2016 SBA Fact Sheet
Belgium
Key points
Past & future SME performance1: Belgian SMEs have performed strongly since 2008. Value added has increased by over a fifth and
employment has grown by more than a tenth. A large proportion of this growth was due to the achievements of micro firms, whose
value added and employment grew by 25 % and 23 % respectively. In 2015-2016, SME value added is expected to grow by 3 %.
Employment is forecast to grow only slightly less, at 2 %. In 2016-2017, growth will accelerate, with SME value added predicted to
increase by 5 % and SME employment expected to rise by 3 %. As a result, SME employment will grow by more than 80 000 in 20152017. A large proportion of the increase will be due to employment growth in micro firms.
Implementing the Small Business Act for Europe (SBA): Belgium’s SBA profile is well in line with the EU average. In the areas of Skills
& innovation, Single market and Access to finance the country is performing above the EU average, while Entrepreneurship,
‘Responsive administration’ and State aid & public procurement remain below the EU average. The areas that saw the most
significant progress in 2015 were Entrepreneurship, Access to finance and Skills & innovation. Since 2008, the areas
entrepreneurship, State aid & public procurement, and Single market have shown most progress, while in ‘Second chance’, Access to
finance, and Skills & innovation the progress was less discernible.
SME policy priorities: Elements supporting the ‘Think Small First’ principle should be further reinforced and consolidated. The existing
SME test was due to be improved and evaluated in 2015; this should take place as soon as possible. Impact assessments should be
applied in all regions. In the area of public procurement, the following issues should be considered: procurement capabilities at
regional and local level should be strengthened; SMEs’ participation should be encouraged; and measures to mitigate risks of late
payment should be adopted. Concerning Access to finance, measures to further encourage SMEs’ access to Structural Funds should
be put in place.
About the SBA fact sheets
The Small Business Act for Europe (SBA) is the EU’s flagship policy initiative to support small and medium-sized enterprises (SMEs). It comprises a
set of policy measures organised around 10 principles ranging from Entrepreneurship and ‘Responsive administration’ to Internationalisation. To
improve the governance of the SBA, the 2011 review of it called for better monitoring. Published annually, the SBA fact sheets aim to improve the
understanding of recent trends and national policies affecting SMEs. Since 2011, each EU Member State has appointed a high-ranking
government official as its national SME envoy. SME envoys spearhead the implementation of the SBA agenda in their countries.
Internal market,
industry,
entrepreneurship
and SMEs
Table of Contents
Key points ..................................................................................................................................................................................................................................................................... 1
SMEs — basic figures....................................................................................................................................................................................................................................... 2
SBA profile ............................................................................................................................................................................................................................................................. 3
SBA principles ....................................................................................................................................................................................................................................................... 6
3.0 ‘Think Small First’ ............................................................................................................................................................................................................................................. 6
3.1 Entrepreneurship............................................................................................................................................................................................................................................... 7
3.2 ‘Second chance’ ................................................................................................................................................................................................................................................. 8
3.3 ‘Responsive administration’ ........................................................................................................................................................................................................................ 9
3.4 State aid & public procurement ............................................................................................................................................................................................................ 10
3.5 Access to finance........................................................................................................................................................................................................................................... 11
3.6 Single market .................................................................................................................................................................................................................................................. 13
3.7 Skills & innovation ........................................................................................................................................................................................................................................ 14
3.8 Environment ..................................................................................................................................................................................................................................................... 15
3.9 Internationalisation ...................................................................................................................................................................................................................................... 16
4.
Interesting initiative ....................................................................................................................................................................................................................................... 17
1.
2.
3.
1. SMEs — basic figures
Class size
Number of enterprises
Belgium
Number of persons employed
EU28
Belgium
EU28
Value added
Belgium
EU28
Number
Share
Share
Number
Share
Share
Billion €
Share
Share
Micro
543 611
94.2 %
92.8 %
931 979
34.2 %
29.5 %
43.1
21.6 %
21.2 %
Small
28 034
4.9 %
6.0 %
550 705
20.2 %
20.2 %
46.2
23.2 %
18.0 %
Mediumsized
4 293
0.7 %
1.0 %
420 232
15.4 %
17.0 %
34.7
17.4 %
18.2 %
SMEs
575 938
99.8 %
99.8 %
1 902 916
69.9 %
66.8 %
124.1
62.2 %
57.4 %
Large
913
0.2 %
0.2 %
818 392
30.1 %
33.2 %
75.4
37.8 %
42.6 %
Total
576 851
100.0 %
100.0 %
2 721 308
100.0 %
100.0 %
199.5
100.0 %
100.0 %
These are estimates for 2015 produced by DIW Econ, based on 2008-13 figures from the Structural Business Statistics Database
(Eurostat). The data cover the 'non-financial business economy', which includes industry, construction, trade, and services (NACE Rev. 2
sections B to J, L, M and N), but not enterprises in agriculture, forestry and fisheries and the largely non-market service sectors such as
education and health. The advantage of using Eurostat data is that the statistics are harmonised and comparable across countries. The
disadvantage is that for some countries the data may be different from those published by national authorities.
SMEs are an important part of the Belgian ‘non-financial
business economy’. They generate more than 60 % of total
value added and almost 70 % of all employment. Of particular
importance are micro firms, which generate more than a fifth of
value added. Their 34 % share of employment is almost five
percentage points higher than the EU average.
The ‘non-financial business economy’ has performed strongly
since 2008, despite the negative impact of the financial crisis.
