Country Reports for Current
Situation & Analysis of Needs of
SMEs on Strategy
Authors: Semih Ceyhan, Kadir Hızıroğlu, Mehmet Barca, Mahmut Hızıroğlu, Karel
Van Isacker, Maria Goranova, Bernard Van Isacker, Anne-Myrtille Rivoal & Denia
Frioua
This project has been funded with support from the
European Commission.
This publication reflects the views only of the author,
and the Commission cannot be held responsible for
any use which may be made of the information
contained therein.
1
Introduction
The importance of the big corporates and small and medium enterprises (SMEs) differs among countries. United Sates
of America (USA) has put more emphasis on corporate dimension while Europe give importance to the development of
SMEs. For the development of the European Union (EU) economy, the preparation of long term strategies for SMEs is
very important. EU tries to set its policies in a way that enhances the SMEs’ capabilities, competitiveness,
entrepreneurship and innovation capacities. In contrast with USA, the main focus is not on huge investors or big
corporations, but on the sustainibility and development of smaller enterprises.
This study aims to provide a comparative analysis of the current situations and strategy education perspectives of the
SMEs in Turkey, France and Belgium. The importance and role of the SMEs is analyzed, the state and legal framework
for SMEs is summarized and conclusions of the fieldworks are provided for each country.
This study package provides a detailed analysis of SMEs in Turkey, France and Belgium covering the issues of
demographics, legal framework of SMEs. In addition, findings of a strategy need analysis questionnarie are provided for
each country.
2
Contents
1. Research Objectives & Methodology
4
1.1 Objectives
5
1.2 Methodology
6
2. The Importance and Role of SMEs
7
2.1 The Importance and Role of SMEs in Turkey
8
2.2 The Importance and Role of SMEs in France
19
2.3 The Importance and Role of SMEs in Belgium
28
3. State and Legal Framework
39
3.1 State and Legal Framework in Turkey
40
3.2 State and Legal Framework in France
54
3.3 State and Legal Framework in Belgium
61
4. Findings of Analysis of the Current Situation and Needs Study
68
4.1 Key Findings –Turkey
69
4.2 Key Findings – France
79
4.3 Key Findings – Belgium
89
5. Final Remarks
100
3
Section 1
Research Objectives & Methodology
1.1 Objectives
5
1.2 Methodology
6
4
Research Objectives & Methodology - Objectives
Objectives
The objectives of the «Cross-cultural analyses of the
current situation and needs», workpackage 3, are stated
as follows:
1. Examining the current situation of SMEs in Turkey,
France and Belgium.
2. Identifying the major issues related to strategic
management of SMEs.
3. The elaboration of a detailed analysis of needs of
small enterprises in Turkey, France and Belgium.
4. Providing the necessary information about the state
and legal framework for the SMEs in Turkey , France
and Belgium.
5. Obtaining the database of the national bodies,
professional and educational institutions and
enterprises related to SMEs support and training
regarding the strategic management in Turkey ,
France and Belgium.
6. Mapping recent approaches that relate to the issue of
provision of training on strategy.
7. Revealing the existing shortfalls in vocational training
in small enterprises, as well as the reasons that cause
the situation.
8. Providing the findings obtained from the analysis of
current situation and needs.
9. Providing input for the preparation of the training
modules by emphasising the needs of SMEs in
Turkey, France and Belgium.
5
Research Objectives & Methodology - Methodology
Methodology
Work package 3 has been divided into 6 sections;
(i) introduction,
(ii) research objectives & methodology,
(iii) the importance and role of SMEs in each
country,
(iv) state and legal framework,
(v) analysis of the current situation and needs
study, and
(vi) conclusions.
For sections (iii) and (iv) desk research was conducted.
The secondary data on the current situation of SMEs and
the legal framework were gathered from different
resources. Moreover, preliminary assessment of the
situation took place by providing necessary information
on demographics of SMEs, as well as the relevant
legislations.
In section (v) a survey scale was developed in order to
determine the perspectives of SMEs' owners/managers
with regards to the need of strategy training. The survey
forms that consist of open and closed end questions were
prepared with the support of academicians, who are
experts on strategic management.
Dur’ng the survey, there were 205 participants from
Turkey, 161 from France and 31 from Belgium. The
tendency and need of the SMEs on strategy training
were measured. These participants were selected so that
the sample would represent the whole SME population.
This survey was applied to different regions of Turkey
including Ankara, Sakarya and their surrounding areas.
In France, the questionnaire was submitted to company
managers of the Vaucluse region, located in the South of
France. In Belgium, respondents were also from different
sectors from the Flemish region.
Surveys were made online, and the responses were
analyzed, mostly via descriptive statistics.
This work package is managed by Yildirim Beyazit
University (YBU). While conducting the research,
partner organizations of Turkey (YBU, Sakarya
University and KOSGEB), Belgium and France
performed a collaborative work using their experience
and resources. A team was established consisting of
members from all partners. After the desk and field
researches were finished, the team delivered the findings.
6
Section 2
The Importance and Role of SMEs
2.1 The Importance and Role of SMEs in Turkey
8
2.2 The Importance and Role of SMEs in France
19
2.3 The Importance and Role of SMEs in Belgium
28
At a glance
This section provides the necessary demographics about the current state of art of the SMEs in each
country. These demographics constitute of any related statistical information: some macro-economic
indicators, such as the number of SMEs in each sector, contribution of SMEs to employment, import &
export ; their share of total GDP, educational level of SME workers etc.
7
Section 2.1
The Importance and Role of SMEs in
Turkey
2.1.1 Current situation
9
2.1.2 The main industries which SMEs dominate (sectoral distribution of SMEs)
14
2.1.3 Human Resources Profile/Structure of SMEs
15
2.1.4 Training and consulting services employed within SMEs
18
8
The Importance and Role of SMEs in Turkey - Current Situation
The criteria of being an SME is based on the number of employees
and annual turnover amounts
The scales of enterprises in Turkey are defined according
to certain criteria; the number of employees, annual
turnover and balance sheet. The first criterion, number
of employees, is the same as that adopted by the EU.
However, financial criteria limits are lower than those of
the EU, due to the characteristics of Turkish enterprises.
Table-1 SME differentiation scales
A specific regulation has been adopted in Turkey on
definition, qualification and classification of SMEs.
According to this regulation, enterprises whose number
of employees are less than 250 and annual turnover or
annual balance sheet does not exceed 25 million Turkish
Liras are determined as SMEs. However, if state
institutions or organizations have control over 25 % of an
enterprise capital or the right to vote over it, the
enterprise is not regarded as an SME, even it remains
within the limits determined above.
SMEs are classified into three groups based on the
definition of the industry ministry; micro enterprises
(less than ten staff and one million Turkish Liras-annual
turnover or balance sheet), small enterprises (less than
fifty staff and eight million Turkish Liras-annual
turnover or balance sheet) and medium enterprises (less
than two hundred and fifty staff and forty Turkish Lirasannual turnover or balance sheet). Regulations have also
defined the enterprise as any entity engaged in an
economic activity, irrespective of its legal form.
Scale
# of employees
Annual Turnover
Micro
Small
Medium
<10
<50
<250
<1 million TL
<8 million TL
<40 million TL
9
The Importance and Role of SMEs in Turkey - Current Situation
SMEs plays an important role in international trade, penetrating
38,5% of the import and 62,6% of the export in 2012
Table-2 Total import and export contribution of SMEs in 2011 and 2012
Export (in 000TL)
Sector
2011
2012
Manufactured Products
Products of Agriculture, Forestry And Fishing
Mining And Quarrying
Water Supply; Sewerage, Waste Management
Electricity, Gas, Steam And Air Conditioning
Others
Total SME contribution
Total import / export
% share of SMEs
124.065.288
6.818.854
3.222.816
641.203
259.726
131.773
135.139.660
226.628.241
59,6%
Based on the data from TurkStat (TSI), in 2011 SMEs
contributed %63 of the total GDP in Turkey. Export and
import amounts reflect the fact of how important this
contribution is.
Total export share of SMEs in Turkey was 62,6% in 2012.
The 34,9% of the exporting enterprises were operating in
manufacturing, while 60,1% of the export were made by
SMEs in the trade sector.
159.330.882
7.117.961
3.865.209
575.733
343.562
357.473
171.590.820
274.192.247
62,6%
Import (in 000TL)
2011
2012
146.291.097
8.561.302
4.413.736
653.927
147.375
435.055
160.502.492
402.926.870
39,8%
147.949.475
8.388.722
5.042.161
772.903
461.961
1.364.059
163.979.281
425.783.332
38,5%
When it comes to import, the share of the SMEs is much
lower compared to exports. As summarized in table-2
SMEs realized 38,5% of the total imports. 33,2% of this
import is made by manufacturers, while 55,7% of the
import were made by SMEs in the trade sector.
10
The Importance and Role of SMEs in Turkey - Current Situation
The main source of the increase in the export of SMEs is
manufactured products
Table -3 Manufactured Products export breakdown of SMEs
Export (in 000TL)
Sector
2011
2012
Basic metals
Wearing apparel
Textiles
Food products
Electrical equipment
Machinery and equipment n.e.c.
Fabricated metal products
Chemicals and chemical products
Rubber and plastic products
Other non-metallic mineral products
Motor vehicles, trailers and semi-trailers
Others
Total
17.101.809
20.311.996
13.275.804
10.765.525
8.723.643
8.263.246
7.180.164
6.338.558
5.455.222
5.162.979
4.506.805
16.979.539
124.065.288
38.471.642
22.126.670
14.901.585
12.355.020
9.277.364
9.163.895
8.349.573
7.266.371
5.975.837
5.470.820
5.078.535
20.893.569
159.330.882
Growth
TL
%
21.369.833
125%
1.814.675
9%
1.625.781
12%
1.589.496
15%
553.721
6%
900.649
11%
1.169.410
16%
927.813
15%
520.615
10%
307.841
6%
571.730
13%
3.914.030
23%
35.265.593
28%
As it can be derived from table2, there was a significant
increase in export from 2011 to
2012. That increase was caused
by the 35,2 billion $ growth in
the manufactured products’
export. The basic metal export
increased by 125% with an
approximate amount of 21,4
billion $ from 2011 to 2012.
The table aside summarizes the
breakdown
of
the
Manufactured Products export
of SMEs.
11
The Importance and Role of SMEs in Turkey - Current Situation
The breakdown of the imports from SMEs in Manufactured
Products sector
Table -4 Manufactured Products Import breakdown of SMEs
Import (in 000TL)
Sector
2011
2012
Chemicals and chemical products
Basic metals
Machinery and equipment
Computer, electronic and optical products
Motor vehicles, trailers and semi-trailers
Electrical equipment,
Coke and refined petroleum products
Textiles
Food products
Rubber and plastic products
Other manufactured goods
Others
Total
25.575.674
19.489.843
20.332.161
12.882.964
11.365.684
6.660.835
5.930.969
7.045.090
5.317.502
4.609.141
4.844.477
22.236.759
146.291.097
26.618.089
22.694.385
20.294.519
12.961.135
9.672.840
6.440.141
5.998.390
5.914.264
5.838.180
4.847.109
4.722.652
21.947.771
147.949.475
Growth
TL
%
1.042.415
4%
3.204.542
16%
37.642
0%
78.171
1%
-
1.692.844
-15%
-
220.693
-3%
67.421
1%
1.130.826
-16%
520.678
10%
237.968
5%
-
121.825
-3%
-
288.987
-1%
1.658.378
1%
-
-
Table-4 on the left, which
provides the breakdown of the
manufactured products imports,
shows that the total imports of
SMEs have not been changed
significantly (only ~1%) from
2011 to 2012.
Manufactured products again
constitute a large proportion of
the SME imports as it is in the
exports. Chemicals, basic metals,
machinery
and
equipment,
computer electronics are the
most imported products by
SMEs.
12
The Importance and Role of SMEs in Turkey - Current Situation
Historical change in the number of firms that opened, liquidated,
closed from 2009 to 2013 in Turkey
Graph-1 Number of opened, liquidated and closed firms between 20092013
114872
102906
107219
108930
88766
opened
56121
44535
43362
15904
19562
liquidated
47978
closed
37273
24666
In the first five months of 2014, the
number of firms opened in Turkey
increased 29% compared to the
first five months of 2013. For the
same period, the number of closed
firms declined 2%.
23028
Graph-2 Comparison of first 5
months of 2014 with 2013
66248
19122
51279
2009
2010
2011
2012
2013
Based on the data from The Union and Chambers and Commodity
Exchanges of Turkey (TOBB) in 2013, the number of firms opened
in Turkey had increased 2% compared to 2012. The number of
closed firms had declined 22% in the same period.
16674
8588
5M-2013
16327
6638
5M-2014
13
The Importance and Role of SMEs in Turkey - The Main Industries Which SMEs Dominate (Sectoral Distribution of SMEs)
There were 2.591.082 enterprises operating in Turkey and %99,9 of
them were SMEs (2.587.319) in 2011
Table-5 The number of SMEs in different sectors in 2011
SME size (by # of employee)
1-19
20-49
50-99
Wholesale and Retail Trade; Repair Of Motor Vehicles
1.042.573 10.351
Transportation and Storage
Manufacturing
Accommodation and Food Service Activities
Professional, Scientific and Technical Activities
Construction
Human Health and Social Work Activities
Other sectors
Total
420.634 2.599
582
308.700 15.760 4.299
224.138 2.725
672
138.242 1.362
214
116.877 6.658 1.964
28.459 1.273
250
242.388 5.172 1.790
2.522.011 45.900 11.790
% in SME size
97,3%
Based on the data provided by the Turkish Statistical
Institute (TSI), in 2011 there were 2.587.319 SMEs
operating in Turkey. This number constitutes the 99,9%
of the total enterprises and 76% of the employment, 53%
of the total wages, and 63% of the total sales. The table
above provides the sectoral distribution of the SMEs by
grouping them according to their employee numbers.
