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2 Implementing the European "Think Small First" principle in Brazil CNI Seminar "Think Small First" Brasilia,
3 A plan for this presentation what is thinking small first reasons for thinking small first precondition for thinking small first ways of thinking small first reasons for not only thinking small first how thinking small first must fit implementing a think small first policy for Brazilian small businesses
4 What is thinking small first? policy makers give full consideration to small businesses at the early policy development stage ideally, rules impacting on business should be created from the small business point of view small businesses are considered "prime clients" by public authorities as far as business regulation is concerned lighter touch of regulation can also be beneficial to larger business -> better regulation
5 UK Small Firm Impact Test At an early stage in the Impact Assessment (IA) preparation make a preliminary assessment of businesses likely to be affected Consider alternative approaches for regulating smaller firms Scope issues with a sample of small businesses Determine if there is likely to be a greater impact on the operations and performance of small business than others During consultation, gather detailed data about likely impact on small business, including costing Ensure that the IA covers the impact on small businesses
6 Selected good reasons millions of small businesses that will never benefit from support programs, anywhere in the world no demand, no need no access, insufficient funds reducing administrative burden liberates energy required for core business actvities, increases competitiveness direct impact before the regulatory fact, not alleviation/ exemption thereafter
7 Precondition (1/2) a solid definition for what is "small" when it comes to business forget about the financial figures: what characterizes small business is the burden the owner-manager carries and the resulting management challenges small business definitions without staff headcounts are incomplete financial figures only are required to define ceilings for government support
8 Precondition (2/2) How many people? What staff count? 1 single individual usually cannot directly manage more than 5-8 other individuals (rule of thumb) up to 5-10 staff is "micro enterprise" if we need a further management level, that makes a "small enterprise" (up to ca.7 x ca.7 staff = ca.50 staff) add another management level, and that makes a "medium enterprise"
9 Ways of thinking small first high-level government attachment informal consultation, before a new regulation is officially submitted for debate (in some cases: formal test) cross-cutting task long-term function (regulation is here to stay) estimating compliance cost as integral part of the assessment actively exploring alternatives
10 Reasons to not only think small first
11 How thinking small first must fit one of several key criteria to be applied by modern governments regulatory impact assessments with appropriate checklists and support for all criteria thinking small first environmental impact health and safety impact special target group impacts...
12 How to think small first in Brazil? reliable, headcount-based SME definition high-level attachment, cross-cutting integrate with existing regulatory impact assessment guidelines develop checklists helpdesk, training, information make estimation of compliance cost mandatory federal, state, municipal levels small first
13 Thank you for your interest For further questions and follow-up (English, Português): Berlim (Alemanha, UE)
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