05/03/2002

Benchmarking for SME's promoted by the EC

Benchmarking, which involves making comparisons to identify best in class and highlighting areas for improvement within an organisation, has been identified by the European Commission (EC) as a tool for enhancing the competitiveness of European Industry.

Recognising the importance of benchmarking for small firms, CAM Benchmarking was established in 1994 in Belfast, Northern Ireland. CAM (Competitive Analysis Model) Benchmarking is a strategic benchmarking service aimed specifically at small firms. The benchmarking process at CAM is straightforward and where appropriate is facilitated by local development agencies.

This tool is provided completely free of charge and has been successfully used by almost 2000 local firms.

The European Benchmarking Network (EBN) was established by the European Commission in 1997 and currently has over 400 members from 15 Member States.

One area of focus for the EBN is benchmarking of Small and Medium Sized Enterprises (SMEs).

Over 99 per cent of all enterprises in Europe are small and medium sized with less than 250 employees. In general few small firms carry out any form of benchmarking activity, yet they are most in need of improving performance.

The EBF aims to find ways to simplify the benchmarking message to SMEs, it aims to spread the message regarding benchmarking to SMEs and also to key policy makers at national and regional levels. Its objective is to promote a common approach to benchmarking throughout Europe and to create synergies between those responsible for benchmarking in each market. It promotes the sharing of information between countries.

Among the reasons that small firms have not adopted benchmarking as a tool to improve competitiveness is that it is viewed as being too complicated, too costly, time-consuming and difficult to apply in a practical way which will add value to the firm.

(GB)

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