UNECE Industrial Restructuring, Energy UNECE Industrial Restructuring, Energy & Enterprise Development Division& Enterprise Development Division
DEVELOPMENT OF SMEs IN COUNTRIES IN TRANSITIONDr. Antal Szabó, Regional Adviser on Entrepreneurship and SMEs
UNECE Industrial Restructuring, Energy & Enterprise Development Division
SMEs as DRIVING FORCE in SMEs as DRIVING FORCE in ECONOMIC DEVELOPMENTECONOMIC DEVELOPMENT
• STIMULATE PRIVATE OWNERSHIP & ENTREPRENEURSHIP;
• FLEXIBLE & QUICKLY ADOPT TO CHANGING MARKET DEMANDS;
• GENERATE EMPLOYMENT; &• HELP DIVERSIFY ECONOMIC ACTIVITIES,
CONTRIBUTE TO GDP, ECONOMIC GROWTH, EXPORT & TRADE
UNECE Industrial Restructuring, Energy & Enterprise Development Division
EFFECT OF GLOBALIZATION EFFECT OF GLOBALIZATION CITsCITs
new opportunities for expansion and growth by taking advantage of international market possibilities;
growing economic globalisation brings competitive challenges and threats
UNECE Industrial Restructuring, Energy & Enterprise Development Division
PROVIDING OPPORTUNITIES PROVIDING OPPORTUNITIES & CHALLENGES FOR CITs….& CHALLENGES FOR CITs….
CHANGING CORPORATE STRATEGIES & PRODUCTION SYSTEMS OPEN NEW POSSIBILITIES FOR CITs TO ENTER
TECHNOLOGY-INTENSIVE & EXPORT-ORIENTED ACTIVITIES THEY COULD NOT OTHERWISE UNDERTAKE, & BECOME A PART OF INTERNATIONAL PRODUCTION
SYSTEMS.
UNECE Industrial Restructuring, Energy & Enterprise Development Division
SMEs INSMEs INGLOBALIZING WORLDGLOBALIZING WORLD
• The core of political and economic transformation of any CITs is the creation of private SME sector
• 8.5 million firms from the 11 million SMEs in CITs are micro-enterprises
• THINK GLOBAL - ACT LOCAL
UNECE Industrial Restructuring, Energy & Enterprise Development Division
CATEGCATEGOORIESRIES OF OF THETHE SME DEVELOPMENTSME DEVELOPMENT
• Countries making rapid progress (V4, 3 BALTIC STATES: EE, LV, LT, SL & CR
• Countries at an intermediate stage of transition (BG & RO, 3 CISs COUNTRIES: KY, RF & UZ)
• Countries making slow progress with less commitment (SEE, majority of CIS)
UNECE Industrial Restructuring, Energy & Enterprise Development Division
96/280/EC: Commission 96/280/EC: Commission Recommendation of 3 April 1996 Recommendation of 3 April 1996
Definition of SMEsDefinition of SMEsSmall enterprise is defined as an
enterprise which:- has fewer than 50 employees;- has either an annual turnover not
exceeding ECU 7 million, or an annual balance-sheet total not exceeding ECU 5 million;
- independency
UNECE Industrial Restructuring, Energy & Enterprise Development Division
96/280/EC: Commission 96/280/EC: Commission Recommendation of 3 April 1996 Recommendation of 3 April 1996
Definition of SMEsDefinition of SMEs
Small and medium-sized enterprises are defined as enterprises which:
- have fewer than 250 employees;- have either, an annual turnover not
exceeding ECU 40 million, or an annual balance-sheet total not exceeding ECU 27 million;
- independency.
