Retailers and wholesalers today called on EU decision-makers to work on a new deal for SMEs in their sector to help them in acting as a motor for jobs and growth in Europe. This call was captured in a paper, “The Contribution of Retail and Wholesale to the EU economy,” formally launched today by EuroCommerce.
SMEs particularly suffer from the burdens of regulation, while at the same time facing real challenges adjusting to the rapid move to online sales, and more broadly to the digital economy.
Christian Verschueren, Director-General of EuroCommerce said:
“Our sector makes a massive contribution to the EU economy, as the largest private sector employer, and a highly productive and adaptable industry accounting for over 5.5 trillion euros of turnover. Small retailers and wholesalers can make a real difference in innovation, adapting quickly to ever-changing customer demand. But they need help in embracing the very digital technology which should be a vehicle for them to adapt and expand beyond their local and national markets. We need a new deal for SME retailers and wholesalers to help them take up the possibilities this technology offers.”
The EuroCommerce paper points to many small traders weighed down by regulation, which they lack the resources to address while also running their business. While an online presence creates real opportunities to expand, many cannot take up this challenge because they lack the expertise and resources to run an online operation in parallel with their bricks-and-mortar shops. It points to the need for EU and national authorities to provide help for SMEs in overcoming these difficulties, including:
- offering aid to build up a digital business, providing for SME online platforms, and more generally fostering entrepreneurship,
- providing easier and simpler access to finance,
- stricter application of the Think Small First principle in regulation,
- a much stronger approach to enforcing Single Market rules and removing barriers to SMEs operating cross-border,
- reducing burdens for small exporters and importers and opening new possibilities for SMEs wanting to expand into markets outside Europe
SMEs account for the vast majority of businesses and jobs in retail and wholesale, representing 5.4 million – or 1 in 4 – businesses in Europe, and over two-thirds of the 29 million jobs which the sector accounts for. 93% of retailers and wholesalers are micro-businesses, employing less than 10 people, including no less than 5 million self-employed.