Innovative SME first - red carpet, or red tape?
As Swedish tech players convened at Friends Arena for The Tech Arena 2023 on February 22-23, it marked a historic event likely to endure for years to come – a venue Sweden now needs more than ever. For a first edition in this form, we're immensely impressed by what Omid Ekhlasi Ekhlasi and his outstanding team at TECHARENA accomplished in such a short timeframe. The event showcased world-class startups, scaleups, investors, customers, and ecosystems – all under one roof.
On the event's final day, SISP - Swedish Incubators & Science Parks hosted a side event alongside Danske Iv?rks?ttere - Danish Entrepreneurs /ONE24 , and France Digitale . A policy session bringing together politicians and startups, moderated by Regina Summer , Director Policy and Strategic Partnerships at SISP, began with a crucial question:
"How many of you are familiar with CSRD, the AI ACT, and the Cyber Resilience Act? Not just heard about them, but actually understand their implications?"
Few raised their hands, but the discussion gained momentum.
Liselott Johansson , CEO and Funder of Greater Than , a leading data analytics company translating GPS data into crash probabilities and climate impacts, highlighted the positive impact of these regulatory drives, encouraging responsible consumer choices. Edward Murray , CEO and Co-Founder of Greeniron H2 AB , offering patented, energy-efficient, and fossil-free technology for fossil free iron, concurred that initiatives like CSRD (Corporate Sustainability Reporting Directive) will drive adoption of new technologies but stressed the need for simple and logical reporting. Johann Svane from Danish Entrepreneurs, also founder of ONE24, a coalition of European startup organizations advocating for startup-friendly policies and engagement with policymakers across the EU, emphasized the importance of striking a balance between regulation and innovation.?
"SME first" is more than just rhetoric
Daniel Vencu Velasquez Castro from the Social Democratic Party, a member of the Swedish Parliament ( Sveriges riksdag ) and the Committee on Industry and Trade, commented on the fact that European Commission has adopted the "SME first principle" (Think Small First: A Small Business Act for Europe , SISP red). Adopted in 2008, it aims to better support SMEs to unleash their potential for sustainable growth and job creation, based on ten principles. Daniel stressed the necessity of considering nuances between different kinds of SMEs when crafting new regulations. Arba Kokalari from the Swedish Moderate Party and a Member of The European Parliament , echoed the sentiment that SME perspectives should be paramount.
"If a law or regulation benefits an SME, it benefits larger companies too.”
Referring specifically to innovative SMEs, startups, and scaleups, Arba Kokalari noted significant progress over the past decade, with the European Parliament scrutinizing how new legislation impacts companies of all sizes.
“All EU laws need to be evaluated to ensure they also benefit small businesses. It should be easy to do the right thing, and Swedish startups shouldn't have to invest more time and money in navigating bureaucracy than in developing their products."
Daniel Vencu Velasquez Castro countered, emphasizing the importance of soliciting input from companies. Currently, "SME first" is merely a slogan. Edward Murray concurred:
"You claim that new legislation benefits us. We experience the complete opposite. Much of what the EU is doing now supports fossil fuel companies and CO2 emissions. Startups like ours, striving to combat the environmental crisis through innovation, receive no recognition for our efforts."
Liselott Johansson agreed:
"When it comes to reducing CO2 emissions, there's no room for competition. We all need to succeed!"
Collaborate with startups to reach objectives
Arba Kokalari acknowledged the need for more substantial action, citing Sweden's strong reputation for innovation and the imperative to set standards in areas like defense, security, and green industries.
"We must leverage our innovation prowess against competition from Asia and the US. Strong representation in Brussels, both from elected officials and innovative SMEs, is crucial."
Daniel Vencu Velasquez Castro emphasized the importance of startups and scaleups, advocating for tailored regulatory frameworks to achieve our goals. When other countries adopt new startup strategies, Sweden is scaling back investment in innovation. Realizing the importance of these fast growing companies here and having consensus is essential.
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"We must view startups as more than just companies. They have the solutions to many of our most important global challenges, and when they scale we also create global impact. We must collaborate with them to achieve our objectives!"
Regulation over innovation
Johann Svane, initiator of the ONE24 Startup Manifesto – a declaration advocating for the integration of startups into future legislation as a cornerstone of a thriving European Union – observed:
"While the EU claims to provide a level playing field for all companies to pursue sustainability, in reality, it focuses on regulating startups, while the US prioritizes innovation and market solutions."
Arba Kokalari followed:
"We lack the tools and incentives for startups to grow effectively. To address this, politicians must engage with startups."
"We've tried, but we can't seem to reach anyone in the EU Commission," Edward Murray said.
The panelists unanimously agreed on the urgency of listening to startups, understanding their needs, and crafting a regulatory framework that fosters innovation and facilitates market entry for innovative SMEs. Both Liselott Johansson and Edward Murray extended invitations to Arba Kokalari, Daniel Vencu Velasquez Castro and their colleagues:
"You're always welcome to come visit and learn more!"
Sense of urgency
Stina Lantz , CEO of SISP, concluded the session:
“At SISP, we are concerned about the lack of urgency in both the regulation and deregulation needed. These innovative startups with their solutions exist here and now, and the sooner they can scale, the sooner we will be closer to solving today's big challenges. It’s time to ramp up the efforts.”
Want to know more about SISP policy work for Swedish startups and scaleups?
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It's inspiring to see such collaboration and discussions around the future of SMEs! ?? As Steve Jobs once said - Innovation distinguishes between a leader and a follower. Keep pushing boundaries, your work today shapes the world of tomorrow! ???? Check out the full session for more insightful conversations.
CEO p? GreenIron H2 AB
8 个月Good discussions on a very important topic!