UNECE Industrial Restructuring, Energy & Enterprise Development Division
DEFINITION OF SMESDEFINITION OF SMESIN CEECsIN CEECs
• CZ, EE, HU, LV, PL, RO, SK & SL are in full in line with EU; recommendations concerning number of employees;
• Only EE, PL & SK accepted the financial criteria
UNECE Industrial Restructuring, Energy & Enterprise Development Division
DEFINITION OF SMESDEFINITION OF SMESIN CISIN CIS
• In the RF the term of medium-sized enterprises does not exist. Only legal entities are taken into consideration while supporting small businesses;
• Majority of CIS follows the Russian economic trend. Like AR, AZ, BY, UA & UZ
• Lack of comparable SME statistics
UNECE Industrial Restructuring, Energy & Enterprise Development Division
INTEGRATED APPROACH OF INTEGRATED APPROACH OF SME SECTOR DEVELOPMENTSME SECTOR DEVELOPMENT
(i) STRATEGIC level (policy making);
(ii) INSTITUTIONAL level (support institutions);
(iii) ENTERPRISE level (entrepreneurs and business entities)
UNECE Industrial Restructuring, Energy & Enterprise Development Division
THE ROLE OF THE ROLE OF GOVERNMENTSGOVERNMENTS
Creation of an enabling business friendly environment; Creation of an adequate legislation; Formulating & implementing national SME support programmes; and Building SME support infrastructure.
UNECE Industrial Restructuring, Energy & Enterprise Development Division
GOVERNMENT POLICY GOVERNMENT POLICY SHOULD BESHOULD BE
Legislation should be oriented on creation of a suitable laws on company creation, acceptable taxation, social security and insurance systems, compliance with the labour and environment requirements, creation of a simplified accounting systems;It should be predictable, coherent, consistent and transparent.
UNECE Industrial Restructuring, Energy & Enterprise Development Division
GOVERNMENT POLICY GOVERNMENT POLICY SHOULD BESHOULD BE
The creation of a supporting infrastructure should be based on the establishment of an entrepreneurial fostering infrastructure, which did not existed during the former centrally planned economies.
UNECE Industrial Restructuring, Energy & Enterprise Development Division
PART OF THE GENERAL PART OF THE GENERAL ECONOMIC POLICYECONOMIC POLICY
• The good examples of the new EU candidate countries shows, that their Governments have a concept for promotion of small businesses within the general economic policy of which the enterprise promotion in an integral part.
• There is no unique way of elaborating such policies; they clearly depend on a number of factors, such as national endowments of a country, the degree to which entrepreneurship already play a part of economic activity, the existence of entrepreneurial skills.
UNECE Industrial Restructuring, Energy & Enterprise Development Division
COMMITMENT OF PRESIDENT COMMITMENT OF PRESIDENT PUTINPUTIN
“ We can stay that small businesses are a big state affair
…[but] we have not yet are bigmanaged to do everything
necessary for the development of this sphere….
Russia will depends on energy sector it until develops a strong layer
of small businesses”Vladimir Putin
UNECE Industrial Restructuring, Energy & Enterprise Development Division
SME SUPPORT SME SUPPORT INFRASTRUCTUREINFRASTRUCTURE
The key elements, which required for a successful national SME support programme in CITs and emerging market economies is the establishment and strengthening of infrastructure/institutions and networks promoting the creation and growing the SMEs.
UNECE Industrial Restructuring, Energy & Enterprise Development Division
ELEMENTS OF THE SME ELEMENTS OF THE SME INFRASTUCTUREINFRASTUCTURE
1. Business service institutions (business advisory, consultation and information services);
2. Business incubation;3. Promotion of FDI and linkages; 4. Creation of quality and environment
management systems;5. Training and education of entrepreneurship
(development of entrepreneurial spirit and new business culture); and
6. Financial instruments for new and growing SMEs.
UNECE Industrial Restructuring, Energy & Enterprise Development Division
BUSINESS SERVICE BUSINESS SERVICE INSTITUTIONSINSTITUTIONS
1. Assist in set-up businesses;2. Offer services in• Preparing business planning;• Assistance in management;• Financing;• Innovation;• Find partners;• Find technologies;• Information on and access to markets;
etc.
