OBSERVATORY ON EUROPEAN RESEARCH FOR CRAFTS AND SMEs

Issued by Academy Avignon of Crafts and SMEs in Europe

The Observatory on the European Research for Crafts and SMEs was set up by the Academy Avignon of Crafts and SMEs in Europe, based in Brussels. Its mission is to monitor the results of research on Craft and SMEs carried out in Europe by several bodies e.g. research centres, universities, the EC agencies. The Observatory diffuses the results to Crafts and SME organizations and the other relevant stakeholders.

NEWSLETTER
MAIN CONTENTS IN THIS ISSUE

NOVEMBER 2012/N.43

1. Financing Practises and Preferences for Micro and Small Firms 2. Organizing Corporate Social Responsibility in Small and Large Firms: Size Matters 3. Engaging Small and Medium Enterprises in Production Networks : Firm-level Analysis of Five ASEAN Economies 4. Evolution of the venture capital financing for growing small and medium enterprises in Central and Eastern Europe countries: the case of Macedonia

Financing Practises and Preferences for Micro and Small Firms

Nikolaos Daskalakis (The Small Business Institute of the Hellenic Confederation of Professionals, Craftsmen and Merchants, Greece), Robin Jarvis and Emmanouil Schizas (ACCA, UK)
Author(s): Summary (EN)

This paper has different objective, first of all to analyse SME finance themselves; second, to investigate what their financing preferences are; third, to evaluate different ways to access funding and delays to obtaining it. This paper analyzes different types of finance that are used by SMEs. The authors draws attention to small firms and their low access to credits. The focus of this paper is on issues relating to the capital structure of micro and small firms in Greece, which has a higher proportion of these firms in the EU categorisation of SMEs, and is the first investigation of the financial issues of smaller SMEs in this member state.

Link

Organizing Corporate Social Responsibility in Small and Large Firms: Size Matters

Dorothe Baumann (University of Zurich - Institute of Organization and Administrative Science ), Christopher Wickert (University of Lausanne - School of Economics and Business Administration ), Laura J. Spence (University of London - Royal Holloway College ), Andreas Georg Scherer (University of Zurich - IBW Department of Business Administration )
Author(s): Summary (EN)

Based on the findings of a qualitative empirical study of corporate social responsibility (CSR) in Swiss MNCs and SMEs, the authors suggest that smaller firms are not necessarily less advanced in organizing CSR than large firms. Results according to theoretically derived, bespoke assessment frameworks illustrate the actual implementation status of CSR in organizational practices. Contrary to commonly raised perceptions in the CSR literature, the authors suggest that small firms possess several organizational characteristics that could promote the integration of CSR-related practices in core business functions, while large multinational corporations possess several traits that enhance communication and reporting about CSR. The authors propose a theoretical explanation of these differences in CSR implementation in MNCs and SMEs based on the relationship between firm size and relative organizational costs. Link

Engaging Small and Medium Enterprises in Production Networks : Firm-level Analysis of Five ASEAN Economies
Author(s):

Ganeshan Wignaraja (Asian Development Bank Institute )

Summary (EN)

The Association of Southeast Asian Nations JEL Classification : F10, F23, O14 (ASEAN) small and medium enterprises (SMEs) are under scrutiny for their engagement in production networks following recent emphasis on increasing intra-regional trade, rebalancing, and inclusive growth in Asia. Using a data set covering 5,900 firms in five ASEAN economies at different stages of development, this paper analyses the participation of SMEs in production networks, determinants, and policy implications. It finds that although large firms dominate production network engagement in ASEAN economies, there are signs that SMEs have modestly increased their participation since the late-1990s. This is linked to firm-specific factors (e.g., firm size, foreign ownership, skills, technological capabilities, and access to credit) as well as a supportive business environment. Tackling residual supply-side and policy constraints can further the participation of ASEAN SMEs in production networks.

Link

EVOLUTION OF THE VENTURE CAPITAL FINANCING FOR GROWING SMALL AND MEDIUM ENTERPRISES IN CENTRAL AND EASTERN EUROPE COUNTRIES: THE CASE OF MACEDONIA
Author(s):

Lazarevski Dimche ,Mrsik Jadranka, Smokvarski Edi (University American College

Skopje, Macedonia)
Summary (EN)

The objective of this paper is to examine and analyze the differences between Venture Capital development in Macedonia and several Central and Eastern Europe countries, to determine the reasons, and hence extract certain conclusions that will serve as a guideline in Macedonias venture capital industry development. Venture capital is an important intermediary in financial markets, providing capital to firms who otherwise have difficulties attracting financial support. Moreover, venture capital funds provide managerial expertise to the company they are investing in, and have impact on the overall economy through innovation, job creation, economic growth, increased competition and improved corporate governance. Private equity and Venture capital funds are present for over 20 years in Central and Eastern Europe. The institutional investors evaluate the individual countries attractiveness to identify the best investment opportunities for their asset allocation. On the basis of the performed analysis in this paper regarding the PE/VC fundraising and investment activities, conducted interviews, and Country Attractiveness Index (including the economic activities, depth of capital market, taxation, investor protection and corporate governance, human and social environment and entrepreneurial culture and opportunities), Macedonian small and medium size enterprises are obviously not on the PE/VC investors` map, according to the small amount of their investments up to now.