1,8%
2.019
0,5%
100-249
SME
880 1.055.823
250+
Total
372 1.056.195 40,8%
329
424.144
177
424.321
3.062
331.821 1.467
333.288
494
228.029
227
228.256
133
139.951
81
140.032
1.030
126.529
312
126.841
292
30.274
129
30.403
1.398
250.748 1.127
251.875
7.618 2.587.319 3.763 2.591.082
0,3%
99,9%
% in
SMEs
250+
0,1%
16,4%
12,8%
8,8%
5,4%
4,9%
1,2%
9,7%
100,0%
9,9%
4,7%
39,0%
6,0%
2,2%
8,3%
3,4%
29,9%
100,0%
100,0%
The main economic activities of SMEs are as follows:
40.8% Wholesale and Retail Trade - Motor Vehicles and
Motorcycles Repair, 16.4% Transportation and Storage,
12.8% Manufacturing Industry. These three sectors
provided the 30,6% of the employment, 24,7% of the total
wages, and 53,4% of the total sales.
14
The Importance and Role of SMEs in Turkey - Human Resources Profile/Structure of SMEs
SMEs provided 76% of the employement in 2011
Table-6 The number of person employed in SMEs in different sectors in 2011
SME size (employee size)
20-49
316.564
501.509
203.222
80.084
83.699
40.282
38.467
161.083
Sector
Wholesale and Retail Trade; Repair Of Motor Vehicles
Manufacturing
Construction
Transportation and Storage
Accommodation and Food Service Activities
Professional, Scientific and Technical Activities
Human Health and Social Work Activities
Other sectors
1-19
2.096.355
909.258
457.772
598.296
465.066
310.886
77.796
447.476
Total
% in SME size
5.362.905 1.424.910 805.970 1.160.611 8.754.396 2.764.640 11.519.036 100,0% 100,0%
46,6%
12,4%
7,0%
10,1%
76,0%
24,0%
100,0%
SMEs in Turkey play an important role by providing
employment opportunities. 76% of the workers in Turkey
are employed in SMEs according to the data that TSI
provided in 2011. 46,6% of the employment is provided by
the SMEs who have 1-19 employees, which indicates the
importance of the micro-small size enterprises. The
majority of the SMEs are from wholesale and retail trade,
repair of motor vehicles, manufacturing and construction
sectors; 30,6%, 24,8% and 10,8% respectively.
50-99
100-249
SME
135.432
130.522 2.678.873
296.056
468.035 2.174.858
133.732
154.553
949.279
38.495
48.904
765.779
46.519
75.210
670.494
14.703
19.887
385.758
16.759
47.144
180.166
124.274
216.356
949.189
250+
339.857
976.161
145.180
229.047
151.319
45.025
72.821
805.230
Total
3.018.730
3.151.019
1.094.459
994.826
821.813
430.783
252.987
1.754.419
% in
SMEs 250+
30,6%
12,3%
24,8%
35,3%
10,8%
5,3%
8,7%
8,3%
7,7%
5,5%
4,4%
1,6%
2,1%
2,6%
10,8%
29,1%
Larger companies who has more than 250 employees
provide only 24% of the total employment and the sectors
that holds the big share are Manufacturing and Wholesale
and Retail Trade, Repair of Motor Vehicles with
percentages of 35,3% and 12,3% respectively.
15
The Importance and Role of SMEs in Turkey - Human Resources Profile/Structure of SMEs
Average number of employees in an SME is 3 in 2011, while this
number is 735 for large companies
Table-7 Average # of person employed per firm in 2011
SME size (employee size)
1-19 20-49 50-99 100-249 SME
3
32
69
153
7
Manufacturing
2
31
67
148
3
Wholesale and Retail Trade; Repair Of Motor Vehicles
4
31
68
150
8
Construction
2
31
69
152
3
Accommodation and Food Service Activities
1
31
66
149
2
Transportation and Storage
2
30
69
150
3
Professional, Scientific and Technical Activities
3
30
67
161
6
Human Health and Social Work Activities
2
31
69
155
4
Other sectors
Total
2
31
68
152
3
250+
665
914
465
667
1.294
556
565
714
735
Table-7, which summarizes the
average number of employees
according to the size of the
enterprises in 2011, shows that
the average number of employees
among different sectors does not
change too much.
The
average
number
of
employees worked in an SME is 3
while this number is 735 for large
enterprises.
16
The Importance and Role of SMEs in Turkey - Human Resources Profile/Structure of SMEs
The value added at factor cost, education level and age of SMEs’
managers
Table-8 Value added at factor cost per employee in 2011 (in TL)
SME
Manufacturing
Wholesale and Retail Trade; Repair Of Motor
Vehicles and Motorcycles
Construction
Professional, Scientific and Technical
Activities
Transportation and Storage
Other sectors
Total
20.346
250+
Graph-3 Age of the SME managers
36.10%
30.74%
219.051
18-30
31-40
41-50
51-60
14.68%
19.868
22.445
48.682
48.795
12.80%
3.28%
Graph-4 Education level of the SME managers
37.617
14.792
19.933
21.789
34.340
52.752
54.111
60.552
When we compare SMEs and large companies we observe
that average value addition at factor cost per employee is
three times higher in large companies than the SMEs.
Dramatic differentiation occurs in manufacturing sector.
Average employee in a large manufacturing company
provides 219.051 TL while a manufacturing employee in
an SME only creates 20.346 TL.
29.27%
Doctorate Degree
Master Degree
Bachelor Degree
High School
28.57%
4.10%
35.97%
0.44%
The education level of the managers of the SMEs is
summarized at the graphs above. Based on the data from
KOSGEB in 2007, 69,52% of the managers at the same
time are the owners of the businesses. 35,97% of these
managers have education level under high school level.
The average age of the managers is 41 based on the same
KOSGEB data in 2007. Most of these managers are
younger than 50 years old.
17
The Importance and Role of SMEs in Turkey - Training and Consulting Services Employed within SMEs
There is a reluctance in SMEs for taking professional assistance
from outside
The young managers are providing a dynamism to the
SMEs on catching up with new technologies and
innovation. This helps SMEs on adapting better to
changing environmental conditions. However, this
situation is not a solution of deliberate choices but the
family business perspective of the SMEs in Turkey.
Education level and age are not enough for being
competitive in the market, there is a strong need for
professional assistance for SMEs. Table 9 summarizes
the percentage of the service purchased by SMEs on
advisory and education in 2007. This table shows that in
Turkey professional assistance seeking is very low in
Turkey, in most service types it is below 5%.
According to the KOSGEB data, between 2010-2013,
1.036.309 TL amount of training support was provided to
811 SMEs. In addition, KOSGEB also distributed
3.782.507 TL advisory support to 1.002 SMEs. These
supports could be for any subject that SMEs need. When
it comes to specific supports on strategic management;
KOSGEB provided 58.296 TL and 396.491 TL amounts
respectively to training and advisory since April 2012.
Table-9 Outsourced advisory and education services
Service type
Marketing, Advertisement
Sales, Distribution
Management Organization
Human Resources
Total Quality Management
Production Planning and Control
International Trade - Export
Computer Systems
Scheduled Maintenance
Financial Management
Manager Education
Advisory Education
3,1%
2,0%
3,5%
2,0%
5,8%
3,4%
2,1%
4,2%
2,4%
3,0%
1,7%
5,0%
4,0%
4,8%
3,4%
6,9%
4,9%
3,8%
6,8%
3,2%
3,1%
4,9%
KOSGEB does not have a specific support to SMEs on
strategic management but they consider the subject
within general management training and advisory
supports.
18
Section 2.2
The Importance and Role of SMEs in
France
2.2.1 Current situation
20
2.2.2 The main industries which SMEs dominate (sectoral distribution of SMEs)
22
2.2.3 Human Resources Profile/Structure of SMEs
24
2.2.4 Training and consulting services employed within SMEs
25
19
The Importance and Role of SMEs in France - Current Situation
The General Overview of SMEs in France
In France, the category of Small and Medium Sized
Enterprises (SMEs) is made of enterprises which
employ fewer than 250 persons and which have an
annual turnover not exceeding 50 million euros,
and/or an annual balance sheet total not exceeding
43 million euros. Among them, there are also
micro-enterprises which employ fewer than 10
persons and have an annual balance sheet total not
exceeding 2 million euros.
Table-11 Number of companies at 12/31/2012
Business Sector
Food
Construction
Manufacturing
Services
Other
Total
VAUCLUSE Source CMV
14.542 Companies at
12/31/2012
Number
%
9,8%
1.430
46,1%
6.708
15,2%
2.208
28,8%
4.186
0,1%
10
100%
14.542
Table-10 Number of companies at January 1st 2012
Changes
Company number over the last
Share on
and distribution
year
market sector*
Craft Companies
Companies whose
main activity is
artisanal
Food industry
Manufacturing
Construction
Services
1.115.221
921.620
67.929
125.357
452.880
275.454
100,0%
7,4%
13,6%
49,1%
29,9%
2,1%
32,2%
2,0%
-0,2%
1,3%
2,2%
2,7%
26,6%
2,0%
3,6%
13,1%
7,9%
Field: France, units registered in the craft
chamber.
* Less agriculture, finance and
Reference: Insee, Sirene 2012; treatment Dgcis insurance
In France, all sectors included, there are a little more
than 3 million SMEs, among which 96% are microenterprises. Regarding the craft sector, there are a little
more than 1 million craft enterprises in the country
and 14.542 in the Vaucluse department. They employ 3
million people and have a turnover of 268 million
euros.1 Almost 50% of them are in the construction
industry.
1 http://www.cm-avignon.fr/PDF/Service%20CFE%20RM/ANNUAIRE%20STATISTIQUES%202013%20-%20CMA%2084.pdf
20
The Importance and Role of SMEs in France - Current Situation
Focus on Export
In Provence-Alpes-Côte d'Azur (PACA),
13900 small and medium sized enterprises
(SME's) export and had an export turnover
of 5 billion euros in 2007; which
corresponds to 7,7% of the total amount of
French exports. Paca is therefore the 3rd
region in France in terms of SMEs export
turnover, behind Île-de-France (34,1 %) and
Rhône-Alpes (11,3 %).
The region is characterized by the
importance of the international trade with
African and Mediterranean countries. 17%
of SMEs exports are destined to Africa, with
12% to Maghreb countries (Algeria, Tunisia
and Morocco). 38% of SMEs export are
made to Mediterranean countries (14%
towards countries outside the Euro zone).
The main part of trade is made towards
Europe which receives 64% of the region
SMEs exports; with 40% destined to
neighboring countries. Italy is the preferred
partner of PACA's SMEs, with 17% of the
region's total exports.2
2 http://www.insee.fr/fr/themes/document.asp?reg_id=5&ref_id=19609
21
The Importance and Role of SMEs in France - The Main Industries Which SMEs Dominate
One exporting country out of two belongs to the trade sector
Table-12 Sector breakdown of the international activities of PACA SMEs in 2007
Regional
SMEs
Industry
Trade
Intermediate Goods
Enterprise Services
Transporting
Capital Goods
Consumer Goods
Construction
Agri-foodstuffs
Service to Individuals
Automotive
Total
(in number)
51.237
3.057
35.870
6.916
3.670
4.529
35.159
4.807
35.677
104
181.026
Including Regional
Exporting SMEs
(in number)
6.427
687
2.538
818
712
622
926
240
873
32
13.875
(in %)
12,5%
22,5%
7,1%
11,8%
16,9%
15,7%
2,6%
5,0%
2,4%
30,8%
7,7%
Industry Importance Share of Revenues Average Share of Export
in Regional Export Generated on Export on Companies Revenues
(in % of profit on
(in % of profit on
(in %)
export regional)
each sector)
51,7%
11,2%
10,2%
9,5%
6,0%
4,9%
2,7%
1,9%
1,6%
0,3%
100,0%
4,4%
13,2%
12,8%
14,0%
18,7%
7,2%
1,1%
5,4%
1,1%
14,4%
6,5%
25,6%
20,6%
36,6%
39,9%
23,5%
23,7%
43,8%
14,9%
33,7%
26,9%
29,6%
Reading: on the 51.237 trade SMEs of PACA in 2007, 6.427 export (12,5%) and realize 51,7% of regional export. 4,4% of trade profit is generated in
international market. Exporting SMEs of trade realize on average 25,6% of their profit in international market.
Field: mono regional SMEs of business sector (less agriculture, energy, financial activities, education, health, administration and housing activities
Source: Insee, Ficus, Clap, Lifi
Trade is at the heart of the region's exports: almost half of the companies which export operate in the trade sector (which
represents 6400 companies). 25% of the total turnover of these companies comes from exports. Their export turnover
represents, therefore, 52% of PACA SMEs total export turnover. 3
3 http://ism.infometiers.org/ISM/content/download/5132/29828/version/7/file/Tableau_bord_artisanat_C1.pdf
22
The Importance and Role of SMEs in France - The Main Industries Which SMEs Dominate
90% of construction enterprises operate in the craft sector 4
Craft enterprises are predominant in 3
sectors:
1. construction : 90% of its enterprises are
craft enterprises ;
2. manufacturing industry : 79 % of its
enterprises are craft enterprises ;
3. other service activities (appliance repair,
personal care) : 75 % of its enterprises are
craft enterprises
4 http://ism.infometiers.org/ISM/content/download/5132/29828/version/7/file/Tableau_bord_artisanat_C1.pdf
23
The Importance and Role of SMEs in France - Human Resources Profile/Structure of SMEs
The Craftman Profile
Most of craft enterprises managers are men around 44
years old, and women around 42 years old. The average
age for both genders is therefore 43
The highest degree of almost half of craft enterprises
managers (47%) is a CAP or BEP. These are diplomas
awarded after the completion of a secondary level
vocational training. 74 % of craft enterprises managers
have completed their secondary education and 13 % of
them have no diploma at all.
24
The Importance and Role of SMEs in France - Training and Internal Consulting Services for SMEs
A Slight Decrease of the Number of Applications Filed 5 (1/3)
Among the various training programs offered by
training centers, 10 specialties attract 60% of the
trainees. The first three - safety, multivalent training in
trade and management, and a training aiming at
strengthening the capabilities for professional
guidance and for social and professional integration have been the same since 2006. We have noticed a
steady increase of the trainings in the fields of hygiene
and safety. This can be explained by the evolution of
the French labor law and of the new legal obligations
companies have to comply with (professional diseases,
occupational health and safety).
