our
recommendations through supporting
activities (regional policy dialogue and
capacity building)
• Finalised the first round of data collection
Main novelties
9.1. Environmental policies targeting
SMEs:
• SME greening part of SME policies
(in certain economies)
• Certain initiatives (eco-innovation,
energy efficiency) in the center of
governmental attention
• Co-operation with private sector and
local NGOs on SME greening issues
9.2. Incentives and instruments:
• Green innovation vouchers
• Eco-labels, green awards
• Programmes to raise awareness and
secure SME initial engagement in
green practices
Preliminary findings – Dimension 9
The SME Policy Index 2019: New cycle & dimension 9
8OECD South East Europe

9. 9
Conclusion
It all starts with vision and clear
agenda
Co-ordinated governmental effort
needed since various stakeholders are
involved
Promote SME greening and provide
guidance
Follow the trends and support SMEs in
grasping new business opportunities
(e.g. circular economy, eco-innovation)
Introduce frameworks and incentives,
but don’t stop at the planning and
design – implementation, M&E
OECD South East Europe
Make use of support programmes:
OECD technical assistance, EU

10. Thank you for your attention!
Jovana PAVLOVIC
Policy Analyst
OECD South East Europe Division
e-mail: jovana.pavlovic@oecd.org
10
Umur GÖKÇE
Project Manager
OECD South East Europe Division
e-mail: umur.gokce@oecd.org
Marzena KISIELEWSKA
Head of Division
OECD South East Europe Division
e-mail: marzena.kisielewska@oecd.org