Jüri Järviste

President of the EVEA (2003)


The 15 years of the EVEA

In December 2003, 15 years passed since the foundation of the Estonian Association of Small and Medium-Sized Enterprises (EVEA). As a promoter of entrepreneurship in Estonia, the EVEA has primarily been the defender of its members´ interests, but also the shaper of the overall business environment. Two periods can be considered as decisive. During the first one, free business originated and we switched over from centrally controlled economy to free market economy. The second one is the present period, when our entrepreneurs have to adapt to new business principles and requirements arising from accessing the European Union. The pluses and minuses, highs and lows of the first period of the operation of the EVEA are clearly analyzable and interpretable, when looking back now. The most general conclusion is: the EVEA fulfilled the tasks he was established for, the organization has been necessary, otherwise it would have discontinued to exist. Many thanks to the people with a sense of prospect who assisted establishing the EVEA with both their ideas and their energy!
Estimating the EVEA’s today’s role and forecasting the future of the organization, we have to admit that the need to represent our membership both directly and indirectly is even greater now, than it was in the first years. At present, we are the only organization, which unites only small and medium entrepreneurs broadly and nation-wide. According to the data of the Estonian Tax Board, in 2002 there were operating almost 35,000 enterprises in Estonia, 78% of which were so-called microenterprises (with up to 9 employees), 18% - small enterprises (with 10-49 employees), 3,3% - medium-sized enterprises (with 50-249 employees) and only 0,5% were the enterprises belonging to the “large enterprise” category with more than 250 employees. Small and medium-sized enterprises are extremely important for the development of Estonian economy because they provide 75% of the private sector employment; they also create most of new jobs.
The aim of the project of Enterprise Year 2002-2003 which was implemented successfully under the guidance of the EVEA was to emphasize the role of small and medium-sized businesses in the development of Estonian economy. The patron of the project of Enterprise Year 2002-2003, President of the Republic of Estonia Arnold Rüütel said in his opening speech: “Entrepreneurship is a way of thinking and a way of living. It is much more than an opportunity to earn the family’s bread with one’s head and hands.” Entrepreneurship enables to carry out people’s freedom of business and enterprising ideas.

Estonian entrepreneurship policy does not yet take into account peculiarities and different needs arising from the size of companies. A survey conducted within the project of Enterprise Year 2002-2003, indicated that small entrepreneurs are mostly influenced by the attitude of the state and the local government towards the entrepreneur and entrepreneurship. Our problems are the indifferent and discouraging attitude spread among officials, their administrative incapacity, and lack of motivation. The power of officials in interpreting legal acts is rather applied against the entrepreneur, not in favor of them. Entrepreneurs frequently encounter barriers of bureaucracy, during crossing of which they may lose any interest and motivation to continue their activity. Entrepreneurs are disturbed by the fast and steady alteration of legislation, insufficient notification and involvement of entrepreneurs in preparing legal acts, lack of qualified workforce, limited funds, low market value of collaterals in country regions, insufficient information, inadequacy of the support measures of entrepreneurship in comparison with the real needs of small businesses, growth of hidden tax burden, workforce-related tax burden, red tape and officialdom, lack of co-operation. All these problems are the present-day reality of the Estonian small entrepreneur.

The main task of the EVEA is to fight for a more favorable business environment and to increase the influence of small entrepreneurs in decision processes – to help to solve the problems the entrepreneurs face. By now, two main fields have shaped where the small entrepreneurs expect substantial help from the EVEA. Firstly, making the business environment more stabile by designing and effecting the laws which would have a positive influence on entrepreneurship. Defending the interests of entrepreneurs in the government, ministries, the Parliament, and the institutions of the European Union has to ensure safe development of small entrepreneurs. The EVEA also pays continuously more attention to the representation of the interests of entrepreneurs at the regional level at county governments, associations of cities and rural municipalities and counties development centers. The EVEA co-operates with other associations of entrepreneurs, which try to defend their interests at local governments, boards, municipal and rural municipality councils, and committees.

Secondly, the Republic of Estonia has got a unique opportunity to be provided access to the resources of the European Union for developing its economy. The EVEA assumes its role in maximizing the positive influence of using these resources on SME’s. The EVEA is the only Estonian partner to the all-European umbrella organization of small entrepreneurs - the UEAPME. This organization, which unites handicraft, commercial, small and medium-sized enterprises, represents approximately 8 million business enterprises with approximately 30 million employees in Europe. Estonian small and medium entrepreneurs get an opportunity to contribute to the shaping and developing of the entrepreneurship policies of the European Union via the UEAPME. We hope that Estonia’s joining the European Charter for Small Enterprises in 2002 will not be only a declarative act. The charter emphasizes the importance of the dialogue between the state and small entrepreneurs and it reads, “Small enterprises are the backbone of European economy. They are a key source of jobs and a breeding ground for business ideas. Europe’s efforts to usher in the new economy will succeed only if small business is brought to the top of the agenda. “

The constant change of the surrounding environment causes changes in the organization itself, as well. In order to fulfill our statutory assignments more effectively, we have to elaborate both the structure of the organization and the principles according to which both business associations and self-employed entrepreneurs can be our members. Estonian entrepreneurs have increasingly started to appreciate the opportunity to influence themselves social processes for establishing a more favorable business environment, i.e. participation in decision processes, the social dialogue, and drafting of laws both at local, national, and international level. Only the active attitude of entrepreneurs themselves towards the issues and problems related to entrepreneurship will ensure their faster solving. The EVEA as an organization uniting small entrepreneurs helps its members to be more aware of their rights and opportunities and be proud of themselves.
Every organization lives and develops as long as its membership wishes. This wish has lasted in the EVEA for fifteen years already. I hope the members of the Estonian Small and Medium-Size Association will continue the wish and need to go on with their active engagement in keeping the state’s economic train on the right track for many more years.

Success for you, dear colleagues, entrepreneurs!