Challenges for SMEs in the new economy

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Challenges for SMEs in the new economy

• A research perspective

Cristina Martinez Information Society and
Media European Commission
2
eBusiness and SMEs

• EU is interested in European SMEs
• Statistically at the heart of our economy (23
  million across EU25, gt90 are micro enterprises)
• But facing particular difficulties in integrating
  new technologies and re-organising business
  processes

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Why is research interested in SMEs?

• Encouraging entrepreneurship is key to
• creating jobs
• improving competitiveness
• economic growth
• innovation (high-tech SMEs!)
• gt meeting Lisbon objectives

4
Markets Figures and Consolidation

• Firms connected in the EU 91
• Intra-company eBusiness 33.5
• from which 30 only are SME
• Inter-company eBusiness 15
• Of all EU-15 firms
• 10 use supplier integration systems
• 9.3 integrate with customers
• gteBusiness applications are rather the exception
  than the norm on the demand side
• gtthe market is unstable and rapidly evolving on
  the supply side (source Eurostat)

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Concerns on the Software Market

• Uncertainty about stability of the products and
  market evolution
• Maintenance and product upgrade concerns
• Proprietary vs open products
• RD, training investments
• Interoperability problems
• Strategic choices to be made!

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SME Global Challenges

• European business environments are very specific
  and complex
• The portion of SMEs is significantly greater in
  Europe than in USA
• Change drivers are getting more complicated
• European Competitiveness Report 2003

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SME Local Challenges

• European SMEs have to demonstrate
• Capability to provide global presence
• Capability to ensure suitable critical mass and
  productions volumes
• Ability to improve constantly productivity and
  innovation levels
• Pressure on European SMEs, to comply with the new
  rules of global competition
• Need for dynamic business networking
• Need for adapted European research

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A few Research Perspectives

• Examples of new, primitive collaborative business
  models in the European market
• Research projects create foundations, mechanisms
  and ICT services and tools for an advanced
  collaborative and network-based industry society
  in Europe
• But SMEs need additional policy support to
  facilitate these new types of collaborations /
  partnerships within European SMEs and
  Professionals

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Our Future Commitments

• Develop ICT capacities in businesses (SMEs)
• Articulate research and policy
• Promote continuously projects results
• Optimize EU resources (future orientations of
  FP7, CIP, SF)
• Create synergies at European, Member State and
  regional level
• Promote new forms of innovation for SMEs
• Develop policy actions to engage the widest
  spectrum of stakeholders
• Continue the debate
• gt Addressing primarily the needs of SMEs

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References and links

• eBusiness (ICT for Enterprise Networking) web
  site on Cordis (EU research Portal)
• http//cordis.europa.eu/ist/ict-ent-net/index.html
  
• eBusiness portal on Europa
• http//europa.eu.int/information_society/eeurope/2
  005/all_about/ebusiness/index_en.htm
• eBusiness activities of Enterprise
  Directorate-General
• http//www.europa.eu.int/comm/enterprise/ict/index
  .htm
• I2010 web site
• http//europa.eu.int/information_society/eeurope/i
  2010/index_en.htm
• eBusiness Watch
• http//www.ebusiness-watch.org/
• Research Framework Programme 6 FP7
• http//www.cordis.lu/ist/
• The IST programme
• http//www.cordis.lu/ist/about/about.htm
• European Commission, The 2005 Report on ICT for
  Enterprise Networking.
• ftp//ftp.cordis.europa.eu/pub/ist/docs/directorat
  e_d/ebusiness/2005-ict-report_en.pdf
• Enterprise Interoperability Research Roadmap
• ftp//ftp.cordis.europa.eu/pub/ist/docs/directorat
  e_d/ebusiness/2005-ict-ent-net/ei.htm
• Eurostat, Community Survey on ICT usage
  e-commerce in enterpriese 2005