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E-Business Development Services for SMEs in GMS Countries   ICT Applications Section Information, Communication and Space ...
Background     Year    Total No. SME Distribution (%)  Cambodia 2001   40,000 98.8 (industry sector) Lao PDR  1999   22,13...
Background  <ul><li>Increasing trend – globalization: businesses target global market; more competitive </li></ul><ul><li>...
Unable to provide e-business development services to SMEs Lack of knowledge on e-business No hardware /software infrastruc...
Identification of objectives Improved competitiveness of SMEs in global market <ul><li>Enhanced knowledge on e-business </...
UNESCAP project on e-business development <ul><li>Project goal </li></ul><ul><ul><li>To enhance the support of enterprise ...
<ul><li>Phase I </li></ul><ul><ul><li>Assessment and situation analysis (desk study and needs assessment survey) </li></ul...
Desk study Needs Assessment Survey E-business development service needs and strategic directions are identified for the re...
Enterprise support agencies are convinced of the need  and potential of e-business development services  and support the p...
Desk Study: e-Business development services for SMEs Business development services (BDS):  services used by entrepreneurs ...
Desk Study ICT Penetration in GMS Countries
Desk Study : ICT use in business <ul><li>Thailand (2003) </li></ul><ul><li>11% of all businesses have PCs. </li></ul><ul><...
<ul><li>ENVIRONMENT </li></ul><ul><li>Lack of regulatory framework </li></ul><ul><li>Security issues </li></ul><ul><li>INF...
Needs Assessment: Enterprise Support Agencies and e-Business services To analyze the level of ICT usage and adoption among...
Needs Assessment: Use of ICT Tools among SMEs
Needs Assessment: Suggested ICT use in supporting SMEs
Needs Assessment: Importance of e-Business services
Needs Assessment: Importance of types of information
Needs Assessment: Biggest Obstacles in Supporting SMEs with ICTs <ul><li>Lack of awareness </li></ul><ul><li>Lack of Human...
To provide the core foundation skills for ESAs to provide training services to SMEs in the respective countries. E-busines...
<ul><li>e-Business Pilot Projects   </li></ul><ul><li>upgrade technical capacity for development and promotion of e-busine...
Pilot project in Cambodia
Pilot project in Lao PDR
Pilot project in Viet Nam
Pilot project in Yunnan Prov. China
<ul><li>Evaluation of e-Business Pilot Projects   </li></ul><ul><li>To evaluate the impact of the project on the effective...
Interim Evaluation Results   <ul><li>Project is relevant  </li></ul><ul><li>Project has been efficient and effective  </li...
Policy Recommendations   <ul><li>Specific programmes to promote e-business services  </li></ul><ul><li>Integrate trade and...
<ul><li>Please visit us: </li></ul><ul><li>http://www.unescap.org/icstd/ </li></ul><ul><li>Thank you </li></ul><ul><li>[em...
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E-Business Development Services for SMEs in GMS Countries

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Transcript of "E-Business Development Services for SMEs in GMS Countries"

  1. 1. E-Business Development Services for SMEs in GMS Countries ICT Applications Section Information, Communication and Space Technology Division United Nations Economic and Social Commission for Asia and the Pacific (ESCAP)
  2. 2. Background Year Total No. SME Distribution (%) Cambodia 2001 40,000 98.8 (industry sector) Lao PDR 1999 22,131 99.4 Myanmar 1999 55,523 99.2 Thailand 2003 1,995,929 99.5 Viet Nam 2002 62,908 95.1 Yunnan 2001 66,680 99.8 95% SMEs <ul><li>SMEs (small and medium enterprises) are the main drivers of the GMS economy </li></ul>
  3. 3. Background <ul><li>Increasing trend – globalization: businesses target global market; more competitive </li></ul><ul><li>Information and Communication Technologies (ICTs) are increasingly becoming necessary tools for SMEs </li></ul><ul><li>ICTs allow SMEs to enter the global economy and open new opportunities for conducting business </li></ul><ul><li>ICTs are already being used by SMEs in GMS countries </li></ul><ul><li>SMEs and their supporting agencies are often not aware of the opportunities that ICTs have to offer </li></ul>