Total value added grew by 19 % in 2008-2015 and employment
increased by 6 %. SMEs performed even better. SME value
added increased by around a quarter and employment grew by
more than a tenth. A large proportion of SME growth was due to
2016 SBA Fact Sheet — Belgium
the achievements of micro firms, whose value added and
employment grew by 27 % and 22 % respectively.
This strong SME performance is mostly attributable to the
growth of the professional services sector. In 2008-2015, SME
value added in this sector increased by almost three quarters,
while employment rose by more than 50 %. The professional
services sector benefits from Belgium’s location as the west
European headquarters for large numbers of international
companies2, which are attracted by the presence of many
important European institutions in Brussels. As a result, more
than 60 % of trademarks and patents in Belgium are filed by
European affiliates of international R&D corporations.3 The
attractiveness of Belgium for scientific research is also reflected
2
in the net inflow of scientists in 2009-2013 and the growth of
130 % of SME value added in the scientific research and
development subsector, within the professional services sector.4
In the accommodation and food services sector, SMEs have also
performed well. In 2008-2015, value added grew by 22 % and
employment by 5 %. This sector has benefited from a steady
rise in non-domestic tourists, following the large drop in tourists
in 2009 as a result of the financial and economic crisis.5 This is
evident, for example, in the major increase in overnight stays in
the Brussels Region.6 The reduction of value added tax, in 2010,
on food served in hotels and restaurants, also contributed to
growth in this sector.7
Manufacturing was one of two sectors in which SMEs did not
grow in 2008-2015, the other being transportation. SME value
added fell by 5 % and employment dropped by 13 %. A
significant factor behind this weak performance was the high
costs involved in manufacturing, especially labour costs. 8
However, one manufacturing subsector which did not suffer a
decline was the chemicals sector. SMEs create 33 % of total
value added and a rise in employment of 5 %. Global demand
for chemical products is driving this growth. In 2010-2014,
global shipments of chemical industry products grew strongly9
and in 2015 almost EUR 90 billion of chemical products were
exported from Belgium, an increase of approximately
EUR 5 billion compared with the previous year.10 Global demand
for chemical products has been driven by a growing world
population and the use of chemical innovations, such as
bioplastics and low migration inks (inks that do not migrate from
package to product), in other industries.11 Since 2007, regional
programmes that are supported by industry participants and the
public sector have been available to help SMEs comply with
European chemicals regulations. The programmes aim to reduce
the burden of compliance, thereby allowing SMEs to remain
competitive.12
In 2015, there were a total of 70 716 company registrations,
almost 13 % less than in 2014,13 and 63 370 company deregistrations, a decline of 8 % compared with 2014. The result
was a net gain of approximately 7 000 companies. The reduction
in de-registrations seems to indicate an improvement in the
financial health of SMEs.14
In Wallonia, business registrations fell by 11 % to 18 625, while
de-registrations also dropped by around 4 %, to 19 251. In
Flanders, there were 41 950 company registrations, a fall of
11 % from 2014. De-registrations totalled 35 372, a drop of
11 % compared with 2014. In the Brussels Region there were
10 141 business registrations, a decrease of 23 % by
comparison with 2014. De-registrations also fell by 4 % in
comparison with 2014, to a total of 8 747.
The outlook for the ‘non-financial business economy’ and for
SMEs is positive. SME value added is expected to grow by 3 % in
2015-2016. Employment is forecast to grow only slightly less, at
2 %. In 2016-2017, growth will accelerate, with SME value
added predicted to increase by 5 % and SME employment
expected to rise by 3 %. As a result, SME employment will grow
by more than 80 000 in 2015-2017. A large proportion of the
increase will be due to employment growth in micro enterprises.
2. SBA profile15
The Belgian SBA profile is largely in line with the EU average.
Areas of particular strength are Skills & innovation,
internationalisation and Access to finance. The area of
entrepreneurship is showing signs of progress as policy
measures introduced in previous years are finally showing
results.
During the reference period 2015 and first quarter of 2016,
Belgium implemented 17 policy measures addressing 6 out of
the 10 policy areas under the SBA. Overall, the stakeholders
acknowledge that there has been sound progress in
implementing the SBA
The areas that saw the most significant progress in 2015 were
in the fields of entrepreneurship, Access to finance and skills and
innovation.
There are numerous policy initiatives, both at federal and
regional level, to encourage entrepreneurship. This year, in
2016 SBA Fact Sheet — Belgium
3
particular, new strategies have been implemented to foster
entrepreneurship, competitiveness and SME growth in the three
regions. The aim is to make the best use of the Structural Funds
by setting up a reinforced policy framework. In Wallonia, the
‘SBA Manifesto 2015-2019’ (Manifeste PME) has been adopted
by the SME Council of Wallonia. In Flanders, the new strategy
‘Stimulating more and more ambitious entrepreneurship in
Flanders’ has been implemented as a partnership between the
Flanders Innovation & Entrepreneurship agency and private
entities. And finally, in the Brussels Region, the 2025 Strategy
sets out wide-ranging proposals in favour of SMEs based on SBA
provisions.
At federal level, measures have also been taken to simplify
procedures related to social contributions for the self-employed
and SMEs and to promote job creation, notably through the
measure for lifetime ‘Zero Social Contributions’ for employers on
first hiring.
On Access to finance, the efforts of the federal and regional
governments to improve the environment for businesses have
continued at a constant pace. At federal level, the government
has adopted a plan to facilitate financing for start-ups (‘Startups plan’) as part of its tax shift policy that aims to increase the
competitiveness of the Belgian economy. The ‘Start-ups plan’
consists mainly of fiscal exemptions intended to favour private
and alternative investments into start-ups. The measure includes
fiscal exemptions for start-ups (a tax shelter), tax incentives for
crowd-funding and lower payroll taxes to reduce labour costs for
2016 SBA Fact Sheet — Belgium
start-up companies. At regional level, Wallonia has unveiled a
series of measures to facilitate investment in start-ups through
tax deductions for private loans to SMEs, in particular for startups and young SMEs, support for SMEs entering the stock
markets and an investment fund for innovative start-ups.
