e-business development services for smes in gms countries
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E-Business Development Services for SMEs in GMS Countries
ICT Applications SectionInformation, Communication and Space Technology DivisionUnited Nations Economic and Social Commission for Asia and the Pacific (ESCAP)
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Year Total No.SME Distribution (%)
Cambodia 2001 40,000 98.8 (industry sector)Lao PDR 1999 22,131 99.4Myanmar 1999 55,523 99.2Thailand 2003 1,995,929 99.5Viet Nam 2002 62,90895.1Yunnan 2001 66,680 99.8
95% SMEs
Background SMEs (small and medium enterprises) are the main drivers of the GMS economy
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Background
Increasing trend – globalization: businesses target global market; more competitive
Information and Communication Technologies (ICTs) are increasingly becoming necessary tools for SMEs
ICTs allow SMEs to enter the global economy and open new opportunities for conducting business
ICTs are already being used by SMEs in GMS countries
SMEs and their supporting agencies are often not aware of the opportunities that ICTs have to offer
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Unable to provide e-business development services to SMEs
Lack of knowledge on e-business
No hardware /software infrastructure
No demand from SMEs
Low level of competitiveness of SMEs in the global market
Problem
Cause
Effect
Problem analysis
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Objective Means Ends
ESA is able to provide e-business development services to SMEs
Enhanced knowledge on e-business Improved software/ hardware infrastructure Increased demand on e-business services from SMEs
Improved competitiveness of SMEs in global market
Identification of objectives
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UNESCAP project on e-business development
Project goal• To enhance the support of enterprise support
agencies for e-business initiatives of SMEs Project outcome
• Enterprise support agencies improve their support for e-business initiatives and publicize e-business development services
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Phase I Assessment and situation analysis (desk study and
needs assessment survey) National strategies for e-business service development
for each GMS country (national stakeholders workshop) Knowledge sharing subregional workshop
Phase II Training of enterprise support agencies (two trainings) One pilot e-business development service, including
provision of hardware/software to introduce/enhance the services and roadshow to promote e-business development services, in some participating countries
Project Activities
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Desk study Needs Assessment Survey
E-business development service needs and strategic directions are identified for the region and each country
National stakeholder consultations
Sub-regional Workshop
Enterprise Support Agencies under-stand the needs and potential of e-business development services
Good practices are identified
Phase I
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Enterprise support agencies are convinced of the need and potential of e-business development services
and support the project objectives
Activities: trainings and pilot project implementations1. Improve e-business and training skills (trainings)2. Improved information infrastructure for SMEs (E-business
services at ESAs)3. Awareness raising of benefits of e-business for SMEs
(Roadshow/Launching events)
PHASE II
Phase II
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Desk Study: e-Business development services for SMEs
Business development services (BDS):
services used by entrepreneurs to operate and grow businesses.
e-Business development services (eBDS)
services related to use of ICTs for business.
[ICT-based / Internet-enabled /Web-based services]
e-Business: use of computers and networks (ICTs) to do business or
improve business processes.
Definitions: BDS, eBDS BDS categories
www.seepnetwork.org
1 Market access
2 Infrastructure
3 Policy/Advocacy
4 Input Supply
5 Training &
Technical Assistance
6 Technology &
Product Development
7 Alternative financing
Mechanisms
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Desk StudyICT Penetration in GMS Countries
0 3 6 9
Cambodia
Lao PDR
Myanmar
Vietnam
China
Thailand
Asia
World
PCs per 100 inhabitants0 4 8 12
Cambodia
Lao PDR
Myanmar
Vietnam
China
Thailand
Asia
World
Internet users per 100 inhabitantsInternet users per 100 inhabitants
Yunnan
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Thailand (2003)• 11% of all businesses have PCs.• 1.2% have websites. • Asia Foundation SME 2001 survey: > Half with websites [tourism] > 40% had online ordering systems > 13% were members of e-portals
Viet Nam (2003)• <10% enterprises, networked IT users.
