SME Internationalization and Measurement (Presentation)

Transcription

1 2015/SOM2/015 Agenda Item: 6.2 SME Internationalization and Measurement (Presentation) Purpose: Information Submitted by: Policy Support Unit, APEC Secretariat Second Senior Officials Meeting Boracay, Philippines May 2015

2 SME Internationalization and Growth The 2nd APEC Senior Officials Meeting, the Philippines Denis Hew, PhD APEC Policy Support Unit Copyright APEC Secretariat Outline 1. SME internationalization activities 2. Measuring SME internationalization 3. Growth of SMEs in the APEC Region 4. Challenges in setting a target for SMEs in the region 5. Conclusions and recommendations 1

3 SME Internationalization Internationalization the process of increasing involvement in international markets. Direct exporting Direct importing SME internationalization activities Investment abroad Being subcontractors to foreign enterprises Having foreign subcontractors Cooperation with foreign enterprises Joint ventures Non equity alliances Licensing Franchising Measuring SME Internationalization Micro level Foreign markets, assets, sales, staff, affiliates, ownership, R&D, control of int l networks Macro level A. number of SMEs exporting directly and value of SMEs direct exports; B. number of SMEs importing directly and value of SMEs direct imports; C. number of SMEs investing abroad and value of SMEs investment abroad; D. number of SMEs being subcontracted by foreign enterprises and value of sales of SMEs being subcontracted by foreign enterprises; E. number of SMEs subcontracting foreign enterprises and value of purchase of SMEs from foreign subcontractors; F. number of SMEs cooperating with foreign enterprises under joint ventures, nonequity alliances, licensing and franchising and value of SMEs revenue from cooperation with foreign enterprises. 2

4 Measuring SME Internationalization Responses to Survey on SME Internationalization Indicators Number of SMEs exporting directly A Value of SMEs' direct exports (USD billion) Number of SMEs importing directly B Value of SMEs' direct imports (USD billion) Number of SMEs investing abroad C Value of SMEs' investment abroad (USD billion) Number of SMEs sub D contracting foreign firms Canada (2011) Japan (2011) Korea () Malaysia () Peru () Philippines (2010) Chinese Taipei () Thailand () United States (2012) 58,100 6,336* 87,800 >6000* 3,082 72,321** 68,639 24, , *** 1.6*** 1.2** *** 0.5*** 144,100 10,702 44, ,358 4,470 37,422* (1) 14, *** 77.1*** 0.6*** 2.4 * The data covered SMEs in manufacturing sector only. ** The data covered SMEs in the following sectors: agricultural, forestry, fishery, manufacturing, wholesale and retail trade. *** The data covered trade in goods only. (1) In, Korea SMEs made 4,265 overseas investments and invested in 1,351 new overseas enterprises Measuring SME Internationalization Survey Approach The European Commission conducts an survey on internationalization of European SMEs. Every 3 years 9480 extended interviews Disproportional stratified sample Census Approach Japan utilizes the results from census to understand SMEs internationalization activities. Every 5 years Economic Census for Business Frame and Economic Census for Business Activity 3

5 Growth of SMEs in APEC Region Number of SMEs over the Years SMEs Share in Total Number of Enterprises APEC economies Years Number of years Trend Percentage change Share at the beginning 5 latest years with data Change over 5 years Australia years 1.2 Canada years Chile 8 years Hong Kong, China years Indonesia 8 years Japan years 0.2 Korea years Malaysia years 17.7 Mexico years New Zealand year 0.7 Peru years Philippines 8 years Russia years 6.2 Singapore years Chinese Taipei 8 years Thailand years United States years Viet Nam years Growth of SMEs in APEC Region Number of SMEs Employees APEC economy Years Percentage change Number of years SMEs Share in Total Employment Share at the beginning 5 latest years with data Change over 5 years Australia years Canada years Chile years Hong Kong, China years Indonesia years Japan years Korea years Malaysia years Mexico years New Zealand year Peru years Philippines years Singapore years Chinese Taipei years Thailand years United States years Viet Nam years

6 Growth of SMEs in APEC Region SMEs Share in Economy APEC economy Measure SMEs' share Year 5 latest years with data Growth in 5 years Australia Industry value added Brunei Darussalam Gross value added Canada GDP Chile GDP Hong Kong, China Value added Indonesia GDP Japan GDP Korea GDP Malaysia GDP Mexico GDP New Zealand GDP Papua New Guinea GDP Peru GDP Philippines Value added Russia GDP Singapore GDP Chinese Taipei GDP Thailand GDP United States GDP Viet Nam GDP Distribution of SMEs by Size SMEs in the APEC region are mostly micro enterprises. Over years, the share of micro enterprises in total SMEs seems to be stable. APEC economy Year Medium Small Micro Australia Brunei Darussalam Canada Chile Indonesia Japan Korea Malaysia Mexico Peru Philippines Russia Singapore Thailand Cold chain Cold chain SMEs United States Viet Nam

7 Challenges in Setting a Target for SMEs in the Region Differences in SME definition > Non comparable SME statistics 1) SMEs are defined by different numbers of employees, different level of sales, assets, and capital; 2) non employing enterprises are treated differently by APEC members; 3) informal sector enterprises are also treated differently by APEC members Macroeconomic background > Number, employment, economic performance of SMEs fluctuate Lack of impact assessment on SME related initiatives > unclear linkage between policies and initiatives and growth of SMEs Conclusions & Recommendations Conclusions: On internationalization, SMEs exhibit dynamism and diversity. It is challenging to measure SME internationalization. Economies could conduct surveys or censuses to measure SME internationalization. There is a growing number of SMEs and people employed by SMEs, but SMEs share in total number of enterprise and economy seems to be declining. Micro enterprises make up the majority of SMEs. Recommendations: Strengthen capacity to collect SME statistics in the APEC region Address challenges in setting a target for SMEs 6

8 APEC Policy Support Unit (PSU) APEC Policy Support Unit (PSU) APEC Secretariat 35 Heng Mui Keng Terrace Singapore Telephone: (65) Fax: (65) Website: Us/Policy Support Unit.aspx 7