1. SMEs LOCAL DEVELOPMENT
IN A GLOBALIZED WORLD
MORE 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. 1. Reform of Institutions – Ease of Doing SME Biz
2. Promotion of equity SME financing
3. Mutual SME Funds for Crises Prevention and
Development – Tobin Tax and VAT
4. Reform of EIB financing
3. Khrystyna Kushnir, Melina Laura Mirmulstein, and Rita
Ramalho
This note provides an overview of new data on MSME (micro,
small, and medium enterprise)
Country Indicators for 132 economies.
There are 125 million formal MSMEs in
this set of economies, including 89
million in emerging markets.
11. Entrepreneurship – on average across
countries - is a leading indicator of the
cycle and Granger-causes increases of
GDP. This suggests that entrepreneurs
have an essential role in explaining
business cycle dynamics. And, more
specifically, it suggests that
entrepreneurs play an important part in
recovering from economic recessions.
12. EASE OF DOING BUSINESS OR SUFFERING ?
120
100
80
60 GDP p.c
EASE DB
40
SUFFERING %
20
0
15. 175
180
160
134
140 127 122 123
120
100 79
GDI
80 EASE
60 46
34 34 SUFFERING
40 21 23 19,2 22 19,3
10,9 11 10,3 8 14
20 2 3,6 7,6
0,32 1,2
0
BRAZIL INDIA DR CONGO UGANDA SOUTH CHINA RUSSIAN FED HUNGARY
AFRICA
16. Source: How big is
Africa Really ?. By Erika
Amoako-Agyei
Africa is 30,3 million km² and
thus is larger than the
combination of:
China (9,6 million km²),
the US (9,4 million km²),
Western Europe (4,9 million
km²),
India (3,2 million km²)
and Argentina (2,8 million
km²)
plus the Scandinavian
countries and the British
Isles with room to spare.
18. 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
19. IMF – Autumn 2011 forecast
GDP growth in percent – 2011 * 2012 – forecast spring
2011
20. 7 000
Inward FDI stock 1985 -2007
Tanzania
6 000
5 000
4 000 Ethiopia
million USD
Uganda
Congo, Democratic Republic of
Uganda Kenya
3 000
Ethiopia
United Republic of Tanzania
2 000 Kenya
1 000
Congo -DR
-
19851986198719881989199019911992199319941995199619971998199920002001200220032004200520062007
32. The proposed WMR
in Sub Saharan Countries shall be a
territories which the Governments and the
local Authorities declare as an area of
infrastructural development to be set up in
pleasant sites served by international
transport and communication
infrastructure; nearby Research/Training
centers and Universities.
37. EIB European Investment Bank
The EIB has not so far produced any evidence that
its loans have actually benefited local populations
and not corrupted leaders and
businessmen even in more stable political
circumstances. The EIB has invested in
North Africa since 1979 but civil
society activists say the lender concentrated too
much of its investments on the energy sector.
Between 2006 and 2010, the energy sector
accounted for about 93 percent of the 1.85 billion
Euros lent by the EIB to Egypt and 46 percent
of lending to Tunisia.
38. Promotion of SME equity financing
This can be achieved by retaining
greater reserves within the firm, and by
seeking sources of external private
equity rather than debt finance.
40. 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 WUSME's 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.
42. THANK YOU
FOR YOUR
ATTENTION
WUSME WORLD UNION
OF SMEs
General Secretariat
1026 Budapest, Garas utca 22
Tel: +361- 315 10 59
mailto: wus@europe.com,
web:
www.wusme.org
43. WUSME’s
MISSION
a) Facilitate
technology transfer
from WUSME
member countries to
the organisations and
enterprises in Africa.
b) Enterprise to
enterprise
cooperation.
c) Training to African
Entrepreneurs for
setting up SMEs.
d) Undertake mission
with a view to provide
policy and
institutional reforms
Editor's Notes
Country Indicators for 132 economies. There are 125 million formal MSMEs in this set ofeconomies, including 89 million in emerging markets.
There are 125 million formal MSMEs in this set ofeconomies, including 89 million in emerging markets.
There are 125 million formal MSMEs in this set ofeconomies, including 89 million in emerging markets.
Source: Köllinger – Thurik, Erasmus University, Rotterdam 2010These observations point to an important function of entrepreneurship particularly in timesof economic recessions: an impulse of entrepreneurial activity is typically followed by economicrecovery and a decrease in unemployment.
8. How much money does it take to fund a Millennium Village?A core aspect of the Millennium Villages is that the poverty-ending investments in agriculture, health, education, and infrastructure can be financed by donors at an average incremental cost of just $50 per villager per year�$250,000 per village per year. The overhead costs of managing the project in each village are also low, $50,000 per year, since the project draws upon skilled local managers who work alongside the UN Millennium Project and the Earth Institute at Columbia University. This modest investment offers the realistic prospect that a community of 5,000 men, women, and children can achieve the Millennium Development Goals and embark on a path of self-sustaining economic development.On a per person basis, the average total village of $110 per person is comprised of:$50 Donor funding through the Millennium Village program $30 Local and national governments (this is most likely to include funding for interventions themselves and the provision of agricultural and health extension workers in the villages) $20 Partner organizations (e.g., existing programs supported by official bilateral donors) and in-kind corporate giving (for example, Sumitomo Chemical Corporation recently agreed to donate insecticide-treated bednets for the Millennium Villages)$10 Village members, typically through in-kind contributions of their time and expertise Critically, the external financing needs of $70 per capita are in line with the financial commitments made by the leaders of industrialized countries at the 2005 G8 Summit in Gleneagles. G8 countries promised to raise their development assistance to Africa to the equivalent of $70 per capita by 2010. Critically, the external financing needs of $70 per capita are in line with the financial commitments made by the leaders of industrialized countries at the 2005 G8 Summit in Gleneagles. G8 countries promised to raise their development assistance to Africa to the equivalent of $70 per capita by 2010..
