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 noted that we need to tackle not only internal barriers like administration or labour shortage, but as well international development is challenging. Energy market is weaponised. With new US president we can wait for another pressure in the economic area for Europe as well from stronger China. “I will strongly scrutinise new President of the Commission to fulfil her goals to make Europe more competitive again,” stated Mandl to the audience.

MARIA GRAPINI MEP stressed that SMEs are affected by many crisis since 2019. It is a role of European Comission to support SMEs by new agenda. Targeted funding specially for SMEs would be needed. Secondly, it is needed to simplify access for SMEs to successfully procure public contracts. Thirdly, fair competition and protection against large companies from third countries should be reassured. SMEs have not enough resources to fight with large companies that sometimes use unfair practices. Fourthly, late payments are an important issue as well. And last, fifth point, we need to lower a cost of financing SMEs.  It is too expensive still to get a credit. “My actual proposal in IMCO is, to prepare a committee position delivering a clear direction for the new commissioner Séjourné on Single Market and SMEs needs,” Grapini concluded.

Keynote speaker AMARYLLIS VERHOEVEN confirmed the commitment of the EU to become again a leading global player: “We are not defeated, but we are losing. This Commission is all about the competitiveness. EU competitiveness should not be a source of worry anymore.” Commission is currently working on many important legislations. For example, Late Payment Directive. Additionally, a lot of other important files are underway with Commission’s first 100 days. “When we talk about the imperfections of the Single Market, it will be in the heart of this strategy. We will focus on startups and scale up. We need to boost our new and growing companies. We need all important inputs and feedback from you, stakeholders,” emphasised Verhoeven and added, that Commission needs to build their decisions on the evidence base data. The European Commission’s priorities for strengthening the Single Market focus on addressing key barriers and implementing effective solutions. First, better lawmaking is essential. Legislation at every level should enhance competitiveness while being friendly to SMEs. Simplification and harmonisation are at the core of this effort, ensuring that regulations are clear, consistent, and supportive of economic growth. Second, implementation plays a crucial role. Digital tools offer significant opportunities to boost the functionality of the Single Market. For example, the Single Digital Gateway serves as a one-stop shop for all administrative services. Additionally, innovations such as the Digital Product Passport and Digital Procurement tools are set to be introduced soon. The Commission aims to establish a document-free Single Market, eliminating redundant paperwork and streamlining processes. Finally, enforcement is critical. Principles mean little if they are not respected or followed. The European Commission is committed to working with Member States to ensure compliance and uphold the integrity of the Single Market. These efforts collectively aim to enhance the effectiveness and accessibility of the Single Market for businesses and citizens alike.

EVA RYTTER SUNESEN presented a survey made on 2100 SMEs from 6 countries. They were mostly innovative SMEs with potential to scale up. As an outcome they identified 5 top priorities as a recommendations. Simplify and unify regulation: 93 % of SMEs say, that common unified regulation will grow their business; Strengthen consumer trust and protection: 92% of SMEs support better European consumer compensations for a loss or harm from 3rd; Promote circular economy: 90% of SMEs support the idea of harmonising rules when access to circular economy; Enhance digital infrastructure: 87% of SMEs support the idea to enhance collaboration with digital platforms; Data flow and share: 92% of SMEs go for optimisation of the cross-border data flows and access to data, via European Data Strategy. Based on these key points are summarised 14 recommendations presented directly in the above mentioned report.

ALIEN MULYK presented key findings from the German perspective. “In Germany, 53 % of purchases are being made at marketplaces. Harmonisation of legislation is therefore crucial. Especially in Germany, as there are differences even at the regional level. It is very complex nightmare for every SME,” she stated and added, that according to their data, 98% of SMEs will appreciate One Stop Shop solution from the EC.

KAROLINA OPIELEWIC came with an interesting statistic. When it comes to the Polish export, it has grown several times in years. However, only 18 thousand companies create it out of 2.4 million companies in total in the country. From all businesses, 2.3 million are micro-enterprises – they are invisible in export. The challenge lies in motivating small businesses to consider expanding their products or services beyond national borders. This hesitation often stems from psychological barriers associated with perceived risks. Additionally, a low level of digitalization among these businesses further hinders their capacity to engage in cross-border activities. Compounding these issues is the complexity of navigating 27 different regulatory frameworks across various markets, which can be daunting for smaller enterprises. Addressing these obstacles requires targeted support and streamlined processes to encourage and enable broader participation in international markets.

ELISA VITELLA represents the voice of 621 thousand craft and small companies with total 1.2 million employees. “Single Market is a place where ideas need to meet opportunities, not only bunch of rules”, Vitella stated in her opening remarks. Her speech primarily highlighted the importance of micro-enterprises, emphasizing their role as the backbone of local communities. While these businesses are often not engaged in international markets, they are nonetheless affected by EU regulations. The CNA advocates for a horizontal approach to the upcoming Single Market Strategy in 2025. Their key priorities include the simplification of cross-border regulations, fostering digital transformation, and ensuring access to finance—critical elements to empower micro and small businesses to thrive in an increasingly interconnected market.

SIMONE SKOVSHOVED represents startups community within the EU. “It is super difficult for the company, which wants to scale up within the EU single market, as its needs to navigate via 27 national rules,” she stated. She stressed the significant overlap in existing legislation, noting that many contradictory measures ultimately emerge at the national level. A pertinent example is the AI Act, whose implementation is currently underway, highlighting the complexities and potential conflicts within regulatory frameworks.

PETER DOHR presented compelling data illustrating the persistent challenges within the Single Market. In 2020, barriers in the Single Market were estimated to equate to 44% of the value of goods, with the figure rising to as much as 110% in the services sector. “Joining the Single Market doubled Austria’s GDP and increased investments more than fivefold,” Dohr stated, emphasising the substantial economic 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, highlighted the significant challenge of implementing the extensive legislation passed in the last term. She acknowledged that reducing regulation is equally difficult, as many rules are already in place and cannot simply be eliminated. Gerstein also raised concerns about the Corporate Sustainability Reporting Directive (CSRD) and its delegated act, which imposes 1,200 KPIs for companies—an overwhelming burden compared to the manageable 40 KPIs without the act. On the Late Payment Directive, she noted opposition from 18 HDE members, emphasizing that while it motivates public sector punctuality, many members rely on longer payment terms, mutually agreed upon, to support cash flow—especially for slow-moving, high-value goods like washing machines. She argued this flexibility is vital for SMEs. Finally, Gerstein addressed the issue of large third-country platforms selling products that fail to meet EU safety standards and violating regulations like the Digital Markets Act (DMA), undermining protections for EU consumers.

In conclusion, while the Single Market has had a profoundly positive impact on the economies of all Member States, significant barriers remain, imposing considerable costs. Rather than introducing additional regulations, solutions like the One-Stop Shop, combined with harmonization 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 should drive us to act with speed and efficiency. We are not defeated, but we are at risk of falling behind.