Conflavoro PMI - Confederazione Nazionale Piccole e Medie Imprese
CONFLAVORO PMI
Conflavoro è la principale associazione datoriale che tutela, promuove e rappresenta gli interessi delle piccole e medie imprese italiane afferenti ai principali settori merceologici.
ID: 007323695868-83
Lobbying Activity
Response to EU Start-up and Scale-up Strategy
17 Mar 2025
The European start-up and scale-up ecosystem plays a pivotal role in driving economic growth, competitiveness, and innovation. However, despite its potential, young and innovative businesses continue to face structural barriers that significantly hinder their development. Against the backdrop of rapid digital transformation and intensifying global competition, the European Union must adopt a strategic and coordinated approach to reinforce the position of European start-ups and scale-ups in global markets. Conflavoro PMI contributes to this discussion by addressing key challenges and proposing concrete measures to foster a more favorable environment for these enterprises. In the entrepreneurial landscape, the success of a start-up is not solely determined by an initial brilliant idea but by its ability to grow and adapt to market dynamics. Four key concepts play a fundamental role in this process: scalability, replicability, timing, and innovation. The development of these principles, examined in detail in the attached document, is hindered by the main challenges faced by start-ups and scale-ups, which are briefly analyzed below. Access to financing is one of the biggest obstacles for European start-ups, often forcing them to seek investment outside the EU due to fragmented financial markets. Strengthening regional funding mechanisms and promoting greater involvement of banks, private investors, and venture capital funds is essential to reducing this dependency. The need for a more integrated financial system is also reflected in proposals for a unified savings and investment framework, which would facilitate capital access for start-ups and SMEs while enhancing Europes competitiveness in key technological sectors. Regulatory complexity further hinders growth, as excessive administrative burdens and fragmented rules across member states limit start-ups' ability to scale and innovate. Simplifying public procurement and harmonizing regulations would foster a more competitive and resilient business environment. Ensuring financial stability and equitable access to capital through a more integrated banking system remains a key priority. Beyond financial and regulatory challenges, start-ups face difficulties in scaling their operations, expanding into new markets, and attracting skilled talent. Scalability allows businesses to grow efficiently, while replicability ensures their models can be expanded with minimal adaptation. The right market timing is crucial to success, but the lack of a supportive ecosystem often limits these opportunities. Additionally, disparities in infrastructure, knowledge networks, and access to resources create further barriers, making it essential to develop a more coordinated strategy to support innovation and entrepreneurship across Europe. To overcome these obstacles, Conflavoro PMI proposes a series of targeted measures. Training programs should be expanded to equip entrepreneurs with the skills needed to navigate financial management, marketing, and scaling strategies. Financial accessibility must be improved through dedicated grants, public-private funding mechanisms, and incentivized investment schemes. Greater flexibility in labor regulations would help start-ups adapt to dynamic market conditions, while administrative simplifications could alleviate bureaucratic burdens, particularly during the initial years of operation. Facilitating internationalization through tailored support programs and ensuring legislative stability at both EU and national levels would provide a more predictable and supportive framework for start-ups and scale-ups. In conclusion, fostering a robust start-up ecosystem requires a comprehensive and coordinated strategy that addresses financial, regulatory, and structural challenges. By implementing these policy measures, the EU can ensure that European start-ups and scale-ups have the resources they need to grow, compete, and succeed.
Read full responseResponse to Single Market Strategy 2025
31 Jan 2025
Conflavoro is the employers' association that supports the interests and needs of Italian SMES. SMEs account for over 99% of European businesses, employ around 100 million people, and contribute more than 50% to the EUs GDP. Despite their crucial role, they face growing challenges in an increasingly complex international landscape. In this context, a renewed and fully integrated Single Market is essential to eliminating barriers that still hinder SMEs' full participation. The development of the Single Market Strategy 2025 represents a unique opportunity to create an inclusive and supportive framework that fosters their growth and competitiveness. Over the past three decades, the Single Market has brought undeniable benefits, including increased trade, innovation, and mobility for European citizens. However, structural obstacles continue to limit competitiveness, particularly for SMEs. Administrative and regulatory burdens remain disproportionately high, with SMEs facing compliance costs 30% greater than those of large corporations. At the same time, geopolitical tensions and global supply chain disruptions put additional strain on businesses with limited resources, exacerbating economic uncertainty. Financial constraints also pose significant challenges, as SMEs struggle with restricted access to credit, rigid guarantee requirements, and delays in payments that reduce liquidity. Moreover, labor shortages and fragmented professional qualification recognition create further difficulties, making it harder for businesses to find skilled workers and expand across borders. To address these challenges, Conflavoro PMI advocates for a strategic approach that simplifies regulations, enhances financial support, and strengthens governance within the Single Market. Reducing regulatory fragmentation among EU member states is key to removing unnecessary administrative burdens and ensuring a more seamless business environment. Greater coordination between policies on labor, trade, and taxation is also needed to make the market more accessible to SMEs. Establishing a dedicated EU representative for SMEs could help oversee and direct policies that directly impact them, ensuring a stronger voice at the European level. Additionally, creating a specialized task force to monitor barriers and propose solutions would be instrumental in maintaining a dynamic and inclusive market. Beyond governance reforms, boosting the free movement of goods and services is essential to unlocking new opportunities for SMEs. The adoption of "servitization" models, where services are integrated into products, could significantly enhance competitiveness and adapt businesses to evolving market demands. Meanwhile, harmonizing the recognition of professional qualifications would facilitate labor mobility and make it easier for businesses to hire skilled workers across the EU. The shortage of qualified personnel is a major concern, particularly in the context of digital transformation and the green transition, where SMEs often struggle to keep pace. Increased investment in training programs, AI adoption, and digital tools could help bridge this gap and ensure businesses remain competitive. Furthermore, improving interoperability between digital public services across EU member states is crucial for streamlining bureaucratic procedures and reducing administrative complexity. Fiscal harmonization should also be pursued to eliminate unfair competition and lower cross-border trade barriers. At the same time, access to financial resources must be simplified through more flexible EU funding programs, expanded micro-credit options, and the introduction of dedicated financial instruments to support SME growth and innovation. So the Single Market Strategy 2025 has to benefits all businesses, becoming an advantage both for large corporations and facilitating SME growth. The EU "must think big" while prioritizing a "Think Small First" approach.
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