  4. 4. Unable to provide e-business development services to SMEs Lack of knowledge on e-business No hardware /software infrastructure No demand from SMEs Low level of competitiveness of SMEs in the global market Problem Cause Effect Problem analysis
  5. 5. Identification of objectives Improved competitiveness of SMEs in global market <ul><li>Enhanced knowledge on e-business </li></ul><ul><li>Improved software/ hardware infrastructure </li></ul><ul><li>Increased demand on e-business services from SMEs </li></ul>ESA is able to provide e-business development services to SMEs Ends Means Objective
  6. 6. UNESCAP project on e-business development <ul><li>Project goal </li></ul><ul><ul><li>To enhance the support of enterprise support agencies for e-business initiatives of SMEs </li></ul></ul><ul><li>Project outcome </li></ul><ul><ul><li>Enterprise support agencies improve their support for e-business initiatives and publicize e-business development services </li></ul></ul>SME SME SME SME SME SME SME SME SME SME SME Enterprise Support Agencies
  7. 7. <ul><li>Phase I </li></ul><ul><ul><li>Assessment and situation analysis (desk study and needs assessment survey) </li></ul></ul><ul><ul><li>National strategies for e-business service development for each GMS country (national stakeholders workshop) </li></ul></ul><ul><ul><li>Knowledge sharing subregional workshop </li></ul></ul><ul><li>Phase II </li></ul><ul><ul><li>Training of enterprise support agencies (two trainings) </li></ul></ul><ul><ul><li>One pilot e-business development service, including provision of hardware/software to introduce/enhance the services and roadshow to promote e-business development services, in some participating countries </li></ul></ul>Project Activities
  8. 8. Desk study Needs Assessment Survey E-business development service needs and strategic directions are identified for the region and each country National stakeholder consultations Sub-regional Workshop Enterprise Support Agencies under-stand the needs and potential of e-business development services Good practices are identified Phase I
  9. 9. Enterprise support agencies are convinced of the need and potential of e-business development services and support the project objectives <ul><li>Activities: trainings and pilot project implementations </li></ul><ul><li>Improve e-business and training skills (trainings) </li></ul><ul><li>Improved information infrastructure for SMEs (E-business services at ESAs) </li></ul><ul><li>Awareness raising of benefits of e-business for SMEs (Roadshow/Launching events) </li></ul>PHASE II Phase II
  10. 10. Desk Study: e-Business development services for SMEs Business development services (BDS): services used by entrepreneurs to operate and grow businesses. e-Business development services (eBDS) services related to use of ICTs for business. [ICT-based / Internet-enabled /Web-based services] e-Business: use of computers and networks (ICTs) to do business or improve business processes. Definitions: BDS, eBDS BDS categories www.seepnetwork.org 1 Market access 2 Infrastructure 3 Policy/Advocacy 4 Input Supply 5 Training & Technical Assistance 6 Technology & Product Development 7 Alternative financing Mechanisms
  11. 11. Desk Study ICT Penetration in GMS Countries
  12. 12. Desk Study : ICT use in business <ul><li>Thailand (2003) </li></ul><ul><li>11% of all businesses have PCs. </li></ul><ul><li>1.2% have websites. </li></ul><ul><li>Asia Foundation SME 2001 survey: </li></ul><ul><li>> Half with websites [tourism] > 40% had online ordering systems </li></ul><ul><li>> 13% were members of e-portals </li></ul><ul><li>Viet Nam (2003) </li></ul><ul><li><10% enterprises, networked IT users. </li></ul><ul><li>Yunnan (2001, 2004) </li></ul><ul><li>8.5% businesses used e-commerce. </li></ul><ul><li>Yunnan, 1.1% of Chinese websites </li></ul><ul><li>Small survey of ICT use among SMEs in Cambodia and Viet Nam (Sinha 2004) </li></ul><ul><li>Common: word proc, e-mail, research </li></ul><ul><li>Sometimes: website , e-marketplaces </li></ul><ul><li>Myanmar (2002) </li></ul><ul><li>Computerized systems in industries: </li></ul><ul><li>finance, insurance 90% </li></ul><ul><li> service 50% </li></ul><ul><li> wholesale, retail 33% </li></ul><ul><li> manufacturing 20% </li></ul><ul><li>Very low IT demand from SMEs </li></ul><ul><li>Lao PDR (2003) </li></ul><ul><li>Local private companies, 1/5 of Internet subscribers </li></ul>
