Young SMEs Interreg IVC Policy Paper

Categories: News, Other

SMEs are vital part of a successful economy. Not only do they support
supply chains, foster innovation and entrepreneurship but they essentially
create sustainable communities through job creation. Supporting SMEs
firstly to help them survive beyond their formative years, to help them
grow into strong and competitive businesses and for them to help
stimulate new business creation contributes to prosperous local and
regional economies whilst at the same time reducing unemployment
rates significantly.

However, research suggests that many SMEs will not make their 5th
year. Between 3 and 5 years is the age at when a business is mostly
likely to fail. Whilst there is currently an array of both public and private
sector support to encourage entrepreneurship, support the creation of
new business and help existing businesses, there is very little or even
nothing in some area’s to specifically support Young SMEs. Current
business support provision is developed, delivered and implemented
according to the sector, size or growth potential of a business. In some
cases age is considered but typically that support is only provided until
a business is 3 years old. This is not sufficient. To help the survival and
growth of Young SMEs there needs to be a shift away from generic
support to a more targeted approach aimed at businesses aged 3-5
years.

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