Академический Документы
Профессиональный Документы
Культура Документы
Qimiao Fan
World Bank
Presentation Outline
I. Who are SMEs?
II. Importance of SMEs
III. Characteristics of SMEs and Rationale for
Public Support
IV. The Role of the Public Sector in
Ø Creating a SME-friendly legal and
regulatory environment
Ø Access to finance
Ø Business development services
1
I. Who are SMEs
§ Different countries use different definitions
§ Lack of consistent cross-country data
§ IFC definition
Mi (Micro enterprise)
(a) Employees < 10
(b) Total Assets < US$ 100 000
(c) Total Annual Sales < US$ 100 000
S (Small enterprise)
(a) 10 < Employees < 50
(b) US$100 000 < Total Assets < US$ 3 million
(c) US$ 100 000 < Total Annual Sales < US$ 3 million
M (Medium enterprise)
(a) 50 < Employees < 300
(b) US$ 3 million < Total Assets < US$ 15 million
(c) US$ 3 million < Total Annual Sales < US$ 15 million
2
II. Importance of SMEs
3
SMEs are the Engine of Growth
4
SMEs are the Engine of Growth
Distribution of Firms in the Economy by Employment
Size (1999 or nearest year)
99.8% 99.7% 99.9% 99.3% 98.5%
100.0%
75.0% 0-499
500+
50.0%
25.0%
0.3% 0.4% 0.1% 0.7% 1.5%
0.0%
Czech France Italy United United States
Republic Kingdom
5
SMEs are the Engine of Growth
100.0%
79.7%
75.0% 62.6% 63.5% 66.3%
58.9%
0-499
50.0% 37.5% 36.5% 41.1%
33.6% 500+
20.3%
25.0%
0.0%
Czech France Italy United United
Republic Kingdom States
6
SMEs are the Engine of Growth
• SMEs in Russia
– SMEs (with up to 250 employees) account for about
90% of the total number of firms
– SMEs provide 45% of total employment
– SMEs account for 40% of total sales
• SMEs in China
– SMEs account for 99.9% of the total number of
firms
– SMEs provide 84% of total employment
– SMEs account for 71% of total sales
7
SMEs are Essential for a Competitive and Efficient Market
100.0%
75.0%
50.0% %
25.0%
0.0%
Czech France Italy United United
Republic Kingdom States
10
SMEs Play a Particularly Important Role in Developing
Countries
100%
90%
80%
70%
Large
60%
Percentage of Total Medium
50%
Employment Small
40%
Micro
30%
20%
10%
0%
100-500 500-1000 1000-2000 2000-5000 5000+
13
Market Failures Cause Biases Against SMEs
• Asymmetric
information on SME
borrowers and
imperfect competition • Restricts SMEs’
in credit market access to the
credit market
• Higher cost of R&D
and training for SMEs, • Causes under-
in addition to their investment
inability to appropriate for technology
the full benefits of the transfer and
investment
training
14
Small Size Creates Cost Disadvantages for SMEs
15
SMEs are Limited in Capability Development
18
Role of the Public Sector in Creating an Enabling
Regulatory Environment: Appropriate for SMEs
19
Role of the Public Sector in Creating an Enabling
Regulatory Environment: Strategic Focus and Key Issues
Strategic Focus Key Issues to be Addressed
• OpenAccess to Markets and • Reform policies and amend laws and regulations with bias
Accelerate Market Development against SMEs in competition, commercial transaction,
intellectual and commercial property rights, tax, labor,
government procurement, etc.