Vocational training can sometimes provide certified
skills or diplomas. Through the Validation des Acquis
de l’Expérience (VAE) scheme, or Validation of
Experience Knowledge, it is possible to validate
knowledge and skills acquired on the job as well as
those acquired in non-formal and informal learning
settings. 21 400 certifications or diplomas have been
awarded by the French ministry of education in 2012.
5 https://www.kpmg.com/FR/fr/IssuesAndInsights/ArticlesPublications/Documents/Evolution-des-PME-depuis-10ans-2012.pdf
25
The Importance and Role of SMEs in France - Training and Internal Consulting Services for SMEs
A Slight Decrease of the Number of Applications Filed (2/3)
In these graphs, we can notice a slight decrease of
the numbers of candidates who have been awarded
a diploma. This decrease is due not only to the
number of candidates (-1.5%), but also to the final
decisions of certification boards (-1%).
Regarding the types of applications, the level V
(CAP, which is the lowest level for a French
vocational diploma) has decreased by 2%, with
23% of the applications filed.
On the other hand, the level III (BTS, DEES,
vocational training after secondary education), has
increased by 2% to reach 44 % of the total amount
of applications filed. It is still the most requested
diploma, with 31 % of applications, followed by the
CAP (31 %) and the vocational secondary school
diploma (18 %).
26
The Importance and Role of SMEs in France - Training and Internal Consulting Services for SMEs
A Slight Decrease of the Number of Applications Filed (3/3)
VAE concerns, by definition, people who have acquired
enough working experience to file an application. The
number of older applicants is bigger at the end of the
assessment process: 58 % of the applicants who were
awarded the whole diploma in 2012 were at least 40
years old, whereas they were 52 % when they filed
their applications and only 50 % when their request
was accepted. 6
6 http://www.education.gouv.fr/cid54822/dispositifs-academiques-de-validation-des-acquis-le-nombre-de-diplomes-delivres-reste-stable-en-2012.html
http://cache.media.education.gouv.fr/file/2013/71/1/DEPP_NI_2013_27_Dispositifs_academiques_validation_acquis_nombre_diplomes_delivres_reste_stable_2
012_284711.pdf
27
Section 2.3
The Importance and Role of SMEs in
Belgium
2.3.1 Current situation
29
2.3.2 The main industries which SMEs dominate (sectoral distribution of SMEs)
35
2.3.3 Human Resources Profile/Structure of SMEs
37
28
The Importance and Role of SMEs in Belgium - Current Situation
Number of SMEs in Belgium, and its employment
Source: These are estimates for 2012 produced by London Economics, based on 2008-10 figures from the
Structural Business Statistics Database (Eurostat). The data cover the 'business economy', which includes
industry, construction, trade, and services (NACE Rev. 2 sections B to J, L, M and N), but not enterprises in
agriculture, forestry and fisheries and the largely non-market service sectors such as education and health.
SMEs represent 99.8% of the total Belgian businesses.
There were a total of 855.897 SMEs in Belgium in
2009 providing 2,6 million jobs and 41,1% of the total
employment nationally. Of these, the majority,
650.182, are one-person companies. 204.597 SMEs
(24%) have 2 – 199 employees and the remaining
1.118 companies have 200-250 employees. 7
7
8
There are approximately 38 SMEs per 1000
inhabitants in Belgium, which is almost in line with
the EU-27 average of ca 40. However, since this is
mainly due to a smaller overall number of businesses,
the proportion of SMEs to all enterprises is analogous
to the EU average, as well as the SME share of total
employment and value added. This also holds true
when looking at the micro, small and medium-sized
enterprise level. 8
Comprehensive analysis of programmes and initiatives in Belgium that assist the Collaboration between science and SME, February 2011, Mauro Bianchi,
Hannah Centeno (TESEO Sprl.), MaPEer SME FP7 project
Source: 2013 SBA fact sheet Belgium, issued by EC, Enterprise and industry
29
The Importance and Role of SMEs in Belgium - Current Situation
Other indicators of SMEs
Some other indicators:
SME size:
•
Total number of SMEs in Belgium in 2009 was
855,897.
•
Excluding one-person companies,9 there were
204,597 SMEs10 of which there were in:
– Brussels: Total 22,965 (11%): Micro 19,395
(84%), Small 2,977 (13%), Medium 593 (3%)
– Flanders: Total 123,896 (61%), Micro
105,876 (84%), Small 15,561 (13%), Medium
2,459 (2%)
– Wallonia: Total 57,736 (28%), Micro 50,312
(87%), Small 6,538 (11%), Medium 886 (2%)
SME Weight:
•
SMEs represent 99.8% of total businesses in
Belgium. The proportion of SMEs in each of the
Belgian regions is as follows:
– Flanders: 99.4%
– Wallonia: 99.5%
– Brussels: 99.1%
SME location:
•
Brussels: 22,965 (11.2%)
•
Flanders: 123,986 (60.6%)
•
Wallonia: 57,736 (28.2%)
SMEs - Total employment: 2.6 million (41.1% of total
employment) in 2009. SME distribution by size in 2009,
excluding one-person companies:
No. of employees
No. of companies
1-4
146.889
5-9
28.694
10-19
14.931
20-49
10.145
50-199
3.938
Total
204.597
11
For 2013, following figures are available:
Number of
enterprises
480.906
26.572
4.248
511.726
9 One-man firms (or independents) are not taken into account.
10 Enterprise size: Micro, 1-9 employees; Small, 10-49 employees; Medium, 50-199 employees.
11 http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/performance-review/
Basic Figures - 2013
Number of
employees
841.234
523.931
415.341
1.780.506
Value added
(Billion €)
39
34
34
107
30
The Importance and Role of SMEs in Belgium - Current Situation
Economic SME indicators in facing the ongoing economic crisis
(1/4)
Belgian SMEs are highly internationalised compared to
other countries with 73% selling goods or services
outside of Belgium.
Belgian SMEs have so far weathered the crisis relatively
well. They have even been outperforming their EU peers
in many areas since 2008. Although they too experienced
a decrease in the number of SMEs, employment and
gross value-added, the surges before and after the
downturn made Belgian SMEs better off now than they
were before the crisis. For instance, SME employment
levels were estimated to be 4% higher in 2012 than in
2008. Very few other Member States have a similarly
positive development.
The economic crisis had a stronger negative impact on
Large Enterprises (LEs) than on SMEs. Between 2008
and 2012, LEs just managed to hold their level of value
added, while SMEs showed positive growth (more than
7%) over the entire period.
The outlook for Belgian SMEs in 2013 and beyond is still
moderately optimistic. However, some risks have
recently appeared, most notably due to the wave of
closures or downsizing of larger plants (such as the Ford
factory in Genk and Caterpillar in Charleroi), which may
have an impact on smaller suppliers, especially at
regional level.
Deloitte Fiduciaire in its SME Compass 2013 survey12
measured the impact that the recent years of crisis have
had on the financial performance of Belgian SMEs. The
survey also highlights the fiscal pressures placed on
SMEs.
Some of the major conclusions include:
Half of SMEs saw their turnover decline in 2012; only the
services sector was able to limit the damage.
•
In 2012, only 44% of SMEs recorded a real increase
in turnover – i.e. where growth exceeded inflation.
Just about every sector shared in the knocks last
year. No fewer than 57% of the companies operating
in the construction sector had to deal with a
significant fall in their turnover. More than half of
businesses in commerce and industry also saw their
sales shrink. Only the services sector managed to
limit the damage to some extent, with ‘only’ 4 out of
10 SMEs recording a loss of turnover.
12 http://www.deloitte.com/view/en_be/be/2ad7e19a9d1e1410VgnVCM2000003356f70aRCRD.htm
31
The Importance and Role of SMEs in Belgium - Current Situation
Economic SME indicators in facing the ongoing economic crisis
(2/4)
Half of the companies that saw their turnover fall
recorded a decline of at least 9.1%. A quarter of this
group of businesses suffered a reduction in turnover
of 21% or even more. By contrast, half of the
companies that grew did so by a maximum of 8.8%.
As a result, the loss of turnover comfortably
exceeded any growth in sales.
Only 31% of family-owned SMEs are recruiting; 4 in 10
non-family SMEs provide more employment.
•
Whereas a small majority of non-family SMEs saw
their turnover grow last year, more than half of
family-owned SMEs had to deal with a decline in
turnover during the same period. At the same time,
28% of family-owned SMEs found themselves
obliged to reduce their workforce last year. This was
in contrast to non-family businesses, where 4 in 10
SMEs were able to provide more employment.
The number of businesses investing is at an all-time low;
those companies that are investing increased their
investment budgets by 22%.
•
In 2007, the last year before the financial and
economic crisis erupted, 66% of SMEs were still
investing. However, by the end of 2012, the number
of companies still investing had fallen back to 58%.
The number of businesses reducing their
investments on balance was historically high at
23%. One positive note was that the amount being
spent on investments by those companies still
investing rose by 22% to an average of € 41.100.
1 in 2 SMEs paid more than 37% of their EBITDA
(earnings before interest, taxes, depreciation, and
amortization) in taxes and social security contributions;
fiscal impact on small SMEs equivalent to half of the
wages bill.
•
The fiscal impact takes all tax and related charges
together and measures how much a company is
paying to the government. The large proportion of
employer contributions – representing 63.7% of the
total fiscal impact – stands out immediately.
•
32
The Importance and Role of SMEs in Belgium - Current Situation
Economic SME indicators in facing the ongoing economic crisis
(3/4)
The second biggest component is company tax,
which represents 23,5% of the total fiscal impact.
Half of profitable companies in 2012 paid at least
26,7% corporation tax on their book profit. One
quarter of them even paid more than the normal
rate of 33,99%. Even the average management
company, which is currently strictly audited, paid
32,5% company tax in 2012.
•
The various types of tax include non-deductible
VAT, excise tax, traffic tax, the various provincial
and municipal taxes and environmental levies.
Together, these represent 12,6% of the total fiscal
impact. As a result, we should not underestimate
the importance of these various taxes.
•
Finally, the SME Compass 2013 survey shows that
of gross book profit, a good half (53,7%) is paid to
the State
The strength of Belgian SMEs remains their level of selffunding, and a reduction in assets from banks as a source
of funding.
•
•
•
At the end of 2011, the real solvency of the average
SME was 48,3%. At the end of 2012, this ratio had
risen to 51,7%. One quarter of SMEs fund
themselves with 74,4% or more using their own
resources. This means that the company’s own
shareholders and directors/business managers are
by far the most important providers of assets for
SMEs in Belgium.
By contrast, the importance of bank finance as a
source of funding fell by a good 2,8%.
33
The Importance and Role of SMEs in Belgium - Current Situation
Economic SME indicators in facing the ongoing economic crisis
(4/4)
Despite the above somewhat positive elements, a striking
aspect is nevertheless that 99% of bankruptcies in 2012
were SMEs. In the period January - May 2013, there were
5.139 bankruptcies (this is an increase of 12,5%
compared to 2012). There was a loss of 9.923 jobs (10.127
jobs in 2012). UNIZO and Graydon detailed in their 2014
SME report that in 2012 15% of Flemish SMEs are facing
financial difficulties (read: potential bankruptcy), 16,7%
in Wallonia and 26% in Brussels. Especially SMEs active
in the horéca, retail and transport sector are prone to
difficulties.
8. Bad/No payment by clients
9. Incapacity to work by owner, fire, theft, etc.
10. Bankruptcy mother company, sister company,
holding
The 10 main reasons of bankruptcies are:
1. Economic situation, declining demand
2. Lack of vision, changing market
3. Mismanagement
4. Bad cash flow management
5. Lack of capital, less fluent credit from banks
6. Hesitation to lay off staff
7. Fraud
34
The Importance and Role of SMEs in Belgium - The Main Industries Which SMEs Dominate
The main industries which SMEs dominate (sectoral distribution of
SMEs) ( 1/2 )
Table-13 Number of SMEs with 0-50 employees per sector and region in Belgium
Sector
Brussels Flanders Wallonia Belgium
Financial Services
Hotel, restaurant & catering
Real estate
Other personal services
Business service sector
3.485
7.066
5.856
3.855
21.773
15.088
34.025
20.102
31.762
84.883
6.033 24.606
16.898 57.989
7.179 33.137
15.102 50.719
34.625 141.281
Subtotal services incl. tourism
42035 185860
79837 307732
Representing a regional % of:
Trade/Commerce services
Wholesaling
Retail
Subtotal trade
Representing a regional % of:
Construction
42,7%
36,2%
33,5%
36,2%
2.763
5.439
10.671
14.316
29.218
55.414
8.972
8.961
29.307
26.051
43.618
95.392
18.873
98.948
19,2%
19,3%
47.240 165.061
19,8%
19,4%
9.993
65.264
30.291 105.548
Representing a regional % of:
Automobile sector
Chemicals
Industry: wood products
Industry: ICT & electronics
Industry: metal products
Industry: paper & printed press
Industry: textile, fabric & leather
Industry: Processed food & beverages
Other industry
10,20%
2.260
323
391
265
340
717
484
554
724
12,70%
14.332
2.283
3.302
1.203
5.767
3.460
2.250
5.336
5.946
12,70%
8.046
1.184
1.774
508
2.769
1.321
823
2.492
2.740
Subtotal manufacturing industry
6.058
43.879
21.657 71.594
6,2%
8,5%
Representing a regional % of:
9,1%
12,40%
24.638
3.790
5.467
1.976
8.876
5.498
3.557
8.382
9.410
8,4%
Sector
Other
Representing a regional % of:
Agro, fisheries & forest
Representing a regional % of:
Communications & IT
Transport and logistics
Subtotal logistics, post, telecom & IT
Representing a regional % of:
Health
Representing a regional % of:
TOTAL
Brussels Flanders Wallonia Belgium
9.738
9,9%
324
0,30%
6.088
2.843
8.931
9,1%
2.419
2,5%
36.908
7,2%
34.823
6,80%
18.959
13.672
32.631
6,4%
15.516
3,0%
18.143
7,6%
20.290
8,50%
7.727
4.616
12.343
5,2%
8.840
3,7%
64.789
7,6%
55.437
6,50%
32.774
21.131
53.905
6,3%
26.775
3,1%
98.371 513.829 238.641 850.841
Source: UNIZO-Coface EuroDB, November 2009, no data for >
50 employees
From table-13, we see that in each of the three regions
and nationally, the most important sector is services
including business, financial, tourism and real estate
and accounting for 36% of SMEs nationally, with
Brussels showing 42% as would be expected given its
status as a national capital city and home to many EU
institutions.
