APEC business leaders urge Ministers to boost access to resources
ABAC made the call to coincide with the meeting of Small and Medium Enterprises Ministers in Gifu, Japan earlier this month which tackled this issue, and also agreed to focus efforts to improve access of SMEs to global markets and increase their participation in high-growth sectors.
At its own meeting in Bangkok in late August, ABAC agreed that APEC should help to accelerate growth of SMMEs in the global economy, through policies to promote capacity building and financial inclusion. SMMEs make up 90% of all businesses and employ 60% of the workforce in the APEC region, yet their unique needs are often overlooked in stimulus packages, infrastructure and economic development plans.
SMME access to financing has been a perennial challenge. ABAC believes that this can be effectively addressed through development of new and enhanced platforms for financial inclusion. It has therefore encouraged APEC Finance Ministers to launch an initiative to improve credit information systems and legal frameworks for secured lending.
On the issue of information communications technologies (ICT), SMME access to reliable and affordable broadband is vital to increase their efficiency and, more importantly, connect them to markets, said
Fauziah Talib, Chair of the ABAC Capacity Building Working Group.
A recent ABAC survey on ICT utilization identified high prices and the lack of training in broadband adoption as the top two barriers to trade for SMMEs. The survey recommended that policymakers focus efforts on education measures to increase awareness among SMMEs of the benefits of broadband use. It also stressed the need for measures to lower ICT costs by increasing competitive pressures on broadband providers and providing cost incentives for SMMEs.
Another ABAC study on innovative growth models revealed the need for policymakers to focus on skills training and human resources development for SMMEs. This could be supported through SMME market knowledge centres, which can help to augment market research and the market access capabilities of SMMEs. It can also be supported through SMME training facilities and an education framework that equips aspiring entrepreneurs with the tools to establish and grow a business.
ABAC, which is composed of business leaders from the Asia-Pacific region, was created by APEC Leaders to provide them with information on issues of importance to the business sector. Its members are appointed by the Leaders of each APEC member economy. Gempachiro Aihara of Japan is the current ABAC chair.