1. Christian Mandl, EU Coordination Policy Department Austrian Federal Economic Chamber February 2016 SME Support in Austria Small and Medium Sized Companies

2. Austria in Europe: Key Data Austria Euro- Zone Area (sq. km ‘000)842.758 Population 2015 (Mio.)8.6341 Population growth (2014 – 2017, average yearly change)0.8%0.3% GDP per capita 2015 (EUR)35.69330.344 Net financial assets per private household 2014 (EUR) 110.35095.870

3. > 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 R&D-intensity increasing: 1998: 1,77%/GDP, 2015: 3,0 %* (EU:2,0 %) Foreign Direct Investment (active): strong, particularly in CEEC Austria’s Economy - overview * estimate

4. 65,6 % of employees96,7 % of training enterprises with 70 % 63 % of total turnoverof apprentices 58,6 % of value-addedaverage 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 Austria’s Economy – SME-driven

5. companies employees turnover Crafts and Trades Industry Commerce Transport and Communications Tourism and Leisure Information and Consulting Banking and Insurance

6. 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 (R&D, sales & market access, etc.) Strong in niches + technology leadership > 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 Economic Environment for Austrian SMEs

7. 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 Public Policy towards SMEs

8. 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 Public Funding Support for SMEs

9. 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 Better framework for SMEs

10. Mandatory membership implies a strong element of solidarity (entire business community) Five Types of Activities 1.Representation of interest (national, regional, EU) 2.Expert information & advice on practically all business related issues: all lines of business, all regions and district level 3.Training for entrepreneurs and their employees (www.wifi.at) 4.Internationalization (export, sourcing, direct investment, operating in national environment abroad, www.advantageaustria.org) 5.Start-up support for prospective entrepreneurs in all regions (www.gruenderservice.net) Chamber is (generally) not an funding agency (> state) Special Services for Single-Person-Companies (self-employed) Austrian Federal Economic Chamber Support for SMEs