The next most significant sector is trade related with
19% of SMEs involved in such activity throughout the
three regions.
35
The Importance and Role of SMEs in Belgium - The Main Industries Which SMEs Dominate
The main industries which SMEs dominate (sectoral distribution of
SMEs) (2 /2 )
Construction is the third most important sector for
Belgian SMEs with 12% engaged in related activity
nationally and a little less in the Brussels Region (10%).
Manufacturing industries are fourth in importance with
8,4% of SMEs engaged nationally with the figures for
Brussels, Flanders and Wallonia coming in at 6,2%, 8,5%
and 9,1% respectively.
Other individual sectors account for less than 7% each
nationally apart from logistics, communications and IT
in which 9,1% of Brussels Region SMEs participate.
36
The Importance and Role of SMEs in Belgium - Human Resources Profile/Structure of SMEs
Human Resources Profile/Structure of SMEs
The following table provides an overview of the size of the SMEs in Belgium:
Table-14 Overview of the size of the SMEs in Belgium
# of employees
2000
2001
2002
2003
2004
None
379.562 377.596 376.657 468.757
380.184
1 to 4
47.337
47.450
48.451
50.778
51.012
5 to 9
12.564
12.875
13.062
13.680
13.527
10 to 19
7.789
7.949
7.851
8.081
8.053
20 to 49
5.455
5.549
5.547
5.587
5.503
Total
452.707 451.419 451.568 546.883 458.279
2005
385.994
51.866
13.957
8.026
5.544
465.387
2006
396.817
53.135
14.162
8.178
5.656
477.948
2007
412.054
50.510
13.945
7.908
5.555
489.972
2008
423.286
51.456
14.309
8.097
5.655
502.803
2009
432.845
53.026
14.615
8.192
5.584
514.262
Source: UNIZO – GRAYDON13
Majority of the SMEs does not employ staff, and either is a one person business or has staff that works under a
self employed status. This is also reflected in below table-15
Table-15 Legal form of the SMEs in Belgium
Legal form
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
NV
63.206 62.878 62.516 62.131
61.677 60.957 60.547 60.039 58.804
57.538
BVBA
109.456 113.190 115.248 117.847 121.082 124.991 130.883 137.089 143.757 148.694
EVBA
524
2.223
5.118
7.778
10.068 11.981 14.231 16.819 19.551
21.864
Diverse Commanditaire en
12.203 12.337 12.379 12.631
13.063 13.550 14.497 15.643 17.220
18.819
Coöperatieve
Vennootschappen
One person companies
259.219 252.385 247.490 243.790 242.290 242.697 245.308 246.355 247.244 249.322
VOF
2.530
2.773
3.087
3.412
3.855
4.481
5.274
6.262
7.443
8.511
Other
5.569
5.633
5.730
5.911
6.244
6.730
7.208
7.765
8.784
9.514
Total
452.707 451.419 451.568 453.500 458.279 465.387 477.948 489.972 502.803 514.262
BRON: UNIZO – GRAYDON
13 http://www.unizo.be/images/res347073_29.doc
37
The Importance and Role of SMEs in Belgium - Human Resources Profile/Structure of SMEs
Educational level of workers in manufacturing SMEs
The education approach for workers in the
manafucaturing SMEs is organised through 2 yearly
cross-sectoral negotiated agreements by social partners
(employers, labour unions). This determines the overall
vocational training efforts, the competence and
qualification needs, how to recognise and validate them,
and to mobilise resources. The collective labour
agreements further define on a sectoral level the
contribution by companies to identify and anticipate
competence and qualification needs, how to recognise
and validate, and to mobilise resources.
Training takes place via skills centres (organised by
VDAB in Flanders). Obviously, this is only applicable to
larger companies where labour unions are active.
Close to 68% of surveyed SME employees indicated they
were pleased with education and training within their
company. However, the study which was conducted by
the ACV trade union indicated that in the small SMEs of
less than 50 employees, there is less view over the level of
provided training. They claim this is the result of less
presence of trade unions in those small SMEs (as stated
by Mario Snaet of the study and formation department
of ACV West-Vlaanderen). 14
Flemish SMEs can make use of training cheques, a
subsidy whereby SMEs can pay for trainings with
relatively large reductions of the actual training course
expenses. 15
14 http://users.khbo.be/u0080647/Persoverzicht%2013-12-5/13-11-27%20VIVES-studie%20rond%20tevredenheid%20KMOwerknemers%20over%20onthaal%20en%20opleidingen%20-%20campus%20Kortrijk%20-%20Belga.pdf
15 http://www.bedrijfsbeheer.net/kmo-portefeuille/#sthash.m7lcQV7c.dpuf
38
Section 3
State and Legal Framework
3.1 State and Legal Framework in Turkey
40
3.2 State and Legal Framework in France
54
3.3 State and Legal Framework in Belgium
61
At a glance
This section provides the necessary information about the state and legal framework for the SMEs in
each country. Main governmental institutions which support SMEs and the type of supports are
summarized. This section also focuses on these public authorities and their impacts on SMEs.
39
Section 3.1
State and Legal Framework in
Turkey
3.1.1 Institutıonal structure
41
3.1.2 Legislative Framework Regarding the Development of Strategy in each country
51
3.1.3 Related initiatives/projects regarding strategic development/training on national or
regional level
53
3.1.4 Encountered problems/difficulties on strategy development/training
54
40
State and Legal Framework in Turkey – Institutional Structure
Business environment in Turkey, the policies and the structures of
government institutions influence the performance of SMEs
Small and medium-sized enterprises (SMEs) play a
very important role in Turkish economy owing to their
large share in total number of enterprises and in total
employment. But they have also some weak aspects
especially in technology, R&D and innovation,
institutionalization, access to sufficient finance,
trademark concepts, modern marketing strategy,
employees’ education level and quality, credit
guarantee system and harmonization to global
standards etc.
Business environment that SMEs operate in has many
aspects that are dependent on and affected by present
institutions and structures. The policies and the
structures of these institutions directly influence the
performance of SMEs. Some institutions become
prominent and have been involved in the preparation
and execution of industrial policies
The government authorities have for many years
carried out a variety of programs to support these
enterprises and overcome these weaknesses. Therefore,
design and implementation of strategic programs for
SMEs have received increasing attention. Several
institutions have been involved in the formulation and
implementation of such programs.
41
State and Legal Framework in Turkey – Institutional Structure
Government actors and their functions in SME policy (1/2)
Actors
Functions
Ministry of Science Industry and Technology
Facilitates determination of industrial policies,
provides and encourages rapid and sustainable
development of industry, promotes competitiveness
of SMEs, holds records of the industrial enterprises.
Ministry of Development
Prepares long-term development plans and annual
programs, develops future-oriented strategies and
policies in cooperation with related institutions.
Small and Medium Industry Development
Organisation (KOSGEB)
Support mechanisms for increasing competitiveness
of SMEs, encouraging entrepreneurship and
innovative start-ups.
The Undersecretariat of Treasury
State aid for investments, financial transfers to public
enterprises.
The Undersecretariat of Foreign Trade
Support mechanisms for improving export capacity.
42
State and Legal Framework in Turkey – Institutional Structure
Government actors and their functions in SME policy (2/2)
Actors
Functions
Ministry of Finance
Taxation, finance matters for enterprises.
The Scientific and Technological Research Council of
Turkey (TUBITAK)
Support and policy making for R&D, scientific
research, innovation activities
Ministry of Food, Agriculture and Livestock
Support mechanism for SMEs on investment in
agriculture
Ministry of Tourism
Support mechanism for SMEs on investment in
tourism industry
Universities
Provide education and consulting to SMEs on a
variety of subjects
43
State and Legal Framework in Turkey – Institutional Structure
Half governmental actors and their functions in SME policy
Actors
The Union of Chambers and Commodity Exchanges
of TURKEY (TOBB)
The Confederation of Tradesmen and Artisans of
Turkey (TESK)
Functions
Represents private sector, ensures unity and
solidarity between chambers and commodity
exchanges, facilitates professional work of members,
and promotes confidence in the relations of
members with the public.
Coordinates and represents tradesmen, craftsmen
chambers and the federations, takes vocational
measures for its members according to national and
global economic development, provides vocational
training.
Vocational Training and Small Industry Supporting
Foundation (MEKSA)
Aims to promote quality of workers for SMEs
through vocational training at national level.
Turkish Technology Development Foundation
(TTGV)
Supports technology development projects.
Universities, Techno Cities, Technology Transfer
Offices
Supports R&D activities of SMEs and acts as
incubator centers for start-ups. Also provides
knowledge spillovers among SMEs
44
State and Legal Framework in Turkey – Institutional Structure
Major Financial Institutions actors and their functions in SME
policy
Actors
Functions
Turkish Foundation for Small and Medium Business
(TOSYOV)
Feedback for consultation mechanisms.
Banks
Credits
ISRISK, VAKIFRISK, KOBI A.S.
Venture Capital
Credit Guarantee Fund (KGF), TESKOMB
Guarantees
45
State and Legal Framework in Turkey – Institutional Structure
KOSGEB and the SME support mechanism
KOSGEB (Small and Medium Industry Development
Organization) is one of the major organizations
executing the SME policy in Turkey. The strategic
objectives of KOSGEB are stated as:
1. To increase the management skills and institutional
capacities of SMEs.
2. To increase the R&D and innovative activities of
SMEs.
3. To improve the culture of enterprises and encourage
them to establish new successful businesses.
4. To constantly develop KOSGEB so as to present
qualified services to SMEs
Before 2003, SMEs which want to benefit from KOSGEB
supports, could directly apply KOSGEB service providers
and the requested support could be provided within the
frame work of budget availability. After restructuring of
KOSGEB organization and support mechanism, SMEs
have been directed to strategic objectives depending on
their capacity and competitiveness power. In addition,
KOSGEB aims to make SMEs gain short and middle
term projection perpectives and work on project basis
analysis of needs and then apply supports for this
specific needs.
The supports of KOSGEB are categorized under 8
support programmes:
1. R&D, Innovation and Industrial Application Support
Programme
2. General Support Programme
3. SME Project Support Programme
4. Cooperation-Leaguing Support Programme
5. Entrepreneur Support Programme
6. Thematic Project Support Programme
7. Emerging Enterprises Market SME Support
Programme
To utilize from these supports SMEs are first needed to
register in the KOSGEB Database system. Then they
submit their project to the system and KOSGEB
comittee decide whether the application meets the
requierements or not. If the opinion is positive SMEs are
supported.
KOSGEB also provide laboratory support for SMEs in 9
cities and 11 centers, in which SMEs could test / increase
their products quality
46
State and Legal Framework in Turkey – Institutional Structure
KOSGEB had distributed approximately 104 m TL in the first half
of 2013
Table-16 KOSGEB Support Amounts for SMEs in 2012 and first half of 2013
Jan- Dec 2012
Jan- June 2013
Support # of SME
Support # of SME
Support name
Amount (TL) supported Amount (TL) supported
R&D, Innovation and Industrial Application Support Programme 22.729.033
740 19.265.910
700
General Support Programme
30.849.114
8.807 34.469.463
9.325
SME Project Support Programme
17.932.500
796 17.546.403
1.136
Cooperation-Leaguing Support Programme
9.030.702
44
4.372.698
35
Entrepreneur Support Programme
22.495.559
2.839 27.805.642
3.580
Thematic Project Support Programme
75.674
7
213.392
13
Emerging Enterprises Market SME Support Programme
6.000
1
Others
464.531
122
433
1
KOSGEB Supports Programs
103.577.113
13.355 103.679.941
14.791
KOSGEB SME Loan Interest Supports
65.314.676
4.833
256.600
37
Total
169.094.802
17.759 103.936.541
14.316
47
State and Legal Framework in Turkey – Institutional Structure
Estimated supports to be distributed to SMEs in 2014
Table-17 KOSGEB 2014 Budget for Performance Objective
Expenditures
Support name
SME Loan Interest Supports
Entrepreneur Support Programme
General Support Programme + Thematic Project Support Programme
R&D, Innovation Supports
Industrial Application Support Programme
Cooperation-Leaguing Support Programme
Women Entrepreneur Support Programme
SME Project Support Programme
Applied Entrepreneurship Training Programme
Women Entrepreneurship Training Programme
Total direct supports for SMEs
Total performance objective expenditures
Support
Amount (TL)
88.000.000
63.700.000
47.000.000
41.000.000
39.000.000
30.000.000
27.800.000
20.000.000
700.000
100.000
357.300.000
434.969.000
%
20,2%
14,6%
10,8%
9,4%
9,0%
6,9%
6,4%
4,6%
0,2%
0,0%
82,1%
100,0%
KOSGEB has distributed millions of TL as a support for SMEs. Their 2014 budget for
realizing their performance objectives is approximately 435 m TL and 82,1% of this
budget is devoted to direct supports of SMEs. SMEs Loan Interest Supports take the
lead by 88 m TL and Entrepreneur Support Programme follows the former with a
budget of 63,7 m TL.
48
State and Legal Framework in Turkey – Institutional Structure
TUBITAK provide suport 4.081 SMEs between 1995-2012 with a
total project number of 6.859
Scientific and Technological Research Council of Turkey
(TUBITAK) is one of the biggest public institutions on
supporting R&D activities of firms, entrepreneurship,
academia-industry co-operation, science and innovation.
