Skip to main content

APEC SME Business Forum Executive Summary

I. Executive Summary
APEC SME Business Forum and Exhibition was opened in the afternoon of August 27, 2001. On August 28-29, 2001, plenary sessions were held in he Auditorium of the Shanghai International Convention Center.
The Business Forum this year has received positive responses from business sectors of each member economies, experts, scholars, intermediary organizations and government departments. There were altogether 809 delegates participating in the Business Forum and Exhibition. Among them, 608 delegates participated in the Business Forum, 390 from People's Republic of China, 218 from other APEC member economies.
In addition, this year's Business Forum includes "SME Exhibition" (102 booths and 201 participants from 16 member economies) and "Business Talk" with estimated 150 participants for potential business transactions.
Members of Business Forum Presidium this year include the enterprise representatives from the hosting and other member economies, presiding over all the activities. They are 14 members, from Australia, Brunei Darussalam, People's Republic of China, Malaysia, Mexico and United States of America.
The theme of the Business Forum was "New Century, New Challenges ? Innovation and Development Environment". There were three sub-themes, namely "Advancing Innovation", "Facilitating Financing", and "Developing Service Organizations".
Based on the main theme and the three sub-themes, 8 topics were focused on namely: 1. SME and Innovation; 2. Hi-tech Advances the Development of SMEs; 3. Challenges Faced by SMEs in the New Century; 4. Development Environment of SMEs; 5. Government and Intermediary Organizations; 6. Establishing Service Organizations; 7. Facilitating Financing and 8. Risking Enterprises.
34 speakers had delivered speeches in the Business Forum. The speakers came from 17 member economies namely, Australia; Brunei Darussalam; Canada; Chile; People's Republic of China; Hong Kong, China; Japan; Republic of Korea; Malaysia; Mexico; New Zealand; Republic of Philippines; Russia; Singapore; Chinese Taipei; Thailand; and United States of America. Compared with the previous business forums, this year's Forum has broader representations from member economies and a larger audience.
Key points generated from the presentations and discussions are summarized as following.
  1. Continual innovation serves as the engine of growth for SME; innovation should be integrated into management systems and institutionalized throughout the organization. Not only confined to physical products or break-through technologies, innovation should include business processes, utilities, business models, etc.
  2. Service can be a competitive edge for SME and governmental support in facilitating service industry development for SMEs is crucial; brand-building is important for SMEs for longer-term success.
  3. IT resources are available for SMEs to compete with large firms on equal platforms; governmental encouragement for investing in IT is necessary.
  4. Recruiting, developing and retaining talents is still a challenge to SMEs, initiatives such as specialized training institutes, corporate universities, and retired executive coaching practices shall be supported.
  5. Governmental cooperation and proper policies should be available to facilitate the cross-border transactions, partnerships, technology transfers among SMEs across the APEC region.
  6. Governments, intermediary organizations and SMEs have their individual roles in business. But it is just as important that partnership exists and that they cooperate and foster a conducive environment for sustainable development of SMEs.
  7. Translating this principle into strategies and action plans require leadership roles. This is clearly demonstrated in the case of New Zealand's Chamber of Commerce that plays a pivotal role in assisting governments to define, assess compliance cost-effectiveness of new policies and regulations, Japan's Chambers of Commerce and Industry that provide extensive support programs for SMEs including the provision of clear financial assistance (Maru-kei) to SMEs and entrepreneurship skill development in the form of Management Improvement Program and safety net to manage the impacts of business reform.
  8. Government should only be a facilitator and supporter to help SMEs. We believe that striking a balance between maximum support and minimum intervention is the best way to enable SMEs to operate freely and contribute to the wealth of the economy. SMEs should adopt environment-friendly technologies.
  9. Human resources development is crucial for SMEs. Coordination among governments, universities, private sectors, industry and trade associations, should be emphasized. Promoting synergy in training resources and facilities should be encouraged.
  10. SMEs have experienced difficulties in raising capitals for expansion. The loan requirements are normally insurmountable for many SMEs in terms of fixed assets, credit guarantees, and collectorals. A credit reference system, exampled by Hong Kong China, may serve a good initiative for government to help SMEs over certain challenges in obtaining funds.
  11. Financing or access to loans is critical to most SMEs across APEC region; measures such as government credit guarantee, intangible assets as "mortgage" should be given considerations to facilitate SME financing needs.
II. Recommendations to the 8th APEC SME Ministerial Meeting
Based on the speeches and discussions in the plenary sessions in the Business Forum and upon the consensus of delegates of the member economies, Presidium of the Business Forum intended to recommend the followings to the 8 th APEC SME Ministerial Meeting:
  1. The APEC SME Business Forum 2001 recognizes the need to strengthen the effectiveness of the Business Forum Process together with the facilitation of communication channels and interactions between SMEs, policy makers and Ministers by enhancing and capitalizing on the role of the existing organizations.
Hence, APEC SME Business Forum 2001 moves to seek the Ministers endorsement of a structure that will comprise a rotational 5 Plus member council to include SME BF representatives from the past APEC host economies, the current SME BF chair and the future SME BF chair. It is expected that the BF Council would have representation in the existing APEC SME Working Group.
The functions of the SME BF Council are primarily focused on SME business continuity, convergence of themes, key issues impacting SMEs, together with the assessment and review of recommendations which form an input into the annual joint dialogue with the SME ministers.
  1. APEC SME Business Forum 2001 reached consensus on the importance of a service infrastructure to support the sustainable growth of SMEs and the survival of start-ups. We recommend that the governments of member economies help build "one-stop shopping" services/locations for SMEs to help SMEs grasp pragmatic issues such as business planning, marketing and branding, supply-chain management, cross-border partnerships and technology transfers. This type of service offering should consist of the following:
    • The establishment of virtual and/or non-virtual support systems/locations;
    • Government taking the lead in facilitating financing to assist SMEs in adopting technologies;
    • Coordinating and harnessing synergy among different resources and facilities;
    • Benchmark studies provided to member economies for continuous improvement in service offerings;
    • Human resource development to ensure continual growth of SMEs. Two examples of the form the development process may take are formal and informal educational centers or a retired executive coaching practice.
    • APEC SME Business Forum 2001 realizes the imperative of innovation among SMEs and recommends that we continue to hold an "APEC SME Technological Exchange & Exhibition" in China. We believe this new initiative will enhance the awareness and practical needs for SMEs in sharing and developing new technologies, products and services.
  2. To share "best-practices" across the APEC region and realistically help those member economies in greater need for SME services, APEC SME Business Forum 2001 urges member economy to appoint one authoritative SME service organization to participate in a Service Alliance. China, as this year's APEC host economy, will take the lead in 2002 by setting up a secretariat at the China Center for Business Cooperation and Coordination. The secretariat will coordinate with member economies to set up this process so that it can function on an ongoing basis.