by Josianne Cutajar – MEP (S&D)
With small and medium-sized enterprises providing two-thirds of private sector jobs across Europe it is clear that the legislator’s role is to ensure that both European and national environments encourage SMEs to thrive. In the context of an ongoing global pandemic, how does one go about balancing public health needs and entrepreneurial ones?
The unprecedented times we are living in are a struggle in every sense of the word. Social distancing is taking its toll on our mental health, and our indispensable workers are on the frontline every single day. Economically, our businesses have been hit hard, and it is estimated that we shall continue to feel the economic impact of COVID-19 long after the current restrictions have been lifted.
SMEs have not escaped the pandemic’s reach: if anything, they are at the centre of the crisis in economic terms. A sudden loss of revenue for enterprises who have had to shut down their operations to abide by ongoing regulations is of course the most pressing and dramatic impact so far. Some sectors have naturally been hit even harder, with transportation and tourism being the most evident ones.
As a Gozitan, I know very well what it means to see the economy flourish – but also flounder – depending on the tides of the tourism industry. I have also witnessed first-hand the importance of connectivity and the restrictions imposed by insularity, or double insularity, in Gozo’s case. I learned that small business constitutes the fabric of the economy and there is no economic success unless small business flourishes, multiplies opportunities and provides quality employment.
The European Union understood that in this delicate period, SMEs and their needs deserve attention and assistance if we want to protect workers and families. It is the biggest lesson from 2008.
Thus, a common and sensible approach with regards to cancelled travel and vacation due to COVID-19 is needed. This system would give airlines and operators some much needed breathing space and liquidity, would soften the blow and prevent mass lay-offs, while at the same time ensuring consumers’ rights and making sure that they do not make up for the companies’ losses.
It is this kind of policy and legislative ingenuity that is required to keep our businesses, especially our SMEs, afloat in these troubling times.
In parallel, only if we are able to coordinate a European mechanism focused on the needs of the tourism industry and those sectors dependent on it, to bolster the initiatives taken by individual states, can we ensure that all SMEs in the sector have access to equal opportunities, irrespective of the state within which they operate.
Beyond the pandemic, Europe’s growth depends on its technological prowess and autonomy. Markets dominated by massive corporations leave very little room for SMEs, the backbone of Europe’s economy, to flourish. Fully aware that data is the new oil, it is smart regulation centralising oversight of the digital field that facilitates data sharing that can create a healthy level playing field for SMEs.
A common approach is crucial for small enterprises swimming in a very large European pond. We shall not shy away from policies that protect the social fabric of our communities and enable their development. In today’s climate, this can only happen if SMEs are supported through the digital and green transitions which are no longer a distant vision, but a present reality.
Among many things, COVID-19 has taught us that a digital transformation is not only possible, it is the key to keeping as many activities as possible active and accessible. So many of us right now are able to work from the safety of our homes thanks to digital technology and connectivity– and our employers’ and businesses’ ability to rapidly adapt to the needs of the moment. If a digital workspace is possible during a crisis, then it most certainly is possible, and should be sustained, during better times.
It will be a while before we can make an accurate analysis of how SMEs are and will be faring during these times. Nonetheless, as policy makers, we cannot stop at making sure that our businesses survive the pandemic. Now is the time to plan and rebuild our economy – let’s seize this opportunity and make sure our new normal is more sustainable and healthy than the one we left behind.