TUBITAK tries to develop the suitable environment in
which Turkish companies could increase their R&D and
innovation capacity, competitiveness. They have plenty of
supports for both big firms, academia and SMEs. Some of
the support programmes related with the SMEs are listed
below:
1. Programme 1512 - Entrepreneurship Multi Phased
Support Programme: Based on a multi phased form,
the programme targets young entrepreneurs. In first
phase TUBITAK provides the seed capital and in the
second continues to support R&D activities. In the
final phases aims to help the SME for
commercialization and provide firms the opportunity
of meeting venture capitals.
2. Programme 1507 - SME R&D Support Programme:
Aim of this support is to provide financial support to
SMEs to access R&D services.
3. Programme 1601 - Support Programme for Increasing
Capacity in Entrepreneurship and Innovation Areas:
This support targets to increase the innovation and
entrepreneurship capacity of SMEs by establishing
mentorship mechanism.
4. Programme
1514Venture
Capital
Funding
Programme: This support aims to create new venture
capitals that supports entrepreneurship projects with a
value-added aspect that is innovative and leads to
developing new products and processes.
5. Programme 1602 –Patent Support Programme: to
fund SMEs patent expenditures in order to increase
the number of national and international patent
numbers.
The number of project applications made to TUBITAK
and supported project numbers are provided below. 63%
of the SMEs who has an application is funded by
TUBITAK and 56% of the projects are accepted between
1995 and 2012.
Table-18 Project Applications between 1995-2012
Project #
%
Firm #
%
74,6%
90,7%
12.249
6.486
SME
4.173 25,4%
662 9,3%
250+
Total
16.422 100,0%
7.148 100,0%
Table-19 Supported Projects between 1995-2012
Project #
%
Firm #
%
6.859 70,6%
4.081 89,1%
SME
2.862 29,4%
501 10,9%
250+
Total
9.721 100,0%
4.582 100,0%
49
State and Legal Framework in Turkey – Institutional Structure
TUBITAK distributed on average 170 m TL grant to SMEs per year
since 2007
Graph-5 The amount of grant distributed by TUBITAK between 2000 -2012 (in m TL)
500
450
SME
400
250+
222.0
350
300
135.5
250
185.6
131.3
200
177.0
124.0
124.4
2011
2012
82.0
150
100
174.1
78.4
12.5
19.3
13.8
50
41.7
85.0
31.8
245.0
203.4
40.6
48.1
59.2
55.6
2002
2003
2004
113.3
152.8
147.0
149.6
0
2000
2001
2005
2006
2007
2008
2009
2010
As it can be derived from the
table, the proportion of the SMEs
on taking grants from TUBITAK
had increased dramatically after
2003. While the proportion was
less than 30% before 2003, after
this point the SME share from the
grants had an average of 46%.
After 2010, this share had
exceeded the big firms.
Despite of the increasing support
in terms of money distributed to
SMEs there is a lack of impact
analysis of these funds. Control
and monitoring mechanisms are
not effective.
Beside the lack of analyzing the impact of the supports, it is not also clear that whether only the same companies are
supported every year or not. Only a limited number of SMEs are aware of these supports and knows how to utilize it.
It is important to make a research on these impact analysis and fair distribution topics and determine the needs on the
subject of government supports instruments.
50
State and Legal Framework in Turkey – Legislative Framework Regarding the Development of Strategy
SME Strategy developed by the government
In recent decades government began to put more
emphasize on strategic planning. Especially for
government institutions there is an obligation to prepare a
strategic plan, set strategic objectives and act in line with
the related project and activities. For this purpose, the law
5018 force public institutions to build up Strategy
Development Units.
In the 9th Five-year Development Plan of Turkey, article 668
stated that: «Differentiated SME policies in terms of regional
convergence and competitiveness objectives will be
introduced. In this context, special attention will be given
into the training of skilled labor needed, expansion of the
financial resources, diversification of financial instruments
and facilitation of access to markets and technology.»
The main purpose of the government in making reforms
for preparing strategic planning is to measure the
performance and plan the budget of public institutions
according to this criteria. However, when it comes to SME
strategy priority is set to competitiveness, development
and economic growth.
Another policy instrument used in Turkey for creating a
conducive investment climate for the SMEs is the
Coordination Council for the Improvement of the Investment
Environment (YOİKK) Action Plans. In order to strengthen
the overall business environment in the market, the Council
aims to rationalize the regulations on investments in Turkey.
They develop policies by defining the necessary preparations
that will improve the competitiveness of the investment
environment and to generate solutions to the administrative
barriers encountered by the domestic and international
investors. The enhancement of the general environment
indirectly effects the SMEs.
In last decades, government realized the importance of the
SMEs in economic sustainable development and effective
support for the development of SMEs in the development
of applications, facilitating access to finance, technology
and financing non-renewal of policies in areas determined
to provide support. Thus, government wants to set a
strategy for SMEs in Turkey and the responsible unit is
KOSGEB. By preparing strategy and action plans and
providing financial supports to SMEs as mentioned
detailly in previous sections; KOSGEB is the largest player
which applies government policies directly on SMEs.
51
State and Legal Framework in Turkey – Legislative Framework Regarding The Development of Strategy
Turkey accepted European- wide rules of Small Business Act in
2010 which determines the actions which should be carried out for
SMEs
The National SME Strategy first established in 2004 which was based on the idea of harmonizing SME policies
with EU. Turkey accepted the rules of Small Business Act in 2010. This EU-origin document determines the
actions which should be taken for small businesses. KOSGEB is the national coordinator of this act and
monitoring the progress of the project. Small Business Act has 10 strategic principles:
1.
2.
3.
4.
5.
Create an environment in which entrepreneurs
and family businesses can thrive and
entrepreneurship is rewarded
Ensure that honest entrepreneurs who have faced
bankruptcy quickly get a second chance
Design rules according to the “Think Small First”
principle
Make public administrations responsive to SMEs’
needs
Adapt public policy tools to SME needs: facilitate
SMEs’ participation in public procurement and
better use State Aid possibilities for SMEs
6. Facilitate SMEs’ access to finance and develop a
legal and business environment supportive to timely
payments in commercial transactions
7. Help SMEs to benefit more from the
opportunities offered by the Single Market
8. Promote the upgrading of skills in SMEs and all
forms of innovation
9. Enable SMEs to turn environmental challenges
into opportunities
10. Encourage and support SMEs to benefit from the
growth of markets
52
State and Legal Framework in Turkey – Related Initiatives/Projects Regarding Strategic Development/Training on National or Regional
Level
SME Strategy and Action Plan (KSEP) plays an important role on
policy making
Government tries to set a strategy for SMEs in Turkey and
the responsible unit is KOSGEB. They prepare SME
Strategy and Action Plans in every two years. In order to
enhance coordination among these institutions «SME
Strategy and Action Plan (KSEP)» has been prepared.
KSEP also aimed at harmonizing the SME Policy of
Turkey with the European Union as it was stated in the
2003 Accession Partnership Document. This document
try to implement the strategies on SMEs by ensuring the
coordination between institutions.
The actions stated in KSEP are realized by the related
institutions and the progress reports are gathered by
KOSGEB. SME Strategy and Action Plans Committee has
held two meetings with the Ministry of Industry in a year.
In these meetings progresses are monitored and new
decisions are taken.
The last strategic plan was prepared in 2011 which includes
the period 2011-2013. The document determined the
weaknesses and threats of SMEs and these problems were
classified as five strategic areas:
1. improving and supporting entrepreneurship,
2. improving managerial skills and institutional proficiency
of SMEs,
3. taking into consideration of SMEs needs while improving
business and investment climate,
4. improving SMEs’ R&D and innovation capacity,
5. making accession to finance easy for SMEs and
Entrepreneurs.
53
State and Legal Framework in Turkey – Encountered Problems/Difficulties on Strategy Development/Training
Encountered problems on strategy development
SMEs in Turkey face some problems due to liability of smallness and generally newness. Globalization has lead
significant changes in the economic environment. The problems are listed below:
1. Technology: Most of the strategic actions needed to be
taken includes enhancing the technology capacity of
the SMEs. However, the know-how is generally low in
SMEs. Relations with universities and technical skills
of the firms are weak. Most of the SMEs are classified
in medium or low level industry sectors.
2. Innovation: The low level of technology causes the
weakness in innovation. Although the R&D activities
and increasing amounts of supports provided by the
government, it is difficult to say that SMEs are
sufficient to upgrade to technology intensive industry
sectors.
3. Finance: The most important obstacle for SMEs on
making innovative and technological changes is
finance. They do not have enough finance to increase
their capacity and adapt to the technological
improvements. Investors and banks often avoid invest
in start-ups or young SMEs due to the risks involved.
When it comes to the point of asking SMEs to build up
their strategies, this requires strong financial
backgrounds.
4. Labor: Due to high tax rates, most of the SMEs chose
unrecorded labor. This decreases both the security of
employees and the quality of the human resource.
Moreover, in some sectors that requires high
technology or strong competence, it may be hard to
find qualified workers. This low quality level of labor
also makes the strategy implementation difficult for
SMEs.
5. Marketing and Export: Most of the SMEs focuses on
domestic markets, which does not help the strategic
vision of being internationally competitive as a
country.
6. Environment: Environmental complexity has been
increasing day by day and SMEs face some problems
catching up with these changes. Lack of information,
scarcity of resources and insufficient expertise make it
difficult for SMEs to implement visionary strategies.
54
Section 3.2
State and Legal Framework in
France
3.2.1 Institutıonal structure
56
3.2.2 Legislative Framework Regarding the Development of Strategy in each country
58
3.2.3 Related initiatives/projects regarding strategic development/training on national or
regional level
60
3.2.4 Encountered problems/difficulties on strategy development/training
61
55
State and Legal Framework in France – Insitutional Structure
Schemes implemented by the French government to support SMEs
SMEs play an important role in the French economy,
not only because they are numerous but also because
they employ many people. Nevertheless, SMEs must
sometimes face major obstacles in terms of financial
development, innovation etc.
To help SMEs overcome these obstacles, various
schemes have been implemented by the French
government.
It presents eleven different themes: accompanying
start-ups; financing SMEs; simplifying administrative
procedures; stimulating competitiveness; stabilizing
SMEs taxation; encouraging innovation; creating
employment;
favoring
entrepreneurial
activity;
developing exports; improving relationships between
companies; maintaining social balance inside
companies. 16
Indeed, the government has launched the national pact
for growth, competitiveness and employment, and
created the public investment bank. It then enacted the
employment security law and, organized the
entrepreneurship conference.
Dozens of measures which were taken to simplify the
life of enterprises, rebuild their confidence in the
future, help them to invest, innovate and recruit.
All those initiatives designed to help companies, have
been grouped together on the same internet page, a
page that is accessible to everyone.
16 http://www.redressement-productif.gouv.fr/les-engagements-du-gouvernement-en-faveur-des-pme
56
State and Legal Framework in France – Institutional Structure
The government authority on Chambers of craft and small business
and the role of DGCIS
The French minister in charge of craft enterprises
exercises the authority of the government on the
permanent assembly of the chambers of craft and small
business (APCMA in French). As for smaller connected
offices, the authority is exercised by the Prefect of each
region, with the assistance of the directors of the public
finances,. Les Directions régionales des Entreprises, de la
Concurrence, de la Consommation, du Travail et de
l’Emploi (DIRECCTE) exercise also a local authority.
This authority is exercised on acts (budgets, internal
regulations…) and persons as well (suspension of a
member for serious misconduct…)
As for the DGCIS (national board for competitiveness,
industry
and services), it designs the regulations
governing the organization and operations of the
APCMA and its local offices. It coordinates the actions of
local offices; bring them its expertise and advice,
especially for personnel matters. Within the DGCIS, the
CMA (chamber of craft and small business) authority
office is in charge of all these missions.
CMAs develop close relationships with local SMEs and
carry out missions of public services that are essential to
the structuring of craft enterprises:
• Creation-Development-Transmission:
Each
CMA
consultant teams bring their expertise in a wide range of
sectors. They can give customized advice or set up
collective actions, depending on the answer that is
necessary.
• Le Repertoire des Métiers (professional directory): it is
kept by CMAs. The law defines how the book must be
kept and how to assign the titles of Artisan (craftsman),
Artisan d’art (art craftsman) or Maître artisan (Master
craftsman).
• Training and apprenticeship: CMAs act as independent
training centers. As they have been training apprentices
for 75 years, they play a key role in this field. A recent
and innovative scheme is the Centre d’Aide à la
Décision, (decision support center) which has been
created to help young people, adults and companies. It is
an interface between job seekers and recruiting SMEs.
• Promoting craft enterprises: through collective actions
(fairs, exhibitions, professional fairs and consumers
exhibitions), CMAs bring new markets and customers to
their members, in France and abroad. CMAs also
organize advertising and promotional campaigns aiming
at enhancing the understanding of craft enterprises.
57
State and Legal Framework in France– Legislative Framework Regarding the Development of Strategy
Measures taken by the government since 2011-12 17(1/2)
The following measures were grouped together in the
pact for competitiveness:
1. Reduce labor costs by 20 M€ through a
competitiveness and employment tax credit (CICE).
2. Set up a new government guarantee to provide 500
M€ worth of cash for SMEs.
3. Reduce the payment times, to address the issue of
late payments.
4. Create the Public Investment Bank (BPI in French).
5. Create incentives to invest in companies through the
reform of the saving and taxation system.
6. Refocus banks onto their core business, which is the
financial
support
of
actual
economy,
by
implementing an imminent banking law.
7. Facilitate access to capital markets for SMEs.
8. Restructure and boost policy for supporting
innovation inside the companies.
9. Spread digital applications and technologies.
10. Redirect competitiveness hubs towards the products
and services to be reindustrialized. Differentiate
internationally attractive strategic hubs from local
development hubs.
11. Restructure the national industrial conference (CNI)
to set up agreements between companies operating in
the same sector.
17 http://www.economie.gouv.fr/ma-competitivite/35-mesures-concretes
12. Design a sector based strategy for the industrial sector.
13. Ensure that at least two employees' representatives
will take part in the board of directors or supervisory
board meetings.
