PROMOTING ACCESS TO MARKETS

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PROMOTING ACCESS TO MARKETS FOR SMES ZUKILE
NOMAFU CHIEF OPERATIONS OFFICER
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Economic effects of globalisation

• Offers both opportunities and challenges for
  businesses SMEs seek participation in
  international markets for survival, job creation
  and growth
• Pros
• - Increased national income through comparative
  advantage
• - access to global capital
• - spread of technology
• - opportunities for individuals and
• - spread of human rights.

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Economic effects of globalisation cont.

• Cons
• - weakens the position of those lacking skill
  or capital
• - economic openness can not be managed by poor
  weak states
• - leads to exploitation of workers in poorer
  countries
• - loss of cultural integrity
• - national economic autonomy is undermined or
  destroyed by open capital
• markets and flexible exchange rates and
• - weaker countries must accept the rules of the
  game set by the rich.
• SMEs contribute approximately 50 of local GDPs
  and 30 of exports
• Opportunities for international business trade
  has grown significantly as traditional barriers
  associated with distance etc have been reduced
  due to new technology and trade agreements

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Challenges faced by SMEs

• Identifying international business opportunities,
  locating and analysing suitable markets
• Contacting potential overseas customers
• Obtaining reliable foreign representation
• Accessing finance for internationalisation
• Allocating managerial time to deal with
  internationalisation
• Engaging specialist staff to assist with
  management of international markets
• Meeting the costs of accessing markets
• Dealing with anti-competitive behaviour and
• Difficulties in accessing or identifying support
  from Government.

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Percentage of SMEs with foreign Supplier or export
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Barriers ranked by SMEs
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Proposed Govt support for SMEs

• Better support and facilitation for SMEs e.g
• - informed and up to date advise on market
  opportunities
• - addressing the skills gap (people to advise
  SMEs on accessing markets
• - specific targeted support for SMEs e.g
  marketing plans, access to experts, IP
  protection, creation of cross boarder
  partnerships)
• Support target for SMEs already operating abroad
  
• Development of better and statistical information
  both on international markets and on the
  population of SMEs that regularly access
  international markets and
• Develop targed policies and programmes for SME
  development.

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Govt policies and programmes

• Formation of clusters of SMEs for better
  information sharing
• Dissemination of information on initiatives to
  facilitate SME access to international markets
  such as Industry Advisory Committee on OEDC
  initiative
• Encouraging all forms of appropriate co-operation
  and networking amongst SMEs and between SMEs and
  larger firms
• Encouraging development of websites that provide
  opportunities for SMEs at minimal cost
• Involving business and non-government
  organisation in development and delivery of
  policy and programmes
• Providing programmes to assist SMEs access the
  finance needed to access international markets.

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Broad Recommendations

• Conclusion of international trade agreements
  leading to open markets and reduce trade
  barriers
• Promoting clear and accessible public
  consultations mechanisms to facilitate SME
  participation in the trade policy process
• Encouraging regulatory co-operation between
  governments to reduce trade-related compliance
  costs
• Providing a simplified, transparent and
  non-discriminatory domestic business regulatory
  environment and
• Ensuring high quality policy frameworks for
  encouraging private investments are in place.

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THANK YOU