  13. 13. <ul><li>ENVIRONMENT </li></ul><ul><li>Lack of regulatory framework </li></ul><ul><li>Security issues </li></ul><ul><li>INFRASTRUCTURE </li></ul><ul><li>Limited telecommunication lines </li></ul><ul><li>High costs, slow connections </li></ul><ul><li>CULTURE </li></ul><ul><li>Use of credit </li></ul><ul><li>Language and netiquette skills </li></ul><ul><li>Shopping habits </li></ul><ul><li>Trust/security </li></ul>External barriers <ul><li>MANAGEMENT and SKILLS </li></ul><ul><li>Other management priorities </li></ul><ul><li>Lack of skills on ICT use </li></ul>Internal barriers Desk Study: Constraints for ICT use in SMEs Cambodia Draft Sub-decree on Electronic Transactions Lao PDR none China Draft electronic signature act Myanmar Electronic Transactions Law 2004 Thailand Electronic Transactions Act 2001 Viet Nam Draft e-commerce law
  14. 14. Needs Assessment: Enterprise Support Agencies and e-Business services To analyze the level of ICT usage and adoption among ESAs in the GMS countries
  15. 15. Needs Assessment: Use of ICT Tools among SMEs
  16. 16. Needs Assessment: Suggested ICT use in supporting SMEs
  17. 17. Needs Assessment: Importance of e-Business services
  18. 18. Needs Assessment: Importance of types of information
  19. 19. Needs Assessment: Biggest Obstacles in Supporting SMEs with ICTs <ul><li>Lack of awareness </li></ul><ul><li>Lack of Human Capacity </li></ul><ul><li>Inadequate Legal Framework </li></ul><ul><li>Lack of Hardware and Software </li></ul><ul><li>Lack of Basic Telecommunication Infrastructure </li></ul>
  20. 20. To provide the core foundation skills for ESAs to provide training services to SMEs in the respective countries. E-business Training Modules www.unescap.org/icstd/applications/projects/e-business-GMS/tw2/modules.asp <ul><li>Handicraft </li></ul><ul><li>Travel/Tourism </li></ul><ul><li>What is e-business? </li></ul><ul><li>Why e-business for SMEs? </li></ul><ul><li>Buying and selling </li></ul><ul><li>E-payment </li></ul><ul><li>Offline infrastructure: Logistics </li></ul><ul><li>E-marketing </li></ul><ul><li>Policy and regulations </li></ul><ul><li>Dos and don’ts </li></ul><ul><li>E-business development plan </li></ul><ul><li>What it takes to operationalize e-business </li></ul>Sector Specific Approaches E-business fundamentals
  21. 21. <ul><li>e-Business Pilot Projects </li></ul><ul><li>upgrade technical capacity for development and promotion of e-business services for SMEs </li></ul><ul><li>Participating countries: Cambodia, Lao PDR, Viet Nam, Yunnan Province of China </li></ul>
  22. 22. Pilot project in Cambodia
  23. 23. Pilot project in Lao PDR
  24. 24. Pilot project in Viet Nam
  25. 25. Pilot project in Yunnan Prov. China
  26. 26. <ul><li>Evaluation of e-Business Pilot Projects </li></ul><ul><li>To evaluate the impact of the project on the effectiveness of e-business development services provided by the ESAs, and in particular on their impact on the SMEs’ use of ICT </li></ul><ul><li>End of the project: 31 October 2006 </li></ul>
  27. 27. Interim Evaluation Results <ul><li>Project is relevant </li></ul><ul><li>Project has been efficient and effective </li></ul><ul><li>Impacts </li></ul><ul><ul><li>enhanced awareness </li></ul></ul><ul><ul><li>capacity built </li></ul></ul><ul><ul><li>networks of ESAs in promoting e-business </li></ul></ul><ul><li>Sustainability: Government supporting informatization services for SMEs </li></ul>
  28. 28. Policy Recommendations <ul><li>Specific programmes to promote e-business services </li></ul><ul><li>Integrate trade and transport facilitation initiatives with e-business development programmes </li></ul><ul><li>Development of domestic ICT markets to meet the e-business needs of SMEs </li></ul><ul><li>Develop and/or implement ICT policies and regulations related to online transactions </li></ul>
  29. 29. <ul><li>Please visit us: </li></ul><ul><li>http://www.unescap.org/icstd/ </li></ul><ul><li>Thank you </li></ul><ul><li>[email_address] </li></ul><ul><li>[email_address] </li></ul>
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