Existing regulations governing access to EU funding programmes treat startups and SMEs alike, creating obstacles for these smaller players to secure proper financial support. This hinders their growth and, in consequence, hampers their level of competitiveness.

In a draft of the startup INI report presented to the European Parliament’s Committee on Industry, Research and Energy (ITRE) on 12 October, MEPs are advocating for the development of a comprehensive strategy that offers fresh definitions for startups and scaleups. These redefined versions would take into account the economic impact of these players and reflect in what ways they differ from SMEs. The report also calls upon the Commission to re-evaluate the impact of specific legislations, including the recently put forward SME Relief Package, on the startup ecosystem.

“It is about time we have a proper legislation initiated by the European Parliament to help support the startup ecosystem in the development of startups within the EU.” – says MEP Tsvetelina Penkova, the rapporteur of the report.

The ITRE committee is due to vote on the report on 28 November, which could pave the way for a plenary vote before the end of the year.

More information about the startup INI report in our recent interview with MEP Penkova: