Institutional and regulatory framework for SME policy making (Dimension 3) in the Western Balkans and Turkey

                     Design rules according to the “think small first” principle (Small Business Act Principle 3)                   The “think small first” principle requires public authorities to take SMEs’ interests into consideration early on in the policy-making process. It takes a comprehensive and coherence policy and institutional framework to ensure that laws and regulations are SME friendly and that public initiatives effectively address the needs of SMEs. This dimension therefore assesses three inter-related aspects of the SME policy process: 1) the institutional frameworks themselves 2) the adoption of legislative simplification and regulatory impact analysis tools to ensure SME needs are incorporated into existing and future laws and regulations and 3) the existence of participatory platforms for public-private consultations on SME-related topics. This assessment found that the economies of the Western Balkans and Turkey are demonstrating increasingly sophisticated SME policy development, moving beyond initial institution building towards tracking policy implementation and monitoring. On the other hand, the limited availability of good-quality statistical data on the SME sector and limited consideration of SMEs’ particular needs in regulatory reviews remain major obstacles to effective SME policy making in the region.      