Empowering SME Success:
Driving Growth through a Strengthened
EU Single Market

On Wednesday, 20 November, SME Connect organised a working breakfast titled “Empowering SME Success: Driving Growth through a Strengthened EU Single Market” in the European Parliament in Brussels.

The event was hosted by LUKAS MANDL MEP, DEVE, JURI Committees, Board Member of SME Connect, and co-chaired by MARIA GRAPINI MEP, Vice-Chair IMCO; Board Member of SME Connect. The panel featured distinguished experts including AMARYLLIS VERHOEVEN, Acting Director, Tourism, Textiles, Digital Transformation of Industry and Social Economy at European Commission, DG GROW; EVA RYTTER SUNESEN, Partner and co-founder of Implement Economics; ALIEN MULYK, Public Affairs Manager Europe & International at bevh – der E-Commerce Verband; KAROLINA OPIELEWICZ, Member of the Board at the Polish National Chamber of Commerce; ELISA VITELLA, Head of Office at CNA Brussels, CNA – Italian Confederation of Craft and SMEs; SIMONE SKOVSHOVED, Head of Policy at Danish Entrepreneurs; ANTJE GERSTEIN, Managing Director at the German Retail Federation (HDE); PETER DOHR, Senior Expert for Single Market at Austrian Chamber of Commerce. The event was moderated by DR. HORST HEITZ, Chair of the Steering Committee of SME Connect.

In his opening remarks, LUKAS MANDL MEP underlined that Europe must address not only internal challenges such as excessive administration and labour shortages, but also external pressures in an increasingly complex global environment. He noted that the energy market has become weaponised, and that with a new U.S. president and a more assertive China, Europe may soon face renewed economic pressures. “I will strongly scrutinise the new President of the Commission to ensure that her goals of making Europe more competitive are achieved,” Mandl told the audience.

MARIA GRAPINI MEP stressed that SMEs have been affected by multiple crises since 2019 and that it is the role of the European Commission to support them through a renewed policy agenda. She underlined the need for targeted funding specifically for SMEs and for simplifying access to public procurement. Grapini also highlighted the importance of ensuring fair competition and protection from large companies in third countries, noting that SMEs often lack the resources to counter unfair practices. She further pointed to late payments and the high cost of financing as persistent challenges, emphasising that access to credit remains too expensive for many small businesses. “My current proposal in IMCO is to prepare a committee position that provides clear guidance for the new Commissioner Séjourné on the priorities of the Single Market and the needs of SMEs,” Grapini concluded.

Keynote speaker AMARYLLIS VERHOEVEN reaffirmed the European Commission’s commitment to restoring the EU’s position as a leading global economic player. “We are not defeated, but we are losing. This Commission is all about competitiveness. EU competitiveness should not be a source of worry anymore,” she stated. Verhoeven highlighted that the Commission is already advancing a series of key legislative initiatives, including the Late Payment Directive, alongside several other important files to be launched within the first 100 days of the new mandate. “When we talk about the imperfections of the Single Market, they will be at the heart of this strategy. We will focus on startups and scale-ups — we need to boost our new and growing companies. And we need your input and feedback, as stakeholders,” she emphasised, adding that the Commission’s decisions must be grounded in evidence-based data.

Outlining the Commission’s priorities for strengthening the Single Market, Verhoeven pointed to three core pillars: better lawmaking, effective implementation, and strong enforcement. Better lawmaking means that legislation at every level should enhance competitiveness while remaining SME-friendly. Simplification and harmonisation are central to this goal, ensuring that rules are clear, consistent, and conducive to growth. Implementation, she noted, will be equally vital. Digital tools offer new opportunities to improve how the Single Market functions. Initiatives such as the Single Digital Gateway, the upcoming Digital Product Passport, and Digital Procurement tools aim to create a document-free Single Market, reducing administrative burdens and streamlining procedures.

Finally, Verhoeven stressed that enforcement is essential: “Principles mean little if they are not respected or followed.” The Commission will work closely with Member States to ensure compliance and uphold the integrity of the Single Market. Together, these efforts aim to make the Single Market more effective, accessible, and future-ready — for both businesses and citizens.

