Serbias SMEs and Exports

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Serbias SMEs and Exports

• The Serbian SME Conference
• Belgrade
• October 2003

Project Non Financial Assistance to SMEs in
Serbia
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Exports and SMEs

• A presentation in two parts
• 1. The Enterprise and Exports
• 2. The State and Exports

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1. The Enterprise and ExportsWhy export? 1

• Objectives in exporting
• to increase sales and profitability
• to utilise production capacity to the full
• to achieve greater business security by spreading
  risks over a number of markets

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Serbia
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1. The Enterprise and ExportsWhy export? 2

• Reasons for exporting
• lack of growth opportunities in the Serbian
  market
• not enough customers in Serbia for existing
  products

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1. The Enterprise and ExportsThe major steps

• identifying opportunities
• selecting the market
• entering the market

• Identifying opportunities
• Selecting the market
• Entering the market

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1. The Enterprise and ExportsIdentify
opportunities

• Desk/field research in a manageable number of
  markets e.g Balkans
• Information needed size of market, import
  statistics, local economic data, regulations and
  approvals e.g. health, import licenses and
  tariffs, list of agents and importers
• Information sources SIEPA, SME Regional
  Agencies, Chambers, EICC

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Serbia
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1. The Enterprise and ExportsSelecting export
markets

• Concentrate on a few markets
• Choose a market where there is enough
• potential to justify the effort
• Choose a market where product may have some
  competitive advantage price, performance,
  quality
• Make sure the business can be handled

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1. The Enterprise and ExportsEntering the market

• Who will sell the product in the new
• market and how will it be sold or
• distributed?
• Agents/distributors
• Direct selling

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Serbia
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1. The Enterprise and ExportsThe agent

• Identify, short-list, select, make contact,
  negotiate and agree
• Is the agent interested in the product and of
  good reputation?
• Agent needs to believe that product will be
  successful and to have confidence in efficiency
  and reliability of producer
• Producer supports work of agent

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1. The Enterprise and ExportsDirect selling

• Supply the customer directly and manage all
  contacts directly
• Open sales/administrative office in the export
  market
• Selling by Internet

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1. The Enterprise and ExportsExport issues

• Promotion of product
• Pricing
• Transport and transit insurance
• Export credit international trade risks
• Export finance
• Risk management

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Part 2The State and Exports

• International SME Conference
• Belgrade
• October 2003

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Serbia
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2. The State and ExportsSerbia needs more
exports

• Serbia needs a strong export sector to
• reduce a large foreign trade deficit
• absorb existing unused production capacity in a
  small domestic market
• add to national wealth and employment
• improve competitiveness and quality of
  enterprises and products

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2. The State and Exports Barriers to SME exports

• Lack of finance and insurance facilities
• Inadequate information and research on potential
  export markets
• No technical assistance for quality, standards
  and design
• Trade barriers
• Inadequate institutional support for SME export
  development and promotion

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2. The State and ExportsPolicy priorities

• Promotional support for main markets
• Information and advisory services
• Developing export capabilities of competitive
  SMEs
• Export finance and insurance
• Quality assurance scheme
• Donor assistance for trade promotion

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2. The State and ExportsNew services for
exporters

• SIEPAs Export Department is being strengthened
  and a EU funded technical assistance programme
  has commenced
• Main role of SIEPA Export Department Promotion
  of Serbian goods and services in foreign markets
  

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2. The State and ExportsSupport for SME export
capabilities

• USAID Serbian Enterprise Development project
  supports exports by client SMEs
• A network of Regional SME Agencies, provides
  direct advisory, information and training
  services to SMEs
• Capabilities of SME services providers being
  improved through various projects

Project Non Financial Assistance to SMEs in
Serbia