The impact of EU enlargement on European SMEs : 2003/6

The current enlargement process constitutes one of the most important evolutionary steps for the European Union and it will continue to do so in the years ahead. In May 2004, 10 countries will formally enter the Union and another 4 countries have applied for membership. Since the mid 1990s a vast number of studies have attempted to evaluate the economic impact of the enlargement process on the EU-15 and on candidate countries. Research mainly concentrated on macro-economic effects, the labour market (especially the migration potential), on foreign trade and investment, or on particular regions. However, thorough investigations into the effects on SMEs have been relatively infrequent, although their position in the context of enlargement is different from larger enterprises, due to a lower direct involvement in international activities and a different strategic potential. The aim of this report is to provide an overall picture of the relevance of enlargement for European businesses, with a strong focus on the size dimension. The objective is to give a general overview of the manifold effects, opportunities and threats, while highlighting geographical and sectoral differences. Moreover, results will be put into perspective with regard to the views and expectations of the entrepreneurs themselves and their strategic reactions. Finally, an overview of SME-relevant policy measures related to enlargement is presented. The information and results of this report rely on an extensive stock of literature and data at European, national and regional level, on the results of the ENSR Enterprise Survey 2003 (see Annex III) and on a collection of national policy measures. Furthermore, results are supplemented by expert interviews carried out in the candidate countries.