A limited number of measures have been implemented in the
area of Skills & innovation. They mainly aim at fostering
cooperation and clustering among SMEs.
From a policy perspective, progress has been limited in the area
of Single market where no new measures were adopted; and
concerning the principles of ‘Think Small First’ and environment,
for each of which only one measure was adopted at regional
level.
The Federal Government adopted national strategies to
implement the SBA through the SME plans of 2008 and 2012.
The 2008 SME plan was intended to coordinate the activities to
implement the SBA, but was not fully implemented due to
successive changes of governments. A new plan for SMEs was
adopted in February 2015 (Plan Borsus). At regional level,
Flanders, Wallonia and the Brussels Region have all put in place,
or are developing, entrepreneurship/SMEs strategies, in
consultation with stakeholders.
The SME envoys are in place at federal and regional level and
play an effective role.
4
SBA performance of Belgium: state of play and development from 2008 to 201616
2016 SBA Fact Sheet — Belgium
5
3. SBA principles17
3.0 ‘Think Small First’
The ‘Think Small First’ principle is intended as a guiding principle
for all policy- and law-making activities. It requires policymakers
to take SME interests into account at the early stages of the
policy-making process. The principle also calls for newlydesigned legislation, administrative rules and procedures to be
made simple and easy to apply.
Belgium has put in place the Regulatory Impact Assessment,
which includes elements related to the ‘SME test’, as well as an
assessment of competitiveness. Consultations with SMEs take
place on a regular basis.
Under a law of May 2014, all federal governments are to apply
from 1 January 2016 the ‘only once’ principle when requesting
information from the public and businesses. The aim is to reuse
data already available in authentic sources within the Federal
Government and promote the use of electronic forms. In practice
however, many government services are not yet able to apply
this principle.
Legislation is not reviewed systematically in Belgium after is has
been adopted; there is no mechanism in place for introducing
common commencement dates, and there are no specific
burden-reduction targets.
At a regional level, some elements of the ‘Think Small First’
principle are in line with the regional competences and
jurisdiction in this field. They include the role of the SME envoy,
some preliminary assessment of new legislation (although not
systematically), and consultations with stakeholders.
2016 SBA Fact Sheet — Belgium
Few new developments took place in 2015 and early 2016.
The Federal Government has announced its intention to review
and further develop the ‘SME test’ and introduce additional
administrative simplifications for SMEs, especially in the area of
public procurement. The draft law transposing the EU directives
on public procurement was presented to Parliament on
4 January 2016. Regional governments have also announced
plans to adopt the ‘Think Small First’ principle and regional ‘SME
tests’.
To sum up, many elements related to this principle are in place
but need to be reinforced or completed. The above-mentioned
initiatives launched in the past couple of years, both at federal
and regional level, have not materialised yet, and there was no
progress in 2015 on the issues related to the SME test and the
administrative simplification, which remain unresolved.
A specific SBA recommendation under this principle that has not
yet been implemented is the effective use of results from
regulatory impact assessments when changing (or cancelling)
proposed legislation. There is also no ‘common commencement
date’ for new legislation and amendments to existing legislation
relevant to SMEs.
The most pressing need for policy action in this area is to
evaluate the effectiveness of the ‘SME test’. The test should be
reinforced in order to allow a meaningful assessment of the
impact of new regulations on SMEs.
6
3.1 Entrepreneurship
Belgium is showing good progress in the area of
entrepreneurship. Improved scores for all indicators as compared
to last year result in an overall profile that is – though still below
- slowly closing in on the EU average.
It seems that the policy efforts and numerous initiatives
implemented in previous years are finally bearing fruit and one
can see a slight but noticeable change for the better in the
mind-set of the Belgian population as regards Entrepreneurship.
Training in creating or managing SMEs is also very well
incorporated within the education and training system at all
post-secondary levels (Belgium scores 3.24 which is well ahead
of the EU average of 2.78). The indicators showing the greatest
improvement are early-stage entrepreneurial activity in general
(+15 % compared to last year) and among women more
specifically (+60 %).
On the policy level, progress since 2008 has been substantial.
Many measures have been implemented at federal and regional
levels to address various aspects related to entrepreneurship
(education, promoting disadvantaged groups, women, youth,
transfer of business, etc.). The results in terms of
2016 SBA Fact Sheet — Belgium
entrepreneurship spirit and the number of companies created
show improvement but are still not satisfactory.
Efforts to further remove regulatory and fiscal barriers to
enterprise creation should be continued. Other areas that need
extra attention include better support for companies’ growth, the
fostering of cooperation between entrepreneurs and universities,
and support for immigrants.
During the reference period, progress continued with both
federal and regional measures to promote entrepreneurship.
New policies and strategies at regional level:
-
In Wallonia, the ‘SBA Manifesto 2015-2019’ (Manifeste
PME) has been adopted by the SME Council of Wallonia. It
defines the main focus areas for developing
entrepreneurship in the region and establishes 50 priority
measures including raising awareness and support for
business creation.
