SMEs cross border PROJECT PART- FINANCED BY THE EUROPEAN UNION
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1 SMEs cross border The concept of the Sub-theme Working Group Sub-theme 3.1. Cross-border co-operation in the field of SME development, R&D and innovation Key issues addressed a) Situation Development of economic activities in border regions is confronted with the specific problem that particularly small and medium sized enterprises (SMEs) are often active only within their country of origin. SMEs are often reluctant to develop their business across the border because of language and regulatory barriers. SMEs, which most often are owner/manager enterprises and family enterprises, do not have access to market information, know how and human resources the way multinational companies have in their different departments. Information on markets/marketing, legal issues, social security matters, contacts and co-operation opportunities must be provided by their intermediary organisations. Internationalisation of SMEs, promoting co-operation and easing the access to neighbouring markets have for many years been the focus of various projects of SME intermediaries, regional authorities etc. in border regions. Through Interreg III A or other instruments contacts, experience and knowledge have been built up with high specialisation on the specific cross border context. The intermediary organisations are the back offices for their regional SMEs. They research, arrange and publish information of cross border relevance and provide individual support and consultancy. Since general information on, for instance, legal requirements and intercultural aspects, is relevant for a large number of SMEs and too costly for each SME to research individually, the business intermediaries fulfil an important role in cross border development of economic activities. The organisation of business delegation trips and co-operation meetings additionally supports the contacts between SMEs on both sides of the borders. PROJECT PART- FINANCED BY THE EUROPEAN UNION
2 b) Needs The partners in this project have, on average, 5-10 years experience in cross border SME consultancy. They are highly specialized in their specific cross border context, bi- or trilateral legal, intercultural and personal (contacts) issues. There are, however, some questions which are important regardless of the particular border region where they are situated: How can SMEs be motivated for cross border activities in the first place? Which tools are needed to support SMEs in their first cross border steps? How can this support, which is economically not feasible and thus generally not provided by independent consultants, be provided, published and updated in a cost effective manner? In addition cross border SME information points are often also the point of reference for other business intermediaries in the region with less specific cross border experience for SMEs on internationalisation issues in general; i.e. for information on other European countries beyond the immediate neighbouring country. c) Topics The following topics, which pinpoint the above mentioned problems, will thus be highlighted in the course of the project: internationalisation of business support services support of start ups, technology transfer etc. in a cross-border context sectoral issues, e.g. structural change in the building/automotive/textiles etc. sector cross-border SME s ecommerce /SME intermediaries egovernment network human resources development in cross border context legal framework for entrepreneurship (taxation, certification, registration) Through co-operation, resources and opportunities will be maximised; a joint database will provide access to cross cutting topics. Signposting and a database of partners and regional networks of partners will provide access to information to enhance the services of each partner for their regional SMEs. The project is the starting point for the development of a network of networks of SME cross border information points and competence centres for SME internationalisation. Its main objective will be to bring previously unconnected partners together and to start a process for the development of a joint interregional European SME cross border consultancy. d) locations/background The SWG partnership reflects all the different types of border regions in the EU: - EU 15/EFTA border regions (NL/D)
3 - border regions between EU 15 and EU 10 regions (D/CZ/PL, I/SI, A/HU) - EU 10 border regions (LT/PL, CZ/PL) - border regions between new members states and accession countries (HU/RO) - border regions between new member states and third countries (LT/RUS, SI/KR,HU/YU (HU/RO/YU Interreg III A Neighbourhood Programme)) The meetings will take place in four representative regions: 1) German/Dutch border region in one of the oldest European Euregios 2) Lithuania/Marijampole region a new Member State region bordering Poland and the Russian enclave Kaliningrad 3) Nisa Region a central European region at the crossroads between old and new member states where 3 countries meet 4) Gorizia a formerly divided city situated in Friuli Venezia-Giulia and Slovenia The SWG partnership will be the nucleus of a future pan European network of SME cross border information points. Between them, the SWG partners can draw on many years experience in all possible border situations. This puts them into a position to develop a strategy for future cooperation which will be open to additional partners from these and other EU border regions. The methodology developed by the SWG partners by consensus will thus be representative of the situation in other European border regions. It is expected that until the end of the SWG the partnership will have extended to approx. 20 partners from European border regions. SWG Objectives The SWG partners pursue the following objectives: Setting up a network and communication structures between SME cross border information points ('network of networks'); Exchange on methodology and instruments; Development of new interregional activities between partners in different Euregios and regions adjacent to border regions; Promoting the internationalisation of SMEs through the development of transferable instruments and their implementation; Extend the network. These strategic objectives match the objectives each partner pursues in their regional/local context and adds an interregional component to regional/local development of cross border SME activities: 'network of networks' Within their regional/local projects partners have formed a network with business intermediaries from the same region and/or from the other side of the border(s). These
