The role of SMEs in improving the competitive position of the European Union

This paper sets out to examine the increasing importance of small firms in the European Union (FEU). It further contrasts policy making in EU member states and it traces the development of an emerging EU‐wide policy‐making process.

Theories of entrepreneurship are drawn upon and data on the role of small firms are considered.

Evidence suggests that some reorganisation of policy making in this field may be justified.

The limitations of current policy making are considered and suggestions are made on how enterprise policy making should be shaped in the future.

Further work contrasting the success of other global competitors may also be warranted.