-
The new strategy ‘Stimulating more and more ambitious
entrepreneurship in Flanders’ has been implemented as a
7
partnership between the Flanders Innovation &
Entrepreneurship agency and private entities. Initiatives are
based around three main priorities: i) promotion, awareness
raising and image-building of entrepreneurship; ii) providing
coaching services throughout the life cycle with focus on
(pre-)start, Access to finance (investor readiness) and
business continuity (financial literacy, support of enterprises
in difficulties, re-start (second chance) and business
transfer; iii) networking activities focused on (high) growth
enterprises.
-
The 2025 Strategy in the Brussels Region sets out wideranging proposals in favour of SMEs based on SBA
provisions.
The
proposals
include
administrative
simplification, reform of support measures, and Access to
finance.
-
Specific measures have also been adopted in favour of
women entrepreneurs in Wallonia and to support
entrepreneurship education in Flanders.
-
At federal level, a measure has been adopted to the effect
that all employers who hire their first employee between
2016 and 2020 will benefit from a lifetime exemption from
employers’ social security contributions for that employee.
The measure also reduces the contribution for the next five
employees for 13 quarters. The authorities expect that this
will help to create new jobs, especially in SMEs that often
face difficulties related to social levies. An action plan in
favour of women entrepreneurs was launched in 2016.
3.2 ‘Second chance’
‘Second chance’ means ensuring that honest entrepreneurs who
have gone bankrupt get a second chance quickly.
There has been little change in Belgium’s profile for this area; it
remains well within the EU average. Where time and cost of
resolving insolvency are concerned, Belgium ranks among the
top three EU Member States. Both support from people who
think entrepreneurs that failed should be given a second chance,
as from the insolvency framework that is provided, are quite
close to the EU average. The fear of failure on the other hand is
about 20 % higher in Belgium than in the other Member States
on average.
Since 2008, limited progress has been achieved on the policy
side with only a limited number of measures introduced at both
federal and regional level. Apart from small-scale initiatives for
prevention mechanisms that have been set up at regional level
in particular, the overall policy in this area, including the set-up
2016 SBA Fact Sheet — Belgium
of early-warning systems, remains to be further developed.
Measures to reduce the stigma of business failure should be
further developed and stepped up.
Regarding bankruptcies, Belgium has implemented several
support measures (such as counselling, legal advice and dispute
resolution).
Specific SBA recommendations under this principle that have not
yet been implemented are the possibility of automatic discharge
for honest entrepreneurs after liquidation and the provision of
fast-track and specific procedures for SMEs.
Progress during 2015 and first quarter of 2016 has been
limited. During that time, no significant additional measures
were adopted or implemented in this area.
8
3.3 Responsive administration
‘Responsive administration’ means public administration being
responsive to the needs of SMEs.
areas that produce more barriers for Belgian entrepreneurs than
for their EU peers on average.
There has been little change in Belgium’s performance in this
area, which remains below the EU average. Especially the cost
and time to transfer property weigh heavily on the overall score;
for both indicators, Belgium shows the highest rates of the
Member States. The number of start-up procedures (three) as
compared to almost five on average in the Member States
illustrates the overall supportive environment for new
entrepreneurs in Belgium. The complexity of administrative
procedures and the burden of government regulations remain
Policy-wise, since 2008, there has been moderate progress in
the area of ‘Responsive administration’. Several measures were
introduced by the federal and regional authorities to simplify the
administrative procedures and reduce the reporting burden for
SMEs, and especially for the smallest ones.
2016 SBA Fact Sheet — Belgium
The federal action plan for administrative simplification that was
adopted for 2012-2015 is still valid. A network of contact points
for the Services Directive has been established. Most interactions
9
between the governments and enterprises can take place via eservices.
Access for SMEs to the European Eco-Management and Audit
Scheme, as well as the delivery of environmental permits at
regional level, have been simplified. Environmental permits can
be obtained at several one-stop-shops established at sectorial
and regional level. Initiatives have been announced in Wallonia
to centralise companies’ data with a view to establishing a single
contact point at regional level for all procedures affecting
enterprises. The aim is to establish a database of authentic
sources for enterprises and define the framework for use of
public data. The project will be launched in 2016, in order for the
system to be fully functioning in 2017.
administrations (called FIDUS). Progress in 2015 and the first
quarter of 2016 has been limited. The ‘Only Once’ law of
5 May 2014 regulates the provision of information by citizens
and enterprises to public services and the equality of electronic
and paper submission of administrative forms. The law came
into force on 1 January 2016. Unfortunately, many government
services are not yet able to comply with this law.
In Flanders, the enterprise and innovation funding agencies
officially merged together in January 2016 with the objective to
be the one-stop-shop for companies in Flanders.
Besides this, no significant new measures have been adopted or
implemented concerning the SBA policy principle ‘Responsive
administration’ during the reference period.
In the Brussels Capital Region a measure has been announced to
simplify procedures for SMEs though the establishment of a
dedicated IT platform for data exchange between the various
3.4 State aid & public procurement
Belgium continues to perform below the EU average for this
principle. Belgian SMEs’ participation in public tenders is
significantly lower than their EU peers. The public authorities’
average payment deadlines have remained unchanged against a
much improved EU average. The potential of e-procurement
needs to be exploited much more.
Concerning public procurement, overall Belgium is in line with
the EU average in terms of performance in the areas of
procedural efficiency, accessibility and participation of bidders,
use of electronic systems (through the ‘Telemarc’ system that
provides access to various sources of information) for public
procurement.
Since 2008, progress has been moderate concerning the SBA
principle State aid & public procurement.
A measure was adopted at the federal level in 2014 to promote
the access of SMEs to public procurement. It provided the
possibility to divide tenders into lots and the use of variants;
establish proportionate requirements in terms of qualification
and financial capacities; ensure the consultation of SMEs in the
context of negotiated procedures without advertising; ensure
compliance with verification and payment deadlines, and
administrative simplification in terms of documents and
certificates to be provided.