UNECE Industrial Restructuring, Energy & Enterprise Development Division
The missions of the EICsThe missions of the EICsIdentify the needs of the Enterprises
and meet themINFORM enterprises on all Community policies,activities and programmes
ASSIST enterprises in their efforts to grow and to internationalise
ADVISE enterprises
FEED BACK INFORMATION to the Commissionon the concerns and interests of enterprises and on the impact of Community programmes and legislation
UNECE Industrial Restructuring, Energy & Enterprise Development Division
Geographical coverageGeographical coverage
37 countries
265 cities
Proximity to enterprises
UNECE Industrial Restructuring, Energy & Enterprise Development Division
BUSINESS INCUBATIONBUSINESS INCUBATION
Incubators are “start-up ventures whose purpose is the development of other start-up companies” (Rice and Matthews).“Business incubation” - an interactive development process aiming at encouraging people to start their own businesses and supporting start-up companies in the development of innovative products
UNECE Industrial Restructuring, Energy & Enterprise Development Division
BUSINESS INCUBATORSBUSINESS INCUBATORSIN ADVANCED CEECsIN ADVANCED CEECs
13115634624TOTAL
16OTHER TYPE OF BUSINESS INCUBATORS
363414SCIENCE & TECHNOPARKS
5834BISs
95317216BUSINESS INCUBATORS
SLSKPLHUEECZCOUNTRY
UNECE Industrial Restructuring, Energy & Enterprise Development Division
ASSOCIATION OF INNOVATIVE ASSOCIATION OF INNOVATIVE ENTREPRENEURSHIP CRENTREPRENEURSHIP CR
WWW.AIPCR.CZWWW.AIPCR.CZ
UNECE Industrial Restructuring, Energy & Enterprise Development Division
ESTONIA TECHNOLOGY AGENCYESTONIA TECHNOLOGY AGENCYWWW.ESTAG.EEWWW.ESTAG.EE
UNECE Industrial Restructuring, Energy & Enterprise Development Division
ENTREPRENEURIAL ENTREPRENEURIAL INCUBATORSINCUBATORSASSOCIATIONASSOCIATIONWWW.VISZ.HUWWW.VISZ.HU
UNECE Industrial Restructuring, Energy & Enterprise Development Division
POLISH BUSINESS AND INNOVATION POLISH BUSINESS AND INNOVATION CENTERS ASSOCIATIONCENTERS ASSOCIATIONWWW.SOOIPP.ORG.PLWWW.SOOIPP.ORG.PL
• CREATING AN INFORMATION SYSTEMS• ORGANIZING MEETINGS, LECTURS, TRAINING,
CONSULTATIONS, CONFERENCES, COMPETITIONS;
• PUBLISHING INFORMATION AND TRAINING MATERIALS;
• CO-OPERATING WITH OTHER INDIGENOUS AND FOREIGN ORGANIZATIONS;
• INCREASING BUSINESS RESEARCH, INNOVATION & LOCAL DEVELOPMENT;
• CO-OPERATING WITH SELF-GOVERNMENTS, LOCAL AND CENTRAL AUTHORITIES, R&D CENTERS.
UNECE Industrial Restructuring, Energy & Enterprise Development Division
BUSINESS AND INNOVATION BUSINESS AND INNOVATION CENTERSCENTERS
UNECE Industrial Restructuring, Energy & Enterprise Development Division
TEAM OF EXPERTS ON QMSTEAM OF EXPERTS ON QMShttp://www.unece.org/http://www.unece.org/
operact/quams.htmoperact/quams.htm
The focus of this component of the UNECE sub-programme on Industrial
Re-structuring and Enterprise Development is the promotion of
international quality standards and quality management
systems among enterprises, especially among SMEs, in countries
in transition.
UNECE Industrial Restructuring, Energy & Enterprise Development Division
THE ROLE OF GOVERNMENT THE ROLE OF GOVERNMENT IN TNCIN TNC--SME RELATIONSSME RELATIONS
Government should:• formulate and adopt adequate laws and
incentives; • set up an appropriate institutional framework; • make sure that support required is provided
(by public or private service providers) to the firms targeted; and
• policy coherence.
