Most of the enterprises in the first category are either foreign owned or in the public sector.

Also, SMEs in developing countries could benefit from the experience of SMEs in developed countries.

Not just large Chinese enterprises but SMEs too are investing abroad.

Ukraine

SMEs in the software industry are disproportionately more internationalized than SMEs in manufacturing activities This reflects the competitiveness of Indian SMEs in software activities.

China s Repressed SMEs

Since the majority of SMEs investing abroad are looking for local SMEs to partner with, it is important that host countries encourage the development of their SME sectors so that local enterprises have the capability to form alliances or joint ventures with the investing SMEs from abroad (Cho 2003 UNCTAD 1998).

Mr. Toru Ueno, Principal Administrator, OECD Centre for Entrepreneurship, SMEs and Local Development (CFE), Small and Medium sized Enterprise (SME) and Entrepreneurship Division, OECD

As in the case of Internet access, the prevalence of websites is higher the larger the enterprise 53 per cent of small companies, 76 per cent of medium sized companies and 89 per cent of large companies.

Larger enterprises from developing countries have internationalized more than SMEs in terms of transaction value.

SMEs provide a breeding ground for entrepreneurs.

Small and Medium sized Enterprises . XXXIII(II)

FDI from SMEs has the potential to increase the international competitiveness of the SME sector in both home and host countries.

45 of all micro enterprises and small businesses in the country are owned by women and generate one third of the employment in those businesses.

Moreover, support mechanisms and programmes need to respond to the diversity of firms involved and the types of problems faced by different categories of SMEs, ranging from subsistence or income supplementing microenterprises operating in the informal sector to internationalized, technologically advanced SMEs.

The purpose of Empretec is to help foster entrepreneurial capabilities and the growth of internationally competitive SMEs in developing countries.

The number of developing country firms among the Fortune 500 companies rose from 29 in 1998 to 45 in 2005.

Six of the worlds' top 10 grocery retailers are from the United States, and four of these do not operate outside home territory.

Its main focus is on micro, small and medium scale enterprises, cooperatives, and community economic development, in both developed and developing countries.

Small and medium size enterprises

The beginning of joint ventures abroad by manufacturing SMEs can be traced back to two different time periods depending on the size of firms (medium sized versus small enterprises).

Experience shows that SMEs normally internationalize their activities faster than large firms.

With respect to the types of enterprises, one may distinguish between informal sector enterprises, essentially microenterprises, and enterprises in the formal sector, which include some microenterprises, SMEs and large firms.

In developing countries and transition economies, it is the local firms small and medium enterprises (SMEs) which are responsible for most economic activity. On the one hand, there are modern SMEs in the developing countries that need to be nurtured into efficient and competitive enterprises.

These enterprises have operations in neighbouring countries such as China and Malaysia.

There is also a rural entrepreneurial revolution in China.

Unleashing Entrepreneurship Making Business Work for the Poor.

(c) Assistance to the revival of micro, small and medium enterprises (MSMEs)

Experience shows that the development of subcontracting arrangements between large firms and SMEs can give an incentive for large firms to provide financial, technical and other assistance to SMEs.

While shortage of finance could affect all firms, it is particularly constraining for small and medium sized enterprises (SMEs) and firms in LDCs.

Corporate contracts place the profit oriented legal person at the center of the transaction and bind all of its stakeholders. Chinese corporate contracts have grown exponentially over the last 30 years, but they have special characteristics that reflect the primary role of Chinese state owned enterprises.

Developing Country Firms through Internationalization

Expert Meeting on Enhancing Productive Capacity of Developing

There was a strong need to improve the productive and supply capabilities of domestic companies, especially SMEs.

China would protect the lawful rights and interests of foreign invested enterprises.

The Chinese economy is no longer the state owned and state managed system that it was when I first visited more than 30 years ago. In those days, there was no private enterprise, and it was illegal for anyone but the government or a state owned enterprise to hire an employee.

The representative of the Islamic Republic of Iran said that, on the issue of enhancing enterprise competitiveness, SMEs in developing countries did not necessarily benefit from TNC SME linkages, mostly because of structural weaknesses in SMEs.

The Indian entity held 56 per cent stake.

The lack of statistics has hampered analysis of the internationalization strategies of developing country enterprises, particularly SMEs.

Although many SMEs still rely mainly on domestic markets, the internationally active share of SMEs is increasing.

Its first objective was to examine how enterprise competitiveness in developing countries and economies in transition could be enhanced through internationalization, with a focus on outward foreign direct investment (OFDI), particularly by small and medium sized enterprises (SMEs).

Prospects for the world steel market and opportunities for new entrants, in particular for developing countries

It is argued that OFDI from SMEs has the potential to increase the international competitiveness of the SME sector of both home and host countries.

2. The meeting recognized the importance for all countries, especially developing countries, of benefiting from practical possibilities to assess the potential benefits of electronic commerce for their own enterprises, in particular small and medium sized ones.

International competitiveness among firms is in fact significantly influenced by the national environments in which firms operate.