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SME Policy Index: Main Challenges of SME Greening in the Western Balkans and Turkey

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Regional Policy Dialogue Meeting “SMEs in a Green Economy”, 09 March 2018, Paris
Session 1, PAVLOVIC Jovana, OECD, Policy Analyst

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SME Policy Index: Main Challenges of SME Greening in the Western Balkans and Turkey

  1. 1. Regional Policy Dialogue Meeting “SMEs in a Green Economy” SME Policy Index: Main Challenges of SME Greening in the Western Balkans and Turkey Friday, 9 March 2018 OECD Conference Centre, Paris Room CC12 Co-funded by the European Union 1
  2. 2.  Measure SME policy convergence in non-EU member countries based on the principles of the Small Business Act for Europe (SBA)  Assess the design, implementation and monitoring and evaluation of SME policies and institutions  Benchmarking within each policy area, allows for comparisons across time  Fifth cycle launched in 2017 1. Entrepreneurial learning and women’s entrepreneurship (ETF) 2. Bankruptcy and second chance for SMEs (OECD) 3. Institutional and Regulatory framework for SME policy making (OECD) 4. Operational environment for SMEs (OECD) 5. SME support services (OECD) and public procurement (OECD/SIGMA) 6. Access to finance for SMEs (EBRD) 7. Standards and technical regulations (OECD) 8. Enterprise skills (ETF) and innovation policy for SMEs (OECD) 9. SMEs in a green economy (OECD) 10. Internationalisation of SMEs (OECD) SME Policy Index Dimensions 2 The SME Policy Index: Objective & Scope OECD South East Europe
  3. 3. 1 2 3 4 5 9: SMEs in a green economy 1. Entrepreneurial learning and women's… 8a: Enterprise Skills 8b: Innovation Policy for SMEs 2: Bankruptcy and Second chance for SMEs 5a: Support Services for SMEs and Start-Ups 10: Internationalisation of SMEs 6: Access to Finance for SMEs 4: Operational Environment for SMEs 5b: Public Procurement 3: Institutional framework for SME Policy Making 7: Standardisation and technical regulation 2016 WBT average scores per dimension 2012 WBT average scores per dimension 3 Levels The SME Policy Index 2016: Performance of the WBT economies per dimension Level 1: No framework Level 2: Draft/pilot, some signs of government activity Level 3: Solid framework in place Level 4: Level 3 + concrete indications of effective policy implementation Level 5: Level 4 + significant record of concrete and effective policy implementation • Regional average at 2.51, a slight increase from 2012 (2.26) • SMEs in a green economy scored worst -> we are meeting today OECD South East Europe
  4. 4. The SME Policy Index 2016: «SMEs in a green economy» Performance by economy 4 Weighted scores for dimension 9: SMEs in a green economy, compared to 2012 Source: OECD SME Policy Index 2016 *This designation is without prejudice to positions on status, and is in line with UNSCR 1244 and the ICJ Opinion on the Kosovo declaration of independence. OECD South East Europe * • Turkey was the regional leader: its national SME strategies include environmental provisions and financial incentives for the greening of SMEs are in place • The rest: either no clearly defined environmental polices in their SME strategies or limited concrete actions or targets to meet their environmental goals Overall comment: Environmental policies do not focus on SMEs in particular & Limited incentives and instruments in place
  5. 5. the degree of greening of the current SME, industrial and innovation policy frameworks & if strategic enterprise and innovation policy documents cover eco- efficiency and eco-innovation • Inclusion in SME strategies • Existence of sector-specific policies targeting SMEs • Functioning of the government body & Effective co-ordination with stakeholders 9.1 Environmental policies targeting SMEs provision of regulatory instruments and financial incentives for SMEs to adopt sustainable practices, government efforts to promote environmental management systems • Regulatory instruments • Financial incentives • Environmental Management System 9.2 Incentives and instruments The SME Policy Index 2016: Assessment Framework for «SMEs in a green economy» Planning & Design Monitoring & Evaluation Implementation Planning & Design Monitoring & Evaluation Implementation 5
  6. 6. Main findings (SME PI 2016): 9.1. Environmental policies targeting SMEs • Some economies’ national action plans and SME development strategies take into account SME greening (but this remains at the level of planning) o Focus on resource efficiency (energy savings, recycling) • Most economies lack substantive policies to promote eco-innovation among SMEs o If they exist, they are part of the non-SME related frameworks • Government capacities to provide advice and guidance for SMEs to meet environmental issues vary across the region o Designated body is there, but often with limited staff and funds o Evidence on the effectiveness of these programmes mostly missing Notable disparities in how far national SME policy frameworks emphasise environmental dimension OECD South East Europe 6
  7. 7. Main findings (SME PI 2016): 9.2. Incentives and instruments 7 Regulatory instruments and financial incentives to support SMEs in going green lack across the region OECD South East Europe • A region-wide lack of provision of regulatory instruments to simplify permit procedures or reduce the inspection frequency for low-risk facilities • Financial support for the greening of SMEs largely missing (with the exception of certain economies)
  8. 8. • Greater focus on assessing the implementation of SME policies in the region • Endeavour to gauge the policies’ outcomes. More attention to involving private sector and civil society in our assessment • Providing concrete, more hands-on support in implementing our recommendations through supporting activities (regional policy dialogue and capacity building) • Finalised the first round of data collection Main novelties 9.1. Environmental policies targeting SMEs: • SME greening part of SME policies (in certain economies) • Certain initiatives (eco-innovation, energy efficiency) in the center of governmental attention • Co-operation with private sector and local NGOs on SME greening issues 9.2. Incentives and instruments: • Green innovation vouchers • Eco-labels, green awards • Programmes to raise awareness and secure SME initial engagement in green practices Preliminary findings – Dimension 9 The SME Policy Index 2019: New cycle & dimension 9 8OECD South East Europe
  9. 9. 9 Conclusion It all starts with vision and clear agenda Co-ordinated governmental effort needed since various stakeholders are involved Promote SME greening and provide guidance Follow the trends and support SMEs in grasping new business opportunities (e.g. circular economy, eco-innovation) Introduce frameworks and incentives, but don’t stop at the planning and design – implementation, M&E OECD South East Europe Make use of support programmes: OECD technical assistance, EU
  10. 10. Thank you for your attention! Jovana PAVLOVIC Policy Analyst OECD South East Europe Division e-mail: jovana.pavlovic@oecd.org 10 Umur GÖKÇE Project Manager OECD South East Europe Division e-mail: umur.gokce@oecd.org Marzena KISIELEWSKA Head of Division OECD South East Europe Division e-mail: marzena.kisielewska@oecd.org

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