14. Provide customized international support to 1 000
growth MSBs or SMEs.
15. Provide export financing schemes that are identical to
the best financing schemes of other countries.
16. Develop and increase the number of VIE
(international volunteers in business).
17. Develop a strategy to improve the attraction of France,
aimed at attracting international talent and major
investment projects, as well as cultural and scientific
activities.
18. Launch a "France brand" to promote the "made in
France" and French excellence.
19. Maintain the advantages of our infrastructures and
deploy high-speed digital broadband throughout the
country
20.Ensure continuous monitoring of the suitability of
training opportunities to employer skill requirements.
21. Create 10 national professional re-skilling platforms.
58
State and Legal Framework in France – Legislative Framework Regarding the Development of Strategy
Measures taken by the government since 2011-12 (2/2)
22. Strengthen the role of companies in technical and
vocational training,
23. Promote the employment of young apprentices in
SMEs with a goal of 500,000 apprentices by 2017.
24. Ask social partners to discuss the creation of an
individual learning account for each and every
employee, regardless of their position in the company.
25. Boost international mobility, doubling the number of
French students abroad by 2020.
26. Stabilize 5 key tax schemes for investment and SMEs
survival over the five year term of the elected
President.
27. Set up 5 procedures to simplify business and
administrative procedures.
28.Set up a sustainable simplification procedure and
introduce an "SMEs test" for projects with the
strongest impact on SMEs (including taxation
matters).
29. Rationalize the taxation system. No further tax will be
implemented if another tax, of the same amount, is not
simultaneously cancelled.
30.Restore public finances to provide a stable Financial
environment.
31. Pursue and implement structural reforms to improve
public services: transport, housing, energy, etc.
32. Support the development of innovative growth SMEs
through public purchasing.
33. Overhaul commercial law to make it more effective.
34. Provide the country with a forum for dialogue,
forward-looking debate and expertise. Give free access
to public data from the website: data.gouv.fr.
35. Make a formal request to get the advice of independent
experts when European decisions on competition
issues have to be formulated.
59
State and Legal Framework in France – Related Initiatives/Projects Regarding Strategic Development/Training on National or
Regional Level
A « Small Business Act » for Europe
In June 2008,, the «Small Business Act» for Europe
reflects the Commission's political will to recognize the
central role of SMEs in the EU economy. For the first
time it puts into place a comprehensive SME policy
framework for the EU and its Member States.
It aims to improve the overall approach to
entrepreneurship, to permanently anchor the « Think
Small First' » principle in policy making from regulation
to public service, and to promote SMEs' growth by
helping them tackle the remaining problems which
hamper their development.
The Small Business Act for Europe applies to all
independent companies which have fewer than 250
employees and whose turnover is lower than a defined
amount ; i.e. 99% of all European businesses.18
18 http://ec.europa.eu/enterprise/policies/sme/small-business-act/index_fr.htm
60
State and Legal Framework in France – Encountered Problems/Difficulties on Strategy Development/Training
Problems and difficulties met in the process of strategic
development
In France, SMEs must face more or less serious
difficulties. In some fields, these difficulties can be
explained by a lack of appropriate skills; but not always.
Many of them don't have a good strategy and haven't set
the right targets and objectives.
Finances: The financial aspect is one of the most serious
difficulties SMEs may encounter. The lack of equity, low
profitability, difficult access to bank loans, accounts
receivables… are daily problems which have an impact
not only on the company's good health but also in other
fields (technological, innovation…).
Marketing and Export: Tariffs, complex regulations,
administrative difficulties, or the cultural or language
barriers make of the road to international trade.
Environment: Because of the lack of information, research
and appropriate skills…it is difficult for small companies
to anticipate and adapt to their environment.
Technology: Technological weakness is linked to a lack of
knowledge and a lack of skills, as well as a lack of
investment. Technologies are not updated because there
is no technological watch.
Innovation: With the right technological capacities a
company can innovate. But for SMEs, technological
investment is low and sometimes there is no investment
at all. R&D is therefore left aside.
61
Section 3.3
State and Legal Framework in
Belgium
3.3.1 Institutıonal structure
63
3.3.2 Legislative Framework Regarding the Development of Strategy in each country
65
62
State and Legal Framework in Belgium – Institutional Structure
Institutional Structure (1/2)
Various instruments are available to support investments
by SMEs. The main bodies providing such support are:
Federal
•
FINMIX for complex financing needs
•
The Participation Fund for subordinated loans
Flanders
•
PMV for guarantees and loans
•
BAN Vlaanderen: coordinator for promising
entrepreneurs
Brussels and Wallonia
•
Brussels Guarantee Fund for government guarantee
•
SOWALFIN for guarantees and subordinated loans
The “Agentschap Ondernemen” guides SMEs in finding
the most relevant support actions. The website
http://www.agentschapondernemen.be provides the
necessary information, together with a subsidy database.
For Brussels, there is www.premieskmo.be and for
Wallonia www.creation-pme.wallonie.be.
In Flanders there is also the SME portfolio. This is a web
application through which entrepreneurs can obtain up
to €40.000 in subsidies each year. The aid can be
obtained when purchasing services provided by
recognized service providers in six areas:
1.
Training: Training programs attended by all people
employed (employees and employers) in the
enterprise, with the aim of improving the current or
future operation of the enterprise. Legally obligatory
training programs are also eligible.
2. Advice: Written, specific, valuable suggestions and
recommendations consisting of an analysis of the
problem, an actual advisory opinion, an
implementation
plan
and
assistance
in
implementing that plan. An advisory opinion is
always in writing and tailor-made for the enterprise.
Legally obligatory and periodical advisory opinions
are excluded from aid. Services regarding subsidies,
guidance and the implementation itself are not
eligible either
3. Technology watch: A study providing an answer to a
specific technological knowledge question with
regard to a product, process or service, tailor-made
for the SME.
63
State and Legal Framework in Belgium – Institutional Structure
Institutional Structure (2/2)
4. Advice for internationalization: Written, specific,
efficient
suggestions,
studies,
plans
and
recommendations with regard to internationalization.
5. Strategic advice: A written tailor-made advice that
pertains to a turning point within the enterprise and
leads to decisions that are hardly irreversible. The
advice offers a long term solution and influences the
whole organization.
6. Coaching: counselling services aimed at improving
the personal effectiveness of the coached person in
his/her business processes. This pillar focuses at
coaching growth companies and the transfer of
companies.
This aid applies following percentages and upper limits:
The SME portfolio is oriented towards practitioners of
‘liberal professions’ and SMEs whose operational
headquarters are located in the Flemish Region. Only
enterprises that fit the definition of an enterprise and
with an acceptable legal form (e.g. not-for-profit
organizations are excluded) and an acceptable main
activity on the basis of the NACE code can apply for
aid.
The service providers that are engaged must be
recognised as such. A survey of the recognised service
providers per area can be found on the website
www.kmo-portefeuille.be.
Table-20 SME portfolio aid percentages and aid upper limits
50%
50%
75%
Advice on
internationalisation
50%
€ 2.500
€ 2.500
€ 10.000
€ 5.000
Training
Aid %
Aid upper limit
per pillar
Max per period
Period
Advice Technology watch
€ 15.000
Strategic advice Coaching
50%-75%(*)
50%
€ 25.000
€ 10.000
€ 25.000
(*) 75% support for advice in
drawing up a relaunch plan
for enterprises in danger of
getting into difficulty and in
opportunity analyzes for
growth companies
1 year
64
State and Legal Framework in Belgium – Legislative Framework Regarding the Development of Strategy
Legislative Framework Regarding the Development of Strategy
(1/3)
While there is no real legislative framework in place,
there are a range of Flemish subsidies available to SMEs
to develop innovation and strategy.
For Flemish SMEs there is for example an SME
Programme (SME feasibility study and an SME
Innovation Project). They are supported by the IWT
(Agentschap voor Innovatie door
Wetenschap en
Technologie – Agency for Innovation through Science
and Technology). IWT is the government agency for
Innovation by Science and Technology. They help
Flemish companies and research centres in realizing
their research and development projects. They offer them
financial funding, advice and a network of potential
partners in Flanders and abroad. They also support the
Flemish Government in its innovation policy. See
http://www.iwt.be/subsidies/kmo-innovatie,
http://www.iwt.be/english/funding/subsidy/sme-study.
Some relevant subsidies:
SME
feasibility
study
from
IWT
http://www.agentschapondernemen.be/maatregel/portf
olio-haalbaarheidsstudies
•
•
•
An SME feasibility study focuses on the acquisition
of knowledge and informed understanding of the
possibilities and feasibility of an innovation and the
subsequent innovation path. 'Innovation' should be
understood as 'a renewal for SMEs with a clear
impact on the companies' activities'.
All the knowledge acquisition activities which
contribute substantially to the definition of the
innovation path are eligible for funding. The SME
may provide the knowledge development
independently – with or without recruiting the
necessary skills – or collaborate with research
institutions, other companies or subcontractors.
Only Flemish SMEs that meet the European criteria
for an SME are eligible for SME feasibility study
grants. The applicant company must have (or will
have) its operational headquarters in Flanders and
must (will) perform economic activities there. Even
companies in the social profit sector may apply, if
they can demonstrate sufficient economic
valorization potential in Flanders. Another
condition is that the company should have a legal
personality upon signing the agreement.
65
State and Legal Framework in Belgium – Legislative Framework Regarding the Development of Strategy
Legislative Framework Regarding the Development of Strategy
(2/3)
•
•
•
•
Both individual Flemish SMEs and groups of
business partners – several Flemish companies that
bear the risk and costs of the study – may apply.
The business partners also share the ownership and
exploitation rights to the potential study results.
Collaboration with research partners such as
universities, third-level institutions and collective
centres is possible in the implementation of an SME
feasibility study. Task packages can also be
outsourced to subcontractors. Both the research
partners and the subcontractors may be located
abroad. The applicant company bears the cost of the
research partners and subcontractors; it can include
these in the study.
An SME feasibility study lasts up to 12 months. Its
budget should amount to at least €10.000.
The funding for an SME feasibility study takes the
form of a grant calculated on the basis of acceptable
costs. The aid rate is 50% and the funding may not
exceed €25.000. Under certain conditions IWT may
raise this ceiling to €35.000 or even €50.000. If the
SME feasibility study includes a preparatory study
for a project of international cooperation, the rule of
thumb is that the grant is capped at €10.000.
• Per calendar year, each SME can receive funding for
three SME feasibility studies (including R&D
feasibility studies).
SME
innovation
subsidies
from
IWT
http://www.agentschapondernemen.be/maatregel/kmoprogramma-innovatiesteun-voor-kmos
•
•
-
The Flemish Government wants to stimulate
innovation in Flanders. Therefore, it grants IWT
annually the budgets necessary to finance research
and development (R&D) by and for Flemish
companies. All types of companies are eligible for
R&D funding, even if their innovative projects are
non-technological. Companies can apply for R&D
funding throughout the year. IWT evaluates the
applications based on multiple criteria. During
these evaluations, they attach equal value to the
quality and the valorization of the research and/or
development.
Important is that it are not only technological
projects that can receive support, but also nontechnologic knowledge collecting activities.
66
State and Legal Framework in Belgium – Legislative Framework Regarding the Development of Strategy
Legislative Framework Regarding the Development of Strategy
(3/3)
•
The subsidy is a percentage of the accepted costs.
These are mainly personnel costs, but can also
include direct costs (depreciation of equipment) and
indirect general costs.
There are also a whole range of subsidies and support for
innovation
in
Flanders
(see
http://www.agentschapondernemen.be/), e.g. PMVInnovatiemezzanine, Vlaams Innovatiefonds (VINNOF),
Investment related tax deduction, Tax credit for research
and development.
67
Section 4
Findings of Analysis of the Current
Situation and Needs Study
4.1 Key Findings –Turkey
69
4.2 Key Findings – France
79
4.3 Key Findings – Belgium
89
At a glance
This section provides the analysis of the answers to the survey that was conducted in Turkey, France and
Belgium. The survey questionnaire contributed to drawing a better picture of the SMEs’ current state of art.
Questionnaires were applied to different regions of each country. 205 SMEs from Turkey, 161 from France and
31 from Belgium answered the questionnaire.
68
Section 4.1
Key Findings - Turkey
69
Findings of Analysis of the Current Situation and Needs Study – Key Findings, Turkey
Questionnaire Participant Demographics
Graph-6 Countries in which companies are active
In order to define the needs of small enterprises in
Turkey, 205 questionnaires are filled in by different SMEs
from different regions of Turkey. Graph-7 summarizes the
foundation year of the SMEs which participtate the
survey. 73% of the participants are the SMEs which is
founded after 2000.
40
14
2
2
national
2
international
national & international
national & europe
europe
137
Most of the participants (68%) are operating in national
level. 32 % of them are involved with import & export,
and only 5% of the participants actively have operations
in Europe.
Average number of workers of the participants is 19 and
average number of apprentices is 1.
Graph-7 Foundation year of
questionnaire participants
5
europe & international
national, europe, international
Sectoral distribution of the participants is summarized on
the graph-8 below:
Graph-8 Sectors participators operating
# of SMEs
29
23
32
41
52
53
20
12
18
11
11
7
6
5
2
2
70
Findings of Analysis of the Current Situation and Needs Study – Key Findings , Turkey
There is a lack of professional support & education on strategic
management
Graph-9 Does your company follow a
specific pre-defined strategy?
Graph-10 Do you think you have sufficient resources
at present in terms of strategic management training
and strategic management support?
No
25%
Yes
37%
Yes
75%
75% of the participants claimed that their company
follows a pre-defined strategy. They also stated that
this strategy is well understood by the employees.
However, 63% of the SMEs think that they do not
have sufficient resources at present in terms of
strategic management training and strategic
management support.
No
63%
These two answers seems to be different at the first
glance. However, it shows that most of the SMEs
defined their strategies without a professional
support. There is a lack of strategic management
training due to lack of resources. This situation may
pose a problem on the quality of the current strategies
of the SMEs.