State aid policies have been adapted to the needs of SMEs.
However, access to State aid and uptake by SMEs could be
further encouraged and simplified. Stakeholders feel that
making the provision of aid conditional on SMEs achieving
benchmarks, for example in employment or environmental
performance, could be inefficient and counterproductive.
2016 SBA Fact Sheet — Belgium
10
Electronic portals for e-procurement and an e-tendering system
have been put in place. The public procurement system is largely
automated but the systems are still not sufficiently used by
some administrations, particularly at local level. There is a lack
of trained personnel competent in procurement rules, of
established procedures (e.g. procedure manuals, checklists, etc.);
and IT infrastructure such as e-procurement platforms. Often
public procurement at local level is particularly of interest for
SMEs — however, in many cases local procurement offices lack
experienced personnel (procurement specialists) and digital
platforms. Consequently, there is a need to strengthen public
procurement at regional and local level.
Finally, participation of SMEs in public procurement should be
further encouraged by addressing their concerns, notably that: it
entails significant burden related to the excessive demands for
documentation; it creates excessive workload for preparing the
bids; and there are excessive risks associated with late
payments by contracting authorities.
Progress during 2015 and first quarter of 2016 has been limited
at regional level. The most relevant policy measures adopted
during the reference period are the following:
-
The Walloon Government adopted a decree to improve the
efficiency and to simplify the procedures related to public
aid for research. The new approach to R&D aid aims to
promote excellence and smart specialisation. The process is
simplified through the reduction of the types of calls for
project proposals (from 10 down to three). The
administrative formalities are eased and a single contact
point will be made operational in the short term within the
Walloon regional administration.
-
The reform of the mechanisms for investment aid was
adopted by the Walloon Government in March 2015. It now
focuses on five main priorities: innovation, export, reindustrialisation, job creation and the development of
ecosystems through clusters. The new European Regional
Development Fund 2014-2020 programming period has
also been integrated into the existing mechanisms.
3.5 Access to finance
Belgium continues to perform well in this area and provides a
stable and conducive financing environment for businesses. The
2016 SBA Fact Sheet — Belgium
overall profile ranks above the EU average. Although one can see
a slight increase in the number of rejected loans and
11
unacceptable loan offers, banks are seemingly more willing to
provide loans; the number of Belgian respondents reporting
deterioration has halved compared with 2014. A similar
improvement can be seen regarding access to public funding:
only 14 % of respondents indicate deterioration against 21.2 %
in 2014. The cost of borrowing small loans as compared to large
loans has also improved from 15.3 % in 2014 to 12.5 % — the
EU average remained unchanged.
According to a survey conducted for the Global Entrepreneurship
Monitor, Belgium has the highest rate among the Member States
of SMEs who feel they can count on a diverse and well-provided
offer of innovative financing means; both with regards to equity
funding and business angel support. Overall, the financing
climate for SMEs has improved noticeably in recent years.
Vlaanderen signed a COSME guarantee agreement with the
European Investment Fund (EIF/EFSI) to provide additional loans
to SMEs. In 2016 the group will also orient its marketing to
solutions combining different financing products.
During the reference period, measures to improve the
competitiveness of Belgian businesses have been deployed in
line with the national approach of reducing the tax burden on
labour (the ‘tax shift’). Tax shelters have also been created for
specific categories such as start-ups and creative and innovative
companies.
The most relevant measures are:
-
The Federal Government has adopted the ‘Start-ups plan’
which aims to facilitate access to alternative sources of
financing and is particularly aimed at start-ups. The
measure includes fiscal exemptions for start-ups (a tax
shelter), tax incentives for crowd-funding and lower payroll
taxes to reduce labour costs for start-ups. Tax exemptions
are expected to support digital investments for SMEs and
micro-companies. Private investment in Belgian start-ups
will be encouraged through a tax shelter/discount
mechanism based on tax relief for personal income tax for
private investors/natural persons that invest in a young
company. This particular mechanism aims to mobilise
private savings for investment into the real economy.
-
The Walloon Government has adopted a fiscal measure to
mobilise private investments in SMEs (‘citizen loan’). The
measure consists of tax deductions for private loans to
SMEs, in particular for start-ups and young SMEs.
-
Wallonia also implemented two measures aimed at
providing assistance from public funding to support initial
public offering at preferential rates for SMEs and a publicfunded investment fund (Wallonia Investment & Growth —
W.IN.G) to facilitate access to finance for start-ups ‘with
high potential’.
Since 2008, there has been substantial progress concerning the
SBA principle Access to finance, as several measures have been
introduced both at federal and regional level to facilitate access
of SMEs to credit and to foster private investment, including
micro-credit.
The 2013 financing law for SMEs, adopted at federal level, and
Flanders’ Bank Plan are important measures to facilitate SMEs’
access to credit. The Ombudsman in financial disputes is in
place. One-stop-shops for information on financing issues have
been set up at regional level. Various alternative financing
mechanisms have been promoted both at federal and regional
level. These include crowd-funding, spin-off funding, access to
equity, venture capital, business angels, and investments in
specific sectors, notably creative industries.
Measures to further encourage venture capital or to facilitate
SMEs’ access to Structural Funds should be further developed.
