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Wic budapest 2011-pres

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SME Regional Development in a Globalized World. Entrepreneurs and Business Circle. Crises prevention and development

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Wic budapest 2011-pres

  1. 1. SMEs LOCAL DEVELOPMENT IN A GLOBALIZED WORLDMORE SMEs = MORE JOBS = BETTER QUALITY OF LIFE WORLD WIDE THE GROWTH EQUATION FOR OUR FUTURE By Prof. Dr. Norbert W. Knoll – Dornhoff General Secretary Dornhoff General Secretary
  2. 2. 1. Reform of Institutions – Ease of Doing SME Biz2. Promotion of equity SME financing3. Mutual SME Funds for Crises Prevention and Development – Tobin Tax and VAT4. Reform of EIB financing
  3. 3. MSMEDensityWorld per1000 peopleSource: IFC WorldBank 2010
  4. 4. MSMEDENSITYHigh income –high densityLow income -low density
  5. 5. MSMEEmploymentFormal MSMEsemploy morethan one-thirdof the world’slabor force, butthe percentagedropssignificantly withincome level.
  6. 6. Constraints forMSMEDevelopment ELECTICITY AND ACCESS TO FINANCE
  7. 7. HUNGARYMain constraintsfor SMEs
  8. 8. DR CONGOMain constraintsfor SMEs
  9. 9. Self Employment rate and GDP
  10. 10. EASE OF DOING BUSINESS OR SUFFERING ?1201008060 GDP p.c EASE DB40 SUFFERING %20 0
  11. 11. Relation GDI per capita – Ease DB - Suffering 180 175 160 140 134 127 122 123 120 100 GDI 79 80 EASE SUFFERING 60 46 40 34 34 21 23 22 19,2 19,3 20 14 10,9 11 10,3 8 7,6 2 3,6 1,2 0,32 0 BRAZIL INDIA DR CONGO UGANDA SOUTH CHINA RUSSIAN HUNGARY AFRICA FED
  12. 12. THRIVING in AFRICA 180180 160160 133 137140120100 GDP p.c. EASE DB80 THRIVING60 5240 25 2420 8,5 8,9 1 4 2 0 MALAWI BOTSWANA TOGO BURUNDI
  13. 13. Source: How big isAfrica Really ?. By ErikaAmoako-AgyeiAfrica is 30,3 million km² andthus is larger than thecombination of:China (9,6 million km²),the US (9,4 million km²),Western Europe (4,9 millionkm²),India (3,2 million km²)and Argentina (2,8 millionkm²)plus the Scandinaviancountries and the BritishIsles with room to spare.
  14. 14. FROMTRADING TOINDUSTRIALPARTNERSHIPTRADE WITHBRICS64% IMPORTSfrom CHINA58% EXPORTS toCHINA
  15. 15. I. Essential Markets Trends for Africa 2011 and beyond Africa is, and will continue to be, one of the fastest-growing economic regions in the world, thanks to surging demand both from abroad (from China and India in particular) and at home (fuelled by urbanization and consumerism. Telecoms, banking, retailing, manufacturing and even agriculture will be the the region’s fastest growing sectors: Africa’s consumer market will account for the region’s largest growth. Energy from renewable sources, sun, water,wind, biomass, waste Low cost housing Rapidly expanding, Africa’s youthful workforce, will be a key advantage. Smart phones will be the fastest-growing category of handsets, even in the poorer areas, where they often serve as a substitute for PCs. . commerce will flourish in 2011. Africa is well positioned to profit from natural resources as global demand for commodities continues to rise. Companies that succeed in these neglected emerging markets are not only putting down roots in the world’s most fertile soil. They are giving themselves a chance to establish business habits for years to come. Erika Amoako-Agyei, Jounalist and Africa Expert
  16. 16. IMF – Autumn 2011 forecast GDP growth in percent – 2011 * 2012 – forecast spring 2011
  17. 17. 7 000 Inward FDI stock 1985 -2007 Tanzania 6 000 5 000 4 000 Ethiopiamillion USD Uganda Congo, Democratic Republic of Uganda Kenya 3 000 Ethiopia United Republic of Tanzania 2 000 Kenya 1 000 Congo -DR - 19851986198719881989199019911992199319941995199619971998199920002001200220032004200520062007
