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E-Business Development Services for SMEs in GMS Countries

E-Business Development Services for SMEs in GMS Countries ICT Applications Section Information, Communication and Space Technology Division United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) Background

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E-Business Development Services for SMEs in GMS Countries

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  1. E-Business Development Services for SMEs in GMS Countries ICT Applications Section Information, Communication and Space Technology Division United Nations Economic and Social Commission for Asia and the Pacific (ESCAP)

  2. Background • SMEs (small and medium enterprises) are the main drivers of the GMS economy Year Total No.SME Distribution (%) Cambodia 2001 40,000 98.8 (industry sector) Lao PDR 1999 22,131 99.4 Myanmar 1999 55,523 99.2 Thailand 2003 1,995,929 99.5 Viet Nam 2002 62,908 95.1 Yunnan 2001 66,680 99.8 95% SMEs

  3. Background • Increasing trend – globalization: businesses target global market; more competitive • Information and Communication Technologies (ICTs) are increasingly becoming necessary tools for SMEs • ICTs allow SMEs to enter the global economy and open new opportunities for conducting business • ICTs are already being used by SMEs in GMS countries • SMEs and their supporting agencies are often not aware of the opportunities that ICTs have to offer

  4. Problem analysis Low level of competitiveness of SMEs in the global market Effect Unable to provide e-business development services to SMEs Problem Lack of knowledge on e-business No hardware /software infrastructure Cause No demand from SMEs

  5. Identification of objectives

  6. UNESCAP project on e-business development SME SME SME SME SME SME • Project goal • To enhance the support of enterprise support agencies for e-business initiatives of SMEs • Project outcome • Enterprise support agencies improve their support for e-business initiatives and publicize e-business development services SME SME SME Enterprise Support Agencies SME SME

  7. Project Activities • Phase I • Assessment and situation analysis (desk study and needs assessment survey) • National strategies for e-business service development for each GMS country (national stakeholders workshop) • Knowledge sharing subregional workshop • Phase II • Training of enterprise support agencies (two trainings) • One pilot e-business development service, including provision of hardware/software to introduce/enhance the services and roadshow to promote e-business development services, in some participating countries

  8. Phase I Desk study Needs Assessment Survey National stakeholder consultations E-business development service needs and strategic directions are identified for the region and each country Enterprise Support Agencies under-stand the needs and potential of e-business development services Sub-regional Workshop Good practices are identified

  9. Phase II Enterprise support agencies are convinced of the need and potential of e-business development services and support the project objectives Activities: trainings and pilot project implementations Improve e-business and training skills (trainings) Improved information infrastructure for SMEs (E-business services at ESAs) Awareness raising of benefits of e-business for SMEs (Roadshow/Launching events) PHASE II

  10. BDS categorieswww.seepnetwork.org 1 Market access 2 Infrastructure 3 Policy/Advocacy 4 Input Supply 5 Training & Technical Assistance 6 Technology & Product Development 7 Alternative financing Mechanisms Desk Study: e-Business development services for SMEs Definitions: BDS, eBDS Business development services (BDS): services used by entrepreneurs to operate and grow businesses. e-Business development services (eBDS) services related to use of ICTs for business. [ICT-based / Internet-enabled /Web-based services] e-Business: use of computers and networks (ICTs) to do business or improve business processes.

  11. Desk StudyICT Penetration in GMS Countries

  12. Desk Study:ICT use in business  • Small survey of ICT use among SMEs in Cambodia and Viet Nam (Sinha 2004) • Common: word proc, e-mail, research • Sometimes: website, e-marketplaces • Thailand (2003) • 11% of all businesses have PCs. • 1.2% have websites. • Asia Foundation SME 2001 survey: • > Half with websites [tourism] > 40% had online ordering systems • > 13% were members of e-portals • Lao PDR (2003) • Local private companies, 1/5 of Internet subscribers • Viet Nam (2003) • <10% enterprises, networked IT users. • Myanmar (2002) • Computerized systems in industries: • finance, insurance 90% • service 50% • wholesale, retail 33% • manufacturing 20% • Very low IT demand from SMEs • Yunnan (2001, 2004) • 8.5% businesses used e-commerce. • Yunnan, 1.1% of Chinese websites

  13. Cambodia Draft Sub-decree on Electronic Transactions Lao PDR none China Draft electronic signature act Myanmar Electronic Transactions Law 2004 Thailand Electronic Transactions Act 2001 Viet Nam Draft e-commerce law Desk Study:Constraints for ICT use in SMEs Internal barriers External barriers • MANAGEMENT and SKILLS • Other management priorities • Lack of skills on ICT use • ENVIRONMENT • Lack of regulatory framework • Security issues • CULTURE • Use of credit • Language and netiquette skills • Shopping habits • Trust/security • INFRASTRUCTURE • Limited telecommunication lines • High costs, slow connections

  14. Needs Assessment: Enterprise Support Agencies and e-Business services To analyze the level of ICT usage and adoption among ESAs in the GMS countries

  15. Needs Assessment:Use of ICT Tools among SMEs

  16. Needs Assessment:Suggested ICT use in supporting SMEs

  17. Needs Assessment:Importance of e-Business services

  18. Needs Assessment:Importance of types of information

  19. Needs Assessment:Biggest Obstacles in Supporting SMEs with ICTs • Lack of awareness • Lack of Human Capacity • Inadequate Legal Framework • Lack of Hardware and Software • Lack of Basic Telecommunication Infrastructure

  20. E-business Training Modules To provide the core foundation skills for ESAs to provide training services to SMEs in the respective countries. www.unescap.org/icstd/applications/projects/e-business-GMS/tw2/modules.asp

  21. e-Business Pilot Projects upgrade technical capacity for development and promotion of e-business services for SMEs Participating countries: Cambodia, Lao PDR, Viet Nam, Yunnan Province of China

  22. Pilot project in Cambodia

  23. Pilot project in Lao PDR

  24. Pilot project in Viet Nam

  25. Pilot project in Yunnan Prov. China

  26. Evaluation of e-Business Pilot Projects To evaluate the impact of the project on the effectiveness of e-business development services provided by the ESAs, and in particular on their impact on the SMEs’ use of ICT End of the project: 31 October 2006

  27. Interim Evaluation Results • Project is relevant • Project has been efficient and effective • Impacts • enhanced awareness • capacity built • networks of ESAs in promoting e-business • Sustainability: Government supporting informatization services for SMEs

  28. Policy Recommendations • Specific programmes to promote e-business services • Integrate trade and transport facilitation initiatives with e-business development programmes • Development of domestic ICT markets to meet the e-business needs of SMEs • Develop and/or implement ICT policies and regulations related to online transactions

  29. Please visit us: http://www.unescap.org/icstd/ Thank you oon@un.org freire@un.org

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