At regional level, the authorities have adopted similar measures
for facilitating bank lending to SMEs, developing alternative
financing and focusing on specific sectors. For example, in
November 2015 the investment group Participatie Maatschappij
2016 SBA Fact Sheet — Belgium
12
3.6 Single market
Belgium continues to build on the progress made last year and
performs well above the EU average. The large number of
infringement procedures (mainly in the area of direct taxation)
puts Belgium in a group with seven other Member States
showing scores well above the EU average. Other than that,
Belgian SMEs continue to perform very well in the internal
market with twice as many of them exporting and almost three
times as many importing, compared to their EU peers. Belgium
also has almost twice as many online exporters among its SMEs
than other Member States. Surveys show that new and growing
SMEs in Belgium find market access easier than their EU peers
and tend less often to feel unfairly blocked by established firms.
From the policy side, progress on the implementation of the SBA
provisions related to Single market has been limited since 2008.
Few measures have been introduced at both federal and
regional level. They mainly involved putting in place single
contact points, enabling electronic applications for patents and
promoting internationalisation and trade. The new division of
competences between the federal state and the three regions
2016 SBA Fact Sheet — Belgium
concerning the accredited business counters as a result of the
Sixth State Reform, means that the control and follow-up of the
business counters continues at federal level, in consultation with
the regions. The three regions are currently evaluating how to
deal with the newly-transferred competences, notably that of
professional regulation. Information on and access to standards
for SMEs and the use of e-commerce by SMEs should be
increased.
Specific SBA recommendations under this principle that have not
yet been implemented are:
- to set up measures to help SMEs overcome the difficulties in
accessing patents and trademarks within the Single market;
- to exchange information between national standards bodies
and trade promotion organisations to boost exports within the
Single market.
During the reference period, no significant additional measures
were adopted or implemented concerning the SBA policy
principle related to Single market.
13
3.7 Skills & innovation
Belgium continues to perform well in this area and ranks third
among the Member States. The overall business environment is
conducive to innovation and research and allows for a good
transfer of knowledge towards businesses. The portion of SMEs
trading online continued to increase. The share of SMEs
purchasing online increased by more than 25 % compared to
2014. The number of those generating turnover from ecommerce saw a more modest rise, and Belgium still needs to
catch up with the EU average.
Newly-introduced indicators on ICT skills give an indication of the
excellent availability of digital capacity of the workforce;
Belgium scores within the EU top three for both. One and a half
times as many Belgian companies provide ICT skills training to
their workforce than in the EU on average. 25 % more
employees than the EU average possess ICT-specialist skills.
National research and development spills over well to Belgian
SMEs and tends more to lead to new commercial opportunities
than on average in the Member States.
2016 SBA Fact Sheet — Belgium
Since 2008, progress on this SBA principle has been substantial.
Aspects related to training and vocational educational training
are well established and covered by Social Fund support.
However, there is a relative mismatch between the training
delivered and market needs. Mechanisms should be developed to
better assess and anticipate labour market needs and adapt
vocational education and training accordingly.
Education and skills training is a regional responsibility. The
regions have programmes in place to stimulate skills in science,
technology, engineering and mathematics, but also new forms of
combining education with working. The objective of these
programmes is mainly to overcome the skills mismatch and a
help people better prepare for the work place. In the Brussels
Region, special programmes are in place for target groups such
as migrants.
For many years a network of training centres has provided
training for SMEs. In Flanders, for example, Syntra offers about
200 apprentice learning courses and 500 courses for (becoming)
entrepreneurs in 28 different sectors of activity. A similar offer
14
exists in the Brussels Region (EFP - Espace Formation PME) and
Wallonia (IFAPME - Institut wallon de formation en alternance et
des indépendants et petites et moyennes entreprises). The range
of training is very broad, ranging from specific skills (e.g.
hairdressing or plumbing) to general management skills and how
to run a company (accounting, HR, etc.). These training courses
are well known and taken up by (new) entrepreneurs.
The innovation aspect has received ample attention in Belgium
in recent years, notably through support for the introduction of
new technologies, eco-friendly innovation, prototyping and R&D
networking. Subsidies are available for incubators, as is training
and mentoring for innovation. In the previous assessment
periods, several measures were adopted at regional level in
these areas.
-
‘FabLab Brussels’ is an initiative of the Brussels Region that
aims to foster the creation and development of at least
three new FabLabs. The role of the FabLab is to develop
new, innovative products through the creation of prototypes.
It allows starters and SMEs access to a wide range of
materials and tools.
-
The concept note ‘New cluster policy‘ (Nieuw clusterbeleid
Vlaamse Overheid) adopted in July 2015 defined two types
of clusters that will receive support: innovative company
networks (bottom-up driven) and Flanders’ strategic smart
specialisation domains.
-
On 3 July 2015 the Flemish Government signed a charter to
raise awareness and change mentality among public
purchasers. It commits government entities to doing more
innovation-oriented procurement, adapting procurement
instruments and earmarking 3 % of the purchasing budget
to innovation-oriented procurement.
-
Seven creative hubs in Wallonia were made permanently
active in 2015. They propose innovative measures by
bringing together multiple profiles, competences and
sectors: large companies, SMEs, start-ups, public sectors,
education, cultural and social associations, citizens, and
many others.
The most relevant policy measures adopted in 2015 and the
first quarter of 2016 were:
-
‘BEL SME’, a simple support instrument that encourages the
development of R&D joint projects between Belgian
companies. It is managed jointly by the three regions and
aims at encouraging cross-regional cooperation between
SMEs. Effective collaboration between partners from
different regions is encouraged and it will result in a 15 %
increase of the funding rate for the beneficiaries if their
individual participation is below the 70 % of the total
project costs.
