WUSME AGENDA 2016 – 2021: THE STAIRCASE TO

SUCCESS

The New Approach to Sustainable Economic and Social Development

of SMEs and Crafts in a Globalized World

By Norbert W. Knoll von Dornhoff, General Secretary

The Approach

The WUSME Workshop on Innovative SMEs Financing held in the framework of the 4th

General Assembly on 16th and 17th April in San Marino recommended the following

(here summarized) General Approach for the WUSME AGENDA 2021:

“The Delegates agreed that a “Holistic Approach” will be needed to enable Smaller

Companies to fully reap the benefits of a more diversified financial offer. Since National

Institutions are decisively responsible for business success and competitiveness of

SMEs, a new architecture for SMEs financing calls for reforms of existing institutions

and where no such institutions are existing for new Institutions that assist SMEs and

Crafts to develop awareness and better understanding about alternative instruments.”

WUSME shall also in cooperation with its National Representatives and Goodwill

Ambassadors offer assistance to Government Agencies, Chambers of Commerce and

Financial Institutions for the developing a long-term strategic approach to reforms of

institutions that constrain doing business and financing, that is, understanding how

different instruments can serve their different financing needs at specific stages of the

economy and of the life cycle to leverage for SMEs and Crafts the more diversified

financial instruments. Recognizing the vital role of women entrepreneurs, delegates

took the need to work in the reinforcement of the skills of women in the various fields of

business training and financing of SMEs.

Better Access to Finance

Though all delegations emphasized the importance of better access to finance for

SMEs, they all the same expressed their doubts that standing alone even a wider range

of financial instruments would be not enough to achieve in the long run economic

growth and sufficient employment. Delegates, therefore, encouraged WUSME to design

for its AGENDA 2016-2021 a “Staircase to Success”, starting with reforms of National

Institutions and the reduction of constraints for doing business up to igniting innovations

and taking advantage of additional and new business opportunities.

Reforms of National Institutions and Removing of Development Obstacles

Since more than 10 years Governments and entrepreneurs can find out and compare in

which Countries it is easy to do business and where it is rather difficult. Over the 13

years since its inception, the Doing Business report has become one of the world’s most

influential policy publications. It is an annual report on the state of health of economies

based on detailed diagnostics not of the relatively more visible features (such as

growth) and various macroeconomic parameters (such as the public debt) but of

underlying and embedded characteristics—such as the regulatory system, the efficacy

of the bureaucracy and the nature of business governance. Other sources of

information are e.g. the annual GEM Global Entrepreneurship Monitor and the annual

WEF -Global Competitiveness Report: Interviews with thousands of business owners

reveal which constraints for SMEs are prevailing.

The following National Institutions that are decisively responsible for doing business

need to be monitored and reformed with utmost speed are:

1. Starting a Business, 2. Dealing with Construction Permits, 3. Getting Electricity,

4. Registering Property, 5. Getting Credit, 6. Protecting Minority Investors, 7.

Paying Taxes, 8. Enforcing Contracts, 9. Trading across Boarder, 10. Resolving

Insolvency.

The Enterprise Surveys (what businesses experience) of the World Bank Group

investigate on a regular basis, which top business environment obstacles SMEs are

facing- These are:

1. Electricity, 2. Access to Finance, 3. Political Instability, 4. Practices of the

Informal Sector, 5. Corruption, Crime and disorder, 6. Tax Administration and

Tax Rates, 7. Access to Land, 8. Custom and Trade Regulations.

WUSME’s Ambassadors and Representatives will in future carefully monitor the

development of National Institutions and recommend measures to reduce constraints

for SMEs doing business.

SMEs Development by Education and Training

The purpose of the Permanent Commission for SMEs Development is to support the

WUSME1s mission by establishing a framework to develop and deliver strategic

resources for SMEs and CRAFTS. This will be accomplished by providing and/or

fostering: Entrepreneurial development, Business growth and corporate governance,

Knowledge transfer to include best practices Innovation through training,

Competitiveness, Providing the methodologies and tools to maximize growth and

prosperity.

New Business Opportunities and Promotion of International Trading, - and

Industrial Partnerships

Humanity will change more in the next 20 years than it has in the previous 300 years.

Exponential technologies such as artificial intelligence, combined with advanced

robotics, virtual reality, synthetic biology and quantum computing keep accelerating the

speed of societal transformation. New emerging markets for SMEs and Crafts are

“Green Technologies” (e.g. Cleaning techniques, waste to energy, organic fertilizers,

protection of the environment.) Examples for new Business Opportunities are, to

mention some: AUTOMOTIVE Auto Repair & Maintenance Services, BUSINESS

SERVICES Advertising/Marketing Services, CHILDREN'S BUSINESSES Personalized

Children's Products, FOOD Delivery Services, HEALTHCARE SERVICES, GIFTS &

NOVELTIES, HOME IMPROVEMENT Home Staging, MAINTENANCE Blinds Cleaning,

and PERSONAL CARE Fitness Businesses.

The Transatlantic Trade and Investment Partnership (TTIP) will create new

opportunities in both the United States and the EU. These opportunities will be

especially valuable for SMEs, given that trade barriers tend to disproportionately burden

smaller firms, which have fewer resources to overcome them than larger firms. US and

EU negotiators are working to ensure that SMEs are in a position to take full advantage

of the opportunities that an agreement would provide.

Outlook

We are optimistic. Governments are making SMEs a priority, and technology is

providing effective new tools that are bringing down the costs of reaching small

customers. WUSME’s AGENDA 2016 to 2021 shall be a “Staircase to Success” to lay

the foundation for an environment where SMEs and Crafts can grow to their full

potential for creating jobs, particularly for women and younger people in less developed

economies, reducing poverty, protect the environment and improving living standards.