Seldia (The European Direct Selling Association) announced its recommendations for the 2024 -2029 mandate of the EU Institutions: Unleash EU Direct Selling Entrepreneurial Potential
Seldia calls for 3 key priorities to achieve a competitive Single Market that makes doing business more social and responsible:
• The need for better enforcement and harmonisation.
• The need for a business-friendly ecosystem and recognition for microentrepreneurs.
• The need to recognise and promote entrepreneurship and soft skills.
The need for better enforcement and harmonisation for a fair Single Market
Consumer protection is a cornerstone of a healthy economy, ensuring that consumers can trust the products and services they purchase. However, varying levels of enforcement across EU Member States lead to inconsistencies and create a less predictable business environment. Stronger enforcement has several key benefits. It boosts consumer confidence: when consumers know that their rights are protected, they are more likely to engage in transactions, thereby promoting economic activity. It ensures fair competition: inconsistent enforcement creates unfair advantages for businesses that do not comply with consumer protection rules. Uniform enforcement ensures a level playing field for all. It reduces fraud and misconduct: strong enforcement deters fraudulent practices and misconduct, thereby protecting consumers and honest businesses.
Despite the importance of consumer protection, several challenges hinder effective enforcement. Different Member States have varying levels of commitment to consumer protection, leading to fragmented enforcement. Many regulatory bodies lack the resources and manpower to enforce consumer protection effectively. The complexity of consumer protection laws can make them difficult to enforce, leading to confusion and inconsistent application.
The need for more support and recognition for microentrepreneurs to reignite the culture of entrepreneurship across the EU
As relationships at work are changing fast and profoundly, and more and more Europeans want to move towards independence, we are advocating for a stronger focus on entrepreneurship and micro-entrepreneurship in the new mandate, with an emphasis on recognising self-employment status and removing barriers that hinder micro-entrepreneurs. Micro-entrepreneurship plays a critical role in fostering economic growth, job creation, and social inclusion across the European Union. It enables individuals to start small-scale businesses, often from their homes, and provides a stepping-stone towards greater economic independence.
Direct Selling is a great example of micro-entrepreneurship, offering a low-risk pathway to self-employment. While Direct Selling creates economic opportunities for everyone regardless of age, gender, qualifications, or experience, it also has a significant positive impact on women’s occupation/employment and entrepreneurship. About 80% of direct sellers are women. Policies that support gender equality and women’s empowerment are also crucial.
Despite its benefits, micro-entrepreneurship faces several challenges in the EU, as micro-entrepreneurs often fall into grey areas within existing regulations, thus leading to uncertainty about their legal status. Micro-entrepreneurs, especially those starting small businesses, often lack access to funding, training, and resources. Complex regulations and bureaucratic processes can discourage individuals from pursuing self-employment.
The need to recognise and promote Direct Selling as an opportunity to grow skills and to contribute to a sustainable Single Market for all
Direct Selling offers individuals the opportunity to develop interpersonal and entrepreneurship skills, contributing to economic growth and individual empowerment.
The skills developed through Direct Selling are transferable to other business and employment opportunities, making them valuable assets for individuals and the broader economy and society. With 99% of businesses in the EU being SMEs and forming the backbone of the European economy, recognising entrepreneurship skills can have several positive outcomes and benefits. Recognition of Direct Selling skills can open doors to further career opportunities for individuals, both within and outside the Direct Selling sector, and it can enhance direct sellers’ career opportunities. It can also be an encouragement for entrepreneurship: when skills acquired through Direct Selling are recognised and valued, more individuals are likely to pursue entrepreneurship, leading to greater economic activity and innovation. By acknowledging the skills gained through Direct Selling, policymakers can help reduce barriers for individuals looking to start their own businesses.
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