3.8 Environment
Belgium continues to perform well in line with the EUaverage for this principle. Although the number of SMEs that
has actually taken resource-efficiency measures is below the
EU average, more of them benefited from tax incentives and
other extensive subsidy measures than on average in the EU
The number of Belgian SMEs that offer green products or
2016 SBA Fact Sheet — Belgium
services has caught up with the EU average. The good news is
that the number of SMEs that get more than 50 % of their
turnover from those products has doubled since 2013.
Overall, progress on this principle has been substantial since
2008. Several important measures have been introduced,
15
mainly at regional level, to develop green businesses, render
enterprises more sustainable and energy-efficient and
support eco-innovation.
During the reference period, the Brussels Region implemented
the project ‘Resilient Web’ to support the introduction of ecofriendly products and processes in SMEs. The project is being
implemented in cooperation with other regions within the
Interreg IV framework. The project encompasses the
development of coaching tools for enterprises to become
more innovative and sustainable and supports the
development of integrated strategies to foster eco-innovation
projects and services by SMEs. The aim is to support
companies in developing their eco-innovation strategies,
mainly in the construction sector.
3.9 Internationalisation
Belgium’s performance is above the EU average for this area. On
average, documentary compliance regarding international trade
represents less of a hurdle for Belgian SMEs than for their EU
peers.
Since 2008, progress related to internationalisation activities for
SMEs has been moderate. The number of SMEs in industries
trading outside the EU has remained stable. Several policy
measures have been introduced, mainly at regional level, to
support export projects, such as road shows, seminars, coaching
services, etc. Recent measures have focused on providing
integrated services and coaching for exporting companies and
have mainly targeted innovative SMEs. Support for SME
network-building should be improved.
Progress during the reference period has been limited.
The most relevant policy measure was the ‘FINMIX International’
programme which has been implemented in Flanders to provide
alternative financing for (exporting) SMEs. Entrepreneurs get the
opportunity to present their project to a panel of financial
2016 SBA Fact Sheet — Belgium
experts who will advise on the optimal financing mix. Any
enterprise that needs venture capital can make use of FINMIX.
The ‘FINMIX International’ component is aimed at entrepreneurs
looking for finance to internationalise their activities: to start up
a foreign office, launch a project abroad or export financing. The
panel consists of representatives of banks, public and private
risk capital providers, public and private credit insurers,
Participatie Maatschappij Vlaanderen, Finexpo (a consultant in
international financing), an adviser of the Flanders Investment
and Trade and the Flemish business organisations Unizo and
Voka.
In Wallonia, a fundamental reform of export subsidies was
conducted in 2015 to simplify the AWEX (Wallonia Foreign Trade
& Investment Agency) services while offering more flexibility
and clarity to businesses and accelerated payment of subsidies.
Particular attention is given to starters. Support is available for
consultancy, communication, participation in overseas
exhibitions, mobility outside the EU and for opening
representative offices outside the EU.
16
4. Interesting initiative
Below are some examples initiatives from Belgium to show what governments can do to support SMEs:
Lifelong zero social contributions for employers on the first hiring (Federal Administration)
For a self-employed person or an SME, the first recruitment is often the most difficult. From 2016 and until the end of 2020, all
employers who hire a new employee for the first time will benefit from a lifelong exemption from the employers’ social security
contributions due for the employee. The purpose of this provision is to assist the majority of self-employed people to take the first
step of hiring, thus creating jobs and boosting economic growth.
Reference:
https://www.socialsecurity.be/employer/instructions/dmfa/fr/latest/instructions/deductions/structuralreduction_targetgroupreductions/fi
rstengagments.html#h22
FabLab Brussels (Brussels Region)
The role of FabLab is to develop new innovative products through the creation of prototypes. It gives starters and SMEs access to a
wide range of materials and tools. Fablab Brussels is a project that aims to foster the creation and development of at least three new
FabLabs in the Brussels Region. The programme is implemented by Citydev.Brussels and has a total budget of EUR 1 million. The
tender was launched in April 2016. The first FabLab is expected to be established in the new Greenbizz incubator in Brussels.
Reference: Citydev.Brussels
W.IN.G (Wallonia Investment & Growth) (Wallonia)
W.IN.G (Wallonia Investment & Growth) is one of the flagships of the ‘Digital Wallonia’ Strategy. Its objective is to facilitate the
access to finance for start-ups with high potential. It applies to start-ups that were just born from an incubator or accelerator and are
in their pre-funding (pre-seed) stage. With a total budget of EUR 50 million over five years, to which EUR 30 million could be
potentially added from private investments, W.IN.G provides funding in the form of convertible loans.
Reference:
www.wing-digitalwallonia.be
Entrepreneurial, innovative partnerships (ecosystems) within student cities (Flanders)
In the framework of the new strategy ‘Stimulating more and more ambitious entrepreneurship in Flanders’, a new European Regional
Development Fund call was launched in November 2015. The call focuses on the creation of innovative entrepreneurial ecosystems
within student cities. Partnerships between the city, educational institutes providing entrepreneurial education, youth work
organisations, student associations, local companies and local organisations are set up to develop an extensive entrepreneurial
context for all youngsters within the city. They also provide training through workshops, boot-camps etc and promote close interaction
between the different players of the local business ecosystem.
Reference:
http://www.agentschapondernemen.be/sites/default/files/documenten/103_-_efro_oproep_p2_sd1_ecosyteem_in_studentensteden.pdf
2016 SBA Fact Sheet — Belgium
17
Important remarks
The European Commission Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs (DG GROW) produces the
SBA fact sheets as part of the SME Performance Review (SPR), its main vehicle for economic analysis of SME issues. They
combine the latest available statistical and policy information. Produced annually, they help to organise the available information
to facilitate SME policy assessments and monitor SBA implementation. They take stock and record progress. They are not an
assessment of Member State policies. Rather, they should be regarded as an additional source of information to improve
evidence-based policy-making. For example, they cite only policy measures national SME policy experts consider relevant. They do
not and cannot reflect all measures the government has taken over the reference period. There is more policy information on a
database accessible from the SPR website.