Link

New investments for SMEs

(EN)

(I)

From a survey done by AT & T (Small Business Technology Poll 2011) showed that in the U.S. are not only large companies to invest in "mobile", but also SMEs. These companies may use applications for several reasons, such as to process payments or conduct marketing

Da una ricerca fatta da AT&T (Small Business Tecnology Poll 2011 ) emerso che negli USA non sono unicamente le grandi imprese ad investire nel settore mobile, ma bens anche le PMI. Queste

campaigns. This research has shown that the use of smartphones tend to increase the efficiency and productivity (due to cuts in the communication time), and also allow employees to work anywhere they are. Among the companies considered in this research as much as 96% said they use mobile technologies in its operations, and 49% use apps with functions of geolocation. Following apps dedicated to social media marketing and document management for 26%. It would therefore be interesting to develop customized apps or related to a specific area of interest. This new frontier is linked to a more useful purpose: marketing 2.0. Companies that use traditional advertising, underestimate the power of Web Marketing and Social Media Marketing; obvious investments and constant updates will be substantial initially but they certainly give good results, it is therefore necessary to consider it as a long-term investment company . What are the crucial points of this Web 2.0 marketing? First of all we have the direct relationship between companies and consumers, "brand perception", we also have the "brand awareness". Last but not least, it should give more importance to the customer, who must take a proactive stance towards the company. According to facts, this trend coming from America has shown its efficiency, is therefore to be evaluated for our European SMEs.

compagnie utilizzano applicazioni dedicate per diversi motivi, dal processare i pagamenti a condurre campagne di marketing. Tale ricerca ha evidenziato che lutilizzo degli smartphone tendenzialmente aumentano lefficienza e la produttivit (dovuto ai tagli nel tempo di comunicazione),ed inoltre permettono ai dipendenti dellimpresa di lavorare a distanza. Delle aziende intervistate inoltre ben il 96% sostiene di utilizzare tecnologie mobile nelle sue operazioni e il 49% utilizza apps con funzioni di geolocalizzazione. Seguono apps dedicate al social media marketing e al document management per il 26%. Sarebbe quindi interessante poter sviluppare Apps personalizzate o legate ad uno specifico settore di interesse. Questa nuova frontiera legata ad uno scopo ancora pi utile: il marketing 2.0. Le imprese che utilizzano sistemi tradizionali di pubblicit ,sottovalutano le potenzialit del Web marketing e del Social Media Marketing; ovvio gli investimenti ed i costanti aggiornamenti saranno inizialmente cospicui ma certamente daranno ottimi risultati, occorre dunque considerarlo come un investimento a lungo termine dellazienda. Quali sono i punti cruciali di questo web marketing? In primis abbiamo il rapporto diretto tra azienda e consumatore, in gergo tecnico brand perception (percezione del brand), abbiamo inoltre il brand awareness, ossia conoscenza del brand. Non ultimo, occorre interegire con il cliente, il quale dovr prendere una posizione attiva nei confronti dellazienda. Dati alla mano, questo trend proveniente dallamerica ha dimostrato la sua efficienza, da valutare dunque per le nostre PMI europee.

Newspapers:
Small Talk: Cameron plan to ease cash flow for SMEs could be a winner
05/11/ 2012, The Independent By David Prosser

Having failed to force Britain's banks to lend more to small and medium-sized enterprises, it appears the Prime Minister now hopes to persuade our largest companies to do their bit instead. Days after data from the Bank of England suggested bank lending to SMEs was continuing to fall, David Cameron met a number of FTSE 100 bosses at a Downing Street summit. He hopes to persuade them to sign up for an initiative that has already been pioneered by a small number of companies, including Vodafone and Rolls-Royce. He believes it could boost the credit supply to SMEs by as much as 20bn. The idea, known as "supply chain credit", is based on the strong credit ratings of very large companies. Mr Cameron wants them to notify suppliers' banks once they've cleared invoices for payment. Suppliers would then immediately be able to ask their banks to lend them 100 per cent of the money they're scheduled to receive.

A soffrire sono sempre le aziende pi piccolo

09/11/2012, il Sole 24Ore By Riccardo Sorrentino

Qualcosa si muove. Molto, molto lentamente. Appare per, se si osserva l'andamento dei tassi in Italia nel medio termine, un miglioramento della situazione. La politica della Banca centrale europea sembra funzionare. davvero cos?

