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Alternative Approaches in Evaluating the EU SME Policy: Answers to the Question of Impact and Legitimization

Author

Listed:
  • Robert K. Gruenwald

    (Cracow University of Economics)

Abstract

The objective of the paper is the determination and criticism of existing EU SME Policy evaluation standards and of existing alternatives enabling the discussion of improvements. The paper uses a comparison of different evaluation methods applied by the OECD, the EU and Sweden and of funding programmes provided by KfW and the German Ministry of Economics; therefore, the paper is an explorative case study. OECD and EU evaluations do not determine causal relationships between funding allocation and effects. The evaluations of the KfW and the German Ministry of Economics use an empirical quantitative approach and determine direct causal relations. In order to fulfil the requirements of legitimizing functions for the SME policy, it is recommended to further develop the EU funding policy and evaluation according to the “German model” both in terms of the institutional framework and in terms of the evaluation of impacts through funding policy measures. Definition of minimum requirements and alternative possibilities for EU SME policy evaluation in order to close the legitimisation gap between the allocation of tax money and impact proof (cost-benefit ratio).

Suggested Citation

  • Robert K. Gruenwald, 2014. "Alternative Approaches in Evaluating the EU SME Policy: Answers to the Question of Impact and Legitimization," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 2(2), pages 77-88.
    • Handle: RePEc:krk:eberjl:v:2:y:2014:i:2:p:77-88
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    File URL: http://eber.uek.krakow.pl/index.php/eber/article/download/45/49
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    References listed on IDEAS

    as
    1. David B. Audretsch & Isabel Grilo & A. Roy Thurik (ed.), 2007. "Handbook of Research on Entrepreneurship Policy," Books, Edward Elgar Publishing, number 3856, June.
    2. Colin Wren, 2007. "Reconciling Practice with Theory in the Micro-Evaluation of Regional Policy," International Review of Applied Economics, Taylor & Francis Journals, vol. 21(3), pages 321-337.
    3. Howard Pack & Kamal Saggi, 2023. "Is There a Case for Industrial Policy? A Critical Survey," World Scientific Book Chapters, in: Kamal Saggi (ed.), Technology Transfer, Foreign Direct Investment, and the Protection of Intellectual Property in the Global Economy, chapter 26, pages 585-615, World Scientific Publishing Co. Pte. Ltd..
    4. Pack, Howard & Saggi, Kamal, 2006. "The case for industrial policy : a critical survey," Policy Research Working Paper Series 3839, The World Bank.
    5. Lenihan, Helena, 2011. "Enterprise policy evaluation: Is there a 'new' way of doing it?," Evaluation and Program Planning, Elsevier, vol. 34(4), pages 323-332, November.
    6. Francis J. Green & David J. Storey, 2007. "Issues in Evaluation: The Case of Shell Livewire," Chapters, in: David B. Audretsch & Isabel Grilo & A. Roy Thurik (ed.), Handbook of Research on Entrepreneurship Policy, chapter 12, Edward Elgar Publishing.
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    JEL classification:

    • H5 - Public Economics - - National Government Expenditures and Related Policies

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