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INTRODUCTION
COOPERATIVES EUROPE welcomes the European Commission’s Consultation on the review of the
Small Business Act. The result of the consultation should be the basis of adjustments or new
guidelines for future actions.
As 95 % of our members are SMEs acting in all sectors of activities, SBA is a very important issue for
co-operatives. COOPERATIVES EUROPE participated to the previous SBA consultation processes,
through different position papers1, and is therefore very much interested in being involved into the
review of the SBA. The European Parliament recognised in its opinion the specific input that co-
operatives could give in the implementation of the SBA.
1
Cooperatives Europe position paper (21/3/2008).
Cooperatives Europe proposals on SBA (01/2008).
Cooperatives Europe Communiqué of 22/9/2008.
1
COOPERATIVES EUROPE ASBL – EUROPEAN REGION OF ICA
CO-OPERATIVE HOUSE EUROPE – AVENUE MILCAMPS 105 – 1030 BRUSSELS
TEL. (32/2) 743 10 33 – OFFICE@COOPSEUROPE.COOP
GENERAL REMARKS
From co-operatives point of view, beyond the questions asked in the consultation document, other
specific issues deserve to be addressed concerning the assessment of the SBA.
The new context since the adoption of the SBA: resilience of co-operatives in times of
crisis
Since the adoption of the SBA in 2008, the context changed with the economic and financial crisis that
particularly impacted industry. The ongoing recession is likely to leave deep and long-lasting traces on
economic performance and entail social hardship of many kinds.
The crisis also has shown that the traditional business model needs controlling and cannot grant a
sustainable growth alone.
In this context, co-operatives, if compared to many other forms of enterprises, have shown a higher
capacity to resist, to react and to have a proactive role in tackling the difficult situation.
Co-operatives have been affected by the crisis and suffer the consequences. However they have not been at the
failure origins, and they have proven to be particularly efficient, especially regarding their contribution
to economic and financial stability, maintenance of employment and job creation.
These aspects have been underlined by the International Labour Organization (ILO): “historical
evidence and current empirical evidence that proves that the cooperative model of enterprise survives
crisis, but more importantly that it is a sustainable form of enterprise able to withstand crisis,
maintaining the livelihoods of the communities in which they operate.” The ILO considers co-
operatives “a means to address the current crisis and avert future crisis”.2
The President of the European Commission Barroso confirmed that resilience of the co-operative
business model, saying in a speech that “Cooperative businesses that have stayed faithful to cooperative
values and principles and the cooperative banks which rely on members' funds and are controlled by local people
have generally been able to resist the crisis very well.”3
The SBA considers the diversity of SMEs regarding to their size and calls “policies addressing the
needs of SMEs […] fully recognize this diversity”.
COOPERATIVES EUROPE believes that the pluralism and diversity of the different types of
business are aspects that are valuable to the European Union. “Protecting and preserving this
diversity is very important for achieving the single market and maintaining the European social
model, as well as for meeting the Lisbon Strategy's objectives for jobs, competitiveness and social
cohesion” according to the Opinion on the “Diverse forms of enterprise” by the European
Economic and Social Committee (EESC), adopted on October 1st , 2009.
Therefore it would be important to expressly acknowledge this into both the SBA and the EU 2020
Strategy, with a specific focus on co-operatives societies.
COOPERATIVES EUROPE believes that the SBA should consider too the diversity of legal forms,
differentiating for example private stock companies from co-operatives societies where ownership
is collective and power is exercised democratically.
Business transfers
The SBA should include and promote different models of transfer of business, such as business
transfers to employees when viable. As stated in the Commission Recommendation 94/1069/EC of
7 December 1994 on the transfer of small and medium-sized enterprises, « the employee buy-out
2
International Labour Organisation (ILO), Report “Resilience of the Cooperative Business Model in Times of Crisis” (2009).
3
16/01/2009
2
COOPERATIVES EUROPE ASBL – EUROPEAN REGION OF ICA
CO-OPERATIVE HOUSE EUROPE – AVENUE MILCAMPS 105 – 1030 BRUSSELS
TEL. (32/2) 743 10 33 – OFFICE@COOPSEUROPE.COOP
is a form of transfer which should be encouraged; such a buy-out safeguards the existence of the
entreprise and the transfer of know-how and previously acquired experience […]”.
Co-operatives have proven successes in “workers’ buy-outs” ensuring the saving of companies
and jobs. In times of crisis, and regarding companies threatened by bankruptcies and closures,
such a system appears as a solution to maintain existing jobs.
