The opinion "Supporting SMEs in regional value chains – fostering the proximity economy" of ECR rapporteur Oszkár Seszták has today been adopted today by the ECON Commission of the European Committee of the Regions.

"The proximity economy holds great potential to improve EU economic resilience and territorial cohesion", said Mr Seszták. SMEs in a proximity economy rely on local and short supply chains and need specific measures. The ECR rapporteur explained how these local, often family-run SMEs need tailor-made support and SME-friendly legislation to cope with the current economic challenges, and to be able to "carry on their unique added value and contribution to long-term economic growth in regional value chains".

Proximity businesses are characterised by local and short value chains within a closer geographical area, encompassing activities of local industry actors and small business working across different economic sectors. They often run on a multigenerational perspective. 

Mr Seszták underlined how vital proximity businesses are to local communities and territories especially vis-à-vis the emergence of large e-commerce players that have had "an adverse effect on local businesses". Supporting the proximity economy is therefore an opportunity to reignite local economic life by "encouraging small businesses to re-invent themselves and experiment with new and digital business models". Following today's approval, the opinion will go to the CoR plenary session in February 2025.