SME Policy Index

The SME Policy Index is a practical benchmarking tool developed by the Investment Compact and the European Commission (with the support of the European Bank for Reconstruction and Development and the European Training Foundation) to measure and communicate on progress made by Western Balkan countries and UNMIK/Kosovo on implementing the European Charter for Small Enterprises.

Based on the SME Policy Index, the first SME Policy Index 2007 Report was published in March 2007.

OECD press release 27/03/2006: Outlook for small and medium sized enterprises in the Western Balkans is improving, finds OECD/EC report

A second SME Policy Index evaluation will be conducted in 2008/2009.

The SME Policy Index

Small enterprises are the backbone of the Western Balkan economies but until recently received relatively little attention from policy-makers in the region. The focus of governments was on consolidating macro-economic stabilisation and on managing the restructuring and privatisation of large companies. Only limited supported was available for small enterprises. The adoption in 2003 of the European Charter for Small Enterprises, a pan-European instrument developed under the framework of the Lisbon Agenda, by all Western Balkan countries and UNMIK/Kosovo contributed to a change in policy perspective.

The SME Policy Index evaluation measures their progress in implementing the Charter along its 10 policy dimensions:

• Education and training for entrepreneurship
• Cheaper and faster start-up
• Better legislation and regulation
• Availability of skills
• Improving online access for tax filing and company registration
• Getting more out of the Single Market
• Taxation and financial matters
• Strengthening the technological capacity of small enterprises
• Successful e-business models and top class business support
• Developing stronger, more effective representation of small enterprises

The SME Policy Index Report

The first SME Policy Index evaluation took place between May 2006 and February 2007. To download the SME Policy Index presentation, please click here.

The SME Policy Index report has 4 main benefits for governments. It:

• Provides them with an overview of each country's performance on small enterprise development;
• Allows them to benchmark progress relative to their peers in the region;
• Supports them in setting priorities to further improve the small enterprise environment;
• Provides direction on how to make improvements within each policy dimension by adopting OECD good practices.

The Evaluation Process

The first SME Policy Index measurement and evaluation process unfolded through 6 consecutive phases.

• 1. The Investment Compact and its three partner Organisations (EC, EBRD, ETF) designed the SME Policy Index toolkit.
• 2. Using the toolkit, Western Balkan countries and UNMIK/Kosovo conducted self-evaluations, structured in a national report along the lines of the Charter dimensions.
• 3. A team of independent consultants used the SME Policy Index to conduct independent counter-assessments.
• 4; Premiminary scorings were determined by the partner Organisations.
• 5. Governments were given an opportunity to comment on the preliminary scorings.
• 6. Final decisions on scores were taken by the partner Organisations.

Enterprise Policy Performance Assessments

Prior to conducting the first SME Policy Index evaluation, the Investment Compact supported the implementation of the European Charter by conducting a number of independent Enterprise Policy Performance Assessments.

For further information on the SME Policy Index, please contact Mr. Antonio Fanelli, Deputy Head, Investment Compact: antonio.fanelli@oecd.org.