Events:
European SME Forum Market Opportunities through Innovative Material Use
Date 14-Nov-2012 Where Stuttgart, Germany

Resource efficiency is a leitmotif of public policy in Baden-Wrttemberg, Germany. Being the engine of innovation and growth in the heart of Europe, Baden-Wrttemberg fosters and encourages resource efficiency particularly among small and medium-sized companies (SME). Resource efficiency is also a leitmotif of the European Union as part of the European 2020 strategy. The flagship initiative for a resource-efficient Europe is supporting policy agendas for climate change, energy, transport, industry, raw materials, agriculture, fisheries, biodiversity and regional development. The SME Forum for "market opportunities through innovative material use" which is patroned by Deputy Minister-President and Minister of Finance and Economics of Baden-Wrttemberg Dr. Nils Schmid offers a platform for European SMEs to discover new business partners, state-

of-the-art research and best-practice business cases in resource efficiency from Europe and Baden-Wrttemberg. Besides operative practices, the forum will present opportunities for funding and consulting for your company.
More information:
French Tracey +497111234015 French@steinbeis-europa.de

SME Internationalisation Why Japan? Business opportunities for EU SMEs

Date: 27-nov-2012 Where: Brussels

Enterprise Europe Network Japan (EU-Japan Centre) is organising a training workshop on Japan business opportunities to be held on the 27/11 the day before the EEN Steering & Advisory Group meeting. The workshop is mainly targeted to EEN partners and EU organisations providing support to SMEs but participation from EU SMEs representatives is also welcome. A year ago, in its Small Business, Big World strategy the European Commission emphasised that competitiveness and growth will help overcome the current economic crisis, that non-EU markets represent significant opportunities for EU companies and that internationalisation is the step SMEs need to take and to seize these opportunities. The Commission also recognised the need to provide greater information about support services that can be used by SMEs to help them internationalise. This seminar will provide the necessary information to help SMEs develop activities in or with Japan: -information on support schemes available in Japan and in the EU; -details of issues that SMEs may face when dealing with Japan, and how to avoid them; - the example of a Slovenian SME that has seen considerable success. Details of the agenda and registration form avaiable at: Link EEN partners should put their EACI Project officer in copy of their application for participation in this event. The activity is generally assumed to be eligible but it is strongly advised for the Network partners who have not explicitly mentioned Japan as their main target countries in their work programmes to contact their EACI Project officers first
For more information:
Perna Alessandro +32 2 2820042 a.perna@eu-japan.eu

The List of Sources in this Issue

University of Lausanne: Founded in 1537, the University of Lausanne is composed of seven faculties where
approximately 12,400 students and 2,300 researchers work and study. Emphasis is placed on an interdisciplinary approach, with close cooperation between students, professors and teaching staff.

The University of Zurich (UZH) with its 26,000 enrolled students is Switzerland's largest university. Founded
in the year 1833, UZH was Europe's first university to be established by a democratic political system; today, UZH is one of the foremost universities in the German-speaking world. Made up of seven faculties covering some 100 different subject areas, the University offers a wide variety of Bachelor's, Master's and PhD programs. In addition, UZH's continuing education programs offer excellent learning opportunities. As a member of the "League of European Research Universities" (LERU), the University of Zurich belongs to Europe's most prestigious research institutions.

The University of London was founded by Royal Charter on 28 November 1836 and is the third oldest
university in England. The two founding Colleges of the University, UCL (founded 1826) and Kings College London (founded 1829).

The Hellenic Confederation of Professionals, Craftsmen and Merchants (GSEVEE): is a tertiary nationwide
employers' organisation and one of the key social partners co-signing the National General Collective Labour Agreement (GSEE, GSEVEE, ESEE, SEV).

Asian Development Bank Institute :It was established in 1997 to identify efective development strategies
and to improve development management in ADBs developing member countries. ADBI is fast becoming the leading center for the creation and dissemination of information and knowledge on development in the Asia and Paciic region. ADBI cultivates an extensive network of experts, researchers, think tanks, government agencies, civil society, private sector organizations, and bilateral and multilateral organizations, within the Asia and Paciic region and beyond. Under the ADB overarching goal of poverty reduction, ADBIs three strategic priority themes are: inclusive and sustainable growth, regional cooperation and integration and governance for policies and institutions.

The present edition of the Newsletter for the Academy Avignon was edited by Maura Albanesi
If you have any question or comment, please, dont hesitate to contact us at: Academy Avignon for Craft and SMEs in Europe Rue Jacques de Lalaing, 4 B-1040 Bruxelles Phone: +3222850709 E-mail: b.palmieri@ueapme.com o maura.albanesi@gmail.com

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