European observatory for SMEs. 2nd annual report 1994

The report on the Commission communication entitled "European Observatory for SMEs" was adopted. The report highlights the advantages of the Observatory and welcomes the publication of its second annual report (1994). This document analyses and clarifies the problems faced by SMEs, especially problems relating to: * the structure of the SME sector; * the role of this sector in the internal market (which is still relatively limited as markets tend to be local and regional rather than national or Community); * job creation in this sector (apparently only 5 to 6% of SMEs really want to expand); * capital and funding (SMEs have too little venture or equity capital); * innovation and the dissemination of technologies (SMEs often lag behind large companies); * regional disparities (which are still serious); * policy on this sector (the management capacities of SMEs need special attention under the integrated SME programme).