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Small Business Act Principle X: Encourage and support SMEs to benefit from the growth of global markets. By Igor J. Mitroczuk PhD Econ. Encourage and support SMEs to benefit from the growth of global markets - facts.
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By Igor J. MitroczukPhDEcon
Only 8% of European SMEs report turnover from exports (figure for largeenterprises is28%).
Only12% of the inputs of an average SME are purchased abroad.
Fast-growing markets present untapped potenti
al for many European SMEs.
Trade barriers impact more on SMEs than on larger companies because of their limitedresources and lower capacity to absorb risks, especially when operating in intenselycompetitive markets.
SMEs therefore need assistance in:
- getting information on potential partners
- openings in their markets.
- overcomingcultural barriers and differences in regulatory or legalenvironments.
EU business centres helping the EU SMEs to enter third-country markets were established in India and China.
Both centers provide business support services including matchmaking, market access assistance, guidance on regulatory issues, IPR.
The IPR Help Desk in China has been operational for the last three years delivering a targeted advice on IPR issues to EU SMEs.
The Enterprise Europe Network continues to enlarge in third countries.
The Commission established a number of SME policy dialogues both bilaterally (China, Russia) and multilaterally (EU-MED Cooperation, Eastern Partnership) aimed at approximation of SMEs policy framework.
Market Access Teams are now operations in 30 key export markets. They bring together trade councilors, European Commission and EU business organizations closely cooperation to inform each other about trade barriers and the way how to tackle them.
A study on internationalisation of European SMEs was completed.
1Improve awareness - the UK and PL Passport to export, the Dutch programme Prepare2start
2Focus on micro and small SMEs - First Flight IR
3 Combineinnovation and internationalisation - InnovationPackages DK, NCBR in PL,
4Not only export, also import - Marketplace BalticRegion SE
5 E-commerce – PIPENET in ES
6Improve efficiency in collecting market information -
1 EIM (2011) based on 8 measures: the most efficientaresupportservices that combine aspects of advice in designing internationalisation
plans and strategies, provision of market informationand support in establishing business contactsin the target country
2 OECD/APEC (2008)based on a 45 country survey, notes that SMEs new tointernational activity need information about markets and opportunities.
Government supportservices should pay more attention to these experienced companies, and focus on more types
of internationalisation than exporting.
3 evaluations of UK Trade & Investment (UKTI) programmes: innovative firms derivegreater benefit from UKTI’s support services and inexperienced internationalising companies benefit most fromgeneral supportservices;
The value for money for support services in 2009 is £16:£1 benefit to cost ratiowith passport service at £17:£1 and International Trade Teams in the English Regions (internationalisation and sector experts present in
local offices in the UK, who can provide tailored support) achieve a benefit cost ratio of £25:£1
Daniel Lederman, World Bank Policy ResearchWorking Paper 4044 November 2006 (revised March 2007) 108 TPOs in variouscountries
Averageworldvalue for maneyis US$1 to US$40
For Eastern Europe and someAsiancountriesitcan go up to 1 to 100
1) The averagescalepays the most with justspending in the range of 1 US$/per capita;
2) the bestresultswhenmade in PPP,
3) no need to doubleorganisationsefforts – one TPO per country
4) On domestic market importantareinformation and support services
5) for developedcountries trade promotionrepresentativesareimportant,
6) the most efficientareactionsdirectedtowards medium and largeexporter, leastefficientactionstowards non-exporters (confirmed by Nowak in PL)