UNECE Industrial Restructuring, Energy & Enterprise Development Division
KEY ELEMENTS TO PROMOTE KEY ELEMENTS TO PROMOTE SMEs TO BE SUPPLIERSSMEs TO BE SUPPLIERS
1. Setting the policy objectives of promotion of a supply programme
2. Identifying the targets of the programme 3. Identifying specific measures to be adopted 4. Setting up institutional and administrative
framework to implement and monitor the programme
UNECE Industrial Restructuring, Energy & Enterprise Development Division
FORUM ON SMEsFORUM ON SMEs
Forum on Best Practice in the development of Entrepreneurship and SMEs in Countries in Transition:2 June 1999 – CZECH REPUBLIC1 November 2000 – HUNGARY23 October 2001 – POLAND24 October 2001 - BELARUS
UNECE Industrial Restructuring, Energy & Enterprise Development Division
FORUM ON SMEsFORUM ON SMEs
19 MARCH 2003Forum on Best Practice in the
Development of Entrepreneurship and SMEs in Countries in Transition:
THE CROATIAN & SLOVENIAN EXPERIENCES
UNECE Industrial Restructuring, Energy & Enterprise Development Division
DECLARATION ON SMEsDECLARATION ON SMEs
• CEI DECLARATION ON SMEs AT THE DAWN OF THE 21st CENTURY (24 November 2000, Budapest);
• BSEC DECLARATION ON SMEs(27 September 2001, Istanbul);
• CIS DECLARATION ON SMEs (Assistance to the CIS Consultative Committee on Small Entrepreneurship)
• EUROPEAN DECLARATION ON SMEs?
UNECE Industrial Restructuring, Energy & Enterprise Development Division
ACHIEVEMENTS ACHIEVEMENTS OF THE RASPOF THE RASP
• Virtual network of SME focal points• Model for SME-sector development• SME Development web-site at
www.unece.org/indust/sme/ece-sme.htm• Statistics/Guidelines/Discussion papers• Assistance to regional groupings (BSEC, CEI,
CIS, SECI)• Organizing seminars, workshops,
conferences, training courses
UNECE Industrial Restructuring, Energy & Enterprise Development Division
SEMINARS/WORKSHOPSSEMINARS/WORKSHOPS
• Expert Meeting on Creation of Quality Assurance Systems to Enhance the Competitiveness of SMEs on 25-26 October 2001 in Geneva
• Expert Meeting on How to Become Supplier of Large National Enterprises and TNCs on 20-21 March 2003 in Geneva
UNECE Industrial Restructuring, Energy & Enterprise Development Division
SUCCESS IN SUCCESS IN INTERNATIONALISATION OF INTERNATIONALISATION OF
SMEsSMEs
1. BUILD AND OBTAIN MANAGERIAL SKILLS
2. GOOD PLANNING3. APPROPRIATE FOREIGN STRATEGIC
PARTNERS4. RIGHT MARKET ORIENTATION5. TECHNICAL CAPABILITY AND
KNOWLEDGE6. QUICK ADOPTIBILITY & RESPOND
UNECE Industrial Restructuring, Energy & Enterprise Development Division
MAJOR TOOLS FOR IMPROVING MAJOR TOOLS FOR IMPROVING INTERNATIONALISATIONINTERNATIONALISATION
i. BUSINESS INFORMATION CENTRES FOR SMEs;
ii. TRAINING PROGRAMMES IN THE FIELD OF INTERNATIONALIZATION;
iii. PROMOTION OF FOREIGN DIRECT INVESTMENT;
iv. PROMOTION OF THE SUPPLY INDUSTRY.
UNECE Industrial Restructuring, Energy & Enterprise Development Division
MESSAGEMESSAGE
“THE ROAD TO INTERNATIONALISATION OF ONE COMPANY COULD BE SHORT OR
LONG –HOWEVER, THERE ARE NO
SHORTCUTS”
Rainer VainionkulmaFinnish Foreign Trade Association
UNECE Industrial Restructuring, Energy & Enterprise Development Division
BEST WISHES FOR SMEs ON THE WORLD MARKET!
UNECE Industrial Restructuring, Energy & Enterprise Development Division
Please contact us:Please contact us:
• Dr. Antal SzabóRegional Adviser on Entrepreneurship and SMEs
• Phone: (+41 22) 917 2471• Fax: (+41 22 917 0178• [email protected]