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

Small and medium size enterprises

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

SMEs provide a breeding ground for entrepreneurs.

SMEs investing abroad can normally be found among the more growth oriented SMEs.

External financing also covers a good portion of operating expenses for health projects and programmes.

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).

C. Financing SMEs

Needs of SMEs

focus on the participation of SMEs

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

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.

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

An alternative is the membership of SMEs in an umbrella body representing business as a whole, with the creation of an SME Committee to articulate SME interest.

C. Needs of small and medium sized enterprises

Needs of Small and Medium sized Enterprises

V. THE CASE OF SMALL AND MEDIUM SIZED ENTERPRISES (SMEs)

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.

China s Repressed SMEs

22. The nature of the services required by SMEs must be defined on the basis of the typical characteristics of the SME.

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).

(1) Training on Development of Small and Medium Enterprises

Addressing the needs of SMEs

Software SMEs contributed significantly to OFDI stock (47 per cent), whereas manufacturing OFDI by SMEs was small (table 6).

In this context, the pros and cons of umbrella organizations vs. specialized organizations for SMEs need to be taken into account.

As a part of the programme, UNIDO will also participate actively in various forums related to the development of policies for the implementation of the Montreal Protocol, including

Improve the business climate for Small and Medium Enterprises.

The range of business services to which SMEs need access reflects the fact that SMEs must rely on external resources for services which larger firms can provide in house.

With regard to making SMEs more competitive, his Government had undertaken several support measures for SMEs, including advisory services for exporting SMEs.

Support for small and medium size enterprise (SME) development (Empretec).

V. THE CASE OF SMALL AND MEDIUM SIZED ENTERPRISES (SMEs) 55 61

3. A vital role for SMEs

10. The experts recommended that the importance of SME development be put on the global agenda and that UNCTAD should introduce the topic of SMEs in the General Assembly so that all Governments appreciate the contribution of SMEs and discuss ways to promote them.

Like the larger enterprises, SMEs from Singapore have benefited from the regionalization of their operations.

In several countries, SMEs have tried to organize themselves by setting up their own SME sections within existing business associations or, even more radically, have tried to establish independent small business organizations.

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

SMEs active in foreign investment increased from 16 of total SMEs in 2000 to 37.6 in 2002 (OECD 2004).

Attention may be paid to the needs of small and medium sized enterprises.

(d) Level of SME participation

Major obstacles to SME development

3. A vital role for SMEs 11

Small and Medium sized Enterprises . XXXIII(II)

Development of accounting module small medium enterprises

For example, SME support should always be of a promotional nature, designed to help promising SMEs to grow and not to save SMEs for the sake of saving them.

Panellists also saw the need for targeting tax incentives at and ensuring adequate credit for SMEs, and providing subcontracting opportunities for SMEs in public sector projects.