Co-operatives have developed financial tools and instruments that make possible and easier
business transfer.
Enterprise support services should be promoted and should integrate the specificities of co-
operative societies, and employee and member-owned forms of enterprise. The existing support
services, in particular the Enterprise Europe Network doesn’t consider this diversity. Among the
various business support services needed, a key one is management consultancy and training.
Co-operative networks are being established everywhere in Europe in a diversity of sectors,
allowing microenterprises, independents and craftsmen to associate and mutualise certain
resources.
Because they are locally rooted, co-operatives are particularly fit to maintain existing jobs. Such
processes would not been possible without co-operative support services provided by regional co-
operative federations as the Confédération Générale des SCOP (CGSCOP) in France for example.
In Italy there exists a tool acknowledged by a national law of 1985 (Marcora law) which has the
goal to financially support the start-up of cooperatives among workers and employees who lost
their jobs due to the failure of their former employers.
In order to ensure the development of such experiences but also the development of co-
operatives in general, COOPERATIVES EUROPE calls for the creation of specific funds dedicated
to reinforce equity capital, measures aiming at facilitating the creation of co-operative groups at
the European level, and the development of enterprise support services.
Accompanying programmes should take into account co-operative specificities in order to
contribute to the promotion of the co-operatives and their input to the realization on SME’s
policies. The European exchange programme for entrepreneurs to which COOPERATIVES
EUROPE has participated is a first relevant experience in this context.
Innovation
3
COOPERATIVES EUROPE ASBL – EUROPEAN REGION OF ICA
CO-OPERATIVE HOUSE EUROPE – AVENUE MILCAMPS 105 – 1030 BRUSSELS
TEL. (32/2) 743 10 33 – OFFICE@COOPSEUROPE.COOP
focuses above all on economic objectives and interests of the cluster partners) by intergrading
social objectives and democracy.
Furthermore, COOPERATIVES EUROPE asks the Commission not interfering with national tax and
in the field of corporate law, when they promote the development of SMEs in the framework of
national laws.
COOPERATIVES EUROPE adds that small and medium co-operatives must benefit from a stable
legal framework, and an accounting framework that should not be too complex.
4
COOPERATIVES EUROPE ASBL – EUROPEAN REGION OF ICA
CO-OPERATIVE HOUSE EUROPE – AVENUE MILCAMPS 105 – 1030 BRUSSELS
TEL. (32/2) 743 10 33 – OFFICE@COOPSEUROPE.COOP
SPECIFIC QUESTIONS
I. Linking the SBA closely to the Europe Union 2020 strategy and looking for new
actions in key areas
COOPERATIVES EUROPE asks that member states strengthen their knowledge of the different
forms of businesses. As for example in this way, the French Ministry of Economy and Finance
has posted on its website a document explaining the benefits of handicraft co-operatives.
COOPERATIVES EUROPE believes that the revision of the directive on delay payments is
essential, as SMEs are particularly confronted to late payments from their suppliers.
4
Anna Darzenta (EL) from ’To Kastri’ Women’s Agro-Tourist Cooperative, and Luciana Delle Donne (IT) from Officina Creativa
Soc Coop Sociale
5
COOPERATIVES EUROPE ASBL – EUROPEAN REGION OF ICA
CO-OPERATIVE HOUSE EUROPE – AVENUE MILCAMPS 105 – 1030 BRUSSELS
TEL. (32/2) 743 10 33 – OFFICE@COOPSEUROPE.COOP
management. School curricula on entrepreneurship should include different form of SMEs
including co-operatives societies.
COOPERATIVES EUROPE suggests that a survey should be undertaken on teaching the co-
operative model of enterprise in schools and university.
6
COOPERATIVES EUROPE ASBL – EUROPEAN REGION OF ICA
CO-OPERATIVE HOUSE EUROPE – AVENUE MILCAMPS 105 – 1030 BRUSSELS
TEL. (32/2) 743 10 33 – OFFICE@COOPSEUROPE.COOP
II. Implementing the SBA and improving governance
4. How could the Commission better monitor the implementation of the SBA in the
Member States?
COOPERATIVES EUROPE asks the Commission to set up a joint monitoring committee on the
implementation of the SBA, involving representatives of SMEs including co-operatives
societies.
7
COOPERATIVES EUROPE ASBL – EUROPEAN REGION OF ICA
CO-OPERATIVE HOUSE EUROPE – AVENUE MILCAMPS 105 – 1030 BRUSSELS
TEL. (32/2) 743 10 33 – OFFICE@COOPSEUROPE.COOP