SME Performance Review:
http://ec.europa.eu/growth/smes/business-friendly-environment/performance-review/index_en.htm
[email protected]
Small Business Act:
http://ec.europa.eu/growth/smes/business-friendly-environment/small-business-act/index_en.htm
European Small Business Portal:
http://ec.europa.eu/small-business/index_en.htm
Endnotes
The two graphs below present the trend over time for the variables. They consist of index values for the years since 2008, with
the base year 2008 set at a value of 100. As from 2014, the graphs show estimates of the development over time, produced by
DIW Econ on the basis of 2008-2013 figures from Eurostat’s Structural Business Statistics Database. The data cover the ‘nonfinancial business economy’, which includes industry, construction, trade and services (NACE Rev. 2 sections B to J, L, M and N).
They do not cover enterprises in agriculture, forestry and fisheries or largely non-market service sectors such as education and
health. A detailed methodology can be consulted at: http://ec.europa.eu/growth/smes/business-friendly-environment/performancereview/index_en.htm
1
2
BNB report 2015, https://www.nbb.be/fr/articles/rapport-2015-evolution-economique-et-financiere; last accessed 21.3.2016
OECD (2015), OECD Science, Technology and Industry Scoreboard 2015: Innovation for Growth and Society, OECD Publishing,
Paris, p75, http://dx.doi.org/10.1787/sti_scoreboard-2015-en; last accessed: 23.3.2016
3
OECD (2015), OECD Science, Technology and Industry Scoreboard 2015: Innovation for Growth and Society, OECD Publishing,
Paris, p68, http://dx.doi.org/10.1787/sti_scoreboard-2015-en; last accessed: 23.3.2016
4
World Economic Forum Insight Report, The Travel & Tourism Competitiveness Report
http://www3.weforum.org/docs/TT15/WEF_Global_Travel&Tourism_Report_2015.pdf; last accessed: 23.3.2016
5
2015,
p92,
Colliers
International,
Hotel
market
report
2014,
Brussels,
Belgium,
http://www.colliers.com/en-gb//media/Files/EMEA/belgium/brochures/Brochure-Hotel-Market-Report-2014; last accessed: 23.3.2016
6
Ernst
&
Young,
The
Hospitality
Sector
in
Europe,
September
2013,
http://www.ey.com/Publication/vwLUAssets/The_Hospitality_Sector_in_Europe/$FILE/EY_The_Hospitality_Sector_in_Europe.pdf, last
accessed: 23.3.2016
7
Boston
Consulting
Group,
The
Shifting
Economics
of
Global
Manufacturing,
https://www.bcgperspectives.com/Images/The_Shifting_Economics_of_Global_Manufacturing_Aug_2014.pdf;
23.3.2016
8
August
2014,
last
accessed:
American Chemistry Council, https://www.americanchemistry.com/Jobs/EconomicStatistics/Industry-Profile/Global-Business-ofChemistry, last accessed 31.3.2016
9
2016 SBA Fact Sheet — Belgium
18
Belgian
Foreign
Trade
Agency,
Belgium’s
Foreign
ace.be/sites/default/files/Statistics/Top3/continents_12 m2015.pdf, last accessed 31.3.2016
10
Trade,
http://www.abh-
Belgium, a world champion for chemicals and plastics, essenscia, http://www.essenscia.be/en/Document/Download/13155, last
accessed 29.3.2016
11
12
Ibid.
All
information
on
business
demography
is
based
on
BeStat
http://statbel.fgov.be/fr/statistiques/webinterface/beSTAT_home/#2, accessed 21.3.2016
13
14
National
enterprise
statistics,
Rapport PME, Graydon, https://graydon.be/fr/downloads/report-le-rapport-pme-2016; last accessed 21.3.2016
The 2016 SBA fact sheets benefited substantially from input from the European Commission’s Joint Research Centre (JRC) in
Ispra, Italy. The JRC made major improvements to the methodological approach, statistical work on the dataset and the visual
presentation of the data.
15
The quadrant chart combines two sets of information. Firstly, it shows current performance based on data for the latest
available years. This information is plotted along the X-axis measured in standard deviations of the simple, non-weighted
arithmetical average for the EU-28. Secondly, it shows progress over time, i.e. the average annual growth rates from 2008 to
2016. These are measured against the individual indicators which make up the SBA area averages. Hence, the location of a
particular SBA area average in any of the four quadrants provides information not only about where the country is located in this
SBA area relative to the EU average at a given point in time, but also about the extent of progress made between 2008 and
2016. All SBA principles, with the exception of the ‘think small first’ principle for which there is not enough statistical data
available, are calculated as composite indicators following the OECD/JRC Handbook guide. A detailed methodology can be
consulted at: http://ec.europa.eu/growth/smes/business-friendly-environment/performance-review/index_en.htm
16
The policy measures presented in this SBA fact sheet are only a selection of the measures the government took in 2015 and
the first quarter of 2016. The national SME policy expert that CARSA Spain (DG GROW’s lead contractor for the 2016 SBA fact
sheets) contracted made the selection. The experts were asked to select only the measures they considered the most important,
i.e. the ones expected to have the highest impact in the SBA area in question. The complete range of measures the experts
compiled in producing this year’s fact sheets will be published alongside the fact sheets in the form of a policy database on the
DG GROW website.
17
2016 SBA Fact Sheet — Belgium
19