Theme sheet Published: 2006-11-19
More – and growing – small enterprises
The proportion of small entrepreneurs in Sweden has never been as low as
now. We need more people to start up and run companies.
– How is this to
be brought about?
What does Confederation of Swedish Enterprise want?
It must be made easier to start, run and develop companies in Sweden.
What is the situation today?
Sweden needs new – and growing – companies that provide new jobs. To achieve this, it must be become more attractive and profitable to own, run and develop companies.
There are over 600,000 companies in Sweden. Almost 99 per cent of them are small and medium-sized. The problem is that these companies are not growing to a sufficient degree. Along with this, we have a low start-up rate - the lowest in Scandinavia. Our company leaders are becoming older, and fewer young people want to start companies. At the same time, our Scandinavian neighbours have a better capital supply and lower taxation on small businesses. The large and small companies need each other, but it is in the small and medium-sized companies that most new jobs are created. Today, small and medium-sized companies already employ two-thirds of all employees in the private sector. Today, it is not the market that is the obstacle to enterprise: it is the tax system and complicated rules that set the limits. All companies have been small at some time. If the enterprise is successful and the company grows, a livelihood is created not only for the individual entrepreneur, but also for her/ his family, company employees and their families. Suppliers are involved and the community benefits from the taxes that the company generates.
What is required?
Tax regulations that promote small enterprises and capital supply
Change the 3:12 rules that discriminate against small enterprises. Simplify the rules and regulations governing the smallest companies. Abolish capital tax, so that company owners and wealthy Swedes remain in Sweden and can invest their capital in Sweden's small enterprises. Create conditions for individuals with business experience to invest in their own and others' small enterprises. Urgently change the regulations for corporate mortgages in the new Rights of Priority Act.
Increase competition, for better service
We consider that local and state bodies, in free and fair competition, must purchase through procurement everything not attributable to the exercise of authority. This would enable more private companies to provide services and higher quality in the public sector. Develop dialogue at local level between company leaders and political representatives to promote jobs, growth and prosperity. Discontinue the unhealthy competition from local and state authorities.
Introduce better and simpler regulations for small and medium-sized enterprises
Simplify and improve the rules and regulations and the exercise of authority. Perform better analyses of the consequences to small enterprises before introducing new laws, and remove regulations that are unnecessarily costly to these companies.
Focus on enterprise in education
Today only 4 per cent of Swedes start companies. To increase this proportion, it is necessary for more people to start companies. Introduce practical entrepreneurship training in all education.
Carry out measures that give more people jobs
Make it easier to employ people. In cases where companies have to downsize their workforce, it is important that the present "two excepted" rule be retained. It would in addition be reasonable to extend this exception. The rule means that the employer may choose which two workers are to be exempted from the priority rule when giving notice. Company co-funding of sick benefit must cease. End the monopoly in the service sector. Open the market to household services. Reduce employers' contributions appreciably and increase the availability of labour with the right skills.





