Wic budapest 2011-pres
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The document discusses the importance of small and medium-sized enterprises (SMEs) for local development and job creation, emphasizing the need for institutional reforms, improved financing, and support for SME growth, particularly in Africa. It highlights the constraints faced by SMEs, such as access to electricity and finance, and proposes the establishment of mutual funds for crisis prevention and development. Additionally, it outlines trends in African economic growth, the potential for emerging markets, and the role of technology in supporting SMEs.
Wic budapest 2011-pres
- 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. MSME Density World per 1000 people Source: IFC World Bank 2010
- 4. MSME DENSITY High income – high density Low income - low density
- 5. MSME Employment Formal MSMEs employ more than one-third of the world’s labor force, but the percentage drops significantly with income level.
- 6. Constraints for MSME Development ELECTICITY AND ACCESS TO FINANCE
- 9. DR CONGO Main constraints for SMEs
- 10. Self Employment rate and GDP
- 11. EASE OF DOING BUSINESS OR SUFFERING ? 120 100 80 60 GDP p.c EASE DB 40 SUFFERING % 20 0
- 12. 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
- 13. THRIVING in AFRICA 180 180 160 160 133 137 140 120 100 GDP p.c. EASE DB 80 THRIVING 60 52 40 25 24 20 8,5 8,9 1 4 2 0 MALAWI BOTSWANA TOGO BURUNDI
- 14. 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.
- 15. FROM TRADING TO INDUSTRIAL PARTNERSHIP TRADE WITH BRICS 64% IMPORTS from CHINA 58% EXPORTS to CHINA
- 16. 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
- 17. IMF – Autumn 2011 forecast GDP growth in percent – 2011 * 2012 – forecast spring 2011
- 18. 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
- 19. Uganda: Best at education
- 20. GDP per capita – annual growth in % - 2006 10 9 8 7 6 percent 5 4 3 2 1 0
- 22. II. Constraints Relation Delay in obtaining water connections (days)and GDP per capita (x 100)
- 24. Bosnia – Herzegovina Main Constraints for SMEs
- 26. III. A new framework for development
- 30. 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.
- 31. MSME - Technology Park, Center of Competence
- 32. Gallup Wellbeing in Africa Relation to SMEs Ease of Doing Business and GNI per Capita (PPP – Purchasing Power Parity) 2010
- 33. SMEs – Ease of Doing Business Word Bank Group – Reform of Institutions
- 34. SMEs – Start-up Reforms
- 35. 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.
- 36. 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.
- 37. FTL – Finance Transaction Levy
- 38. 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.
- 39. Currency Transaction Levy for economic development and crises prevention in African Countries Estimated annual revenue of a 0.005% Currency Transaction Levy in select Commonwealth countries. Country Estimated annual revenue (US$)4 Australia $2,211,000,000 Canada $1,386,000,000 India $231,000,000 New Zealand £627,000,000 Singapore $396,000,000 South 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
- 40. THANK YOU FOR YOUR ATTENTION WUSME WORLD UNION OF SMEs General Secretariat 1026 Budapest, Garas utca 22 Tel: +361- 315 10 59 mailto: [email protected], web: www.wusme.org
- 41. 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
- #4: There are 125 million formal MSMEs in this set ofeconomies, including 89 million in emerging markets.
- #11: Source: Köllinger – Thurik, Erasmus University, Rotterdam 2010
- #28: 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..