SMEWG RESOURCES

Initiative funded by Canada that intended to foster economic growth and reduce poverty in APEC developing economies by building the potential of MSMEs and aspiring entrepreneurs. The initiative has 2 components: C$2M APEC MSME Sub-Fund and C$2.49M for research and training project under the coordination of Asia Pacific Foundation. Asia Pacific Foundation collaborates with APEC in the following areas: (i) Sharing best practices, (ii) Finding common points on project collaboration, (iii) Highlighting new ideas to explore and expand, (iv) Identifying common interests and build on them, (vi) Extending and complimenting other projects with common goals.

Hong Kong, China shared their experience in assisting SMEs’ access to the global markets. Through the work of the Hong Kong Trade Development Council, a trade promotion body, SMEs in Hong Kong, China were able to explore a world of business opportunities. In addition, different government finance support measures, export credit insurance and general support such as SME centres enhanced SMEs’ capabilities in engaging in global business.

Aimed at helping develop or improve Trade Promotion Organisations’ services to better support women-led SMEs access global markets. Phase one of the project in 2014/15 identified the barriers women exporters face and developed a set of best practices and lessons that can be adapted to the individual circumstances of APEC economies. In 2016 and 2017, in phase two of the project, Australia is providing assistance to targeted economies to address economy specific barriers.

Singapore shared its experience in building a vibrant e-commerce business environment. The growth of e-commerce market, especially in ASEAN, had brought about new opportunities for retailers. Singapore had developed 3 strategies – build enterprise e-commerce capabilities, strengthen infrastructure and network for economies of scale and help retailers capture e-commerce market potential. Government could support retailers by developing the digital infrastructure and facilitate retailer’s partnership with private sectors in developing e-commerce platforms. On the other hand, retailers had to strengthen its e-commerce capabilities and capture market opportunities presented by the established network of partners, especially in APEC.

Dare a focal agency to nurture and support SME development in Brunei. This is part of Brunei Government’s new initiatives to provide an effective and attractive ecosystem to spur and stimulate positive growth of Brunei SMEs.

Hong Kong, China’s (HKC) sharing focused on their continuous efforts in driving the development of innovation and technology (I&T), with a focus on re-industrialisation. By re-industrialisation, HKC aimed at applying I&T to manufacturing for developing high-end industries suitable for HKC and carrying out high value-added production processes. To achieve this, a number of measures have been taken, including providing more space for industrialisation, assisting existing industries to move towards high value-added production, strengthening research and development, and providing financial assistance for upgrading and innovation.

Initiative oriented to encourage the youth (between 18 – 40 years) to venture into business. The objectives of this program are to acculturate entrepreneurship, create a paradigm shift from job seekers to employment providers, and create resilience and sustainability of entrepreneurs. After the successful completion of Phase 1 (Test the Perseverance of Mind & Physical) and Phase 2 (Increase Knowledge – Effective Business Operations), the participants will receive RM15, 000 (USD3,628) to assist them in starting the business and will be able to utilize the a Buddy System for 12 months upon the business establishment to receive advice from experienced and trained Business Counsellors.

Recent developments in support to innovation and technology (I&T). Hong Kong, China set up a dedicated bureau and put significant financial resources to carry out a number of initiatives, including promotion of “re-industrialization”, research and development; supporting I&T start-ups and SMEs; nurturing talents, etc.

Hong Kong, China’s (HKC) presentation focused on their multi-folded support measures to enhance the competitiveness of its SMEs for their greater participation in the Global Value Chains. These measures included the promotion activities by the Hong Kong Trade and Development Council to enable SMEs to explore and connect with the global market; funding support to assist SMEs to upgrade their business and innovate; promoting research and development and their commercialization; and providing infrastructure and other institutional support to facilitate the movement of goods across borders.

Chinese Taipei shared their experience in promoting SMEs in GVCs through turning from manufacturers into solution providers in terms of recycling PET bottles to functional textile. Companies transformed PET into technical fibre and established their own brands of sporting goods which attached to environment-friendly products. A specific case study is the S.Café® series with the growth of 22% CAGR in 2009-2013 and co-brand with international firms.

To enhance entrepreneurial activity in Russia and to increase the visibility and accessibility of support to SMEs, the Joint-Stock Company Russian Small and Medium Business Corporation (RSMB Corporation) was established in 2015. There are five main activity areas: (i) Providing better access to procurement of companies with state ownership, (ii) SMEs financing support including loans and guarantee support, (iii) Information and marketing support, (iv) Property support, and (v) Legal support. A 10% quota for procurement from SMEs was established by law for the companies with state ownership, which is monitored by RSMB Corporation. As the result, product range of state-owned companies available for SMEs has increased by 26 times. National Guarantee System (NGS) based on 3-level model of MSME credit guarantee support was established. If the companies have projects in priority sectors of Russian economy, RSMB Corporation implements a special Program that fixes interest rate on loans amount from 740 thousand USD at 11% for small companies and at 10% for medium-sized companies. Due to the specific features of Russian SMEs and short history of private business in Russia there was specially designed Business Navigator – a web tool for businesses. Its goal is to help the entrepreneur to find the proper location and the proper type of business to start and where to address to receive information, finance, property and legal support.

Presentation on the financial instruments to promote SMEs credit. The presentation referred to factoring as a financing mechanism for SMEs, going through a quick reminder of what was the context of factoring in Peru, the bottlenecks found and current status. This review would lay the ground for the economy to explore the best practices and achievements in this specific area.