71
Findings of Analysis of the Current Situation and Needs Study – Key Findings , Turkey
The motivation behind the idea of investment on strategy
Table- 21 What motivates you to invest in training on strategy development or strategic
planning?
Response %
In terms of strengthening your business
I want to learn how to increase profitability
67%
I want to learn how to increase market share
61%
I want to learn how to increase my sales
58%
I want to learn how to compete with my competitors
56%
I want to learn how to develop marketing capabilities
52%
I want to learn how to give a clear direction to my organization
48%
I want to learn how to improve our business processes
44%
I want to learn how to develop a better organizational structure
43%
I want to learn how to extend social networks
42%
I want to learn how to build a (more) powerful brand
41%
I want to learn how to cope with environmental challenges/changes
41%
I want to learn which markets I can invest in
37%
I want learn how to solve my financial issues
30%
I want to learn how to export my products
2%
In terms of considering external influences
If my competitors invest in training, then I think I should invest in it as well
36%
If government regulation will force me to invest in training, then I will
invest in it
41%
If my institutional customers will force me to invest in training, then I will
invest in it
47%
I do not believe that external influences can impose on me to invest in
training
24%
Participants stated the reasons
listed on the left that motivates
them to investing in training
activities on strategy. The table
summarizes what they are expecting
from a strategic management
training. Beside expectations, these
statements shows what they
understand from strength. They
want to build their strategies in such
a way that these strategies meet
their needs and made their business
stronger.
The results
show that external
influences are not as effective as
some internal concerns. Only 36%
of the participants answered they
would follow their competitors’
actions on strategy training.
However, they also put emphasis on
the force of customers (47%).
72
Findings of Analysis of the Current Situation and Needs Study – Key Findings , Turkey
Barriers that prevent SMEs from investing in strategy training
Graph-11 What kinds of barriers do you face when wanting to invest in training on strategy
development or strategic planning?
64.1%
60.9%
50.5%
41.1%
34.4%
25.5%
Lack of
(financial)
resources
Lack of time
Cost of training
Lack of
information
about
organization(s)
who can help
me
SMEs defined their obstacles which prevent the
investment on strategy training as showed in the
diagram above. Participants mostly want to avoid the
financial and time cost of the trainings. The answers
indicate that most of them are aware of the
contribution of strategic training on their
development. Only 25,5%of the SMEs stated that they
do not know how training on strategy development
can help them.
Lack of
information
about courses
or training
I don’t know
how training
on strategy
development
can help me
19.3%
Lack of
relevance in
terms of
Strategic
Management
The answers also implies that there is a significant
lack of knowledge about which organizations to go
when a SME wants to get professional consultancy.
41,1% of the SMEs stated that they do not have
information about organizations that can help them.
73
Findings of Analysis of the Current Situation and Needs Study – Key Findings , Turkey
How to overcome the barriers that prevent SMEs from investing in
strategy training
Table-22 What can be done to overcome these barriers on training on strategy development or strategic planning?
Access to (financial) resources, including e.g. strategy development consultancy subsidies
69,6%
Concise modular training courses
59,7%
Online version of the training
47,1%
Information about the providers of training and the available courses
40,8%
Assistance in defining a clear approach towards strategic development or strategy planning
35,6%
Explanation on how the training will be a benefit for my business
25,1%
Testimonials from business leaders
22,5%
SMEs are also asked what should be done to eliminate
these barriers. Yet, the solutions still imply the
importance of finance on strategic training. Most of
the SMEs are reluctant to create budget for such
training. The answers also intimate that there is a
strong need for concise training materials; such as
modules, online platform and displaying works to
increase the awareness on the subject.
An online version of strategy training would be a
permanent solution for overcoming these barriers.
Firstly it would not create financial liability to the
SMEs, it will be free. This accessibility would create a
flexible platform to meet the different needs and
conditions of SMEs.
74
Findings of Analysis of the Current Situation and Needs Study – Key Findings , Turkey
Tendency of SMEs on making assessments for the affects of
external conditions & internal activities
Graph-12 Do you assess on a regular basis how the “outside world”, as
well as your internal existing activities and approaches affect your
business?
Internal activities
Environmental
Legal Policies
Technological
Social
Economic
61.2%
50.8%
57.9%
53.0%
45.0%
58.6%
The diagram above summarizes the SMEs assessment
of their external conditions and internal activities on
affecting their business. Almost half of the SMEs do
not make such assessments. These answers intimate
that while %61 of them putting emphasis on internal
activities, most of the SMEs do not make any PESTEL
(Political, Economic, Social, Environmental and
Legal) analysis properly.
38.8%
49.2%
42.1%
Yes
No
47.0%
55.0%
41.4%
Considering the internal analysis, when SMEs are
asked how they make their analysis on their internal
activities (production, marketing, human resources,
purchasing, technology, logistics etc.) most of the
participants stated that they perform SWOT analysis.
75
Findings of Analysis of the Current Situation and Needs Study – Key Findings , Turkey
The level of knowledge and need on strategic analytical tools
Graph-13 Does your firm need training on what analytical tools exist,
and how they can be employed in order to identify external
opportunities and threats and internal strengths and weaknesses?
I don’t know about it, and do need training on what it is and how to use it
I know about it and how to use it, and do not need training
I don’t know about it and do not need training
76.1%
The Voice of the Customer (VOC)
11.4% 12.5%
The Strategy Canvas
73.7%
8.9%
17.3%
Portfolio Analysis (The…
73.7%
7.8%
18.4%
Portfolio Analysis (BCG Matrix)
72.7%
7.4%
19.9%
Porter's 5 Forces
72.8%
7.8%
19.4%
PESTEL Analysis
71.7%
11.7%
McKinsey 7-S
74.9%
4.5%
Experience Curve Analysis
73.0%
9.0%
Cognitive Mapping
Porter’s Value Chain Analysis
Product Life Cycle Analysis
69.1%
72.6%
66.7%
76.6%
PIMS Analysis
SWOT Analysis
57.5%
9.4%
16.7%
20.7%
The diagram on the left
summarizes the SMEs level of
knowledge on the analytical
tools of strategy. Other than
popular
SWOT
analysis,
approximately only 10% of the
SMEs are aware of the other
tools. Majority of them are
willing to take training about
these tools.
Some of the SMEs stated that
they do not need training even
they do not know the tool.
They specify their reasons as
follows:
Graph-14
52.6%
18.0%
44.0%
19.0%
21.5%
10.1%
20.8%
17.3%
12.6%
10.9% 12.5%
33.3%
9.1%
I don’t have the
resources
internally to use
any of them
I lack the time
I don’t believe
in it
76
Findings of Analysis of the Current Situation and Needs Study – Key Findings , Turkey
Preferred training provider & location
Graph-15 What is your preferred provider of
training on strategic management?
56.4%
47.9%
37.8%
33.0%
Graph-16 What is your preferred location of
training on strategic management?
29.3%
External
Training with Training with
In-house
Training with
training
Universities
State and
training
Umbrella
consultant(s)
Governmental consultant(s) Organizations
Agencies
46.3%
Distance
Learning /
Online
Training
41.1%
32.6%
31.1%
22.6%
In-house Away from the In-house Away from the
training during workplace
training
workplace
working hours
outside
outside
during
working hours working hours working hours
SMEs who are willing to take the training are asked
where and by whom they want to be trained. The
answers intimate that most of the participants
consider online training as a significant method.
Moreover they want to see external consultants and
universities as training provider mostly.
77
Findings of Analysis of the Current Situation and Needs Study – Key Findings, Turkey
Summary of Findings - Turkey
This survey results indicate that SMEs are mostly (75%) claiming that they have a pre-defined strategy, however they
are not conducting the strategy development in a systematic way. As an instance the proportion of SMEs which make
assessments for the affects of external conditions & internal activities is only about 50%. Even this 50% does not make
these assessments in a systematic way, the level of knowledge and need on strategic analytical tools are not sufficient. (
Over 80% of the participants do not have adequate information to apply these tools.)
Participants claim that they do need training on these, however they can not provide the financial resources and time to
do so. Online training would be a solution on strategy development training by decreasing the financial costs and
eliminating the time problem of SMEs.
78
Section 4.2
Key Findings - France
79
Findings of Analysis of the Current Situation and Needs Study – Key Findings, France
Questionnaire Participant Demographics
As a reminder, the objective of this study is to set up an
online training platform and an online training program
that are innovative and whose theme is the strategic
development of SMEs.
The analysis of the answers given to the questionnaire has
enabled us to highlight the practices of company
managers in the fields of management and strategy
planning. This was done in order to offer them training
courses tailored to their needs.
The questionnaire was submitted to company managers in
the Vaucluse department, in the South of France. 161
managers answered the questionnaire. The answers were
analyzed using Microsoft Excel.
Graph-17
Geographical areas covered
11
21
Local and departmental
area
40
89
regional area
national area
EU and international
Graph-18
Years of existence
60
58
58
56
54
52
52
51
Number of businesses
50
48
46
0 to 3 years
4 to 10 years
More than 10
years
Among the SMEs that answered the questionnaire,
58 said that they have been operating for 10 years,
i.e. 36 % of the companies surveyed. And 68 % were
set up more than three years ago
89 companies (or 55.3 %) operate nationally,
whereas only 6.8 % operate internationally, inside or
outside Europe.
Then, more companies operate at a regional level
than locally or in the Vaucluse Department, (25 %
against 13 %).
80
Findings of Analysis of the Current Situation and Needs Study – Key Findings, France
Most of the SMEs in France claim that they don’t have a defined
strategy and resources to build one
Graph-19 Does your company follow a
specific pre-defined strategy?
Yes
27,90%
Graph-20 Do you think you have sufficient
resources at present in terms of strategic
management training and strategic
management support?
No
49%
No
72,10%
72 % of the companies surveyed said that they don't have a
defined development strategy; whereas having a clear
strategy is essential for the sustainability and the
development of the company. We may think this is
because of a lack of training or information regarding the
numerous advantages offered by the formulation of a good
development strategy.
Yes
51%
Today, half of the company managers think they
don't have the necessary resources (training, support
from the Chamber of Craft and Small Business) to
set up a strategic management. This could explain,
in part, the answers given to the previous question.
81
Findings of Analysis of the Current Situation and Needs Study – Key Findings, France
Motivations to invest in training on strategy
0.7
Graph-21 What motivates you to invest in training
on strategy development or strategic planning?
64%
0.6
0.5
0.4
0.3
0.2
48%
41%
34%
33%
32%
28%
23%
18%
10%
0.1
0
5%
This question is asked company
managers to find the reasons why
they would decide to take part in
training in strategic development.
The main reason would be to
increase
their
company
profitability.
The second would be to better face
competitors, and the third would be
to boost sales.
Company managers are therefore
aware that training courses can
offer many assets. So, we can see
that the obstacles to defining a
strategy or following a training
course are not linked to a lack of
information.
82
Findings of Analysis of the Current Situation and Needs Study – Key Findings, France
Barriers faced in investing in training on strategy
Graph-22 What kinds of barriers do you face when wanting to invest in training on strategy
development or strategic planning?
61%
53%
46%
31%
Lack of time
Lack of
(financial)
resources
Cost of training
27%
Lack of
information
about
organization(s)
who can help
me
Analyzing the answers to this question we can
understand the reasons why company managers
don't want to invest in this type of training. The
first reason is a lack of time (61 %),, the second is a
lack of financial resources (53 %), and the third
most important reason is the cost of training
courses (46 %).
Lack of
information
about courses
or training
27%
Lack of
relevance in
terms of
Strategic
Management
24%
I don’t know
how training on
strategy
development
can help me
We can also notice that 31 % of company managers
lack information on institutions that could help
them. 24 % lack information on the advantages
they could gain by following training courses.
83
Findings of Analysis of the Current Situation and Needs Study – Key Findings, France
How to overcome these barriers?
Table-23 What can be done to overcome these barriers on training on strategy development or strategic
planning?
Access to (financial) resources, including e.g. strategy development consultancy subsidies
56,3%
Assistance in defining a clear approach towards strategic development or strategy planning
42,7%
Information about the providers of training and the available courses
38,5%
Online version of the training
37,5%
Explanation on how the training will be a benefit for my business
37,5%
Concise modular training courses
36,5%
Testimonials from business leaders
15,6%
This part of the questionnaire is related to the
previous one. Analyzing these answers, we can
define the actions that can be undertaken to help
company managers overcome the obstacles that
were previously highlighted. About 60 % of
company managers would like to get some help to
identify the financial resources they can use to
finance their training courses 43 % would like to
get some advice/help to understand what is
company development or strategic management
and how it can be formulated and set up for their
own company. Previously, we have explained that
the main objective of this questionnaire is to
develop an innovative online training platform
and program on the theme of SME's strategic
development. This option was chosen by almost
38 % of the managers surveyed.
84
Findings of Analysis of the Current Situation and Needs Study – Key Findings, France
Tendency of SMEs on making assessments for the affects of
external conditions
Graph-23 Do you assess on a regular basis how the “outside world”, as well as your
internal existing activities and approaches affect your business?
Economic
28.00%
Internal activities
23.20%
Environmental
22.90%
Legal policies
Technological
Social
72.00%
76.80%
Yes
27.10%
32.70%
18.60%
77.10%
No
72.90%
67.30%
81.40%
This diagram shows that company managers demonstrate little interest in the assessment of
their environment.
More than half of them don't analyze their environment and, therefore, cannot deal with
unexpected situations.
85
Findings of Analysis of the Current Situation and Needs Study – Key Findings, France
The level of knowledge and need on strategic analytical tools
Graph-24
I know about it and how to use it, and do not need training
I don't know about it, and do need training on what it is and how to use it
I don't know about it and do not need training
The Voice of the…
The Strategy Canvas
10.6%
6.5%
46.8%
41.9%
42.6%
51.6%
Portfolio Analysis
8.6%
BCG Matrix
3.2%
Porter's 5 Forces
5.3%
39.4%
55.3%
4.2%
41.1%
54.7%
3.2%
43.6%
53.2%
PESTEL Analysis
McKinsey 7-S
Experience Curve…
Cognitive Mapping
Porter's Value…
Product Life Cycle…
43.0%
38.7%
58.1%
11.5%
35.4%
8.5%
42.6%
4.3%
42.0%
18.6%
PIMS Analysis
3.1%
SWOT Analysis
8.2%
48.4%
53.1%
48.9%
The diagram on the left shows the training
needs regarding analytical tools, and how to
use those tools.
