EU hindering SMEs, claims ISME

The European Union is hindering the development of small to medium sized enterprises with increased legislation and bureaucracy, the ISME claimed today.

Discrimination against risk takers, the cost of finance and the lack of promotion and research and development have all acted against SME's, ISME Chairman Robert Berney claimed today.

SMEs account for 99% of all enterprises, two-thirds of all private sector employment and 50% of Gross Domestic Product in the European Union, a conference in Dublin heard today.

Berney called on the Government to recognise the contribution made by SMEs and for Ireland to vigorously progress the Lisbon Agenda during its term of EU Presidency.

Addressing the Taoiseach and the European representative body for small firms (UEAPME), Berney said: "It is no coincidence that there is a considerable gap between the EU and the US in terms of employment creation and labour productivity.

"Data from the European Commission's structural indicators suggest that average output per worker per hour is some 13% below the US level.

"It should also be noted that since the 10-year economic competitiveness strategy has been agreed at the Lisbon EU summit, the growth gap between the EU and US has widened", he added.

The ISME Chairman said it was essential that the SME sector in Ireland and throughout Europe was nourished and provided with the appropriate level of support in order to flourish and grow.