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<p align="justify"><b>Doc. 9122</b></p>

<p align="justify">14 June 2001</p>

<p><b>New technologies in small and medium-sized enterprises (SMEs)</b></p>

<p align="justify">Recommendation 1457 (2000)</p>

<p align="justify">Reply from the Committee of Ministers</p>

<p align="justify">adopted at the 754<sup>th</sup> meeting of the Ministers&#8217; Deputies (6, 7 &amp; 8 June 2001)</p>

<p align="justify">The Committee of Ministers has studied Parliamentary Assembly<a href="/ASP/Doc/RefRedirectEN.asp?Doc= Recommendation 1457"> Recommendation 1457</a> (2000) on new technologies in small and medium-sized enterprises (SMEs) and forwarded it to the governments of member states and to the European Commission.</p>

<p align="justify">In response to the Assembly&#8217;s request, the Committee of Ministers has forwarded the Recommendation to the European Committee for Social Cohesion (CDCS) to be taken into account in its future activities and sought an opinion on the Recommendation from the Higher Education and Research Committee (CC-HER). The Committee of Ministers approves the content of this opinion and brings it to the attention of the Assembly as an appendix to this reply.</p>

<p align="justify">The Assembly Recommendation draws attention to the job-creation potential of SMEs to replace job losses in traditional industries, particularly in countries in economic transition. The Committee of Ministers recognises in this context the usefulness of active consideration being given by governments to the framing of strategies to encourage SMEs to create more jobs. This is especially important where the potential  for SMEs&#8217; expansion would be enhanced by the recruitment of additional staff.</p>

<p align="justify">In so doing, special attention should be paid to ensuring that the regulatory burden on SMEs does not frustrate their growth, while at the same time taking care to comply with the social standards enshrined in the European Social Charter and the revised Social Charter.</p>

<p align="justify">The Committee of Ministers recognises that employment growth in SMEs could be a way of integrating vulnerable or marginalised groups into sustainable employment. In particular, new technologies can be a means of providing employment and self-employment opportunities for physically disabled people, including those with severe disabilities.</p>

<p align="justify">The Committee of Experts on the Impact of New Technologies on the Quality of Life of Persons with Disabilities (P-RR-NTH), which reports to the Committee on the Rehabilitation and Integration of People with Disabilities (Partial Agreement) (CD-P-RR), is at present exploring the strengths, weaknesses, opportunities and risks associated with new technologies in relation to the full integration of disabled people into society. This study also covers the occupational integration of disabled people by increasing their level of employability. A comparative analysis with practical recommendations for the judicious exploitation of the information society should be completed by Summer 2001.</p>

<p align="justify">The Assembly Recommendation draws attention to the difficulty of financing business creation. The Committee of Ministers believes that co-operation with financial sector partners could enable governments to envisage the provision of start-up financing arrangements.</p>

<p align="justify">The Committee of Ministers also approves and encourages action on SMEs at local level where innovative partnerships can be established to provide supportive exchange networks, pooling of resources and employment opportunities, particularly for marginalised groups.</p>

<p align="justify">The Committee of Ministers wishes to inform the Assembly that the Committee of Experts on Promoting Access to Employment (CS-EM), which reports to the European Committee on Social Cohesion (CDCS), is preparing guidelines on how local employment initiatives can help tackle long-term unemployment. These will put the emphasis on local partnership, equal opportunities and non-discrimination, entrepreneurship and education, training and lifelong learning in improving access to employment at local level.</p>

<p align="justify"><i>Appendix</i></p>

<p align="justify"><i><b>Opinion by the Higher Education and Research Committee (CC-HER) on Parliamentary Assembly Recommendation 1457 (2000) on New technologies in small and medium sized enterprises (SMEs)</b></i></p>

<p align="justify">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The CC-HER has taken due note of Parliamentary Assembly Recommendation (2000) 1457 on new technologies in small and medium sized enterprises (SMEs).  It has no doubt that the Recommendation addresses an issue of great importance to the economic development and competitiveness of Europe as well as of individual countries.</p>

<p align="justify">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The CC-HER fully agrees with the Parliamentary Assembly on the important role of higher education and research in fostering the development of SMEs, in particular those relying on new communication technologies and other forms of advanced technology for their business.  Higher education institutions can also play an important role in conveying to their students the knowledge, skills and attitudes needed to develop and run SMEs. The CC-HER project on Lifelong Learning for Equity and Social Cohesion includes some consideration of SMEs as a potential target group for the lifelong learning efforts of higher education institutions, as SMEs are unlikely to be able to set up their own lifelong learning programmes. </p>

<p align="justify">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The CC-HER therefore welcomes the call on governments of member states and the European Union to continue and strengthen programmes encouraging closer contacts between SMEs and higher education and research institutions including the promotion of staff mobility.</p>

<p align="justify">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The CC-HER has taken note of the proposal that this Committee study the role of higher education and research institutions for the creation and promotion of SMEs, including the training of entrepreneurs (paragraph 9.ii).  While it recognizes the potential importance of such a study, the CC-HER feels obliged to point out that it would fall well outside of its current priorities.  Over the past few years, the CC-HER has made conscious efforts to restructure its programme around a limited number of activities falling within the overall priorities of the Council of Europe.  The proposed study would have to be an undertaking of a certain scope to be worthwhile, and it would not easily fall within the current activities of the committee or those envisaged when the current projects come to an end.  </p>

<p align="justify">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The CC-HER would also like to underline the importance of co-operation and a division of labour between international organisations.  In this field, the CC-HER has established very good co-operation with several international organisations (UNESCO, the European Union, the Nordic Council of Ministers).  In particular, the co-operation with UNESCO is designed to pool resources and avoid a duplication of efforts.  In this light, the CC-HER would hesitate to undertake a study in a field which is marginal to its current mission and competence as well as, it would seem, to the overall priorities of the Council of Europe, and which is better covered by other international organisations, such as the European Union and the OECD. </p>
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