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SME Trade Capability Development

Explore the significance of SMEs in global trade, challenges they face, available assistance, and the ECA's successful capability development work. Learn why SMEs need help, examples of assistance programs, and how tailored training and consulting services can empower businesses to thrive internationally. Discover how investing in skills development can reduce risks and foster sustainable relationships for SMEs.

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SME Trade Capability Development

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  1. SME Trade Capability Development The ECA: A case study

  2. Agenda • Why does this matter • SMEs are too important to ignore • SMEs need help • Examples of available assistance • Case study: ECA’s capability development work

  3. Why does this matter • Can’t we just point business in the right direction? • Shouldn’t it up be up to business and business alone to upskill? • Answer is more nuanced

  4. SMEs are too important to ignore • SMEs account for 95% of all companies around the world & 60-70% of private sector employment • Important to income distribution, equality, women’s empowerment, poverty reduction, etc Formal employment as a % of total employment Source: ITC/WTO

  5. SMEs are too important to ignore Sector breakdown of SMEs and larger companies in ACP countries Source: ITC, 2014

  6. SMEs are too important to ignore Company size by export status in ACP countries Source: ITC/World Bank, 2014

  7. SMEs are too important to ignore Bottlenecks to SME internationalisation in LDCs Source: ITC

  8. SMEs need help • The world over, not just developed or developing countries • SME failure and exit rates are high in the developing world – most trade for just one year • Market entry often driven by opportunism, rather than sustainable relationships • Short trading life precludes ability to establish longer-term relationships, but longer-term relationships are needed to avoid a short trading life • Capacity building can help: fundamentals of sustainable business success can be taught and instilled

  9. Examples of assistance • Advancing Trade Development • TPOs around the world offer capability development services • Ex: IE Singapore GCP program • Up to 70% co-funding for supported capability developing services provided by third-party professional

  10. ECA: A case study in SME capability development ECA’s experience tells us: • Investment in capability development enhances businesses’ skill sets • Skills development and training can reduce risk of failure or significant setbacks in-market • Workshops an excellent vehicle through which to foster critical competences and approaches to solving real-world problems

  11. Case study: ECA’s offerings

  12. Case study: ECA’s offerings

  13. Case study: ECA’s offerings

  14. Case study: ECA’s offerings

  15. Case study: ECA’s offerings

  16. Case study: ECA’s offerings

  17. Case study: ECA’s offerings

  18. Case study: ECA’s offerings Tailored training and consulting services • Aimed at companies, governments and service providers • Work to determining specific upskilling requirements • Post-training mentoring and on-going consultation

  19. Case study: ECA’s offerings

  20. Summing up • SMEs matter, but face numerous challenges to building the capacity needed to successfully and sustainably engage internationally • From developing and developed countries alike • They can’t go it alone and need support • Governmental and non-governmental • The ECA is an interesting case of how capable development can be delivered

  21. Thank you Niels Strazdins Head Research Manager Export House, 2/22 Pitt St, Sydney nielsstrazdins@export.org.au

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