• Eliminate certain expensive regulatory requirements
• Add flexibility in the implementation of regulations
• Invest in Public Goods, Build • Build infrastructure
Institutional Capability • Facilitate information access
• Monitor SME performance and policy impact
• Create public/private partnership at local level
• Reduce and Rationalize Traditional • Reconsider policies that grant SMEs special protection
Public Interventions • Seek great neutrality across firm size in tax and labor
legislation and enforcement
20
Role of the Public Sector: Access to Finance
SMEs Bankers
21
SME Access to Finance: A Market-Oriented Strategy
During the past 40 years it has Since 1982, SOFARIS has provided
successfully financed more
than 15,000 SMEs through: guarantees for bank loans to SMEs
• Commitment to and focus on
its defined market – SMEs • The share of SOFARIS guarantees
• Profit consciousness to ensure has covered: 40% for investment in
sustainability in its operations existing firms, and up to 70% for
• Innovative approaches in credit start-ups, or higher if complemented
risk management by contributions from the regions
• Simplification of operations,
while remaining focused on
what it does best
23
Role of Public Sector: Business Development Services
SME
Facilitator SME
Government Facilitator SME
Facilitator
•Enabling environment • Supporting BDS SME
•Providing public goods providers Facilitator
SME
•Funding for BDS • Educating SMEs
projects • Providing SME
incentives
Business · Competition policy · Infrastructure (transport, ports, market · Reconsider policies that reserve certain
Environment · Licensing and registration facilities, communications, information sectors for small-scale enterprises or
requirements, administrative fees technology) grant them special protection
· Commercial transaction law · Information (markets, standards, · Seek greater neutrality across firm sizes
· Intellectual and commercial technologies) in tax and labor legislation and
property rights · Monitoring of SME performance and enforcement
· Tax, labor legislation impact of policies and interventions
· Government procurement · Public/private partnerships at local level
· Flexibility in the implementation of to improve business environment
regulations
Financial · Financial sector competition policy · Innovation in loan products, lending · Reduce direct lending through public
Services · Collateral legislation methodologies, delivery mechanisms, financial institutions
· Prudential regulation and risk assessment methodologies (e.g. · Reduce SME lending (portfolio)
supervision credit scoring) requirements on financial institutions
· Regulations governing leasing, · Credit bureaus, registries · Eliminate subsidized credit lines and
venture capital, equity markets · Training and TA to financial institutions credit guarantee scheme
serving SMEs
Business · Target subsidies for market · Innovation in products (especially for the · Increase cost recovery for publicly-
Development development to specific market smallest firms), delivery mechanisms provided or subsidized services
Services failures · Development of performance and impact · Improve management and cost control in
· Information on service providers, indicators public BDS institutions
impact of services · Training and TA to private BDS · Condition budgetary allocations to the
· Enforce competition in service providers achievement of impact
markets · Limit long-term subsidies for BDS to · Reduce duplication across agencies in
public goods (e.g. information, labor and services provided
management training) · Use the private sector to delivery services
· Privatize service providers when
financially sustainable
25
Role of the Public Sector: Public Programs to Assist
SMEs and Enhance Entrepreneurship
Focus Programs Countries Experience
Access to Financing Loan Guarantee Scheme, SMEs without access to UK, USA, Generally viewed as helpful, but small scale
own collateral obtain access to bank loans by state Canada, France, impact on the overall financing of SMEs in
acting as guarantor Netherlands most countries
Access to Markets Europartenariat, Organization of Trade Fairs to EU General satisfaction amongst firms that
encourage cross-border trade between SMEs participated
Administrative Burdens Units established within government to seek to Netherlands, The view of small firms themselves is that
minimize administrative burdens on smaller firms, Portugal, UK bureaucratic burdens have increased
deregulation Units markedly in recent years
Science Parks Property based developments adjacent to UK, France, Conflicting findings on impact of SPs on
Universities Italy and performance of firms
Sweden
Managed Workspace or Property provision to assist new and very small World-wide General recognition that such initiatives are
business incubators firms. Provide premises for new and small firms on of value
“easy- terms”
Stimulating Innovation Small Business Innovation Research Program, $1 USA Studies imply SBIR enhances small firm
and R&D in small firms billion per year is allocated via competition to small performance, but are unable to show that
firms to stimulate additional R&D activity firm performance leads to additional R&D
Stimulating Training in Japan Small Business Corporation (JSBC) and local Japan Unknown
small firms governments provide training for owners and
managers of small firms
Entrepreneurial Skills Small Business Development Corporations (SBDCs) USA Studies find SBDC clients have higher rates
Counseling is provided by SBDC mentors to small of survival and growth than might be
business clients who may be starting a business or be expected, but reservations over these
already trading findings are found in other studies
Entrepreneurial Entrepreneurship Education, to develop awareness Atlantic Conventional assessments are particularly
Awareness of enterprise and/or entrepreneurial spirit in society Canada, difficult here because of the long “lead
by incorporating enterprise into the school and Australia, times”
college curriculum Netherlands
Special Groups Law 44 provides finance and mentoring advice to Southern Italy Most studies show the survival rates of
young people in Southern Italy, where enterprise assisted firms to be well above those of
creation rates were very low “spontaneous” firms, but this is an
expensive program