PROMOTING ACCESS TO MARKETS FOR SME’S ZUKILE NOMAFU CHIEF OPERATIONS OFFICER

1. PROMOTING ACCESS TO MARKETS FOR SME’S ZUKILE NOMAFU CHIEF OPERATIONS OFFICER

2. 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.

3. 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;

4. 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.

5. Percentage of SMEs with foreign Supplier or export

6. Barriers ranked by SMEs

7. 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.

8. 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.

9. 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.

10. THANK YOU