- Financing of SMEs which found it difficult to obtain bank loans and therefore had to depend on their own and family resources for financing
- Lack of qualified staff with minimal management experience made administration difficult
- Market for products were adversely affected by the changing economic scenario
- The Hong Kong government in difficult times assisted with reduction in electricity bills, stamp duties and some forms of grants for market development and participation in exhibitions. However, the paperwork involved is time-consuming.
- For the SMEs it was always a continuous learning experience
The second speaker, Mr. Chandula Abeywickrema of Managing Director/CEO of CCC Solutions Pvt. Ltd from Sri Lanka addressed the need for promoting growth of SMEs in the region:
- In relation to finance for SMEs, he suggested capacity building for sustainable enterprise creation in Asia through an inclusive SME strategy and role of business and stake holder chambers
- He spoke of the problem of defining SMEs as to whether they were ‘microsmall’, ‘small-small’, ‘small-medium’, ‘medium-medium’
- In relation to capacity building of SME entrepreneurs, he highlighted the role of business chambers and industry associations, partnership between SMEs and SMPs (Small & Medium Practitioners) and linkages to Supply and Value Chain for sustainable business models
- With regard to financial services solutions for SMEs, he spoke of the problems of the availability, accessibility and affordability of finance.
- He highlighted the important role of business and industry chambers in policy advocacy, lobbying for SME friendly regulatory framework, assistance with commercializing the entrepreneurial ideas of SMEs.
- He further elaborated on the role of regional banks and finance institutions, development bank and commercial banks in the financing of SMEs
- He recommended making SMEs the backbone of economic development by enhancing through capacity building, empowering through commercialization and enriching SMEs through creation access to services, finance and markets
Chairman Mr. George Abraham then addressed the meeting with an overview of SMEs in the Asia Pacific region. Using country examples, he pointed out that 97% of enterprises are SMEs and in every country they account for a significant portion of employment. However, the economic contribution of SMEs varied among the CACCI countries and the SME export value as a share of total export value also varied. However, it also provided opportunities for growth. He then briefed the meeting on ASEAN’s strategic action plan for SME development which clearly defined the mission, objectives, guiding principles, current status, and future policies and programmes for ASEAN SME Development.
Mr. Abraham pointed out that the plan had specific goals with regard to access to finance, market and internationalization strategy, human resource development (HRD), information and advisory services, technology and innovation. He stressed the importance of a plan of action for CACCI countries which included a working relationship between the private and government sectors. He summarized the action plan for CACCI as follows:
- Working with the Private Sector through:
* SME entrepreneurship and human resource development
* SME capacity building (management, marketing, supply chain, network, ICT) - Working with the government Sector through:
* Greater collaboration with government ministries, statutory boards, sectoral bodies and agencies
* Public-private sector engagement for SME development and linkages with the regional and global production network
In order to highlight the importance of private and government sector relationship in SME development, he gave examples of Singapore companies benefiting from programmes initiated by the Government of Singapore through its agency SPRING Singapore. He gave the examples of:
- Spring Startup Enterprise Development Scheme (SPRING SEEDS) – Co-invests in start-ups with third-party investors (Business Angel Scheme, SPRING Startup Enterprise Development Scheme, Sector Specific Accelerator Program)
- Ace Start-Up Grant – Provides funding support to entrepreneurial Singaporeans who want to take their first step in starting up differentiated business. The four key evaluation criteria include: differentiation, business model feasibility, potential market opportunity, and management team.
- Technology Commercialization Scheme (TECS) – Aims to catalyze the formation and growth of such start-ups based on strong technology, intellectual property and a scalable business model. SPRING provides early stage funding to successful applicants to fund such development efforts towards the commercialization of proprietary technology solutions.
The discussion that followed brought out the following points:
- It was felt that there was a need for new companies to promote their goods and services. In this regard, Kowloon Chamber offered free exhibition space and facilities for CACCI members to participate in an exhibition for SMEs.
- There was a need for training programmes for SME Development and Bangladesh requested CACCI to help with a training programme for this purpose.
- The delegates from Tajikistan and Papua New Guinea also requested CACCI’s assistance in a training programme for SME development.
- The meeting accepted the proposed ‘4 CACCI strategic thrusts’ and unanimously agreed to follow up on the Chairman’s proposal and report progress at the next meeting
In his concluding remarks, Mr. Abraham requested CACCI members present to provide relevant information on SMEs and their countries for the CACCI SMEDC newsletter and wherever possible, highlight success stories that could be used as role models.
