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SME Policy Index: Eastern Partner Countries 2016

Assessing the Implementation of the Small Business Act for Europe

image of SME Policy Index: Eastern Partner Countries 2016

The SME Policy Index is a benchmarking tool designed for emerging economies to assess SME policy frameworks and monitor progress in policy implementation over time. The Index has been developed by the OECD in partnership with the European Commission, the European Bank for Reconstruction and Development (EBRD), and the European Training Foundation (ETF) in 2006.

For the Eastern Partner Countries, the assessment framework is structured around the ten principles of the Small Business Act for Europe (SBA), providing a wide-range of pro-enterprise measures to guide the design and implementation of SME policies based on good practices promoted by the EU and the OECD. It is applied to the Eastern Partner Countries for the second time since 2012.

The Index identifies strengths and weaknesses in policy design and implementation, allows for comparison across countries and measures convergence towards good practices and relevant policy standards. It aims to support governments in setting targets for SME policy development and to identify strategic priorities to further improve the business environment. It also helps to engage governments in policy dialogue and exchange good practices within the region and with OECD and EU members.

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Operational environment for SMEs (Dimension 4) in Eastern partner countries

Public administrations which are responsive to SMEs’ needs tend to have simple and low-cost regulations and procedures. Dimension 4 assesses progress towards simplifying regulations and reducing compliance costs and procedures for SMEs, with a focus on business registration and e-government systems. EaP countries were already performing well against this dimension in 2012. They have continued to streamline business regulation, lowering market entry barriers and reducing transaction costs for businesses in their interaction with government agencies. E-government portals and services have been dramatically expanded in most EaP countries. Likewise, one-stop-shops for starting a business are available throughout the region and business registration procedures have been substantially simplified. Today, starting a business in the EaP region is, on average, cheaper and involves fewer procedures than in OECD countries.

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