Cosme

COSME, short for the Programme for the Competitiveness of Enterprises and Small and Medium-sized Enterprises, is an European Union program aimed at strengthening the competitiveness and resilience of SMEs across the EU and associated countries. It forms part of the EU’s broader strategy to support entrepreneurship and the single market.

The program concentrates on three core objectives. First, improving access to finance for SMEs, including through guarantee and microfinance facilities. Second, facilitating access to markets and the internationalization of SMEs, through information, services, and networking that help firms grow beyond their domestic markets. Third, fostering entrepreneurship and reducing regulatory and administrative barriers to business creation and growth.

Key components include the COSME Loan Guarantee Facility, which is administered by the European Investment Fund and provides guarantees to lenders to increase SME lending; a microfinance facility to support small-scale entrepreneurs; and various actions to assist SME internationalization and market access, such as advisory services and business services funding. Together these instruments are intended to mobilize private investment and strengthen the European SME ecosystem.

Governance and implementation involve the European Commission, with the EIF operating the loan guarantee facility and EU agencies—such as the predecessor and successor bodies to EASME—handling program administration and implementation. COSME was launched in 2014 under Europe 2020 and continues under the EU’s current multiannual financial framework, maintaining a focus on improving SME access to finance, markets, and entrepreneurship.

Related topics include the European Investment Fund and the EU single market framework.