  18. 18. Uganda: Best at education
  19. 19. GDP per capita – annual growth in % - 2006 10 9 8 7 6percent 5 4 3 2 1 0
  20. 20. II. ConstraintsRelation Delay in obtaining water connections (days)and GDP per capita (x 100)
  21. 21. Main constraints: Electricity
  22. 22. Bosnia – Herzegovina Main Constraints for SMEs
  23. 23. Constraints: The Banks
  24. 24. III. A new framework for development
  25. 25. Millennium Villages
  26. 26. Millennium Regions
  27. 27. The proposed WMRin Sub Saharan Countries shall be aterritories which the Governments and thelocal Authorities declare as an area ofinfrastructural development to be set up inpleasant sites served by internationaltransport and communicationinfrastructure; nearby Research/Trainingcenters and Universities.
  28. 28. MSME - Technology Park, Center of Competence
  29. 29. Gallup Wellbeing in AfricaRelation to SMEs Ease of Doing Business and GNI perCapita (PPP – Purchasing Power Parity) 2010
  30. 30. SMEs – Ease of Doing BusinessWord Bank Group – Reform of Institutions
  31. 31. SMEs – Start-up Reforms
  32. 32. EIB European Investment BankThe EIB has not so far produced any evidence thatits loans have actually benefited local populationsand not corrupted leaders andbusinessmen even in more stable politicalcircumstances. The EIB has invested inNorth Africa since 1979 but civilsociety activists say the lender concentrated toomuch of its investments on the energy sector.Between 2006 and 2010, the energy sectoraccounted for about 93 percent of the 1.85 billionEuros lent by the EIB to Egypt and 46 percentof lending to Tunisia.
  33. 33. Promotion of SME equity financingThis can be achieved by retaininggreater reserves within the firm, and byseeking sources of external privateequity rather than debt finance.
  34. 34. FTL – Finance Transaction Levy
  35. 35. Micro-financing for SMEs, said Gian Franco Terenzi, President WUSME, particularly in agro-industry will have priority fo SME Mutual Fund for Crises Prevention and Development Micro-financing for SMEs, said Gian Franco Terenzi, President WUSME, particularly in agro-industry will have priority for WUSMEs Action Plan. This can be achieved by creating national “Mutual SME - Funds for Crises Prevention and Development”, financed with the CTL Currency Transaction Levy and a small percentage of the VAT that SMEs collect free of charge for the Finance Ministers.
  36. 36. CurrencyTransaction Levyfor economicdevelopment andcrises prevention inAfrican CountriesEstimated annualrevenue of a 0.005%Currency TransactionLevy in selectCommonwealthcountries.Country Estimatedannual revenue (US$)4Australia $2,211,000,000Canada $1,386,000,000India $231,000,000New Zealand £627,000,000Singapore $396,000,000South Africa MALI$297,000,000 International demand for products such as cotton has dropped, meaning many farmers can no longer afford such essentials as school fees for their children. ©Helen Palmer/Oxfam
  37. 37. THANK YOU FOR YOURATTENTION WUSME WORLD UNION OF SMEs General Secretariat1026 Budapest, Garas utca 22 Tel: +361- 315 10 59 mailto: wus@europe.com, web:www.wusme.org
  38. 38. WUSME’sMISSIONa) Facilitatetechnology transferfrom WUSMEmember countries tothe organisations andenterprises in Africa.b) Enterprise toenterprisecooperation.c) Training to AfricanEntrepreneurs forsetting up SMEs.d) Undertake missionwith a view to providepolicy andinstitutional reforms

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