About half of the company managers don't
use these tools and said that they don't want
to use them. In the other half, about 40 %
can't use them but would like to follow a
training course to learn how to use them; and
10% can already use them, so don't need any
training.
Among those who don't use those tools, 47 %
said they don't have time to use them, almost
28% think they are not efficient and almost
58% answered that they don't have the
internal resources to use them.
Graph-25 If you don’t know anything about the
aforementioned analytical tools and do not need
training on them, could you please specify why?
53.7%
38.1%
45.9%
48.0%
43.3%
51.0%
43.8%
52.8%
47.2%
I don't have the
ressources internally
to use any of them
I lack the time
27.8%
I don't believe in it
86
Findings of Analysis of the Current Situation and Needs Study – Key Findings, France
Preferred training provider & location
Graph-26 What is your preferred provider of training
on strategic management?
Graph-27 What is your preferred location of training on
strategic management?
76.1%
36.4%
18.2%
External
training
consultants
19.3%
12.5%
In-house
Training with Training with Training with
training
State and
professional Universities
consultants Governmental organization
Agencies
As for the training provider, 76 % answered they
would choose the Chamber of Craft and Small
Business or any other public body.
25.6%
52.3%
38.4%
12.8%
14.0%
Away from the Away from the
In-house
In-house
Distance
workplace
workplace
training during training outside learning / Online
during working outside working working hours working hours
training
hours
hours
Regarding the location of the training courses on
strategic management, 52% of the managers surveyed
said they would prefer online or distance course; 38 %
answered they would rather receive off the job training,
«away from the work environment or after working
time».
87
Findings of Analysis of the Current Situation and Needs Study – Key Findings, France
Summary of Findings - France
Thanks to this questionnaire we can see the potential benefits of developing an online training platform and
program on the theme of SME's strategic development.
Indeed, the analysis of this questionnaire highlights the absence of strategic management in SME's. SME's
Managers said the main reasons are the lack of time, information on training centers and also a lack of financial
resources. The questionnaire also tells us that managers would rather receive off the job training and would
prefer online and distance courses to save time.
As for the training provider, they would choose the Chamber of Craft and Small Business or any other public
body.
It would be therefore interesting and innovative for the Chamber of Craft and Small Business to create an online
platform and to communicate about it and about its benefits.
88
Section 4.3
Key Findings - Belgium
89
Findings of Analysis of the Current Situation and Needs Study – Key Findings, Belgium
Questionnaire Participant Demographics
Out of a sample of 31 SMEs that participated, 13 were established since 2000, of which 6 were active on a
European. 20 SMEs has less than 100 employees, while 10 worked with apprentices (mainly bigger SMEs).
They were active in following sectors, healthcare and social services, and services being the largest group:
Graph-28 Questionnaire Participant Demographics in Belgium
29.0%
25.8%
25.8%
12.9%
9.7%
6.5%
6.5%
3.2%
3.2%
3.2%
3.2%
3.2%
90
Findings of Analysis of the Current Situation and Needs Study – Key Findings, Belgium
Most of the SMEs claim that they have a pre-defined strategy
Graph-29 Does your company follow a specific
pre-defined strategy?
No
13%
Yes
88%
Asked if their organisation had a predefined
strategy that was being following, following
feedback was received that indicates the majority of
the surveyed SMEs has a strategy in place.
Graph-30 Is this strategy well-known
throughout the company by all
employees?
No
36%
Yes
64%
However, when asked whether this stragegy was well
known throughout the company, almost 36% indicated
that the strategy was not well known throughout the
company.
91
Findings of Analysis of the Current Situation and Needs Study – Key Findings, Belgium
Barriers faced in investing in training on strategy
Asked if they have the necessary means to
support strategy training, the feedback
obtained indicates there is obviously a lack
of financial means to do so. Additionally,
information is lacking on the availability of
such courses (where is this provided, who
provides it, etc.). The following 2 graphs
illustrate this.
Graph-31 Do you think you have
sufficient resources at present in
terms of strategic management
training and strategic management
support?
Graph-32 What kinds of barriers do you face when wanting to
invest in training on strategy development or strategic
planning?
81.3%
62.5%
56.3%
31.3%
25.0%
Yes
27%
No
73%
6.3%
Lack of time
Cost of
training
Lack of
(financial)
resources
Lack of
Lack of
information
information
about
about courses
organization(s)
or training
who can help
me
Lack of
relevance in
terms of
Strategic
Management
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Findings of Analysis of the Current Situation and Needs Study – Key Findings, Belgium
How to overcome these barriers?
Table-24 What can be done to overcome these barriers on training on strategy development or strategic planning?
Access to (financial) resources, including e.g. strategy development consultancy subsidies
Concise modular training courses
Information about the providers of training and the available courses
Assistance in defining a clear approach towards strategic development or strategy planning
Online version of the training
Testimonials from business leaders
Explanation on how the training will be a benefit for my business
87.5%
56.3%
31.3%
31.3%
18.8%
18.8%
12.5%
When asked how these barriers could be overcome, the access to financial sources was given as the main
element in overcoming the barriers. This is combined also with the fact that not all SMEs are aware of
what subsidies exist to support such training (e.g. SME portfolio).
93
Findings of Analysis of the Current Situation and Needs Study – Key Findings, Belgium
Motivations to invest in training on strategy
When looking at the motivation for strategy training following diverse results were gathered:
Table-25 What motivates you to invest in training on strategy development or strategic planning?
I want to learn how to cope with environmental challenges/changes
I want to learn how to compete with my competitors
I want learn how to increase profitability
I want to learn how to increase market share
I want to learn how to increase my sales
I want to learn how to give a clear direction to my organization
I want to learn which markets I can invest in
I want to learn how to develop a better organizational structure
I want to learn how to improve our business processes
I want to learn how to build a (more) powerful brand
I want to learn how to extend social networks
I want learn how to solve my financial issues
I want to learn how to export my products
Other, please specify
Response
Percent
68,8%
18,8%
31,3%
12,5%
31,3%
56,3%
18,8%
62,5%
56,3%
43,8%
37,5%
25,0%
18,8%
6,3%
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Findings of Analysis of the Current Situation and Needs Study – Key Findings, Belgium
Tendency of SMEs on making assessments for the affects of
external conditions
Next we wanted to know what external influences
pushed them towards investing in such training.
Graph-33
53.3%
40.0%
40.0%
20.0%
If my competitors If government If my institutional I do not believe
invest in training, regulation will
customers will
that external
then I think I
force me to invest force me to invest influences can
should invest in it in training, then I in training, then I impose on me to
as well
will invest in it
will invest in it
invest in training
Next we wanted to know how respondents assess on a
regular basis how the “outside world”, as well as their
internal existing activities and approaches affect their
business. Following replies were collected for the different
domains:
• Economic aspect: almost 70% did so, with 4 mentioning
explicitly they use the SWOT analysis for this.
• Social aspect: 57% indicated they did so, albeit this was
done in a much less structured manner.
• Technological aspect: almost 67% did so, albeit this was
also done in a much less structured manner.
• Legal policies: only 46% did so, in no structured
manner.
• Environmental: only 40% did so, in no structured
manner.
• In terms of internal activities (production, marketing,
human resources, purchasing, technology, logistics
etc.): close to 79% did so, mentioning among others the
usage of the SWOT analysis and the balance score card.
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Findings of Analysis of the Current Situation and Needs Study – Key Findings, Belgium
The level of knowledge and need on strategic analytical tools
Table-26
Tools
SWOT
PIMS
PLA
Porter Value Chain
Gognitive mapping
Experience curve
analysis
7S
PESTEL
Porter 5 forces model
BCG matrix
Portfolio analysis
Strategic canvas
VOC
I do not know but
I know and I use it would like to use it
and need training
Not interested
87.5%
13.3%
37.5%
25%
26.7%
6.3%
53.3%
25%
43.8%
46.7%
6.3%
33.3%
37.5%
31.3%
26.7%
18.8%
56.3%
25%
18.8%
13.3%
28.6%
23.1%
14.3%
20%
13.3%
31.3%
40%
42.9%
46.2%
42.9%
46.7%
46.7%
50%
46.7%
28.6%
30.8%
42.9%
33.3%
40%
In a next question, the knowledge on
the usage of analytical tools was
analysed. While they indicated they
know about these tools (especially
SWOT tools), the practical knowledge
is rather limited (exception for SWOT
analysis), while the interest in training
is substantial. Reason for this is linked
to the lack of internal financial and
human resources to use them, as well
as the lack of time.
Graph-34 If you don’t know anything about
the aforementioned analytical tools and do
not need training on them, could you please
specify why?
100%
66.7%
16.7%
I lack the time
I don’t have the I don’t believe in it
resources internally
to use any of them
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Findings of Analysis of the Current Situation and Needs Study – Key Findings, Belgium
Preferred training provider & location
Graph-36 What is your preferred provider of training on strategic
management?
Graph-35 What is your preferred location of
training on strategic management?
75.0%
68.8%
62.5%
43.8%
37.5%
37.5%
25.0%
25.0%
Away from
In-house
In-house
Away from
Distance
the workplace training
training the workplace Learning /
during
during
outside
outside
Online
working hours working hours working hours working hours Training
Regarding the preferred places to get the training, the
SMEs indicated a preference for training during the
working hours but preferably away from the
workplace.
37.5%
31.3%
6.3%
External
Training with In-house Training with Training with Other, please
training
Umbrella
training
Universities
State and
specify
consultant(s) Organizations consultant(s)
Governmental
Agencies
The preferred provider of training on strategic management
is as stated above.
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Findings of Analysis of the Current Situation and Needs Study – Key Findings, Belgium
Interviews feedback
In addition to the survey we also conducted some
interviews with SME CEOs and collected following data
that focused on the poor entrepreneurship skills present
in employees that just come from school:
• There is resistance to entrepreneurship training at
schools by teachers as it means some topics will have
to be reduced in hours to allow for more
entrepreneurship training.
• Training
methodology
is
a
challenge
as
entrepreneurship is a difficult topic to teach as it
contains following elements:
o Basic business skills such as accounting,
finance, strategic business planning and
business law
o Fundamental skills such as people management
skills, opportunity recognition, organizing
skills, business ethics and negotiation skills.
o Entrepreneurial skills: creativity, risk-taking,
initiative, self guidance
• There is need for good practices in the training, as
often they are considered to be rather weak, especially
when many given good practices have turned out to be
bad practices (see MBA courses) while still being
taught as good and successful practices.
• There is a need for project driven teaching/training
(see regional technological centres in Flanders that
facilitate the collaboration between schools and
businesses).
• There is also a need for teacher training with regard to
entrepreneurship.
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Findings of Analysis of the Current Situation and Needs Study – Key Findings, Belgium
Summary of Findings - Belgium
Following conclusions can be made regarding the survey among Flemish SMEs:
• A majority of the surveyed SMEs have a predefined strategy, however, this strategy is often not known by company
employees.
• Almost 75% of the SMEs indicate a lack of resources to provide such strategy training. These resources are both in
terms of time and financial resources.
• The motivation for such strategy training is quite diversified, but it is characteristic that is mostly legislation that
forces them to invest in training overall.
• It was indicated that modular training is preferred, whereby those modules can be selected that are of interest.
• The external world is analysed by the surveyed SMEs, but not really via formalised tools (very limited usage of tools,
with exception of SWOT analysis). While there is an interest in getting training in these tools’ usage, the aspect of
limited (financial and human) resources is omnipresent.
• If training is to take place, such training is requested mainly from an external consultant or an umbrella organisation
during the working hours and outside the company premises.
99
Section 5
Final Remarks
100
Final Remarks
In Conclusion...
The Country Reports for Current Situation & Analysis of Needs of SMEs on Strategy is a part of the transfer of
innovation project STeP, funded by the EU within the scope of the Life Long Learning and specifically the Leonardo da
Vinci Program. It was transferred from the Agreement No 142823-LLP-1-2008-1-AT-LEONARDO-LMP project, named
as STRATEGY-TRAIN – Small Enterprises Strategic Development, and completed by MERIG – Multidisciplinary
European Research Institute Graz and their consortium.
Scope of the STeP project includes Turkey, France and Belgium. This report therefore aimed to provide information on
SMEs and their strategy education needs in the three aforementioned countries. To do this we first provide general
information & demographics about SMEs. Then we provide detailed information about the legislative framework for the
SMEs in each country.
To understand the strategy implementation of SMEs in a closer way, we conducted a survey with feedback from 205
SMEs in Turkey, 161 in France and 31 in Belgium. The results implied that there is an awareness about strategy and its
importance among SMEs, however they don’t have a systematic way to develop and implement strategies.
Results indicate that Turkish and Belgian SMEs proportion of having pre-defined strategy is over 75% while French
SME’s proportion is around 30%. Despite that French SMEs seem to provide positive answers in terms of having
sufficient financial resources for strategy education.
Motivation behind the strategy education needs vary among the countries. Belgian SMEs need the education mainly for
coping with the environmental changes and developing better organisational structures, while Turkish and French
SMEs need the education mainly for increasing their profitability. This may indicate that French and Turkish SMEs
have short term perspectives compared to Belgium.
The level of knowledge of strategic analytical tools are not sufficient, and this across all countries, while SMEs express
an interest in using them. SMEs also have a reluctance to allocate resources for strategy. SMEs indicated that the
biggest barriers on investing in strategy education are the lack of time and financial resources, including the cost of
training.
STeP aims to fulfil the aforementioned gaps by providing an online strategy training which will be accessible, free and
applicable for all SMEs in the participant countries, addressing topics that are of interest to the SMEs. This way, better
strategies to cope with an increasingly European and global market could be developed by the SMEs on a micro level.
101