"Think Small First" principle

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The "Think Small First" principle requires that legislation takes SMEs' interests into account at the very early stages of policy making in order to make legislation more SME friendly. Various tools and techniques could lead to an effective implementation of the principle. These include the application of an SME test to forthcoming legislative proposals, the use of specific SME provisions in legislation in view of avoiding disproportionate burden on SMEs, the consultation of the SME stakeholders, the work of the SME Envoy, the use of Common Commencement dates for legislation relevant for business etc.

"Small Business Act" for Europe

The "Think Small First" principle is at the heart of the Commission Communication "Small Business Act" for Europe. The overarching objective of this political document is to irreversibly anchor the "Think Small First" principle in policy making through the application of 10 politically binding principles and a series of actions to be performed by the Commission and the Member States.

Report of the Expert Group "Think Small First" - Considering SME interests in policy-making

As part of the efforts to implement of the "Small Business Act" for Europe and in accordance with its mission to promote the sharing of knowledge and experience among the Member States, the Commission formed in 2008 an expert group from national administrations in view of helping the application of the "Think Small First" principle at both EU and national level. The group issued its report in March 2009. The report provides a definition of the "Think Small First" principle and presents a number of good practices at national and EU level on how to "Think Small First" in order to implement the "Small Business Act" for Europe. The purpose of the good practices is to suggest to policy makers in the Member States concrete solutions for the improvement of the business environment

SME Test

The Commission evaluates the effects of legislative proposals on SMEs. This is known as the SME Test and is a compulsory element of the Commission impact assessments. The methodology for performing the SME Test is part of the recently revised Commission Impact Assessment Guidelines.

The Commission's internal Guidelines on Impact Assessment as updated on 15 January 2009:

Applying the "Think Small First" principle in EU legislation and programmes

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The SME Test as developed in the Commission impact assessment guidelines was inspired by a 2008 study "Evaluation of the application of the "Think Small First" principle in EU legislation and programmes". The findings of the study demonstrated a lack of coherent approach to the evaluation of the impacts on SMEs and proposed a "Think Small First" toolkit which fed into the Commission SME Test methodology. The toolkit in particular provides guidance on how and in which cases it will be suitable to introduce specific measures for SMEs such as exemptions, reduced fees, simplified reporting; etc., to avoid a disproportionate burden on SMEs.

Consultation of SME stakeholders

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Consulting the SME stakeholders is an indispensable element for the implementation of the "Think Small First" principle. The Rep ort on the consultation of stakeholders pdf - 148 KB [148 KB] in the shaping of small business policy at national/regional level provides examples of good practices. The Commission uses a variety of tools in order to reach the European SMEs. These include regular consultations with sectoral and horizontal business organisations represented at EU level, consultations of panels of businesses, online public consultations etc.

SME Envoy

The European Commission's SME Envoy is the contact point for SMEs and SME stakeholders at the European Commission giving them the possibility to provide feedback on regulation, but also to get involved at an early stage in the conception of new policies and laws. Inside the Commission the Envoy plays the role of ambassador for SMEs' interests and is raising awareness about SMEs' problems in view of promoting less burdensome regulation for the businesses.

Common Commencement Dates

The concept of 'Common Commencement Dates' is an innovative solution to improve the life of SMEs. In line with the "Think Small First" principle and the Better Regulation Agenda, the idea is that business-related legislation comes into force on a limited number of fixed dates, with a view to ensuring a more streamlined flow and early information on new regulation concerning SMEs.

Last update: 29/09/2009 | Top