EVA RYTTER SUNESEN presented survey results from 2,100 SMEs across six countries—mostly innovative firms with scale-up potential. The research identified five top priorities.
– ⁠Simplify and unify regulation: 93% of SMEs say common, unified rules would help their business grow.
– ⁠Strengthen consumer trust and protection: 92% support better European compensation for loss or harm caused by third parties.
– ⁠Promote the circular economy: 90% support harmonised rules for access to circular practices.
– ⁠Enhance digital infrastructure: 87% support stronger collaboration with digital platforms.
– ⁠Enable data flow and sharing: 92% back optimising cross-border data flows and access to data via the European Data Strategy.
Based on these points, the report summarises 14 recommendations, presented in the publication.

ALIEN MULYK shared key findings from the German perspective. “In Germany, 53% of purchases are made on marketplaces. Harmonisation of legislation is therefore crucial—especially in Germany, where differences exist even at the regional level. It is a very complex nightmare for every SME,” she said, adding that 98% of SMEs in their data would welcome an EU One-Stop Shop solution.

KAROLINA OPIELEWIC highlighted an instructive statistic from Poland. Exports have grown several times over in recent years, yet only 18,000 companies—out of 2.4 million—account for that activity. Of all businesses, 2.3 million are micro-enterprises, largely invisible in export. The challenge is to motivate small firms to consider cross-border expansion, overcoming psychological barriers linked to perceived risk. A low level of digitalisation further constrains participation, while navigating 27 regulatory frameworks is daunting. Addressing these obstacles requires targeted support and streamlined processes to enable broader international engagement.

ELISA VITELLA spoke on behalf of 621,000 craft and small companies employing 1.2 million people. “The Single Market is a place where ideas need to meet opportunities, not only a bunch of rules,” she said. She emphasised the central role of micro-enterprises in local communities. Although many are not active internationally, they are still affected by EU rules. The CNA advocates a horizontal approach to the 2025 Single Market Strategy, prioritising simplification of cross-border rules, digital transformation, and access to finance—all critical to help micro and small firms thrive in an interconnected market.

SIMONE SKOVSHOVED, Head of Public Policy at the Danish Permanent Representation to the EU, emphasised the difficulty for companies seeking to scale within the Single Market while navigating 27 national regimes. She noted significant overlap and contradictions in existing legislation that often surface at national level. The ongoing implementation of the AI Act illustrates these complexities and potential conflicts within regulatory frameworks.

PETER DOHR presented data underscoring persistent Single Market barriers. In 2020, obstacles were estimated at the equivalent of 44% of the value of goods, and up to 110% in services. “Joining the Single Market doubled Austria’s GDP and increased investments more than fivefold,” he said, pointing to substantial benefits. “A significant number of jobs have been created as a result. However, the issue is that barriers still remain. Coupled with external challenges from the U.S. and China, these obstacles prevent us from being equal competitors on the global stage, resulting in significant losses,” he concluded.

ANTJE GERSTEIN, representing a union of around 80 retailers, emphasised the challenge of implementing the extensive legislation adopted in the last term. She noted that rolling back rules is difficult, as many are already embedded and cannot simply be removed. Gerstein raised concerns about the Corporate Sustainability Reporting Directive (CSRD) and its delegated act, which set out 1,200 KPIs—an overwhelming burden compared with the roughly 40 KPIs otherwise used. On the Late Payment Directive, she cited opposition from 18 HDE members, acknowledging that while it may improve public-sector punctuality, many members rely on longer, mutually agreed payment terms to manage cash flow—especially for slow-moving, high-value goods such as washing machines. She stressed that such flexibility is vital for SMEs. Finally, she pointed to the challenge of large third-country platforms selling products that do not meet EU safety standards and violating rules such as the Digital Markets Act (DMA), undermining consumer protection in the EU.

In conclusion, while the Single Market has delivered profound economic gains for all Member States, significant barriers remain, imposing substantial costs. Rather than adding new layers of regulation, One-Stop Shop solutions, together with harmonisation and simplification of national rules, offer a more effective path forward. These efforts should be guided by the “think small first” principle, which must become a cornerstone of legislative practice. External pressures demand speed and efficiency: we are not defeated, but we risk falling behind.