4 networks were formed in order to create synergies and to provide fast and efficient services in SME cross border/internationalisation consultancy. The economic development of border regions is closely connected to the ability of SMEs which are established in the region to find business and create jobs in the region. For historic, geographic or language reasons SMEs often stand with their back to the border. They operate with only half the radius they could have causing lower turnover and/or higher cost (due to longer distances across which services are provided and supplies are bought). SMEs own resources don t allow to research business partners in the neighbouring country and to follow up all legal and technical specifications related to cross-border business. As back office and think tank for their members business intermediaries provide this information in cross border networks. The SMEs cross Borders project aims to link up these networks to create further synergies and to provide better support for regional/cross border SME economic development. Methodology and instruments In order to make information and contacts in the specific regional/local cross-border context available to a large number of SMEs specific tools and methodologies were developed by the partners. Since SMEs are the vast majority of European enterprises (99 % of all enterprises in the EU are SMEs) a great number of mainly even small and micro companies request support from cross border information points. In order to meet this demand as individually as possible but also financially affordable a number of standardized and made-tomeasure tools for this target group have been developed. Examples are: fact sheets on neighbouring markets and legal conditions, on line databases (internet/intranet applications), benchmarking tools for internationalisation consultancy, recurring business delegation visits and cooperation meetings etc.these can be made available to a) business intermediaries within the same region which are not actually border regions b) business intermediaries from other (border) regions who are responsible for support to SME internationalisation The project will identify and catalogue best practise tools and methods to make them available to these two groups of intermediaries. A small separate travel cost budget is calculated for most partners so that business intermediaries (public equivalent bodies) from their regional/local networks who want to contribute to this 'map of competence' or who want to participate in its dissemination and use can participate as guests in project meetings. Interregional activities This 'map of competence' will also be a menu for future joint activities. These could take different forms: from staff exchanges and study visits to joint multilateral business delegations and co-operation events. A joint web based portal could be set up to ease the flow of information and to increase the efficient use of resources. (Experience shows that the same cross border information is often researched independently by different intermediaries in the same country even in the same region because of a lack of transparency and communication between
5 different projects.) These activities will be planned in the course of this project, in singular instances they could even be implemented in connection within other current projects (cf. co-operation meeting organised by a partner can be communicated to all with little extra cost). Generally, however, their implementation will be left to a future SME project which could probably be submitted under a future Interreg III C call. Since SMEs cross Borders is the first attempt at interregional networking between cross border SME intermediaries it will be the main task of the project to identify issues and to set an agenda for future joint projects. Internationalisation of SMEs The specialist cross border knowledge available in cross border projects shouldbe made available to other intermediaries in the region and to other regions. This will help to increase efficiency in SME development through internationalisation. First steps for networking this specialist knowledge will be taken in this project through making available the map of competence between the partners. A true interregional web based portal could be set up in a future joint project (cf. previous sub-objective). A needs analysis and feasibility check will be undertaken within this project by the project partners on the basis of their experience. Extend the network SWG partners will seek to involve additional partners either from their own or from neighbouring regions in the network and the follow up project. Several such partners have already voiced their interest in participation. It is thus foreseeable that the network will finally grow to between partners from all across Europe. Since most SWG partners are part of a regional cross border network the group of final beneficiaries is even bigger. Contribution to strategic RFO-goals Improve efficiency in cross border co-operation in the context of EU support programmes such as Interreg III A Further development of the economic fabric / cross border co-operation in the field of SME development Removing legal, social and psychological barriers between the member states In order to support these three strategic aims of the RFO the SWG will establish contact between different RFO member regions' cross border SME contact and information points. SWG partners are either implementing Interreg III A projects or are otherwise engaged in the provision of internationalisation support to SMEs. Through the respective regional Interreg projects they are in regular contact with their regional RFO main partner. Added Value for SMEs: easy and dependable access to SME information about other European markets
6 local/regional cross-border information point is access point also for more distant markets Added Value for cross border SME information points: extended European network access to a wide-ranging knowledge base for cross border SME consultancy in business intermediary organisations cost efficient provision of non-marketable information for SME internationalisation (non marketable information: awareness raising among local/regional SMEs for importance and added value of cross border activities; until such information is digested and implemented by SMEs a long time can pass (2-3 years); commercial consultants cannot offer this advice for acceptable rates they can step in for individual SME consultancy after public business intermediaries have provided basic preparation to SMEs for cross border and international activities) One Stop Shop for internationalisation of SMEs, beyond immediate neighbouring countries improved access to information relevant for the internationalisation of SMEs in other EU countries best practise and unbureaucratic support for SWG partners without regular or current regional cross border contacts/projects potential for growing into a European network SME cross border network with 2-3 times more partners/regions as present SWG Contact person Claudia Abold Landesgewerbeförderungsstelle des NRW Handwerks Tel abold@lgh.de
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