Putting the Power of Web-Scale within Reach of Smaller Enterprises
Smaller enterprises access to finance
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Transcript of Smaller enterprises access to finance
WUSME AGENDA 2016 – 2021: THE STAIRCASE TO
SUCCESS
The New Approach to Sustainable Economic and Social Development
of SMEs and Crafts in a Globalized World
By Norbert W. Knoll von Dornhoff, General Secretary
The Approach
The WUSME Workshop on Innovative SMEs Financing held in the framework of the 4th
General Assembly on 16th and 17th April in San Marino recommended the following
(here summarized) General Approach for the WUSME AGENDA 2021:
“The Delegates agreed that a “Holistic Approach” will be needed to enable Smaller
Companies to fully reap the benefits of a more diversified financial offer. Since National
Institutions are decisively responsible for business success and competitiveness of
SMEs, a new architecture for SMEs financing calls for reforms of existing institutions
and where no such institutions are existing for new Institutions that assist SMEs and
Crafts to develop awareness and better understanding about alternative instruments.”
WUSME shall also in cooperation with its National Representatives and Goodwill
Ambassadors offer assistance to Government Agencies, Chambers of Commerce and
Financial Institutions for the developing a long-term strategic approach to reforms of
institutions that constrain doing business and financing, that is, understanding how
different instruments can serve their different financing needs at specific stages of the
economy and of the life cycle to leverage for SMEs and Crafts the more diversified
financial instruments. Recognizing the vital role of women entrepreneurs, delegates
took the need to work in the reinforcement of the skills of women in the various fields of
business training and financing of SMEs.
Better Access to Finance
Though all delegations emphasized the importance of better access to finance for
SMEs, they all the same expressed their doubts that standing alone even a wider range
of financial instruments would be not enough to achieve in the long run economic
growth and sufficient employment. Delegates, therefore, encouraged WUSME to design
for its AGENDA 2016-2021 a “Staircase to Success”, starting with reforms of National
Institutions and the reduction of constraints for doing business up to igniting innovations
and taking advantage of additional and new business opportunities.
Reforms of National Institutions and Removing of Development Obstacles
Since more than 10 years Governments and entrepreneurs can find out and compare in
which Countries it is easy to do business and where it is rather difficult. Over the 13
years since its inception, the Doing Business report has become one of the world’s most
influential policy publications. It is an annual report on the state of health of economies
based on detailed diagnostics not of the relatively more visible features (such as
growth) and various macroeconomic parameters (such as the public debt) but of
underlying and embedded characteristics—such as the regulatory system, the efficacy
of the bureaucracy and the nature of business governance. Other sources of
information are e.g. the annual GEM Global Entrepreneurship Monitor and the annual
WEF -Global Competitiveness Report: Interviews with thousands of business owners
reveal which constraints for SMEs are prevailing.
The following National Institutions that are decisively responsible for doing business
need to be monitored and reformed with utmost speed are:
1. Starting a Business, 2. Dealing with Construction Permits, 3. Getting Electricity,
4. Registering Property, 5. Getting Credit, 6. Protecting Minority Investors, 7.
Paying Taxes, 8. Enforcing Contracts, 9. Trading across Boarder, 10. Resolving
Insolvency.
The Enterprise Surveys (what businesses experience) of the World Bank Group
investigate on a regular basis, which top business environment obstacles SMEs are
facing- These are:
1. Electricity, 2. Access to Finance, 3. Political Instability, 4. Practices of the
Informal Sector, 5. Corruption, Crime and disorder, 6. Tax Administration and
Tax Rates, 7. Access to Land, 8. Custom and Trade Regulations.
WUSME’s Ambassadors and Representatives will in future carefully monitor the
development of National Institutions and recommend measures to reduce constraints
for SMEs doing business.
SMEs Development by Education and Training
The purpose of the Permanent Commission for SMEs Development is to support the
WUSME1s mission by establishing a framework to develop and deliver strategic
resources for SMEs and CRAFTS. This will be accomplished by providing and/or
fostering: Entrepreneurial development, Business growth and corporate governance,
Knowledge transfer to include best practices Innovation through training,
Competitiveness, Providing the methodologies and tools to maximize growth and
prosperity.
New Business Opportunities and Promotion of International Trading, - and
Industrial Partnerships
Humanity will change more in the next 20 years than it has in the previous 300 years.
Exponential technologies such as artificial intelligence, combined with advanced
robotics, virtual reality, synthetic biology and quantum computing keep accelerating the
speed of societal transformation. New emerging markets for SMEs and Crafts are
“Green Technologies” (e.g. Cleaning techniques, waste to energy, organic fertilizers,
protection of the environment.) Examples for new Business Opportunities are, to
mention some: AUTOMOTIVE Auto Repair & Maintenance Services, BUSINESS
SERVICES Advertising/Marketing Services, CHILDREN'S BUSINESSES Personalized
Children's Products, FOOD Delivery Services, HEALTHCARE SERVICES, GIFTS &
NOVELTIES, HOME IMPROVEMENT Home Staging, MAINTENANCE Blinds Cleaning,
and PERSONAL CARE Fitness Businesses.
The Transatlantic Trade and Investment Partnership (TTIP) will create new
opportunities in both the United States and the EU. These opportunities will be
especially valuable for SMEs, given that trade barriers tend to disproportionately burden
smaller firms, which have fewer resources to overcome them than larger firms. US and
EU negotiators are working to ensure that SMEs are in a position to take full advantage
of the opportunities that an agreement would provide.
Outlook
We are optimistic. Governments are making SMEs a priority, and technology is
providing effective new tools that are bringing down the costs of reaching small
customers. WUSME’s AGENDA 2016 to 2021 shall be a “Staircase to Success” to lay
the foundation for an environment where SMEs and Crafts can grow to their full
potential for creating jobs, particularly for women and younger people in less developed
economies, reducing poverty, protect the environment and improving living standards.