Yunnan (2001, 2004)• 8.5% businesses used e-commerce.• Yunnan, 1.1% of Chinese websites
Small survey of ICT use among SMEs in Cambodia and Viet Nam (Sinha 2004)
• Common: word proc, e-mail, research• Sometimes: website, e-marketplaces
Myanmar (2002)• Computerized systems in industries:
finance, insurance 90%
service 50% wholesale, retail 33% manufacturing 20%
• Very low IT demand from SMEs
Lao PDR (2003)• Local private companies, 1/5
of Internet subscribers
Desk Study:ICT use in business
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ENVIRONMENT• Lack of regulatory framework• Security issues
INFRASTRUCTURE• Limited telecommunication lines• High costs, slow connections
CULTURE• Use of credit• Language and netiquette skills• Shopping habits• Trust/security
External barriers
MANAGEMENT and SKILLS• Other management priorities • Lack of skills on ICT use
Internal barriers
Cambodia Draft Sub-decree on Electronic Transactions
Lao PDR none
China Draft electronic signature act
Myanmar Electronic Transactions Law 2004
Thailand Electronic Transactions Act 2001
Viet Nam Draft e-commerce law
Desk Study:Constraints for ICT use in SMEs
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Needs Assessment: Enterprise Support Agencies and e-Business servicesTo analyze the level of ICT usage and adoption among ESAs in the GMS countries
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Needs Assessment:Use of ICT Tools among SMEs
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Fixed line telephone
Fax Mobile phone
PC: personal computer
E-mailLAN: Local Area Network
WAN: Wide Area Network
The Internet
Intranet
Extranet
(EDI: Electric Data Interchange
Other
N/A
I do not know
None
Some
Most
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Needs Assessment:Suggested ICT use in supporting SMEs
0%
20%
40%
60%
80%
100%
Website development
E-mail communication
Enterprises Resource Planning
Customer Relationship Management
E-procurement
Supply Chain Management
Strategic planning
Export/import trade procedures
E-commerce
Market reserach
Other
N/A
Not Important
Less Important
Important
Very Important
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Needs Assessment:Importance of e-Business services
0
10
20
30
40
50
60
70
80
90
100
Very Important
Important
Less Important
Not Important
N/A
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Needs Assessment:Importance of types of information
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Needs Assessment:Biggest Obstacles in Supporting SMEs with ICTs
Lack of awareness
Lack of Human Capacity
Inadequate Legal Framework
Lack of Hardware and Software
Lack of Basic Telecommunication
Infrastructure
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E-business fundamentals Sector Specific Approaches What is e-business? Why e-business for SMEs? Buying and selling E-payment Offline infrastructure: Logistics E-marketing Policy and regulations Dos and don’ts E-business development plan What it takes to operationalize e-business
Handicraft
Travel/Tourism
To provide the core foundation skills for ESAs to provide training services to SMEs in the respective countries.
E-business Training Modules
www.unescap.org/icstd/applications/projects/e-business-GMS/tw2/modules.asp
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e-Business Pilot Projects
upgrade technical capacity for development and promotion of e-business services for SMEs
Participating countries: Cambodia, Lao PDR, Viet Nam, Yunnan Province of China
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Pilot project in Cambodia
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Pilot project in Lao PDR
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Pilot project in Viet Nam
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Pilot project in Yunnan Prov. China
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Evaluation of e-Business Pilot Projects
To evaluate the impact of the project on the effectiveness of e-business development services provided by the ESAs, and in particular on their impact on the SMEs’ use of ICT
End of the project: 31 October 2006
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Interim Evaluation Results Project is relevant Project has been efficient and effective Impacts
• enhanced awareness • capacity built• networks of ESAs in promoting e-
business Sustainability: Government supporting
informatization services for SMEs
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Policy Recommendations Specific programmes to promote e-
business services Integrate trade and transport facilitation
initiatives with e-business development programmes
Development of domestic ICT markets to meet the e-business needs of SMEs
Develop and/or implement ICT policies and regulations related to online transactions
