The number of small and medium-sized enterprises (SMEs) per 1,000 people will rise to 25 by 2020. The SMEs will employ about 65% of the economy workers, while their share in the GDP will represent 38%, IPN reports, quoting the bill on SMEs approved by the Cabinet on March 30.

The bill’s provisions were adjusted to the European principles for developing this business sector with the aim of stimulating the creation of SMEs, reducing the administrative barriers and enhancing the competitiveness of the SMEs.

Thus, in accordance with the good practices of EU member states, a Consultative Council for SMEs will be set up to analyze the competitiveness of the sector and formulate recommendations for improving the business climate. It will consist of representatives of the Government, private sector and NGOs.

The SMEs will be able to take part in the public procurement of goods, services and works. Their participation quota will be at least 20%.

It is planned that 0.2% of the gross value added of the SME sector in the GDP for the previous year will be allocated annually to support the SMEs. In 2016, this figure is expected to be of about 85 million lei.

The SMEs will deduct the costs associated with entrepreneurial education and continuous professional development of employees. During the first three years of activity, the inspections at SMEs will be consultative in character and no penalties will be imposed.

Currently, the SMEs represent 97.4% of the total number of companies in Moldova. Over 56% of all the employees work in this sector. SMEs’ revenues in 2014 represented 33.4% of the total revenues in the economy. The share of the SMEs in the GDP is 32.2%.

SMEs are considered the companies with an average annual number of employees of 9 to 250, whose annual turnover is of 3 to 50 million lei or that possess total assets to the value of 3 to 50 million lei.