Entrepreneurship support policy is a fundamental component of the European Union's economic strategy, emphasizing the crucial role of small and medium-sized enterprises (SMEs). Representing 99% of businesses in the EU, SMEs contribute significantly to job creation, innovation, and economic growth. Initially, efforts to support SMEs were fragmented and implemented at the national level. However, since the 1990s, alongside the deepening of economic integration and the establishment of the Single Market, the EU has adopted more coordinated initiatives to improve the business environment.
This article addresses two central research questions: first, how has the EU’s SME support policy evolved, and what impact have its programs and actions had on enhancing the business environment for SMEs? Second, how effectively do programs like the Small Business Act for Europe (SBA) - a key component of the SME Performance Review - monitor and promote improvements in SME business conditions across Member States?
Using a combination of literature review, analysis of key EU documents, and econometric modelling based on 22 explanatory variables, the study evaluates the progress of EU policies. The Ordinary Least Squares (OLS) regression was employed with a 5% significance level. The findings highlight the role of SBA in guiding national efforts and enhancing the coherence of SME policies across the EU.