Christian Mandl, EU Coordination Policy Department

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SME Support in AustriaSmall and Medium Sized
Companies

• Christian Mandl, EU Coordination Policy
  Department
• Austrian Federal Economic Chamber
• February 2016

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Austria in Europe Key Data
Austria Euro-Zone
Area (sq. km 000) 84 2.758
Population 2015 (Mio.) 8.6 341
Population growth (2014 2017, average yearly change) 0.8 0.3
GDP per capita 2015 (EUR) 35.693 30.344
Net financial assets per private household 2014 (EUR) 110.350 95.870
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Austrias Economy - overview

• gt 480.000 enterprises, 2,5 mio. working people
• 85,5 0-9 employees 99,6 SME
• 12,1 10-49 employees
• 2,0 50-249 employees
• GDP 2015 EUR 338 bn (2,3 of EU, 3,3 of
  Euro-Zone)
• Growth 2015-17 (real) 0,7 , 1,7 , 1,6
• Highly diversified economy
• RD-intensity increasing 1998 1,77/GDP, 2015
  3,0 (EU2,0 )
• Foreign Direct Investment (active) strong,
  particularly in CEEC

estimate
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Austrias Economy SME-driven

• 65,6 of employees 96,7 of training
• enterprises with 70
• 63 of total turnover of apprentices
• 58,6 of value-added average turnover
  240.000 /employee
• 51 of investment
• 30 equity ratio
• 63 making profits 3,1 net profit
  ratio
• 58 Single-Person Companies
• 33 female owned

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Austrias Economy SME-driven
Transport and Communications
Tourism and Leisure
Information and Consulting
Industry
Banking and Insurance
Crafts and Trades
Commerce
companies
employees
turnover
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Economic Environment for Austrian SMEs

• Few Austrian system suppliers (OEMs) SMEs must
  become part of international supply chains with
  as much value-added as possible. Co-operation
  with Leading Competence Units (RD, sales
  market access, etc.)
• Strong in niches technology leadership gt
  served world wide
• SMEs with cross-boarder strategy (CEEC)
• High per-capita income requires high value added
  also in SMEs
• EU and Germany language, proximity,
  international orientation

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Public Policy towards SMEs

• Mainly uniform rules and application for ALL
  businesses (level playing-field, avoiding
  threshold phenomena)
• Simplification for SMEs (lighter administrative
  burden, lump sums) - SMEs act without
  specialists, infrastructure
• Often focused on advice, awareness, skills,
  cooperation
• Think Small First, SME-Test and Economic
  Impact Analysis of legislation

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Public Funding Support for SMEs

• Federal, regional or European public funding
• Public (funding) support many measures for SMEs
  only (state aid, information, advice, voucher
  systems)
• Typical support goals growth, investment,
  innovation technology, internationalization,
  export finance, training education,
  environmental investment, co-operation.
• Instruments grants, loans, guarantees, vouchers,
  advice, networks partners
• Funding agencies aws, FFG, ÖHT, OeKB

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Better framework for SMEs

• 74 reducing taxation burdens
• 64 less bureaucracy, faster administrative
  procedures
• 57 reducing costs of administration
• 42 direct funding/subsidies
• 28 tax exemption
• 24 improved access to finance

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Austrian Federal Economic ChamberSupport for SMEs

• Mandatory membership implies a strong element of
  solidarity (entire business community)
• Five Types of Activities
• Representation of interest (national, regional,
  EU)
• Expert information advice on practically all
  business related issues all lines of business,
  all regions and district level
• Training for entrepreneurs and their employees
  (www.wifi.at)
• Internationalization (export, sourcing, direct
  investment, operating in national environment
  abroad, www.advantageaustria.org)
• Start-up support for prospective entrepreneurs in
  all regions (www.gruenderservice.net)
• Chamber is (generally) not an funding agency (gt
  state)
• Special Services for Single-Person-Companies
  (self-employed)

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